Answer:
Structural adjustment based on the Washington Consensus
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.
