Introduction Advancements in technology have made the flow of information, capital, labor and other factors of production considerably effortless. State boundaries are fast becoming insignificant as a seemingly seamless virtual world is created 1 . The expansion of international trade has led to the rise of multinationals which are not content with a strong presence in the home country, and find it necessary to spread their wings across state borders. Sovereign states are also finding it impossible to remain isolated and political partnerships and federations have become a necessity in the evolving world order 2 . These changes are all results of globalization, which is now seen by many as a necessary evil. The above occurrences have dire consequences on the concept of statehood. States especially those in the developing world are increasingly losing grip of sectors over which they hitherto held unquestioned control 3 . This paper explores how globalization is contributing to the slow but sure death of the concept of statehood in most nations. The views of two globalization theorists in relation to this topic are examined, and possible solutions of this problem are also suggested. The steady decline of the state Global socio-economic health and financial stability depend significantly on legitimate state control and regulation of the economy 4 . Neoliberal ideologies, however, view the state as an imposer of unnecessary regulation and control over economic units, thereby being a hindrance to global trade 5 . Neoliberals, therefore, advocate for reduced state involvement and control in the economy. The rise of globalization has reversed the roles of the state and even if its hand is still seen in many processes, it has been weakened considerably 6 . As will be seen later, the state’s capacity to make binding decisions has been reduced by the power that globalization has granted other entities such as multinational companies and international bodies. State control over trade and interactions among its citizens and institutions gives a semblance of order and control within the state. The ease of movement and exchange of information, however, has created a virtue community which exists outside the borders and limits of state control 7 . This community forms part of what some theorists call a “nation without a state” 8 . This is just but one of the many examples illustrating how the concept of “nationhood” is fast being rendered irrelevant in a world that is turning into a small global village. Aspects of state power affected by globalization States are losing ground in areas such as control over trade and democratic processes within their territories as a result of globalization. Susan Strange expresses her views on the effect of globalization on the decline of the state in “The Erosion of the State” through a description of ways in which globalization erodes the powers held by the state over various processes. She lists three main problems which in her opinion, embody the problems that stem from globalization. The first on this list is the erosion of state control over financial markets. Trade is no longer controlled by the state, but by multinational corporations, international financial institutions such as the World Bank and the IMF, and trade organizations 9 . Globalization has been a significant factor in th