Question

The IMF agreed to give Kenya a $2 million loan on the condition that the government would sell an electrical company in it’s northern region to a private corporation. This situation demonstrates which of the following concepts:
A. CommodificationB. Cumulative causationC. Fair TradeD. ArbitrageE. Structural adjustment

Answer 1

Answer:

E) Structural Adjustment

Explanation:

Structural Adjustment Programs: These are the programs of IMF and World Bank, in which they bailout loans to the countries who are in the phase of economic crisis. Although the borrowing countries first would need to initiate IMF's driven policies to qualify for the loans. They may ask the countries to privatize or liberate their trade market.

• The same happened with Kenya, IMF wants them to agree with the condition first then they will bailout loan for them.