Liberalisation, Privatisation And Globalisation : An Appraisal

  • Question 61

    What are the expectations from WTO in world trade?


    The World Trade Organisation (WTO) was founded in 1995 as the successor organisation to the General Agreement on Tariffs and Trade. WTO is expected to establish a rule based trading regime in which member countries cannot place arbitrary restrictions on trade. The purpose was to enlarge production and trade of services to ensure optimum utilisation of world resources and to protect environment. The WTO agreement covers trade in goods and services both through removal of tariff as well as non-tariff barriers and providing greater market access to all member countries.

    Question 62

    Do you think India has scope in handloom and handicrafts exports?


    India is a developing country. It does not have the access to developed countries market because of high non-tariff barriers. Although all quota restrictions on export of textiles and clothing have been removed but the developed countries have not removed their quota restriction on import of textiles from India. On the other hand, the government started to reform the power sector. The most important impact of these reforms is high hike in power tariff. The impact of high tariff on power energy has been very serious. The power producers have failed in providing quality power to powerloom industry. The wages of the powerloom workers are linked to the production of cloth. Power cuts means cut in wages of weavers. This has led to crises in the livelihoods of the weavers. In such a situation, we cannot say that there is a scope in handloom exports.

    Question 63

    Differentiate between policy of restriction and policy of liberalisation.


    Liberalisation : It means removing unnecessary trade restrictions and making the economy more competitive. New economic policy liberated the private sector from strict control and licensing.

    Restriction : If restrictions are imposed on economic activities by government policies, it is called the policy of restriction. No real economy is completely free of restrictions when these restrictions are removed.

    Question 64

    What are the objectives of New Industrial Policy?


    The main objectives of new industrial policy are:

    (i) To generate more employment opportunities.

    (ii) To render public sector profitability.

    (iii) To grant more freedom to private sector.

    (iv) To maintain continuity and increased production.

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