UPSC Prelims 2017 CSAT Paper II · Q5 of 79 Comprehension medium

Passage

Passage—5 In the last two decades, the world's gross domestic product (GDP) has increased by 50 per cent, whereas inclusive wealth has increased by a mere 6 per cent. In recent decades, GDP-driven economic performance has only harmed inclusive wealth like human capital; and natural capital like forests, land and water. While the world's human capital which stands at 57 per cent of total inclusive wealth grew by only 8 per cent, the natural capital which is 23 per cent of total inclusive wealth declined by 30 per cent worldwide in the last two decades.

Which of the following is the most crucial inference from the above passage?

  1. (a) More emphasis should be laid on the development of natural capital.
  2. (b) The growth driven by GDP only is neither desirable nor sustainable. ✓ UPSC's answer
  3. (c) The economic performance of the countries of the world is not satisfactory.
  4. (d) The world needs more human capital under the present circumstances.

Why the answer is (b)

• The passage states that while global GDP increased by 50% in the last two decades, inclusive wealth grew by only 6%.

• It explicitly mentions that GDP-driven economic performance has harmed inclusive wealth, specifically reducing natural capital by 30% and limiting human capital growth to 8%.

• The core argument is that focusing solely on GDP growth leads to the depletion of essential assets like natural and human capital.

• Therefore, the most crucial inference is that an economic model driven exclusively by GDP is flawed because it degrades the broader wealth base.

• This directly supports the conclusion that GDP-only growth is neither desirable (as it harms wealth) nor sustainable (as it depletes natural capital).

Why the other options are wrong

(a) More emphasis should be laid on the development of natural capital.
The passage highlights the decline of natural capital but does not explicitly argue that it requires *more* emphasis than other forms of capital; rather, it critiques the GDP model that causes the decline.
(c) The economic performance of the countries of the world is not satisfactory.
The passage notes that GDP increased by 50%, indicating strong economic performance in terms of output, even though inclusive wealth did not grow proportionally; thus, the performance is not described as 'unsatisfactory' in general terms.
(d) The world needs more human capital under the present circumstances.
While human capital growth was low (8%), the passage does not infer that the world specifically needs *more* human capital as the primary solution, but rather that the GDP-driven approach is failing to maintain overall inclusive wealth.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2017, held on 18 June 2017. 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.

Practise this paper free