Implications of Rights based governance approach

Implications of Rights based governance approach
The changing normative status of sovereignty has led to the understanding of nation-state as ‘welfare-state’. At the most basic level, the welfare state is taken to encompass a range of public policies undertaken by governments to provide social security, a safety net to the citizens of that state.
However, over the last thirty years, the welfare state has been under attack in many developed democracies. A range of policy options which were previously available to state actors no longer are. It can be argued that this is due to the increasing scope and extent of political globalization.
Key examples include the devaluation of currencies, the high regulation of capital markets, the nationalization of domestic industries to protect them from going bust, extensive public spending leading to expensive public deficits. Yet as the markets have become more integrated and pressures from international competition encouraged
states to take risks, opening up fiscal markets and considering the implications of high labour costs on goods and services in the global economy.
More explicitly, political globalization, in its most recent form, has been limiting the capacity of states to determine their own policy outcomes in three main ways: through trade and economic integration; financial markets; and the competition for employment.
Due to the increasing pressure of international competition in trade markets as well as the increased mobility of capital and multi-national corporations, states are incentivized to cut labour costs, to reduce the price of goods and services, reduce taxation to make their domestic market more competitive and to decrease the size and scope of the welfare state.