💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

GS Paper: NGO, SHG & Civil Society

  • What are Social Stock Exchanges?

    The Economic Survey 2021 has backed setting up of Social Stock Exchange in India.

    Q. What are Social Stock Exchanges? Discuss how it will help finance social enterprises in India.

    What are Social Stock Exchanges (SSEs)?

    • An SSE is a platform which allows investors to buy shares in social enterprises vetted by an official exchange.
    • The Union Budget 2019 proposed setting up of first of its kind SSE in India.
    • The SSE will function as a common platform where social enterprises can raise funds from the public.
    • It will function on the lines of major stock exchanges like BSE and NSE. However, the purpose of the Social Stock Exchange will be different – not profit, but social welfare.
    • Under the regulatory ambit of SEBI, a listing of social enterprises and voluntary organizations will be undertaken so that they can raise capital as equity, debt or as units like a mutual fund.

    Why SSEs?

    • India needs massive investments in the coming years to be able to meet the human development goals identified by global bodies like the UN.
    • This can’t be done through government expenditure alone. Private enterprises working in the social sector also need to step up their activities.
    • Currently, social enterprises are very active in India. However, they face challenges in raising funds.
    • One of the biggest hurdles they face is, apparently, the lack of trust from common investors.

    Benefits

    • There is a great opportunity to unlock funds from donors, philanthropic foundations and CSR spenders, in the form of zero-coupon zero principal bonds. These bonds will be listed on the SSE.
    • At first, the SSE could become a repository of social enterprises and impact investors.
    • The registration could be done through a standard process.
    • The SEs could be categorized into different stages such as as- Idea, growth stage and likewise, investors can also be grouped based on the type of investment.

    Development so far

    • The Economic Survey 2021 highlighted the concept of setting up a social stock exchange (SSE) in India.
    • It will be under the regulatory ambit of the Securities and Exchange Board of India (SEBI).
    • SEBI constituted a working group (WG) on social stock exchanges back in September 2019.
    • The WG has outlined its vision and made recommendations, which include the participation of NPOs and for-profit enterprises (FPE) on SSE subject to committing to minimum reporting requirements.

  • Home Ministry amends FCRA rules

    The Ministry of Home Affairs (MHA) has relaxed FCRA norms for farmer, student, religious and other groups who are not directly aligned to any political party to receive foreign funds if the groups are not involved in “active politics”.

    Must read:

    What is Foreign Contribution (Regulation) Act, and how does it control donations?

    What is the FCRA?

    • The Foreign Contribution Regulation Act (FCRA), 2010 regulates foreign donations and ensures that such contributions do not adversely affect the internal security of our country.
    • The Act, first enacted in 1976, was amended in the year 2010 when a slew of new measures was taken by the Union Home Ministry to regulate foreign donations. It was again amended in September this year.
    • It is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    What are the new rules?

    • The new rule says- the organisations specified under clauses (v) and (vi) of sub-rule (1) shall be considered to be of political nature, if they participate in active politics or party politics, as the case may be.
    • The 2011 rules on said clauses dealt with “guidelines for the declaration of an organisation to be of a political nature, not being a political party”.
    • It said that the Central government could specify an organisation as that of political nature based on six criteria.

    Defining ‘Political group’

    • Clause V of Rule 3 (FCRA 2011) qualified a political group as, “organisations of farmers, workers, students, youths based on caste, community, religion, language or otherwise, which is not directly aligned to any political party, but whose objectives or activities, include steps towards advancement of political interests of such groups.
    • The activities include: habitually engagement in or employ common methods of political action like rasta roko, jail bharo, rail roko, bandh or hartal in support of public causes.

    Why such a move?

    • As per the FCRA, members of legislatures, political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
    • The new rules make new FCRA registrations more stringent.

  • Exploring the idea of Social Stock Exchange

    Context

    • The Securities and Exchange Board’s (SEBI) working group has submitted its report with recommendations regarding the structure, mechanisms, and regulatory framework for the proposed Social Stock Exchange (SSE).

    What are Social Stock Exchanges (SSEs)?

    • An SSE is a platform which allows investors to buy shares in social enterprises vetted by an official exchange.
    • The Union Budget 2019 proposed setting up of first of its kind SSE in India.
    • The SSE will function as a common platform where social enterprises can raise funds from the public.
    • It will function on the lines of major stock exchanges like BSE and NSE. However, the purpose of the Social Stock Exchange will be different – not profit, but social welfare.
    • Under the regulatory ambit of SEBI, a listing of social enterprises and voluntary organizations will be undertaken so that they can raise capital as equity, debt or as units like a mutual fund.

    Issues with the idea of Social Stock Exchange

    • SSE exists in one form or another in UK, Singapore, South Africa, Canada and Brazil, but it is yet to take off in any country.
    • It has been an instrument focussed on social enterprises with rather poor results.
    • The proposed SSE in our country could have been an interesting innovation if it was first.
    • Replicating an experiment from elsewhere in an extremely complex environment of endemic poverty, high inequality and regional variation does not seem a reasoned decision.
    • It is therefore important to analyse why it has been pushed as a key policy.

    Why civil society is sceptical

    • The 2020-21 Union Budget says that not-for-profit organisations will need to apply every five years for income tax registration to ascertain their charitable status.
    • They will also need to renew their 80(G) certificate that provides tax relief to their donors.
    • The not-for-profit sector would not be able to survive without the tax-exempt charitable status.
    • These restrictions will open the gates to corruption and bullying by the tax and government bureaucracy.
    • The SEBI working group was constituted of business leaders, government and SEBI officials with a token representative from civil society.
    • Composition of the committee reflects the real intent of the SSE, which is to create instruments for market to enter the social sector.
    • However, the way the exchange is envisioned makes it clear that the interests of the private sector are guiding the idea of SSE.

    Will the entry of private sector benefit social sector

    • The proponents of the SSE argue that it would help set standards and a performance matrix for the social sector.
    • SSE is also expected to help bench-marking of sector actors (credibility checks), organise information and data, help in impact assessments, and do capacity building for the sector.

    Solving complex social problems

    • Poverty or injustice are essentially systemic and political questions that need multi-pronged dynamic engagement.
    • Developing set standards of impact assessment and performance matrix has the risk of privileging only one approach to the developmental challenges at hand.
    • The SSE would create more intermediaries and benefit larger organisations.
    • More than 99 per cent of the three million NGOs in the country are in the small category and will be untouched by the SSE.

    Conclusion

    The core business of the SSE is to strengthen the social sector and bring new resources to it, SEBI for sure itself would admit that it is not the appropriate anchor.

  • Foreign Contribution (Regulation) Amendment Bill, 2020

    The Centre is set to amend the Foreign Contribution (Regulation) Act and has proposed to make Aadhaar a mandatory identification document for all the office-bearers, directors and other key functionaries of an NGO or an association eligible to receive foreign donations.

    What are the news Amendments?

    (1) Prohibition to accept foreign contribution:

    • Under the Act, certain persons are prohibited to accept any foreign contribution.
    • These include election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
    • The Bill adds public servants (as defined under the Indian Penal Code) to this list.
    • Public servants include any person who is in service or pay of the government or remunerated by the government for the performance of any public duty.

    (2) Transfer of foreign contribution:

    • Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution (or has obtained prior permission under the Act to obtain foreign contribution).
    • The Bill amends this to prohibit the transfer of foreign contribution to any other person. The term ‘person’ under the Act includes an individual, an association, or a registered company.

    (3) Aadhaar for registration:

    • The Act states that a person may accept foreign contribution if they have: (i) obtained a certificate of registration from central government, or (ii) not registered, but obtained prior permission from the government to accept foreign contribution.
    • Any person seeking registration (or renewal of such registration) or prior permission for receiving the foreign contribution must make an application to the central government in the prescribed manner.
    • The Bill adds that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document.
    • In case of a foreigner, they must provide a copy of the passport or the Overseas Citizen of India card for identification.

    (4) FCRA account:

    • Under the Act, a registered person must accept foreign contribution only in a single branch of a scheduled bank specified by them.
    • However, they may open more accounts in other banks for utilization of the contribution.
    • The Bill amends this to state that foreign contribution must be received only in an account designated by the bank as “FCRA account” in such branch of the State Bank of India, New Delhi, as notified by the central government.
    • No funds other than the foreign contribution should be received or deposited in this account.

    (5) Restriction in the utilization of foreign contribution:

    • Under the Act, if a person accepting foreign contribution is found guilty of violating any provisions of the Act or the unutilized or unreceived foreign contribution may be utilized or received, only with the prior approval of the central government.
    • This amendment Bill also seeks to prohibit the transfer of FCRA funds to other persons or organisations.
    • The Bill adds that the government may also restrict usage of unutilized foreign contribution for persons who have been granted prior permission to receive such contribution.
    • This may be done if, based on a summary inquiry, and pending any further inquiry, the government believes that such a person has contravened provisions of the Act.

    (6) Renewal of license:

    • Under the Act, every person who has been given a certificate of registration must renew the certificate within six months of expiration.
    • The Bill provides that the government may conduct an inquiry before renewing the certificate to ensure that the person making the application: (i) is not fictitious or benami, (ii) has not been prosecuted or convicted for creating communal tension and (iii) has not been found guilty of diversion or misutilisation of funds, among others conditions.

    (7) Reduction in use of foreign contribution for administrative purposes:

    • Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received.
    • Further, they must not use more than 50% of the contribution to meeting administrative expenses. The Bill reduces this limit to 20%.

    (8) Surrender of certificate:

    • The Bill adds a provision allowing the central government to permit a person to surrender their registration certificate.
    • The government may do so if, post an inquiry, it is satisfied that such person has not contravened any provisions of the Act, and the management of its foreign contribution (and related assets) has been vested in an authority prescribed by the government.

    (9) Suspension of registration:

    • Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
    • The Bill adds that such suspension may be extended up to an additional 180 days.

    Significance of the amendment

    1.Prevent misuse:

    • The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the FCRA 2010.
    • Recently, the Union Home Ministry has suspended licenses of the six (NGOs) who were alleged to have used foreign contributions for religious conversion.

    2.Strengthen National security

    • Many persons were not adhering to statutory compliances such as submission of annual returns and maintenance of proper accounts.
    • Such a situation could have adversely affected the internal security of the country.

    3.Transparency and accountability

    • The new Bill aims to enhance transparency and accountability in the receipt and utilisation of foreign contributions and facilitating the genuine non-governmental organisations or associations who are working for the welfare of society.

    Criticism of the FCRA Bill, 2020

    • The legislation may be used to target political opponents and religious minorities.
    • Effects NGO Functioning: Due to the 20% cap, many NGOs will shut shop and many people will become jobless.
    • Inconsistency: On one hand the government invites foreign funds, but when such funds come for educational and charitable purposes, it is prevented.
    • High compliance rate: According to the GoI’s FCRA dashboard, there are 22,447 active FCRA registrations in India today. In 2018-19, 21,915 annual returns were filed – a compliance rate of 97.6%.
    • Double standards: PM CARES fund had received exemptions from complying with FCRA provisions when it is headed by Union cabinet ministers and administered by PMO officials.
    • Licence-Raj on NGOs: The Bill assumes that all NGOs receiving foreign grants are guilty and thus makes Aadhar of office bearers as mandatory requirement.
    • Bureaucratic Discretion: There is a thin line between enforcing transparency and using rules to allow official interference and harassment in the sector. Much of the present bill crosses that line and introduces a questionable degree of micro-management.

    Way Forward

    • NGOs are helpful in implementing government schemes at the grassroots. They fill the gaps, where the government fails to do their jobs.
    • The government must stick to the ancient Indian ethos of Vasudhaiva Kutumbakam as the framework for its global engagement and should not act with vendetta against the NGOs who criticize its working.
    • Seamless sharing of ideas and resources across national boundaries is essential to the functioning of a global community, and should not be discouraged unless there is reason to believe the funds are being used to aid illegal activities.

  • Examining role played by Civil Society and NGOs in fight against Covid-19

    Social capital is what civil societies are known as. The article highlights the valuable role played by the civil society, and NGO in the pandemic. They constitute the backbone of the collective expression of citizen  interest in a democracy. So, read about the ways in which they can contribute in dealing with destruction due to pandemic.

    Partnership with 3 key stakeholders: NGO, Private Sector, international development organisation

    • The nature and scale of the crisis which the COVID-19 pandemic has led to is unparalleled.
    • In such a scenario, solutions are unlikely to come from past experiences or best practices.
    • The biggest source of strength now is the partnerships we have built over the years.
    • The situation at hand calls for stakeholders to come together, work side by side and support each other.
    •  The fight against COVID-19 needed as many hands as were available.
    • The job was too big for the government to handle alone.
    • The strategy was to leverage vertical and horizontal partnerships: Vertical partnerships, which the stakeholders have built within their organisations and horizontal partnerships, which the government has institutionalised with stakeholders.
    • This is precisely what one of the Empowered Groups created by the government has been doing since it was formed.

    Significance of NGOs

    • The NGOs, given their deep connect with spatial and sectoral issues, were a natural partner in this endeavour.
    • There is nobody better placed than the NGOs to understand the pulse at the grassroots and engage closely with communities.
    • Around 92,000 organisations were urged to partner with district administrations and contribute to the response efforts.

    How the NGOs helped?

    • Chief Secretaries of all states were requested to engage NGOs in relief and response efforts and designate state and district nodal officers to coordinate with them.
    • The approach was to leverage the strength and reach of the local NGOs in identifying priority areas for action and avoid duplicity of efforts.
    • NGOs have been actively setting up community kitchens, creating awareness about prevention, and physical distancing, providing shelter to the homeless, the daily wage workers, supporting government efforts in setting up health camps and in deputing volunteers to deliver services to the elderly, persons with disabilities, children, and others.
    • An outstanding contribution of NGOs was in developing communication strategies in different vernaculars which went a long way in taking awareness measures to the community level.
    • Akshaya Patra, Rama Krishna Mission, Tata Trusts, Piramal Foundation, Bill and Melinda Gates Foundation, Action Aid, International Red Cross Society, Prayas, Help-age India, SEWA, Sulabh International, Charities Aid Foundation of India, Gaudia Math, Bachpan Bachao Andolan, the Salvation Army, and Catholic Bishops’ Conference of India are some partners who have embodied the whole-of-society approach in COVID-19 response management.

    Important role played by startups

    • The crisis has brought out the best in the start-up space.
    • Many of them have risen to the occasion and accelerated the development of low cost, scalable, and quick solutions.
    • The results have been promising.
    • AgVa accelerated the development of ventilators which are low-cost, mobile, low on power consumption and require minimal training for operators.
    • Biodesign has developed a robotic product called ResperAid, which enables mechanised use of manual ventilators.
    • Kaaenaat has developed highly portable ventilators which can be used to serve two patients simultaneously and has a built-in battery, oxygen concentrator, and steriliser cabinet.
    • The products of a few non-ventilator start-ups too came to the aid of the COVID-19 fighting machinery.
    • The AI-enabled analysis of chest X-Rays developed by Qure.ai enables large-scale screening to identify potential cases.
    • GIS and geo-fencing technologies by Dronamaps enabled information cluster strategies for hotspots.
    • AI-powered online doctor consultation and telemedicine platform by Mfine connects diagnostics labs and pharmacies with doctors and patients.
    • The AI-enabled thermal imaging camera developed by Staqu facilitated large-scale screening at low cost.
    • These developments strengthen the argument that low-cost and scalable solutions designed and developed domestically must drive our country’s transformation.

    How the stakeholders operated through partnership?

    • The manner in which stakeholders have responded to the pandemic reinforces the power of partnerships.
    • In fact, they have operated through partnerships.
    • The NGO leaderships created momentum throughout their networks and delivered the much needed response.
    • They also brought to the attention of the group the problems from the grassroots.
    • Multiple agencies of international development organisations designed and executed joint response initiatives, leveraging their presence across the country.
    • The coalitions which industry organisations such as CII, FICCI, and NASSCOM have built over the years brought people and resources together, identified problems at multiple levels, channelised ideas and solutions and facilitated innovations.
    • The role played by the government has been facilitative in nature.
    • This role was based on the institutional and informal partnerships built with the three groups of stakeholders over the years.

    Adaptiveness of Indian Industry

    • Until three months ago, not a single N95 mask or personal protective equipment (PPE) was manufactured in India.
    • Today, we have 104 domestic firms making PPEs and four manufacturing N95 masks.
    • Over 2.6 lakh PPEs and two lakh N95 masks are being manufactured in India, daily.
    • Domestic manufacturing of ventilators has strengthened manifold — orders for more than 59,000 units have been placed with nine manufacturers.
    • While this shows the adaptiveness of Indian industry, the shift to domestic production must happen on a larger scale for a wider set of sectors in the long run, as envisioned by Make in India.

    Consider the question-“As facilitators, mediators, and advocates of collective articulation of citizen interest in a democracy, Civil Society and NGOs have put people before everything else during this crisis. In light of this, examine the role played by them in unparalleled crisis brought in by Covid-19 pandemic.”

    Conclusion

    Civil society, and voluntary and non-government organisations constitute the backbone of the collective articulation of citizen interest in a democracy. Surely, they can prove to be an asset in our fight against corona pandemic.

    Back2Basics: NGO

    • The World Bank defines NGOs as private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development.
    • NGOs are legally constituted organizations which operate independently from Government and are generally considered to be nonstate, nonprofit oriented groups who pursue purposes of public interest.

  • [pib] Saras Collection on Government e-Marketplace

    The Union Ministry for Rural Development and Panchayati Raj and Agriculture and Farmers’ Welfare has launched “The Saras Collection” on the Government e-Marketplace (GeM) portal.

    Possible prelim question:

    ‘The Saras Collection’ recently seen in news is a:

    a) Subsidy on beekeeping and apiculture projects

    b) Indigenous light transport aircraft

    c) Database on wetland birds

    d) Collection of products made by SHGs

     The Saras Collection

    • It is a unique initiative by the GeM, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Ministry of Rural Development.
    • The collection showcases daily utility products made by rural Self-Help Groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers.
    • The on-boarding of the SHGs has been initially piloted in the states of Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
    • SHGs from all the states and Union Territories (UTs) will be covered rapidly in the upcoming phases.

    It’s functioning

    • For Functionaries: They will be provided dashboards at the national, state, district and block level for real-time information about the number of products uploaded, their value and volume of orders received and fulfilled.
    • Government buyers: They will be sensitized through system-generated messages/ alerts in the Marketplace about the availability of SHG products on the portal.

    Benefits offered

    • The Saras Collection will provide SHGs with direct access to Government buyers which will do away with intermediaries in the supply chain.
    • Thus it would ensure better prices for SHGs and spurring employment opportunities at the local level.

    Back2Basics: Government e-Marketplace

    • The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
    • It was launched in 2016 to bring transparency and efficiency in the government buying process.
    • GEM aims to enhance transparency, efficiency and speed in public procurement.
    • It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.
    • It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.
    • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
    • It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).

  • A virus, social democracy, and dividends for Kerala

    This article is an analysis of Kerala’s success in dealing with the Covid-19. Factors that emerge are-strong emphasis on the social democracy, the participation of civil society and strong social compact between the government and citizenry. We have also covered the same subject in a previous article but focus there was more on the administrative level.

    Kerala’s success story

    • Kerala was the first State with a recorded case of coronavirus and once led the country in active cases.
    • It now ranks 10th of all States and the total number of active cases (in a State that has done the most aggressive testing in India) has been declining for over a week and is now below the number of recovered cases.
    • Given Kerala’s population density, deep connections to the global economy and the high international mobility of its citizens, it was primed to be a hotspot.
    • Yet not only has the State flattened the curve but it also rolled out a comprehensive ₹20,000 crore economic package before the Centre even declared the lockdown.

    Why does Kerala stand out in India and internationally?

    • Kerala’s much-heralded success in social development has invited endless theories of its cultural, historical or geographical exceptionalism.
    • But taming a pandemic and rapidly building out a massive and tailored safety net is fundamentally about the relation of the state to its citizens.
    • From its first Assembly election in 1957, through alternating coalitions of Communist and Congress-led governments, iterated cycles of social mobilisation and state responses have forged what is in effect a robust social democracy.
    • The current crisis underscores the comparative advantages of social democracy.

    Kerala’s success is built on social democracy in the state. Following are the factors that constitute the social democracy in the state which is helping it fight against the Covid-19 pandemic with considerable success. These factors are also important from the Mains point of view if the question is framed on Kerala’s success story.

    How social democracy is practised in Kerala?

    • Social democracies are built on an encompassing social pact with a political commitment to providing basic welfare and broad-based opportunity to all citizens.
    • In Kerala, the social pact itself emerged from recurrent episodes of popular mobilisation.
    • Popular mobilisations include the temple entry movement of the 1930s to the most recent various gender and environmental movements.
    • These movements nurtured a strong sense of social citizenship.
    • These movements also drove reforms that have incrementally strengthened the legal and institutional capacity for public action.
    • Second, the emphasis on rights-based welfare has been driven by and in turn has reinforced a vibrant, organised civil society.
    • This civil society demands continuous accountability from front-line state actors.
    • Third, this constant demand-side pressure of a highly mobilised civil society and a competitive party system has pressured all governments in Kerala.
    • The pressure made governments to deliver public services and to constantly expand the social safety net, in particular a public health system that is the best in India.
    • Fourth, that pressure has also fuelled Kerala’s push over the last two decades to empower local government.
    • Nowhere in India are local governments as resourced and as capable as in Kerala.
    • Finally, all of this ties into the greatest asset of any deep democracy, that is the generalised trust that comes from a State that has a wide and deep institutional surface area.
    • That on balance treats people not as subjects or clients, but as rights-bearing citizens.

    How the built-in social democracy is helping in dealing with the pandemic?

    • A government’s capacity to respond to a cascading crisis such as the COVID-19 pandemic relies on a very fragile chain of –(1)mobilising financial and societal resources, (2)getting state actors to fulfil directives, (3)coordinating across multiple authorities and jurisdictions and maybe, most importantly, (4)getting citizens to comply.
    • First, an effective response begins with programmatic decision-making.
    • From the moment of the first reported case in Kerala, Chief Minister convened a State response team that coordinated 18 different functional teams.
    • The CM held daily press conferences and communicated constantly with the public.
    • Kerala’s social compact demanded no less.
    • Second, the government was able to leverage a broad and dense health-care system.
    • The health-care system, despite the recent growth of private health services, has maintained a robust public presence.
    • Kerala’s public health-care workers are also of course highly unionised and organised, and from the outset the government lay emphasis on protecting the health of first responders.
    • Third, the government activated an already highly mobilised civil society.
    • As the cases multiplied, the government called on two lakh volunteers to go door to door, identifying those at risk and those in need.
    • A State embedded in civil society — the women’s empowerment Kudumbasree movement being a case in point.
    • Kudumbasree movement was in a good position to co-produce effective interventions, from organising contact tracing to delivering three lakh meals a day through Kudumbasree community kitchens.
    • Fourth, you can get the politics right and you can have a great public health-care system, but its effectiveness in a crisis like this will only be as good as the infamous last kilometre.
    • And this is where two decades of empowering local governments have clearly paid off.

    Conclusion

    At a time when India is dealing with this unprecedented crisis, it is important to be reminded that Kerala has managed the crisis with the most resolve, the most compassion and the best results of any large State in India. And that it has done so precisely by building on legacies of egalitarianism, social rights and public trust. Other states and the Central government must learn from Kerala’s experience.

  • Let no one go hungry

    Context

    The impact of the lockdown, effected from midnight of March 24, has been particularly severe on migrant workers. The state must utilise FCI stock for those who have ration cards and those who don’t.

    India’s labour force and impact of lockdown on it

    • Nearly one-fifth of India’s labour force consists of internal migrants.
    • As per the 2011 census, a quarter of the urban population consists of migrants.
    • These tend to be predominantly male, from the less developed northern states, in the lower-income strata, and dependent on daily wages or precarious livelihoods.
    • The impact of the lockdown has been particularly severe on migrant workers.
    • Uncertainty and reverse migration: Due to uncertainty over the duration of the lockdown, and about their own livelihoods and food security, the lockdown has led to massive reverse migration from cities back to villages.
    • Further, due to the absence of train and bus services, many of these workers took to simply walking back.
    • The ground reality of inadequate preparation or insufficient provision means that neither their anxiety nor plight is assuaged.
    • Migrant workers tend to depend on public eating places or community arrangements for food.
    • Under a lockdown, there is simply no choice for them, except to depend on the government’s efforts or charitable organisations.

    Utilising the grain stocks with the FCI

    • The government has a large stock of wheat and rice procured over the last three years.
    • Stock in excess of buffer norm: The buffer norm for April 1 is 21.4 million tonnes, against which the country had about 7 million tonnes on March 1: This comprises 27.5 million tonnes of wheat and 50.2 million tonnes of rice.
    • In most districts of India, the Food Corporation of India and state agencies have a storage capacity of more than the three months requirement of the public distribution system.
    • The warehouses are spread across all the districts in every state.
    • The government has already announced that an additional quantity of five kg of foodgrains will be provided, free of cost, to all ration card holders for the next three months.
    • Most of the unorganised labour and families migrating back from their place of work will probably have their ration cards in the villages itself.
    • So, it should not be much of a problem for them to find food during the period of lockdown.

    What should the state do to feed those who do not have ration cards

    • For those who do not have ration cards in the villages, it is the right time to use this extra stock of foodgrains.
    • Using school and Anganwadi infrastructure: In villages, primary schools have facilities for cooking mid-day meals for children. Some Anganwadi also have this facility. This infrastructure can be used to provide cooked meals to those who do not have ration cards in the villages.
    • The government can easily offer to meet their requirement of wheat and rice over the next three weeks and panchayats can be asked to meet a part of the expenditure required to purchase vegetables, spices and cooking oil.
    • The village panchayats which take up such a feeding programme must be provided Rs 20 per person per day from State Disaster Relief Fund for the expenditure on vegetables, cooking oil, spices, which are not covered by the PDS.
    • In some villages, the local community may also be willing to help the panchayats to feed such people.
    • Efforts must also be made by the panchayats to raise donations in kind from the local community for rabi pulses like chana (chickpea), masoor (lentil), matar (field pea) which are available in plenty in pulse-growing states.

    How to feed those who are stuck in the cities

    • A number of labourers and self-employed: In urban areas, as per the Periodic Labour Force Survey, there were about 6 crore casual labourers and four crore self-employed persons in 2017-18.
    • Even after the reverse migration to villages, there would still be millions of them who are stuck in cities at their place of work.
    • These are people who do not have any savings or source of income which can sustain them during the period of the lockdown. These people living in slums, in the poorer areas of cities, are in need of urgent assistance for food, at least for the next three weeks.
    • The most distressed at present are those stuck in the cities, or who have been walking hundreds of kilometres to reach their homes in small towns and villages.
    • Allocating funds form relief funds: The district collectors should be allocated funds from the State Disaster Relief Fund to provide them with food and open all community buildings en route for them.
    • Engaging various players: The states must engage NGOs, factories and charities including religious organisations to raise funds for meeting the expenditure on milk, eggs, cooking oil and vegetables, and even soaps and sanitisers.
    • More than 67,000 NGOs are registered with the Niti Aayog on their NGO Darpan platform — which was created to bring about a greater partnership between the government and the voluntary sector and to foster transparency, efficiency and accountability.
    • This is the time to use such a platform.
    • The Centre can easily provide free rice and wheat to the NGOs from its stock and the NGOs can provide cooked meals in urban areas for the next three weeks.
    • For one crore individuals, for three weeks, the government needs to provide just about 75,000 tonnes of rice. Since the milling of wheat would be difficult due to the closure of flour mills, only rice can be provided at this stage.

    Conclusion

    The rabi harvest is expected to be a bumper one. The utilisation of the FCI stock — for not only the ration card holders but also the non-ration cardholders, and for providing food to the poor stuck in urban areas — is the most appropriate use of the foodgrain stock with the government. This is urgent and must be done.

  • Foreign Funding of Public Organizations

    The Central government cannot brand an organisation ‘political’ and deprive it of its right to receive foreign funds for using “legitimate forms of dissent” like bandh, hartal, road roko or jail ‘bharo’ to aid a public cause, the Supreme Court held.

    Why such Judgement?

    • The verdict came on a petition filed by Indian Social Action Forum challenging certain provisions of the Foreign Contribution Regulation Act (FCRA), 2010 and the Foreign Contribution (Regulation) Rules of 2011.
    • Both of these confer the Centre with “unguided and uncanalised power” to brand organisations ‘political’ and shut down their access to foreign funds.
    • The FCRA 2010 prohibited acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest, it the court said.
    • The FCRA and its Rules allowed the government to indulge in its whims and fancies to deprive organisations of their foreign contributions.
    • The terms used in the statute like ‘political objectives’, ‘political activities’, ‘political interests’ and ‘political action’ had no clarity.

    Issues with FCRA

    • The provisions under challenge before the court included Section 5 (1) of the FCRA.
    • This provision allowed the Centre a free hand to decide whether a seemingly non-political organisation was actually political in nature. INSAF argued that Section 5(1) was vague and thus unconstitutional.
    • The Delhi High Court, which INSAF approached first, said the provision was “expansive” and not vague. The Supreme Court agreed with the High Court.
    • The next provision under the microscope was Section 5(4) of the FCRA.
    • INSAF said the provision did not exactly identify the authority before which an organisation could represent its grievance. But the apex court dismissed this contention.
    • INSAF had also challenged the various clauses of Rule 3 of the 2011 Rules. This provision identified the various types of ‘political’ activities for which/organisations whose foreign funding could be stopped by the government.

    Foreign funds are permissible for non-political organizations

    • Any organisation which supports the cause of a group of citizens agitating for their rights without a political goal or objective cannot be penalized by being declared as an organisation of a political nature.
    • But the foreign funding pipeline could be cut if an organisation took recourse to these forms of protest to score a political goal, the court said.
    • It struck a similar balance in the cases of organisations of farmers, workers, students, youth based on caste, community, religion, language, etc.
    • It said their foreign funding could continue as long as these organisations worked for the “social and political welfare of society” and not to further “political interests”.

    What about Political Organizations?

    • The court wholesomely agreed that organisations with avowed political objectives in its memorandum of association or bye laws cannot be permitted access to foreign funds.
    • Such organisations were clearly of a “political nature,” it concluded.

    Why regulate foreign funding?

    • The purpose for which the statute prevents organisations of a political nature from receiving foreign funds is to ensure that the administration is not influenced by foreign funds.
    • Prohibition from receiving foreign aid, either directly or indirectly, by those who are involved in active politics is to ensure that the values of a sovereign democratic republic are protected.
    • On the other hand, such of those voluntary organisations which have absolutely no connection with either party politics or active politics cannot be denied access to foreign contributions.

    Back2Basics

    FCRA

    • Government of India enacted the Foreign Contribution (Regulation) Act (FCRA) in the year 1976 with an objective of regulating the acceptance and utilization of foreign contribution.
    • The act was majorly modified in 2010 with several amendments because many NGOs were found using illegal use of foreign funding.
    • It is a consolidating act whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies.
    • It aims to prohibit funding for any activities detrimental to the national interest and for matters connected therewith.
    • In 2016 license of about 20,000 NGOs were cancelled after reviewing their work.

  • NGOs vs. GoI: The Conflicts and Scrutinies