Question

On which of the following grounds were the New Economic Policies criticised?

• A. Fall in price of goods due to increased competition
• B. Excess exploitation of natural resources
• C. Availability of a wider variety of products
• D. Less revenue from public sector firms

Answer 1

Answer: (B), (D)

Less revenue from public sector firms

New economic reforms opened up investment opportunities for foreign businesses. Critics were concerned about the over-exploitation of natural resources by these new businesses. Similarly, the privatisation move also drew criticism on the ground that the revenue from the public sector was bound to be reduced, along with the transfer of ownership.