Q18 of 29 Page 1

Read the passage given below carefully and answer the following questions:

At the most simple level, globalisation results in an erosion of state capacity, that is, the ability of government to do what they do. 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. However, it withdraws from many of its earlier welfare functions directed at economic and social well-being. In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.


a. What does the words ‘erosion of state capacity' imply? Explain with the help of an example.


b. Why is the concept of welfare state giving way to a minimalistic state?


c. How has the market become the prime determinant of social priorities?


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.


More from this chapter

All 29 →
16

How did the Janata Party make the 1977 elections into a referendum of the emergency imposed in 1975? Explain.

 17

Read the passage given below carefully and answer the following questions:

Each of these countries was required to make a total shift to a capitalist economy, which meant rooting out completely any structures evolved during this period. Above all, it meant that private ownership was to be the dominant pattern of ownership of property. The privatisation of state assets and corporate ownership patterns were to be immediately brought in. Collective farms were to be replaced by private farming and capitalism in agriculture. This transition ruled out any alternate or ‘third way'.


a. Name any two countries which were required to make a total shift?


b. Why were the collective farms to be replaced by private farming?


c. Since the third way had been ruled out, what were the only two ways of controlling the economy?

 19

Read the passage given below carefully and answer the following questions:

When India conducted its first nuclear test, it was termed as a peaceful explosion. India argued that it was committed to the policy of using nuclear power only for peaceful purposes. The period when the nuclear test was conducted was a difficult period in domestic politics. Following the Arab-Israel War of 1973, the entire world was affected by the Oil Shock due to the massive hike in the oil prices by the Arab nations. It led to economic turmoil in India resulting in high inflation.


a. When did India conduct its first nuclear test and why?


b. Why was the period, when the nuclear tests were conducted in India, considered to be a difficult period in domestic politics?


c. Which international event of the 1970s was responsible for high inflation in India?

 20

Study the cartoon given below and answer the following questions:


a. Identify any four national leaders from the above cartoon and mention the serial number of each.


b. Which was the most controversial issue of the period related to leader number (2) as Prime Minister of India?


c. What was the position of the party led by leader number (1) in the Lok Sabha elections of 1989?