Globalisation has an effect on the state sovereignty. It leads to the erosion of the capacity of the state which refers to the Government’s ability to do what they usually do. The old welfare state gave way to a more minimalist state all over the world that performs certain core functions such as maintenance of law and order and the security of the citizens. At the same time, this also means the withdrawal from some other welfare functions which are related to the economy and society. The capacity of the Government in taking decisions on their own is reduced as the role of multinational company increases. But also globalisation not always reduces the capacity of the state. In spite of the situations that are prevalent the states continue to perform essential functions. Sometimes the state capacity is enhanced because of the upgraded technologies available. The state becomes more capable than being less able.
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