India Will Not Be The Next China: Washington Consensu & Protectionism

The video discusses India's economic history, focusing on the transition from a Soviet-style planned economy to a more open market system. It highlights the role of the IMF and the Washington Consensus in this shift. The video explains protectionist policies, their benefits, and drawbacks, and compares them to subsidies. It also covers the License Raj, a system of intense regulation that hindered business operations in India, and how its removal helped unlock India's economic potential.

What was the primary reason for India's economic crisis in the early 1990s?

• Over-reliance on British colonial systems

• High domestic production costs

• Excessive foreign investments

• Collapse of the Soviet Union

Which of the following is a common form of protectionist policy?

• Deregulation

• Free trade agreements

• Import taxes

• Export subsidies

How do protectionist policies typically affect consumer prices?

• They lower prices by increasing competition

• They stabilize prices by controlling supply

• They have no impact on prices

• They raise prices due to import taxes

What is a potential benefit of government subsidies for local industries?

• Reduced government spending

• Enhanced export competitiveness

• Higher consumer prices

• Increased import taxes

Why do economies tend to grow when they embrace free trade?

• It reduces government intervention

• It increases import taxes

• It limits foreign competition

• It decreases consumer choice

What was the 'License Raj' in India?

• A series of government subsidies

• A network of international business partnerships

• A system of free trade agreements

• A complex system of business regulations

How did the 'License Raj' affect small businesses in India?

• It provided financial incentives

• It made it easier to start businesses

• It encouraged foreign investments

• It imposed heavy regulations and red tape