PASSAGE
For achieving inclusive growth there is a critical need to rethink the role of the State. The early debate among economists about the size of the Government can be misleading. The need of the hour is to have an enabling Government. India is too large and complex a nation for the State to be able to deliver all that is needed. Asking the Government to produce all the essential goods, create all the necessary jobs, and keep a curb on the prices of all goods is to lead to a large cumbersome bureaucracy and widespread corruption.
The aim must be to stay with the objective of inclusive growth that was laid down by the founding fathers of the nation and also to take a more modern view of what the State can realistically deliver.
This is what leads to the idea of an enabling State, that is, a Government that does not try to directly deliver to the citizens everything that they need. Instead, it (1) creates an enabling ethos for the market so that individual enterprise can flourish and citizens can, for the most part, provide for the needs of one another, and (2) steps in to help those who do not manage to do well for themselves, for there will always be individuals, no matter what the system, who need support and help. Hence we need a Government that, when it comes to the market, sets effective, incentive-compatible rules and remains on the sidelines with minimal interference, and at the same time, plays an important role in directly helping the poor by ensuring that they get basic education and health services and receive adequate nutrition and food.
Why is the State unable to deliver "all that is needed"?
1. It does not have sufficient bureaucracy.
2. It does not promote inclusive growth.
Select the correct answer from the codes given below :
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2