Question

What development strategy/policy favored by the IMF, World Bank, and the US compels developing nations to reform their economies along neoliberal lines in order to compete in the global market?

Answer 1

Structural adjustment based on the Washington Consensus

Step-by-step explanation:

When the IMF or the World Bank makes a loan to a developing nation that is in financial problems, the demand the country to start a policy of structural adjustment based on the economic principles known collectively as the Washington Consensus.

Some of the demands of the Washington Consesus are:

• Fiscal discipline, reducing budget deficits.
• Reforming the tax structure, so that more people pay taxes, but everyone pays less proportional to their total income.
• Privatization of public enterprises.
• Promotion of free trade.