Question

Which among the following statements are correct about the impact of Globalisation?
(A) Globalisation results in erosion of state capacity.
(B) It means erosion in the ability of the government to do what they do.
(C) All over the world, the old 'welfare state' is now giving way to a more minimalist state that performs certain core functions.
(D) In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.

• A. (A), (B), (C) and (D)
• B. (C), (B) and (D) only
• C. (A), (D) and (C) only
• D. (B), (A) and (D) only

Hint:

Globalisation has had a profound impact on state power, often reducing the capacity of governments to control their economies and social policies, leading to the dominance of market forces.

Answer 1

The Correct Option is A

Phase 1: Analyzing Globalization's Influence
Globalization has profoundly altered the state's role in governance. Increased global interconnectedness of economies, societies, and cultures frequently diminishes state authority. We will now examine the provided assertions:
- (A) Globalization leads to a reduction in state capacity: This statement is accurate. Globalization limits states' ability to exert full control over their national economies and political decisions due to external market pressures and global actors.
- (B) This implies a diminished capacity for governments to execute their functions: This statement is accurate. Governments often struggle to enforce traditional policies or regulations when faced with global economic forces that surpass national borders.
- (C) Worldwide, the traditional 'welfare state' is being replaced by a more streamlined state focused on essential functions: This statement is also accurate. Globalization has prompted a scaling back of welfare states, with many nations now prioritizing core functions over extensive social service provision.
- (D) The market, rather than the welfare state, is now the primary driver of economic and social priorities: This statement is accurate. In the context of globalization, market forces frequently dictate economic priorities, with reduced state intervention in economic and social matters.
Phase 2: Final Determination
Given that all four statements are accurate, the correct answer is (A) (A), (B), (C), and (D).