Question

Analyse any two political consequences of globalization.

Answer 1

1. Globalization results in an erosion of state capacity.
   1. The old ‘welfare state’ is now giving way to a more minimalist state.
   2. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities. The entry and the increased role of MNCs all over the world lead to a reduction in the capacity of governments to take decisions on their own.
2. Does not always reduce state capacity
   1. The state continues to discharge its essential functions like law and order.
   2. A state withdraws from certain domains from which it wishes to.
3. State capacity has received a boost
   1. With enhanced technologies, the state can collect information about its citizens.
   2. States have become more powerful than they were earlier as an outcome of the new technology.