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There is a sentence that is missing in the paragraph below. Look at the paragraph and decide in which blank (option 1, 2, 3, or 4) the following sentence would best fit.Sentence: However, in the course of the 19th century, the free market largely failed to deliver the developmental goods, proving itself to be more adept at generating than distributing wealth.Paragraph: Meritocracy loomed large over Victorian capitalism. _____(1)_____ And so, in the early decades of the 20th century, stirred by both political and intellectual developments – the growing appeal of communism to a working class that had tasted comparatively few of the market’s fruits, and the consequent rise of economic schools that aimed to renew capitalism, such as Keynesianism and the German social-market – the state gradually took on a much more active role in both society and the economy. _____(2)_____ Immediately after the Second World War, with Europe in ruins, the communist threat seemed to reach its peak. _____(3)_____ To spearhead reconstruction, Western states created institutions such as the World Bank to assist governments in their work, and private charities arose to join this crusade. _____(4)_____ Oxfam (1942), CARE International (1945) and UNICEF (a joint private-United Nations charity created in 1946) all came into being to provide famine relief to war-torn Europe.

Question

There is a sentence that is missing in the paragraph below. Look at the paragraph and decide in which blank (option 1, 2, 3, or 4) the following sentence would best fit.Sentence: However, in the course of the 19th century, the free market largely failed to deliver the developmental goods, proving itself to be more adept at generating than distributing wealth.Paragraph: Meritocracy loomed large over Victorian capitalism. (1) And so, in the early decades of the 20th century, stirred by both political and intellectual developments – the growing appeal of communism to a working class that had tasted comparatively few of the market’s fruits, and the consequent rise of economic schools that aimed to renew capitalism, such as Keynesianism and the German social-market – the state gradually took on a much more active role in both society and the economy. (2) Immediately after the Second World War, with Europe in ruins, the communist threat seemed to reach its peak. (3) To spearhead reconstruction, Western states created institutions such as the World Bank to assist governments in their work, and private charities arose to join this crusade. (4) Oxfam (1942), CARE International (1945) and UNICEF (a joint private-United Nations charity created in 1946) all came into being to provide famine relief to war-torn Europe.

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Solution

The sentence "However, in the course of the 19th century, the free market largely failed to deliver the developmental goods, proving itself to be more adept at generating than distributing wealth." fits best in the blank labeled as (1). This is because the sentence provides a contrast to the idea of meritocracy in Victorian capitalism and sets up the context for the changes in the 20th century that are discussed in the following sentences.

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