Comprehension For SBI PO Set

Comprehension For SBI PO Set – 34

China’s rising power is based on its

remarkable economic success. Shanghai’s overall economy is currently growing at around 13% per year, thus doubling in size every five or six years. Everywhere there are start-ups, innovations, and young entrepreneurs hungry for profits. In a series of high level meetings between Chinese and African officials, the advice that the African leaders received from the Chinese was sound, and more practical than they typically get from the World Bank. Chinese officials stress the crucial role of public investments, especially in agriculture and infrastructure, to lay the basis for private sector-led growth. In a hungry and poor rural economy, as China was in the 1970s and as most of Africa is today, a key starting point is to raise farm productivity. Farmers need the benefits of fertilizer, irrigation and high-yield seeds, all of which were a core part of China’s economical take off. Two other equally critical investments are also needed : roads and electricity, without which there cannot be a modern economy. Farmers might be able to increase their output, but it won’t be able to reach the cities, and the cities won’t be able to provide the countryside with inputs. The government has taken pains to ensure that the electricity grids and transportation networks reach every village in China. China is prepared to help Africa in substantial ways in agriculture, roads, power, health and education. And that is not an empty boast. Chinese leaders are prepared to share new high-yield rice varieties, with their African counterparts and, all over Africa, China is financing and constructing basic infrastructure.

This illustrates what is wrong with the World Bank. The World Bank has often forgotten the most basic lessons of development, preferring to lecture the poor and force them to privatise basic infrastructure, which is untenable, rather than to help the poor to invest in infrastructure and other crucial sectors. The Banks’s failure began in the early 1980s when under the ideological sway of

them American President and British Prime

Minister it tried to get Africa and other poor

regions to cut back or close down government investments and services. For 25 years, the bank tries to get governments out of agriculture, leaving impoverished peasants to fend for themselves. The result has been a disaster in Africa, with farm productivity stagnant for decades. The bank also pushed for privatization of national health systems, water utilities, and road and power networks, and has grossly underfinanced these critical sectors.

This extreme free-market ideology, also called “structural adjustment”, went against the practical lessons of development successes in China and the rest or Asia. Practical development strategy recognises that public investments- in agriculture,

health, education, and infrastructure- are

necessary complements to private investments. The World Bank has instead wrongly seen such vital public investments as an enemy of private sector development. Whenever the banks’ ideology failed, it has blamed the poor for corruption, mismanagement, or lack of initiative.

Instead of focusing its attention on helping the poorest countries to improve their infrastructure, there has been a crusade against corruption. The good news is that African governments are prepared to help Africa in substantial ways in agriculture, roads, power, health and education.

And that is not an empty boast. Chinese leaders are prepared to share new high yield rice varieties, with their African counterparts and, all over Africa, China is financing and constructing basic infrastructure. getting the massage on how to spur economic

growth and are getting crucial help from China and other partners that are less wedded to extreme free-market ideology than the world Bank. They have declared their intention to invest in infrastructure, agriculture modernistation, public, health, and education. It is clear the Bank can

regain its relevance only if it becomes practical once again, by returning its focus to financing public investments in priority sectors. If that happens, the Bank can still do justice to the bold vision of a world of shared prosperity that prompted its creation after World War II.

1. The author’s main objective in writing the

passage is to

(a) make a case for the closure of the World

Bank since it promotes US interests over

those of other countries.

(b) illustrate how China can play a more

concrete role in Africa.

crucial role in China’s development but

neglecting Africa.

(d) Recommend that China adopt the

guidelines of the World Bank to sustain

growth.

(e) Use China’s Success as an example of

the changes required in World ideology.

2. What advice have African leaders received

from their Chinese counterparts?

(A) Focus primarily on innovation, startups

and urban development.

(B) To ensure all citizens benefit from

economic development, investment in

crucial sectors should come from the

government, not the private sector.

government investment to stimulate

economic growth.

(a) None

(b) Only (C)

(d) both (A) & (B)

(e) None of these

3. What effect has the World Bank policy had

on African nations?

(a) The African government has restricted

private sector investment in agriculture.

(b) Africa has focused more on health and

education rather than on agriculture.

is not as productive as it could be.

(d) US and Britain have volunteered

substantial aid to Africa as Africa has

complied with World Bank ideology.

(e) None of these

4. What is the difference in the Chinese and

World Bank approach to development?

(a) Unlike the World Bank, China favours

the public sector and restricts private

sector participation in crucial sectors.

(b) Contrary to China’s strategy of

dependence on the private sector, the

World Bank pressurises governments to

take the lead in investing in agriculture.

agriculture, China’s priority has been

rooting out corruption so that investment

infrastructure is utilised appropriately.

(d) The Chinese government has retained

control over essential services like

transport while the World Bank favours

private sector involvement.

(e) None of these

5. What is China’s view on the development

of the transportation and power networks?

(a) Development in these sectors is not as

important as investing in agriculture.

(b) Resources need to be diverted from the

rural to the urban areas to meet the

needs of the growing population in cities.

responsible for developing these

services so all citizens have access to

them.

(d) It is more important to develop and

maintain transportation networks and

power grids in rural areas.

(e) None of these

6. Which of the following cannot be said about structural adjustment?

(a) It is the World Bank’s free market

ideology adapted by Asian countries.

(b) Under this strategy public sector

investment in priority sectors is

discouraged.

in Africa.

(d) With this strategy there has been a lack

of adequate investment in critical

sectors.

(e) It is an ideology advocated by the World

Bank which needs to be modified to

facilitate economic growth.

7. Which of the following is NOT true in the

context of the passage?

(A) China’s involvement in Africa so far has

been restricted to advising its leaders.

(B) The World Bank was created by the US

and Britain for the sole purpose of

furthering their interests.

(a) None

(b) Only B

(d) Both A and B

(e) None of these

8. What has/have been the outcome/s of

Shanghai’s economy prospering?

(A) The World Bank has changed its

development strategy.

(B) China’s importance globally has been

enhanced.

promote development of cities.

(a) Only B

(b) Both A and B

(d)All A, B and C

(e) None of these

9. Why is the author optimistic about Africa’s

future?

(a) The World Bank has committed itself

to invest huge sums in Africa’s

development.

(b) Africa has decided to adopt a structural

adjustment ideology which has benefited

many nations.

China’s strategy for economic growth.

(d) China has urged the World Bank to

waive the interest on its loans to Africa.

(e) None of these

10. What advice has the author given the World Bank?

(a) Support China’s involvement in

developing Africa

(b) Reduce the influence of the US and

Britain in its functioning

structural adjustment

(d) Change its ideology to one encouraging

both public and private sector investment

in basic infrastructure

(e) Focus on fighting corruption rather than

interfering in the governance of

developing countries.

Directions (Q. 10-13): Choose the word which is most nearly the SAME in meaning as the world printed in bold as used in the passage.

11. SWAY

(a) Fluctuate

(b) influence

(d) dependence

(e) unsteady

12. CORE

(a) Centre

(b) heart

(d) intermediate

(e) essential

13. STRESS

(a) highlight

(b) strain

(d) dependence

(e) unsteady

Directions (Q. 14-15): Choose the word which is most OPPOSITE in meaning of the word printed in bold as used in the passage.

14. UNTENABLE

(a) viable

(b) unsound

(d) superior

(e) attractive

15. EMPTY

(a) full

(b) objective

(d) occupied

(e) intelligent

Answer key:

1. (e) 2. (e) 3. (c) 4. (e) 5. (e) 6. (a) 7. (d) 8. (e) 9. (c) 10. (d) 11. (b) 12. (e) 13. (a) 14. (a) 15. (c)

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Comprehension For SBI PO Set – 34