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.
Answer & explanation
Correct answer: option 1
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.