The Westphalian system is the concept that every nation or state maintains sovereignty over its own territories, as well as its domestic policy. This system was slowly eroded in the 1990's as globalization spread. However, neo-Westphalianism has emerged in the form of a strong reassertion of the state as the dominant power in economic markets. This key difference - the role of the state in economies - is a major differentiator between the two schools of thought.
