UPSC Prelims 2020 CSAT Paper II · Q46 of 80 Comprehension medium

Passage

Passage-5 Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives. Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country's future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.

With reference to the above passage, the following assumptions have been made : 1. India's economy needs to be greatly integrated with global economy so as to create large number of jobs and to sustain its growth momentum. 2. Economic liberalization would cause large economic growth which would reduce poverty and create sufficient employment in the long run. Which of the above assumptions is/are valid?

  1. (a) 1 only
  2. (b) 2 only
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2 ✓ UPSC's answer

Why the answer is (d)

• The passage states that economic liberalization was driven by government economic problems, not people's priorities or long-term development objectives, implying a disconnect between policy and social needs.

• It explicitly notes that 'jobless growth, persistent poverty and rising inequality' have mounted as problems since liberalization began, directly contradicting the idea that it would reduce poverty or create sufficient employment.

• Assumption 1 is invalid because the passage does not suggest that greater integration with the global economy is the solution; rather, it highlights that the current liberalization (which implies integration) has failed to address job creation and poverty.

• Assumption 2 is invalid because the text argues that the limitations in the conception and design of liberalization have been validated by experience, showing it did not lead to the expected reduction in poverty or employment.

• Since the passage presents evidence that liberalization has led to jobless growth and persistent poverty, both assumptions that it would solve these issues or that further integration is the required fix are not supported by the text.

Why the other options are wrong

(a) 1 only
Assumption 1 is invalid because the passage does not identify global integration as the solution to job creation, but rather critiques the existing liberalization for failing to address employment and poverty.
(b) 2 only
Assumption 2 is invalid because the passage explicitly states that persistent poverty and jobless growth have increased since liberalization, contradicting the claim that it would reduce poverty and create employment.
(c) Both 1 and 2
Both assumptions are invalid because the passage highlights the failures of economic liberalization in addressing poverty, inequality, and job creation, rather than supporting the view that it or further integration will solve these issues.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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