India Exam Junction
12. Which among the following is NOT part of the structural adjustment conditionalities that IMF requires in exchange of financial assistance?
Cutting expenditure
Devaluation of currencies
Trade Liberalization
Government regulation of all private industries
Correct Answer :
Government regulation of all private industries
Solution
Structural adjustment programs (SAPs) required by the International Monetary Fund (IMF) typically focus on measures to promote market-oriented reforms, which often include:
- Cutting expenditure: Reducing government spending to control deficits.
- Devaluation of currencies: Making exports more competitive.
- Trade liberalization: Opening up economies by reducing trade barriers.
However, government regulation of all private industries is contrary to the IMF's emphasis on reducing state intervention in favor of privatization and deregulation. Thus, this is not part of IMF conditionalities.