Question

According to McCarthy, what led to the neoliberal economic reforms in the late 1980s and what kinds of changes in development policies did they initiate?

a) Economic crises and austerity measures; initiated market-oriented policies and privatization
b) Political revolutions and democratization; initiated socialist policies and nationalization
c) Technological advancements and globalization; initiated digital economy and information society
d) Environmental awareness and sustainability; initiated green development and conservation

Answer 1

The neoliberal economic reforms in the late 1980s were driven by economic crises and austerity measures. They led to market-oriented policies and privatization, promoting economic efficiency and competition.

Step-by-step explanation:

The economic reforms in the late 1980s, known as neoliberal reforms, were mainly a response to economic crises and the implementation of austerity measures. These reforms initiated market-oriented policies and privatization. The objective was to increase economic efficiency and promote competition in the market.

Examples of neoliberal reforms include deregulation of industries, reduction of government intervention in the economy, and the encouragement of foreign investment. Privatization of state-owned enterprises also took place during this period. These changes aimed to create a business-friendly environment and stimulate economic growth.