We are well into the 21st century yet half the
world’s population live in squatter settlements and work in shadow economies,
which generate more than one-third of the developing world’s GDP. Slums are not
caused by the poor but by governments denying people the right to own and exchange
property. When people own their own property they have incentives to invest
time, money and energy to improve it because they know that they will be able
to benefit from any such improvements. I.e. the ability to obtain mortgages
etc. in short, property rights begets capital, which begets innovation, which
begets wealth. Sadly, the poor typically don’t have secure title to their land
as there are bureaucratic restrictions on transferring title or there is no
clear system for titling.
Without legal deeds they live in constant fear of
being evicted by landlords or municipal officials. Illiteracy is a major reason
poor people often choose not to seek the protection of local courts since in so
many countries laws established under colonial rule have been translated into
local languages. When entrepreneurs do set out to legally register business
they are discouraged by red tape and costly fees. In Egypt, starting a bakery
takes 500 days, compliance with 315 laws and 27 times the monthly minimum wage.
The proprietors of such businesses cannot get loans, enforce contracts or
expand a personal network f familiar customers and partners. As a result the
poor have no choice but to accept insecurity and instability as a way of life.
In India severe restrictions of free transfer of property in
most rural areas inhibit investment and encourage urban flight. Planning
policies however discourage building homes for these migrants as numerous homes
are destroyed if they do not comply with planning rules, essentially forcing
people to live in slums and perversely blaming it on population growth. UN
Habitat the UN agency for housing the poor, has implemented more plans to
stabilize the unplanned aspects of urban growth but grandiose plans like UN
schemes and government housing projects simply ignore or worsen the underlying
problems.
It is when governments grant people legal means to control their
assets that they empower them to invest and plan ahead. In Buenos Aires,
economists studied the experience of two Argentine communities. One had
received legal title to its land in the 1980S and surpassed the other group
which had nit, in a range of social indicators including quality of house
construction and educations levels. The Commission on Legal Empowerment of the
Poor – a UN- affiliated initiative made up of two dozen leaders- is exploring
ideas to extend enforceable legal rights to impoverished members of society and
is seeking to bring about a consensus on incentives for national and local
leaders. As the growth of illegal settlements amply demonstrates, the poor are
not helpless all they need is governments to grant them fundamental human
rights of freedom and responsibility.
1.
What did the Argentine study indicate?
A.
Argentina’s economy is booming and the
percentage of poor has fallen.
B.
When the government gives people the legal means
to control their assets they plan for the future.
C.
The government succeeded in widening the gap
between the rich and the poor.
A.
Only (A)
B.
Both (A) & (B)
C.
Only (B)
D.
All (A), (B) & (C)
2.
According to the author, which of the following
factors is responsible for the creation of a slum?
A.
Migration of landless labourers to cities
B.
Municipal authorities building low- cost
housing for the poor
C.
Unchecked population growth
D.
Government failure to secure property rights for
citizens
3.
The author’s main objective in writing the
passage is to
A.
Exhort the UN to play a greater role in
rehabilitating slum-dwellers.
B.
Praise
government initiatives for migrant slum-dwellers.
C.
Convince governments to empower the poor.
D.
Enlist aid of developed countries to tackle the
issue of slums.
4.
What benefit does the author see in providing
land ownership rights to the poor?
A.
Steady increase in GDP
B.
Gaining independence from colonial rulers
C.
Municipal services afforded to the poor will
improve.
D.
None of these
5.
Which of the following is TRUE in the context of
the passage?
A.
Additional UN projects will exacerbate the
plight of slum-dwellers.
B.
Although the government allocates land for them
the poor choose not to invest in building houses.
C.
With the spread of slums populations are
drifting back to rural areas.
D.
In order to accumulate profit slum- dwellers
avoid legally registering their business.
6.
What impact do planning policies have on the
development of slums?
A.
They encourage the poor to invest in land
thereby perpetuating slums.
B.
They focus on developing rural rather than urban
areas so people have to live in slums.
C.
They offer alternative practical suggestions for
construction of low-cost housing.
D.
They advocate demolishing homes which violate
planning rules, encouraging slums.
7.
What is the objective of the commission on Legal
Empowerment of the poor?
A.
Coerce international leaders to implement
housing projects
B.
Bring sanctions against countries denying their
citizens the right to housing
C.
Selecting experts to recommend ideas to do away
with poverty
D.
Establish practical ways for governments to
empower the underprivileged
8.
Which of the following difficulties do
unregistered businesses face?
A.
Banks do not give loans in the absence of
security.
B.
They are unable to earn the loyalty of any
customer.
C.
They cannot enforce contracts.
A.
Only (A)
B.
Both (A) & (C)
C.
Both (A) & (B)
D.
Only (B)
9.
What does the growth of illegal settlements
indicate?
A.
The government needs to implement more
restrictions on property transfer.
B.
Capital earned from underground economies is
beneficial to a country’s economy.
C.
The poor are capable of investing resources in
their development.
D.
UN housing projects are not properly
implemented.
10.
Which of the following prevents the poor from
obtaining a business license?
A.
They do not want to make an effort.
B.
Government officials are discourteous.
C.
They lack funds to bribe government officials.
D.
They are intimidated by bureaucratic procedures.
Answer:
1.
C Refer
to the study done by the economists in Buenos Aires.
2.
D This
is what the entire passage dealt with.
3.
C this is a natural corollary to the question
above.
4.
D it
will empower the poor to invest and plan ahead.
5.
B Since
the allocation does not come with a proper title; there is always the fear of
eviction.
6.
A Planning
policies discourage building homes.
7.
D The
commission is exploring ideas to extend enforceable legal rights to
impoverished members of society and is seeking to bring about a consensus on
incentives for national and local leaders.
8.
B does
not follow because of the word any.
9.
C The
passage says: “As the growth of illegal settlements amply demonstrates the poor
are not helpless…”
10.
D They
are discouraged by red tape.
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