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Read the given passage carefully and choose the most appropriate option to the questions given below.
The World Trade Organisation (WTO) was created in the early 1990s as a component of the Uruguay Round negotiation. However, it could have been negotiated as part of the Tokyo Round of the 1970s, since negotiation was an attempt at a ‘constitutional reform’ of the General Agreement on Tariffs and Trade (GATT). Or it could have been put off to the future, as the US government wanted. What factors led to the creation of the WTO in the early 1990s?One factor was the pattern of multilateral bargaining that developed late in the Uruguay Round. Like all complex international agreements, the WTO was a product of a series of tradeoffs between principal actors and groups. For the United States, which did not want a new organization, the disputed settlement part of the WTO package achieved its longstanding goal of a more effective and more legal dispute settlement system. For the Europeans, who by the 1990s had come to view GATT dispute settlement less in political terms add more as a regime of legal obligations, the WTO package was acceptable as a means to discipline the resort to unilateral measures by the United States. Countries like Canada and other middle and smaller trading partners were attracted by the expansion of a rulebased system and by the symbolic value of a trade organization, both of which inherently support the weak against the strong. The developing countries were attracted due to the provisions banning unilateral measures. Finally, and perhaps most important, many countries at the Uruguay Round came to put a higher priority on the export gains than on the import losses that the negotiation would produce, and they came to associate the WTO and a rulebased system with those gains. This reasoning – replicated in many countries – was contained in U. S. Ambassador Kantor’s defense of the WTO, and it announced to a recognition that international trade and its benefits cannot be enjoyed unless trading nations accept the discipline of a negotiated rulebased environment.A second factor in the creation of the WTO was pressure from lawyers and the legal process. The dispute settlement system of the WTO was seen as a victory of legalists but the matter went deeper than that. The GATT, and the WTO, are contract organizations based on rules, and it is inevitable that an organization creating a further rule will, in turn, be influenced by legal process. Robert Hudee has written of the‘momentum of legal development’, but what is this precisely? Legal development can be defined as promotion of the technical legal values of consistency, clarity (or certainty) and effectiveness; these are values that those responsible for administering any legal system will seek to maximize. As it played out in the WTO, consistency meant integrating under one roof a whole lot of separate agreements signed under GATT auspices; clarity meant removing ambiguities about the powers of contracting parties to make certain decisions or to undertake waivers; and effectiveness meant eliminating exceptions arising out of grandfatherrights and resolving defects in dispute settlement procedures and institutional provisions. Concern for these values is inherent in any rulebased system of cooperation since without these value rules would be meaningless in the first place, therefore, create their own incentive for fulfillment.The moment of legal development has occurred in other institutions besides the GATT, most notably in the European Union (EU). Over the past two decades, the European Court of Justice (ECJ) has consistently rendered decisions that have expanded incrementally the EU’sinternal market, in which the doctrine of ‘mutual recognition’ handed down in Cassis de Dijon case in 1979 was a key turning point. The court is now widely recognized as a major player in European integration, even though arguably such a strong role was not originally envisaged in the Treaty of Rome, which initiated the current European Union. One means the Court used to expand integration was the ‘teleological method of interpretation’, whereby the actions of member states were evaluated against ‘the accomplishment of the most elementary goals set forth in the Preamble to the (Rome) treaty. The teleological method represents an effort to keep current policies consistent with stated goals, and it is analogous to the effort in GATT to keep contracting party trade practices consistent with slated rules. In both cases, legal concerns and procedures are an independent force for further cooperation.In the large part, the WTO was an exercise in consolidation. In the context of a trade negotiation that created a nearrevolutionary expansion of international trade rules, the formation of the WTO was a deeply conservative act needed to ensure that the benefits of the new rules would not be lost. The WTO was all about institutional structure and dispute settlement: these are the concerns of conservatives and not revolutionaries, that is why lawyers and legalists took the lead on these issues. The WTO codified the GATT institutional practice that had developed by custom over three decades, and it incorporated a new dispute settlement system that was necessary to keep both old and new rules from becoming a sham. Both the international structure and the dispute settlement system were necessary to preserve and enhance the integrity of the multilateral trade regime that had been built incrementally from the 1940s to the 1990s.
According to the passage, WTO promoted the technical legal values partly through.
Options
Rules that create their own incentive for fulfilment.
Ambiguities about the powers of contracting parties to make certain decisions.
Integrating under one roof the agreements signed under GATT.
Grandfather - rights exceptions and defects in dispute settlement procedures.
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Solution
Integrating under one roof the agreements signed under GATT.
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Paragraph: China’s rising power is based on its remarkable economic success. Shanghai’s overall economy is currently growing at around 13% per year, thus doubling in size every five or six years. Everywhere there are start-ups, innovations, and young entrepreneurs hungry for profits. In a series of high-level meetings between Chinese and African officials, the advice that the African leaders received from the Chinese was sound and more practical than they typically get from the World Bank. Chinese officials stress the crucial role of public investments, especially in agriculture and infrastructure, to lay the basis for private sector-led growth. In a hungry and poor rural economy, as China was in the 1970s and as most of Africa is today, a key starting point is to raise farm productivity. Farmers need the benefits of fertilizer, irrigation and high-yield seeds, all of which were a core part of China’s economical take off. Two other equally critical investments are also needed: roads and electricity, without which there cannot be a modern economy. Farmers might be able to increase their output, but it won’t be able to reach the cities, and the cities won’t be able to provide the countryside with inputs. The government has taken pains to ensure that electricity grids and transportation networks reach every village in China. China is prepared to help Africa in substantial ways in agriculture, roads, power, health and education. And that is not an empty boast. Chinese leaders are prepared to share new high yield rice varieties, with their African counterparts and, all over Africa, China is financing and constructing basic infrastructure.
This illustrates what is wrong with the World Bank. The World Bank has often forgotten the most basic lessons of development, preferring to lecture the poor and force them to privatize basic infrastructure, which is untenable, rather than to help the poor to invest in infrastructure and other crucial sectors. The Banks’ failure began in the early 1980s when under the ideological sway of the American President and British Prime Minister tried to get Africa and other poor regions to cut back or close down government investments and services. For 25 years, the bank tries to get governments out of agriculture, leaving impoverished peasants to fend for themselves. The result has been a disaster in Africa, with farm productivity stagnant for decades. The bank also pushed for privatization of national health systems, water utilities, and road and power networks, and has grossly underfinanced these critical sectors. This extreme free-market ideology, also called “structural adjustment”, went against the practical lessons of development successes in China and the rest of Asia. Practical development strategy recognizes that public investments - in agriculture, health, education, and infrastructure- are necessary complements to private investments. The World Bank has instead wrongly seen such vital public investments as an enemy of private sector development. Whenever the banks’ ideology failed, it has blamed the poor for corruption, mismanagement, or lack of initiative. Instead of focusing its attention on helping the poorest countries to improve their infrastructure, there has been a crusade against corruption. The good news is that African governments are getting the message on how to spur economic growth and are getting crucial help from China and other partners that are less wedded to extreme free-market ideology than the world Bank. They have declared their intention to invest in infrastructure, agriculture modernistation, public health, and education. It is clear the Bank can regain its relevance only if it becomes practical once again, by returning its focus to financing public investments in priority sectors. If that happens, the Bank can still do justice to the bold vision of a world of shared prosperity that prompted its creation after World War II.
What effect has the World Bank policy had on African nations?
Paragraph: China’s rising power is based on its remarkable economic success. Shanghai’s overall economy is currently growing at around 13% per year, thus doubling in size every five or six years. Everywhere there are start-ups, innovations, and young entrepreneurs hungry for profits. In a series of high-level meetings between Chinese and African officials, the advice that the African leaders received from the Chinese was sound and more practical than they typically get from the World Bank. Chinese officials stress the crucial role of public investments, especially in agriculture and infrastructure, to lay the basis for private sector-led growth. In a hungry and poor rural economy, as China was in the 1970s and as most of Africa is today, a key starting point is to raise farm productivity. Farmers need the benefits of fertilizer, irrigation and high-yield seeds, all of which were a core part of China’s economical take off. Two other equally critical investments are also needed: roads and electricity, without which there cannot be a modern economy. Farmers might be able to increase their output, but it won’t be able to reach the cities, and the cities won’t be able to provide the countryside with inputs. The government has taken pains to ensure that electricity grids and transportation networks reach every village in China. China is prepared to help Africa in substantial ways in agriculture, roads, power, health and education. And that is not an empty boast. Chinese leaders are prepared to share new high yield rice varieties, with their African counterparts and, all over Africa, China is financing and constructing basic infrastructure.
This illustrates what is wrong with the World Bank. The World Bank has often forgotten the most basic lessons of development, preferring to lecture the poor and force them to privatize basic infrastructure, which is untenable, rather than to help the poor to invest in infrastructure and other crucial sectors. The Banks’ failure began in the early 1980s when under the ideological sway of the American President and British Prime Minister tried to get Africa and other poor regions to cut back or close down government investments and services. For 25 years, the bank tries to get governments out of agriculture, leaving impoverished peasants to fend for themselves. The result has been a disaster in Africa, with farm productivity stagnant for decades. The bank also pushed for privatization of national health systems, water utilities, and road and power networks, and has grossly underfinanced these critical sectors. This extreme free-market ideology, also called “structural adjustment”, went against the practical lessons of development successes in China and the rest of Asia. Practical development strategy recognizes that public investments - in agriculture, health, education, and infrastructure- are necessary complements to private investments. The World Bank has instead wrongly seen such vital public investments as an enemy of private sector development. Whenever the banks’ ideology failed, it has blamed the poor for corruption, mismanagement, or lack of initiative. Instead of focusing its attention on helping the poorest countries to improve their infrastructure, there has been a crusade against corruption. The good news is that African governments are getting the message on how to spur economic growth and are getting crucial help from China and other partners that are less wedded to extreme free-market ideology than the world Bank. They have declared their intention to invest in infrastructure, agriculture modernistation, public health, and education. It is clear the Bank can regain its relevance only if it becomes practical once again, by returning its focus to financing public investments in priority sectors. If that happens, the Bank can still do justice to the bold vision of a world of shared prosperity that prompted its creation after World War II.
Which of the following cannot be said about structural adjustment?
Paragraph: In the 16th century, an age of great marine and terrestrial exploration, Ferdinand Magellan led the first expedition to sail around the world. As a young Portuguese noble, he served the king of Portugal, but he became involved in the quagmire of political intrigue at court and lost the king's favor. After he was dismissed from service by the king of Portugal, he offered to serve the future Emperor Charles V of Spain.
A papal decree of 1493 had assigned all land in the New World west of 50 degrees W longitude to Spain and all the land east of that line to Portugal. Magellan offered to prove that the East Indies fell under Spanish authority. On September 20, 1519, Magellan set sail from Spain with five ships. More than a year later, one of these ships was exploring the topography of South America in search of a water route across the continent. This ship sank, but the remaining four ships searched along the southern peninsula of South America. Finally they found the passage they sought near 50 degrees S latitude. Magellan named this passage the Strait of All Saints, but today it is known as the Strait of Magellan.
One ship deserted while in this passage and returned to Spain, so fewer sailors were privileged to gaze at that first panorama of the Pacific Ocean. Those who remained crossed the meridian now known as the International Date Line in the early spring of 1521 after 98 days on the Pacific Ocean. During those long days at sea, many of Magellan's men died of starvation and disease.
Later, Magellan became involved in an insular conflict in the Philippines and was killed in a tribal battle. Only one ship and 17 sailors under the command of the Basque navigator Elcano survived to complete the westward journey to Spain and thus prove once and for all that the world is round, with no precipice at the edge.
The passage was found near 50 degrees S of ________.
Paragraph: Marie Curie was one of the most accomplished scientists in history. Together with her husband, Pierre, she discovered radium, an element widely used for treating cancer and studied uranium and other radioactive substances. Pierre and Marie's amicable collaboration later helped to unlock the secrets of the atom.
Marie was born in 1867 in Warsaw, Poland, where her father was a professor of physics. At an early age, she displayed a brilliant mind and a blithe personality. Her great exuberance for learning prompted her to continue with her studies after high school. She became disgruntled, however, when she learned that the university in Warsaw was closed to women. Determined to receive a higher education, she defiantly left Poland and in 1891 entered the Sorbonne, a French university, where she earned her master's degree and doctorate in physics.
Marie was fortunate to have studied at the Sorbonne with some of the greatest scientists of her day, one of whom was Pierre Curie. Marie and Pierre were married in 1895 and spent many productive years working together in the physics laboratory. A short time after they discovered radium, Pierre was killed by a horse-drawn wagon in 1906. Marie was stunned by this horrible misfortune and endured heartbreaking anguish. Despondently she recalled their close relationship and the joy that they had shared in scientific research. The fact that she had two young daughters to raise by herself greatly increased her distress.
Curie's feeling of desolation finally began to fade when she was asked to succeed her husband as a physics professor at the Sorbonne. She was the first woman to be given a professorship at the world-famous university. In 1911 she received the Nobel Prize in chemistry for isolating radium. Although Marie Curie eventually suffered a fatal illness from her long exposure to radium, she never became disillusioned about her work. Regardless of the consequences, she had dedicated herself to science and to revealing the mysteries of the physical world.
When she learned that she could not attend the university in Warsaw, she felt _________.
Read the passage and answer the question following it
Artists should treat their art as art and take the process of making it as seriously as anyone takes their chosen profession. Great skill and insight are required in order to create truly original art. Transforming an idea or concept into a technically thought-provoking or emotion-arousing work of art in any medium is a talent that few people possess. And there you have the "purist's vision."
Now if an artist wants to create art and never sell it, then he or she never has to worry about how to price it. That artist can afford to be a "purist." as you put it, produce art free of any encumbrances or concerns about what the art world or anyone else might think, and avoid "prostituting" or "debasing" that art by placing dollar values on it." But if you're an artist who wants to sell your art or who has to sell it in order to survive as an artist, you must use whatever tools are available to figure out how much it's worth and how best to sell it.
Let's say you're just starting out as an artist, you have little or no experience showing or selling your work, and in a period of two minutes, you produce a pencil drawing on a piece of paper. You view this drawing as highly significant in your evolution as an artist and rank its creation as the single most important creative moment of your life.
Consequently, you put a price of $20, 000 on it because only for that amount of money will you agree to part with such an important work of art. This is a "purist's vision" approach to pricing as opposed to a "realities of the marketplace" approach. From a business standpoint, you'll have an extremely difficult time selling your drawing, as you won't be able to justify the $20,000 price to real art buyers in the real art world. You have no track record of selling artin that price range, and you have few or no shows, critical reviews, or supporting data from outside sources indicating that your art has that kind of value or collectibility in the marketplace. The overwhelming majority of art buyers who have $20,000to spend look for works of art by established artists with documented track records of showing and selling art in that price range.
Your drawing is still highly significant to you, but what someone is willing to pay for it on the open market is a matter for art buyers to decide. You can price it however you wish, but you can never force anyone to buy it. That's the way the art business works. So if you want to sell it, you have to figure out what dollar amount someone is likely to pay for it on the open market and then price it at that amount. But the tale of your drawing does not end here.
The art world may, one agree with you that the product of your two-minute moment precipitates a major transformational turning point in your career, and is well worth a $20,000 asking price, but you're going to have to prove first. Aspects of that drawing will have to be reflected in your art from the moment you created it onwards, the art world will have to recognize your art both critically and from the marketing standpoints, and you will have to successfully produce, show, and sell for many years. Then one day, when your first retrospective exhibition opens at the Four-Star Museum of Art, that drawing will hang framed and captioned as the first inspiration for all subsequent work. The art world will then understand and respect its significance, and a serious collector may well be willing to pay an extraordinary price to own this historically important document of your career.
Returning for a moment to the concept of a purist artist who creates art and never sells it, sooner or later (hopefully later), that purist will pass on and leave behind a body of work. Unless that artist leaves specific instructions in his or her will for that body of work to be destroyed, it will become subject to those market forces that the artist strived for a lifetime to avoid. At the very least, it'll have to be appraised for tax, donation, or inheritance purposes. In most cases, it eventually comes onto the market either through a probable sale, an auction, or as represented by a dealer, gallery, or family member. The moral of the story is that one way or another, someone somewhere at some point in time will use tried and true methods to realistically price and either sell, donate, trade or otherwise transact any work of art that comes onto the market in any way, shape, or form. I hope that that person will be you, the artist and that you'll price your art according to what the market will bear, sell plenty of it, and have a long and rewarding career. Answer the following question indicating your option for question:
For an artist to sell his piece of art at a higher price range, he/ she has to
Read the passage and answer the question following it.
Roger Rosenblatt's book 'Black Fiction', manages to alter the approach taken in many previous studies by making an attempt to apply literary rather than socio-political criteria to subject Rosenblatt points out that criticism of Black writing has very often served as a pretext for an expounding on Black history. The recent work of Addison Gayle's passes judgment on the value of Black fiction by clear political standards, rating each work according to the ideas of Black identity, which it propounds. Though fiction results from political circumstances, its author reacts not in ideological ways to those circumstances and talking about novels and stories primarily as instruments of ideology circumvents much of the enterprise. Affinities and connections are revealed in the works of Black fiction in Rosenblatt's literary analysis; these affinities and connections have been overlooked and ignored by solely political studies.
The writing of acceptable criticism of Black fiction, however, presumes to give satisfactory answers to quite a few questions. The most important of all, is there a sufficient reason, apart from the racial identity of the authors, for the grouping together of Black authors? Secondly, what is the distinction of Black fiction from other modern fiction with which it is largely contemporaneous? In the work, Rosenblatt demonstrates that Black fiction is a distinct body of writing, which has an identifiable, coherent literary tradition. He highlights recurring concerns and designs, which are independent of chronology in Black fiction written over the past eighty years. These concerns and designs are thematic, and they come to form the central fact of the predominant white culture, where the Black characters in the novel are situated irrespective of whether they attempt to conform to that culture or they rebel against it.
Rosenblatt's work does leave certain aesthetic questions open. His thematic analysis allows considerable objectivity; he even clearly states that he does not intend to judge the merit of the various works yet his reluctance seems misplaced, especially since an attempt to appraise might have led to interesting results. For example, certain novels have an appearance of structural diffusion. Is this a defeat, or are the authors working out of, or attempting to forge, a different kind of aesthetic? Apart from this, the style of certain Black novels, like Jean Toomer's Cane, verges on expressionism or surrealism; does this technique provide a counterpoint to the prevalent theme that portrays the fate against which Black heroes are pitted, a theme usually conveyed by more naturalistic modes of expressions?
Irrespective of such omissions, what Rosenblatt talks about in his work makes for an astute and worthwhile study. His book very effectively surveys a variety of novels, highlighting certain fascinating and little-known works like James Weldon Johnson's Autobiography of an Ex-Coloured Man. Black Fiction is tightly constructed, and levelheaded and penetrating criticism is exemplified in its forthright and lucid style.
The primary concern of the author in the above passage is
Read the given passage carefully and attempt the questions that follow.
It is an old saying that knowledge is power. Education is an instrument that imparts knowledge and therefore, indirectly controls power. Therefore, ever since the dawn of our civilisation, persons in power have always tried to supervise or control education. It has been the handmaid of the ruling class. During the Christian era, the ecclesiastics controlled the institution of education and diffused among the people the gospel of the Bible and religious teachings. These gospels and teachings were no other than a philosophy for the maintenance of the existing society. It taught the poor man to be meek and to earn his bread with the sweat of his brow, while the priests and the landlords lived in luxury and fought duels for the slightest offence. During the Renaissance, education passed more from the clutches of the priest into the hands of the prince. In other words, it became more secular. Under the control of the monarch, education began to devise and preach the infallibility of its masters, the monarch or king. It also invented and supported fantastic theories like “The Divine right Theory” and that the king can do no wrong, etc. With the advent of the industrial revolution, education took a different turn and had to please the new masters. It now no longer remained the privilege of the baron class, but was thrown open to the new rich merchant class of the society. The philosophy which was in vogue during this period was that of “Laissez Faire” restricting the function of the state to a mere keeping of laws and order while on the other hand, in practice the law of the jungle prevailed in the form of free competition and the survival of the fittest.
Who controlled education during the Renaissance?
The question in this section is based on the passage. The question is to be answered on the basis of what is stated or implied in the passage.
Although the legal systems of England and the United States are superficially similar, they differ profoundly in their approaches to and uses of legal reasons: substantive reasons are more common than formal reasons in the United States, whereas in England the reverse is true. This distinction reflects a difference in the visions of law that prevails in the two countries. In England, the law has traditionally been viewed as a system of rules; the United States favours a vision of law as an outward expression of community’s sense of right and justice.
Substantive reasons, as applied to law, are based on moral, economic, political and other considerations. These reasons are found both “in the law” and “outside the law” so to speak. Substantive reasons inform the content of a large part of the law: constitutions, statutes, contracts, verdicts, and the like. Consider, for example, a statute providing or purposes were explicitly written into the statute was to ensure quiet and safety in the park. Now suppose that a veterans’ group mounts a World War II jeep (in running order but without a battery) as a war memorial on a concrete slab in the park, and charges are brought against its members. Most judges in the United States would find the defendants not guilty because what they did had no adverse effect on park’s quiet and safety.
Formal reasons are different in that they frequently prevent substantive reasons from coming into play, even when substantive reasons are explicitly incorporated into the law at hand. For example, when a document fails to comply with stipulated requirements, the court may render the document legally ineffective. A Will requiring written witness may be declared null and void and, therefore, unenforceable for the formal reason that the requirement was not observed. Once the legal rule–that a Will is invalid for lack of proper witnessing –has been clearly established, and the legality of the rule is not in question, application of that rule precludes from consideration substantive arguments in favour of Will’s validity or enforcement.
Legal scholars in England and the United States have long bemused themselves with extreme examples of formal and substantive reasoning. On the one hand, formal reasoning in England has led to wooden interpretations of statutes and an unwillingness to develop the common law through judicial activism. On the other hand, freewheeling substantive reasoning in the United States has resulted in statutory interpretations so liberal that the texts of some statutes have been ignored.
Which one of the following best describes the function of the last paragraph of the passage?
Read the following passage carefully and then answer the question that follows.
Surajendu Kumar’s study on the effect of the modernization of a Government Printing Press on Press maintenance work and workers is a solid contribution to a debate that encompasses two lively issues in the history and sociology of technology: technological determinism and social constructivism.
Kumar makes the point that the characteristics of a technology have a decisive influence on job skills and work organization. Put more strongly, technology can be a primary determinant of social and managerial organization. Kumar believes this possibility has been obscured by the recent sociological fashion, exemplified by Cravman’s analysis, that emphasizes the way machinery reflects social choices. For Cravman, the shape of a technological system is subordinate to the manager’s desire to wrest control of the labor process from the workers. Technological change is construed as the outcome of negotiations among interested parties who seek to incorporate their own interests into the design and configuration of the machinery. This position represents the new mainstream called social constructivism. The constructivists gain acceptance by misrepresenting technological determinism: technological determinists are supposed to believe, for example, that machinery imposes appropriate forms of order on society. The alternative to constructivism, in other words, is to view technology as existing outside society, capable of directly influencing skills and work organization. Kumar refutes the extremes of the constructivists by both theoretical and empirical arguments. Theoretically, he defines “technology” in terms of relationship between social and technical variables. Attempts to reduce the meaning of technology to cold, hard metal are bound to fail, for machinery is just scrap unless it is organized functionally and supported by appropriate systems of operation and maintenance. At the empirical level, Kumar shows how a change at the Printing Press from maintenance-intensive electromechanical devices to semi-electronic devices altered work tasks, skills, training opportunities, administration, and organization of workers. Some changes Kumar attributes to the particular way management and labor unions negotiated the introduction of the technology, whereas others are seen as arising from the capabilities and nature of the technology itself. Thus, Kumar helps answer the question: “When is social choice decisive and when are concrete characteristics of technology more important ?”
Which of the following statements about Kumar’s study of the Printing Press can be inferred from the information in the passage?
Read the given passages and answer the question with the help of the information provided in the passage.
A large number of branches of banks have been set-up in the villages. The main purpose of setting up these banks is to develop the habit of saving among the villagers and also to give loans to farmers for boosting production in one way or the other. So, banks had been concentrated in the bigger cities and Indian villagers had no faith in them.
The new banks also intend to re-channel bank credit -from the big industries to the small sectors. With the intention of promoting rural banking, regional rural banks were established. These aligned the local field with rural problems. These banks are not to replace the other credit-giving bodies but to supplement them.
The Steering Committee of the Regional Rural Banks considered some structural changes. First of all, they gave thought to the staffing spectrum, then to effective coordination among banks rural cooperatives and commercial and the possibility of bringing credit within the access to weaker sections. They wanted to recruit staff for the rural banks at lower salaries. But, this type of discrimination would have been unfruitful. So, it was given up.
A problem with regard to the rural banks is the creditworthiness of the poor. The Indian farmers are so poor that they cannot pay back their loans. The rural Indian surveys make it quite clear that practically rural farmers have no creditworthiness. Their socio-economic mobility is almost zero. That is why banks fear that their credit will never be paid back.
Another difficulty for the rural banks is that loans cannot be processed so easily. Processing loans also entails heavy expenditure. This was also going to affect their financial position. Still, the establishment of the rural banks was decided because the social advantages were more important than the commercial consideration.
Rural banks definitely encourage savings. No doubt the villagers do not have to pay income tax and they get many other concessions, yet their saving is not significant. Despite all the hurdles, the rural banking system will boost up the economy of villages and thereby the economy of the country.
Which of the following is one of the benefits of living in the village, as mentioned in the passage?
