Has the World Bank stopped extending structural adjustment loans to states?
The World Bank is not giving structural adjustment loans anymore. It is giving development policy loans to states in India. The loan document is written in agreement with the central government, state government concerned and the World Bank. The bank releases the successive tranche only when the previous commitment has been met by the state in terms of the development priority it sets for itself in the agreement. Is the increasing FII dominance in Indian stock markets a cause for concern? Equity investment experience has been mixed the worldover. India is unlikely to face an economic problem in case of high outflows, as it has huge foreign exchange reserves. An outflow will probably affect the stock markets in India but not foreign payments. A global taxation initiative was being made to tax capital outflows initially. This idea is not completely out. This will reduce speculation and destabilisation. According to specialists, it is not easy to implement, because the financial sector ha