Correct Option (3)
Statements 1, 3, and 4 are necessary for ensuring globalization, as per the passage.
- Statement 1: The passage explicitly states that "public enterprises have to be privatized through disinvestments and sales," indicating that privatization is a core component of globalization.
- Statement 3: The passage mentions that "Employment and wages should be governed by free play of market forces," emphasizing the reduction of government intervention in labor markets.
- Statement 4: The passage extends the logic of privatization to "social services like education and health," suggesting that these sectors should also be opened to the private sector.
Incorrect Options:
Statement 2 is not necessary for ensuring globalization; in fact, it contradicts the principles outlined in the passage.
- Statement 2: The passage advocates for "government expenditure should be kept to the minimum to abide thy the principle of fiscal prudence." An expansionary policy of public expenditure would be contrary to this principle of reduced state role and fiscal conservatism, which is a key aspect of globalization according to the text.