Liberalisation, Privatisation And Globalisation : An Appraisal

  • Question 117
    CBSEENEC11008944

    Differentiate between first generation reforms and second generation reforms.

    Solution

    These are difference between first generation reforms and second generation reforms:

    First Generation Reforms

    Second Generation Reforms

    1. First generation reforms are those reforms which do not require any legislative procedures.

    2. These measures are generally undertaken by the executive and administrative machinery of the government.

    3. They do not take much time and are not delayed.

    1. Second generation reforms are those reforms which require some legislative procedures.

    2. These measures are not undertaken by the present administrative and executive structure of the government.

    3. They take much time and are delayed.

    Question 118
    CBSEENEC11008945

    Differentiate between stabilisation measures and structural reform measures.

    Solution

    These are difference between stabilisation measures and structural reform measures:

    Stabilisation Measures

    Structural Reform Measures

    1. These measures are short-term measures.

    2. It is intended to correct some of the weakness that have developed in balance of payments and to bring inflation under control.

    1. These measures are long-term measures.

    2. It aims at improving the efficiency of the economy and increasing its international competitiveness by removing rigidities in the various segments of the Indian economy.

    Question 119
    CBSEENEC11008946

    What do you mean by the statement that “loan of seven billion dollar from World Bank and IMF by India was loan tied in?”

    Solution

    The statement means that the loan of seven billion dollar was tied up with the reform policies i.e. liberalisation, privatisation and globalisation. In other words, loan was given on the following terms and conditions :

    1. India will adopt the policy of liberalisation and will open up the economy by removing restrictions on private sector.

    2. It will remove restrictions on the private sector.

    3. It will remove the role of the government in many areas.

    4. It will remove trade restrictions between India and other countries.

    Question 120
    CBSEENEC11008947

    What do the scholars say about Navratna enterprises?

    Solution

    The scholars say that instead of facilitating Navratna enterprises in their expansion and enabling them to become global players, the government partly privatised them through disinvestment.

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