The state today is challenged by changing traditional understanding and perception of its nature and properties, including sovereignty and competitiveness. In the XXI century, both these features are vital. There are some reasons for it. State loses political entity status, while sovereignty is used as a resource to protect national interests. Moreover, political success is determined by the level of state competitiveness that is, legal capacity of public institutions and high quality of decisions. Low quality of the state undermines its competitiveness and therefore sovereignty.