Read the following passage and answer the items that follow. Your answer to these items should be based on the passage only.

For achieving inclusive growth there is a critical need to rethink the role of the State. The early debate among economist about the size of the Government can be misleading. The need of the hour is to have an enabling Government. India is too large and complex a nation for the State to be able to deliver all that is needed. Asking the Government to produce all the essential goods, create all the necessary jobs, and keep a curb on the prices of all goods is to lead to a large cumbersome bureaucracy and widespread corruption.

The aim must be to stay with the objective of inclusive growth that was laid down by the founding fathers of the nation and also to take a more modern view of what the state can realistically deliver.

This is what leads to the idea of an enabling State, that is, a Government that does not try to directly deliver to the citizens everything that they need. Instead, it (1) creates an enabling ethos for the market so that individual enterprise can flourish and citizens can, for the most part, provide for the needs of one another, and (2) steps in to help those who do not manage to do well for themselves, for there will always be individuals, no matter what the system, who need support and help. Hence we need a Government that, when it comes to the market, sets effective, incentive-compatible rules and remains on the sidelines with minimal interference, and, at the same time, plays an important role in directly helping the poor by ensuring that they get basic education and health services and receive adequate nutrition and food.

1. According to the passage:

  1. The objective of inclusive growth was laid down by the founding fathers of the nation
  2. Need of the hour is to have an enabling Government
  3. The Government should engage in maximum interference in market processes
  4. There is a need to change the size of the Government

which of the statements given above are correct?

  • a) 1 and 2 only
  • b) 2 and 3 only
  • c) 1 and 4 only
  • d) 1, 2, 3 and 4

2. According to the passage, the strategy of inclusive growth can be effected by focussing on

  • a) Meeting all the needs of every citizen in the country
  • b) Increasing the regulations over the manufacturing sector
  • c) Controlling the distribution of manufactured goods
  • d) Delivery of the basic services to the deprived sections of the society

3. What constitutes an enabling Government

  1. A large bureaucracy
  2. Implementation of welfare programmes through representatives
  3. Creating an ethos that helps individual enterprise
  4. Providing resources to those who are underprivileged
  5. Offering direct help to the poor regarding basic services

Select the correct answer from the codes given below.

  • a) 1, 2 and 3 only
  • b) 4 and 5 only
  • c) 3, 4 and 5 only
  • d) 1, 2, 3, 4 and 5

4. Why is the state unable to deliver "all that is needed"?

  1. It does not have sufficient bureaucracy
  2. It does not promote inclusive growth

Select the correct answer from the codes given below

  • a) 1 only
  • b) 2 only
  • c) Both 1 and 2
  • d) Neither 1 nor 2

5. What is the essential message being conveyed by the author of the passage?

  • a) The objectives of inclusive growth laid down by the founding fathers of the nation should be remembered.
  • b) The Government needs to make available more schools and health services
  • c) The Government needs to establish markets and industries to meet the needs of the poor strata of the society
  • d) There is a need to rethink the role of the State in achieving inclusive growth.
These questions were asked in CSAT Prelims 2011 General Studies Paper II.

Answers

  1. a
  2. d
  3. c
  4. d
  5. d