Volatility Kills Reading Answers

Jan 12, 2023

Volatility Kills Reading Answers contains a write up about the Volatility kills.Volatility Kills Reading Answers containing a total of 8 paragraphs. Related to the paragraphs are 13 questions.Candidates in this IELTS Section will be shown various question types with clear instructions. Volatility Kills Reading Answers is an IELTS Reading passage which comprises three types of questions: Choose the correct option, true/false and not given and Complete the summary.

To complete the summary candidate must be aware of each detail mentioned. The paragraphs must be read thoroughly and important details remembered. Some information might not be mentioned in the paragraphs which need to be mentioned as not given. While completing the summary the statements of the questions must be carefully read. So, A deep understanding of paragraphs is required. To answer the questions provided in the given passage,Applicants must attentively read each passage. To gain proficiency, candidates can practice from IELTS reading practice test.

Check: Get 10 Free IELTS Sample Papers
Check: Register for IELTS Coaching - Join for Free Trial Class Now

Section 1

Read the Passage to Answer the Following Questions

Volatility Kills Reading Answers

Despite gun battles in the capital of Chad, rioting in Kenya, and Galloping inflation in Zimbabwe, the economies of sub-Saharan Africa are, as a whole, in better shape than they were a few years ago. The World Bank has reported recently that this part of the continent experienced a respectable growth rate of 5.6 percent in 2006 and a higher rate from 1995 to 2005 than in previous decades. The bank has given a caution assessment that the region may have reached a turning point. An overriding question for developmental economists remains whether the upswing will continue so Africans can grow their way out of poverty that relegates some 40 percent of the nearly 744 million in that region to living on less than a dollar a day. The optimism, when inspected more closely, may be short-lived because of the persistence of a devastating pattern of economic volatility that has lingered for decades.
“In reality, African countries grow as fast as Asian countries and other developing countries during the good times, but afterward they see growth collapse,” comments Jorge Arbache, a senior World Bank economist. “How to prevent collapses may be as important as promoting growth.” If these collapses had not occurred, he observes, the level of gross domestic product for each citizen of the 48 nations of sub -Saharan Africa would have been third higher.

The prerequisites to prevent the next crash are not in place, according to a World Bank study issued in January, Is Africa’s Recent Growth Robust? The growth period that began in 1995, driven by a commodities boom spurred in particular by demand from China, may not be sustainable, because the economic fundamentals- new investment and the ability to stave off inflation, among other factors-are absent. The region lacks the necessary infrastructure that would encourage investors to look to Africa to find the next Bengaluru ( Bangalore ) or Shenzhen, a November report from the bank concludes. For sub–Saharan countries rich in oil and other resources, a boom period may even undermine efforts to institute sound economic practices.. From 1996 to 2005, with growth accelerating, measures of governance– factors such as political stability, rule of law, and control of corruption- actually worsened, especially for countries endowed with abundant mineral resources, the January report notes.

Perhaps the most incisive analysis of the volatility question comes from Paul Collier, a longtime specialist in African economics at the University of Oxford and author of the recent book The Bottom Billion. He advocates a range of options that the U.S. and other nations could adopt when formulating policy toward African countries. They include revamped trade measures, better-apportioned aid, and sustained military intervention in certain instances, to avert what he sees as a rapidly accelerating divergence of the world’s poorest, primarily in Africa, from the rest of the world, even other developing nations such India and China.

Collier finds that bad governance is the main reason countries fail to take advantage of the revenue bonanza that results from a boom. Moreover, a democratic government, he adds, often makes the aftermath of a boom worse. “Instead of democracy disciplining governments to manage these resource booms well, what happens is that the resource revenues corrupt the normal functioning of democracy-unless you stop ( them from) corrupting the normal function of democracy with sufficient checks and balances'', he said at a talk in January at the Carnegie Council in New York City.
Collier advocates that African nations institute an array of standards and codes to bolster governments, one of which would substitute auctions for bribes in apportioning mineral rights and another of which would tax export revenues adequately. He cites the Democratic Republic of the Congo, which took in $ 200 million from mineral exports in 2006 yet collected only $86000 in royalties for its treasury. “If a nation gets these points right, ” he argues, “It’s going to develop. If it gets them wrong, it won’t.”

To encourage reform, Collier recommends that the G8 nations agree to accept these measures as voluntary guidelines for multinationals doing business in Africa- companies, for instance, would only enter new contracts through auctions monitored by an international verification group. Such an agreement would follow the examples of the so-called Kimberley Process, which has effectively undercut the trade in blood diamonds, and the Extractive Industries Transparency Initiative, in which a government must report to its citizens the revenues it receives from sales of natural resources.

These measures, he says, are more important than elevating aid levels, an approach emphasized by economist Jeffrey D. Sachs of Columbia University and celebrity activists such as Bono. Collier insists that first Angola receives tens of billions of dollars in oil revenue and whether it gets a few hundred million more or less in aid is really second-order.

Section 2

Solution and Explanation

Questions 1-4

Use the information in the passage to match the people (listed A-C) with opinions or deeds below. Write the appropriate letters A-C in boxes 1-4 on your answer sheet.

NB you may use any letter more than once

Jeffrey D. Dachs

Paul Collier

Jorge Arbache

An unexpectedly opposite result

Answer: B
Supporting Statement: Moreover, a democratic government, he adds, often makes the aftermath of a boom worse. “Instead of democracy disciplining governments to manage these resource booms well, what happens is that the resource revenues corrupt the normal functioning of democracy-unless you stop ( them from) corrupting the normal function of democracy with sufficient checks and balances'
Keywords: Intead, aftermath
Keyword Location: Paragraph E
Explanation: As per paragraph E, Paul Collier states that democracy acts opposite and gives opposite results. Instead of democracy trying to manage and discipline governess they are corrupting the governments more. So, B is the correct answer as per explanation.

Estimated more productive outcomes if it were not for sudden economic downturns

Answer: C
Supporting Statement: ” If these collapses had not occurred, he observes, the level of gross domestic product for each citizen of the 48 nations of sub -Saharan Africa would have been third higher.
Keywords: collapses, domestic product
Keyword Location: Paragraph B
Explanation: As per paragraph B, Jorge Abrache states clearly that if the collapses had not taken place, the level of gross domestic product counting per citizen of the total 48 countries of sub- Saharan Africa would have been higher resulting in the third highest. So, the correct answer is C.

A proposal for a range of recommended instructions for certain countries to narrow the widening economic gap

Answer: B
Supporting Statement: To encourage reform, Collier recommends that the G8 nations agree to accept these measures as voluntary guidelines for multinationals doing business in Africa- companies, for instance, would only
enter new contracts through auctions monitored by an international verification group.
Keywords: Encourage reform, recommends
Keyword Location: Paragraph G
Explanation: As per paragraph G, Collier makes an effort related to encouraging reform, he recommends that the G8 nations agree to take into action and accept the measures as voluntary guidelines. This was for multinationals doing business in African countries. So, the correct answer is B.

An advocate for a method used for a specific assessment

Answer: B
Supporting Statement: He advocates a range of options that the U.S. and other nations could adopt when formulating policy toward African countries.
Keywords: advocates, range of options
Keyword Location: Paragraph D
Explanation: As per paragraph D, Collier advocates and recommends a variety of options that the United States of America and other nations can possibly adopt when formulating and bringing into action the policy towards African countries. So, the correct answer is B.

Questions 5-9

Do the following statements agree with the information given in the Reading Passage ? In boxes 5-9 on your answer sheet, write

TRUE if the statement is true
FALSE if the statement is false
NOT GIVEN if the information is not given in the passage

The instability in an economy in some African countries might negatively impact their continuing growth after a certain level has been reached.

Answer: True
Supporting Statement: “In reality, African countries grow as fast as Asian countries and other developing countries during the good times, but afterward they see growth collapse,” comments Jorge Arbache, a senior World
Bank economist.
Keywords: African countries, growth collapse
Keyword Location: Paragraph B
Explanation: As per paragraph B, Jorge Arbache comments that's in reality The African countries develop and grow rapidly as compared to the Asian countries. But due to the economic collapse it remains behind the Asian countries. African countries might negatively affect their own e ionic growth after a certain point. So, the statement is True.

Collier is the most influential scholar in the study of the volatility problem.

Answer: Not Given
Explanation: There has been no relevant information given related to the question statement in the paragraphs. So, the correct answer is Not Given.

Certain African governments levy considerable taxes on people profiting greatly from exportation.

Answer: False
Supporting Statement: Collier advocates that African nations institute an array of standards and codes to bolster governments, one of which would substitute auctions for bribes in apportioning mineral rights and another of
which would tax export revenues adequately.
Keywords: Advocates, tax export revenues
Keyword Location: Paragraph F
Explanation: As per paragraph F, Collier states that the African nations institute and implement some standards and rules to bolster governments. This includes the substitution of auctions for bribes in relation to mineral rights. The other is adequate tax export revenues. So, the question statement is contradictory. Hence, the answer is False.

Some African nation’s decisions on addressing specific existing problems are directly related to the future of their economic trends.

Answer: True
Supporting Statement: They include revamped trade measures, better-apportioned aid, and sustained military intervention in certain instances, to avert what he sees as a rapidly accelerating divergence of the world’s
poorest, primarily in Africa, from the rest of the world, even other developing nations such India and China.
Keywords: Revamped trade measures, better-apportioned
Keyword Location: Paragraph D
Explanation: As per paragraph D, the revamped trade measures, better apportioned aid and sustained military intervention in certain instances, is a medium to avert the rapidly accelerating divergence of the world's poorest like in Africa. As compared to the rest of the world. So, the question statement is correct. Hence, the answer is True.

Collier regards Jeffrey D. Sachs recommended a way of evaluating title importance.

Answer: Not Given
Explanation: There has been no relevant information given related to the question statement in the paragraphs. So, the correct answer is Not Given.

Questions 10-13

Complete the following summary of the paragraphs of Reading Passage Volatility Kills, using No More than Three words from the Reading Passage Volatility Kills for each answer. Write your answers in boxes 10-13 on your answer sheet.

According to one research carried out by the world bank, some countries in Africa may suffer from 10…………. due to the lack of according preconditions. They experienced a growth stimulated by 11………… , but according to another study, they may not keep this trend stable because they don’t have 12………… which would attract investors. to some countries with abundant resources, this fast-growth period might even mean something devastating to their endeavor. during one specific decade accompanied by 13……….. as a matter of fact, the governing saw a deterioration.

Question 10)

Answer: The Next Crash
Supporting Statement: The prerequisites to prevent the next crash are not in place, according to a World Bank study issued in January, Is Africa’s Recent Growth Robust?
Keywords: prerequisites, World Bank
Keyword Location: Paragraph C
Explanation: As per paragraph C, According to the World Bank study issued in January, the prerequisites required and needed to prevent the next crash in Africa are not in place. This raises the question as to whether Africa's growth is robust or not. So, the correct answer is The next Crash.

Question 11)

Answer: A commodities Boom
Supporting Statement: The growth period that began in 1995, driven by a commodities boom spurred in particular by demand from China, may not be sustainable, because the economic fundamentals- new investment and
the ability to stave off inflation, among other factors-are absent.
Keywords: Commodities boom, sustainable
Keyword Location: Paragraph C
Explanation: As per paragraph C, the growth period of 1995 was mainly driven by a commodities boom. This was particularly spurred on by demand from China. But it may not be sustainable due to the economic fundamentals. So, the correct answer is Commodities Boom.

Question 12)

Answer: Necessary Infrastructure
Supporting Statement: The region lacks the necessary infrastructure that would encourage investors to look to Africa to find the next Bengaluru ( Bangalore ) or Shenzhen, a November report from the bank concludes.
Keywords: Regions lacks, necessary infrastructure
Keyword Location: Paragraph C
Explanation: As per paragraph C, Africa lacks the necessary infrastructure. As this infrastructure would make and encourage the investors to look to Africa to find the next Bangalore. This was reported from the bank. Spo, the correct answer is necessary infrastructure.

Question 13)

Answer: Growth Accelerating
Supporting Statement: From 1996 to 2005, with growth accelerating, measures of governance– factors such as political stability, rule of law, and control of corruption- actually worsened, especially for countries endowed with abundant mineral resources, the January report notes.
Keywords: Measure of governance factors, growth accelerating
Keyword Location: Paragraph C
Explanation: As per paragraph C, From 1996 to 2005, the growth accelerating was seen along with the measures of governance factors such as apolitical stability, rule of law and control of corruption. So, the correct answer is growth accelerating.