Which global body promotes liberal economic reforms?
Show answer & explanation
Correct answer: B
Explanation
Answer: IMF
Explanation:
The International Monetary Fund (IMF) is a global body that encourages member countries to maintain financial stability and adopt 'liberal economic reforms.' When a country faces a Balance of Payments (BoP) crisis, the IMF often imposes a 'Structural Adjustment Program' (SAP) as a condition for providing loans. These conditions typically include privatization, trade liberalization, fiscal discipline, and a reduction in government intervention. India, too, implemented the LPG (Liberalization, Privatization, and Globalization) reforms under the conditions stipulated by the IMF during the economic crisis of 1991.
Additional Points:
UNDP: It primarily focuses on sustainable development and poverty alleviation.
WHO: It is responsible for global public health.
UNESCO: It promotes peace through education, science, and culture.
Potential Exam Questions and Answers:
Question: What is the 'Washington Consensus' associated with?
Answer: Free markets and liberal economic reforms.
Question: Where is the headquarters of the IMF located?
Answer: Washington D.C., USA.