With reference to the above passage, the following assumptions have been made: 1. Higher economic growth is essential to ensure reduction in economic disparity. 2. Environmental degradation is sometimes a consequence of economic growth. Which of the above is/are valid assumptions?

Passage

Individuals, groups, and leaders who promote human development operate under strong institutional, structural, and political constraints that affect policy options. But experience suggests broad principles for shaping an appropriate agenda for human development. One important finding from several decades of human development experience is that focusing exclusively on economic growth is problematic. While we have good knowledge about how to advance health and education, the causes of growth are much less certain and growth is often elusive. Further, an unbalanced emphasis on growth is often associated with negative environmental consequences and adverse distributional effects. The experience of China, with its impressive growth records, reflects these broader concerns and underlines the importance of balanced approaches that emphasize investments in the non-income aspects of human development.

Question

CSATEasyPrelims 2015Comprehension

With reference to the above passage, the following assumptions have been made:

Higher economic growth is essential to ensure reduction in economic disparity.
Environmental degradation is sometimes a consequence of economic growth.

Which of the above is/are valid assumptions?

Explanation

Statement 1 is incorrect because the passage suggests that focusing exclusively on economic growth can have adverse distributional effects and does not emphasize economic growth as the primary way to reduce disparity.

Statement 2 is correct because the passage mentions that unbalanced economic growth is often associated with negative environmental consequences, supporting the idea that environmental degradation can result from economic growth.