Read the passage and answer the questions:
One of the debates that has been generated as a consequence of contemporary processes of globalization relates to its ongoing political impact. How does globalization affect traditional conceptions of state sovereignty? There are at least three aspects that we need to consider when answering this question. At the most simple level, globalization results in an erosion of state capacity, that is, the ability of governments 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. The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own. At the same time, globalization does not always reduce state capacity. The primacy of the state continues to be the unchallenged basis of political community. The old jealousies and rivalries between countries have not ceased to matter in world politics. The state continues to discharge its essential functions (law and order, national security) and consciously withdraws from certain domains from which it wishes to. States continue to be important. Indeed, in some respects state capacity has received a boost as a consequence of globalisation, with enhanced technologies available at the disposal of the state to collect information about its citizens. With this information, the state is better able to rule, not less able. Thus, states become more powerful than they were earlier as an outcome of the new technology.
Which one of the following correctly reflects the earlier welfare functions of the state?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Functions directed at economic and social well-being of citizens.
Option (1) Allowing market to determine economic and social priorities. — Incorrect. This is what happens in place of the welfare state, not a welfare function.
Option (2) Maintenance of law and order and the security of citizens. — Incorrect. These are the core functions that even the minimalist state performs.
Option (3) Functions directed at economic and social well-being of citizens. — Correct. The state now withdraws from many of its earlier welfare functions directed at economic and social well-being.
Option (4) Allowing entry and increased role of multinational companies. — Incorrect. Welfare functions are what the state itself does for the economic and social well-being of its citizens. Letting multinational companies in hands more of the economy to private players and reduces the capacity of governments to take decisions on their own, so it belongs to the newer, minimalist state, not to the earlier welfare state.
NCERT (2025-26): “Political Consequences … One of the debates that has been generated as a consequence of contemporary processes of globalisation relates to its ongoing political impact. How does globalisation affect traditional conceptions of state sovereignty? There are at least three aspects that we need to consider when answering this question. At the most simple level, globalisation 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. The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.…” |