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What Would Be the Closest Reason Why Wto Was Not Formed in 1970'S? - Mathematics

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Question

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.

What would be the closest reason why WTO was not formed in 1970's?

Options

  • The Tokyo Round negotiations was an attempt at constitutional reform.

  • The US government did not like it.

  • Lawyers did not work for the dispute settlement system.

  • Important players did not find it in their best interest to do so.

MCQ
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Solution

Important players did not find it in their best interest to do so.

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Comprehension Passages (Entrance Exams)
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2016-2017 (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:


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. 

One of the factors of the government's projectionist policy was ...


Direction: Answer the question, based on the following information. Indicate which of the statements given with that particular question, is consistent with the information given in the passage below.

A Holistic Viewpoint

It is now recognised by modern science that the universe at the subatomic level does not have solid material objects, but consists of only wavelike patterns which represent probabilities of interconnections between other interconnections, all of which together constitute an inseparable web of inter-relationships constituting the entire universe. Fritj of Capra, therefore, views the universe not as “an assemblage of independent parts” but as “a dynamic web of inter-related events” in which each part of the web determines the structure of the whole. Geoffrey Chew views such inter-penetrating and interdependent relationships in the universe in terms of a “bootstrap” theory which implies that all forces in the universe are inseparably linked together, every part affects every other part, and the whole world is held together so to say, by bootstraps. David Bohm refers to a holographic concept which implies not only that every part is connected with every other part within the whole but also that, in a sense, each part contains the whole. This, according to David Bohm, recognises the “Undivided wholeness” of the entire universe instead of the classical idea of the analysability of the world into separately and independently existent parts. Choose the appropriate option


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.]

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According to the author of 'Mentality' of a nation is mainly product of its ...


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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.

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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".

Why did Ismene not support Antigone? Ismene


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.

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It can be inferred from the passage that English judges would like to find the veterans’ group discussed in the second paragraph guilty of violating the statute because 


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