plz any one who solve these questions especially first one
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Answer:
To what extent can private sector businesses and corporations be a key driver of growth and development in many of the world’s poorer developing countries?
Free-market approaches favour giving a larger role to private sector enterprises with liberalization of markets, structural economic reforms to boost incentives for people and businesses and increased transparency and accountability for government given a key focus
The Washington Consensus
The Washington Consensus was a term first coined in 1989 in the wake of the Latin American financial crisis and over the years it has become a highly contentious canvas on which supporters and protestors of western-style globalisation have battled.
According to John Williamson, the economist who came up with the idea of the Washington Consensus it comprised a group of market-friendly policy prescriptions favouring the private sector including:
Fiscal discipline - keeping control of government budget deficits and national debt
Reallocating state spending from subsidies towards health care, education & infrastructure.
Tax reform - widening the base of taxation and encouraging lower tax rates to boost enterprise and work incentives as a means of creating wealth
Liberalising interest rates - allowing financial markets more freedom in setting interest rates on savings and loans and letting market interest rates allocate capital among competing uses
Exchange rates – supports a choice of fixed or free floating exchange rates but a preference against "dirty floating" i.e. intervention to manipulate the value of a currency
Trade liberalisation - a gradual reduction in import tariffs and other forms of protectionism – trade seen as an important engine of growth and development
Liberalization of inward foreign direct investment - capital investment between countries
Privatization - transferring state-owned enterprises into the private sector
Deregulation - lowering entry and exit barriers in markets but not at the expense of necessary regulation of aspects such as working conditions and employment rights
Property rights - protecting intellectual and other rights to encourage innovation and risk-taking
According to the World Bank, the private sector already provides 90% of jobs in developing nations, so the health of the private sector will be crucial to maintaining growth and development in the years ahead.