The Crisis of Bigness

Paul Kingsnorth makes the case that today's economic collapse follows the beliefs of Leopold Kohr (via nc links):

Kohr's claim was that society's problems were not caused by particular forms of social or economic organisation, but by their size. Socialism, anarchism, capitalism, democracy, monarchy – all could work well on what he called "the human scale": a scale at which people could play a part in the systems that governed their lives. But once scaled up to the level of modern states, all systems became oppressors. Changing the system, or the ideology that it claimed inspiration from, would not prevent that oppression – as any number of revolutions have shown – because "the problem is not the thing that is big, but bigness itself".
Drawing from history, Kohr demonstrated that when people have too much power, under any system or none, they abuse it. The task, therefore, was to limit the amount of power that any individual, organisation or government could get its hands on. The solution to the world's problems was not more unity but more division. The world should be broken up into small states, roughly equivalent in size and power, which would be able to limit the growth and thus domination of any one unit. Small states and small economies were more flexible, more able to weather economic storms, less capable of waging serious wars, and more accountable to their people. Not only that, but they were more creative. On a whistlestop tour of medieval and early modern Europe, The Breakdown of Nations does a brilliant job of persuading the reader that many of the glories of western culture, from cathedrals to great art to scientific innovations, were the product of small states.

To me this sounds like allowing lots of small, contained problems as opposed to risking the chance of one or two giant, uncontrollable problems.  There are pluses and minuses to each side, but I would anticipate a lot of hating on minorities in smaller states, with the relocations that would encompass.  In eastern Europe and Russia, we've seen this actually take place.  While some things have gotten bigger, others have fragmented, and I anticipate that will continue to be the case.