The level of financial aid given by rich nations to poorer nations in order to raise the poorer nations’ industrial capacity is directly influenced by the extent to which the donors fear competition and the threat of diminished exports. The amount of aid recommended by Congress is invariably reduced and redistributed by presidential decree according to the findings of a select committee judging aid packages purely from an American business perspective. As a consequence, many poorer nations have to find areas of industrial activities that pose no threat to the industrial global order.
If the above statements are true, which one of the following must also be true?The passage says aid is not given only according to the needs of poorer nations. It is adjusted according to whether the poorer nations’ industrial development threatens the business interests of richer nations.
The key inference is that poorer nations are more likely to receive aid for industrial projects that do
not threaten richer nations.
(A) The most needy countries are those with the smallest industrial output.
This is not supported. The passage discusses aid decisions and donor interests, not which countries are most needy.
(B) The amount of aid received by poorer nations for industrial projects is in proportion to the extent to which they develop new industrial bases that pose no threat to rich nations.
This is correct. The passage says aid is reduced and redistributed based on American business interests, and poorer nations must find industrial activities that do not threaten the existing industrial order. So aid depends on how nonthreatening their industrial development is to rich nations.
(C) Poorer nations depend on foreign aid to advance their industrial economies.
This is too strong. The passage says aid affects what industrial activities many poorer nations pursue, but it does not say they depend entirely on foreign aid.
(D) The wealth of richer nations has expanded thanks to a policy of withholding foreign aid.
This is not supported. The passage says aid is controlled to protect donor interests, but it does not say this has increased the wealth of richer nations.
(E) The amount of foreign aid given to poorer nations by richer industrialized nations has been reduced to safeguard existing export markets.
This is close but too narrow. The passage mentions fear of diminished exports, but it also mentions broader fear of competition and the industrial global order. (B) captures the broader relationship more accurately.
Answer: (B)