Practicing Success

Target Exam

CUET

Subject

Sociology

Chapter

Social Change and Development in India: Globalisation and Social Change

Question:
What conditions were suggested by the international organizations for providing loans for developing nations?
Options:
The loans were provided on the basis of pledging sovereign assets in the name of the loan providers.
The loans were provided with the certain assurance that the nations that receive loans will comply with some structural adjustments such as reducing the state's investment in the social security sectors such as education and health.
Loans were provided to nations that transferred their gold reserve to the international organizations in the West.
All of the above
Correct Answer:
The loans were provided with the certain assurance that the nations that receive loans will comply with some structural adjustments such as reducing the state's investment in the social security sectors such as education and health.
Explanation:
The process of liberalisation also 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