The passage is given below carefully and answer the following questions :
The old system of social welfare was systematically destroyed. The withdrawal of government subsidies pushed large sections of the people into poverty. The middle classes were pushed to the periphery of society..... Besides, privatization led to more disparities.
(i) What is meant by government subsidy?
(ii) How did the withdrawal of government subsidy lead the people into poverty?
(iii) Do you support or oppose the policy of privatization? Support your answer with any two suitable arguments.
OR
Read the passage given below carefully and answer the following questions :
The non-aligned countries were more than merely mediators during the Cold War. The challenge for most of the non-aligned countries — a majority of them were categorized as the Least Developed Countries (LDCs) — was to be more developed economically and to lift their people out of poverty. Economic development was also vital for the independence of the new countries. Without sustained development, a country could not be truly free.
(i) Name any two founder countries of the Non-Aligned Movement (NAM) during the Cold War period.
(ii) Suggest any two methods to lift the people of the Least Developed Countries out of poverty.
(iii) Explain the concept of ‘sustained development’.
1. Government subsidy is the economic help provided by the government to certain consumers such as providing the good at a lower rate, reduced rate of interest on loans and lower rent of a house, as compared with the market rate.
2. The withdrawal of government subsidy lead the people into poverty in the following manner:
i. The people had to spend more on the purchase of goods and services.
ii. The farmers had to pay more to purchase agriculture equipment such as seeds, fertilizers, machines, etc.
1. I support the concept of privatisation due to the following reasons:
i. If a firm is owned privately, there is a greater profit incentive to increase efficiency.
ii. There is no interference by the government and the firm is not backed by any politics.
iii. there is an increase in share ownership.
iv. It leads to a positive increase in promoting a healthy form of competition.
v. It is a method to finance long term investments
OR
1. The two founders' countries of NAM during the cold war period are India and Egypt.
2. The two methods to lift the people of the Least Developed Countries out of poverty are:
i. Providing cheap and effective technology to LDCs,
ii. The developed countries should assist the LDCs to develop a sound industrial base.
iii. The increase in education and employment opportunities in LDCs.
1. Sustainable development refers to developing an environment that can fulfill the needs of the present generation without comprising the needs of future generations.
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