Question

Assertion (A): All over the world, the old 'welfare state' is getting more importance.
Reason (R): Due to globalisation, the state withdraws from many of its earlier welfare functions and the market has become the prime determinant of economic and social priorities.

• A. Both the Assertion (A) and the Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
• B. Both the Assertion (A) and the Reason (R) are true, but the Reason (R) is not the correct explanation of the Assertion (A).
• C. Assertion (A) is false, but Reason (R) is true.
• D. Assertion (A) is true, but Reason (R) is false.

Hint:

Globalization generally shifts the state from a Welfare State model to a Minimalist State model, which restricts state functions to primary security, keeping law and order, and enforcing contracts.

Answer 1

The Correct Option is C

Step 1: Analyzing the Assertion (A):
The Assertion claims that the old 'welfare state' (where the state takes complete responsibility for the well-being of its citizens, providing education, healthcare, and employment security) is gaining more importance. Under the globalized neoliberal paradigm, however, the comprehensive welfare state is actually shrinking and being replaced by a minimalist state. Therefore, Assertion (A) is false.

Step 2: Analyzing the Reason (R):
The Reason states that because of globalization, contemporary sovereign states are retreating from their traditional economic and social welfare functions. The market mechanism (privatization, capital flows, demand, and supply) has become the prime driver of economic and social priorities, replacing state planning. This is a universally documented and accepted consequence of globalization. Therefore, Reason (R) is true.

Step 3: Selecting the Correct Code:
Since Assertion (A) is false and Reason (R) is true, the correct option is (C).