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The story of Asia’s recent growth is one of increasing imbalances, within as well as between countries, illustrated by diverging rates of growth and rising indicators of internal inequality. In the context of rapid structural transformation, some regions benefit from the agglomeration of production and high-value economic activity while others ‘lag’ behind. At one end of a spectrum of development therefore are ‘lagging regions’, by-passed by growth, excluded from markets and losing out on the associated human-development benefits. At the other are urban agglomerations—including Asia’s ‘mega’ cities—with their concentration of new industry, population and wealth alongside urban poverty and deprivation. Both these ‘extremes’ demand attention from policy-makers. Avoiding the worst problems that either case potentially gives rise to, however, also involves attention to the spaces “in-between” (other rural areas, towns and small cities), and to the mechanism through which economic activity, population, wealth and the benefits of growth are distributed and move between—for example, through the development of markets, in particular for labor, and through the migration process.
Many countries in the region recognize severe regional inequalities as a major challenge to poverty reduction and development. Spatial inequality and poverty are of concern to policy-makers both as a potential source of social and political instability (particularly where poverty coincides, for example, with ethnic or religious divisions), and for the impact a regional concentration of poverty may have on economic growth.
According to neo-classical growth theories, a rise in inequality as economies shift from low-to high-intensive growth would be followed by equalization as marginal returns to factors of production decline in more developed regions and capital seeks higher returns in less developed areas. These predictions of regional convergence are being challenged within a variety of disciplines (endogenous growth theory, economic geography and institutional analysis), pointing instead to continued processes of agglomeration and widening regional disparities. The geography of development in such of Asia provides a partial explanation—of location, resource endowment, and access to markets—as to why growth has occurred in certain areas and poverty is concentrated in others. Coastal regions with easy access to global markets have developed export-processing industries or high-value commercial crops for export; remote interior regions of mountain and desert largely insulated from markets and growth. Globalization also contributes to differentiation, as sub-national regions vary economic contrast heightened by recent episodes of globalization in Thailand, and Vietnam’s south and north. Short-term fluctuations in international trade, foreign investment, or international crisis may have differential regional impacts — though often on regions and sectors that have benefited from global integration. The Asian financial crisis had uneven impacts across regions within the affected countries.
Effective interventions to create more balanced growth have proved elusive and expensive, and in some cases environmentally damaging....
問題內(nèi)容:
1.What is the most appropriate title for this passage?
2.What is the main idea of the first paragraph?
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