China’s rising power is based on its remarkable economic success. Shanghal’s
overall economy is currently growing at around 13% per year, thus doubling in
size every five or six years. Everywhere there are start-ups, innovations, and
young entrepreneurs hungry for profits. In a series of high-level meetings
between Chinese and African officials, the advice that the African leaders
received from the Chinese was sound, and more practical than they typically get
from the World Bank. Chinese officials stress the crucial role of public
investments, especially in agriculture and infrastructure, to lay the basis for
private sector-led growth. In a hungry and poor rural economy, as China was in
the 1970s and as most of Africa is today, a key starting point is to raise farm
productivity. Farmers need the benefits of fertilizer, irrigation and
high-yield seeds, all of which were a core part of China’s economical takeoff.
Two other equally critical investments are also needed: roads and electricity,
without which there cannot be a modern economy. Farmers might be able to
increase their output, but it would not be able to reach the cities, and the
cities won’t be able to provide the countryside with inputs. The government has
taken pains to ensure that the electricity grids and transportation networks
reach every village in China. China is prepared to help Africa in substantial
ways in agriculture, roads, power, health and education. And that is not an
empty boast. Chinese leaders are prepared to share new high-yield rice
varieties, with their African counterparts and, all over Africa, China is
financing and construct basic infrastructure.
This illustrates what is wrong
with the World Bank. The World Bank and often forgotten the most basic lessons
of development, preferring to lecture the poor and force them to privatize
basic infrastructure, which is untenable, rather than to help the poor to
invest in infrastructure and other crucial sectors. The Bank’s failure began in
the early 1980s when under the ideological sways of then American President and
British Prime Minister it tried to get Africa and other poor regions to cut
back or close down government investments and services. For 25 years the bank
tried to get governments out of agriculture, leaving impoverished peasants to
fend for themselves. The result has been a disaster in Africa with farm
productivity stagnant for decades.
The bank also pushed for privatization of
national health systems water utilities, and road and power networks and has
grossly under financed these critical sectors. This extreme free-marked
ideology, also called “structural adjustment”, went against the practical
lessons, of development successes in China and the rest or Asia. Practical
development strategy recognizes that public investments- in agriculture,
health, education and infrastructure- are necessary complements to private
investments.
The World Bank has instead wrongly seen such vital public investments as
an enemy of private sector development. Whenever the bank’s ideology failed, if
has blamed the poor for corruption, mismanagement, or lack of initiative.
Instead of focusing its attention on helping the poorest countries to improve
their infrastructure, there has been a crusade against corruption. The good
news is that African governments are getting the message on how to spur
economic growth and are getting crucial help from China and other partners that
are less wedded to extreme free- market ideology than the World Bank.
They have
declared their intension to invest in infrastructure, agriculture
modernization, public health, and education. It is clear the Bank can regain
its relevance only if it becomes practical once again, by returning its focus
to financing public investments in priority sectors. If that happens, the Bank
can still do justice to the bold vision of a world of shared prosperity that
prompted its creation after World War II.
23.
The author’s main objective in writing the
passage is to
A.
Make a case for the closure of the world Hank
since it promotes US interests over those of other countries.
B.
Illustrate how china can play a more concrete role
in Africa.
C.
Criticize the World Bank for playing a crucial
role in China’s development but neglecting Africa.
D.
Use China’s success as an example of the changes
required in World Bank ideology.
24.
Which of the following cannot be said about
structural adjustment?
A.
It is the World Bank’s free market ideology
adapted by Asian countries.
B.
Under this strategy public sector investment in
priority sectors is discouraged’
C.
As a development strategy it has failed in
Africa
D.
With this strategy there has been a lack of adequate
investment in critical sectors.
25.
What advice has the author given the World Bank?
A.
Support China’s involvement in developing Africa
B.
Reduce the influence of the US and Britain in
its functioning
C.
Adopt a more practical ideology of structural
adjustment
D.
Change its ideology to one encouraging both
public and private sector investment in basic infrastructure.
Answer:
23.
D A
and C are false while D is more comprehensive than B.
24.
A
Rather, it is “against the practical lessons of development successes in
China and the rest of Asia”.
25.
D
Practical development strategy recognizes that public investments are
necessary complement to private investment.
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