Professor Wallace Santos ingles@brazilmail.

com
Text 1

Corruption in India - A rotten state Graft is becoming a bigger problemand the government should tackle it
INDIANS anger over rising corruption has reached feverish levels. What people are calling a season of scams includes the alleged theft of billions by officials behind last years Commonwealth games in Delhi; $40 billion in revenues lost from the crooked sale of 2G telecoms licences; and over $40 billion stolen in Uttar Pradesh alone from schemes subsidising food and fuel for the poor. Foreign businessmen, who have slashed investment over the past year, rank graft as their biggest headache behind appalling infrastructure. Now Indias anti-corruption chief has been forced out over, well, corruption. Graft is hardly new in India: the Bofors scandal brought down the government in 1989. But there seems to be more of it about than ever, if only because India is getting richer fast, and the faster the economy grows, the more chances arise for mind-boggling theft. The government says that in the next five-year plan period, which starts next year, $1 trillion will be spent on roads, railways, ports and so on, with billions more on re-equipping the armed forces and welfare. Add in an insatiable appetite for scarce land, water and minerals and a monsoon of bribes is forecast. Some are inclined to shrug their shoulders. After all, corruption does not seem to be stopping India from growing. Yet imagine how much better the country would be doing without it. Corruption raises costs not just to Indians, but also to the foreigners whose capital India needs. Thanks in part to those scandals, Indias stockmarket was the worst performing outside the Muslim world over the past year. To its credit, the government has begun to take action against powerful individuals. Maharashtra states chief minister was forced out over a property scandal. Police have quizzed Suresh Kalmadi, the politician who ran the Commonwealth games. Most strikingly, Andimuthu Raja, the cabinet minister who oversaw the 2G telecom licences, was arrested. (Mar 10th 2011 | www.economist.com) QUESTO 1- According to the main idea expressed by the text, it is correct to state that: A)people are willing to tackle the corruption issue. B)mighty individuals are being cracked down by local authorities. C)graft is widespread in India and bothers both the population and the business world. D)there are crooked transactions in Indias energy private sector. E)Indias rogue state has been seriously hitting the poor. QUESTO 2- According to the text: A)dishonesty was rated as the biggest hurdle in the corporative scenario. B)authorities were laid off because they attempted to fight corruption. C)the wealthier India becomes, the likelier it is to get rid of monkey businesses. D)the police is also involved in rotten schemes. E)Indias prime minister was sent to jail due to a telecom scandal. QUESTO 3- A synonym for yet, underlined in the text in the third paragraph, in Yet imagine how much better the country would be doing without it. would be: A)therefore B)despite that C)due to D)instead of E)furthermore QUESTO 4- In Some are inclined to shrug their shoulders., the expression, underlined in the text, in the third paragraph, to shrug their shoulders means: A)to discredit the governments initiatives in curbing corruption. B)to support the peoples discontent regarding a rogue state. C)to have faith in Indias development despite its scandals. D)to agree with Indias policy-making against graft. E)to overlook the illegal practices taking place in India.

Professor Wallace Santos ingles@brazilmail.com

THE FINANCIAL PAGE James Surowiecki

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1 People really, really hate inflation. In polls, voters regularly cite high prices, as one of their biggest concerns, even when inflation is low. A 2001 study that looked at the "macroeconomics of happiness" found that higher inflation put a severe dent in how happy people reported themselves to be. The distaste for inflation is such that a 1996 study (titled, aptly, 'Why Do People Dislike Inflation?"), by the Yale economist Robert Shiller, found that, in countries around the world, sizable majorities said that they would prefer low inflation and high unemployment to high inflation and low unemployment, even if that meant that millions of extra people would go without work. 2 Weimar-style hyperinflation is, of course, an awful thing. But people loathe inflation even in moderate doses, where the evidence suggests it does little damage. The best estimates of the cost of inflation find that even a ten-per-cent inflation rate much higher than anyone is currently pushing for shrinks consumption by just 0.1 to 0.8 per cent. There are other costs, to be sure: inflation shrinks the value of peoples savings, and uncertainty about future prices makes business decisions less efficient. There's also the risk of inflation getting out of control. But the historical record suggests that the risk of three-per-cent inflation turning into hyperinflation is very small. 3 So why is inflation unpopular? The biggest reason, Shiller found, was simply that people believe higher prices reduce their standard of living and make them "poorer." This is obviously true for people living on fixed incomes or of their savings, but for everyone else, as many studies have shown, inflation translates into higher incomes as well as higher prices, and it typically doesn't have much of an effect either way on people's standard of living. (After all, we've had sixty years of inflation in the postwar era, yet we're much more prosperous than we were in 1950.) That's not how it feels, though: myopia leads us to focus on how much more we have to pay, rather than on how much more we earn. Inflation also sets off other alarm bells. It often increases uncertainty, which most people are averse to, and, because it can be described as "weakening" a country's currency, it affects morale. Shiller found that people associated rising inflation with dwindling social cohesion. There's also a moral dimension: we connect inflation to a lack of discipline and failure to live within our means. The most striking thing about Shiller's study was that no one surveyed mentioned any possible benefits of inflation, even though to Americans currently besieged by debts it would be a lifesaver.

The New Yorker, September 27, 2010 1) Which of the following is most supported by the information in the article? A People fear inflation because money brings happiness. B The antipathy that most people have for inflation is justified. C People have a tendency to react irrationally to inflation. D Its impossible to be happy when inflation is out of control. E Many people would prefer to lower their standard of living than to accept a high rate of inflation. 2) Which of the following is most supported by the findings in Robert Shillers study (Why do People Dislike Inflation?)? A Personal happiness depends on inflation. B Inflation destroys a countrys social unity. C Governments wanting to guarantee social stability must keep inflation low, even if that low inflation results in high unemployment. D People in general are usually satisfied when unemployment is high but inflation is low. E People in general are willing to sacrifice the financial and professional well-being of others in order to keep prices stable. 3) Which of the following is probably the main reason that the author mentions a ten-percent inflation rate in paragraph 2?

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A He believes that anything above this rate must be considered hyperinflation and will cause serious economic problems. B It is an arbitrary number chosen because it is neither excessively high nor excessively low. C He wants to support his argument that even moderate inflation is less harmful than people think. D A ten-per-cent inflation rate can be very effective in reducing a governments sovereign debt. E Though ten per cent is a moderate inflation rate, the author believes that it is unacceptable to most people.
4) According

to the information in the article, which of the following is most likely NOT a possible negative effect of inflation? A Even a low inflation rate easily turns into hyperinflation. B People living on fixed incomes have a lower purchasing power. C The value of money in savings accounts decreases. D Its harder for businesses to make decisions involving future prices. E People have a greater tendency to become disheartened and anxious. 5) With respect to moderate inflation, which of the following is most supported by the information in the article? A Even moderate inflation reduces the peoples standard of living and destroys their ability to consume. B The great prosperity of the United States is the result of a sixty-year period of moderate inflation. C Moderate inflation is a necessary condition if wages are to rise. D The nature of even moderate inflation is that it always rises faster than wages. E In general, moderate inflation really doesnt make a significant material difference in peoples lives. 6) In the middle of paragraph 3, the phrase Thats not how it feels most likely refers to which of the following? A Though the United States is more prosperous now than it was sixty years ago, it doesnt feel more prosperous. B Though for most people inflation isnt necessarily a bad thing, it feels like a bad thing. C In general, paying more money for products feels worse than it really is. D Since people quickly get used to earning higher wages, they soon feel no different than before, even though they have more money. E Though people should be happy when their wages accompany inflation, they tend to become discouraged. 7) According to the information in the article, Robert Shillers study (Why do People Dislike Inflation?) A is considered the definitive work on peoples beliefs and misconceptions about inflation. B makes a clear distinction between the effects of good inflation and the effects of bad inflation. C presents conclusive proof that inflation does more harm than good. D is surprising in that no person interviewed had anything positive to say about inflation. E shows through various interviews how a high inflation rate encourages unethical behavior.

Professor Wallace Santos ingles@brazilmail.com

Text 3
Brazil: the natural knowledge economy
Kirsten Bound THE ATLAS OF IDEAS If you grew up in Europe or North America you will no doubt have been taught in school that the Wright Brothers from Ohio invented and flew the first aeroplane the Kitty Hawk in 1903. But if you grew up in Brazil you will have been taught that the real inventor was in fact a Brazilian from Minas Gerais called Alberto Santos Dumont, whose 14-bis aeroplane took to the skies in 1906. This fierce historical debate, which turns on definitions of practical airplanes, the ability to launch unaided, length of time spent in the air and the credibility of witnesses, will not be resolved here. Yet it is a striking example of the lack of global recognition for Brazils achievements in innovation. Almost a century later, in 2005, Santos Dumonts intellectual heirs, the company Empresa Brasileira de Aeronutica (EMBRAER), made aviation history of a different kind when they unveiled the Ipanema, the worlds first commercially produced aircraft to run solely on biofuels. This time, the world was watching. Scientific American credited it as one of the most important inventions of the year. The attention paid to the Ipanema reflects the growing interest in biofuels as a potential solution to climate change and rising energy demand. To their advocates, biofuels most commonly bioethanol or biodiesel offer a more secure, sustainable energy supply that can reduce carbon emissions by 50V60 per cent compared to fossil fuels. From learning to fly to learning to cope with the environmental costs of flight, biofuel innovations like the Ipanema reflect some of the tensions of modern science, in which expanding the frontiers of human ingenuity goes hand in hand with managing the consequences. The recent backlash against biofuels, which has seen them blamed for global food shortages as land is reportedly diverted from food crops, points to a growing interdependence between the science and innovation systems of different countries, and between innovation, economics and environmental sustainability. The debates now raging over biofuels reflect some of the wider dynamics in Brazils innovation system. They remind us that Brazils current strengths and achievements have deeper historical roots than is sometimes imagined. They reflect the fact that Brazils natural resources and assets are a key area of opportunity for science and innovation a focus that leads us to characterise Brazil as a natural knowledge economy. Most importantly, they highlight the propitious timing of Brazils growing strength in these areas at a time when climate change, the environment, food scarcity and rising worldwide energy demand are at the forefront of global consciousness. What changed between the maiden flight of the 14-bis and the maiden flight of the Ipanema is not just Brazils capacity for technological and scientific innovation, but the rest of the worlds appreciation of the potential of that innovation to address some of the pressing challenges that confront us all. www.demos.co.uk

1) The dispute about the first plane to take off and fly a) cant be solved due to a historical debate between Santos Dumont and the Wright Brothers. b) shows that the world does not truly accept Brazils innovation and invention. c) established a plausible definition of flying artifacts as well as biased witnesses from Ohio. d) has been solved since Santos Dumont flew his 14-bis plane in 1906. e) has started in the USA, where children learn that the Kitty Hawk was the first plane to fly. 2) According to the text, in Brazil people learn that a) the Kitty Hawk spent less time in the air than the 14-bis. b) both the Kitty Hawk and the 14-bis could not take off unaided. c) there were no pictures taken of the first 14-bis flight. d) Santos Dumont was born in Minas Gerais, where the 14-bis first flew. e) the 14-bis, created by Santos Dumont, had its maiden flight in 1906. 3) According to the text, biofuels a) have caused a strong reaction against them because land formerly used for food crops is now used for biofuel production.

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b) provide sustainable energy that can be used to minimize global food shortages and climate change. c) have shown detrimental effects on economics and environment, although they come from renewable sources. d) are a temporary solution to supply the soaring energy demand until new fossil fuel sources come into operation. e) should be produced in different countries and from varied crops in order to become economically viable. 4) Brazil is characterized as a natural knowledge economy because a) environmental and climate changes should be globally addressed. b) issues such as food scarcity and energy demand have been duly solved. c) there was no significant impact of biofuel crops on other agricultural commodities. d) science and innovation opportunities have been created from its natural resources. e) it has always produced plenty of agricultural goods thanks to its favorable climate. 5) O trecho do segundo pargrafo This time, the world was watching. refere-se a) fundao da EMBRAER com o lanamento do Ipanema. b) faz contraste com o ano de 1906, em que o 14-bis fez seu voo. c) faz uma analogia entre o Kitty Hawk e o Ipanema. d) considera que o intervalo de um sculo entre os voos do 14-bis e do Ipanema foi demasiado. e) refere-se aos cientistas americanos que viajaram no voo inaugural do Ipanema. 6) No trecho do segundo pargrafo To their advocates, biofuels ... a expresso their advocates refere-se a) aos defensores dos biocombustveis. b) aos herdeiros intelectuais de Santos Dumont. c) EMBRAER. d) aos cientistas que idealizaram o Ipanema. e) aos cientistas americanos. 7) No trecho do terceiro pargrafo which has seen them blamed for global food shortages as land is reportedly diverted from food crops a palavra as introduz a) um contraste. b) uma condio. c) uma comparao. d) uma consequncia. e) uma causa.