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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