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‘Peace and prosperity of countries lay in the establishment and strengthening of regional economic organizations’. Critically evaluate the statement.


Give an account of the changing role of state in the light of Globalization.

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(a) The members of Regional organizations resolve their mutual differences and adopt foreign trade policy, thus give way to their economic development. 

(b) Backward countries also get a chance for their development and thus, employment also increases.

(c) Standard of living of every country is improved. 

(d) They get facilities of quality education, health and transport. 

(e) When the public gets satisfied, then its trust in Nation's policy increases and thus along with its capability, also corporates in its policies, which brings peace and prosperity in a country. 

(f) There are no chances of public outrage.


(a) Globalization results in an erosion of state capacity, i.e. the ability of government to do what they do. 

(b) 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. 

(c) The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of government to take decisions on their own. 

(d) Globalization has also reduced the power of states to decide national and foreign policy voluntarily. They have been forced to follow the policies and decisions of international organizations. 

(e) There has been a change in the role of the state in making and implementing strict rules of import-export. Because globalization is based on the concept of rapid flow of people, things and ideas. Therefore, the barriers to permits, licenses etc. have been reduced, due to which the role of the state has also been reduced.

(f) In some respects state capacity has received a boost as a consequence of globalization, with enhanced technologies available at the disposal of the state to collect information about its citizen. With the information, the state is better able to rule, not less able.

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