19th December, 2015 (MAINS)

TODAYs ANSWER WRITING CHALLENGE FROM GS-III

Q1. Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages short-sightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss.

[12.5marks/2014/GS-4] 150 words.

Please write answer in the comments section.

  • Preeti Fci

    GS3 question solved by me:
    Q1. Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages short-sightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss.

    Answer : It would not be correct to believe and adopt capitalism driving inclusive growth in India due to following reasons:
    1. Capitalism is an economic system in which mode of production, trade, industries are privately owned.
    2. Capitalism is criticized with number of disadvantages like:
    a. Social inequality
    b. Unfair distribution of wealth and power.
    c. Materialism
    d. Repression of workers
    e. Trade unionists.
    f. Social alienation.
    g. Economic inequality and economic instability.
    h. Unemployment.
    3. But proponents of capitalism argue that it creates more prosperity mainly for ordinary people as compared to other economic systems.
    4. India should create a new model of democratic capitalism – business of the people, by the people and for the people.
    5. The business environment in India is changing allowing entrepreneurial spirit to flourish which is reflected in divergence in corporate profit.
    6. Inclusive capitalism can counter inequality, restrain the accumulation of wealth with the top few and provide the working and middle classes with better economic opportunities.
    7. Other well intended initiatives of Capitalism such as philanthropy have helped to uplift the lives of downtrodden.
    8. Due to effective regulation, competitiveness of economy also increases resulting in economic development which invariably leads to political as well as social development.

    Conclusion:
    1. Capitalism needs to be regulated for delivery of greatest economic growth to greatest number of people for achieving inclusive growth.
    2. A mixed mode of economy i.e. adopting he socialistic value with the level playing field to the market player is necessary.
    3. An approach to balance both side justify the sustainable growth which impart the inclusive development.

    • http://shashidthakur23.blog.com Shashi Thakur

      well attempted.

      • Preeti Fci

        thank you……………