Directions for next eight questions Read the following passage and answer the given questions.
The economic condition of the low income regions of the world is one of the great problems of our time. Their progress is important to the high-income countries, not only for humanitarian and political reasons but also because rapid economic growth in the low income countries could make a substantial contribution to the expansion and prosperity of the world economy as a whole.
The governments of most high-income countries have in recent years undertaken important aid programs, both bilaterally and multilaterally, and have thus demonstrated their interest in the development of low-income countries. They have also worked within the General Agreement on Tariffs and Trade (GATT) for greater freedom of trade and, recognizing the special problems of low-income countries are to enjoy a satisfactory rate of growth.
This statement is therefore concerned with the policies of high – income countries toward their trade with low-income countries. Our recommendations are based on the conviction that a better distribution of world resources and a more rational utilization of labor are in the general interest. A liberal policy on the part of high-income countries with respect to their trade with low-income countries but, when transitional adjustments have taken place, beneficial to the high-income countries as well.
It is necessary to recognize however, that in furthering the development of low-income countries, the high-income countries can play only a supporting role. If development is to be successful, the main effort must necessarily be made by the people of the low-income countries. The high-income countries are, moreover, likely to provide aid and facilitate trade more readily and extensively where the low income countries are seen to be making sound and determined efforts to help themselves, and thus to be making effective use of their aid and trade opportunities.
It is, then necessary that the low-income countries take full account of the lessons that have been learned from the experience of recent years, if they wish to achieve successful development and benefit from support from high-income countries. Among the most important of these lessons are the following:
Severe damage has been done by inflation. A sound financial framework evokes higher domestic savings and investment as well as more aid and investment from abroad. Budgetary and monetary discipline and a more efficient financial and fiscal system help greatly to mobilize funds for investment and thereby decisively influence the rate of growth. Foreign aid should also be efficiently applied to this end.
The energies of the people of low-income countries are more likely to be harnessed to the task of economic development where the policies of their governments aim to offer economic opportunity for all and to reduce excessive social inequalities.
Development plans have tended to concentrate on industrial investment. The growth of industry depends, however, on concomitant development in agriculture. A steady rise in productivity on the farms, where in almost all low-income countries a majority of the labor force works, is an essential conditions of rapid over-all growth. Satisfactory development of agriculture is also necessary to provide an adequate market for an expanding industrial sector and to feed the growing urban population without burdening the balance of payments with heavy food imports. Diminishing surpluses in the high-income countries underline the need for a faster growth of agricultural productivity in low-income countries. Success in this should, moreover, lead to greater trade in agricultural productivity in low-income countries. Success in this should, moreover, lead to greater trade in agricultural products to the high-income countries.
There can be no doubt about the urgency of the world food problem. Adequate nourishment and a balanced diet are not only necessary for working adults but are crucial for the mental and physical development of growing children. Yet, in a number of low-income countries where the diet is already insufficient the production of food has fallen behind the increase in population. A continuation of this trend must lead to endemic famine. The situation demands strenuous efforts famine. The situation demands strenuous efforts in the low-income countries to improve the production, preservation, and distribution of food so that these countries are better able to feed themselves.
The issue with which the passage is concerned with