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 words ‘erosion of state capacity’ 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 ?
ii. Due to privatization, most of the economic activities are conducted by the private sector. States have lesser 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 constantly in search of markets to sell their products. Markets have become the determinants of social priorities because with the onset of globalization, the entire country has turned into a single market.
