a. The words ‘erosion of state capacity’ implies the inability of the government to do what they should be doing. It is the reduction in the power and authority of the government to enforce strict rules and regulations. For example, even though the government is committed to providing basic necessities at reduced prices, the involvement of the multi-national corporations (MNCs) reduces this ability of the government. This is an erosion of the state capacity.
b. The growing influence of globalisation has given way to the concept of a minimalistic state from the concept of a welfare state. It has reduced the power and authority of the government to enforce strict rules and regulations. Even though the government is committed to providing basic necessities at reduced prices, the involvement of MNCs reduces this ability of the government. Thus the government has been transformed from a welfare state to a minimalistic state providing only basic essentials like law and order and security to the people.
c. With the inauguration of a completely globalised world, the influence and integration that one country has on another have increased manifold. The direct effect of globalisation has culminated in the spread of MNCs throughout the world. Thus the market has become more prominent while determining social priorities as even the most essential commodities are sold at the price determined by the market.
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