Synopsis Globalisation/ liberalisation and structural adjustment have created tumultuous change in every aspect of the society irrespective of its affluence and poverty. The concept of "Statism" does not find its old status in the new context as the responsibility of the state has to be reduced and moreover the individuals have to take up more responsibilities for the growth and development of the society. Thus individual's role become imperative in all dimensions when the collectivity is at work. The development process initiated by the state has not yielded good results especially in the Third World countries as the state has usurped the responsibilities of the people and thereby the state has developed a dependency syndrome among the people. This work opens up a new dimension in the analysis of governance in the era of market economy.