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

Step 1: Understanding the Impact of Globalisation
Globalisation has significantly impacted the role of the state in governance. The process leads to increased interconnectedness of economies, societies, and cultures, which often results in the weakening of state power. Let us analyze the provided statements:
- (A) Globalisation results in erosion of state capacity: This is correct. Globalisation reduces the ability of states to exercise complete control over their national economies and political decisions due to external market pressures and global actors.
- (B) It means erosion in the ability of the government to do what they do: This is correct. Governments often find themselves unable to enforce traditional policies or regulations in the face of global economic forces that transcend national boundaries.
- (C) All over the world, the old 'welfare state' is now giving way to a more minimalist state that performs certain core functions: This is also correct. Globalisation has led to the retrenchment of welfare states, and many countries are now focusing on essential functions rather than providing extensive social services.
- (D) In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities: This is correct. In the era of globalisation, the market often determines economic priorities, with less intervention by the state in economic and social affairs.
Step 2: Conclusion
Since all four statements are correct, the correct answer is (A) (A), (B), (C) and (D).