Passage

Many nations now place their faith in capitalism and governments choose it as the strategy to create wealth for their people. The spectacular economic growth seen in Brazil, China and India after the liberalisation of their economies is proof of its enormous potential and success. However, the global banking crisis and the economic recession have left many bewildered. The debates tend to focus on free market operations and forces, their efficiency and their ability for self correction. Issues of justice, integrity and honesty are rarely elaborated to highlight the failure of the global banking system. The apologists of the system continue to justify the success of capitalism and argue that the recent crisis was a blip. Their arguments betray an ideological bias with the assumptions that an unregulated market is fair and competent, and that the exercise of private greed will be in the larger public interest. Few recognize the bidirectional relationship between capitalism and greed; that each reinforces the other. Surely, a more honest conceptualisation of the conflicts of interest among the rich and powerful players who have benefited from the system, their biases and ideology is needed; the focus on the wealth creation should also highlight the resultant gross inequity.

“The exercise of private greed will be in the larger public interest” from the passage 1. refers to the false ideology of capitalism. 2. underlies the righteous claims of the free market. 3. shows the benevolent face of capitalism. 4. ignores resultant gross inequity. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 and 3
(c) 1 and 4 ✓ UPSC's answer
(d) 4 only

Why the answer is (c)

• The passage explicitly states that the arguments of capitalism's apologists 'betray an ideological bias' with the assumption that 'the exercise of private greed will be in the larger public interest.'

• This directly supports statement 1, identifying the phrase as a component of the 'false ideology' or biased assumption attributed to the system's defenders.

• The passage further argues that the focus on wealth creation 'should also highlight the resultant gross inequity,' implying that the current justification (including the greed assumption) fails to address or ignores this inequity.

• Therefore, statement 4 is correct because the reliance on the 'greed equals public interest' argument overlooks the negative social consequences (inequity) mentioned in the text.

• Since both statement 1 and statement 4 are supported by the text's critique of the apologists' arguments, option (c) is the correct answer.

Why the other options are wrong

(a) 1 only: Statement 4 is also correct because the passage argues that the focus on wealth creation via this ideology fails to highlight the resultant gross inequity.
(b) 2 and 3: Statement 2 is incorrect because the passage describes the arguments as betraying an 'ideological bias' rather than being 'righteous,' and statement 3 is incorrect because the passage associates greed with conflict and inequity, not benevolence.
(d) 4 only: Statement 1 is also correct because the passage explicitly links the assumption that private greed serves the public interest to the 'ideological bias' of the system's apologists.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2014, held on 24 August 2014. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.