There are views both for and against the impact of globalisation on the role of the state.

• Critics are of the opinion that globalisation weakens the state. It results in an erosion of the state capacity i.e. the ability of the government to do what it does. The former welfare state is being turned into a more minimalist state that performs certain core functions like ensuring law and order and security of its citizens. The state withdraws from its many welfare functions in the social and economic field. In such case, the market becomes the prime decision maker of social and economic priorities. The rapid emergence of MNCs worldwide also loosens power from the hands of the state.

• Advocates of globalisation stand for the fact that globalisation does not dilute the power of the state, rather it strengthens it. Enhanced technology enables the state to gather more information about its citizens and rule better. Thus, globalisation does not reduce the role of the state, rather makes it more efficient.