Comprehension : Comprehension

Q 329 / 466

UPSC CSE Prelims 2014

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

Many nations now place their faith in capitalism and governments choose it as the strategy to create wealth for their people. The spectacular economic growth seen in Brazil, China and India after the liberalization of their economies is proof of its enormous potential and success. However, the global banking crisis and the economic recession have left many bewildered. The debates tend to focus on free market operations and forces, their efficiency and their ability for self-correction. Issues of justice, integrity and honesty are rarely elaborated to highlight the failure of the global banking system. The apologists of the system continue to justify the success of capitalism and argue that the recent crisis was a blip. Their arguments betray an ideological bias with the assumptions that an unregulated market is fair and competent, and that the exercise of private greed will be in the larger public interest. Few recognize the bidirectional relationship between capitalism and greed: that each reinforces the other Surely, a more honest conceptualization of the conflicts of interest among the rich and powerful players who have benefited from the system, their biases and ideology is needed; the focus on the wealth creation should also highlight the resultant gross inequity. ‘The exercise of private greed will be in the larger public interest’ from the passage:

  1. refers to the false ideology of capitalism.
  2. underlies the righteous claims of the free market.
  3. show the benevolent face of capitalism.
  4. ignores resultant gross inequity.

Which of the statements given above is/are correct?

EXPLANATION

Correct Option (3)

The correct option is (3) because statements 1 and 4 accurately reflect the author's perspective on the phrase.

  • Statement 1: The passage explicitly states that arguments asserting "the exercise of private greed will be in the larger public interest" "betray an ideological bias." This indicates that the author views it as a false ideology inherent in certain justifications of capitalism.
  • Statement 4: The passage directly follows the critique of this ideology by stating that "the focus on the wealth creation should also highlight the resultant gross inequity." This implies that the belief in private greed serving public interest overlooks or ignores the significant economic disparities it can create.

Incorrect Options:

  • Statement 2: The author characterizes the claims related to private greed serving public interest as stemming from an "ideological bias," not as righteous claims. Therefore, this statement misrepresents the author's critical stance.
  • Statement 3: The passage critically examines the assumptions of capitalism, highlighting its potential failures and the resulting gross inequity. It does not present a benevolent aspect of capitalism; instead, it exposes what the author perceives as its problematic underpinnings and consequences.