Explanation:

- The sentence describes how the shortage of funds will make the implementation of reform policies ineffective.

- The word "nugatory" means something that has no value or is ineffective.

Let's look at the options:

1. Explicit: Means something that is clear and detailed.

- Not related to ineffectiveness.

2. Implicit: Means something suggested or implied, not directly expressed.

- Unrelated to ineffectiveness or lack of value.

3. Ineffectual: Means something that is not producing the desired effect or is ineffective.

- This is the correct synonym for "nugatory."

4. Composite: Means made up of various parts or elements.

- Does not match the meaning of ineffectiveness.