Q7
(a) Explain how the structural transformation, in the economy, takes place with surplus labour as per Lewis theory of economic development. (20 marks) (b) What are the advantages and disadvantages of public-private partnership model for economic development? What are the key prerequisites for success of PPP model? Explain giving examples. (10+5=15 marks) (c) Discuss the issues (pros and cons) in the debate over import substitution and export promotion strategy for developing countries. Which strategy would you favour and why? Explain. (10+5=15 marks)
हिंदी में प्रश्न पढ़ें
(a) समझाइए कि लेविस के आर्थिक विकास के सिद्धांत के अनुसार आधिक्य श्रम द्वारा अर्थव्यवस्था में किस प्रकार संरचनात्मक रूपांतरण होता है। (20 अंक) (b) आर्थिक विकास में सार्वजनिक-निजी भागीदारी मॉडल के लाभ व हानियाँ क्या हैं? सार्वजनिक-निजी भागीदारी मॉडल की सफलता की मुख्य पूर्व आवश्यकताएँ क्या हैं? उदाहरण के साथ व्याख्या कीजिए। (10+5=15 अंक) (c) विकासशील देशों के लिए आयात प्रतिस्थापन तथा निर्यात संवर्धन की रणनीति के बाद-विवाद के मुद्दों (पक्ष-विपक्ष) की विवेचना कीजिए। आप किस रणनीति का समर्थन करेंगे और क्यों? समझाइए। (10+5=15 अंक)
Directive word: Explain
This question asks you to explain. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.
See our UPSC directive words guide for a full breakdown of how to respond to each command word.
How this answer will be evaluated
Approach
The directive 'explain' demands clear causal exposition across all three parts. Allocate approximately 40% of time/words to part (a) given its 20 marks, with 30% each to parts (b) and (c). Structure: brief introduction on structural transformation and development strategies; body with three clearly demarcated sections addressing each sub-part with theory first, then application; conclusion synthesizing which strategy combination suits India's current stage.
Key points expected
- Part (a): Lewis dual-sector model mechanics — unlimited supply of labour, capitalist sector expansion, wage determination at subsistence level, turning point when surplus labour exhausts
- Part (a): Structural transformation process — labour transfer from agriculture to industry, reinvestment of capitalist surplus, productivity divergence between sectors
- Part (b): PPP advantages (risk sharing, efficiency, infrastructure financing) and disadvantages (regulatory capture, high transaction costs, user fee burden); prerequisites like transparent bidding, independent regulator, viable revenue model
- Part (c): ISI arguments (infant industry protection, foreign exchange saving, domestic linkage effects) versus EP arguments (scale economies, competitive discipline, technology transfer); balanced conclusion favoring context-specific sequencing
- Part (b) examples: Delhi Airport (GMR), Mumbai Metro, or failed cases like Kakinada power project; Part (c) examples: India's pre-1991 ISI experience versus post-1991 export growth, East Asian tiger model
Evaluation rubric
| Dimension | Weight | Max marks | Excellent | Average | Poor |
|---|---|---|---|---|---|
| Concept correctness | 25% | 12.5 | Accurately explains Lewis turning point, capitalist surplus reinvestment, and wage floor determination; correctly identifies PPP as risk-sharing contractual arrangement rather than privatization; precisely distinguishes ISI (domestic market orientation) from EP (global market integration) with appropriate theoretical anchors | Describes Lewis model superficially without explaining the surplus transfer mechanism; treats PPP as generic private participation without contractual specificity; conflates ISI and EP or presents one-sided view | Misrepresents Lewis model as general labor migration theory; confuses PPP with complete privatization; fundamentally misunderstands trade strategy distinction or presents outdated autarky arguments |
| Diagram / model | 15% | 7.5 | Draws Lewis model diagram with correctly labeled axes (labor, marginal product), horizontal supply curve at subsistence wage, turning point where supply curve slopes upward; may include Ranis-Fei extension showing agricultural productivity condition | Sketchy diagram with missing labels or incorrect slope; describes diagram verbally without drawing; conflates Lewis diagram with standard labor market diagram | No diagram despite explicit model reference; fundamentally incorrect diagram showing rising supply curve throughout or confusing Lewis with Lorenz curve |
| Quantitative reasoning | 10% | 5 | Cites approximate figures for India's structural transformation (agriculture's GDP share decline from 55% to ~15%, employment share still ~40-45%); references specific PPP project values or export-GDP ratios to support argument | Vague references to 'significant decline' or 'large infrastructure investment' without numbers; mentions Lewis model requires labor surplus but no empirical magnitude | No quantitative element; makes factually incorrect claims about India's sectoral composition or trade performance |
| Indian / empirical examples | 25% | 12.5 | For (a): cites India's incomplete Lewis transition with disguised unemployment persisting; for (b): contrasts successful PPPs (Delhi Airport, Gujarat solar parks) with problematic ones (Dabhol power, stalled road projects); for (c): references India's 1991 shift from ISI to EP and current PLI scheme as nuanced combination | Generic examples without specificity; mentions 'infrastructure projects' or 'Make in India' without elaboration; only international examples (Korea, Brazil) without Indian application | No Indian examples; irrelevant examples from developed countries; factually incorrect project attributions |
| Policy implication | 25% | 12.5 | Derives specific policy lessons: for Lewis transition — need for manufacturing job creation, skill development, agricultural productivity growth; for PPP — institutional prerequisites like 3P India, dispute resolution mechanisms; for trade strategy — argues for selective ISI in strategic sectors with EP in manufacturing, citing Atmanirbhar Bharat with export orientation | Generic policy conclusions ('government should invest more'); no connection between theoretical analysis and contemporary policy; contradictory recommendations across parts | No policy implications; purely descriptive answer; recommends discarding all ISI or complete liberalization without nuance |
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