Which among the following statements are correct about the impact of Globalisation?

(A) Globalisation results in erosion of state capacity.

(B) It means erosion in the ability of the government to do what they do.

(C) All over the world, the old ’welfare state’ is now giving way to a more minimalist state that performs certain core functions.

(D) In place of the welfare state, it is the market that becomes the prime determinant of economic and social priorities.

The correct option is (A), (B), (C) and (D).

Let us analyze the impact of globalization on state capacity and functions step-by-step to understand why all the given statements are correct:

1. Erosion of State Capacity:
Statement (A) states that globalization results in the erosion of state capacity, and Statement (B) explains this as the reduction in the ability of governments to do what they do. Globalization leads to the integration of national economies into the global market. This process often restricts the autonomous decision-making power of national governments, thereby eroding their traditional authority and capacity to regulate social and economic life independently.

2. Shift to a Minimalist State:
Statement (C) points out that the old "welfare state" is giving way to a more minimalist state that performs core functions. Under the influence of globalization and neo-liberal economic policies, states increasingly withdraw from key welfare activities. The state's role shrinks to performing essential or core sovereign functions, such as maintaining law and order and protecting national security, rather than directing social welfare programs.

3. Market as the Prime Determinant:
Statement (D) asserts that in place of the welfare state, the market becomes the prime determinant of economic and social priorities. With globalization, market forces (demand, supply, multinational corporations, and international financial institutions) take over the allocation of resources. Consequently, social and economic choices are driven more by market profitability and competitiveness than by state-directed welfare measures.

Since all statements (A), (B), (C), and (D) accurately describe the socio-political and economic consequences of globalization on state sovereignty and capacity, the option containing all four statements is correct.