Passage

By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity and economic growth. Crony capitalism, where rich and the influential are alleged to have received land and natural resources and various licences in return for payoffs to venal politicians, is now a major issue to be tackled. One of the greatest dangers to growth of developing economics like India is the middleincome trap where crony capitalism creates oligarchies that slow down the growth.

QUESTION

CSAT

Medium

Comprehension

Prelims 2016

Which among the following is the most logical corollary to the above passage?

Select an option to attempt

Explanation

Statement A is incorrect. Launching more welfare schemes and allocating more finances do not directly address the issue of crony capitalism.

Statement B is incorrect. Providing licenses to the poor does not solve the problem of transparency and fairness.

Statement C is correct. The passage highlights how crony capitalism harms transparency, competition, and economic growth by favoring the rich and influential. It leads to oligarchies, which slow down development. To counter this, the most logical step is to ensure greater transparency in governance and promote financial inclusion.

Statement D is incorrect. Prioritizing the manufacturing sector is unrelated to the issue discussed.

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