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  • A few initiatives?

    Respected CD team,

    As we all know, hardly any time is left for CSP.
    So can we not get a few new things from your side, like quizzes?
    You guys are doing tremendous work with explainers and B2B. But I personally feel a lot very scared, demotivated and lost at times.
    I hope it is not too much to ask for. March has almost reached its end 😛 four months to go.

    I’ll be very grateful if you guys post a strategy for how to proceed in these four months,post some quality questions on polity geography history and environment.

    This is all I’m asking for. 🙂
    I hope others will agree on this. 🙂

    Yours obediently
    Simran. 🙂

  • International Org. | Part 7 | Bretton Woods Institutions – World Bank Group

    This post continues from the series on International Relations for IAS Prep. Read the essential posts here –

    If you haven’t read part one of Bretton Woods institution, click here to read that first


     


     

    World Bank is a vital source of financial and technical assistance to developing countries around the world. This is not only a bank in the ordinary sense but a unique partnership to reduce poverty and support development.


    When? 1944

    Headquarter: Washington, D.C.

    Publications- global economic prospects, Ease of doing business index

    There are 2 goals for the world to achieve by 2030 –

    • End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%
    • Promote shared prosperity by fostering the income growth of the bottom 40% for every country

    World Bank Group is not just World bank but comprises of 5 institutions managed by their member countries

    These 5 institutions are as follows –

    1. International Bank for Reconstruction and Development (IBRD)- Commonly known as the world bank. It is the single largest provider of development loans
    2. International Development Association (IDA) – assists the poorest countries
    3. International Finance Corporation (IFC) – supports private enterprise in developing countries.
    4. Multilateral Investment Guarantee Agency (MIGA) – offers investors insurance against non-commercial risk and help developing country governments attract foreign investment <non commercial risks such as political instability, govt deciding to nationalise a private business etc.>
    5. International Centre for the Settlement of Investment Disputes (ICSID) – encourages the flow of foreign investment to developing countries through arbitration and conciliation facilities

    Except for ICSID, India is member of other four groups<We don’t like external interference such as arbitration in our decision making process, hence not the member of ICSID>

    <India is one of the founder members of IBRD, IDA and IFC>

    So, we will discuss this 3 institutions in detail, as are important for India –

    International Bank for Reconstruction and Development (IBRD) (world bank)

    IBRD provides loans and other assistance primarily to middle income and poor but credit worthy countries at interest rates slightly lower than that offered by other financial institutions but with long term maturity<countries which have the capacity to repay the loan amount with interest>

    Members: 188

    Origins: IBRD as the name suggest was created in 1944 to help Europe reconstruct/ rebuild after World War II. To be a member of IBRD, a country has t join IMF first.

    Main function:

    • Long-term capital assistance to its member-countries for their reconstruction and development
    • It works closely with the rest of the World Bank Group to help developing countries reduce poverty, promote economic growth, and build prosperity.

    Other functions of IBRD Bank –

    • Supports long-term human and social development that private creditors do not finance
    • Preserves borrowers’ financial strength by providing support in times of crisis, when poor people are most adversely affected
    • Promotes policy and institutional reforms (such as safety net or anti-corruption reforms)
    • Creates a favorable investment climate to catalyze the provision of private capital
    • Facilitates access to financial markets often at more favorable terms than members can achieve on their own
    • Resources of the Bank consist of the capital and borrowings.

    Before granting or guaranteeing a loan, the Bank considers the following matters –

    • merit of the proposal
    • The borrower has reasonable prospect for repayment i.e. credit worthiness
    • The loan is meant for productive purposes and to finance foreign exchange requirements of specific projects of reconstruction and development.

    How is IBRD financed?

    • Simple as other banks are financed; float bonds in world financial markets. In fact, in these markets, IBRD is known simply as the World Bank
    • shareholder are member states with governments paying in about $14 billion in capital in proportion to their IMF quota
    • IBRD has maintained a triple-A rating since 1959. Its high credit rating allows it to borrow at low cost and offer middle-income developing countries access to capital on favorable terms in larger volumes, with longer maturities <What is a credit rating? How is it determined? What is the effect of a good or bad credit rating on the prospects of countries and corporations? Answer in the comments.>
    • IBRD earns income every year from the return on its equity and from the small margin it makes on lending
    • This pays for IBRD’s operating expenses, goes into reserves to strengthen the balance sheet, and provides an annual transfer of funds to IDA, the fund for the poorest countries

    India and the IBRD

    • India is the founder-banker of the Bank
    • Bank has not been merely a lending institution to India but has also served as a worthy counsel whom India has approached for advice in difficulties
    • India has been the single largest borrower of the Bank
    • Main sectors for which IBRD assistance of US$ 3049 million has been provided are roads & highways, energy, urban infrastructure (including water & sanitation), rural credit, disaster management and the financial services sector
    • The Bank has also been instrumental in the establishment of the India Development Forum, a consortium of donor nations to India.
    • The massive financial assistance pledged by the consortium members has been the largest aid commitment and is a landmark in the history of development aid from developed countries to developing countries.

    International Development Association (IDA)

    IDA is the part of the World Bank that helps the world’s poorest countries

    IDAfront


    When? 1960

    Aim: To reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

    Main Functions of IDA:

    • IDA provides loans which are practically interest-free and for longer periods. Therefore, it is often referred to as the ‘soft loan window’ of the Bank.
    • Only the poorest of the poor member countries (with per capita income below $1215 in 2016) are eligible for assistance.
    • IDA complements the World Bank’s original lending arm, International Bank for Reconstruction and Development (IBRD)

    IDA1


    Structure of lending and credits by IDA

    • IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 38 years, including a 5- to 10-year grace period
    • IDA also provides grants to countries at risk of debt distress <grants are donations i.e. not to be rapid>
    • In addition to concessional loans and grants, IDA provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI)
    • IDA is a multi-issue institution, supporting a range of development activities, such as primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms
    • These interventions pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions

    Borrowers of IDA

    • 77 countries (plus India) are currently eligible to receive IDA resources
    • Eligibility for IDA support depends first and foremost on a country’s relative poverty, defined as gross national income (GNI) per capita below $1,215 in fiscal year 2016
    • IDA also supports a number of countries, including several small island economies, which are above the operational cutoff but lack the creditworthiness needed to borrow from IBRD
    • Some countries, such as Vietnam and Pakistan, are IDA-eligible based on per capita income levels, but are also creditworthy for some IBRD borrowing. They are referred to as “blend” countries <receive loans from bot IDA and IBRD; India is also one such country>

    Roadmap ahead for IDA

    • Today’s fiscal environment presents challenges for all those involved in development from borrowing countries to donors<funds are simply not available after financial crisis>
    • The new Sustainable Development Goals (SDGs) present a critical opportunity to end extreme poverty. That would need strong commitment and financing to meet the goals
    • A number of countries are expected to exceed IDA’s per capita income threshold in the next decade, it is also clear that these countries will continue to be home to millions of poor people who will still need extensive support, particularly during the transition period from concessional to harder lending terms
    • As the main instrument for implementing the global goals in the poorest countries, IDA will need to shift toward increasingly innovative approaches to deliver trans-formative results

    India has exceeded IDA’s per capita income threshold of 1260$ and is thus technically not eligible to tap IDA window but India campaigned to extend the tenure of India’s concessional loans by several more years (till 2022), given the country’s high poverty levels and WB decided to continue it’s IDA concessional lending in view of 300m people living below poverty line.

    International Finance Corporation (IFC)

    Largest global development institution focused exclusively on the private sector in developing countries

    When? 1956

    Members: 184

    Objectives of the IFC

    • To further economic development by encouraging growth of private enterprise in member-countries
    • Invests in private enterprise in member-countries in association with private investors and without Government guarantee, in cases where sufficient private capital is not available on reasonable terms
    • Seeks to bring together investment opportunities, private capital of both foreign and domestic origin, and experienced management
    • Stimulates conditions conducive to the flow of private capital – domestic and foreign – into productive investments in member-countries
    • IFC investment normally does not exceed 40% of the total investment of the enterprise
    • In case of its investment by equity participation, it does not exceed 25% of the share capital

    IFC and India

    • IFC makes strategic investments and advisory interventions to promote inclusive growth, help address climate change impacts, and encourage global and regional integration
    • In India, IFC is sharpening its focus on increasing access to energy, finance and healthcare; providing sustainable infrastructure; and boosting regional linkages

    Focus Areas –

    • Building infrastructure
    • Facilitating renewable energy generation
    • Promoting cleaner production, energy and water efficiency
    • Supporting agriculture for improved food security
    • Creating growth opportunities for small businesses
    • Helping reform investment climate

    Let’s take a look at India-IFC ties

    • Since 1956, IFC has invested in 346 companies in India, providing over $10.3 billion in financing for its own account and $2.9 billion in mobilization from external resources
    • IFC’s committed portfolio in India is nearly $4.7 billion<India has IFC’s largest portfolio exposure>
    • In FY14, IFC committed nearly $1.2 billion across 34 projects in India
    • IFC also has a strong advisory program in India with a total portfolio value of $62 million across 74 projects.
    • In FY14, three quarters of IFC’s advisory program had a footprint in India’s priority states

    IFC also issue India’s first masala bonds to tap in foreign funding in local currency. similar IFC also issued first green masala bonds to raise investments to deal with climate change. Want to know what is masala bond, click here to read more

    Concerns around World Bank lending and reform of World Bank

    • As we learnt in the earlier part on Bretton Woods institution that main concern is around conditionalities and impact of world bank funded infrastructure projects on local population<displacement, loss of jobs etc.>
    • The Bank’s undemocratic governance structure – which is dominated by industrialised countries – and its privileging of the private sector
    • the Bank’s private sector lending arm (IFC) has been criticised for its business model<increasing use of financial intermediaries such as private equity funds and funding of companies associated with tax havens>
    • World bank recently announced that it would not fund coal technologies for climate change reasons, it would make task of investing in clean coal technologies difficult for countries such as India

    Reforms

    • World bank’s governing structure need to be made more democratic
    • Developing countries should be given a chance to shape the agenda
    • There should be more transparency on the issues that come to the table
    • More resources(increase the capital base) need to be put in so that it continue lending to poorer countries

    Let’s revise World Bank in brief

    Name Main Function Comment
    IBRD (WB) Infrastructure loan to poor middle income but credit worthy countries at just below market rates India founder member, largest recipient of loan
    IDA Soft loan at virtually zero rate for poverty eradication to poorest countries India founder largest recipient, has crossed the per capita threshold for funding but will continue to receive IDA funds
    IFC Private sector arm of WB group, supports private enterprises in developing countries India founder, IFC launched India’s offshore masala bond
    MIGA Provide guarantee to investors against non-commercial political risk India not founding member
    ICSID Resolve disputes through arbitration and conciliation India not a member

    UPSC ke Sawal

    #1. Which one of the following groups of items is included in India’s foreign-exchange reserves? (IAS pre 2013)

    1. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
    2. Foreign-currency assets, gold holdings of the RBI and SDRs
    3. Foreign-currency assets, loans from the World Bank and SDRs
    4. Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

    #2. ‘BioCarbon Fund Initiative for Sustain- able Forest Landscapes’ is managed by the (IAS pre 2015)

    (a) Asian Development Bank
    (b) International Monetary Fund
    (c) United Nations Environment Programme
    (d) World Bank

    #3. The price of any currency in international market is decided by the (ias pre 2012)

    1. World Bank
    2. demand for goods/services provided by the country concerned
    3. stability of the government of the concerned country
    4. economic potential of the country in question

    Which of the statements given above are correct?

    • (a) 1, 2, 3 and 4
    • (b) 2 and 3 only
    • (c) 3 and 4 only
    • (d) 1 and 4 only

    #1. The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate. (IAS mains 2013)

    #2. Does India Need the World Bank?

  • If I offered a free ride to a stranger, who was waiting for a cab…

    What did I do to the nations GDP?

    – a question from quora! For fun

  • Civilsdigest ED#3 | Online copy released | 50 INR

    Buy your copy from this link – https://www.instamojo.com/civilsdaily/civilsdigest-ed-3-apr-2016/

    The offline release is slated to happen next week via Unique Publishers. We will let you know when that happens.

  • Discussing Budget 2016-17 | Governance and Ease of Doing Business

    In this section, we will deal with the issue which is of critical importance to the growth of every economy – Governance and Ease of Doing Business

    Take a look at overall approach of govt. towards Governance and Ease of Doing Business. Want to read the story of Ease of Doing Business, click here


    Focus Area

    Rationalisation of Personnel

    Govt. has set up a task force to look into the rationalisation of human resources in various ministries. A comprehensive review and rationalisation of autonomous bodies is also under process.

    Procurement

    • A technology driven platform will be established to facilitate procurement of goods and services by various ministries and agencies of the Government
    • This will bring more transparency and efficiency in govt procurement of goods and services

    Amendment to Companies Act

    • Govt. will introduce a bill to amend Companies Act, to remove the difficulties and impediments to ease of doing business
    • It would also improve the enabling environment for start-ups

    Inflation

    Govt has approved creation of buffer stock of pulses through procurement at Minimum Support Price and at market price through Price Stabilisation Fund, in order to deal with the problem of abrupt increase in prices of pulses <Despite recent cooling down of food inflation, sudden spurt in prices of onions, pulses etc is a common feature of Indian agriculture. What are the reasons? Enumerate steps taken by the govt along with suggestions to remedy the problem. Answer in the comments.>

    Want to understand intricacies of inflation, CPI, WPI, PPI etc, click here 

    New Initiatives

    Ek Bharat Shreshtha Bharat

    • It seeks to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism
    • It will strengthen understanding of each other and create a closer engagement between different States and Districts in a structured manner

    Targeted Subsidies

    Govt. will take several measures to ensure targeted disbursement of govt. subsidies and financial assistance to the actual beneficiaries:

    • Govt. has introduced a bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework. A social security platform will be developed using Aadhar to accurately target beneficiaries
    • Govt. will introduce DBT for fertilizers on a pilot basis in a few districts across the country with a view to improving the quality of service delivery to farmers
    • Govt. will take provide automation facilities in 3 lakh Fair Price Shops out of 5.35 lakh Fair Price Shops in the country by March 2017

    Update- Lok Sabha has already passed the Aadhar bill which was introduced as money bill. <Enumerate the salient provisions of Aadhar bill? Does it come into conflict with privacy and thus violative of fundamental right to privacy? Was govt right in introducing it as money bill? What are the implications of bills being introduced as money bill? Answer in the comments>

    Criticism– No big bang reform measures announced

    PS: Please click on the green hyperlinked text to read more about the concepts. Revise and revise & feel free to ask pertinent questions.

    
    
    Published with inputs from Pushpendra | Image: Finmin
  • Discussing Budget 2016-17 | Fiscal Discipline

    In this section, we will deal with the issue which is of critical importance to the growth of every economy – Fiscal Discipline

    budget_fiscal

    Before, you know about fiscal position of the country. For a better understanding, do read our Budget Deficits Explained

    Focus Areas

    Fiscal Position

    Fiscal Deficit: The fiscal deficit in RE 2015-16 and BE 2016-17 have been retained at 3.9% and 3.5% of GDP respectively

    Revenue Deficit: Govt. has improved upon the Revenue Deficit target from 2.8% to 2.5% of GDP in RE 2015-16.

    Seventh Pay Commission

    Govt has constituted a committee to examine the Seventh Pay Commission Report and give its recommendations.

    Follow our story on Seventh Pay Commission here.

    Rationalisation of Central Schemes

    • Govt has rationalised and restructured more than 1500 Central Plan Schemes into about 300 Central Sector and 30 Centrally Sponsored Schemes Answer in the comments.>
    • A sub-group of CMs was formed under NITI Ayog to review the Centrally Sponsored Schemes, which suggested that there should be two basket of schemes – one mandatory for all states and other optional

    New Initiatives

    Expenditure

    The total expenditure in the Budget for 2016-17 has been projected at Rs 19.78 lakh crore, consisting of Rs 5.50 lakh crore under Plan and Rs 14.28 lakh crore under Non-Plan.< Keep in mind, our non-Plan expenditure is higher than Plan expenditure> Answer in the comments.>

    Various committees have questioned the merit in having Plan and Non-Plan classification of govt expenditure. Govt. has decided that the classification will be done away with from fiscal 2017-18 and it will give greater focus to Revenue and Capital classification of govt expenditure.

    Quality of Expenditure: Every new scheme being sanctioned by govt will have a sunset date and outcome review, in order to improve the quality of govt expenditure Answer in the comments.>

    Fiscal Responsibility and Budget Management Act (FRBM Act)

    • Since FRBM involves rule-based budgeting, it has significantly helped both central and state govt
    • However, there are suggestions to move from fixed numbers for fiscal deficit targets to a fiscal deficit range as the target. This would give necessary policy space to the govt to deal with dynamic situations
    • Therefore, Budget proposed a committee to review the implementation of the FRBM Act

    PS: Please click on the green hyperlinked text to read more about the concepts. Revise and revise & feel free to ask pertinent questions.


    Published with inputs from Pushpendra | Image: Finmin
  • Know Your Services | The Indian Police Service

    Catch up on the earlier article: Know Your Services | The Indian Administrative Service

    Intro

    • The Indian Police Service or IPS, is one of the three All India Services
    • It replaced the Indian (Imperial) Police in 1948, a year after India gained independence from Britain
    • IPS is not a force itself but a service providing leaders and commanders to staff the state police and Central Armed Police Forces

    Remember Archana Ramasundaram?<first woman to head a central armed police force> Read more about her here. 

    Role:

    • To fulfill duties based on border responsibilities, in the areas of maintenance of public peace and order, crime prevention, investigation, and detection, collection of intelligence, VIP security, counter-terrorism etc.
    • Leading and commanding the Indian Intelligence Agencies like Research and Analysis Wing (R&AW), Intelligence Bureau (IB), Central Bureau of Investigation (CBI), Criminal Investigation Department (CID) etc. Our own James Bond 007 (Ajit Doval), is retired Kerala cadre IPS officer who went on to head IB
    • Leading Indian Federal Law Enforcement Agencies, Civil and Armed Police Forces in all the states and union territories
    • Leading and commanding the Central Armed Police Forces (CAPF) which include the Central Police Organisations (CPO) such as Border Security Force (BSF), Central Reserve Police Force (CRPF), Indo-Tibetan Border Police (ITBP), National Security Guard (NSG), Central Industrial Security Force (CISF)
    • Serve at head of the departments in policy making in the Ministries and Departments of Central and State Governments and public sector undertakings both at centre and states, Government of India
    • To interact and coordinate closely with the members of other All India Services and with the Indian Revenue Service and also with the Indian Armed Forces primarily with the Indian Army
    • To lead and command the force with courage, uprightness, dedication and a strong sense of service to the people

    However, with changing times, more and more IPS officers are serving in departments and areas that used to exclusively be the forte of IAS officers, just as the IAS officers now at times head departments like vigilance which were exclusively given to IPS officers. This widening of opportunities and exposure has made the IPS even more attractive.

    Eligibility:

    • The eligibility criteria for the IPS exam is the same as for other services but there are some physical criteria that the IPS officers have to have.
    • Once the candidate clears the civil services and gets allotment to the IPS as per his rank, he has to go through the specified physical tests to make him eligible for service.

    Some of the special physical requirements for IPS are listed below:

    • A minimum height of 165 cm for men and 150 cm for women (the minimum height is relaxable to 160 and 145 cm for men and women respectively in the case of candidates belonging to ST and to races such as Gorkhas, Garhwalias, Assamese, Kumaonis, Nagaland Tribals, etc.)
    • The minimum chest girth, fully expanded: 84 cm for men and 79 cm for women. Expansion of 5 cm for both men and women
    • The total amount of Myopia (including the cylinder) should not exceed minus 4.00 D and the total amount of Hypermetropia (including the cylinder) should not exceed plus 4.00 D. The presence of Squint is a disqualification
    • The Distant vision for better eye(Corrected Vision) should be 6/6 or 6/9 and for the worse eye(Uncorrected Vision) should be 6/12 or 6/9 and near vision should be J1 and J2 respectively.
    • Spectacles are permitted
    • High grade color vision is required and Binocular vision is needed <colour blinds are ineligible>

    Cadre system:

    • Again being an ‘All India Service’, it follows the Cadre system
    • In this system officers are allotted to various state cadres and your service is allotted to that state. So for all practical purposes you belong to that state service and may be deputed elsewhere but you’ll always be recognized by your parent cadre
    • The cadre system is allotted on a basis of rank similar to IAS cadre allocation and the toppers of each state may get a chance to get their home states if they have opted for such a preference

    Recruitment and Training:

    • The IPS recruitment and training period is among the longest in all services and extends to almost 2 years in total
    • Usually the first part of the training is done with the other services like the IAS at Mussoorie
    • From Mussourie they go for Bharat Darshan with other services in groups
    • The second part of the training in 2 phases is done in the National Police Academy (NPA) in Hyderabad (academy website here)
    • The IPS officers also have a certain amount of training in a district of their cadre in between the 2 phases of training at the IPS academy

    The motto of the IPS academy is Satya Seva Surakshnam, Sanskrit for ‘Mean Truth, Service Security’.

    A special training in driving and mechanism of motor vehicles, and underwater survival are given to trainee oofficers


    Salary structure


    Ranks & Insignia

    Always fascinated about 3 stars on shoulder? See here what you get at different ranks

    Published with inputs from Swapnil
  • Does any one goes through DOWN TO EARTH magazine for enviro???

    they have some good articles these days… anyone here who reads them?

  • Economic Survey For IAS | Chapter 05 | Mother and Child

    If you haven’t read first four chapters, read them here first,  Chapter two, Chapter three, chapter four

    Despite the high economic growth during the last two decades, India has not been able to improve it’s maternal and child health indicators at the desired pace. We failed to achieve health goals related to Millennium Development Goals(MDGs) and our maternal and infant mortality remains unacceptably high.


    India is in the middle of a demographic dividend which is going to last till about 2035-2040 (25 more years or one more generation) and it’s imperative that we invest in human capital to reap the fruits of demographic dividend. This will raise our long run economic growth potential.<What is demographic dividend? How does it help raise long run growth potential? Answer in the comments below.>

    In this context, economic survey argues that given fiscal constraint <we can only spend as much as we tax plus some borrowing, never behave like arm chair pundits asking to raise budgetary allocation for everything without raising any taxes or train fares or bus fares> and state’s limited capacity to deliver public services <we know how state i.e. govts mess up almost every sector they get into, just see the performance of public schools i.e. state should not take tasks beyond it’s capacity; first improve capacity and then take additional tasks; just passing RTE or establishing 5 more AIIMS or IITs is not enough>, state should invest in relatively low cost maternal and early life health and nutrition programmes.

    What’s the rationale behind investing in mother and child?

    Intrinsic reasons– it improves quality of life directly and expands possibilities for the individual <if someone is not born healthy, chances are he would be unhealthy in later life as well>

    Narrow economic logic

    1. Research has shown that countries with better maternal and infant health “at takeoff” grew faster over the subsequent 20 years. <takeoff stages is similar to takeoff of an airplane, slow growing economy suddenly starts to grow very fast. For instance, China post economic reforms in 1979>
    2. Tomorrow’s worker is today’s child or foetus and  events which occur while a child is in the womb i.e inside pregnant mother or very young (<2 yrs) affect cognitive development and health status even in adulthood i.e. if today’s child is weak, chances are tomorrow’s worker would be less productive.

    Why does health of new born affects outcome much beyond the childhood?

    1. the most rapid period of physical and cognitive development in a person’s life occurs in the womb <rapid development phases are most susceptible to environmental insults>
    2. Dynamic complementarities in human capital accumulation- it simply means one human capital for instance health would affect accumulation of other human capital for instance education and training/skill in a dynamic way and vice versa. For instance healthy mother # healthy baby # learns better <cognitive development better in the womb as mother is healthy> and stays on in school longer. Or consider # unhealthy mother # weak baby # learns less and stays in schools for shorter period # less skilled and competent 
    • research has shown that low birth-weight children benefit less from early-life cognitive stimulus programs i.e. early we intervene the better i.e. investment in mother and fetus. very young children
    • success of subsequent interventions—schooling and training—are influenced by early-life development
    • programs targeting younger children also appear relatively cheap in comparison to investments made in older children. For instance, iodine supplementation is way more cheaper compared to improving teacher quality or re-designing institutions to raise school accountability <good for fiscally constrained govt.>, also requires less service delivery capacity from the state, for instance, improving teacher quality would require teacher training, monitoring that they actually show up and teach in schools <investing in mother and child good for capacity constrained govt.>

    The Dismal State of (Child’s) Play in India

    Height is a good proxy for early life conditions and height is determined by early life environment and net nutrition.

    “net nutrition” is defined as the sum total of (i) the nutrition available from the mother in the womb and during breastfeeding, (ii) the quantity and quality of the food that complements breast milk from 6-24 months, and (iii) energy losses due to disease and infection, and poor absorption of nutrients. <part 3 is an important cause of malnutrition in India due to open defecation and subsequent infections resulting in reduced absorption and increased losses in feces as well as due to high metabolism during infections>

    Quick statistics

    1. 48% of under 5 children are stunted (low height) compared to 39% in Sub Saharan Africa
    2. 43% are underweight compared to 20% in Sub Saharan Africa
    3. 28% are born low birth weight compared to 13% in Sub Saharan Africa

    This data is taken from Amartya Sen’s book An Uncertain Glory which took data from UNICEF(2012). This condition of poor nutrition indicators comapred to much poorer and war torn Sub Saharan Africa is known as South Asian Enigma or The Indian Paradox and the low status of women is cited as one of the explanation.


    3 quick points about height for age in India

    1. there has been improvement over time in both urban and rural India
    2. there is a persistent rural-urban height gap which has not closed over the past decade
    3. despite the progress made, India remains a negative outlier—our children are on avg shorter than healthy children

    Consequences-height-cognitive development gradient

    Greater the height, greater the cognitive development (of course corrected for genetic potential for height not that because Chinese are short they are less smart then tall Caribbeans)

    • taller Indian children are considerably better readers than shorter ones (height proxy for nutrition which affects cognitive development)
    • absolute reading ability has not increased over time i.e we have not made much progress in addressing the nutrition and education challenge

    Clearly much more needs to be done to improve the nutrition situation in India.

    The Dismal State of Maternal Health

    As we have already discussed first 1000 days of life (nine month in womb plus 2 years) are most critical for a child’s development. They depend critically on maternal health (esp 9 months in the womb)

    70% of infant mortality (children who die before reaching their 1st birthday) is due to neonatal mortality(dying before 1 month). A leading cause of this is low birth weight which is clearly due to poor maternal health and nutrition.

    Consider this data-

    1. 42.2% of Indian women are underweight at the beginning of pregnancy
    2. 50% of pregnant ladies are anemic(low hemoglobin in blood) <data from An Uncertain Glory>
    3. Women from richer households in India start pregnancy heavier,suggesting that resources are at least part of the reason for low pre-pregnancy weight <poor #less to spend on nutritious food #low pre pregnancy weight>

    No surprises then that women in India gain only about 7 kgs during pregnancy, substantially less than the 12.5- 18 kg gain that the WHO recommends for underweight women.

    Very very important sociological insights

    Use these observations in paper 1 (society) and essay. They will certainly add value to your answers.

    1. reason for poor maternal health is that social norms accord young women low status in joint households. <When compared across the same ages, till about age 35, fraction of underweight women exceeds that of men by at least 5 percentage points. > within-household nutritional differentials are stark
    2. lower status of younger daughter-inlaws in families. <children of younger brothers in joint family households are significantly more likely to be born underweight than children of their older brother> Chacha’s children more likely to be born low birth weight than Tau’s<Tijori ki Key Badi bahu ke haath mein>
    3. Indian firstborn sons are found to have a height advantage over African firstborn sons, and the height disadvantage appears first in second-born children, increasing for subsequent births<preference for healthy male heir>

    Improving Maternal Health in India

    Clearly much more needs to be done to improve maternal health.

    Govt response-. The National Food Security Act of 2013 legislated a universal cash entitlement for pregnant women of at least 6,000 rupees.

    But it will only be successful if families convert these payments into more, higher-quality food and more rest for pregnant women and to make sure it happens, the cash transfer could be paired with education about how much weight a woman should gain during pregnancy and why weight gain during pregnancy is important. <cash transfer plus health education>

    You can follow the whole women empowerment story, click here

    Universal v/s conditional cash transfers

    Should cash transfer be universal i.e given to every pregnant women regardless of what she does with that money or conditional on women performing certain tasks such as visit hospital regularly, getting delivered in hospital, vaccinating her child etc as in Indira Gandhi Matritva Sahiyog Yojana (IGMSY)?

    Conditional cash transfer seems better but it entails high administrative costs, delays and often lead to significant exclusion. Hence survey suggests the cash transfer should be given in a single, lump-sum payment early in pregnancy to avoid delays, reduce administrative costs, and ensure that it is possible for the household to spend the money on better food during pregnancy.

    Case for going universal and problems with conditional cash transfer

    1. 2013-2014 Rapid Survey on Children (RSOC) finds that a little less than half of the women aged 15-18 are underweight
    2. Maternal nutrition is so poor that Indian women actually weigh less at the end of pregnancy than sub-Saharan African women do at the beginning
    3. Government should put new emphasis on educating women and their families about weight gain during pregnancy
    4. It should combat the common, though false, notion that women should eat less, not more, during pregnancy<need for health education>
    5. But conditional transfers solve only demand problems while India chiefly faces supply problems i.e. unavailability of health services.
    6. Also the need to document the fact that conditions have been met invites corruption<health worker might not give the women the proof of attending health clinic without a bribe>

    With careful design and significant investment of state capacity, maternal health could be significantly improved during pregnancy.

    The problem of open defecation

    Facts-open defecation in India is much more common than in even much poorer countries <61% in rural India v/s 37 % Nepal, 32% rural Sub Saharan Africa, just 1.8% B’Desh>

    Only lack of toilets or income constraints is not the reason, but there are sociological reasons

    Fact- many people in rural India who live in households that contain working latrines that are in use by other household members nevertheless defecate in the open.

    Research suggests that rural Indian households reject the types of latrines promoted by the WHO and the Indian government partly because their pits needed to be emptied every few years and empty the latrine pit is associated with the strong notion of purity and pollution <history of untouchability- work of disposing of human faeces is associated with severe forms of social exclusion and oppression>

    Consequences- disease, diarrhoea, environmental enteropathy (reduced absorption of food) resulting in less amount of net nutrition available to kids as we discussed above.

    Building toilets and ensuring people defecate in the open is an example of public good as even those who don’t defecate in the open get sick due to germs from people who defecate in the open.

    Addressing open defecation

    Govt. response- swatch Bharat Abhiyan

    • In the last year alone, the government built over 80 lakh toilets
    • UN’s Sustainable Development Goals commit to ending open defecation worldwide by 2030

    Historically, open defecation in India has declined by about 1 % per year  <about 50 years before India becomes open defecation free>. We need to more than triple the rate of reduction to achieve SDG. For that, it is important to understand barriers to toilet adoption in rural India and promote latrine use <as we just learnt, it;s much of a sociological, behavioral problem>

    Influencing social norms to make investment yield better return


    A big challenge is deeply entrenched norms and facilitating behavioural change. One can build clinics in villages or transfer money to pregnant mothers or build latrines, but how does one bring out the right usage of all this physical capital ?

    Govt has a progressive role to play in changing norms, and thus the importance of high pitch campaigns such as Swatch Bharat Abhiyans.

    The government has recognised the importance of influencing social norms in a wide variety of sectors—

    • persuading the rich to give up subsidies they do not need (give up lpg subsidy campaign)
    • reducing social prejudices against girls (selfie with daughter)
    • educating people about the health externalities of defecating in the open (swatch bharat)
    • and encouraging citizens to keep public spaces clean (swatch Bharat)

    Way forward-

    • Invest more resources in understanding the behavioral patterns and how to change them
    • Create a Nudge unit within government for behavior change communication as other countries have done

    You might want to read- Blog from CD published on The Better India

    7 Rights Every Pregnant Woman in India Should Know About (govt schemes for pregnant women in short, imp for exam)


    Open all the hyperlinks. Learn, understand and revise

    Ask all your doubts in the comment section below or in doubts clearing forum . All your suggestions, criticism and feedback are most welcome.


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  • The Strategic Importance of Space Law for India

    • There is a growing clamour for a comprehensive, legally binding treaty to commit nations to keep outer space a zone of peace.
    • With outer space becoming the fourth dimension of warfare, India cannot remain a mute spectator to the grim reality of final frontiers emerging as a new theatre of war.
    • For India, a comprehensive space act has become a critical necessity to give a greater level of acceleration to its space activities.

     

    Since the dawn of the space age heralded by the launch of Soviet Sputnik way back in October 1957, there has been a burgeoning growth in the global space activities, underpinning the need for a regulatory mechanism supported by a legal framework to facilitate the smooth, robust growth of the exploration of final frontiers without any negative fall outs for earthlings.

    There is a growing clamour for a comprehensive, legally binding treaty to commit nations to keep outer space a zone of peace. For obvious reasons, USA has expressed its opposition to such a treaty.

    The 1967 UN outer space treaty ratified by all the countries of the world is perhaps the first ever comprehensive legal mechanism aimed at regulating the global space activities. This treaty specifically forbids the use of outer space for testing and deploying weapons of destruction including nuclear devices.

    For it treats outer space as the common heritage of mankind meant for peaceful uses. Even so, countries including USA, former Soviet Union and China have exploited outer space for experimenting with anti- satellite and killer satellite systems.

    However, it is imperative for India to register its entry date so that the cut off date, whenever it comes as part of this proposed treaty, does not work to India’s disadvantage in so far as preparing for the country for space war is concerned.
    Indeed, with outer space becoming the fourth dimension of warfare, India cannot remain a mute spectator to the grim reality of final frontiers emerging as a new theatre of war.

    While legally binding international treaties are vitally essential to regulate the healthy and meaningful growth of space activities without any negative or problematic consequences for earthlings, individual space faring nations too should have their own space acts to regulate their space activities in consonance with dynamics of global space activities.

    For India, which has made a mark as a leading space faring nation in the aftermath of the successful probes to moon and Mars, a comprehensive space act has become a critical necessity to give a greater level of acceleration to its space activities.

    Increased private participation in Indian space activities would allow ISRO to concentrate on cutting edge areas of research and focus on deep space probes.

    And with the Indian Government making vigorous efforts to use space technology to drive a range of developmental and governance activities in the country, the need for a well conceived space act has become all the more pronounced.

    In this context, A.S.Kiran Kumar, Chairman, Indian Space Research Organisation (ISRO) says that a detailed paper on the subject has already been submitted to the Indian Government, following a wide ranging discussions with academicians and legal experts in January 2015.

    He also made it clear that the proposed space act would need to be cleared by the Indian Parliament. According to Kumar, very few countries in the world have their own exclusive legislations pertaining to the use of outer space. But Kumar made the point that a law is necessary for the Government to spell out how it would go about tackling space related issues including untoward incidents.

    Right at the moment, ISRO continues to monopolise Indian space activities with Indian industries, in both the private and public sector, providing supplies and services on a modest scale. As such, the proposed Indian space act will have provisions to boost private participation in the rapidly expanding Indian space activities.

    On the commercial front, the proposed space law would open up the avenues for private players to enter the satellite and launch vehicle business of the country in a big way. Once the space act comes into force, private players will be in position to own and operate satellite systems as well as launch vehicles.

    For promoting Indian space business, now being spearheaded by the Bangalore based Antrix Corporation, the commercial arm of the Indian space programme, ISRO would need to step up its capability for building and delivering launch vehicles and satellites with a vastly enhanced frequency.

    For this strategy to assume a practical shape ISRO should encourage Indian industries to float consortium to build and deliver satellites and launch vehicles in a ready to use condition. Indeed, for this change over, a space act spelling out a dynamic and enhanced role for the Indian industry in the country’s space programme would work as a facilitator.

    The anti satellite test carried out by China in early 2007 heightened the clamour in India for preparing the country for the eventuality of a space war. In a stunning demonstration of its military might, China successfully destroyed its ageing weather watch satellite by using a modified version of a ground based ballistic missile.

    ISRO has already on hand a proposal to rope in private industries and encourage them float consortiums to build and launch four stage Polar Satellite Launch Vehicle(PSLV) described as a Indian space workhorse on a routine basis.
    To this end, it has mooted the idea of setting up a space industrial corridor close to Satish Dhawan Space Centre (SDSC), the Indian space port on the eastern coast of India.

    Similarly, ISRO is looking at the possibility of promoting an industrial park in Bangalore where in private industrial consortiums would take up the responsibility of building and delivering the satellites in a ready to use condition.

    For instance, the success of the European space transportation company, Arianespace, is not little due to the active participation of the European industries. Right at the moment, Arianespace accounts for around 60 percent of the global market for launching satellites on commercial terms. The Ariane vehicle deployed by Arianespace has proved to be a reliable and efficient space transportation system.

    ISRO, being a purely civilian set up with a mandate to promote the peaceful uses of outer space, the Indian defence set up will look at the prospect of having an exclusive agency to exploit the military potentials of outer space. In particular, the Indian defence establishment is exploring the possibility of setting up a launch pad dedicated to orbit military satellites.

    Against this backdrop, the Indian military set up will also scrutinise the draft of the Indian space act. Verily, the proposed space act should take care of the needs and concerns of military set up in terms of using outer space to sustain its strategic superiority.

    Indian defence experts have suggested the need for India to go in for both defensive and offensive space war strategy.

    In all probability, the Indian military establishment would press for addressing the issue of space security arising out of the efforts to deploy anti satellite and killer satellite devices.

    Similarly, the need for harnessing the potentials of space technology for military applications could be an important issue for the Indian defence set up. For ISRO, on account of its purely civilian mandate, cannot associate directly with any endeavour involving the space defence programme.

    It is in the fitness of things Indian defence experts have suggested the need for India to go in for both defensive and offensive space war strategy. The defensive aspect involves hardening of satellites against the machinations of the space based and ground based “killer devices” including anti satellite systems.
    Against this backdrop the proposed Indian space act should contain a legal provision to support a well defined space security plan to be unveiled by the Indian defence establishment.

    In particular the, tri service Indian aerospace command , which unfortunately is yet to be approved by the Indian Government , should have under its control a well equipped space and missile force to take care of all aspects of space war.

    “Agni-V can be used to launch mini satellites into a low earth orbit when access to one’s major satellite constellation gets disrupted” observed the then DRDO chief V.K.Saraswat

    Of course, Defence Research and Development Organisation (DRDO) has made it clear that it is capable of engineering “building blocks” of a killer satellite system to help prepare the country for the eventuality of a space war. What’s more, a modified version of the long range Agni-V missile can be used to launch defence satellites into a low earth orbit during emergency.

    Certainly it is well within the Indian capability to develop advanced technological elements to face the threat of a full fledged space war in the future. All that is required is the go ahead from the political dispensation in New Delhi.
    Whether the Narendra Modi led Government would take a bold decision to give a green signal for an Indian space war strategy, one would need to wait and watch.

    This article was first published here.