Correct Option
The correct option is 2 and 3 only.
Explanation
Fair Globalisation refers to a form of globalization that creates opportunities for all and ensures that the benefits of globalization are shared better. The government plays a major role in making this possible by implementing policies that protect the interests of all citizens, not just the wealthy, and by engaging in international negotiations.
Statement-wise Analysis
- Statement 1 is Incorrect. The government is not prohibited from negotiating at the World Trade Organisation (WTO). On the contrary, governments of developing countries can and do negotiate for "fairer rules" at the WTO. They can align with other developing countries with similar interests to fight against the domination of developed countries in global trade rule-making.
- Statement 2 is Correct. Governments can support small producers to improve their performance until they become strong enough to compete globally. This is often referred to as the "Infant Industry Argument," where state support is provided to domestic industries in their early stages to prevent them from being overwhelmed by established foreign competitors.
- Statement 3 is Correct. Governments can use trade and investment barriers (such as tariffs, quotas, or FDI restrictions) to protect the interests of domestic industries. While the general trend of globalization is towards liberalization, the concept of "Fair Globalisation" acknowledges the right of governments to use these instruments to safeguard local economies against unfair competition or surges in imports.
Key Takeaway: To ensure fair globalization, governments can employ protectionist measures for domestic industries, support small producers, and actively negotiate for equitable rules in international forums like the WTO.