Question

Periodic Assessment -3. M m-50

Subject - English

Class -9

Read the passage and anwer the following questions.

Many of the underdeveloped countries will promote the growth of their economies in one way or the

other, no matter whether they receive substantial outside aid in the process or not. The character of

that development, however, is likely to be strongly influenced by the types of and amounts of aid

available. The outcome is much more likely to be favourable, from the standpoint of the objectives for

successful development set up previously, if there is substantial international aid than if there is not.

By substantial aid I mean not only large amounts of technical assistance but also of capital. Initially, the

capacity of an underdeveloped country to use capital productively may be surprisingly small, limited by

lack of organisation, trained personnel and other social obstacles. At this stage technical assistance is

the main need from outside, with comparatively small amounts of capital, much of which may have to

be in the form of grants for non-self liquidating projects, in education, health, access to roads in rural

areas, and the like, if, at this stage, substantial capital is available from outside to supplement what can

be formed internally (and to simulate internal capital formation, for it does that too) the rate of

economic growth can be consistently increased, and the strains and frustrations and political risks of the

development are likely to be considerably less.

It is possible for underdeveloped economies to modernise themselves with very little capital from

outside. Japan imports of capital were small though some of it came at crucial times. The contribution of

foreign direct investments to the advancement of technical know-how also was greater than would be

indicated merely by the size of the investment. The Soviet Union industrialised its economy with

practically no aid from foreign investment capital except for the foreign owned installations confiscated

after the revolution, though it imported machinery in the early days on short term or immediate term

credits and hired services of foreign experts.

Both Japan and Russia achieved their development in an authoritarian political and social framework.

The outcome in both cases from standpoint of the peace in the world and democratic ideals, was highly

unfavourable.

In the absence of outside aid, the only way to accumulate capital, is to increase production without

taking much of the benefit in more consumption or even while pushing consumption standards down.​

Answer 1

Answer:

in the absence of outside aid