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Question
Give an account of the changing role of state in the light of Globalization.
Solution
- Globalization results in an erosion of state capacity, i.e. the ability of government to do what they do.
- All over the world, the old welfare state is now giving way to a more minimalist state that performs certain core functions, such as, the maintenance of law and order and the security of its citizens.
- The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of government to take decisions on their own.
- Globalization has also reduced the power of states to decide national and foreign policy voluntarily. They have been forced to follow the policies and decisions of international organizations.
- There has been a change in the role of the state in making and implementing strict rules of import-export. Because globalization is based on the concept of rapid flow of people, things and ideas. Therefore, the barriers to permits, licenses etc. have been reduced, due to which the role of the state has also been reduced.
- In some respects state capacity has received a boost as a consequence of globalization, with enhanced technologies available at the disposal of the state to collect information about its citizen. With the information, the state is better able to rule, not less able.
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