General Comprehension (UPSC) (Part-II)

Most champions of democracy have been rather reticent in suggesting that democracy would itself promote development and enhancement of social welfare-they have tended to see them as good but distinctly separate and largely independent goals. The detractors of democracy, on the other hand, seemed to have been quite willing to express their diagnosis of what they see as serious tensions between democracy and development.

The theorists of the practical split "Make up your mind: do you want democracy, or instead, do you want development?" often came, at least to start with, from East Asian countries, and their voice grew in influence as several of these countries were immensely successful- through the 1970s and 1980s and even later in promoting economic growth without pursuing democracy.

To deal with these issues we have to pay particular attention to both the content of what can be called development and to the interpretation of democracy (in particular to the respective roles of voting and of public reasoning). The assessment of development cannot be divorced from the lives that people can lead and the real freedom that they enjoy.

Development can scarcely be seen merely in terms of enhancement of inanimate objects of convenience, such as a rise in the GNP (or in personal incomes), or industrialization important as they may be as means to the real ends. Their value must depend on what they do to the lives and freedom of the people involved, which must be central to the idea of development.

If development is understood in a broader way, with a focus on human lives, then it becomes immediately clear that the relation between development and democracy has to be seen partly in terms of their constitutive connection, rather than only through their external links. Even though the question has often been asked whether political freedom is "conducive to development".

We must not miss the crucial recognition that political liberties and democratic rights are among the "constituent components" of development. Their relevance for development does not have to be established indirectly through their contribution to be growth of GNP.

1. It is desirable that the impact of Foreign Direct Investment should be pro-competitive.

2. The entry of foreign investors invariably leads to the inflated prices in domestic markets.

Which of the statements given above is/are correct?

The need for Competition Law becomes more evident when foreign direct investment (FDI) is liberalized. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation acquiring a domestic enterprise or establishing a joint venture with one.

By making such an acquisition the foreign investor may substantially lessen competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberalization of FDI. Subsequently, the parent companies overseas merge.

With the affiliates no longer remaining independent, competition in the host country may be virtually eliminated and the prices of the products may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not.

This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.

1. Multinational companies get accustomed to domestic laws.

2. Foreign companies establish joint ventures with domestic companies.

3. Affiliates in a particular market/sector lose their independence as their parent companies overseas merge.

4. Foreign companies lower the cost of their products as compared to that of products of domestic companies.

Which of the statements given above are correct?

The need for Competition Law becomes more evident when foreign direct investment (FDI) is liberalized. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation acquiring a domestic enterprise or establishing a joint venture with one.

By making such an acquisition the foreign investor may substantially lessen competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberalization of FDI. Subsequently, the parent companies overseas merge.

With the affiliates no longer remaining independent, competition in the host country may be virtually eliminated and the prices of the products may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not.

This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.

The need for Competition Law becomes more evident when foreign direct investment (FDI) is liberalized. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation acquiring a domestic enterprise or establishing a joint venture with one.

By making such an acquisition the foreign investor may substantially lessen competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberalization of FDI. Subsequently, the parent companies overseas merge.

With the affiliates no longer remaining independent, competition in the host country may be virtually eliminated and the prices of the products may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not.

This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.

1. empowerment.

2. increased agricultural productivity.

3. safeguard against exploitative markets.

4. surplus production of agricultural commodities.

Select the correct answer using the codes given below:

The poor especially in market economies, need the strength that collectivities offer for creating more economic, social and political space for themselves, for enhancing their socio-economic well-being and voice, and as a protection against free market individualism.

It has been argued that a group approach to farming, especially in the form of bottom up agricultural production collectivities, offers substantial scope for poverty alleviation and empowering the poor as well as enhancing agricultural productivity. To realize this potential, however, the groups would need to be voluntary in nature, small in size, participative in decision making and equitable in work sharing and benefit distribution.

There are many notable examples of such collectivities to be found in varied contexts, such as in the transition economies. All of them bear witness to the possibility of successful cooperation under given conditions. And although the gender impact of the family cooperatives in the transition economies are uncertain, the Indian examples of women-only groups farming offer considerable potential for benefiting women.

The poor especially in market economies, need the strength that collectivities offer for creating more economic, social and political space for themselves, for enhancing their socio-economic well-being and voice, and as a protection against free market individualism.

It has been argued that a group approach to farming, especially in the form of bottom up agricultural production collectivities, offers substantial scope for poverty alleviation and empowering the poor as well as enhancing agricultural productivity. To realize this potential, however, the groups would need to be voluntary in nature, small in size, participative in decision making and equitable in work sharing and benefit distribution.

There are many notable examples of such collectivities to be found in varied contexts, such as in the transition economies. All of them bear witness to the possibility of successful cooperation under given conditions. And although the gender impact of the family cooperatives in the transition economies are uncertain, the Indian examples of women-only groups farming offer considerable potential for benefiting women.

1. It is imperative for transition economies to have agricultural collectivities.

2. Agricultural productivity can be increased by group approach to farming.

With reference to the above passage, which of these assumptions is/are valid?

The poor especially in market economies, need the strength that collectivities offer for creating more economic, social and political space for themselves, for enhancing their socio-economic well-being and voice, and as a protection against free market individualism.

It has been argued that a group approach to farming, especially in the form of bottom up agricultural production collectivities, offers substantial scope for poverty alleviation and empowering the poor as well as enhancing agricultural productivity. To realize this potential, however, the groups would need to be voluntary in nature, small in size, participative in decision making and equitable in work sharing and benefit distribution.

There are many notable examples of such collectivities to be found in varied contexts, such as in the transition economies. All of them bear witness to the possibility of successful cooperation under given conditions. And although the gender impact of the family cooperatives in the transition economies are uncertain, the Indian examples of women-only groups farming offer considerable potential for benefiting women.

In a typical Western liberal context, deepening of democracy invariably leads to consolidation of 'liberal values'. In the Indian context, democratization is translated into greater involvement of people not as 'individuals' which is a staple to liberal discourse, but as communities or groups. Individuals are getting involved in the public sphere not as 'atomized' individuals but as members of primordial communities drawn on religious or caste identity.

Community-identity seems to be the governing force. It is not therefore surprising that the so-called peripheral groups continue to maintain their identities with reference to the social groups (caste, religion or sect) to which they belong while getting involved in the political processes despite the fact that their political goals remain more or less identical.

By helping to articulate the political voice of the marginalized, democracy in India has led to 'a loosening of social strictures' and empowered the peripherals to be confident of their ability to improve the socio-economic conditions in which they are placed. This is a significant political process that had led to a silent revolution through a meaningful transfer of power from the upper caste elites to various subaltern groups within the democratic framework of public governance.

In a typical Western liberal context, deepening of democracy invariably leads to consolidation of 'liberal values'. In the Indian context, democratization is translated into greater involvement of people not as 'individuals' which is a staple to liberal discourse, but as communities or groups. Individuals are getting involved in the public sphere not as 'atomized' individuals but as members of primordial communities drawn on religious or caste identity.

Community-identity seems to be the governing force. It is not therefore surprising that the so-called peripheral groups continue to maintain their identities with reference to the social groups (caste, religion or sect) to which they belong while getting involved in the political processes despite the fact that their political goals remain more or less identical.

By helping to articulate the political voice of the marginalized, democracy in India has led to 'a loosening of social strictures' and empowered the peripherals to be confident of their ability to improve the socio-economic conditions in which they are placed. This is a significant political process that had led to a silent revolution through a meaningful transfer of power from the upper caste elites to various subaltern groups within the democratic framework of public governance.

In a typical Western liberal context, deepening of democracy invariably leads to consolidation of 'liberal values'. In the Indian context, democratization is translated into greater involvement of people not as 'individuals' which is a staple to liberal discourse, but as communities or groups. Individuals are getting involved in the public sphere not as 'atomized' individuals but as members of primordial communities drawn on religious or caste identity.

Community-identity seems to be the governing force. It is not therefore surprising that the so-called peripheral groups continue to maintain their identities with reference to the social groups (caste, religion or sect) to which they belong while getting involved in the political processes despite the fact that their political goals remain more or less identical.

By helping to articulate the political voice of the marginalized, democracy in India has led to 'a loosening of social strictures' and empowered the peripherals to be confident of their ability to improve the socio-economic conditions in which they are placed. This is a significant political process that had led to a silent revolution through a meaningful transfer of power from the upper caste elites to various subaltern groups within the democratic framework of public governance.