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Q.

Read the case/source given and answer the question that follows.


If democracies are expected to produce good governments, then is it not fair to expect that they would also produce development? Evidence shows that, in practice, many democracies did not fulfil this expectation. If you consider all democracies and all dictatorships for the fifty years between 1950-2000, dictatorships have a slightly higher rate of economic growth. The inability of democracy to achieve higher economic development worries us. But this alone cannot be a reason to reject democracy. As you have already studied in economics, economic development depends on several factors: a country’s population size, global situation, cooperation from other countries, economic priorities adopted by the country, etc. However, the difference in the rates of economic development between less developed countries with dictatorships and democracies is negligible. Overall, one cannot say that democracy is a guarantee of economic development. But one can expect democracy not to lag behind dictatorships in this respect. When one finds such a significant difference in the rates of economic growth between countries under dictatorship and democracy, it is better to prefer democracy as it has several other positive outcomes.


Why should the gains of economic growth be evenly distributed equally among citizens?


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An Intiative by Sri Chaitanya

a

To make an economically even society

b

To promote the idea of social justice

c

To reduce inequality in the society

d

All of the above 

answer is A.

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Detailed Solution

 The gains of economic growth should be distributed equally among citizens to make an economically even society.
This would also be in line with one of democracy's founding principles, namely, economic justice. Economic growth that is dispersed equally across society and generates opportunity for all is referred to as inclusive growth. Income distribution that is equitable promotes social harmony and cohesiveness. If wealth is divided too unequally, the majority of people in an economy will suffer at the expense of the wealthy few. Low-income earners can also benefit from equitable income distribution by having access to chances to grow their wealth.
 
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