Correct Option (b)
The passage explicitly states that globalization's underlying philosophy includes an "overall philosophy of reduction in the role of the State." This is substantiated by several policy recommendations, such as the privatization of public enterprises, opening sectors previously reserved for the public sector to private entities, removing restrictions on workforce adjustments, and implementing fiscal reforms aimed at lower taxation and minimal government expenditure. These actions collectively indicate a diminished operational and interventionist role for the state in economic and social domains.
Incorrect Options:
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Option (a) expanding role: This option directly contradicts the central theme of the passage, which advocates for a significant reduction in state intervention and a greater reliance on market forces in economic and social spheres.
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Option (c) statutory role: While the state inherently maintains a statutory role, this option does not capture the dynamic shift in the extent and nature of state involvement emphasized by the passage. The passage focuses on the diminution of the state's active economic and regulatory functions, rather than merely its legal existence.
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Option (d) none of the above roles: This option is incorrect because option (b) accurately reflects the position of the state as described within the passage.