I've read and re-read that middle paragraph several times however I'm struggling with it .I've come up with so many possible variations about what I think you mean that it's best that you break this argument down in baby steps please.
1) You can't have effective trade unions outside the public sector and some specific services that can't be outsourced (like trains) because it is so easy for companies to move where labour is cheaper.
2) Similarly, democratic states are increasingly unresponsive because they are to some extent at the mercy of global capital due to threat of capital flight and need to attract investment.
3) Because of this the most successful states in the modern era are authoritarian ones like China which are able to use repressive means to create a pro-business environment and some kind of fusion between the state and business. UAE, Qatar, Saudi are also examples.
4) Within the West, many democracies are also regressing into corrupt authoritarian states with diminished rule of law. Orban's Hungary is most advanced but the UK and Italy are somewhere along that path too. The most advanced along the path is of course Russia which never had a developed civil society in the first place and is basically ran by a fusion of interests between the state and private ownership of oil and gas etc.
5) The failure of any kind of democratic movement in Russia is because democracy in Europe and the US these days is not particularly inspirational. The rise of China's authoritarian capitalism also enables Russia to wage war. Other states within Europe (and the US itself) seem poised to transform into authoritarian states too. A successful invasion of Ukraine by Russia will most likely accelerate this process.
Hope that clarifies my thinking on the matter.