Practicing Success
Read the passage and answer the following question: Globalisation involves a stretching of social and economic relationships throughout the world. This becomes possible through the introduction of certain policies. This process is broadly known as liberalisation in India. Liberalisation technically involves steady removal of rules that regulated trade and finance regulations. Once these are done, it constitutes economic reforms. Besides this liberalisation as a process also involves taking loans from international institutions such as International Monetary Fund (IMF). It is important to mention that certain condition are imposed before loans are sanctioned to a country, which thereby leads to introduction of new economic measures. These conditions constitute the Structural Adjustments. These adjustments usually mean cuts in state expenditure on social sector. |
Which of the following does not happen under Structural Adjustment? |
Introduction of certain policies Economic reforms Taking loans from IMF Increasing state expenditure in social sector |
Increasing state expenditure in social sector |
The correct answer is Option (4) → Increasing state expenditure in social sector Among the options provided, "Increasing state expenditure in the social sector" is what does not happen under Structural Adjustment. Structural Adjustment typically involves measures such as austerity measures, spending cuts, and economic reforms aimed at stabilizing a country's economy and facilitating repayment of loans. Increasing state expenditure in the social sector would contradict the typical goals of Structural Adjustment programs, which often involve reducing government spending in various sectors. |