UPSC Prelims 2016 CSAT Paper II · Q41 of 79 Comprehension medium

Passage

Directions for the following 8 (eight) items : Read the following eight passages and answer the item that follows each passage. Your answers to these items should be based on the passages only. Passage-1 By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity and economic growth. Crony capitalism, where rich and the influential are alleged to have received land and natural resources and various licences in return for payoffs to venal politicians, is now a major issue to be tackled. One of the greatest dangers to growth of developing economies like India is the middle-income trap where crony capitalism creates oligarchies that slow down the growth.

Which among the following is the most logical corollary to the above passage ?

  1. (a) Launching more welfare schemes and allocating more finances for the current schemes are urgently needed
  2. (b) Efforts should be made to push up economic growth by other means and provide licences to the poor
  3. (c) Greater transparency in the functioning of the government and promoting the financial inclusion are needed at present ✓ UPSC's answer
  4. (d) We should concentrate more on developing manufacturing sector than service sector

Why the answer is (c)

• The passage identifies 'crony capitalism' as the primary threat to economic growth, defining it by the lack of transparency and competition where influential figures gain resources through payoffs to politicians.

• It explicitly states that crony capitalism kills transparency and competition, which are essential for free enterprise and opportunity.

• Therefore, the logical corollary must address the root causes identified: the absence of transparency and the exclusion of the general public (opportunity) from economic benefits.

• Option (c) directly proposes 'greater transparency in the functioning of the government' to counter the venal politicians and 'promoting financial inclusion' to restore opportunity and competition for the broader population.

• This aligns perfectly with the passage's argument that restoring transparency and competition is necessary to avoid the middle-income trap and oligarchies.

Why the other options are wrong

(a) Launching more welfare schemes and allocating more finances for the current schemes are…
The passage does not mention welfare schemes or financial allocation as solutions to crony capitalism or the middle-income trap.
(b) Efforts should be made to push up economic growth by other means and provide licences to…
Providing licences to the poor is not a logical solution to the systemic issue of crony capitalism and does not address the need for transparency and competition.
(d) We should concentrate more on developing manufacturing sector than service sector
The passage does not discuss the balance between the manufacturing and service sectors, making this option irrelevant to the argument about crony capitalism.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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