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The Government Was Compelled to Open the Economy Due To... - Mathematics

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Question

In view of the passage given below. Choose the best option for question.

When talks come to how India has done for itself in 50 years of Independence, the world has nothing but praise for our success in remaining a democracy. On other fronts, the applause is less loud. In absolute terms, India has not done too badly, of course, life expectancy has increased. So has literacy. Industry, which was barely a fledging, has grown tremendously. And as far as agriculture is concerned, India has been transformed from a country perpetually on the edge of starvation into a success story held up for others to emulate. But these are competitive times when change is rapid, and to walk slowly when the rest of the world is running is almost as bad as standing still on walking backwards.

Compared with large chunks of what was then the developing 'world South Korea, Singapore, Malaysia, Thailand, Indonesia. China and what was till lately a separate Hong Kong-India has fared abysmally. It began with a far better infrastructure than most of these countries had. It suffered hardly or not at all during the Second World War. It had advantages like an English speaking elite, quality scientific manpower (including a Nobel laureate and others who could be ranked among the world's best) and excellent business acumen. Yet, today, when countries are ranked according to their global competitiveness. it is tiny Singapore that figures at the top. Hong Kong is an export powerhouse. So is Taiwan. If a symbol were needed of how far we have fallen back. note that while Korean Cielos are sold in India, no one in South Korea is rushing to buy an Indian car. The reasons list themselves. Topmost is economic isolationism.

The government discouraged imports and encouraged self-sufficiency. Whatever the aim was, the result was the creation of a totally inefficient industry that failed to keep pace with global trends and, therefore. became absolutely uncompetitive. only when the trade gates were opened a little did this become apparent. The years since then have been spent merely trying to catch up. That the government actually sheltered its industrialists from foreign competition is a little strange. For in all other respects, it operated under the conviction that businessmen were little more than crookS how were to be prevented from entering the most important areas of the economy, how we're to be hamstrung in as many ways as possible, how we're to be tolerated in the same way as an inexcusable wan. The high expropriation rates of taxation. the licensing Jaws, the reservation of whole swathes of the industry for the public sector, and the granting of monopolies to the public sector firms were the principal manifestations of this attitude. The government forgot that before wealth could be distributed, it had to be created.

The government forgot that it itself could not create, but only squander wealth. some of the manifestations of the old attitude have changed. Tax rates have fallen. Licensing has been a but abolished. And the gates of global trade have been opened wide. But most of these Changes were first by circumstances partly by the foreign exchange bankruptcy of 1991 ana the recognition that the government could no longer muster the funds of support the public sector, leave alone expand it. Whether the attitude of the government itself. or that of more than handful of ministers has changed, is open to question. In many other ways, however, the government has not changed one with. Business still has to negotiate a welter of negotiations. Transparency is still a long way off. And there is no exit policy. In defending the existing policy, politicians betray an inability to see beyond their noses. A no-exit policy for labour is equivalent to a no-entry policy for new business If one industry is not allowed to retrench labour, other industries will think a hundred times before employing new labour. In other way too, the government hurts industries.

Public sector monopolies like the department of telecommunications and Yidesh sanchar Nigam Ltd. make it possible for Indian business to operate only at a cost several times that of their counterparts abroad The infrastructure is in a shambles partly because it is unable to formulate a sufficiently remunerative policy for private business, and partly because it does not have the stomach to change market rates for services. After a burst of activity in the early nineties, the government iS dragging itS feet. At the rate, it is going. it will be another fifty years before the government realizes that a pro-business policy is the best pro-people policy By then, of course, the world would have moved even further ahead. 

The Government was compelled to open the economy due to...

Options

  • pressure from international market

  • pressure from domestic market

  • foreign change bankruptcy and pauotr or funds wilh the government

  • All of the above

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Solution

foreign change bankruptcy and pauotr or funds wilh the government

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Comprehension Passages (Entrance Exams)
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2014-2015 (May) Set 1

RELATED QUESTIONS

In 1954, a Bombay economist named A.D. Shroff began a forum of free Enterprise, whose ideas on economic development were somewhat at odds with those then influentially articulated by the Planning Commission of the Government of India. Shroff complained against the 'indifference, if not discouragement, with which the state treated entrepreneurs.

At the same time as Shroff, but independently of him, a journalist named Philip Spratt was writing a series of essays in favour of free enterprise. Spratt was a Cambridge communist who was sent by the party in the 1920s to the foment revolution in the subcontinent. detected in the act, he spent many years in an Indian jail. The books he read in the prison, and his marriage to an Indian woman afterward, inspired a steady move rightwards. By the 1950s, he was editing a pro-American weekly from Banglore, called mysIndia. there he inveighed against the economic policies of the government of India. These, he said, treated the entrepreneur 'as a criminal who has dared to use his brain independently of the state to create wealth and give employment’. The state’s chief planner, P.C. Mahalanobis had surrounded himself with Western leftists and Soviet academicians, who reinforced his belief in 'rigid control by the government overall activities’. The result, said Spratt, would be `the smothering of free enterprise, a famine of consumer goods, and the tying down of millions of workers to soul-deadening techniques.'

The voices of men like Spratt and Shroff were drowned in the chorus of popular support for a model of heavy industrialization funded and directed by the governments. The 1950s were certainly not propitious times for free marketers in India. But from time to time their ideas were revived. After the rupee was devalued in 1966, there were some moves towards freeing the trade regime and hopes that the licensing system would also be liberalized. However, after Indira Gandhi split the Congress Party in 1969, her government took its `left turn’, nationalizing a fresh range of industries and returning to economic autarky.

The ideological shift of Philip Spratt to the right was caused by:


Answer the question based on the following information. Indicate which of the statements given with that particular question consistent with the description of unreasonable man in the passage below.

Unreasonableness is a tendency to do socially permissible things at the wrong time. The unreasonable man is the sort of person who comes to confide in you when you are busy. He serenades his beloved when she is ill. He asks a man who has just lost money by paying a bill for a friend to pay a bill for him. He invites a friend to go for a ride just after the friend has finished a long car trip. He is eager to offer services wh1ch are not wanted, but which cannot be politely refused. If he is present at an arbitration, he stirs up dissension between the two parties, who were really anxious to agree. Such is the unreasonable man.

The unreasonable man tends to 


Read the given passage carefully and answer the questions given after the passage:

1. Often, we passionately pursue matters that in the future appear to be contradictory to our real intention or nature; and triumph is followed by remorse or regret. There are numerous examples of such a trend in the annals of history and contemporary life. 

2. Alfred Nobel was the son of Immanuel Nobel, an inventor who experimented extensively with explosives. Alfred too carried out research and experiments with a large range of chemicals; he found new methods to blast rocks for the construction of roads and bridges; he was engaged in the development of technology and different weapons; his life revolved around rockets and cannons and gun powder. The ingenuity of the scientist brought him enough wealth to buy the Bofors armament plant in Sweden.

3. Paradoxically, Nobel's life was a busy one yet he was lonely; and as he grew older, he began suffering from guilt of having invented the dynamite that was being used for destructive purposes. He set aside a huge part of his wealth to institute Nobel Prizes. Besides honouring men and women for their extraordinary achievements in physics, chemistry, medicine and literature, he wished to honour people who worked for the promotion of peace.

4. It's strange that the very man whose name was closely connected with explosives and inventions that helped in waging wars willed a large part of his earnings for the people who work for the promotion of peace and the benefit of mankind. The Nobel Peace Prize is intended for a person who has accomplished the best work for fraternity among nations, for abolition or reduction of war and for promotion of peace.

5. Another example that comes to one's mind is that of Albert Einstein. In 1939, fearing that the Nazis would win the race to build the world's first atomic bomb, Einstein urged President Franklin D Roosevelt to launch an American programme on nuclear research. The matter was considered and a project called the Manhattan Project was initiated. The project involved intense nuclear research the construction of the world's first atomic bomb. All this while, Einstein had the impression that the bomb would be used to protect the world from the Nazis. But in 1945, when Hiroshima was bombed to end World War II, Einstein was deeply grieved and he regretted his endorsement of the need for nuclear research.

6. He also stated that had he known that the Germans would be unsuccessful in making the atomic bomb, he would have probably never recommended making one. In 1947, Einstein began working for the cause of disarmament. But, Einstein's name still continues to be linked with the bomb. 
Man's fluctuating thoughts, changing opinions, varying opportunities keep the mind in a state of flux. Hence, the paradox of life: it's certain that nothing is certain in life.

Einstein had the impression that the Germans would __________.


The summer he turned 82, my father lost his stories. He was still vibrant, garrulous and energetic, and initially, none of us noticed that his anecdotes were getting repetitive, that he was forgetting names and places, that he was confusing times and references. A man of many narratives, we listened to his oft-repeated tales, sometimes with feigned patience and sometimes with visible impatience.

Till the day the stories stopped. The words dried out. The memories disappeared. The change happened so gradually that its final suddenness took us, his immediate family by complete surprise. And when the stories dried up, the energy seemed to drain away from his soul. This loss of energy was immediately and visibly apparent as this was one trait, above all others that characterized my father.

A child of Partition, Baba had left his native Barisal in present-day Bangladesh, on the eve of this momentous event in 1947, at the age of 14. My grandmother, widowed since the birth of my father, her youngest son, decided to leave their sprawling homestead with extensive farming lands and immigrate to the yet-to-be formed republic of India, along with her four other sons. Thus, family lore tells us, she liquidated some of her assets, packed her immediate family and necessary belongings onto a steamer and sailed into the teeming, seething city of Calcutta to set up a new life.

A seminal rupture in the subcontinent, Partition had wreaked havoc among countless families, uprooted and flung far and wide without any recourse. Baba often became that recourse – his contribution making a significant difference to families struggling to survive with some degree of dignity. It seemed his experience of early loss and deprivation had in a strangely converse way, endowed him with a generosity of soul that I have yet to encounter in another person.

It was thus shocking to see this extraordinary man with the mind, heart and soul of a Colossus shorn of his spirit.

In an effort to revive his flagging interest, I urged him to start writing down stories from his life. I bought him a notebook and with great flourish announced his assignment.

Stories were my particular stock in trade. I’d nurtured an early passion for storytelling and story writing into a teaching career focussed on literacy. I used specific strategies to build a writing habit in my students, centered on the belief that we all have stories to tell. As the children became confident and joyful storytellers, their acquisition of benchmarked literacy skills outstripped that of their peers.

Could I use these same strategies to draw the forgotten stories from Baba? Would these forgotten stories, in turn, help him reconstruct a sense of self?

[Extracted, with edits and revisions, from: “Her father’s memories were slipping away. She made him tell stories so that he could hold on to them”, by Ranu Bhattacharyya, Scroll, 2019.]

What does the word ‘garrulous’ as used in the passage mean?


Paragraph: At this stage of civilisation, when many nations are brought in to close and vital contact for good and evil, it is essential, as never before, that their gross ignorance of one another should be diminished, that they should begin to understand a little of one another's historical experience and resulting mentality. It is the fault of the English to expect the people of other countries to react as they do, to political and international situations. Our genuine goodwill and good intentions are often brought to nothing because we expect other people to be like us. This would be corrected if we knew the history, not necessarily in detail but in broad outlines, of the social and political conditions which have given to each nation its present character.

The character of a nation is the result of its...


Paragraph: Economists have long recognized a persistent and unfounded belief among the population which has come to be known as the anti-foreign bias. As a result of this bias, most people systematically underestimate the economic benefits of interactions with foreign nations. Some psychologists believe that this bias is rooted in a natural distrust of the "other," while others believe that a form of folk wisdom, seemingly in accord with common sense but nonetheless incorrect, explains the bias. This wisdom asserts that in any transaction there is a winner and a loser and any foreign nation that wants to engage in trade must be doing so because it seeks its own advantage. But nothing could be further from truth. 

No less an authority than Adam Smith, one of the fathers of the modern free market system, spoke glowingly of foreign trade in his influential treatise Wealth of Nations. "What is prudence in the conduct of every private family, can scarce be folly in a great kingdom," said Smith. His point is simple. A baker trades his bread to the cobbler for shoes and both men benefit from the trade because of the value of specialization. The same principle works for nations. Even more startling, a basic economic theorem, the Law of Comparative Advantage, states that mutually beneficial trade is possible even if one nation is less productive than the other.

Suppose a citizen of Country X can produce either 10 computers or five bushels of wheat and a citizen of Country Y can produce either three computers or two bushels of wheat. If one citizen from Country X switches from producing wheat to computers and three citizens from Country Y switch from producing computers to wheat, there is a net gain of one computer and one bushel of wheat.

The passage is primarily concerned with which of the following?


Read the following passage carefully and answer the question:

Antigone was one of the daughters of Oedipus, that tragic figure of male power who had been cursed by Gods for mistakenly his father and subsequently marrying his mother and assuming the throne of Thebes. After the death of Oedipus, civil war broke out and a battle was waged in front of the seventh gate of Thebes his two sons led opposing factions and at the height of the battle fought and killed each other. Oedipus brother Creon, uncle of Antigone, was now undisputed master of the city. Creon resolved to make an example of the brother who had fought against him, Polynices, by refusing the right of honourable burial. The penalty of death was promulgated against any who would defy this order.

Antigone was distraught. Polynices had been left unburied, unwept, a feast of flesh for keen eyed carrion birds. Antigone asks her sister Ismene, for it was a challenge to her royal blood. Now it is time to show whether or not you are worthy of your royal blood is be 'not my brother and yours? Whether you like it or not? I shall never desert him-never. But Simone responds, “How could you dare-when Creon has expressly forbidden it? Antigone, we are women, it is not for us to fight against men". With a touch of bitterness, Antigone releases her sister from the obligation to help her. but argues she cannot shrug off the burden. "if I die for it what happiness! Live,..if you will live, and defy the holiest of laws of heaven".

A carrion bird is a bird 


Read the given passages and answer the question with the help of information provided in the passage.

Rural development in India has witnessed several changes over the years in its emphasis, approaches, strategies and programmes. It has assumed a new dimension and perspectives as a consequence. Rural development can be richer and more meaningful only through the participation of the clienteles of development. Just as implementation is the touchstone for planning, people's participation is the centre-piece in rural development.

People's participation is one of the foremost pre-requisites of development process both from procedural and philosophical perspectives. For the development planners and administrators, it is important to solicit the participation of different groups of rural people, to make the plans participatory.

Rural development aims at improving rural people's livelihoods in an equitable and sustainable manner, both socially and environmentally, through better access to assets and services and control over productive capital. The basic objectives of Rural Development Programmes have been alleviation of poverty and unemployment through creation of basic social and economic infrastructure, provision of training to rural unemployed youth and providing employment to marginal farmers/labourers to discourage seasonal and permanent migration to urban areas. 

Rural development is the main pillar of our nation's development. In spite of rapid urbanisation, a large section of our population still lives in the villages. Secondly. rural India has Jagged behind in development because of many historical sectors. Though the 11th plan began in very behavioural circumstances with the economy has grown at the rate of 7.7% per year in the 10th plan period, there still existed a big challenge to correct the development imbalances and to accord due priority to development in rural areas.

Ministry of Rural Development is implementing a number of programmes aimed at sustainable holistic development in rural areas. The thrust of these programmes is on all-round economic and social transformation in rural areas, though a multi-pronged strategy aiming to reach out to the most disadvantaged sections of the society.

Although concrete efforts have been initiated by the Government of India through several plans and measures to alleviate poverty in rural India, there still remains much more to be done to bring prosperity in the lives of the people in rural areas. At present, technology dissemination is uneven and slow In rural areas.

As per the passage, the basic objective of Rural Development Programmes have been alleviation of poverty and through the creation of basic social and economic __________.


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 possibly the most appropriate title for the passage?


Read the given passages and answer the question with the help of the information provided in the passage.

Teaching, more even than most other professions, has been transformed during the last hundred years from a small, highly skilled profession concerned with a minority of the population, to a large and important branch of public service. The profession has a great and honourable tradition, extending from the dawn of history until recent times, but any teacher in the modern world who allows himself to be inspired by the ideals of his predecessors is likely to be made sharply aware that it is not his function to teach what he thinks, but to instill such beliefs and prejudices as are thought useful by his employers. 

The modern teacher is not able to follow the ideals of his predecessors because


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