(i) The base for New Economic Policy in various countries of the world is Dunkel Draft.
(ii) It was allabout the General Agreements on Trade and Tariff.
(iii) Mr. Arthur Dunkel (1932-2005) submitted a 22,000 page document for the World Trade Organisation (WTO) and followed by many Nations to adopt their respective New Economic Policies.
(iv) India is one among such nations to commit itself to the New Economic Policy in 1991.
(v) The new set of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model.

(i) Corporations got a competitive advantage from lower operating costs, and access to new raw materials and additional markets.
(ii) Multinational corporations (MNCs) can manufacture, buy and sell goods world wide.
(iii) Globalisation has led to a boom in consumer products market.

(i) The Government has started the process of disinvestment in those PSUs which had been running into loss.
(ii) It means that Government has been selling out these industries to private sector.
(iii) So disinvestment is a system of privatising government enterprises.

i) Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the government to the private sector.
ii) Under this policy many Public Sector Units (PSUs) were sold to private sector.
iii) The main reason for privatisation was that PSUs were running in losses due to mismanagement and political interference.
iv) The managers could not work independently and the production capacity remained under-utilized.
v) To increase competition and efficiency privatisation of PSUs was inevitable.

(i) Liberalization refers to laws or rules being liberalised or relaxed, by a government.
(ii) Liberalization means relaxation of various government restrictions in the areas of social and economic policies in order to make economies free to enter in the market and establish their venture in the country.
(iii) Liberalizing trade policy by the government includes removal of tariff,subsidies and other restrictions on the flow of goods and services between countries.
(iv) Liberalization is the result of 'New Industrial Policy' which abolished the "License system" or "Licence Raj".