Hence, it can be stated that globalization has weakened governance and dominance of government and has also restricted its role for the betterment of the society. The essay highlights the supporting ideas for the argument “globalization has reduced the ability of the government to govern” (Weiss, 2000).
.International Monetary Fund (IMF) has stressed on the growing interdependence of economy worldwide on the increasing volume of cross-border transactions of goods or services and widespread transmission of technology. Dr. Ismail Shariff has defined globalization as a global process for homogenizing products, prices, wages, profits and interest rates. It depends on three main global forces of development such as the role of human migration, rapid movement of capital and international trade and lastly integration of financial markets (Poggi, 1978).
.Globalization has been confounded by political and technical instruments such as policies of trade, information technology, and financial liberalization. Thus, these instruments are defined as the main drivers of globalization. However, there is a distinguishing feature of globalization, which has been identified by IMF and the World Bank. The feature refers to the wide scope of revenue for the economy that is engaged in cross-border transaction. These two institutions have given its decision in the economic affairs and have limited government intervention into globalization. Free trade and growing mobility of capital to promote the supranational decision making of the companies have reduced the power of the governments globally. . These factors have undoubtedly developed greater economic and social inequalities as globalization brought new realities to the market through its laissez-faire approach (Held, 1991).