Give arguments to support or oppose the following assertion: Government in poor countries should spend less on poverty reduction, health, education and spend more on industries and infrastructure.
Model Answer & Options
Source: TextbookThis assertion is wrong. Poverty reduction, health, and education are crucial for building human capital, which drives long-term growth. Investing in these areas reduces inequality and empowers citizens. Without basic needs met, industrial and infrastructure investments benefit only a few. A balanced development model supports inclusive growth. Countries that prioritize welfare, like Scandinavian nations, have achieved both economic prosperity and equity. Ignoring poverty and education undermines democracy and leads to unrest. Therefore, governments must invest in social sectors while also building infrastructure and industries.
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