International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Volume 8 Issue 5
September-October 2026

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Globalization, Free Markets, and Social Justice: A Critical Legal Analysis of the Welfare State, Development-Induced Displacement, and Unemployment

Author(s) Ms. Aisha Rafiq
Country India
Abstract This paper examines critically the various layers of dynamics of interactions between economic globalization, free-market orthodoxy and the basic requirements of social justice in the current state system. The study explores the structural transformation of the Welfare State from provider of direct welfare to a regulatory institution that enables the market in the light of globalization and neoliberal jurisprudence, by focusing on the evaluation of the changes in the concept of the social contract. The paper explores two core socio-legal pathologies of economic integration: Development-Induced Displacement (DID) and the structural precarity or unemployment, through an analysis of the international regimes and laws, constitutional rights, state practice and judicial responses, focusing on jurisdictions from the global South. The analysis shows that open market policies have sparked transnational capital flows and overall economic development, but that their working process creates externalities that affect the whole system, which happen to be disproportionately opposed to the many susceptible groups. This paper will advance these arguments in the context of critical legal theory, human rights frameworks and constitutional jurisprudence, establishing that the economic growth model will not solve social inequalities without affirmative legal actions. The modern Welfare State cannot, therefore, simply go back or go back to being a hyper-minimalist state that is efficient in the market. Rather it should evolve towards a stronger, protective and rights-based regulatory system that can enforce social justice, which is currently being undermined by unchecked economic forces.
Keywords Free market orthodoxy, Neoliberal jurisprudence, Precarity , Development-Induced Displacement and Externalities.
Field Sociology > Administration / Law / Management
Published In Volume 8, Issue 5, September-October 2026
Published On 2026-10-08
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E-ISSN 2582-2160
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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