In many ways, it was a major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation. And also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed neoliberal economic measures. We have already seen what concrete steps the liberalisation policy took in India. Broadly these policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair

Ramu's Father who did his engineering before the 1990s got a free education from engineering college. In 2005 Ramu had to pay heavy fees for his education. Select the statement which explains the political economy of this situation.

The neoliberal policies forced states to make less investment in the welfare sectors such as education and health. Ramu's father became a rich person with an education so he decided to pay the fees, a process called becoming middle class. Ramu had fewer marks than his father so it is a domination of meritocracy. The fees of education has increased due to improvement in level and quality of educational institution.

The neoliberal policies forced states to make less investment in the welfare sectors such as education and health.

The process of liberalisation involved the taking of loans from international institutions such as the International Monetary Fund (IMF). These loans are given on certain conditions. The government makes commitments to pursue certain kind of economic measures that involve a policy of structural adjustments. These adjustments usually mean cuts in state expenditure on the social sector such as health, education and social security.