For over a decade the most common policy advice given to developing

Question

(The following was excerpted from material written in 1988.)

For over a decade the most common policy advice given to developing countries by international development institutions has been to copy the export-oriented path of the newly industrializing countries, the celebrated NIC's. These economies—Brazil, Hong Kong, Mexico, Singapore, South Korea, and Taiwan—burst into the world manufacturing market in the late 1960's and the 1970's; by 1978 these six economies, along with India, enjoyed unequaled growth rates for gross national product and for exports, with exports accounting for 70 percent of the developing world's manufactured exports. It was, therefore, not surprising that dozens of other countries attempted to follow their model, yet no countries—with the possible exceptions of Malaysia and Thailand—have even approached their success. In "No More NIC's," Robin Broad and John Cavanagh search for the reasons behind these failures, identifying far-reaching changes in the global economy—from synthetic substitutes for commodity exports to unsustainable levels of foreign debt—as responsible for a glut economy offering little room for new entrants. Despite these changes, the authors maintain, the World Bank and the International Monetary Fund—the foremost international development institutions—have continued to promote the NIC path as the way for heavily indebted developing countries to proceed. And yet the futility of this approach should, according to the authors, be all too apparent so many years into a period of reduced growth in world markets.   1 
 1. Given the information in the passage, which of the following is a true statement about the NIC's?

A. Their economic success among developing countries has been exceeded only by the successes of Malaysia and Thailand.
B. By 1978 they produced 70 percent of the world's manufactured exports.
C. In the late 1970's, their growth rates for gross national product were among the highest in the world.
D. In recent years their development has been heavily subsidized by major international development institutions.
E. They received conflicting policy advice from international development institutions in the late 1960's and the 1970's.

2 
 2. The author of the passage most clearly implies that Broad and Cavanagh disagree with the World Bank and the International Monetary Fund about which of the following?

A. The ways in which the global economy has changed in recent years
B. The causes of the unsustainable levels of foreign debt that the developing countries have incurred in recent years
C. The level of foreign debt that should be maintained by developing countries
D. The degree to which international development institutions should monitor the growth of developing countries
E. The degree to which heavily indebted developing countries should emphasize exports in their overall economic strategy

3 
 3. The author mentions Malaysia and Thailand in order to

A. acknowledge the appearance of implausibility in a broad claim
B. concede the possible existence of counter-examples to a generalization
C. offer additional evidence in support of a disputed conclusion
D. illustrate the broad applicability of a hypothesis
E. admit the limited scope of a standard analysis

pradeepss · Answer

I initial choose A but then re-evaluated to B.

Q3: The author mentions Malaysia and Thailand in order to
A. acknowledge the appearance of implausibility in a broad claim - Incorrect
-- implausibility mean author is in disbelief how this could happen. which is not the intend.
B. concede the possible existence of counter-examples to a generalization - Correct
-- author concede (does not deny the existence) of the event. which is what author intends to say. 
C. offer additional evidence in support of a disputed conclusion - Incorrect
-- nope no evidence is presented only an event is conceded.
D. illustrate the broad applicability of a hypothesis - Incorrect
-- this is clear no
E. admit the limited scope of a standard analysis - Incorrect
-- limited scope of a standard analysis? no analysis is presented.

hope that helps.

Skywalker18 · Answer

Interesting passage . Took 6 mins , including 2 mins 20 second to read the passage .

-The author talks about advice given out by International Development Institutions to developing countries -The author then talks about the how this advice- though having worked for the NIC’s need not necessarily work for all countries 1. "by 1978 these six economies, along with India, enjoyed unequaled growth rates for gross national product and for exports." Option (C ) is a clear word justification of the above and is hence correct. 2. “have continued to promote the NIC path as the way for heavily indebted developing countries to proceed" Option (E) is a word justification of the above and is hence correct. 3. "It was, therefore, not surprising that dozens of other countries attempted to follow their model, yet no countries—with the possible exceptions of Malaysia and Thailand—have even approached their success" It can be inferred from the above that Malaysia and Thailand were exceptions to the generalization. Hence option (B) is the right answer choice.

VAKRATUNDA · Answer

Given the information in the passage, which of the following is a true statement about the NIC’s?
A. Their economic success among developing countries has been exceeded only by the successes of Malaysia and Thailand …  the passage leaves out these two countries while making an assertion about the rest saying none even approached the success of the NICs …this gives no reason to infer that the two overshot the success of the NICs 
B. By 1978 they produced 70 percent of the world’s manufactured exports … passage confirm that their produce was 70 percent of the developing world’s total manufactured produce and NOT of the global manufactured produce 
C. In the late 1970’s, their growth rates for gross national product were among the highest in the world …  passage confirm this answer option word by word … the superlative highest is confirmed from the word ‘unequaled’ (line 9) in the passage. CORRECT 
D. In recent years their development has been heavily subsidized by major international development institutions …  no comment has been made on their current status in the passage 
E. They received conflicting policy advice from international development institutions in the late 1960’s and the 1970’s …  no such conflicting advice is confirmed from the context of the passage

VAKRATUNDA · Answer

The author of the passage most clearly implies that Broad and Cavanagh disagree with the World Bank and the International Monetary Fund about which of the following?
A. The ways in which the global economy has changed in recent years …  neither of the two are seen presenting any sort of remark on how the global economy has changed in the recent years 
B. The causes of the unsustainable levels of foreign debt that the developing countries have incurred in recent years … foreign debt and its causes is not taken up as a topic of discussion in the passage especially between these two 
C. The level of foreign debt that should be maintained by developing countries …  there is never any level of foreign debt that should be maintained that is proposed by either one of the two 
D. The degree to which international development institutions should monitor the growth of developing countries …  growth monitoring (on part of anyone) is not a part of the passage 
E. The degree to which heavily indebted developing countries should emphasize exports in their overall economic strategy …  lines 22 onwards confirm that the authors take issue with how the two institutions continue to promote the NIC path, which is to copy the export-oriented path of the six economies, as the way for the heavily indebted countries to proceed further … thus the above is inferable. CORRECT

VAKRATUNDA · Answer

The author mentions Malaysia and Thailand in order to (purpose question)
A. acknowledge the appearance of implausibility in a broad claim … the author is never seen acknowledging / accepting the improbability in anything in the passage … the passage doesn’t exactly consist of anyone’s broad claim 
B. concede the possible existence of counter-examples to a generalization …  the author mentions evidence that starts with the word ‘NO’ (line 14) … the author then mentions the two as exceptions … exceptions are always something that can run counter to the generalization being claimed … thus inferable. CORRECT 
C. offer additional evidence in support of a disputed conclusion …  the two are introduced as exceptions and not as additional evidence … the passage doesn’t have any disputed conclusion 
D. illustrate the broad applicability of a hypothesis …  there is no hypothesis in the passage … ‘broad applicability’ is not confirmed from the passage 
E. admit the limited scope of a standard analysis … the author is never seen admitting to anything in the passage … the scope of an analysis is never gauged in the passage

100mitra · Answer

Passage introduction:   
Despite support, why some countries, not able to copy the export-oriented path of the newly industrializing countries?
  Passage structure:   
>Policy
> Some countries extremely successful
> other some are not successful, reasons
> Still support not successful

Words:   221   Read time:   3 mins

Q1: Given the information in the passage, 
which of the following is a  true statement about the NIC's?

A. Their economic success among developing countries has been exceeded  only by the successes  of Malaysia and Thailand
  Wrong:   as mentioned in the passage, “It was, therefore, not surprising that dozens of other countries attempted to follow their model,  yet no countries have even approached their success .”

B. By 1978 they “ produced 70 percent ” of the world's manufactured exports
  Wrong:   produced and export not necessarily has same implications, 
as mentioned in the passage, “by 1978 these six economies, along with India, enjoyed un-equalled growth rates 
for gross national product and for exports, with “ exports accounting for 70 percent ” of the developing world's manufactured exports

C. In the late 1970's, their growth rates for gross national product were among the highest in the world.
Correct: as mentioned in the passage, “These economies burst into the world manufacturing market in the late 1960's and the 1970's”

D.   has been heavily subsidized by major international development institutions.
  Wrong:    with no development or heavily subsidization mentioned in the passage , 
passage only says, “Despite these changes, the authors maintain, 
the World Bank and the International Monetary Fund  have continued to promote  the NIC path 
as the way for heavily indebted developing countries to proceed”

E. They received conflicting policy advice from international development institutions in the late 1960's and the 1970's.
  Wrong:   Out of scope, no conflicting policy discussed.

-----------------------------------------------------------------------------------------------------------------------------------------------------------

Q2: The author of the passage most clearly implies that 
Broad and Cavanagh  disagree with  
the World Bank and the International Monetary Fund 
about which of the following?

A. The ways in which  the global economy  has changed in recent years 
-  passage breif about some developing countries successful / not successful through export driving economy for there country 
B. The causes of the  unsustainable levels of foreign debt  that the developing countries have incurred
 in recent years  –   Not concern 
C. The level of foreign debt that should be  maintained by developing countries  – out of scope 
D. The degree to which international development institutions  should monitor the growth of developing countries  – Not concern

E. The degree to which heavily indebted developing countries should emphasize exports in their overall economic strategy
 Correct:  the reason, why they disagree is " with support from WB / IMF, still results are not appriciating by some developing countries in export ", as mentioned in the passage below 
In "No More NIC's," Robin Broad and John Cavanagh 
  sentence 1-  Broad and Cavanagh view    
- search for the reasons behind these failures  (i.e some countries – not successful) , 
identifyed reason - 
  far-reaching changes in the global economy   
as responsible for a glut economy 
  offering little room for new entrants

sentence 2 - WB and IMF support to developing countries   -
Despite these changes, the World Bank and the International Monetary Fund have continued 
  to promote the NIC path   
as the way 
  for heavily indebted developing countries   to proceed

Sentence 3 - Dispute   
- And  yet so many years into a period of reduced growth in world markets

Sneha2021 · Answer

KarishmaB   GMATNinja   ParamjitDasGMAT

Q2: The author of the passage most clearly implies that Broad and Cavanagh disagree with the World Bank and the International Monetary Fund about which of the following?

Can you please explain why C is incorrect? 
C. The level of foreign debt that should be maintained by developing countries. 
I understand that level of debt that sholud be maintained is not given but from the passage we can only infer that "Robin Broad believes in unsustainable levels of foreign debt" is one of the reasons for failure whereas IMF suggest to follow NIC even to heavily indebted developing countries.

E. The degree to which heavily indebted developing countries should emphasize exports in their overall economic strategy
I'm not sure how E is supported by the passage. "To what degree" a country should emphasize is not given anywhere in the passage.

ParamjitDasGMAT · Answer

Hi  Sneha2021 ,

The amount of foreign debt or the level of foreign debt has not been mentioned wrt the World Bank and/or the IMF. Although Broad and C believe that some countries have had "unsustainable" levels of foreign debt, we don't know whether the World Bank/IMF tacitly/directly supports/encourages/promotes this.

What we do know is (the relevant text is bolded):
"Despite these changes, the authors maintain, the World Bank and the International Monetary Fund—the foremost international development institutions—have continued to promote the NIC path as the way for heavily indebted developing countries to proceed"

The  NIC path  is the path of exports. The World Bank/IMF has promoted this as the path forward. Broad and Cavanagh do not believe that this approach doesn't work. So the World Bank/IMF believes that the export-based approach is important (so the countries should emphasize exports more strongly, say 60/70/80%), while the other side believes the approach doesn't work (hence those countries should emphasize exports not too much, say maybe 5/10%).

Hope this clarifies.

VerbalBot · Answer

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For over a decade the most common policy advice given to developing

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