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Question

Critically evaluate the impact of the changing role of the state in the developing countries in the light of globalisation.

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Solution

Discussions on globalisation often involve questions regarding its impact on the states’ sovereignty, and the following analysis has been drawn:

a. It is argued that globalisation has eroded the capacity of the states to perform independent functions due to the influences of the international organisations and MNCs on their decisions.
b. It has reduced the capacity of the states to perform welfare functions and has given way to the concept of a minimalist state that performs functions related to law and order.
c. Today it is the market and its forces which have occupied a pre-eminent position.
d. There has been an erosion of authority and power of the states and it is the private players who dominate the scene and influence decision making.
e. It is the private sector that has superseded the state-controlled public sector.
f. Further, liberalisation has encouraged the free flow of goods and services. It it has resulted in the abolition of the licence-raj, thereby limiting the role of the states.

However, the above mentioned views can be contested on the following grounds:

a. State continues to remain the main actor in the international arena, guarding its own national interests.
b. It is ultimately the state which has the legitimate right to use force, make laws and regulations like the labour laws.
c. The state continues to perform its basic functions related to law and order.
d. Globalisation has instead increased the role of the states, and the technological advancements have enabled the states to collect and disseminate information.
e. It has made it possible for the states to collect information about their citizens.
f. Increased competition among the economies has compelled the nation states to take decisions that strengthen their economies, generate more employment and attract more investments.


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