Ever since the concept of territorial nation-state occupied the centre stage of global politics, the international community has witnessed different political and economic systems being introduced from time-to-time to cater to the needs of the global community. Since the inception of the Westphalia State System (Treaty of Westphalia 1648), nation states have reinvented themselves and re-imagined their political and economic trajectories to adapt themselves to the changing needs of time and circumstances. In the contemporary international political economy, one finds a paradigm shift towards the convergence of interests between private and public, where the states across the globe are striving to achieve common good and promote public interest by creating a synergy with the private stakeholders. This article aims at decoding the circumstances and explaining the rationale behind the changing role of the state, while redefining its economic strategy and priorities in the era of globalisation. It further tries to examine the areas of convergence and issues of divergence in public–private partnership in pursuit of the goals of development and progress. The conceptual and theoretical underpinnings of the article are conceived around the philosophy of liberalism and democracy, on the one hand, and the institutional framework of free market capitalism, on the other, as envisaged in the doctrine of globalisation.