Statement — “In a developing country, insurance must be seen as an essential service which a welfare state should provide to its people.”\n\nConclusions —\nI. The speaker is against privatisation of insurance companies.\nII. All essential services must be provided by the government only.

Introduction / Context:
The statement frames insurance as an essential service that a welfare state “should provide.” Logical care is needed: “should provide” does not exclude private participation, nor does it generalize to all essential services.

Given Data / Assumptions:

• The statement is about insurance in a developing country.
• It suggests government responsibility; it does not discuss ownership structure exhaustively.
• It does not extrapolate to all essential services.

Concept / Approach:
Conclusion I imputes anti-privatisation, which is not necessarily implied. A welfare state can regulate, subsidize, or co-provide alongside private insurers. Conclusion II overgeneralizes from one sector (insurance) to all essential services, which the statement does not do.

Step-by-Step Solution:

Verification / Alternative check:
Imagine mixed models (public options + private plans). The statement remains true without negating private presence or other sectors’ arrangements.

Why Other Options Are Wrong:

Common Pitfalls:
Equating “state should ensure” with “state should monopolize.” They are distinct.

Final Answer:
Neither I nor II follows.