Which among the following statements are correct about the impact of Globalisation?

(A) Globalisation results in erosion of state capacity.
(B) It means erosion in the ability of the government to do what they do.
(C) All over the world, the old 'welfare state' is now giving way to a more minimalist state that performs certain core functions.
(D) In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is Option (1) → (A), (B), (C) and (D)

(A) Globalisation results in erosion of state capacity. (Correct). Globalisation can lead to an erosion of state capacity, which refers to the government's ability to effectively carry out its functions. The increased flow of capital, goods, and services across borders and the rise of multinational corporations can limit a government's power to make independent decisions on its own. For instance, governments may be pressured to lower taxes and relax regulations to attract foreign investment, which can reduce their revenue and ability to fund public services.
(B) It means erosion in the ability of the government to do what they do. (Correct)
(C) All over the world, the old 'welfare state' is now giving way to a more minimalist state that performs certain core functions. (Correct). The traditional "welfare state," which actively provided a wide range of social services and economic protections, has often given way to a more minimalist state. This newer model focuses on core functions such as maintaining law and order, national security, and essential infrastructure, while stepping back from many of its previous roles in economic and social well-being.
(D) In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities. (Correct). As the state withdraws from welfare functions, the market becomes the primary force determining economic and social priorities. Policies are increasingly shaped by the needs of global markets, international institutions like the WTO and IMF, and multinational corporations rather than being solely driven by national social and economic goals. This shift emphasizes competition, privatization, and deregulation as the main drivers of progress.