UPSC Daily Answer writing practice GS-1/3 #15

The most important and most neglected part for Civil Services Preparation is answer writing. It is not about HOW MUCH YOU STUDY but CAN YOU WRITE within word limit and time frame. After UPPCS daily answer writing practice and  UKPCS DAILY ANSWER WRITING PRACTICE, ORACLE IAS comes out with new initiative UPSC DAILY ANSWER WRITING PRACTICE.

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 for inclusive growth in India? Discuss.(250 words)
पूंजीवाद ने विश्व अर्थव्यवस्था को अनछुई ऊंचाइयों तक पहुंचाया है, लेकिन अक्सर यह अदूरदर्शिता को प्रोत्साहित करता है और अमीर और गरीबों के बीच में खाई को बढ़ाता है। इस आलोक में चर्चा करें कि क्या भारत में समावेशी विकास हेतु पूंजीवाद में विश्वास और उसे अपनाना उचित रणनीति है? (250 words)

Structure of answer:-

Introduction

Why capitalism was favoured and also evidence of its cons.

Body

What India has gained and what are the negative impacts.

Conclusion

Modification of capitalism and welfare state.

Model Answer

The prosperity seen in the western world today is undoubtedly due to the capitalist nature of their economy which encourages wealth creation, innovation and entrepreneurship. However as the Oxfam report notes, it has also led to concentration of wealth in hands of few, leading to wide disparities. It has also given birth to negative externalities like environmental degradation.

India in its search for development model leaned heavily towards socialism but after 1991 has come closer to capitalist model. It has enabled us to :-

  1. Expand our GDP and exports
  2. Bring people out of poverty and increase their lifestyle levels
  3. Integrate us into world economy
  4. Create wealth

 

However has also has had some negative impacts:-

  1. Income and wealth disparities
  2. Less focus on social sector(education, health etc.)
  3. Less focus on farming sector and consequent fall in incomes of farmers
  4. On a global level, rise of neo-colonialism and North South divide.

China has also adopted capitalism but with “Chinese characterstics”, which are suitable to the socio-economic conditions there. India for inclusive growth should opt for a version of capitalism(because it is the only way for wealth creation) that has a humane face i.e. we should aspire to be like the welfare states of Scadinavia.