What is the political consequence of globalisation?
A. Globalisation erodes state capacity.
B. The welfare state is the prime determinant of economic and social priorities.
C. The old welfare state has given way to a more minimalist state.
D. The entry of MNCs has led to reduction in the capacity of governments to take decisions on their own.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, C and D only
A. Globalisation erodes state capacity. Correct. It reduces the ability of governments to do what they do.
B. The welfare state is the prime determinant of economic and social priorities. Incorrect. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.
C. The old welfare state has given way to a more minimalist state. Correct. It keeps core functions such as law and order and security.
D. The entry of MNCs has led to reduction in the capacity of governments to take decisions on their own. Correct.
NCERT (2025-26): “Political Consequences … 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.…” |