Globalisation results in an erosion of state capacity. All over the world, the old ** state is now giving way to a more minimalist state that performs certain core functions such as maintenance of law and order and the security of its citizens. However, it withdraws from many of its earlier ** functions directed at the economic and social well being. In place of the *** state, it is the market that becomes a prime determinant of economic and social priorities. The entry and the increased role of MNCs all over the world lead to the reduction in the capacity of government to take decisions on their own.
