question_answer

Read the following passage carefully and answer the following questions:

At the most simple level, globalization results in an erosion of state capacity that is 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. However, it withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.

(i) What do the worlds 'erosion of state capcity' imply' Explain with the help of an example.

(ii) Why is the concept of welfare state giving way to a minimalist state?

(iii) How has market become the prime determinant of social priorities?

 

Answer:

(i) Erosion of state capacity means reduction in the capability or power of the government to fulfill or take up responsibilities. Nowadays, the governments of various countries are obliged to obey the international norms for preservation and conservation of environment.

(ii) Due to privatization, most of the economic activities are in the private sector. States do have role to facilitate the economic development by maintaining law and order and providing security to the citizens. As such welfare activities are getting reduced.

(iii) Multi-national companies have come into the field of economic growth. They are in search of markets to sell their products. Now markets have become the determinants of social priorities. It had lead to a reduction in the capacity of governments to take decision on their own.