Impact of globalization on the internal function of state
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The functions of the state have undergone a sea change due to the impact of globalization. The states are eager to increase their share in the world market by means of exports and imports. Multinational corporations are playing a vital role in the domestic economy of the states.
International agencies like International Monetary Fund (IMF), the World Bank (IBRD) and the World Trade Organization (WTO) control and modify, to some extent, the fiscal policies of the states. Public sectors are being privatized. Private enterprise is preferred to the public sector. Foreign Direct Investments (FDI) is being encouraged.
The states are gradually withdrawing themselves from economic, social and welfare activities. Individual initiative is being emphasized at every level. Market economy has replaced the command economy. Imperative planning has been replaced by indicative planning. Moreover, neo liberals advocate for the promotion of free economy for the best realization of human potential. The state exhorts the people to act on the principle that "self help is the best help". In other words, the state's role is now confined to be a facilitator rather than serving people from cradle to grave.
International agencies like International Monetary Fund (IMF), the World Bank (IBRD) and the World Trade Organization (WTO) control and modify, to some extent, the fiscal policies of the states. Public sectors are being privatized. Private enterprise is preferred to the public sector. Foreign Direct Investments (FDI) is being encouraged.
The states are gradually withdrawing themselves from economic, social and welfare activities. Individual initiative is being emphasized at every level. Market economy has replaced the command economy. Imperative planning has been replaced by indicative planning. Moreover, neo liberals advocate for the promotion of free economy for the best realization of human potential. The state exhorts the people to act on the principle that "self help is the best help". In other words, the state's role is now confined to be a facilitator rather than serving people from cradle to grave.
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