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Issues related to Economic growth

Towards a new world order

op-ed snap | Economics | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia,Inclusive Growth & Issues,Issues relating growth and development, employment

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 3- Globalisation and its impact on Climate Change, Lessons from Nordic Model.

Context

Social inequalities and the grim problems of stark and continuing poverty are at the epicentre of the new world.

The ugly face of capitalism and growing inequalities

The concentration of the health: The latest Oxfam Report presented at Davos points out that 2,153 billionaires have more wealth than 4.6 billion people.
Rising poverty: The emergence of billionaires and oligarchs in different parts of the world coincides with increased poverty among the already poor people, especially children.
Concept of stakeholder’s capitalism: These realities make observers question the tenability of stakeholder capitalism as a concept.
Faults in the capitalism on display in 2008: The ugliest face of this capitalism was visible during the 2007-2008 economic crisis, first in the U.S. and thereafter across the European Union.
- At that time, it appeared as if the global economy was on the verge of collapse.

Intensification of energy use and sustainability

The relation between growth and energy: One of the chief characteristics of economic development is the intensification of energy use.
- There is an unprecedented concentration of high energy density in all economic development strategies.
Use of non-renewable sources: The bulk of the energy continues to be generated from non-renewable sources.
Developing world capturing energy-generating sources: The developed world’s, and China’s, central objective is to capture energy-generating resources from across continents and put them to use to push GDP growth to greater heights.
- In the process, sustainability is becoming a casualty.
Higher waste generation: The higher the use of energy, the larger the amount of waste generated. Entropy, like time, is always unidirectional, it only goes forward.

Disposal of e-waste

High energy consumption and disposal of waste: Egregious consumption of energy by the developed world has been accompanied by the disposal of residual products (‘e-waste’) on the shores of many African and Asian countries.
Impact on the developing world: As a result of the disposal, the poor in the developing world are, unwittingly, drawn and exposed to toxic, hazardous materials like lead, cadmium and arsenic.
- Hence, the ‘globalisation’ phenomenon has turned out to be nothing other than the exploitation of the developing world, with most countries being treated as a source of cheap labour and critical raw material.

Unfairness involved in the Globalisation

Increasing consumption in the developing world: Countries in the developed world, and China, are ferociously using up finite raw materials without care or concern for the welfare of present and future generations.
Bright and the dark side of the development: Certainly, there has been significant technological progress which has brought about a revolution in the fields of healthcare and communications, but there is also a dark side to this.
System loaded in the favour of the rich: High expenses and Intellectual Property Rights load the system further in favour of the rich.
- Pernicious system of carbon credit: To demonstrate how unfair the system is, one can look at the pernicious plan to set up a carbon credit system.
- Under this, countries with high energy consumption trends can simply offset their consumption patterns by purchasing carbon credits, the unutilised carbon footprint, from poor developing countries.

Understanding the Nordic Economic Model

‘Nordic Economic Model’: It pertains to the remarkable achievements of the Scandinavian countries comprising Denmark, Finland, Iceland, Sweden, Norway, and allied territories. They also have-
- Large public sector enterprises.
- Extensive and generous universal welfare systems.
- High levels of taxation.
- And considerable state involvement in promoting and upholding welfare states.
- Among the happiest countries: UN reports also indicate that the Nordic countries are the happiest countries in the world. The U.S., in contrast, is in 19th place.
- The total population of the Nordic countries is estimated at almost 27 million people.
- Among the richest countries: These nations are among the richest in the world when measured in terms of GDP per capita.

Enlightened Global Order

Taking the Nordic model as a template, there are some ingredients that could be part of a new ‘enlightened global order’.
What does the Global Order include? These should include-
- Effective welfare safety nets for all.
- Corruption-free governance.
- A fundamental right to tuition-free education including higher education.
- And a fundamental right to good medical care.
- Shutting of tax havens.
- Tax structure: In Nordic countries, personal and corporate income tax rates are very high, especially on the very rich. If a just, new world order is to arise, taxes everywhere should go up.
Holding companies responsible: When it comes to the corporate sector, there are some new perspectives.
- Changing the parameters of profit: In traditional business accounting, ‘bottom line’ refers to the financial year’s profit or loss earned or incurred by the company on pure financial parameters.
- The four ‘Ps’: Following vigorous debates, a new format has emerged under which a company’s performance is measured through four ‘Ps’.
- The first is ‘P’ for ‘profit’.
- The second ‘P’ is for people — how the company’s actions impact not only employees but society as a whole.
- The third ‘P’ is for the planet — are the company’s actions and plans sensitive to the environment?
- The fourth ‘P’ is for purpose, which means the companies and individuals must develop a larger purpose than ‘business as usual’. They must ask: what is the larger purpose of the company, apart from generating profits?
- Using performance in terms of four ‘P’s: Using big data and text analytics, a company’s performance can be measured in terms of all the four ‘P’s and a corporate entity can be thus held accountable. Market capitalisation need not be the only way to measure the value of a company.

Conclusion

Much work is yet to be done to uplift the global economic order, but the important point is that new tools are now emerging. What is required is a global consensus and the will to make the planet more sustainable, so that all individuals can live with justice and equality, ensuring that not a single child is hungry or seriously unwell because of poverty or lack of affordable medical help.

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Women empowerment issues – Jobs,Reservation and education

To help her work

op-ed snap | Economics | Mains Paper 3: Government Budgeting,Inclusive Growth & Issues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 3- Inclusive growth and need to focus on gender budgeting in India.

Context

When it came to allocating funds, the budget relegates women’s economic participation to secondary importance.

The current status of women in India

Lack of Equality: India continues to struggle to provide its women with equal opportunity.
A low score on international measures: On international measures of gender equality.
- India scores low on women’s overall health and survival and ability to access economic opportunities.
Why it matters? Since the woman’s economic engagement is related to her own and her family’s well-being, the continuing decline in rural women’s labour force participation is a cause for concern, and both affects and reflects these worrying gender gaps.

Why female labour force participation matters beyond social cause?

Source of economic growth: Ignoring India’s declining female labour force participation at a time of economic distress is a mistake.
- Not just a social cause: Involving women in the economy is not a social cause — it is a source of efficiency gains and economic growth.
Missing out on many things: In a country where young women’s education is now at par with men’s, ignoring that half of the population isn’t participating equally in the economy means we are missing out on many things, like-
- Innovation.
- Entrepreneurship.
- And productivity gains.
Large potential to increase in GDP: The large potential increases in GDP that could accrue to India and countries around the world, if they could only close their labour force gender gaps, are often cited.
- 60% increase in GDP: A report by McKinsey Global Institute suggests that if women participated in the Indian economy at the level men do, annual GDP could be increased by 60 per cent above its projected GDP by 2025.
- Underlying conclusion: The underlying conclusion is that women’s potential to contribute to GDP is huge.
- Gain larger than any other region: The same analysis also suggested that India’s potential GDP gains through achieving economic gender parity were larger than gains in any of the other regions they studied.

How can the state be responsive to women?

It can be ensured in the following two ways-

1.MGNREGA-Important focus: An important focus could be a smarter policy and gender-intentional implementation.
- A key example comes from MGNREGA, a programme whose official policy has long been to pay individual workers in their own bank accounts.
- It is observed that this policy was typically not implemented and that women’s wages were usually being paid into the bank account of the woman’s husband.
Why paying wages in women’s account matters?
- Giving women digital control of her wage:
- This seemingly small change — giving a woman digital control of her wages — had a big impact.
- Working women more outside their home: Women who received digital accounts plus training worked more outside their homes, not only for MGNREGA but also in private employment.
Higher economic engagement and lessening patriarchy
- Importantly, women from especially conservative households reported higher economic engagement and an improved ability to move about their communities unaccompanied.
- Lessening of patriarchal norms: Surveys conducted showed that the payment in account also began to influence restrictive patriarchal norms.

2.Need to move beyond MGNREGA
- Ease of doing business and reform in labour market reforms: Continuing to improve ease of doing business and addressing rigid labour market regulations can also draw more women into high-potential sectors.
- Such as those supported under Assemble in India.
- Potential in manufacturing: Rural women’s relative participation in manufacturing has grown compared to men’s, and manufacturing stands out as a promising means to pull young women, in particular, into the economy.
- Potential in SMEs: Ensuring better support to small and medium-sized enterprises can help new businesses.

Conclusion

Attune schemes to the aspiration of women: Ensuring that these programmes are attuned to the needs and aspirations of women is not expensive. But it makes a much difference.
- Review of policy and programme: It requires a review of individual policies and programme implementation.
Increase the funding: The government needs to increase funding to programmes targeting women. Until then, the policy can build on the fact that pulling women into the economy isn’t just a function of budget allocations or social sector programmes. It’s also a matter of thoughtful policy design and political will.

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Electoral Reforms In India

Political parties to publish the entire criminal history of their candidates

SC Judgements | Polity | Mains Paper 2: Representation Of People's Act

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Paper 2- Making the electoral process free, fair and clean.

The Supreme Court has strictly ordered political parties to publish the entire criminal history of their candidates for Assembly and Lok Sabha elections along with the reasons that goaded them to field suspected criminals over decent people.

SC’s deadline

It ordered political parties to submit compliance reports with the Election Commission of India within 72 hours or risk contempt of court action.
The information should be published in a local as well as a national newspaper as well as the parties’ social media handles.
It should mandatorily be published either within 48 hours of the selection of candidates or less than two weeks before the first date for filing of nominations, whichever is earlier.
The judgment is applicable to parties both at Central and State levels.

Information should be detailed

The published information on the criminal antecedents of a candidate should be detailed and include the nature of their offences, charges framed against him, the court concerned, case number, etc.
A political party should explain to the public through their published material how the “qualifications or achievements or merit” of a candidate, charged with a crime, impressed it enough to cast aside the smear of his criminal background.
A party would have to give reasons to the voter that it was not the candidate’s “mere winnability at the polls” which guided its decision to give him a ticket to contest elections.

Why such a move?

It appeared from the last four general elections that there has been an alarming increase in the incidence of criminals in politics.
In 2004, 24% of the MPs had criminal cases pending against them; in 2009, that went up to 30%; in 2014 to 34%; and in 2019 as many as 43% of MPs had criminal cases pending against them, SC observed.
The judgment was based on a contempt petition about the general disregard shown by political parties to a 2018 Constitution Bench judgment (Public Interest Foundation v. Union of India).
In this judgment (2018), this court was cognizant of the increasing criminalisation of politics in India and the lack of information about such criminalisation among the citizenry”, SC observed.

Immediate Reason

The immediate provocation is the finding that 46% of MPs have criminal records.
The number might be inflated as many politicians tend to be charged with relatively minor offences —“unlawful assembly” and “defamation”.
The real worry is that the current cohort of Lok Sabha MPs has the highest (29%) proportion of those with serious declared criminal cases compared to its recent predecessors.

Why are such tainted candidates inducted by political parties?

Such candidates with serious records seem to do well despite their public image, largely due to their ability to finance their own elections and bring substantive resources to their respective parties.
Some voters tend to view such candidates through a narrow prism: of being able to represent their interests by hook or by crook.
Others do not seek to punish these candidates in instances where they are in contest with other candidates with similar records.

Significance of the move

Either way, these unhealthy tendencies in the democratic system reflect a poor image of the nature of India’s state institutions and the quality of its elected representatives.
The move signified the court’s alarm at the unimpeded rise of criminals, often facing heinous charges like rape and murder, encroaching into the country’s political and electoral scenes.

Way Forward

While formally, the institutions of the state are present and subject to the electoral will of the people, substantively, they are still relatively weak and lackadaisical in governance and delivery of public goods.
This has allowed cynical voters to elect candidates despite their dubious credentials and for their ability to work on a patronage system.
While judicial pronouncements on making it difficult for criminal candidates to contest are necessary, only enhanced awareness and increased democratic participation could create the right conditions for the decriminalization of politics.

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Ninth Schedule of the Indian Constitution

| Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Ninth Schedule of Indian Constitution

Mains level: Read the attached story

A parliamentarian has said in an interview that reservation should be put under the Ninth Schedule of the Constitution. His comments came days after the Supreme Court ruled that reservation in the matter of promotions in public posts was not a fundamental right and that a state cannot be compelled to offer quota if it chooses not to.

What is the Ninth Schedule?

The Ninth Schedule contains a list of central and state laws which cannot be challenged in courts.
Currently, 284 such laws are shielded from judicial review.
The Schedule became a part of the Constitution in 1951, when the document was amended for the first time.
It was created by the new Article 31B, which along with 31A was brought in by the government to protect laws related to agrarian reform and for abolishing the Zamindari system.
While most of the laws protected under the Schedule concern agriculture/land issues, the list includes other subjects, such as reservation.
A Tamil Nadu law that provides 69 per cent reservation in the state is part of the Schedule.

Article 31A and 31 B

While Article 31A extends protection to ‘classes’ of laws, A. 31B shields specific laws or enactments.
Article 31B also has retrospective operation: meaning if laws are inserted in the Ninth Schedule after they are declared unconstitutional, they are considered to have been in the Schedule since their commencement, and thus valid.
Although Article 31B excludes judicial review, the apex court has said in the past that even laws under the Ninth Schedule would be open to scrutiny if they violated fundamental rights or the basic structure of the Constitution.

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Foreign Policy Watch: India-United States

USTR takes India off developing country list

| International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India'S Interests

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Countervailing duty

Mains level: India-US trade disputes

The Office of the United States Trade Representative (USTR) has published a notice, amending lists of developing and least-developed countries that are eligible for preferential treatment with respect to countervailing duties (CVD) investigations.

New classification by US

To harmonise U.S. law with the World Trade Organization’s (WTO) Subsidies and Countervailing Measures (SCM) Agreement, the USTR had, in 1998, come up with lists of countries classified as per their level of development.
These lists were used to determine whether they were potentially subject to U.S. countervailing duties. The 1998 rule is now “obsolete” as per the USTR notice.
Countries not given special consideration have lower levels of protection against a CVD investigation.
A CVD investigation must be terminated if the offending subsidy is de minimis (too small to warrant concern) or if import volumes are negligible.
The de minimis thresholds and import volume allowance are more relaxed for developing and least-developed countries.

Criteria set by US

The USTR used the following criteria to determine whether a country was eligible for the 2% de minimise standard:

(1) Per capita Gross National Income or GNI

(2) share of world trade

(3) other factors such as Organisation for Economic Co-operation and Development (OECD) membership or application for membership, EU membership, and Group of Twenty (G20) membership.

Delisting India

India was, until February 10, on the developing country list and therefore eligible for these more relaxed standards. It has now been taken off of that list.
India, along with Brazil, Indonesia, Malaysia, Thailand and Vietnam were taken off the list since they each have at least a 0.5% share of the global trade, despite having less than $12, 375 GNI (the World Bank threshold separating high-income countries from others).
India was taken off the list also because — like Argentina, Brazil, Indonesia and South Africa — it is part of the G20.
Given the global economic significance of the G20, and the collective economic weight of its membership (which accounts for large shares of global economic output and trade), G20 membership indicates that a country is developed a/c to USTR.

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Modern Indian History-Events and Personalities

Conservation plan for Konark Sun Temple

| History | Mains Paper 1: Arts & Culture

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Konark Sun Temple

Mains level: Temple architecture of India

A plan to restore and preserve the nearly 800-year-old Konark Sun Temple in Odisha would be drawn up soon. Among the potential choices before the government would be to fill in more sand or to remove all the sand andput in place alternate support.

Konark Sun Temple

Konark Sun Temple is a 13th-century CE Sun temple at Konark about 36 kilometres northeast from Puri on the coastline of Odisha, India.
The temple is attributed to king Narasinga Deva I of the Eastern Ganga Dynasty about 1250 CE.
Dedicated to the Hindu Sun God Surya, what remains of the temple complex has the appearance of a 100-foot (30 m) high chariot with immense wheels and horses, all carved from stone.
Once over 200 feet (61 m) high, much of the temple is now in ruins, in particular the large shikara tower over the sanctuary; at one time this rose much higher than the mandapa that remains.
The structures and elements that have survived are famed for their intricate artwork, iconography, and themes, including erotic kama and mithuna scenes.
Also called the Surya Devalaya, it is a classic illustration of the Odisha style of Architecture or Kalinga Architecture.
Declared a UNESCO world heritage site in 1984 it remains a major pilgrimage site for Hindus, who gather here every year for the Chandrabhaga Mela around the month of February.

Earlier restoration efforts

It had been filled with sand and sealed by the British authorities in 1903 in order to stabilize the structure, a/c to ASI.
A scientific study was carried out by the Roorkee-based Central Building Research Institute from 2013 till 2018 to ascertain the temple’s structural stability as well as the status of the filled-in sand.
The sand filled in over 100 years ago had settled, leading to a gap of about 17 feet. However the structure was found to be stable.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

‘Future of Earth, 2020’ Report

DOMR | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Highlights of the report

Mains level: Various global threats and their mitigation

The “The Future of Earth, 2020” Report was recently released.

About the report

The report is released by the South Asia Future Earth Regional Office, Divecha Centre for Climate Change, Indian Institute of Science.
The report was prepared with the aim of reducing carbon footprint and halting global warming below 2 degree Celsius by 2050.

Highlights of the report

Five global risks that have the potential to impact and amplify one another in ways that may cascade to create global systemic crisis have been listed by report.
It listed the following as five global risks:

failure of climate change mitigation and adaptation
extreme weather events
major biodiversity loss and ecosystem collapse
food crises; and
water crises

Offering examples of how the interrelation of risk factors play a role, scientists say extreme heatwaves can accelerate global warming by releasing large amounts of stored carbon from affected ecosystems, and at the same time intensify water crises and/ or food scarcity.
The loss of biodiversity also weakens the capacity of natural and agricultural systems to cope with climate extremes, increasing our vulnerability to food crises, they point out.

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Parliament – Sessions, Procedures, Motions, Committees etc

In news: Two-child Norm

Bills/Act/Laws | Governance | Mains Paper 1: Population & Associated Issues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Art. 47

Mains level: Population explosion in India

A Rajya Sabha MP has introduced a Private Member’s Bill on two-child norms.

Key propositions of the Bill

Essentially, the Bill aims to amend the Constitution in order to incentivise limiting families to two children by offering tax concessions, priority in social benefit schemes and school admissions, among other things.
It proposes incentives in taxation, education and employment for people who limit their family size to two children.

Article 47A

The Bill has sought the incorporation of a new provision, Article 47A in Part IV of the Constitution, to withdraw all concessions from people who fail to adhere to the “small-family” norm.
Article 47A says the following:

“47A. The State shall promote small family norms by offering incentives in taxes, employment, education etc. to its people who keep their family limited to two children and shall withdraw every concession from and deprive such incentives to those not adhering to small family norm, to keep the growing population under control.”

Note: Article 47 of the Indian Constitution is one of the DPSP which directs the State to raise the level of nutrition and the standard of living and to improve public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of intoxicating drinks and drugs which are injurious to health.

Why such Bill?

The Bill’s Statement of Object and Reasons states that the fact that India’s population has already crossed 125 crore is “really frightening”.
It goes on to say that India’s population has doubled in the last 40 years and that it is expected to unseat China as the world’s most populous nation in the next couple of decades.
Despite the fact that we have framed a National Population Control Policy, we are the second most populous country in the world.
Further, the population explosion will cause “many problems” for our future generations.
The Bill also makes a reference to “overburdened” natural resources that are overexploited because of overpopulation.

Statewide policies relating to two-child norms

Assam Cabinet has recently decided that those with more than two children will be ineligible for government jobs from 2021. Other states with similar norms:

Rajasthan: For government jobs, candidates who have more than two children are not eligible for appointment.

Madhya Pradesh: The state follows the two-child norm since 2001. Under Madhya Pradesh Civil Services (General Condition of Services) Rules, if the third child was born on or after January 26, 2001, one becomes ineligible for government service. The rule also applies to higher judicial services.

Telangana: Under Section 19 (3) read with Sections 156 (2) and 184 (2) of Telangana Panchayat Raj Act, 1994, a person with more than two children shall be disqualified from contesting election. However, if a person had more than two children before May 30, 1994, he or she will not be disqualified. The same sections in the Andhra Pradesh: AP Panchayat Raj Act, 1994, apply to Andhra Pradesh, where a person having more than two children shall be disqualified from contesting election.

Gujarat: In 2005, the government amended the Gujarat Local Authorities Act. The amendment disqualifies anyone with more than two children from contesting elections for bodies of local self-governance — panchayats, municipalities and municipal corporations.

Maharashtra: The Maharashtra Zilla Parishads And Panchayat Samitis Act disqualifies people who have more than two children from contesting local body elections (gram panchayats to municipal corporations). The Maharashtra Civil Services Rules, 2005 states that a person having more than two children is disqualified from holding a post in the state government. Women with more than two children are also not allowed to benefit from the Public Distribution System.

Karnataka: The Karnataka (Gram Swaraj and Panchayat Raj) Act, 1993 does not bar individuals with more than two children from contesting elections to local bodies like the gram panchayat. The law, however, says that a person is ineligible to contest “if he does not have a sanitary latrine for the use of the members of his family”.

Odisha: The Odisha Zilla Parishad Act bars those individuals with more than two children from contesting.

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Air Pollution

Global cost of air pollution from fossil fuels

IOCR | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

A new Greenpeace report has estimated the global cost of air pollution from fossil fuels at around $2.9 trillion per year, or $8 billion per day — 3.3% of the world’s GDP.

Cost of air pollution

India is estimated to bear a cost of $150 billion, or 5.4% of the country’s GDP, which is the third-highest absolute cost from fossil fuel air pollution worldwide.

China and the US are estimated to bear the highest absolute costs from fossil fuel air pollution, respectively at $900 billion and $600 billion.

Loss of lives

Globally, air pollution is estimated to cause 4.5 million premature deaths each year.
This includes 3 million deaths attributable globally to PM2.5, which is one of the principal pollutants in northern Indian cities including Delhi.
Globally, PM2.5 is also estimated to cause the loss of 62.7 million years of life, 2.7 million emergency room visits due to asthma, 2 million preterm births and 1.75 billion work absences.
The 2 million preterm births include 981,000 in India and over 350,000 in China.

Economic cost

In India, exposure to fossil fuels also leads to a loss of around 490 million workdays, the report said.

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

[pib] ‘Apiary on Wheels’ Initiative

PIB | Agriculture | Mains Paper 3: Economics Of Animal-Rearing

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ‘Apiary on Wheels’, Apiculture

Mains level: Apiculture sector of India

‘Apiary on Wheels’ was recently flagged off today by the Union Minister of MSME.

‘Apiary on Wheels’

It is a unique concept designed by KVIC for the easy upkeep and migration of Bee Boxes having live Bee colonies.
It is a platform which can carry 20 Bee Boxes from one place to another without any difficulty.
It is like an attachment which can be easily connected with a Tractor or a Trolley and may be pulled to any suitable destination.
Specially, in summers, the beekeepers usually adopted crude methods to feed the bees and many bees used to die in the process.
This concept of migration, cooling with the help of solar panels and sugar drips with zero risk to the lives of bees, will prevent any damages to the bee boxes or bee colonies and help produce quality honey.

How it works?

Two large wheels on either side of the Apiary and 4 separate compartments with independent doors, having 5 bee boxes each help the platform to remain intact without disturbing the live bee colonies.
It is also connected with a solar panel system which automatically triggers a fan inside the compartment as soon as the temperature reaches 35 degree centigrade or above.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Missed call

| Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 3- AGR issue and its impact on the telecom sector of the country.

Context

As the dust settles after the Union budget and the Supreme Court’s decision to not provide relief to telcos from their licence fee liabilities, it is an appropriate moment to step back and examine how we got here.

The issue over the definition of AGR (Aggregate Gross Revenue)

What is AGR issue: Since the New Telecom Policy of 1999 (NTP 1999), operators were required to pay a percentage of their AGR to the government as licence fees instead of a one-time licence fee.
- License fee based on earnings: This was done in exchange for moving operators from fixed licence fee-based on irrationally exuberant bids they had made in the mid-nineties-to a regime that determined licence fee based on revenue earned, thereby de-risking the obligation.
- Why it matters? What constitutes AGR is important for the purpose of the computing licence fee and thousands of crore are dependent on this.
Consequences of ambiguity over the definition of AGR: Bundling – a pervasive phenomenon in most telecom markets have not taken off in India.
- What is bundling? Product bundling is a marketing strategy that involves offering several products and/or services for sale as one combined product.
- The fear is that handset sales will also come under the purview of AGR. Handsets, it could still be argued are part of the service offering.
- Dividend on earning is considered as the part of AGR: Interest and dividend earnings on investments have also been included in AGR.

Unfair practices and cancellation of licences by the court

Controversy over conversion charges: In 2003, “limited” mobility service was converted into a fully mobile service with a one-time payment of Rs 1,658 crore as “conversion” charges, generating controversy. It was labelled as a “back door entry” to full mobility.
Disguising international calls as domestic: Around the same time, the DoT used to levy a fee of Rs 4.75 per minute on international calls known as “access deficit charge” (ADC) to fund universal coverage. It is well known that an operator disguised international calls as domestic to bypass ADC.
Showing call revenue as internet services revenue: For some time, internet services attracted lower or no licence fee and it became expedient for operators to indulge in license fee “arbitrage” by showing more revenue from internet services.
Inflating subscriber numbers: Another manoeuvre was to inflate subscriber numbers to gain access to scarce spectrum in the days when fresh spectrum was administratively assigned based on subscriber numbers.
First come first serve policy: Finally, the shameful spectacle was the battle fought by operators to jump the queue to deposit earnest money for gaining rights over the spectrum that was oddly sought to be assigned by a method called “first come first served” and whose definition itself was quite elastic.
Cancellation of licence by the Court: Thereafter, in the litigation that inevitably followed, the Court cancelled 122 telecom licences and mandated allocation of spectrum by auction.

Conclusion

Erosion of trust between the public and private sector in general and in the telecom sector, in particular, has been a negative externality of the reform process.
Restoration of trust between public and private sector is necessary: In this context, the appeal made by the finance minister during her budget speech for the restoration of “vishwaas” between the public and private sectors and between citizens and government is critical

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Digital India Initiatives

Riding on data for mobility

op-ed snap | Governance | Mains Paper 2: E-Governance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Applying digital revolution to transform governance.

Context

Data-based governance can assist in reducing traffic congestion, as illustrated by a pilot study in Hyderabad.

How the Digital revolution is transforming lives

Seamless and efficient interaction: The digital revolution has made interactions between humans and machines, and among citizens, governments and businesses, seamless and efficient.
Helping efficient delivery of services: Today, e-governance enables and empowers citizens to directly engage with the state, thereby eliminating barriers in the delivery of public services.
The next wave of transformation: The next wave of transformation in digital governance is at the intersection of data and the public good.
- Data as a strategic asset: The key to this transformation lies in incorporating data as a strategic asset in all aspects of-
- Policy.
- Planning.
- Service delivery and-
- Operations of the government.

Transportation system improvement by leveraging Digital revolution

Loss caused by the congestion
- Congestion caused an estimated $24 billion to the four metro cities in India in 2018.
- Given the limited land resources available, the key to solving congestion lies in improving the efficiency of existing transportation systems.
How can Digital revolution help tackle the problem?
- An efficient transportation system would help ease congestion, reduce travel time and cost, and provide greater convenience.
- How it will work? Data from multiple sources such as-
- CCTV cameras.
- Automatic traffic
- Map services and-
- Transportation service providers could be used.
Results of the previous studies
- London example: A study by Transport for London estimates that its open data initiative on sharing of real-time transit data has helped add £130 million a year to London’s economy by improving productivity and efficiency.
- Results from China: In China, an artificial intelligence-based traffic management platform developed by Alibaba has helped improve average speeds by 15%.

Hyderabad Open Transit Data portal

Hyderabad Open Transit Data, launched by Open Data Telangana, is the country’s first data portal.
- What does it do? It publishes datasets on bus stops, bus routes, metro routes, metro stations, schedules, fares, and frequency of public transit services.
The objective of the portal: The objective is to empower start-ups and developers to create useful mobility applications.
- The datasets were built after an intensive exercise carried out by the Open Data Team and Telangana State Road Transport Corporation to collect, verify and digitise the data.
Collaboration with the private sector: Hyderabad has also begun collaborating with the private sector to improve traffic infrastructure.
- MoU with Ola Mobility Institute: One such partnership followed a Memorandum of Understanding signed between the Telangana government and Ola Mobility Institute.
- Monitoring the quality of roads in the city: Under this collaboration, Ola has developed a tool, Ola City Sense, to provide data-based insights that can monitor the quality of Hyderabad’s roads and identify bad quality patches.
- Other areas in which the data is used: The information thus given is useful not only for carrying out road repairs, it also helps officials take initiatives to improve road safety, monitor quality of construction, and study the role of bad roads in causing congestion.
A pilot project to prioritisation of repairs: A pilot was implemented in a municipal zone to gauge the efficacy of the data in supporting road monitoring and prioritisation of repairs.
- The early results of this pilot project were encouraging. The dashboard helped city officials plan the pre-monsoon repair work and budget for repairs last year.

Conclusion

The willingness of the government to apply data-based insights: The Hyderabad project and the pilot demonstrated the willingness of government departments to apply data-based insights for better decision making.
- This could also serve as a model for other cities to emulate.
Making the departments data-centric: The Hyderabad example also shows that governments can make their departments data-centric by-
- Institutionalising data collection.
- Building technology platforms.
- And helping the departments develop the capacity to handle the insights generated from the data.
- Smart cities as a starting point: Command and control centres under the ‘smart cities’ initiative can be an ideal starting point.
- Data security and privacy: Such interventions, however, also need to address genuine concerns around data security and privacy.

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Hunger and Nutrition Issues – GHI, GNI, etc.

Nutrition and the Budget’s fine print

op-ed snap | Governance | Mains Paper 2: Government Scheme/Policies,Poverty & Hunger

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bharatiya Poshan Krishi Kosh

Mains level: Paper 2- Despite having many schemes to address the malnutrition the problems still looms large, why?

Context

There are well-equipped schemes to address the malnutrition, plugging the policy gaps is the problem.

Nutrition and hunger in India

Global Hunger Index rank 102: A few months ago, the Global Hunger Index, reported that India suffers from “serious” hunger, ranked 102 out of 117 countries.
Only one-tenth of children getting proper diet: Just a tenth of children between six to 23 months are fed a minimum acceptable diet.
Urgency reflected in the budget: The urgency around nutrition was reflected in the Union Finance Minister’s Budget speech, as she referred to the “unprecedented” scale of developments under the scheme for Holistic Nutrition, or POSHAN Abhiyaan, the National Nutrition Mission with efforts to track the status of 10 crore households.
The Economic Survey notes that “Food is not just an end in itself but also an essential ingredient in the growth of human capital and therefore important for national wealth creation”.
How malnutrition affects? Malnutrition affects cognitive ability, workforce days and health, impacting as much as 16% of GDP (World Food Programme and World Bank).

Addressing Nutrition through Agriculture

Multiple dimension of malnutrition: There are multiple dimensions of malnutrition that include-
- Calorific deficiency.
- Protein hunger.
- Micronutrient deficiency.
Addressing the issue through Agriculture: An important approach to address nutrition is through agriculture.
- The Bharatiya Poshan Krishi Kosh which was launched in 2019 is a recent attempt to bridge this gap.
- The krishi kosh was launched by Ministry of Women and Child Development along with Bill & Melinda Gates Foundation (BMGF).
- Existing schemes can well address India’s malnutrition dilemma. Following is the analysis of budgetary allocation and expenditure in the previous year.

First- Calorific deficiency

The Integrated Child Development Services (ICDS) scheme provides a package of services including-
- Supplementary nutrition.
- Nutrition and health education.
- Health check-ups and
- Referral services addressing children, pregnant and lactating mothers and adolescent girls, key groups to address community malnutrition, and which also tackle calorific deficiency and beyond.
- Underutilisation of funds: For 2019-20, the allotment was ₹27,584.37 crore but revised estimates are ₹24,954.50 crore, which points to an underutilisation of resources.
- Which area needs the emphasis: The allocation this year is marginally higher, but clearly, the emphasis needs to be on implementation.
Mid-Day Meal Scheme: Another pathway to address hunger is the Mid-Day Meal Scheme, to enhance the nutrition of schoolchildren.
- Here too, the issue is not with allocation but with expenditure.
- The 2019-20 Budget allocation was ₹11,000 crore and revised estimates are only ₹9,912 crores.

Second-Protein Hunger

Contribution of pulses: Pulses are a major contributor to address protein hunger.
- Underutilisation of funds: A scheme for State and Union Territories aims to reach pulses into welfare schemes (Mid-Day Meal, Public Distribution System, ICDS) has revised estimates standing at just ₹370 crores against ₹800 crore allocation in the 2019-20 Budget.

Third-micronutrient deficiency

Horticulture Mission: The Horticulture Mission can be one of the ways to address micronutrient deficiency effectively, but here too implementation is low.
- Revised estimates for 2019-20 stand at ₹1,583.50 crores against an allocation of ₹2,225 crores.
National Millet Mission: In 2018-19, the Government of India launched a national millet mission which included renaming millets as “nutri-cereals” also launching a Year of Millets in 2018-19 to promote nutritious cereals in a campaign mode across the country.
- This could have been further emphasised in the Budget as well as in the National Food Security Mission (NFSM) which includes millets.
- Under-utilisation of funds: The NFSM strains to implement the allocation of ₹2,000 crores during 2019-20, as revised expenditures stand at ₹1,776.90 crore.
- Need to sustain the momentum: As millets have the potential to address micronutrient deficiencies, the momentum given to these cereals needs to be sustained.

POSHAN Abhiyan and issues involved

72% expenditure on technology: The National Nutrition Mission which is a major initiative to address malnutrition, had 72% of total expenditure going into “Information and Communication Technology.
- Misplaced focus: The focus of the bulk of the funding has been on technology, whereas, actually, it is a convergence that is crucial to address nutrition.
- Under-utilisation of funds: Only 34% of funds released by the Government of India were spent from FY 2017-18 to FY 2019-20 till November 30, 2019.
- Limiting the possibility of an increase in the allocation: With underspending, allocations for subsequent years will also be affected, limiting the possibility of increasing budgets and the focus on nutrition schemes.

Agriculture-nutrition link

The agriculture-nutrition link is another piece of the puzzle.
Link not explicitly mentioned: While agriculture dominated the initial Budget speech, the link between agriculture and nutrition was not explicit.
- Why the link is important: The link is important because about three-fifths of rural households are agricultural in India (National Sample Survey Office, 70th round)
- The malnutrition rates, particularly in rural areas are high (National Family Health Survey-4).
- Need for greater emphasis: Agriculture-nutrition linkage schemes have the potential for greater impact and need greater emphasis.

Way forward

Focus: Focus on nutrition-related interventions, beyond digitisation.
Bring all departments in one place: Intensify the convergence component of POSHAN Abhiyaan, using the platform to bring all departments in one place to address nutrition.
Nutrition based activities by farmer-producer: Direct the announcement to form 10,000 farmer producer organisations with an allocation of ₹500 crores to nutrition-based activities.
Youth schemes: Promotion of youth schemes to be directed to nutrition-agriculture link activities in rural areas.
Emphasis on fund allocation: Give explicit emphasis and fund allocation to agriculture-nutrition linked schemes.
Early disbursement and utilisation of funds: Ensure early disbursement of funds and optimum utilisation of schemes linked to nutrition.

Conclusion

Nutrition goes beyond just food, with economic, health, water sanitation, gender perspectives and social norms contributing to better nutrition. This is why the implementation of multiple schemes can contribute to better nutrition.

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Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

Medical Devices (Amendment) Rules, 2020

Explained | Governance | Mains Paper 2: Health & Education

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Medical Devices (Amendment) Rules, 2020

Mains level: Regulation of medical devices in India

The Ministry of Health and Family Welfare has notified changes in the Medical Devices Rules, 2017 to regulate medical devices on the same lines as drugs under the Drugs and Cosmetics Act, 1940.

Medical Devices (Amendment) Rules, 2020

These rules are applicable to devices intended for internal or external use in the diagnosis, treatment, mitigation or prevention of disease or disorder in human beings or animals” (as notified by the ministry).
It requires online registration of these devices “with the Central Licensing Authority through an identified online portal established by the Central Drugs Standard Control Organisation for this purpose.
Among the information that the manufacturer has to upload are “name & address of the company or firm or any other entity manufacturing the medical device along with name and address of manufacturing site.
It also need to upload certificate of compliance with respect to ISO 13485 standard accredited by National Accreditation Board for Certification Bodies or International Accreditation Forum.
This would mean that every medical device, either manufactured in India or imported, will have to have quality assurance before they can be sold anywhere in the country.
After furnishing of the above information a registration number will be generated. Manufacturer shall mention the registration number on the label of the medical device.

What are the items covered under the new Rules?

A large number of commonly used items including hypodermic syringes and needles, cardiac stents, perfusion sets, catheters, orthopaedic implants, bone cements, lenses, sutures, internal prosthetic replacements etc are covered under the new rules.
For some items such as sphygmomanometers (used to monitor blood pressure), glucometers (to check blood sugar), thermometers, CT scan and MRI equipment, dialysis and X-ray machines, implants etc, different deadlines for compliance have been set.
For example for the first three, it is January 2021, for the others it is April next year. For ultrasound equipment, it is November 2020.

Is this a sudden move?

This has been in the offing for some time now.
In October last year, the ministry had circulated copies of the then proposed notification for public comments following recommendations of the Drugs Technical Advisory Board (DTAB), which is the highest technical body for these decisions and has experts among its members.
In April last year, the DTAB had recommended that all medical devices should be notified as “drugs” under the drug regulation law to ensure they maintain safety and quality standards.
The notification makes it clear that the government has issued it in consultation with the DTAB.

Why was the move required?

For much of the last one year, the health sector has been at the centre of attention following revelations about faulty hip implants marketed by pharma major Johnson & Johnson.
This has caused major embarrassment to the government, too, as it exposed the lack of regulatory teeth when it came to medical devices.
The matter dragged on, exposing the regulatory loopholes until finally the company agreed in court to pay Rs 25 lakh each to the 67 people who had had to undergo revision surgeries because the implants were defective.
That is really where the discussion started about regulation of medical devices.

What are the penal provisions under Indian law?

There are various penal provisions under the Drugs and Cosmetics Act, 1940 for various kinds of offences. Manufacture or sale of substandard items is punishable with imprisonment of at least 10 years, which may extend to imprisonment for life.
There is also a provision for fine that will “not be less than Rs 10 lakh rupees or three times value of the confiscated items”.

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Terrorism and Challenges Related To It

Conviction of Hafiz Saeed

| Security Issues | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FATF

Mains level: Terror funding

The Lashkar-e-Taiba founder (LeT) and Jamat-ud Dawa (JuD) chief Hafiz Saeed was convicted by a Pakistan court in two terror-financing cases and sentenced to five-and-a-half years in prison concurrently.

Why such move?

With pressure from the international community building up, Pakistan has been trying to convince the Financial Action Task Force (FATF) to prevent it getting blacklisted.
Saeed’s conviction is perhaps a reflection of Pakistan’s changing approach towards its treatment of terror groups, given the FATF’s actions and warnings.

Who is Hafiz Saeed?

Hafiz Saeed is the founder and leader of the fundamentalist terrorist organisation Lashkar-e-Taiba (LeT), which is a group that follows an extreme interpretation of religious texts.
It was founded in 1990 and its goals include conducting jihad, preaching the true religion and training the new generation along true religious lines.
Some of its goals are aligned with that of Pakistan, including the liberation of Kashmir from India.

Why his conviction matters?

Saeed is also the mastermind of the 2008 Mumbai terrorist attacks.
Other attacks that LeT has been involved in include the 2001 shootout at Parliament House in New Delhi, and, most recently, the 2016 attack on the military headquarters in Uri.
In 2012, in order to support India in its attempt to extradite Saeed, the US State Department offered a bounty of up to $10 million for information that could lead to his arrest or conviction.
Moreover, the US Department of the Treasury has marked Saeed as a Specially Designated Global Terrorist since 2012.
ISI and the Pakistani government too help the LeT bring in funds, and it is believed to have fund-raising offices in Bangladesh, Nepal, Maldives and the Gulf region.

A shield against FATF actions

The FATF placed Pakistan in the grey list in July 2018 nonetheless.
Before Saeed’s arrest, the FATF had warned Pakistan to deliver on its commitments to curb terror financing. Pakistan feared being a part of FATF’s “Grey List”.
Significantly, if Pakistan did not follow up on FATF’s warnings, it could potentially be downgraded to the Black List, which would make things more difficult for the country.
FATF is de facto run by the US Treasury Department.

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RBI Notifications

New Umbrella Entity (NUE) for Retail Payment Systems

| Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NUE

Mains level: Payments regulation measure by RBI

The Reserve Bank of India (RBI) has proposed to set up a new pan-India new umbrella entity (NUE) or entities focussing on retail payment systems with a minimum paid-up capital of Rs 500 crore.

New Umbrella Entity (NUE)

The proposed entity will set up, manage and operate new payment systems especially in the retail space.
It would comprise of but not limited to ATMs, white label PoS, Aadhaar-based payments and remittance services, develop payment methods, standards and technologies, monitor related issues and internationally.
It would take care of developmental objectives like enhancement of awareness about the payment systems.
The RBI retains the right to approve the appointment of directors as also to nominate a member on the board of the NUE.
The NUE should conform to the norms of corporate governance along with ‘fit and proper’ criteria for persons to be appointed on its board.

Functions

It will:

operate clearing and settlement systems
identify and manage relevant risks such as settlement, credit, liquidity and operational and preserve the integrity of the system
monitor retail payment system developments and related issues in the country and internationally to avoid shocks, frauds and contagions that may adversely affect the system and the economy in general

Terms of reference

The entity eligible to apply as promoter or the promoter group for the NUE should be ‘owned and controlled by residents’ with 3 years’ experience in the payments ecosystem as Payment System Operator (PSO) or Payment Service Provider (PSP) or Technology Service Provider (TSP).
The shareholding pattern should be diversified.
Any entity holding more than 25 per cent of the paid-up capital of the NUE will be deemed to be a promoter.

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Coronavirus – Health and Governance Issues

Novel Coronavirus renamed as COVID-19 by WHO

| Governance | Mains Paper 2: Health & Education,International Institutions

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Coronavirus, Pneumonia

Mains level: Threats posed by coronavirus outbreak

The World Health Organization (WHO) gave an official name to the disease caused by the novel coronavirus. The death toll from the virus has now crossed 1,000 and the disease has infected tens of thousands of people, the majority of them in China.

COVID-19

The disease will be called “COVID-19”; the “CO” stands for coronavirus, “VI” for virus and “D” for disease.
The coronavirus itself is called “nCoV-2019”.

WHO nomenclature

The WHO, in consultation with the World Organisation for Animal Health (OIE) and the Food and Agriculture Organization of the United Nations (FAO), has identified best practices for naming new human diseases.

These best practices apply to a new disease:
That is an infection, syndrome, or disease of humans;
That has never been recognised before in humans;
That has potential public health impact; and
Where no disease name is yet established in common usage

Names that are assigned by the WHO may or may not be approved by the International Classification of Diseases (ICD) at a later stage.
The ICD, which is also managed by the WHO, provides a final standard name for each human disease according to standard guidelines that are aimed at reducing the negative impact from names while balancing science, communication and policy.

Terms to avoid

The agreed best practices include advice on what the disease names should not include, such as geographic location (Middle East Respiratory Syndrome, Spanish Flu, Japanese encephalitis).
Disease names should not include people’s names (Creutzfeldt-Jakob disease, Chagas disease), the species or class of animal or food (swine flu, monkeypox etc.), cultural or occupational references (miners, butchers, cooks, nurses etc.) and terms that incite “undue fear” such as death, fatal and epidemic.
The use of names such as “swine flu” and “Middle East Respiratory Syndrome” has had “unintended negative impacts” by stigmatising certain communities and economic sectors.

Terms to include

The best practices include using generic descriptive terms such as respiratory diseases, hepatitis, neurologic syndrome, watery diarrhoea.
They include using specific descriptive terms that may indicate the age group of the patients and the time course of the disease, such as progressive, juvenile or severe.
If the causative pathogen is known, it should be used as part of the disease name with additional descriptors such as the year when the disease was first reported or detected.
The names should also be short (rabies, malaria, polio) and should be consistent with the guidelines under the International Classification of Diseases (ICD) Content Model Reference Guide.
As per the WHO, “severe” should be used only for those diseases that have a very high initial case fatality rate. “Novel” can be used to indicate a new pathogen of a previously known type
In the case of the novel coronavirus, “recognizing that this term will become obsolete if other new pathogens of that type are identified”, the WHO has now changed its name.

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Human Rights Issues

‘2 Billion Kilometers to Safety’ campaign

IOCR | Trivia | Mains Paper 2: Important International Institutions

Note4Students

From UPSC perspective, the following things are important :

Prelims level: '2 Billion Kilometers to Safety' campaign

Mains level: Refugees issue across the world

The UN Refugee Agency UNHCR has announced a new global campaign urging people worldwide to cover the total distance travelled by refugees each year – 2 billion kilometers – by running, jogging or walking.

About the campaign

The “2 Billion Kilometers to Safety” campaign vies to encourage people to support refugees by championing individual acts of solidarity.
The goal is to acknowledge the resilience and strength of refugees.
It calls on the public to show their solidarity with refugees by running, walking or cycling to collectively cover two billion kilometers.
Participants can use their fitness apps or the campaign website to log the kilometers and contribute to the global total.

Distance covered by refugees

UNHCR traced the journeys of refugees around the world and calculated that, collectively, people forced to flee travel approximately two billion kilometers every year to reach the first point of safety.
This is roughly the distance that separates Earth from somewhere between the planets Saturn and Uranus.
According to UNHCR estimates, Syrian refugees travelled over 240 kilometers each to reach Turkey.
South Sudanese refugees travelled more than 640 kilometers to reach Kenya. Rohingya refugees from Myanmar travelled approximately 80 kilometers to reach Bangladesh.

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New Species of Plants and Animals Discovered

In news: Yaravirus

Prelims Only | Science Tech | Mains Paper 3: S&T - Applications In Everyday Life

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Yaravirus

Mains level: NA

In a lake in Brazil, researchers have discovered a virus that they find unusual and intriguing.

Yaravirus

The Yaravirus infects amoeba and has genes that have not been described before, something that could challenge how DNA viruses are classified.
It has a puzzling origin and phylogeny (evolutionary relationship).
Because of the Yaravirus’s small size, it was unlike other viruses that infect amoeba and they named it as a tribute to Yara, the “mother of waters” in the mythological stories of the Tupi-Guarani indigenous tribes.
The virus does not infect human cells, according to the researchers.

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Corruption Challenges – Lokpal, POCA, etc

Six years on, Lokpal is a non-starter

| Governance | Mains Paper 2: Statutory, Regulatory & Various Quasi-Judicial Bodies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much.

Mains level: Paper 2- Institution of Lokpal is yet prove its efficacy to deal with the corruption. What are the reasons for not starting function as stated in the law.

Context

More than six years after the Lokpal law received the President’s assent, the institution of the Lokpal is yet to play any significant role in tackling corruption in the country.

Delay in appointment

Five-year delay in appointment: For more than five years, the chairperson and members of the Lokpal were not appointed.
- LoP issue: The government claimed that since no one could be recognised as the Leader of the Opposition (LoP) after the 2014 general election, the committee responsible for selecting members of the Lokpal could not be constituted.
- This malady could have been easily remedied by either recognising the leader of the single largest party in Opposition in the Lok Sabha as the LoP, or by amendment as was done for the selection committee of the CBI Director.
- However, neither recourse was taken.

Truncated appointment committee

Special invitee: The leader of the largest Opposition party in the Lok Sabha was invited for meetings of the selection committee as a ‘special invitee’.
- Which he declined on grounds that it was mere tokenism.

Non-starter

More than 10 months later, however, evidence suggests that the Lokpal is a non-starter.
No rules prescribing the form: Till date, the government has not made rules prescribing the form for filing complaints to the Lokpal.
No rules regarding asset disclosure: The Central government has also failed to formulate rules regarding asset disclosure by public servants.
In order to ensure independent and credible action on allegations of corruption, the Lokpal was empowered under the law to set up its own inquiry wing headed by a Director of Inquiry and its own prosecution wing headed by a Director of Prosecution.
The Inquiry and prosecution wing not set up yet: The inquiry and prosecution wings of the anti-corruption ombudsman are yet to be set up.
- The Lokpal has also not appointed the Director of Inquiry or Prosecution.
- Regulations for inquiry and investigation not made: Regulations which the Lokpal was obligated to make under the law are yet to be made, including those specifying the manner and procedure of conducting preliminary inquiry and investigation.
Legal veracity of the decisions uncertain: Since necessary procedures to operationalise the law are yet to be put in place, the legal veracity of the decisions of the Lokpal could potentially be challenged in a court of law.

Conclusion

The failure to operationalise the Lokpal in an effective manner lays bare the lack of will of the government. It took nearly half a century for the Lokpal law to be enacted from the time the need for the oversight institution was first articulated. The government must act to have an effective, independent and empowered Lokpal.

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