THE ANATOMY OF CORRUPTION

THE CONTEXT: Recently, the Corruption Perceptions Index (CPI), 2023 has been released by Transparency International showing that most countries have made little or no progress in tackling public sector corruption.

ABOUT CORRUPTION PERCEPTION INDEX (CPI)

  • It is an annual index released by Transparency International, a global civil society organization.
  • Since its inception in 1995, the Corruption Perception Index has become the leading global indicator of public sector corruption.
  • The CPI ranks 180 countries and territories by their perceived levels of public sector corruption on a scale of zero (highly corrupt) to 100 (very clean).
  • It uses data from 13 external sources, including the World Bank, World Economic Forum, private risk and consulting companies, think tanks and others.

HIGHLIGHTS OF CPI, 2023

  • Only 28 of the 180 countries measured by this index have improved their corruption levels over the last twelve years, and 34 countries have significantly worsened.
  • CPI global average score remains unchanged at 43 for the twelfth year in a row.
  • Denmark with a score of 90 tops the index for the sixth consecutive year, with Finland and New Zealand following closely with scores of 87 and 85, respectively.
  • Somalia was ranked last, other countries occupying the bottom spots included: Venezuela, Syria, South Sudan and Yemen.
  • India has tied with Maldives, Kazakhstan, and Lesotho to rank at 93 out of 180 countries. In 2022, India was ranked at 85. Our overall score has slipped from 40 to 39 on a scale of 100.
  • Pakistan scored 29 with a rank of 133 and China, scored 42 occupying rank 76.

ANALYSIS OF CPI, 2023:

  • Serious Corruption Globally: Over two-thirds of countries score below 50 out of 100, which strongly indicates that they have serious Corruption problems.  The global average score is stuck at only 43, while the vast majority of countries have made no progress or declined in the last decade.
  • Factors Contributing to Corruption: Both authoritarian and democratic leaders are undermining justice. This is increasing indication for corruption, and even encouraging it by eliminating consequences for criminals. Corrupt acts like bribery and abuse of power are also infiltrating many courts and other Judicial institutions across the globe.
  • Decline in Justice: There has been a global decline in justice and the rule of law since 2016. The rise of authoritarianism in some countries contributes to this trend, and even in democratic contexts, the mechanisms that keep governments in check have weakened. Governments across the political spectrum have undermined justice systems, restricted civic freedoms and relied on non-democratic strategies to address recent challenges, including the COVID-19 pandemic.
  • Corruption has many faces: The index has highlighted that corruption has many faces. Bribe is the most obvious one, which has been almost accepted as a necessary evil. A certain amount is fixed for each work to be given as illegal gratification. Nepotism is another facet of corruption which is widely practiced by the political class. Favouritism falls under nepotism or cronyism. Even the academic field is rife with this kind of corruption.

THE WAY FORWARD:

  • Introduce integrity and monitoring mechanisms. There is a need to ensure that the special protections required by members of the legislative system to perform their functions are not abused. Abuse may be prevented through dedicated whistleblowing and reporting channels, and other relevant actors to disclose their assets and interests.
  • Expand avenues for accountability: There is a need to expand the system for expansion of avenues for accountability. This calls for those foreign countries to have in place key procedural measures, such as extensive jurisdiction, minimal immunities for foreign state officials and a broad definition of justiciable harm that encompasses widespread harm to a large number of victims.
  • Strengthen the independence of the justice system. Shielding the justice system from interference is paramount for its functioning. Promote merit-based rather than political appointments and ensure that the system has qualified personnel and is properly resourced.
  • Make justice more transparent. Transparency can help shed light on the functioning of the justice system and make it more accountable. Ensure that relevant data on judgments, out-of-court settlements and enforcement as well as legal procedure and administrative rules are openly available and can be scrutinised by members of the public. This could help discourage corruption and ensure that laws against corruption are properly applied and administered.
  • Public Awareness Campaigns: It is suggested to use media and educational institutions to create awareness about the detrimental effects of corruption and the importance of ethical conduct.
  • Encouraging ethical culture: Similarly, rewards and incentives must be granted to encourage people to cultivate an ethical culture. There is a need for real-time information sharing between law enforcement agencies.

THE CONCLUSION:

Transparency International has released its Corruption Perceptions Index for 2023, ranking countries based on their perceived levels of corruption in the public sector. It pointed towards rising corruption worldwide. In this context, there is an urgent need for strengthening preventive vigilance and value-based training to all authorities to ensure probity in public life.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (2021)

Q.2 “Institutional quality is a crucial driver of economic performance”. In this context suggest reforms in the Civil Service for strengthening democracy. (2020)

MAINS PRACTICE QUESTIONS

Q.1 Despite progress made across the planet in criminalising corruption and establishing specialised institutions to address it, corruption levels remain high globally. Analyse the statement in the context of recently released Corruption Perceptions Index (CPI), 2023.

Q.2 Countries with the lowest scores in the Rule of Law index are also scoring very low on the Corruption Perceptions Index (CPI), highlighting a clear connection between access to justice and corruption. In this context, discuss the relationship between justice and corruption.

SOURCE: https://www.deccanherald.com/opinion/the-anatomy-of-corruption-2906495




COLLAPSE OF THE ECOLOGICAL BALANCE AND AN UNDECLARED WAR WITH NATURE

THE CONTEXT: Wayanad is in a state of undeclared war as seen with the rising human-wildlife conflict in the district. There are two recent tragic events in Wayanad, one involving a wild elephant killing a farmer to death and another incident where an elephant herd killed an ecotourism guide at Kuruvadweep Islands. These events have triggered protests and strikes in Kerala.

HUMAN WILDLIFE CONFLICT:

  • Human-wildlife conflict is when encounter between humans and wildlife lead to negative results, such as loss of property, livelihoods, and even life. Defensive and retaliatory killing may eventually drive these species to extinction.
  • Human-wildlife conflict is recognised as a global concern in the UN Convention on Biological Diversity’s post-2020 global biodiversity framework.
  • These encounters not only result in suffering for both people and wildlife immediately impacted by the conflict but they can also have a global reach, with impact on groups such as sustainable development agencies and businesses.
  • The scope of the issue is significant and truly global, but, it has not been able to be addressed at the necessary scale.

WHY IS HUMAN-WILDLIFE CONFLICT ON THE RISE?

  • As human populations and demand for space continue to grow, people and wildlife are increasingly interacting and competing for resources, which can lead to increased human-wildlife conflict.
  • Along with other threats, human-wildlife conflict has driven the decline of once-abundant species and is pushing others to the brink of extinction.
  • If not effectively managed, human-wildlife conflict has the potential to negatively affect these activities and conservation much more broadly.

MORE ON THE NEWS:

  • Following the tragic incident, the government has announced the formation of a high-level panel comprising officials from Kerala, Tamil Nadu, Karnataka and rapid response teams.
  • However, first, an effort from the Forest, Revenue, and Tourism departments is required to assess the situation and chalk strategies by recognising the fragility of the region.
  • Second, a statutory body is required to coordinate the issues spread across the three south Indian States under the Union Ministry of Environment, Forest and Climate Change.
  • Third, the Forest Conservation Act should be enforced with a Free and Prior Informed Consent principle which is recognised as a critical process of stakeholder engagement to prevent degradation.

ISSUES:

  • Onus of responsibility: The responsibility that comes with being a part of the wildlife should not be overlooked, as wildlife experts feel that if the natural balance is not restored, this will be catastrophic for western ghats.
  • Reduced corridors for wildlife: A study report titled Right of Passage: Elephant Corridors of India, conducted by Wildlife Trust of India, identified 88 elephant corridors in 2005. As per the report, 24% of the corridors were under reserve forest and 76% under forest, agriculture, tea gardens, and human settlements. However, recent data on similar corridors have shown reduced corridors for wildlife. It indicates the loss of ecological connectivity and habitat, and the resultant confinement of wildlife to fragmented forests forcing their raids to the surrounding areas.
  • Increasing number of deaths: In Wayanad alone, the official data has documented 51 human deaths due to wildlife attacks during the last 10 years. This number surged to a total of 98 fatalities, encompassing 8,873 attack incidents in the fiscal year 2022-23, with 27 of those deaths attributed to elephant attacks.
  • Loss for agricultural sector: These attacks have also inflicted significant damage on Kerala’s agriculture sector. Over the period from 2017 to 2023, there were 20,957 cases of crop loss due to incursions by wild animals, leading to the death of 1,559 domestic animals, primarily cattle.
  • Destruction of natural ecosystem: The clearing of forest lands for non-forest use marked the beginning of the destruction of natural ecosystems and this was further accentuated by the provision of contract farming agreements to claim uncultivated land. The move led to an agrarian crisis that highlighted drastic changes in the topographical atmosphere and landscape accompanied by a price crash indicating a weakened ecosystem.
  • Monoculture plantation: The trend of monoculture plantations and the usage of pesticides and insecticides depleted the soil. This disturbance was evident in the diminished yield of cash crops and diseases, impacting the plantations despite favourable market prices. Further, it worsened by quarrying and deforestation activities for the expansion of monoculture plantations and the tourism industry. Today, 36,000 hectares out of the 1 lakh hectares of Wayanad forests are monoculture plantations.
  • Rise in tourism industry: The tourism industry has expanded to bustling destinations towards the forest edges and wildlife corridors. The economic consequences of the destruction of the environment, the ecotourism in the region, invasive species, and wild animals, combined with the violation of all standards, have led to the degradation of Wayanad’s ecology.
  • Invasive species: Non-native trees planted inside the forests have denied food and water for the animals which is resulting in the evacuation of animals from the forest areas as the interiors are turning to barren lands.

THE WAY FORWARD:

  • Awareness: The communication and interaction between the forest department and the locals has to be improved so that they can be sensitized about the issues and animals.
  • Wildlife corridors: Corridors allow animals to freely move from one habitat patch to another without crossing human-caused barriers which can put animals, and potentially humans, in danger. Wildlife corridors needs to be increased and upgraded including barriers, guarding and early-warning systems as well as managing tensions between stakeholders involved in these situations.
  • Community Participation: Effective planning and implementation of such measures requires consideration of good principles in community led-conservation, in collaboration with the communities affected.
  • Increase in Protected areas: To conserve the animals and avoid any human-animal interaction more protected areas need to be developed by the Government.
  • Proper investigation: The recent Operation Jumbo parade captured nine elephants and two were released to Kerala with radio collars installed, without adequate surveillance and no watchers to follow. This has to be investigated first and the government needs to extend its efforts to ensure proper monitoring, continuous conservation, and public awareness. It is high time for the Kerala forest department to implement strategies to protect and revive the forests in the State.

THE CONCLUSION:

In order to reduce human-wildlife conflict, we must reassess the relationship and especially the direct interactions between people and wildlife to improve our coexistence in the future. Such human-wildlife conflict management strategies can create opportunities and benefits not only for biodiversity and impacted communities, but for sustainable development and the global economy at large.

UPSC PREVIOUS YEAR QUESTION

Q. Examine the reasons for rising incidents of human-wildlife conflict. Suggest some possible measures to tackle this problem of modern age. (2019)

MAINS PRACTICE QUESTION

Q. The human-animal conflict which has intensified in Wayanad indicates a scramble for resources in the degraded ecology of the Western Ghats. Comment.

SOURCE: https://www.thehindu.com/opinion/op-ed/collapse-of-the-ecological-balance-and-an-undeclared-war-with-nature/article67870645.ece




ELECTORAL SEASON AND RESTRUCTURING THE HEALTH SYSTEM

THE CONTEXT: India’s healthcare system is in dire need of reform. The intersection of healthcare policy and politics in India reveals contrasting views among political parties. India needs substantial reforms and strategic investments to address the challenges within the healthcare infrastructure.

ABOUT UNIVERSAL HEALTH COVERAGE

Universal Health Coverage (UHC) aims to provide affordable and quality healthcare services to all individuals in India, regardless of their financial status. This requires comprehensive reforms and strategic investments to improve health infrastructure and remove financial barriers. UHC presents an opportunity to address systemic disparities and enhance healthcare delivery nationwide.

FEATURES OF UNIVERSAL HEALTH COVERAGE

  • Financial Risk Protection: UHC aims to protect people from financial risks related to healthcare. In Rwanda, a community-based insurance scheme has reduced healthcare expenses, showcasing UHC’s potential for financial risk protection.
  • Coverage of Essential Health Services: UHC encompasses a comprehensive package of services, from prevention and primary care to treatment, rehabilitation, and palliative care. The UK’s National Health Service (NHS) provides a broad spectrum of healthcare services free at delivery, funded through taxation.
  • Resilient Healthcare Systems: Improving healthcare infrastructure is crucial for universal health coverage and sustainability. Japan’s system, which offers universal coverage and emphasizes preventive care, shows how investments aid UHC goals.
  • Inclusion of Vulnerable Populations: UHC schemes aim to provide healthcare access to marginalized populations. India’s Ayushman Bharat scheme targets over 500 million vulnerable individuals and offers free secondary and tertiary care health insurance.

ISSUES

  • Differential Health Policies Among Political Parties: Political parties have varying views on health care, with differing opinions on whether health is a public good or a commodity, as reflected in party manifestos.
  • Challenges in Achieving Universal Health Coverage (UHC): Achieving Universal Health Coverage (UHC) requires genuine reform, strategic restructuring, and efficient implementation at the grassroots level to effectively overcome challenges. For instance, India’s strategy for UHC involves purchasing healthcare services from the private sector on an inflationary fee-for-service model despite supply shortages of specialists and nurses.
  • Flawed Policy Focus: The policy is misguided in prioritizing tertiary medical care while neglecting primary and secondary levels that could efficiently manage most ailments. This is an apparent misallocation of resources that needs immediate attention.
  • Inadequate Health Infrastructure and Resources: The primary and secondary health infrastructure is weak, and there is a severe shortage of human resources. For instance, states like Bihar still have a critical shortage of doctors, which creates challenges in delivering quality healthcare services.
  • Challenges in Health System Reformation: There is a need for substantial reforms in the healthcare system architecture. Although measures have been taken, they have been incremental and fail to address systemic dysfunction and distortions.
  • Imbalance in Health Budget Allocations: Despite budget increases, public health spending as a proportion of GDP has remained relatively stagnant, underscoring an imbalance in budgetary allocations and the need for more strategic fiscal planning in the healthcare sector.

THE WAY FORWARD

  • Strategic Healthcare Investments: The need for strategic investment in primary and secondary healthcare infrastructure is exemplified by Thailand’s successful implementation of Universal Health Coverage (UHC) in 2000, showcasing the impact of targeted investments in strengthening healthcare infrastructure.
  • Comprehensive Healthcare Reforms: Establishing the National Medical Commission and expanding social health insurance under the National Democratic Alliance (NDA) are national examples of comprehensive reform initiatives, reflecting the need for overarching healthcare reform strategies to address systemic complexities.
  • Patient Outcome-Based Health System: The need for a patient outcome-based health system establishes the importance of IT and monitoring systems to evaluate performance based on outcome data linked to financing, drawing from successful examples of reform processes executed in other countries.
  • Investment in Healthcare Workforce: Turkey’s Health Transformation Program’s success in adding hospital beds and doubling the number of nurses and doctors underscores the importance of investing in the healthcare workforce and public health infrastructure, providing a model for strategic resource allocation and professional capacity building.
  • Leveraging Technology for Monitoring and Evaluation: Technology integration for robust monitoring and evaluation of healthcare services aligns with successful examples from countries like Turkey, which enhanced its health infrastructure through strategic technology integration.
  • Strategic Capacity Building through Training and Upskilling: Prioritizing the training and upskilling of healthcare staff at the grassroots level, as exemplified by Thailand’s deliberate capacity-building efforts, emphasizing the significance of the infusion of new organizational capacities and resources.

THE CONCLUSION:

India’s healthcare system has the potential to achieve equitable and impactful healthcare delivery if it implements necessary reforms, addresses disparities in healthcare spending, and learns from global examples.

UPSC PAST YEAR QUESTIONS:

Q. Appropriate local community-level healthcare intervention is a prerequisite to achieving ‘Health for All ‘in India. Explain. (2018)

Q. The public health system has limitations in providing universal health coverage. Do you think that the private sector could help in bridging the gap? What other viable alternatives would you suggest? (2015)

MAINS PRACTICE QUESTION:

Q. Examine the current challenges facing the healthcare infrastructure in India and propose a comprehensive strategy for reform. How can strategic investments and successful international healthcare models be utilized to address critical issues and bolster the healthcare system in the country?

SOURCE: https://www.thehindu.com/opinion/lead/electoral-season-and-restructuring-the-health-system/article67871820.ece




ART 142, WHY SC QUASHED CHANDIGARH MAYOR’S ELECTION, AND WHY IT MATTERS

THE CONTEXT:

The invalidation of votes in the Chandigarh mayoral elections highlights critical vulnerabilities in our electoral system and underscores the need for substantive reforms, as per various committee reports.

THE ISSUES:

  • The Importance of Electoral Integrity: The court’s intervention highlights the crucial role of fair and impartial elections in a democratic society. It emphasizes the sanctity of electoral processes and the need to safeguard the integrity of the voting process.
  • *Role of the Judiciary in Protecting Democratic Principles: The Supreme Court exercised its powers under Article 142 to ensure justice and protect the principles of democracy. This case serves as a reminder of the judiciary’s vital role in upholding constitutional values and addressing electoral malpractices.
  • Electoral Malpractices and Their Consequences: The court’s findings of invalidated ballots and Presiding Officer misconduct underscore the seriousness of electoral malpractices. It raises concerns about the vulnerability of electoral systems to manipulation and the need for stringent measures to prevent such incidents.
  • Defections and Their Impact on Electoral Results: The post-election defection of three AAP councillors to the BJP illustrates the potential impact of defections on electoral outcomes. This issue raises questions about the stability of political alliances and the need for anti-defection laws in local body elections.
  • *Defections and Their Impact on Electoral Results: The post-election defection of three AAP councillors to the BJP illustrates the potential impact of defections on electoral outcomes. This issue raises questions about the stability of political alliances and the need for anti-defection laws in local body elections.
  • Due Process and Accountability: The court’s scrutiny of the Presiding Officer’s actions and its direction for a show-cause notice demonstrates the importance of due process and accountability in electoral matters. It stresses the need for impartial investigations and appropriate actions to address electoral misconduct.

THE WAY FORWARD:

  • Legislative Reforms and Capacity Building: Amend municipal laws to clearly define and possibly expand the roles and responsibilities of mayors to include more substantive decision-making powers. Enhance the training of mayors and municipal officials to improve governance and leadership skills.
  • Absence of Anti-Defection Law in Municipal Elections: Introduce anti-defection laws at the municipal level to prevent political instability and ensure accountability of elected representatives. Political parties should be transparent about their alliances and electoral strategies to build trust among voters.
  • Public Engagement and independent observers: Increase efforts to communicate transparently with the public about the electoral process and its integrity. Allow nonpartisan election observers to monitor elections, enhancing credibility and public trust.
  • Preventive Protocols and Election Monitoring: Introduce robust preventive measures, as recommended by the Dinesh Goswami Committee on Electoral Reforms, to maintain the integrity of the voting process and prevent tampering or invalidation of ballots.
  • Constitutional Safeguards and Reforms: Bring about constitutional amendments and safeguard provisions to enhance the conduct of elections and protect them from undue interference, following the guidelines set forth by the NCRWC under Justice Venkatachaliah.
  • Enhanced Electoral Oversight: Implement ARC’s recommendations for strengthening State Election Commissions with greater autonomy and resources to prevent undue influence and ensure free and fair elections at the municipal level.
  • Legal Reforms for Electoral Integrity: Enforce stringent legal frameworks, as suggested by the Law Commission, to deter and punish electoral malpractices, including the invalidation of votes by election officials.

THE CONCLUSION:

The Supreme Court’s intervention in the Chandigarh mayoral election incident provides a clear and forceful reminder that robust and stringent measures must be implemented to guarantee the integrity of local elections in India. Taking immediate action to reinforce transparency and accountability within the country’s local governance framework is imperative.

UPSC PAST YEAR QUESTIONS:

Q.1 The local self-government system in India has not proved to be an effective instrument of governance”. Critically examine the statement and give your views to improve the situation. (2017)

Q.2 The strength and sustenance of local institutions in India have shifted from their formative phase of ‘Functions, Functionaries and Funds’ to the contemporary stage of ‘Functionality.’ Highlight the critical challenges local institutions face regarding their functionality in recent times. (2020)

MAINS PRACTICE QUESTION:

Q.1 Evaluate the implications of the Supreme Court’s intervention in the Chandigarh mayoral election and suggest reforms for ensuring electoral integrity at the municipal level, referencing recommendations of various committees.

SOURCE:

https://indianexpress.com/article/explained/explained-law/art-142-why-sc-quashed-chandigarh-mayors-election-and-why-it-matters-9171963/




RECALIBRATING MERIT IN THE AGE OF ARTIFICIAL INTELLIGENCE

THE CONTEXT: Recently, the concept of meritocracy where individuals are rewarded based on their abilities and hard work rather than their social status is being extensively debated. Once seen as a fair system for rewarding individuals based on their abilities and efforts, is facing significant challenges in the era of Artificial Intelligence (AI).

CONCEPT OF METERIOCRACY:

  • It is a political, social, or economic system in which individuals are assigned to positions of power, influence, or reward solely on the basis of their abilities, hard work, and achievements rather than their social status or background. It represents a rejection of hereditary aristocracy and nepotism.
  • The theory of meritocracy presupposes the possibility of equality of opportunity. The evolution of meritocracy has witnessed significant transformations, influenced by the critiques and analyses of thinkers such as Michael Young, Michael Sandel, and Adrian Wooldridge.
  • Proponents and critics of meritocracy offer compelling arguments about its impacts on society, highlighting its virtues and shortcomings.

DIFFERENT VIEWS OF SCHOLARS:

  • Michael Young’s View: Young, a British sociologist, foresaw a dystopian meritocratic world in his satirical book, The Rise of the Meritocracy (1958). He envisioned a future, specifically 2034, as a society where social class and mobility were determined solely by intelligence and effort, as measured through standardised testing and educational achievement. It was a critique of the then-emerging trend towards a merit-based system, which he feared would lead to a new form of social stratification.
  • Michael Sandel’s Stand: Sandel’s critique focuses on the divisive consequences, arguing that meritocracy fosters a sense of entitlement among the successful and resentment among those left behind, thereby eroding social cohesion. Critical theorists also argue on similar lines by critiquing meritocracy for masking deeper power dynamics and inequalities. They say that meritocracy can perpetuate social hierarchies by legitimising the status of the elite under the guise of fairness and neutrality.
  • Post-Structuralists Views: Post-structuralists challenge the notion of merit, questioning who defines merit and how it is measured. They argue that concepts of merit are socially constructed and reflect the biases and interests of those in power. Post-structuralism highlights the fluidity and contingency of merit, suggesting that meritocratic systems are inherently subjective and can reinforce existing inequalities.
  • Adrian Wooldridge: Wooldridge lays stress on the practical evolution of meritocracy and its potential for reform. In his book, The Aristocracy of Talent, he explores how meritocracy, initially a force for progress and social mobility, has inadvertently fostered new inequalities by becoming somewhat hereditary, with privileges being passed down generations. Despite recognising the potential for meritocracy to create a new elite, Wooldridge believes in its intuitive fairness and proposes reforms that include making selective schools as “escalators into the elite” while improving access for underprivileged students and advocating better technical education.

ARTIFICIAL INTELLIGENCE(AI) AS A DISRUPTIVE FACTOR

  • The introduction of AI complicates the notion of meritocracy by questioning traditional metrics of merit, worsening biases, and polarizing the workforce.
  • Recalibrating meritocracy in the age of AI requires a nuanced understanding of its impact on societal structures and a deliberate rethinking of how merit is defined and rewarded.
  • AI, with its rapidly evolving capabilities, will be reshaping merit and the idea of meritocracy in six ways.
    1. AI questions the basis of human merit by introducing a non-human entity capable of performing tasks, making decisions, and even ‘creating’ at levels that can surpass human abilities. OpenAI’s Sora is the evidence that creativity is not an exclusive human trait anymore.
    2. The advent of AI challenges the traditional notion of individual merit by prioritising access to technology. Individuals with access to AI tools gain a significant advantage, not necessarily due to their personal abilities, but because of the enhanced capabilities of these tools.
    3. AI systems trained on historical data can perpetuate and even worsen biases present in that data, leading to discriminatory outcomes in areas such as hiring, law enforcement, and lending. These biases can disadvantage groups which are already marginalised.
    4. AI would push the workforce towards either high-skill, high-wage jobs involving complex problem-solving and creativity or low-skill, low-wage jobs requiring physical presence which AI cannot replicate yet. This polarisation will lead to socioeconomic disparities, as individuals without access to high-level education and training are pushed towards lower-wage roles.
    5. The opaque nature of many AI algorithms, coupled with the concentration of power in a few tech giants, poses significant challenges to accountability. In a meritocratic society, individuals must understand the criteria by which their efforts and talents are evaluated. However, the ‘black box’ nature of many AI systems can obscure these criteria, making it difficult for individuals to know how to advance or challenge decisions made by AI, thus eroding the meritocratic ideal.
    6. At the organisational level, the core of AI’s power lies in data and algorithms that process this data. Tech giants with access to unprecedented volumes of data have a distinct advantage in training more sophisticated and accurate AI models. This data hegemony means that these entities can set the standards for what constitutes ‘merit’ in the digital age, potentially sidelining smaller players who may have innovative ideas but need access to similar datasets.

THE WAY FORWARD:

  • Understanding the criteria: In a meritocratic society, individuals must understand the criteria by which their efforts and talents are evaluated. There needs to be a sophisticated understanding of the interplay between technology and societal structures.
  • Rethinking of merit in age of AI: Meritocracy in the age of Artificial Intelligence calls for a deliberate rethinking of how merit is defined and rewarded when AI tools can both augment human capabilities and deepen existing inequalities.
  • Strategies for AI potential in India: India, being the fastest growing economy with the second largest population in the world, has a significant stake in the AI revolution. Recognising AI’s potential to transform economies, Indian needs to strategies its approach.
  • Establishing standards: Together, the public and private sectors can work to establish standards and policies that ensure new technologies, such as AI and ML. It will help drive human progress and create job opportunities for future workforce and grow our economies.

THE CONCLUSION:

The concept of meritocracy has sparked intense debate, with proponents highlighting its virtues in rewarding abilities and achievements, while critics point to its potential for fostering entitlement and worsening social divides. With the advent of AI, the idea of merit is further complicated, raising questions about human versus machine merit. Addressing these complexities requires a nuanced approach to redefine merit and ensure fairness in the digital age.

UPSC PREVIOUS YEAR QUESTION

Q. Discuss how Artificial Intelligence can be used to meet India’s socio-economic needs. (2020)

MAINS PRACTICE QUESTION

Q. Recently, the concept of meritocracy has been extensively debated. Discuss the implications of Artificial Intelligence on the concept of meritocracy, considering its impact on social stratification, biases, and workforce dynamics. Suggest potential reforms in this context.

SOURCE: https://www.thehindu.com/opinion/op-ed/recalibrating-merit-in-the-age-of-artificial-intelligence/article67861320.ece




GLOBAL ORDER AND THE PALE SHADOW OF MULTILATERALISM

THE CONTEXT: The latest Munich Security Conference was held from February 16th to 18th, 2024 at the 19th-century Bayerischer Hof. It was evident that India’s foreign policy is starting to deliver at the world stage. The elite geopolitical conference celebrated its 60th anniversary but there is a sense that the world order has turned upside down by a variety of events.

SHIFT IN WORLD ORDER:

  • Affect future prosperity of the world: The impacts of the ongoing global trajectory if not corrected, are likely to imperil the future and shared prosperity of the world. There is rising geopolitical tensions and rising economic uncertainty forcing governments to abandon the benefits of multilateral global co-operation.
  • Major shift from cold war era: The period following the Cold War was largely peaceful as great power wars seemed remote, multilateralism flourished, globalisation was on the up, democracy flourished, human rights spread, and poverty declined. Today, almost all countries seem dissatisfied with the state of the global order.
  • Rise of global south: The Global South is more assertive in today’s world and hit on the unequal nature of the international global order and seeks a realignment. The developed world worries about its reduced influence in the face of emerging powers from the Global South. On one hand, Countries like India will stake their rightful claim on the world stage and will be playing an increasingly important role in world affairs. On the other hand, traditional custodians of the global order are no longer satisfied with the state of affairs as they see their fortunes shrinking.
  • Lose-lose dynamics: The resulting ‘lose-lose’ dynamics are already unfolding in many policy areas and engulfing various regions. The ongoing Russia-Ukraine war has undermined pathways to a co-operative security order for the foreseeable future. Europe finds itself in a position of neither being able to reap a peace dividend nor avoid the huge capital outlay needed for its defence.
  • China’s growing influence: China’s growing militarisation of its land and maritime borders is raising fears about Beijing’s intentions. As a result, many countries in the region are seeking closer security ties with the United States and the West is also trying to reduce its economic dependency on China.
  • Issue of wars and stability: The war in Gaza has set back the regional rapprochement that had gathered momentum and began shifting zero-sum mindsets among regional powers. Similarly, in Africa, a series of coups in the Sahel has lost the Europeans and the US important partners in promoting development and democracy, and the risk of continued infighting means these populations will likely not see lasting peace in the near to mid-term. That’s a massive geography in disarray.
  • Deglobalisation: Geopolitical tensions are forcing states to pursue economic security rather than maximising mutual gains. As a result, capital and trade flows are beginning to fragment along geopolitical lines.
  • Important arenas are left unaddressed: Climate talks, the one area where global co-operation is a must, is now trapped in the ongoing geopolitical tensions between low- and high-income countries, the Global South vs the Global North. Technology, another area where its benefits could be used to benefit the world, is now a bitter battle for supremacy.

THE WAY FORWARD:

  • Rules based international order: There is a need for reform in the multilateral institutions and brings out rules based international order so that it better delivers on its promised mutual benefits.
  • India can take a lead: A world caught in the middle of such risks seriously imperils global security and a prosperous future. In such situation, India stands out as a beacon of hope in these troubled times given the impact Indian foreign policy is having on the world stage.
  • Inclusive policies: Governments needs to pursue more inclusive economic, social, and environmental agendas, they provide a further benefit to the world economy.  Well-governed economies where prosperity is widely shared are more likely to welcome expanded international trade, investment and immigration.
  • Stability and prosperity: In order to stifle nationalist and protectionist feelings, there is a need to produce stability and security. There is a need to bring emerging countries into closer association with world governance, implying that, in return, they share the responsibility and the costs of underpinning capitalism and an open society.
  • Integration and cooperation: Promotion of new forms of international and regional integration that preserve and allow the multiple dimensions of life to flourish. Cooperation is vital to make the world economy more predictable, to mitigate vulnerabilities and to strengthen the free trade system. The culture of tolerance and understanding must be promoted which provides space for positive dialogue.

THE CONCLUSION:

In recent years, the debate over deglobalization and shift in world order has increased in volume due to political, social and economic developments. To ensure the long-term functioning of the multilateral system and better achievement of its goals, it is essential to strengthen accountability, transparency, inclusivity and democratic partnerships.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 “The long sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its newfound role in the emerging global order.’ Elaborate. (2019)

Q.2 Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (2016)

MAINS PRACTICE QUESTION

Q.1 Globalisation is facing a crisis as there is a waning of concerted support, and growing protectionism, which are challenging the virtue of international cooperation. Discuss its implications and a suitable way forward.

SOURCE: https://www.deccanherald.com/opinion/india-munich-security-conference-globalisation-foreign-policy-multilateralism-global-south-2901726




TIES ACROSS THE SEA: ON THE INDIA-UAE CLOSE RELATIONSHIP

THE CONTEXT: Recent visit of India’s Prime Minister is his seventh visit to UAE since 2014, indicates the government’s desire to bring out the best of the India-UAE relationship in the Gulf region.

MORE ON THE NEWS

  • President of UAE has also expressed his appreciation to PM for accepting the invitation to speak at the World Government Summit 2024 in Dubai.
  • Prime Minister has inaugurated Abu Dhabi’s first Hindu temple, the BAPS temple which is built on a 27-acre site in Abu Mreikhah, near Al Rahba off the Dubai-Abu Dhabi Sheikh Zayed Highway.
  • India and the UAE have signed agreements to collaborate in areas such as energy, infrastructure, investments, and archive management.

KEY HIGHLIGHTS OF THE PACT

  • Bilateral Investment Treaty will strengthen a broad-based investment partnership. It will not only protect existing investments but also promote further capital flows between the two economies.
  • Inter-Governmental Framework Agreement on the India-Middle East-Europe Economic Corridor (IMEEC) aims to enhance regional connectivity.
  • Memorandum of Understanding for cooperation on Digital Infrastructure Projects will establish a comprehensive cooperation framework. This includes investment cooperation in the digital infrastructure sector and the exchange of technical knowledge and skills. Government and regulatory authorities will form partnerships under this MoU, focusing on high power computing, digital innovation, and data management platforms.
  • Memorandum of Understanding in the field of Electricity Interconnection and Trade will focus on green hydrogen, energy storage, and cooperation on energy security and trade.
  • Cooperation Protocol between the National Library and Archives of the UAE and the National Archives of India will establish expansive bilateral cooperation in the field of restoration and preservation of archival material. This protocol will also bolster cooperation in archives management via the exchange of expertise, historical information, research, and studies.
  • Agreement on interlinking of the instant payment platforms – UPI (India) and AANI (UAE) will enable seamless cross-border transactions.
  • Agreement on inter-linking domestic debit/credit cards – RuPay (India) with JAYWAN (UAE) is a significant step in fostering financial sector cooperation, which will boost the universal acceptance of RuPay across the UAE.
  • The MoU on the Development of the National Maritime Heritage Complex (NMHC) aims to foster engagement between the two countries to support the Maritime Heritage Complex at Lothal, Gujarat.
  • The new initiative Bharat Mart at Jebel Ali, which will further promote bilateral trade and serve as a platform for enhancing the utilization of CEPA by leveraging the strategic location of Jebel Ali port. Bharat Mart would support micro, small and medium sector enterprises from India by providing them an effective platform to reach out to international buyers and promote their products across Middle East, Africa, and Eurasia.

SIGNIFICANCE OF THE RELATIONSHIP:

  • UAE is India’s pre-eminent partner in the region in terms of both the strength and the breadth of our partnership. It really extends to every aspect of human endeavour, whether it is food security, energy security, counterterrorism or multilateral cooperation.
  • Economy: The UAE is now India’s third largest trading partner, India’s second largest export destination, and fourth largest source of
  • Diaspora: A central reason for the UAE being India’s closest partner in West Asia is strong diaspora of Indian community, which has been the most significant contributor to the UAE’s economy since the country was formed in 1971. The diaspora also contributes about 18% of India’s global remittances.
  • New developments: There are emerging strategic bond across newer sectors fintech, clean energy and climate action, food security, digital payments, investments, defence and cyber security and education.
  • Mutual values of cooperation: There is a mutual value of tolerance and pluralism, and “shared heritage of humanity” which serves as the most significant bonds between the two countries. India-UAE ties are also built on a bedrock of history and cultural engagement that includes centuries-old maritime trade.

ISSUES:

  • Trade Barriers Impacting Indian Exports: Non-tariff barriers (NTBs) like Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT), notably mandatory Halal certification, have impeded Indian exports, particularly in sectors such as poultry, meat, and processed foods. These barriers have led to a significant decline in processed food exports to the UAE by almost 30% in recent years.
  • Chinese Economic Influence: China’s “Cheque Book Diplomacy,”characterized by offering low-interest loans, has overshadowed Indian economic endeavours in the UAE and the broader Middle East.
  • Certain frictional points: While India’s technological prowess and the UAE’s positioning as a trade and industry hub bring complementarities, the changes in their polity and societies bring possible friction points.
  • Concern over secularism: UAE as a theocratic monarchy seeks to democratise its governance and have a more pluralistic system, such as the decision on the temple in Abu Dhabi has expressed concern over the rise of majoritarian and sectarian forces in India.

THE WAY FORWARD:

  • Streamline trade flows: India and the UAE should work together to address non-tariff barriers that impede Indian exports, particularly in sectors such as processed foods. Both countries can engage in dialogues to streamline regulations and facilitate smoother trade flows.
  • Increasing investment: India can boost its economic presence in the UAE by increasing investments in key sectors and exploring opportunities for joint ventures and partnerships. Fostering a conducive business environment and promoting entrepreneurship can attract more Indian businesses to the UAE.
  • Counter Chinese influence: India and the UAE can collaborate to counter Chinese economic influence in the region by promoting transparency, sustainability, and fair business practices.
  • Addressing concern of migrants: Both countries should work towards improving the rights and welfare of migrant workers in the UAE, including reforming the Kafala system. It can be done by ensuring fair wages, decent living conditions, and protecting workers’ rights.

THE CONCLUSION:

India and the United Arab Emirates share good bilateral relations and India’s recent proactive diplomacy in West Asia has seen the emergence of the UAE as a significant partner. Even though the relations between India and the UAE are acquiring new heights, there are a few challenges and bottlenecks that need to be addressed if the true potential of the bilateral relationship is to be achieved.

UPSC PREVIOUS YEAR QUESTION

Q. The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (2017)

MAINS PRACTICE QUESTION

Q. How has India-UAE relationship progressed since its inception and highlight the significance and associated frictions of the relationship. Suggest the measures to boost the relationship further, discuss in the context of newer developments in the relationship.

SOURCE: https://www.thehindu.com/opinion/editorial/ties-across-the-sea-the-hindu-editorial-on-the-india-uae-close-relationship/article67860741.ece




BRAVE NEW WORLD: ON THE INDIA-EUROPEAN FREE TRADE ASSOCIATION AGREEMENT AND IPR

THE CONTEXT: As the draft of the Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) has been finalised. There is a strong likelihood that India and the European Free Trade Association (EFTA) would soon enter into a free trade deal.

WHAT IS EUROPEAN FREE TRADE ASSOCIATION (EFTA)?

  • The European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland.
  • It was set up in 1960 by the Stockholm Convention for the promotion of free trade and economic integration between its members.
  • The main tasks of the association are threefold:
  • Maintaining and developing the EFTA Convention which regulates economic relations between the four EFTA states.
  • Managing the Agreement on the European Economic Area (EEA Agreement), which brings together the Member States of the European Union and three of the EFTA States – Iceland, Liechtenstein and Norway – in a single market, also referred to as the “Internal Market”.
  • Developing EFTA’s worldwide network of free trade agreements.

What is India- EFTA trade agreement?

  • It is a broad-ranging agreement that is being negotiated between India and the four countries since 2008 to increase investment by these countries in India and reduce tariffs, on a range of exports from these countries.
  • Trade and Economic Partnership Agreement (TEPA) is the name of free trade negotiations between India and EFTA Countries.
  • Over the past two decades, the total trade between the EFTA States and India has been growing steadily. In 2022, the combined EFTA-India merchandise trade surpassed USD 6.1 billion.
  • The primary imports to the EFTA States consisted of organic chemicals (27.5%), while machinery (17.5%) and pharmaceutical products (11.4%), excluding gold, constituted the main exports to India.

ISSUES:

  • IPR rights: There is a bone of contention relating to intellectual property rights and has persisted as an issue since 2008.
  • Constant tussle between inventors and generic drug companies: There is a constant tussle between the inventors and the generic-drug companies over the issue of affordability. The nature of the pharma industry costs much to discover a useful effective drug and relatively little to make generic copies of it.
  • Issue of data exclusivity: Data exclusivity is an embargo clause that puts a minimum of six-year embargo on clinical trial data generated during the testing and development of a drug. Data exclusivity also applies to drugs not patented in India. This ensures adequate Intellectual Property Rights protection for the original drug manufacturers and incentivising innovation and R&D. However, it hampers the development of cheap generic drugs in the developing countries, particularly India and decreases the accessibility and affordability of latest drugs, hampering healthcare outcomes.

THE WAY FORWARD:

  • Invest in research: India’s rise in the drug manufacturing chain in the last few decades means that it must invest in an ecosystem that can conduct ethical drug trials and make new molecules and therapeutics from scratch. The government must invest in fundamental research to be able to develop reliable drugs. It can be done by providing grants or incentives to pharmaceutical companies to invest in research and development of generic versions of essential medicines.
  • Address the monopoly of the west: There is a need to change the perception and situation that drug development do not remain confined to the west. For example, during covid 19 pandemic a lot of development of several novel technology approaches to developing vaccines was seen in India.
  • Utilising anti-counterfeiting technologies for counterfeit drugs: It can be done through imaging technologies, variable data printing of unique numbers or barcodes with speciality inks, including invisible inks, and with RFID.
  • Strong regulatory framework:There is a need to strengthen regulations that ensure the safety, quality, and efficacy of generic medicines. It can be done by creating a clear approval process for generic drugs to enter the market.

THE CONCLUSION:

India has firmly rejected the demand from four European nations in the EFTA bloc for the inclusion of a ‘data exclusivity’ provision in proposed free trade agreements, citing its commitment to protecting the interests of the domestic generic drugs industry. As negotiations with EFTA progress, India remains focused on promoting fair and equitable trade relations while upholding its principles of protecting domestic industries.

UPSC PREVIOUS YEAR QUESTION

Q. In the present geo-political scenario, the EU and India appear to be natural partners and they need to leverage existing opportunities. Discuss. (2021)

MAINS PRACTICE QUESTION

Q. India’s firm stance against the inclusion of data exclusivity provisions in FTAs reflects its commitment to safeguarding the interests of its generic drug industry. Comment.

SOURCE: https://www.thehindu.com/opinion/editorial/brave-new-world-on-the-india-european-free-trade-association-agreement-and-ipr/article67853988.ece




THE RISE OF ‘INTELLIGENCE DIPLOMACY’ IN A TIME OF GLOBAL SECURITY CHALLENGES

THE CONTEXT: India has applied new diplomatic tactics based on intelligence, meetings, consultations, and naval diplomacy. Such approaches are evidence of India’s movement from seclusion toward integration into the global security dialogue. Of importance, too especially, is India’s movement towards fruitful intelligence cooperation and modernizing its intelligence agencies.

ISSUES:

  • Intelligence Diplomacy: Intelligence diplomacy is the policy priority, so India shares the data with the allied countries’ governments and security agencies. This suggests that India is moving from isolationist to mutually intelligent relationships.
  • Conference Diplomacy: India’s participation in the conference diplomacy in the form of the Raisina Dialogue, which is an event supported by the Observer Research Foundation and the Ministry of External Affairs, creates an avenue for the country to influence the global strategic discourse and build the transnational networks.
  • Naval Diplomacy: The Milan Naval Exercise in the Bay of Bengal manifests India’s naval diplomacy, a primary military diplomacy tool India uses to promote regional cooperation and security and highlight India’s strategic relevance in the Indo-Pacific.
  • Expansion of International Engagements: The paper focuses on the fast boost in global communities involved in international affairs, which provides the grounds for the emergence of think tanks and media outlets discussing foreign and security policies.
  • Modernization of Intelligence Agencies: India’s intelligence diplomacy is also an integral part of a broader effort at the modernization of intelligence agencies, which date back to the turn of the 19th century, like the Intelligence Bureau.
  • Global and Regional Security Challenges: Employing Indian diplomatic skills, including naval and intelligence diplomacy, answers the many new risks to world peace, which are deepened military crises, economic stress, and the return of great power rivalry.

THE WAY FORWARD:

  • Enhance Multilateral Intelligence Sharing: India should continue enhancing intelligence cooperation with partners with similar outlooks, such as the “Five Eyes” agreement, to improve collective security and, therefore, be able to respond better and more coordinated to threats.
  • Adopt Agile Global Expansion Strategies: India must take a light footprint approach in its external relations and concentrate on local partnerships with stakeholders while using human resources well to gain benefits.
  • Prepare for Complex Threats: India should face variegated security challenges, such as cyber threats and terrorism, by upgrading its defence capability and resilience.
  • Leverage Conferences for Conflict Prevention: India should use conference diplomacy as a potential method for conflict prevention & resolution, bringing everyone to the table and making them talk in a neutral setting.
  • Enhance Maritime Infrastructure: Investing in maritime infrastructure and capabilities will strengthen India’s naval diplomacy and bring a more robust Indian presence and influence in strategically significant water bodies.
  • Invest in Training and Development: The intelligence service’s employees’ skills and capabilities should be constantly developed through continuous training and the latest technology.

THE CONCLUSION:

India’s strategic engagement in intelligence sharing, international conferences, and naval exercises demonstrates its commitment to addressing global and regional security challenges. India’s way forward involves enhancing multilateral intelligence sharing, leveraging conference diplomacy for conflict resolution, and expanding naval diplomacy efforts to strengthen its position in the Indo-Pacific region.

UPSC PAST YEAR QUESTIONS:

Q.1 The sea is an essential Component of the Cosmos’ Discuss, considering the above statement, the role of the IMO (International Maritime Organisation) in protecting the environment and enhancing maritime safety and security. (2023)

Q.2 What are the maritime security challenges in India? Discuss the organizational, technical, and procedural initiatives to improve maritime security. (2022)

MAINS PRACTICE QUESTION:

Q.1 Examine the role of ‘intelligence diplomacy’ in India’s foreign policy and its significance in the context of global and regional security challenges. Discuss how India’s engagement in ‘conference diplomacy’ and ‘naval diplomacy’ complements its intelligence diplomacy efforts.”

SOURCE: https://indianexpress.com/article/opinion/columns/intelligence-diplomacy-india-global-security-maritime-raisina-dialogue-9169519/




ASHOK GULATI WRITES ON FARMERS’ PROTEST: POLICIES FAVOUR THE CONSUMER, NOT THE PRODUCER

THE CONTEXT: Farmers in India, particularly from Punjab, are protesting for higher income stability through demands such as legally binding minimum support prices based on the Swaminathan formula. They also seek loan waivers, pensions, and wage reforms. The situation is fraught with economic and political complexities, especially during elections.

THE ISSUES:

  • Demand for Legal Guarantee of MSP: Farmers demand that the Minimum Support Prices (MSPs) be legally binding to ensure they receive a fair price for their produce. They want MSPs fixed according to the Swaminathan formula, which suggests a 50% profit over the comprehensive cost (Cost C2).
  • Current MSP Formula: The current government policy sets MSP at a minimum of 50% margin over the Cost A2+FL, which does not include imputed rent on owned land or interest on owned capital. Farmers are demanding a shift to the Cost C2 calculation, which would raise MSPs by approximately 25 to 30% for most crops.
  • Additional Economic Demands: Beyond MSP, farmers are also demanding loan waivers, pensions for farmers and agricultural laborers, a minimum wage rate of Rs 700/day, and the inclusion of MGNREGA workers to work on farmers’ fields.
  • Fiscal and Economic Implications: Accepting the farmers’ demands could significantly affect the government’s finances (fiscal pressure) and lead to food inflation.
  • Need for Diversification: The future of Indian agriculture and the potential for increasing farmers’ incomes lies in diversifying into sectors like livestock, fisheries, and horticulture, which have been growing without MSP support.
  • Policy Reforms: Removing bans on agri-exports, stocking limits on private trade, and selling wheat and rice below the economic cost of the Food Corporation of India (FCI) are considered anti-farmer policies.
  • Subsidy Reorientation: There is a call to reorient subsidies towards producers rather than consumers, suggesting that a more significant portion of subsidies should support farmers directly, for example, through a price stabilization fund or policies like PM-Kisan.
  • Balancing Interests: Policymakers need to balance the interests of producers and consumers, especially in election times when various groups exert pressure on their economic well-being.
  • Rational Policy Making: Rational policy-making is advised to keep emotions and politics out of negotiations and focuses on the long-term sustainability of the agricultural sector and the economy.

THE WAY FORWARD:

  • Legalization of MSPs: While making MSPs legally binding has been proposed, the government must carefully evaluate the fiscal implications. This could be selectively implemented for crops where market volatility is extremely high, providing a safety net for farmers while avoiding blanket policies that might strain the economy.
  • Implementing the Swaminathan Committee Recommendations: This involves fixing MSPs at levels that ensure a fair profit margin for farmers based on the comprehensive cost of production (Cost C2), thus incentivizing farming as a profession.
  • Expanding MSP to More Crops: MSP could be cautiously expanded to include additional crops, potentially even beyond the traditional 23 crops, to ensure a wider safety net for farmers.
  • Rationalizing Subsidies: Redirect subsidies from consumer-focused to producer-focused, ensuring a larger share of financial support is directed toward farmers, thereby aiding them in lowering production costs and increasing income.
  • Investment in Agriculture Infrastructure: Improve storage, transportation, and marketing infrastructure to reduce post-harvest losses, give farmers better market access, and get better prices for their produce.
  • Strengthening Farmer Organizations: Encourage the formation and strengthening of farmer cooperatives and producer organizations that can empower farmers to have greater control over their products’ production, processing, and marketing.

THE CONCLUSION:

Reorienting policies to support agricultural diversification, productivity, and market access is the way forward to increasing farmer incomes sustainably. Rationalizing subsidies, investing in infrastructure, and creating equitable trade policies could balance farmer demands with economic pragmatism.

UPSC PAST YEAR QUESTIONS:

Q.1) What are the main bottlenecks in India’s upstream and downstream processes of marketing agricultural products? (2022)

Q.2) What are the challenges and opportunities of the food processing sector in the country? How can the farmers’ income be substantially increased by encouraging food processing? (2020)

Q.3) Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India (2015)

Q.4) Given the declining average size of land holdings in India, which has made agriculture non-viable for most farmers, should contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons. (2015)

Q.5) There is also a point of view that agriculture produce market committees (APMCs) set up under the state acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine. (2014)

MAINS PRACTICE QUESTION:

Q.1) Critically assess India’s current agricultural subsidies regime concerning its producer vs. consumer focus. Discuss a reoriented subsidy policy that could align to double farmers’ incomes while ensuring food affordability for consumers.

SOURCE:

https://indianexpress.com/article/opinion/columns/faremer-protest-farmer-income-haryan-punjab-farmers-at-delhi-borders-msp-legal-guarantee-9168348/




AFTER SC ELECTORAL BOND VERDICT, TIME TO CLEAN UP

THE CONTEXT: The Supreme Court’s judgment on electoral bonds highlights the need for electoral finance reform, addressing money’s political influence and the legal regime’s dichotomy. The judgment emphasizes the importance of transparency and consultation in the democratic process.

THE ISSUES:

  • Influence of Money on Politics: The Supreme Court’s judgment highlights money’s direct and indirect influence on electoral politics, which can create barriers to entry for new candidates and political parties, particularly those representing marginalized communities.
  • Regulation Discrepancies: There is a dichotomy in the legal regime where contributions to political parties are regulated but not to individual candidates. Conversely, the law regulates expenditures by candidates but not by political parties.
  • Need for Comprehensive Regulation: Experts suggest that future regulation must address four key aspects: regulation of donations, expenditure limits, public financing, and disclosure requirements.
  • International Comparisons: Different countries have different norms and experiments with electoral finance. For example, the US restricts contributions based on the donor type but does not regulate political party expenditure, whereas the UK does the opposite.
  • Public Financing: The text mentions Germany’s model of public financing based on a party’s importance and the “democracy vouchers” experiment in Seattle, US, as innovative approaches to campaign finance.
  • Disclosure vs. Anonymity: The balance between transparency and anonymity is a contentious issue, as seen in the rejection of electoral bonds in India, which aimed to anonymize donations to political parties.
  • Lack of Consultation: The government’s decision to implement electoral bonds without consultation with other political parties or the public is seen as a significant oversight.

THE WAY FORWARD:

  • Regulation of Donations: There should be clear rules on who can donate and how much they can donate to political parties to prevent undue influence by a few large donors. This could include limiting contributions from individuals and corporations and banning certain types of donors, such as foreign entities.
  • Expenditure Limits: Implementing expenditure limits for political parties can prevent a financial arms race and ensure a level playing field. For example, the UK has a cap on how much political parties can spend per seat, which could be a model to consider.
  • Public Financing: Exploring public financing options, such as the German model, where parties receive funds based on their importance in the political system or the “democracy vouchers” system used in Seattle, US, where voters are given vouchers to donate to candidates of their choice.
  • Disclosure Requirements: Strengthening disclosure requirements to ensure transparency in political donations. This would involve making it mandatory for political parties to disclose their funding sources, allowing voters to make informed decisions. The International Institute for Democracy and Electoral Assistance (IDEA’s) Political Finance Database is a global resource that includes comparative political finance data. It covers regulations on political finance, including disclosure requirements. The database outlines rules on financial reporting, oversight of political finance regulations, and sanctions available for breaches, providing a comprehensive view of disclosure practices in various countries.
  • Strengthening Electoral Institutions: Increasing funding for the Election Commission of India (ECI) and changing its funding status to ensure its independence and effectiveness in overseeing elections and enforcing regulations. The legal backing of the Model Code of Conduct (MCC) could be enhanced to make its provisions enforceable by law, allowing for appropriate penalties for violations by political parties or candidates.
  • Addressing Populism and Vote-Buying: Introducing legislation to cap populist announcements by political parties, like the Fiscal Responsibility and Budget Management Act, could help create a level playing field and prevent unsustainable populist measures. The popular initiative was undertaken in the Philippines to combat vote-selling. This initiative involved asking voters to make a simple, unenforceable promise not to accept money from politicians or to promise to vote according to their conscience, even if they do accept money.

THE CONCLUSION:

The ruling against electoral bonds calls for a comprehensive approach to electoral finance reform, including regulation of donations, expenditure limits, public financing, and disclosure requirements. Broad consultations with stakeholders are crucial to ensure the continued health of India’s democracy.

UPSC PAST YEAR QUESTIONS:

Q.1 To enhance the quality of democracy in India, the Election Commission of India has proposed electoral reforms in 2016. What are the suggested reforms, and how far are they significant to make democracy successful? (2017)

Q.2 In light of the recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India? (2018)

Q.3 Judicial Legislation is antithetical to the doctrine of separation of powers as envisaged in the Indian Constitution. In this context, justify filing many public interest petitions praying for issuing guidelines to executive authorities. (2020)

MAINS PRACTICE QUESTION:

Q.1 Considering the Supreme Court’s recent judgment on electoral bonds, critically examine the role of transparency in election financing in India. Evaluate the impact of this judgment on the existing legal framework for political donations and expenditures.

SOURCE:

https://indianexpress.com/article/opinion/editorials/express-view-after-sc-electoral-bond-verdict-time-clean-up-9165700/https://indianexpress.com/article/opinion/40-years-ago/february-17-forty-years-ago-ambush-on-crpf-9165720/




SC’S ELECTORAL BONDS JUDGMENT: A VITAL VERDICT

THE CONTEXT: Recently, the Supreme Court struck down the Electoral Bond (EB) scheme of political funding, declaring it to be “unconstitutional” because it completely anonymized contributions made to political parties. It is being welcomed especially because it is anchored in the citizen’s right to know.

ELECTORAL BONDS:

  • These are bearer banking instruments that do not carry the name of the buyer or payee, go for sale in 10-day windows in the beginning of every quarter in January, April, July and October besides an additional 30-day period specified by the central government during the Lok Sabha election years.
  • It was introduced in 2018 and are available for purchase at any SBI branch in multiples of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh and ₹1 crore and can be bought through a KYC-compliant account.
  • There is no limit on the number of electoral bonds that a person or company can purchase. Donations made under this scheme by corporate and even foreign entities through Indian subsidiaries enjoy 100% tax exemption while identities of the donors are kept confidential both by the bank as well as the recipient political parties. The public sector bank is obligated under the scheme to disclose the details only pursuant to a court order or a requisition by law enforcement agencies.

THE SUPREME JUDGEMENT ON ELECTORAL BONDS

  • The five bench SC judgment headed by Chief Justice D Y Chandrachud is based on petitions filed by Association for Democratic Reforms (ADR), non-profit Common Cause, Congress leader Jaya Thakur, and the CPI (M), among others.
  • The petitioners had argued that either the scheme must go on account of violating people’s right to know and affecting free and fair elections, or the court must direct for full disclosure of the purchasers and donors of EBs.

POINTS MADE IN THE JUDGEMENT:

  • The judgement ruled that amendments made in the Representation of the People Act, Income Tax Act, and Companies Act through the 2017 Finance Act violated the constitutional right of the electors.
  • Violates Article 14: Permitting unlimited corporate contributions to political parties was violative of Article 14 (right to equality) as it highlighted that it authorized unconstrained influence of companies in the electoral process.
  • Violates free and fair election: This is violative of the principle of free and fair elections and political equality captured in the value of one person-one vote.
  • Violate Article 19(1)(a): The electoral bond scheme is violative of Article 19(1)(a) as it infringes upon the right to information of the voter by anonymizing contributions through electoral bonds.
  • Nexus between money and politics: Contradicting the government statement that donor anonymity was necessary to shield contributors from potential retribution, the judgement noted that that financial contributions to a political party would lead to a close nexus between money and politics.
  • Fails proportionality test: The judgment underscored that voters’ right to know supersedes anonymity in political party funding, and that the EB scheme fails to meet the balancing prong of the proportionality test.
  • Violates the right to information: The scheme hides the source of funding of political parties from the public, which is a fundamental right under Article 19(1)(a). The scheme also enables black money, foreign funding, and corporate influence in politics, which harm the public interest and the sovereignty of the nation.
  • Violates the principle of equality: The scheme discriminates between different political parties based on their vote share, giving an unfair advantage to the ruling party and the major opposition parties, while excluding the smaller and regional parties. The scheme also creates a disparity between the donors and the voters, as the former can sway the policies and decisions of the political parties, while the latter are kept in the dark.
  • Violates the constitutional scheme of electoral reforms: The scheme goes against the constitutional aim of curbing corruption and criminalization of politics. The scheme is also contrary to the recommendations of various committees and commissions that have called for more transparency and disclosure in political funding.

SIGNIFICANCE OF JUDGEMENT:

  • Transparency and accountability of political funding: The judgment will ensure that the public will have access to the information about the source and amount of funding received by the political parties through electoral bonds. This will enable the public to scrutinize and hold the political parties accountable for their performance and conduct.
  • Reduce the influence of money: The judgment will curb the influence of money and corporate power in politics, as the donors will no longer be able to hide their identity and agenda behind the veil of anonymity.
  • Level playing field for all political parties: The judgment will level the playing field for all political parties, as they will no longer be discriminated against based on their vote share or popularity. This will enable the smaller and regional parties to compete with the ruling party and the major opposition parties on an equal footing and offer a genuine choice to the voters.
  • Democratic setup: “The voters’ right to know and access to information is too important in a democratic set-up so as to curtail and deny ‘essential’ information on the pretext of privacy and the desire to check the flow of unaccounted for money to the political parties. While secret ballots are integral to fostering free and fair elections, transparency not secrecy in funding of political parties is a prerequisite for free and fair elections. The confidentiality of the voting booth does not extend to anonymity in contributions to political parties.
  • Undo corruption: The bench held that the information about funding of political parties is essential for the effective exercise of the choice of voting to identify corruption and governance information. It ordered full disclosure of donors and recipients of EBs issued since April 2019 on the website of the Election Commission of India (ECI) by March 13, 2024. It directed the State Bank of India the only designated EB-issuing bank to stop the issuance of EBs, adding the bank will submit details of EBs purchased since April 12, 2019, till date to the poll body by March 6.

THE WAY FORWARD:

  • State funding: The Indrajit Gupta Committee on State Funding of Elections has supported partial state funding of recognised political parties. State funding has proved its effectiveness in a number of countries like Germany, Japan, Canada, Sweden etc.
  • Stringent legislations: There is a need for effective regulation of political financing along with bold reforms to break the vicious cycle of corruption and erosion of quality of democratic polity. It is crucial to plug the loopholes in the current laws to make the entire governance machinery more accountable and transparent.
  • Strengthening Election commission: There is a need to strengthen the role of Election Commission by enabling suitable laws and creating healthy political environment. The EC should increase its own capacity in terms of empowering staff and developing infrastructural and logistical strength.
  • Political party auditing: Venkatachaliah Committee Report (2002) recommended strict regulatory frameworks for auditing and disclosure of party income and expenditure along with state funding.

THE CONCLUSION:

The Supreme Court’s judgment on scrapping of electoral bonds is a historic and landmark verdict that upholds the constitutional rights and values of the citizens and the democracy. This decision will enhance the transparency and accountability of political funding and reduce the influence of money and corporate power in politics and will create level playing field for all political parties.

UPSC PREVIOUS YEAR QUESTION

Q. Whether electoral bonds are effective in ensuring fair, just and open elections? Discuss the various concerns regarding electoral bonds. (2022)

MAINS PRACTICE QUESTION

Q. Court striking down the electoral bond scheme is a landmark moment as it affirms principles of transparency and probity, and the people’s right to know. Comment.

Source: https://indianexpress.com/article/opinion/editorials/express-view-on-scs-electoral-bonds-judgment-a-vital-verdict-9164121/




WHY 2024 COULD BE THE ‘MAKE-OR-BREAK’ YEAR FOR DEMOCRACY

THE CONTEXT: The forthcoming year is being cast as a pivotal moment for global democracy, as elections in nearly 60 countries are posed to test the resilience of democratic institutions. Rising autocratic tendencies and misinformation’s pervasive impact on the electoral process’s sanctity have exacerbated tensions.

THE ISSUES:

  • Global Democratic Trends and Election Impact on International Relations: The global democratic trajectory is under considerable strain, as indicated by the upcoming elections in about 60 countries. These electoral battles in nations like the USA, Russia, India, and Taiwan are set to influence internal political landscapes, international alliances, and economic ties—particularly the impact of democratic backsliding and the rise of authoritarianism on global governance.
  • Role of Superpowers in Shaping World Democracy: The U.S. elections, potentially featuring a contest between Joe Biden and Donald Trump, could significantly affect global democratic norms with implications on multinational agreements, human rights issues, and the liberal world order. In contrast, Russia’s election appears to continue Putin’s governance, which could further affect its foreign policy stance—these developments concern international law, trade policies, and geopolitical strategies.
  • Influence of Regional Powers on Regional Stability: Elections in neighbouring countries like Bangladesh, Bhutan, and, crucially, Pakistan, where democratic institutions face challenges, have direct implications for India’s foreign policy and regional stability in South Asia. The nature of governance in these countries affects bilateral relations, cross-border security, and economic interactions, forming an essential aspect of regional geopolitics.
  • The Test for Democracies in South Asia and Africa: Scrutiny has been directed towards the elections in South Asia, including the recent polls in Pakistan, which have reportedly been marred by disruptions and controversies, casting a shadow over the democratic credentials of the region. Additionally, the legislative elections in South Africa, with the ANC facing numerous challenges, are pivotal. These political developments could critically influence the stability and democratic fabric of their respective regions.
  • Euroscepticism and the Shift in European Union Politics: The European parliamentary elections are portrayed as a battleground where the surge of right-wing populism is testing the core democratic values of the European Union. It has been outlined that political changes in countries like the Netherlands, Hungary, and Italy may foreshadow broader shifts in the EU’s political spectrum, with potential implications for its governance and unity.
  • The State of Electoral Democracy and Civil Liberties: Democracy Index ratings highlight how different governance models are categorized and allow for comparative analysis of political freedoms, civil liberties, and legitimate electoral processes. For instance, Britain remaining a full democracy while others like Mexico face democratic backsliding is a crucial point in the spectrum of political systems and their conformity to democratic norms.
  • Autocracy and Misinformation: The surge in disinformation and the misuse of social media have become widespread, contributing to a global environment where the truth is often manipulated. Democracies have been shown to be particularly vulnerable, with countries like the U.S., Brazil, Germany, and Sweden mentioned as examples where ‘fake news’ is becoming more prevalent.
  • Gender and Politics in Mexico: The upcoming presidential elections in Mexico, anticipated to result in appointing the nation’s first female president, highlight gender dynamics in leadership roles. The evolving political landscape in Mexico has been characterized by democratic backsliding, underlining the challenges emerging economies face in maintaining the democratic ethos.
  • Cases of Indonesia and Taiwan: In Indonesia, corrupt practices and concerns regarding civil liberties have been implied to erode the quality of democracy, as reflected in the Democracy Index. Similarly, Taiwan’s elections under external pressure underscore the island’s complex political situation and its broader implications for regional security.

THE WAY FORWARD:

  • International Standards of Electoral Integrity: Countries can collaborate with international bodies like the United Nations to invite independent election monitors. These monitors would abide by international election standards to certify processes are free, fair, and transparent. Establishing clear guidelines and consequences for electoral malpractice can help deter fraudulent activities.
  • Civic Education: Strengthening civil society through education about democratic rights and responsibilities can empower citizens to demand greater accountability. Civic education programs could focus on understanding electoral processes, the importance of voting, and the role of dissent in a democracy.
  • Media Regulation and Oversight: Governments can collaborate with independent watchdogs to regulate the spread of misinformation. Transparent oversight mechanisms need to be established where flagged content is reviewed and, if found violating civic standards, accordingly, addressed without infringing on freedom of speech.
  • Inclusive Governance: To address the underlying issues that drive populism, such as economic inequality and cultural anxieties, policies that focus on inclusive governance are vital. These might include progressive tax systems, increased funding in social services, and investment in communities left behind by globalization.
  • Regional Alliances: Strengthening regional alliances with a democracy clause for membership, such as the European Union, can serve as a collective bulwark against the rising tide of authoritarianism and ensure a regional approach to upholding democratic norms.
  • Legislative Quotas: Legal frameworks that mandate a minimum representation of women in political positions can ensure gender diversity. These quotas could be implemented within government bodies and the political parties themselves. Initiatives aimed at training women for leadership roles in public service can help overcome gender barriers. By providing mentorship and advocacy training, these programs could bolster women’s participation in the highest echelons of political decision-making.
  • Economic Reform Policies: Implementing economic reforms that address the wealth gap can create a more equitable society, which is the bedrock of a stable democracy. Economic stability and Constructing job creation strategies can combat the disenfranchisement that often leads to anti-democratic sentiments.

THE CONCLUSION:

Considering electoral autocracy and disinformation challenges, steadfast measures must be advocated and implemented to safeguard democratic values. The onus is placed on international coalitions and domestic mechanisms to fortify the foundational principles of free and fair elections, ensuring that democracy not only endures but thrives.

UPSC PAST YEAR QUESTIONS:

Q.1) Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (2016)

Q.2) Strength, peace, and security are pillars of international relations. Elucidate. (2017)

Q.3) The will to power exists, but it can be tamed and be guided by rationality and principles of moral duty.’ Examine this statement in the context of international relations. (2020)

MAINS PRACTICE QUESTION:

Q.1) 2024 is anticipated to be a decisive moment for global democracy as numerous countries are scheduled to conduct primary electoral contests. Discuss the role that international organizations can play in mitigating the challenges posed by the rise in authoritarianism and misinformation.

SOURCE:

https://www.thehindu.com/news/international/world-democracy-elections-us-biden-trump-explained-india-mexico-pakistan-europe/article67744886.ece




FARMING CONSENSUS: ON THE GOVERNMENT AND THE FARMERS ON PROTEST

THE CONTEXT: Farmers from Punjab in thousands have assembled at three points along the border with Haryana, where they have been stopped from marching to Delhi. The protesters have a range of demands including legally guaranteed MSP for crops.

MORE ON THE NEWS:

  • Some of these demands were raised during their earlier protest in 2021-22, which was called off after the central government withdrew three controversial laws that had sought to reform the agriculture sector.
  • The protest now is spearheaded by the Sanyukt Kisan Morcha (SKM) (non-political), a splinter group of the body that had led the earlier protest. The body has influence in the interest groups across Haryana, Punjab and western U.P. and Rajasthan.
  • There are at least three other strands of protests gathering strength.

1. Farmers in western U.P. affected by the Jewar airport project and Yamuna Expressway are up in arms.

2. In Haryana’s Sonipat, farmers are protesting land acquisition for power cables.

3. The original SKM and several trade unions have called for a national rural and industrial strike with overlapping and additional demands that include the repeal of four labour codes.

Demands of farmers:

  • The headline demand in the farmers’ 12-point agenda is for a law to guarantee MSP for all crops, and the determination of crop prices in accordance with the Dr M S Swaminathan Commission’s report.
  • The other demands are:

1. Full debt waiver for farmers and labourers

2. Implementation of the Land Acquisition Act of 2013, with provisions for written consent from farmers before acquisition, and compensation at 4 times the collector rate

3. Punishment for the perpetrators of the October 2021 Lakhimpur Kheri killings

4. India should withdraw from the World Trade Organization (WTO) and freeze all free trade agreements

5. Pensions for farmers and farm labourers

6. Compensation for farmers who died during the Delhi protest, including a job for one family member

7. The Electricity Amendment Bill 2020 should be scrapped

8. 200 (instead of 100) days’ employment under MGNREGA per year, daily wage of Rs 700, and scheme should be linked with farming;

9. National commission for spices such as chilli and turmeric; etc.

ISSUES:

  • Legal guarantee of MSP unlikely: The government has opened talks with the farmers but a legal guarantee of MSP appears unlikely as government is silent on this matter. The Union Ministry of Agriculture and Farmers Welfare notified a committee headed by former agriculture secretary Sanjay Agrawal to make the MSP more effective and transparent. However, the committee’s terms of reference also do not include any legal guarantee to MSP, which was one of the key demands of the farmers protest of 2020-2021.
  • Unsustainable farm practices: Surplus producers of grain have benefited from the MSP scheme, but the scheme bypasses subsistence farmers in poorer regions. This uneven geographical spread of procurement has also led to unsustainable farm practices in some areas.
  • Majority of farmers remain uncovered: According to a NSSO survey, less than 6% of Indian farmers i.e over 9 crore agricultural households have benefited directly from selling their wheat or rice under the MSP regime.
  • Procurement is concentrated in a few states:The procurement of grains is concentrated only in a few states. For example, Punjab, Haryana, western UP, Chhattisgarh and Telangana for paddy; Telangana and Maharashtra for cotton, etc.
  • Poor implementation of the MS Swaminathan Commission recommendations: It recommended that MSP should be at least 50% more than the weighted average cost of production which is not in the sight of implementation.

THE WAY FORWARD:

  • Consensus and consultation: The Centre must address grievances of farmers through talks. According to the Union Agriculture Minister, there are some issues on which consensus has been reached. However, some issues need a permanent resolution and there should be a committee to address them.
  • Revamping of public support: There is a need for revamping of the public support for farming, which is essential for national food security. This can be achieved better through wide political consultation and by encouraging the beneficiaries of the current system to diversify production and increasing productivity.
  • Creation of Agriculture infrastructure: The government should make efforts to enable farmer participation in the market by creating modern world-class agriculture infrastructure like Cold Storage facilities.
  • Crop diversification: There is a need for mapping of existing cropping patterns of agro-ecological zones of producer and consumer states. Strategy for diversification policy needs to change the cropping pattern according to the changing needs of the country.

THE CONCLUSION:

Though, the MSP-based procurement by the Food Corporation of India has been the bedrock of food security but there is an urgent need for its reform as the farm sector needs a new model of public support. It cannot be left to the mercy of the market. The government should lead the efforts to create a national consensus on this question.

UPSC PREVIOUS YEAR QUESTION

Q.1 The Minimum Support Price (MSP) scheme protects farmers from the price fluctuations and market imperfections. In the light of the given statement, critically analyse the efficacy of the MSP. (2020)

MAINS PRACTICE QUESTION

Q.1 Discuss the role of Minimum Support Price (MSP) in addressing the issue of farmers’ income and agricultural productivity. Suggest alternative ways to ensure farmers income and their livelihoods.

SOURCE: https://www.thehindu.com/opinion/editorial/farming-consensus-on-the-government-and-the-farmers-on-protest/article67846219.ece




INDIA MAY BE ON THE VERGE OF REDEFINITION OF DEMOCRACY

THE CONTEXT:

There is a suppression of dissent and the manipulation of law enforcement and public sentiment by the ruling party in India. They conflated the ruling party with government machinery, leading to a near-perfect alignment of political agendas with law enforcement actions. This situation raises concerns about the erosion of democratic principles and the rise of majoritarianism, posing significant challenges to the functioning of democracy in the country.

THE ISSUES:

  • Freedom of Expression (Article 19(1)(a)): The incidents described highlight the misuse of these restrictions to stifle dissent and criticism of the ruling party, raising questions about the balance between freedom of expression and reasonable restrictions. However, the Indian Constitution guarantees the right to freedom of speech and expression, which is fundamental for the functioning of a democracy. However, this right is subject to reasonable restrictions under Article 19(2) for reasons such as the sovereignty and integrity of India, public order, decency, or morality.
  • Right to Equality (Article 14): This article ensures equality before the law and equal protection of the laws within the territory of India. The selective enforcement of laws and targeting of individuals based on their political views or affiliations challenge the principle of equality and non-discrimination.
  • Right to Life and Personal Liberty (Article 21): The arbitrary detention of individuals, including the complainant and victims in the first incident, infringes upon their right to life and personal liberty, highlighting the need for police reform and accountability.
  • Police Reforms: The Second Administrative Reforms Commission (2007) recommended comprehensive police reforms to ensure that the police act in a politically neutral manner, respecting human rights and the rule of law. The incidents underscore the urgent need to implement these reforms to prevent the misuse of police powers for political purposes.
  • Sedition Law: Various committees, including the Law Commission of India, have discussed the need to reconsider or repeal the sedition law (Section 124A of the IPC), which has been used to criminalize dissent and suppress free speech. The application of sedition charges in situations that do not meet the Supreme Court’s criteria for incitement to violence or disorder reflects the misuse of this colonial-era law.
  • Majoritarianism and Democracy: The Sachar Committee Report (2006) and the Ranganath Misra Commission Report (2007) have addressed issues related to social inclusion and the protection of minority rights. The rise of majoritarianism, as highlighted in the incidents, threatens the pluralistic fabric of Indian society and the principles of secularism and democracy enshrined in the Constitution.

THE WAY FORWARD:

  • Implement Police Reforms: Comprehensive police reforms are crucial to ensure law enforcement agencies operate impartially and are not influenced by political pressures. The recommendations of the National Police Commission, the Padmanabhaiah Committee, and directives from the Supreme Court, such as establishing State Security Commissions and ensuring a minimum tenure for the Director General of Police, should be implemented.
  • Strengthen Freedom of Expression: The Constitution of India guarantees freedom of speech and expression, but it is subject to reasonable restrictions. There is a need to clearly define these restrictions to prevent their misuse against dissenting voices. Legal safeguards should be enhanced to protect the freedom of the press and expression against arbitrary executive actions.
  • Review and Amend Laws Used to Suppress Dissent: Laws such as sedition (Section 124A of the IPC) and national security often used to curb dissent should be reviewed and amended. This would ensure that they are not misused to silence opposition or criticism of the government.
  • Judicial Oversight and Independence: The judiciary safeguards democracy and fundamental rights. Ensuring the independence of the judiciary and its proactive role in checking executive excesses and protecting civil liberties is essential.
  • Encourage Inclusive Dialogue and Tolerance: Initiatives to promote interfaith dialogue, multiculturalism, and tolerance are essential to counter majoritarianism and polarization. Civil society organizations, educational institutions, and the media can significantly foster an inclusive and pluralistic society.
  • Strengthen Civil Society and Media: A vibrant civil society and an independent media are pillars of democracy. Supporting NGOs, activists, and journalists who work to hold the government accountable and provide a platform for diverse voices is crucial for a healthy democracy.

THE CONCLUSION:

Addressing the challenges highlighted requires concerted efforts from the government, judiciary, civil society, and citizens. While legal and institutional reforms are essential, societal changes toward more inclusive, tolerant, and participatory democracy are equally important. The solutions outlined above, drawn from various recommendations and analyses, provide a roadmap for strengthening democracy in India.

UPSC PAST YEAR QUESTIONS:

Q.1 ‘Constitutional Morality’ is rooted in the Constitution and founded on its essential facets. Explain the doctrine of ‘Constitutional Morality’ with the help of relevant judicial decisions. (2021)

Q.2 The Indian party system is passing through a transition phase which looks full of contradictions and paradoxes.” Discuss. (2016)

Q.3 What do you understand by the “freedom of speech and expression” concept? Does it cover hate speech also? Why do films in India stand on a slightly different plane from other forms of expression? Discuss. (2014)

Q.4 The Rules and Regulations provided to all civil servants are the same, yet there is a difference in performance. Positive-minded officers can interpret the Rules and Regulations in Favor of the case and achieve success, whereas negative-minded officers cannot achieve goals by interpreting the same Rules and Regulations against the case. Discuss with illustrations. (2022)

Q.5 Discuss the Public Services Code as recommended by the 2nd Administrative Reforms Commission. (2016)

MAINS PRACTICE QUESTION:

Q.1 Analyze the notion of majoritarianism in Indian democracy. How does it impact the fundamental right to dissent and minority interests, as provided by the Indian Constitution?

SOURCE:

https://indianexpress.com/article/opinion/columns/accessibleindia-can-mughalhistory-inspire-modern-inclusion-9162126




IN CLOSER TIES WITH THE GULF, A SIGNIFICANT WIN FOR INDIAN DIPLOMACY

THE CONTEXT:

The significant transformation of India’s relations with the Gulf countries over the last decade is marked by increased diplomatic engagement, strategic economic partnerships, and enhanced counter-terror and defence cooperation. This transformation is attributed to factors such as diplomatic, political, and religious shifts and the recognition of the Gulf’s capital potential to accelerate India’s economic growth.

THE ISSUES:

  • Diplomatic Engagement: The increased frequency and significance of Prime Minister Narendra Modi’s visits to the Middle East, contrasting it with the previous Indian administration’s less frequent visits. Modi’s diplomacy and the establishment of connections with Gulf leaders are noted as critical changes in India’s approach.
  • Political Domain: The shift from India’s historical support for Arab causes to a broader strategic engagement with the Gulf. This includes forming the I2U2 (India, Israel, UAE, and USA) group and announcing the India-Middle East-Europe Economic Corridor, signaling a radical reorientation of India’s geopolitical engagement with the Middle East.
  • Religious Lens and Pakistan Factor: India’s past tendency to view Gulf relations through a religious lens and the complications arising from Pakistan’s outreach to the region. It notes the recent trend of India discarding this approach, which has led to improved ties with the Gulf, as evidenced by the construction of the BAPS temple in Abu Dhabi and the release of Indian ex-naval personnel by Qatar.
  • Economic and Strategic Shift: The relationship between India and the Gulf has evolved from transactional to strategic, particularly in the economic domain. Recognizing the Gulf’s capital potential to accelerate India’s economic growth and the diversification of the Gulf economies beyond oil.
  • Counter-Terror and Defence Cooperation: There is an expansion of counter-terror collaboration and the potential for deeper defence cooperation between India and Gulf countries. It suggests there is room for growth in military exchanges and joint development of weapons and technologies.
  • Regional and International Impact: The transformation of India-Gulf relations has broader implications for regional peace and prosperity, especially in the Western Indian Ocean, and reflects India’s growing role as a global actor.

THE WAY FORWARD:

  • Diplomatic Engagement: Continued and enhanced diplomatic engagement, including high-level visits, personal connections with Gulf leaders, and a focus on mutual trust and political give and take.
  • Political Domain: A broader strategic engagement with the Gulf, including forming strategic partnerships, economic corridors, and shifting from declaratory positions to pragmatic engagement.
  • Religious Lens and Pakistan Factor: Discarding the historical approach of viewing the region through a religious lens and focusing on building goodwill and cooperation while addressing the impact of Pakistan’s outreach to the Gulf.
  • Economic and Strategic Shift: Leveraging the Gulf’s capital potential to accelerate India’s economic growth, diversifying economic partnerships, and focusing on long-term economic cooperation.
  • Counter-Terror and Defence Cooperation: Deepening counter-terror collaboration and exploring opportunities for enhanced defence cooperation, including joint development of weapons and military technologies.

THE CONCLUSION:

India’s closer ties with the Gulf countries represent a significant win for Indian diplomacy and have radically reorientated India’s geopolitical engagement with the Middle East. There is a need for deeper cooperation with the region in promoting prosperity and peace in the Western Indian Ocean, and the potential for long-term economic partnerships and enhanced defence cooperation cannot be ignored.

UPSC PAST YEAR QUESTIONS:

Q.1) How will the I2U2 (India, Israel, UAE, and USA) grouping transform India’s position in global politics? (2022)

Q.2) India’s energy security is the most important part of its economic progress. Analyse India’s energy policy cooperation with West Asian Countries. (2017)

MAINS PRACTICE QUESTION:

Q.1) India’s evolving relationship with the Gulf countries has witnessed a significant transformation, encompassing diplomatic, economic, and strategic dimensions. In light of this, discuss the factors contributing to this transformation and the potential implications for India’s geopolitical engagement with the Middle East.

SOURCE:

https://indianexpress.com/article/opinion/columns/indian-diplomacy-closer-ties-with-gulf-significant-win-9159128/




WHY INDIA NEEDS DEEP INDUSTRIALISATION

THE CONTEXT: The COVID-19 pandemic changed the way we think about our economic future and globalisation is now in retreat as well. Though, India recovered relatively quickly from the pandemic, yet it has entered a phase of ‘premature deindustrialisation’.

ISSUES:

  • Sustained growth: Industrial policy and strategic state-led economic interventions are back in the world everywhere. The Inflation Reduction Act in the U.S., the European Green Deal, and India’s Atmanirbhar Bharat are prominent examples. However, India’s growth momentum has sustained without much growth.
  • Unequal distribution of growth: The fruits of high growth were shared by a small minority which worsened pre-existing gaps of already unequal society. On the one hand, High-end cars get sold out and on the other hand common people struggle to cope with high food prices. This fault line is built into the structure of India’s growth.
  • Stagnant manufacturing sector: India has not been able to industrialise sufficiently in last 75 years. Its manufacturing share in output and employment has always been stagnant and below 20%, except during the ‘Dream Run, 2003–08’. Even the 1991 economic reforms, which came with the promise of labour-intensive industrialisation, didn’t alter this reality. India’s industrial investment is stagnating, with high levels of unemployment and chronic disguised unemployment. Its trade deficit largely driven by imported goods, has been widening. India is not able to export goods and even lagging in producing the goods its consumers.
  • Poor employment elasticity of services-led growth: India’s experience with services-driven growth since the late 1980s had two negative implications. First, it could not absorb the labour exiting agriculture in the same way that manufacturing would have. Second, the service sector required a large highly skilled workforce that India could not adequately supply. Inequality from services-driven growth is thus much higher than from manufacturing-led growth. The Gini index of inequality for regular wages in the services sector was 44 compared to 35 for manufacturing (Periodic Labour Force Survey, 2021-22).
  • Unequal investment in human capital: Early investments in higher education contributed to the near abandonment of mass school education. These higher education institutions cultivated self-serving elites who played a role in India’s IT “revolution” while contributing to industrial stagnation. Thus, investments in human capital were deeply unequal.
  • Differ in returns to education: The returns to education differ across classes and social groups. School enrolment is high. Higher education is not as inaccessible as it was earlier. But the differential quality of schooling feeds into the quality of higher education, which feeds into labour market outcomes. The high-skill services pitch would suit the traditional elite but not the majority first generation graduates from colleges in rural areas and small towns. The majority of these students reap poor returns on their investments in education. The poor quality of most state-run schools and colleges is closely linked to the elites renunciation of public education. Even as these fault lines are new forms of class divide in India, they reflect older ones rooted in the caste system.
  • A culturally rooted diagnosis: The lack of mass education meant that an important cultural prerequisite for industrialisation was missing. India has looked down upon certain occupations, particularly those that are essential as electrical, welding, etc., partly impeding organic innovation in manufacturing. Industrialists say that India undervalues the vocational skills needed for manufacturing. Certain skills are not valued even if they command higher wages. Artisanal knowledge doesn’t enjoy as much social respect as scholasticism or metaphysical abstraction. Increasing returns and efficiency come from innovation and its diffusion, which are based on mass education and collective absorptive capacity.

THE WAY FORWARD:

  • Need of deep industrialisation: India needs deep industrialisation, not just the service sector, that has the power of changing the foundations of society.
  • Rise of useful knowledge: Economic historian Joel Mokyr suggests that the rise of useful knowledge is key to technological progress and growth in modern economies.
  • Revaluation of culture of growth: A culture of growth also requires the revaluation of labour, production, and technology.
  • High skill driven growth: Focusing on skill development programs tailored to the manufacturing sector can address the skill mismatch and enhance the capabilities of the workforce.
  • Reviving demand: Supply-side efforts and regulatory reforms will certainly help but the key to the manufacturing-sector revival lies in reviving demand across the economy particularly discretionary spending.
  • Boost Investments: Encouraging both domestic and foreign investments in the manufacturing sector can help upgrade infrastructure, improve technology adoption, and enhance productivity. This can be achieved through attractive investment policies, tax incentives, and easing of regulatory procedures.
  • Regulatory Reforms: There is a need for streamlining regulatory processes by reducing bureaucratic complexities, and simplifying labour laws can create a business-friendly environment. It can attract investments, foster innovation, and enhance productivity in the manufacturing sector.
  • Research and Development: Encouraging R&D activities and innovation in the manufacturing sector can lead to technological advancements and productivity gains.

THE CONCLUSION:

Despite the policy push and various state incentives, the industries in India has been hurt by a decline in its consumer base which has seen incomes come under stress. The industrial sector needs a major revival not just for the sustainability of economic growth, but also for income and employment generation, both of which have been under stress for some time now.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth. (2017)

Q.2 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (2017)

MAINS PRACTICE QUESTIONS

Q.1 There is a continuation of a trend of weakening of industrialisation over the past decade. Analyse the reasons and suggest measures to boost industrial growth in the country.

Q.2 The declining share of manufacturing in overall economic output as well as employment is a worrying sign for the economy’s long-term growth prospects. Comment.

SOURCE: https://www.thehindu.com/opinion/op-ed/why-india-needs-deep-industrialisation/article67841633.ece




THE REAL TRAVESTY: ON THE GOVERNOR OF TAMIL NADU AND THE GOVERNOR’S ADDRESS

THE CONTEXT:

The Tamil Nadu Governor’s refusal to read a state government-drafted speech citing falsehoods politicizes the Governors’ statutory address. This highlights the tension between appointed Governors and elected state governments and their non-partisan role conflict.

THE ISSUES:

  • Governor’s Role in a Parliamentary Democracy: In a parliamentary democracy, the Governor’s role is mainly ceremonial, and they are expected to follow the elected government’s advice. The recent controversy regarding Tamil Nadu Governor R.N. Ravi’s refusal to read out a DMK-run government address highlights the need for the Governor to remain apolitical and unbiased, as mandated by the Constitution.
  • Centre-State Relations and Criticism in Governor’s Address: The Governor’s address should reflect state policies & achievements, despite criticism of the Centre. Refusal to read based on misleading claims will infringe on the state’s right to articulate its stance.
  • Dignity of the Assembly and Conduct of Constitutional Functionaries: The conduct of constitutional functionaries, such as the Governor and the Speaker, should uphold the dignity of the Assembly. Any public disagreement or confrontation between these functionaries can detract from the solemnity and respect due to legislative institutions.
  • Governors as Political Agents of the Ruling Party at the Centre: Governors who act as political agents for the central government are compromising the autonomy of state governments and disrupting the federal balance. This issue deserves urgent attention to maintain the integrity of the constitutional authorities.
  • Constitutional Powers and Limitations of Governors: Governors have limited discretionary powers that should be exercised judiciously. Using these powers to obstruct or undermine state governments led by political adversaries is misusing the gubernatorial office.

THE WAY FORWARD:

  • Code of Conduct for Governors: A ‘Code of Conduct’ should be established and approved by the state governments, the central government, the parliament, and the state legislatures. This would lay down norms and principles to guide the governor’s functions, ensuring that their actions align with constitutional expectations and are not influenced by partisan interests.
  • Transparent Appointment Process: The procedure for appointing governors should be laid down, with the conditions of appointment made explicit. This could involve a more transparent and consultative mechanism, such as a collegium or a parliamentary committee, to select candidates based on merit and suitability, thus reducing political bias in appointments.
  • Limiting Discretionary Powers: Healthy conventions should guide the discretionary powers of Governors and should not be used to favor a particular political party. The Supreme Court’s ability to investigate claims of malafide in the Governor’s report could be extended to cover malafide in the invitation process to form a government.
  • Stability and Autonomy for States: To ensure more stability and autonomy for the states, it is suggested that a governor should be removed only by a resolution of the state legislature. This would prevent arbitrary removals and reinforce the federal structure.
  • Judicial Intervention: The Supreme Court can continue to monitor the conduct of governors and issue directions or observations to ensure that their actions are not arbitrary or partisan, thus upholding the federal principle of Indian polity.
  • Constitutional Amendments: Amendments to the Constitution could be made to change governors’ appointment and removal process, making it more difficult to remove them without substantial grounds, such as requiring a resolution of the state legislature or a judicial review.
  • Accountability to State Legislature: Consider making the governor accountable to the state legislature, like how the President is accountable to the Union Parliament. This would enhance the governor’s responsibility towards the state’s interests.
  • Regular Review and Recommendations: Committees like the Sarkaria and Punchhi Commission have recommended improving Centre-State relations. Regular reviews and implementing such recommendations can help address the evolving dynamics of federalism.
  • Education and Training: Educating and training governors about their constitutional roles and responsibilities can help prevent the misuse of their office. This would also include emphasizing the importance of maintaining the dignity of the Assembly and the conduct of constitutional functionaries.

THE CONCLUSION:

The central government’s misuse of the governor’s role for political gain challenges the principles of federalism and risks undermining respect for the position. This could negatively impact democracy and governance at the state level. Addressing this issue and ensuring the governor’s role remains impartial is essential.

UPSC PAST YEAR QUESTIONS:

Q.1) Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (2022)

Q.2) Whether the Supreme Court Judgement (July 2018) can settle the political tussle between the Lt. Governor and elected government of Delhi? Examine. (2018)

Q.3) Discuss the essentials of the 69th Constitutional Amendment Act and anomalies, if any, that have led to recently reported conflicts between the elected representatives and the institution of the Lieutenant Governor in the administration of Delhi. Do you think that this will give rise to a new trend in the functioning of Indian federal politics? (2016)

MAINS PRACTICE QUESTION:

Q.1) Discuss the recent controversy surrounding the refusal of Tamil Nadu Governor to read out the address prepared by the state government, citing misleading claims and facts. What are the implications of such actions on Centre-State relations and India’s federal structure?

SOURCE:

https://www.thehindu.com/opinion/editorial/the-real-travesty-the-hindu-editorial-on-the-governor-of-tamil-nadu-and-the-governors-address/article67838996.ece




THE STATE OF THE INDIAN ECONOMY TODAY

THE CONTEXT: As, the state of the Indian economy and its prospects have to be based on mathematics and statistics, the recently published data by National Statistical Office needs to be analysed. This helps to understand the government’s economic performance as disclosed in Parliament and subsequently published in the media.

ISSUES:

  • Misleading data: Post-COVID-19, the growth rate of GDP has been estimated around 6% + annually but this is misleading because what is not disclosed is that the growth rate that includes recovery as well since 2020-22. Hence, if we calculate the GDP growth rate between 2019-20 and 2022-23, two normal years, it can be calculated less than 4% per year for the period.
  • Non acknowledgement: India’s GDP growth rate declined annually from 2016-17, and fell below 3.5% in the fourth quarter of 2019-20. This four-year continuous decline from a 7% growth rate to 3.5% rate has never been acknowledged by the government.
  • Slow growth rate: It is essential to recognise that since 2020, the current government publicised development model in reality achieved the so-called “Hindu rate of growth” in GDP, which had been “achieved” during the Congress’s socialist period of 1950-77.
  • Incoherence in economy: The ruling government has failed to structure economic policy coherently. Incoherence prevailed during the 2014-2023 period and will perhaps continue in the future as well.
  • Misleading media: The misleading announcements of promising predictions are being published annually in the media, with claims made by the ruling government. One such claim made in 2019 was that India will become a $5 trillion economy by 2024. There has been no policy structuring presented to achieve this aim nor has anyone in the government shown willingness to debate it on public fora.
  • Falling investment: The investment to GDP ratio has been largely falling for many years now. It peaked at 35.81% in 2007–08, which was 15 years ago. In 2022–23, it is estimated to have been 29.21%, an improvement over the three years before that, but worse than where it was before the pandemic broke out.
  • Lesser job creation: Falling of investment in the economy implies the creation of fewer jobs, which has an impact on the incomes that people earn, and which, in turn, affects private consumption and further job creation.

THE WAY FORWARD:

  • Taking cue from previous governments: During P.V. Narasimha Rao’s and Manmohan Singh’s tenures as Prime Minister, India departed from the socialist path and the GDP growth rates rose for the first time to 6%-8% per year and over a 15-year period i.e., between 1991-96 and 2004-2014. As, then government understood and took steps to reform the Indian economic system by reducing state participation, and increasing incentives for capital and labour providers and achieved a higher and faster growth rate.
  • Transparency: The Indian government is elected democratically and it is obligated to disclose the facts and data transparently to the people.
  • To generate demand: In this decade of weak demand and relatively excess supply, resources mobilised by the government should be largely through indirect taxes and also through the liberal printing of currency notes to generate demand from non-rich citizens.
  • To generate non inflationary demand: The annual interest paid on fixed-term savings in the bank accounts of the middle class should be higher at 9% or so. The interest rates on loans issued to small and medium industries should be no more than 6% on the loans. These essential reforms need to be carried out to generate non-inflationary demand.
  • A new economic policy: The recent economic policy of the government has been an unstructured flop. No announced macroeconomic goal has been achieved by the government till date. Thus, India urgently needs a new economic policy that is based on clearly structured and stated objectives and priorities, and a strategy to achieve the targets, with an intelligent and transparent resource mobilisation plan to finance the policies.
  • Free market system: The market system is not a free-for-all and is structured with rules of transactions. A market system with transparent and minimal regulation with principal drivers of incentives and domestic savings pushes up factor productivity and thus the GDP growth rate. Even a totalitarian state such as China implemented this. During Deng Xiaoping’s tenure as paramount leader, it allowed the socialist economic system to die, and allowed economic market-based system, even while maintaining the system of political dictatorship.
  • Affirmative action: There is a need for affirmative action including social security and safety nets for creating a stake for the poor in the system. It will create a level playing field to ensure transparency, accountability, trusteeship as well as corporate governance to legitimise profit-making that will drive the market system.
  • Empowering democratic institutions: Deregulation should also not mean that we reject government intervention for safety nets, affirmative action, market failures, and creating a level-playing field. Democratic institutions have to be empowered to guard against public disorder arising from rapid deregulation, as it happened in Russia post-1991. Russia underwent chaos and misery, which meant dictatorship returned a loss of human rights and democratic values in Russia.

THE CONCLUSION:

India’s economic growth has witnessed significant fluctuations in recent years and to ensure economic stability the government needs to take up stringent measures. This can be done through adequate investment in human capital development along with effective implementation and coordination among various stakeholders.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (2020)

Q.2 Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)

MAINS PRACTICE QUESTION

Q.1 The GDP-centric framing of Indian economic success is wrong-headed and is a flawed metric of national economic welfare. Comment.

SOURCE: https://www.thehindu.com/opinion/op-ed/the-state-of-the-indian-economy-today/article67838620.ece




THREE RATNAS

THE CONTEXT: Recently, the government announced Bharat Ratnas for PV Narasimha Rao, Chaudhary Charan Singh and MS Swaminathan. Though, all of them are well-deserved as their contribution was unprecedented and respected by all Indians but there should also be a moment of introspection in award giving by the government.

ABOUT BHARAT RATNA

  • Bharat Ratna is the highest civilian Award of the country, was instituted in the year 1954.
  • It was suspended from July 1977 to January 1980 and for a second time from August 1992 to December 1995.

Eligibility:

  • Any person without distinction of race, occupation, position or sex is eligible for these awards. Earlier, there was no provision for posthumous awards but since 1966 awards are given posthumously as well.

Features:

  • It is awarded in recognition of exceptional service/performance of the highest order in any field of human endeavour.
  • The recommendations for Bharat Ratna are made by the Prime Minister himself to the President. No formal recommendations for this are necessary.
  • The number of annual awards is restricted to a maximum of three in a particular year.
  • On conferment of the award, the recipient receives a Sanad (certificate) signed by the President and a medallion. The Award does not carry any monetary grant.

Constitutional provisions:

  • In terms of Article 18 (1) of the Constitution, the award cannot be used as a prefix or suffix to the recipient’s name.
  • However, should an award winner consider it necessary, he/she may use the following expression in their bio- data/letterhead/visiting card etc. to indicate that he/she is a recipient of the award: ‘Awarded Bharat Ratna by the President’ or ‘Recipient of Bharat Ratna Award.
  • With official announcements, recipients are announced and registered in The Gazette of India, a publication released by the Department of Publication, Ministry of Urban Development used for official government notices.
  • Bharat Ratna recipients rank seventh in the Indian order of precedence.

CONTRIBUTION OF PERSONALITIES:
PV NARASIMHA RAO

  • Narasimha Rao was the father of India’s economic reforms. He is known for bringing the policy of economic liberalisation in India.
  • It was initiated in 1991 with the goal of making the economy more market- and service-oriented, and expanding the role of private and foreign investment.
  • The success of the policy changes he unveiled in 1991 opening up the economy to the world and private investment, both domestic and foreign can be measured by the country’s GDP growing some 13-fold, from $270 billion to $3.5 trillion.
  • He sought to dismantle the restrictions imposed under the license raj, reduce red tape and make Indian industries more competitive.

CHAUDHARY CHARAN SINGH

  • Charan Singh’s three landmark pieces of legislation in Uttar Pradesh transformed the agricultural economy of northern India during the 1950s and 1960s.
  1. Dismantling the zamindari system of intermediaries between the cultivator and the state.
  2. Enabling consolidation of fragmented holdings
  3. Enforcing land ceiling
  • It helped create a new socially and politically empowered middle peasant class in the region. Their economic fortunes rose with the Green Revolution, whose key architect was Swaminathan.

MS SWAMINATHAN

  • He was called the ‘Father of the Green Revolution’, and played a major role in the set of changes introduced in farming in the 1960s and ‘that helped India achieve food security.
  • He was the first to recognise the potential of the new high-yielding wheat and rice varieties less tall with strong stems that responded well to more fertiliser application.
  • He also strengthened the national agricultural research system (NARS) that has helped boost yields in other crops as well, including through breeding of varieties resistant to pests, diseases and abiotic stresses.
  • He would go on to serve at a number of institutions related to the sector in both India and abroad – as an Independent Chairman of the Food and Agricultural Organisation Council (1981-85), President of the International Union for the Conservation of Nature and Natural Resources (1984-90), President of the World Wide Fund for Nature (India) from 1989-96 and the Director General of Indian Council of Agricultural Research (ICAR), among others.
  • He received the Shanti Swarup Bhatnagar Award in 1961 for biological sciences. The GOI bestowed the Padma Vibhushan on Swaminathan in 1989.
  • In 1971, he received the Ramon Magsaysay Award for Community Leadership. He also received the UNESCO Mahatma Gandhi Gold Medal in 1999.

THE WAY FORWARD:

  • Democratisation of selection process: The awarding of Bharat Ratna to any person marks great honour and recognition to their work. Hence, to provide continued legitimacy to the awards there should be democratisation of the selection process.
  • Introspection of awards: The awarding of Bharat Ratna to the three eminent persons should also be a moment of introspection. The motive of such national awards should not be affected by any political interest. As reforms have delivered growth, but not lessened poverty as much as was hoped. Rao would not have been happy with rising inequality and continued misallocation of resources towards inefficient producer and consumer subsidies. Charan Singh’s initiatives needs a new formula for boosting incomes through crop diversification, improved input use efficiency and cutting out intermediaries in the marketing of produce.
  • Restoring NARS: The best tribute to Swaminathan would be to restore the NARS to its former glory. Farmer interest is better served by more money for research and infrastructure investments, not under-pricing of fertiliser, electricity and water.

THE CONCLUSION:

The Bharat Ratna stands as a prestigious recognition of exceptional service and contributions to India and despite controversies and debates, it continues to symbolize the nation’s gratitude to those who have made outstanding contributions to humanity.

UPSC PREVIOUS YEAR QUESTION

Q. Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis the industry in the country? Can India become a developed country without a strong industrial base? (2014)

MAINS PRACTICE QUESTION

Q. Discuss the ways to insulate the national awards from politics to ensure democratisation in the process so that it does not lead to populism and devaluation of the awards.

SOURCE: https://indianexpress.com/article/opinion/editorials/express-view-three-ratnas-9156177/




CONJURING A CATHARSIS: ON THE GOVERNMENT’S WHITE PAPER ON THE ECONOMY

THE CONTEXT:

According to the White Paper released by the Finance Ministry, the UPA is accused of economic mismanagement, while the NDA’s reforms are praised. However, the Black Paper presented by the Congress criticizes the NDA’s policies, citing issues such as unemployment and distress among farmers.

THE ISSUES:

  • Scams and Corruption: The White Paper lists 15 “high-profile” UPA scams as alleged economic mismanagement, including coal, 2G spectrum, the Commonwealth Games, and a misappropriation case in the Jammu & Kashmir cricket board.
  • Governance Issues: The finance minister criticized the UPA’s ‘extra-constitutional’ governance system and failed to undertake pending reforms after the 1991 liberalization.
  • GST and Aadhaar: The White Paper credits the NDA government for delivering on GST and effectively using Aadhaar, despite some BJP states, including Gujarat, having reservations about them.
  • Pending Reforms: The NDA government has not found a consilient approach to critical pending factor markets reforms, such as land and labour, and has had to backtrack on farm sector reforms.
  • Economic Blunders: The Congress’s Black Paper highlights the NDA government’s economic blunders, such as demonetization, the flawed GST regime, unemployment with stagnant wage growth, farmers’ distress, and high inflation.
  • Oil Prices and Inflation: The Black Paper points out the high inflation rates despite lower crude oil prices than the UPA’s tenure.
  • GDP Growth and Employment Rates: The White Paper does not include real GDP growth and employment rates from the UPA and NDA years, which could be crucial economic performance indicators.
  • Reform Journey: India’s reform journey has been marked by successive governments building on past efforts, with many opportunities considered missed or bungled in hindsight.
  • Voter Expectations: The White Paper attempts to temper voters’ expectations from a government with a majority mandate.

THE WAY FORWARD:

  • Transparent and Inclusive Policymaking: Enhance transparency in economic policymaking by involving a broader range of stakeholders, including opposition parties, industry experts, and civil society, to ensure well-rounded policies and consider diverse perspectives.
  • Comprehensive Economic Reforms: Continue and deepen economic reforms in critical areas such as land, labour, and capital markets to improve India’s business environment and attract more investment. Addressing various states’ and stakeholders’ concerns and reservations about reforms like GST and Aadhaar is crucial for their successful implementation.
  • Accountability and Oversight: Enhance the accountability of public officials and institutions through regular audits, transparency initiatives, and public reporting to reduce the wastage of public resources and improve governance.
  • Focus on Inclusive Growth: Prioritize policies that promote inclusive growth, such as affordable housing, healthcare, and education, to ensure the benefits of economic growth are widely shared.
  • Addressing Unemployment and Wage Stagnation: Implement targeted programs to create jobs and support skill development to address unemployment and wage stagnation. Encourage private sector investment in labour-intensive sectors.
  • Prudent Fiscal Management: Maintain fiscal discipline by managing public expenditure and enhancing revenue collection to support sustainable economic growth and manage inflation effectively.
  • Digital Infrastructure and Services: Continue to invest in and expand digital infrastructure to improve public service delivery, enhance government efficiency, and foster innovation.
  • Data-Driven Policy Making: Utilize data analytics and technology to inform policy decisions, monitor implementation, and evaluate the impact of government programs and initiatives.
  • Acknowledging and Building on Previous Achievements: Recognize the contributions of previous governments and build on successful policies and programs, ensuring continuity and stability in governance.

THE CONCLUSION:

UPA and NDA have different views on shaping public opinion. NDA emphasizes reforms, while UPA highlights policy failures. Both have published White and Black Papers before elections to convince voters of their economic stewardship and criticize the other’s failings.

UPSC PAST YEAR QUESTIONS:

Q.1) Two parallel-run schemes of the government, viz. the Adhaar Card and NPR, one voluntary and the other compulsory, have led to debates and litigations at national levels. On merits, discuss whether both schemes need to run concurrently. Analyze the potential of the schemes to achieve developmental benefits and equitable growth. (2014)

Q.2) Effectiveness of the government system at various levels and people’s participation in the governance system are interdependent.” Discuss their relationship with each other in the context of India. (2016)

MAINS PRACTICE QUESTION:

Q.1) Examine the role of economic policies and reforms in shaping India’s growth trajectory over the last two decades. Discuss the impact of these policies on various sectors of the economy and suggest measures for sustainable and inclusive economic development.

SOURCE:

https://www.thehindu.com/opinion/editorial/conjuring-a-catharsis-the-hindu-editorial-on-the-governments-white-paper-on-the-economy/article67835416.ece




PRUDENCE PREVAILS: ON KEEPING MONETARY POLICY DISINFLATIONARY

THE CONTEXT: The Reserve Bank of India’s Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.5% for the sixth consecutive meeting. The MPC’s decision is influenced by uncertainties in food prices, which continue to affect the headline inflation trajectory. The recent trends in retail inflation and the potential impact of food price gains on inflation expectations are also highlighted.

ISSUES:

  • Monetary Policy and Inflation Control: The RBI’s Monetary Policy Committee has kept the repo rate unchanged at 6.5% for the sixth consecutive meeting. The committee is committed to maintaining a monetary policy to reduce inflation and stabilize prices.
  • Food Prices and Inflation: Food prices greatly impact inflation. In December, retail inflation was 5.69% due to uncertainties. The Consumer Food Price Index rose 9.53%, much higher than October’s 6.61%.
  • Inflation Projections and Policy Response: The MPC has predicted that retail inflation in the first quarter of the year will be around 5%. To meet the target of 4%, policymakers must keep up their efforts to control price increases.
  • Economic Growth and Consumption: Despite inflation, the economy remains strong. However, high inflation could negatively impact growth by reducing consumption.
  • Food Prices as Core of India’s Inflation: Food prices can sometimes increase in a way that affects inflation similarly to other basic goods. This can lead to people expecting more price increases, undermining the goal of stabilizing prices.

THE WAY FORWARD:

  • Monetary Policy Measures: The Reserve Bank of India (RBI) can employ various monetary policy tools to control inflation. These include adjusting the Repo Rate, Reverse Repo Rate, and Bank Rate and employing Open Market Operations, Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), and Liquidity Adjustment Facility (LAF). However, it’s important to note that while these measures can help manage inflation, they are not a complete solution and have limitations.
  • Investment in Infrastructure: Road infrastructure can foster efficient and stable food markets, which can help stabilize food prices.
  • Crop Diversification: Diversifying the types of crops grown can help stabilize the yield of the crops in the system, which can help control food prices.
  • Improving Supply Chain Management: Short-term food inflation is often caused by limited yield or poor supply chain management. Therefore, improving supply chain management can help control food inflation.
  • Providing Targeted and Flexible Food Safety Nets: This can ensure access to healthy diets and national food security, particularly for the most vulnerable groups.
  • Addressing Long-Term Threats to Food Production: These include water scarcity, soil degradation, the environmental impacts of climate change, and competition for productive land due to urban expansion.
  • Regulating Biofuels: Biofuels add stress to the weak supply and demand equilibrium of world food market commodities, so regulating them could help reduce food price volatility.
  • Strengthening the Supply Side: It is necessary to strengthen the supply side rather than concentrate only on the demand side. The RBI can lay certain regulations to direct funds for improvement in supply.

THE CONCLUSION:

The MPC’s decision reflects its commitment to ensuring that inflation aligns with the target of 4%, particularly in the face of volatile food prices. However, the article suggests that policymakers must remain steadfast in their resolve to slow price gains towards the target or risk dampening consumption and undermining growth momentum. There is a need for a balanced approach to manage inflation while supporting economic growth.

UPSC PAST YEAR QUESTION:

Q. Do you agree that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)

MAINS PRACTICE QUESTION:

Q. Discuss the impact of keeping the repo rate unchanged on the various sectors of the economy, considering the current inflationary trends and the need for economic growth.

SOURCE:

https://www.thehindu.com/opinion/editorial/prudence-prevails-on-keeping-monetary-policy-disinflationary/article67828996.ece




ROAD MAP FOR FISCAL CONSOLIDATION

THE CONTEXT: Recently, the interim Budget or ‘vote on account’ for 2024-25 was presented by Finance Minister. The budget refrained from making any changes to tax rates either for direct taxes or indirect taxes but highlights increased capital expenditures and fiscal consolidation.

HIGHLIGHTS IN THE BUDGET:

  • Capital Expenditure: One important feature of the Budgets presented in recent years is an increase in capital expenditures of the Central government. The interim Budget has maintained this trend and has provided for an increase of 11.1% in capital expenditures when a comparison is made with the 2023-24 Budget Estimates. This aims to stimulate investment climate, potentially catalysing private sector participation and underscores the government’s commitment to infrastructure development.
  • Growth Rates Analysis: While the interim budget indicates an 11.1% increase in capital expenditures compared to the 2023-24 Budget Estimates, the growth rate is lower than initially planned. This lower growth rate aligns with the real GDP growth of 7.3% in 2023-24.
  • Potential Impact on GDP Growth: The projected 17% growth in capital expenditure for 2024-25 suggests the potential for achieving a 7% real GDP growth. It can be achieved if private sector investment momentum is sustained and state governments maintain their capital expenditure growth, supported by government initiatives such as interest-free loans.
  • Tax buoyancy: The buoyancy of tax revenue, coupled with nominal GDP growth estimates, provides flexibility for future expenditure adjustments or deficit reductions. The buoyancy of tax revenue comes to 1.33, if the base is taken as Budget Estimates of the present year and using nominal GDP growth for 2023-24 as per the National Statistics Organisation’s (NSO) first advance estimates.
  • Fiscal Planning: The budget showcases prudent fiscal planning and the emphasis on fiscal correction and consolidation reflects a cautious approach to economic management.
  • Fiscal Deficit Reduction: A significant aspect of the budget is the projected reduction in the fiscal deficit. The fiscal deficit for 2024-25 is forecasted to decrease to 5.1% of GDP reflecting a decrease of a 0.7 percentage point from the previous year.
  • Long-term Fiscal Objectives: The budget discussion revolves around the desired fiscal deficit targets, particularly aiming for 3% of GDP for the Central government and not exceeding 6% of GDP when combined with State governments. The rationale behind these targets is intricately linked to household savings, net inflows from abroad, and the imperative to manage debt-GDP ratios effectively.
  • Debt-GDP Ratio: The government proposes a debt-GDP ratio target of 40% for the Centre by 2028-29 which a strategic vision for sustainable fiscal management over the long term. This would be feasible as the government has extended the interest-free loan facility for the State governments. The lower fiscal deficit might also facilitate a lowering of interest rates later during the year.
  • Capital formation: Though, capital expenditures of the government are not identical with gross fixed capital formation. However, it contributes to increasing capital formation. It is worth noting that the capital expenditures of the Central government in 2024-25 as a proportion of GDP are budgeted to increase marginally from 3.2% in 2023-24 to 3.4% in 2024-25.

THE WAY FORWARD:

  • Continued Government Investment: In developing economies, growth is driven by investment. Therefore, for the continued growth of the economy, there is a need for an sustained investment rate which can be improved only by the government raising its own investment. It could act as a catalyst for private investment.
  • Ensuring Economic Stability: These targets are rooted in the goal of ensuring economic stability by maintaining sufficient household savings, curbing inflationary pressures, and fostering sustainable economic growth.
  • Setting timelines: The timeline for achieving the targets highlighted in budget must be carefully delineated to mitigate inflationary pressures for ensuring sustainable economic growth.
  • Coordination: Achieving these targets necessitate continuous coordination and implementation, considering the dynamic nature of economic conditions amidst evolving global and domestic factors.

THE CONCLUSION:

The recent interim Budget lays a foundation for sustainable fiscal management, emphasizing on capital expenditure enhancement and fiscal consolidation. However, achieving long-term fiscal sustainability requires concerted efforts, including aligning fiscal policies with economic realities and establishing clear targets for deficit reduction.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 What are the reasons for introducing the Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss its salient features and their effectiveness critically. (2013)

Q.2 Public expenditure management was a challenge to India’s government in the context of budget-making during the post-liberalization period. Clarify it. (2019)

MAINS PRACTICE QUESTION

Q.1 Highlight the challenges in achieving long-term fiscal sustainability in the country, considering the dynamic economic conditions amidst evolving global and domestic factors.

SOURCE: https://www.thehindu.com/opinion/op-ed/road-map-for-fiscal-consolidation/article67821293.ece