Critically examine the impact of globalization on the internal functioning of a state.

Globalisation has been producing a subtle change in the functions of the State. Its role in  he ownership and production of goods has been  getting reduced. However, this does not in any way mean a return of the Laisses faire state.

In the era of globalisation, the functions of the State began undergoing a change. With the increasing disinvestment of public sector,  privatisation was encouraged. Public sector was made to compete with the private sector, and as a whole open competition, free trade, market  economy and globalisation were practiced. State ownership of industries came to be rejected. The role of state began emerging as that of a  facilitator and coordinator. The exercise still continues.  In this era of Globalisation, several changes have been taking place in the
functions of the State:

1. Decreased Economic activities of State:
The process of liberalisation- privatisation has acted as a source of limitation on the role of the state in the economic sphere. Public sector and  enterprises are getting privatized and state presence ___ _______ __________ ________ ___ ____ _______ _______ _____ ______ ______.
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