Question:
Given below are two statements :
Statement-I : The economic policies implemented by China helped to break the stagnation of its economy.
Statement-II : Economic development of China also increased environmental degradation and corruption.
Given below are two statements :
Statement-I : The economic policies implemented by China helped to break the stagnation of its economy.
Statement-II : Economic development of China also increased environmental degradation and corruption.
Statement-I : The economic policies implemented by China helped to break the stagnation of its economy.
Statement-II : Economic development of China also increased environmental degradation and corruption.
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Economic growth in emerging economies often creates dual consequences: high GDP growth and poverty reduction on one side, but environmental degradation and institutional corruption on the other side.
Updated On: Aug 11, 2026
- Both Statement-I and Statement-II are true.
- Both Statement-I and Statement-II are false.
- Statement-I is true, but Statement-II is false.
- Statement-I is false, but Statement-II is true.
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The Correct Option is A
Solution and Explanation
Concept:
While China's post-1978 economic reforms produced extraordinary macroeconomic growth and lifted millions out of poverty, they simultaneously generated severe environmental, social, and administrative challenges.
Step 1: Evaluation of Statement-I.
Statement-I states: "The economic policies implemented by China helped to break the stagnation of its economy." This is true. Under the leadership of Deng Xiaoping, China introduced the 'Open Door Policy' in 1978, phased privatisation of agriculture and industry, created Special Economic Zones (SEZs), and joined the World Trade Organization (WTO) in 2001. These reforms ended state-controlled economic stagnation, resulting in double-digit growth rates and making China a major economic engine globally.
Step 2: Evaluation of Statement-II.
Statement-II states: "Economic development of China also increased environmental degradation and corruption." This is also true. Unregulated rapid industrialisation, intense fossil fuel consumption, and massive urbanization caused air/water pollution, land degradation, and ecological loss. Simultaneously, the combination of market growth alongside state control created opportunities for widespread political and economic corruption among party officials.
Step 3: Conclusion.
Since both Statement-I and Statement-II are factually correct, Option (A) is the correct choice.
Step 1: Evaluation of Statement-I.
Statement-I states: "The economic policies implemented by China helped to break the stagnation of its economy." This is true. Under the leadership of Deng Xiaoping, China introduced the 'Open Door Policy' in 1978, phased privatisation of agriculture and industry, created Special Economic Zones (SEZs), and joined the World Trade Organization (WTO) in 2001. These reforms ended state-controlled economic stagnation, resulting in double-digit growth rates and making China a major economic engine globally.
Step 2: Evaluation of Statement-II.
Statement-II states: "Economic development of China also increased environmental degradation and corruption." This is also true. Unregulated rapid industrialisation, intense fossil fuel consumption, and massive urbanization caused air/water pollution, land degradation, and ecological loss. Simultaneously, the combination of market growth alongside state control created opportunities for widespread political and economic corruption among party officials.
Step 3: Conclusion.
Since both Statement-I and Statement-II are factually correct, Option (A) is the correct choice.
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