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Subject: Governance

Important aspects of Society

  • Weighing in on the efficacy of female leadership

    The article analyses the issue of women representation and leadership.

    Role of female leaders in pandemic

    • Germany, Taiwan and New Zealand have women heading their governments.
    • Three countries seem to have managed the pandemic much better than their neighbours.
    • A detailed recent study by researchers in the United States reports that States which have female governors had fewer COVID-19 related deaths.
    •  The authors of the study conclude that women leaders are more effective than their male counterparts in times of crises.

    Role of women as pradhans in gram panchayats

    • Women leaders perform significantly better than men in implementing policies that promote the interests of women.
    • This was demonstrated in study conducted by Nobel Laureate Esther Duflo and co-author Raghabendra Chattopadhyay.
    • They used the system of mandated reservations of pradhans in gram panchayats to test the effectiveness of female leadership.
    • Study concluded that pradhans invested more in rural infrastructure that served better the needs of their own gender.
    • This is also an important goal from the perspective of gender equality.

    Underrepresentation of women in politics

    •  Female members make up only about 10% of the total ministerial strength in India.
    • The underrepresentation of female Ministers in India is also reflected in the fact that there is only one female Chief Minister.
    • Despite this, women constitute just over 14% of the total strength of the Lok Sabha.
    • This gives us the dismal rank of 143 out of 192 countries for which data are reported by the Inter-Parliamentary Union.

    State of Women’s Reservation Bill

    • Women running for elections face numerous challenges, it is essential to create a level-playing field through appropriate legal measures.
    • Attempts have also been made to extend quotas for women in the Lok Sabha and State Assemblies through a Women’s Reservation Bill.
    •  Male members from several parties opposed the Bill on various pretexts.
    • Although the Rajya Sabha did pass the bill in 2010, the Lok Sabha and the State legislatures are yet to give their approval.
    • 24 years that have passed since it was first presented in the Lok Sabha.

    Way forward

    • Political parties can sidestep the logjam in Parliament by reserving say a third of party nominations for women.

    Conclusion

    There is substantial evidence showing that increased female representation in policy making goes a long way in improving perceptions about female effectiveness in leadership roles. This decreases the bias among voters against women candidates, and results in a subsequent increase in the percentage of female politicians contesting and winning elections.

  • Exploring the idea of Social Stock Exchange

    Context

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

    What are Social Stock Exchanges (SSEs)?

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

    Issues with the idea of Social Stock Exchange

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

    Why civil society is sceptical

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

    Will the entry of private sector benefit social sector

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

    Solving complex social problems

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

    Conclusion

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

  • Upholding transparency in governance

    The article discusses the issue of growing lack of transparency in the functioning of government.

    Issues with Transparent Governance in India

    1) Electoral bond

    •  They were introduced in February 2017— they allowed anonymous donations to political parties and, therefore, protected the privacy of the donors.
    • The Election Commission of India (ECI) criticised the opacity of this financial mechanism.
    • The ECI told the government that this arrangement would prevent the state from ascertaining whether a political party has taken any donation in violation of provisions under Section 29B of the Representation of the People Act.
    • Section 29B prohibits the political parties from taking donations from government companies and foreign sources.
    • Electoral bonds also made it impossible to check whether a company was giving to parties more than what the Companies Act (2013) permitted, that is 7.5 per cent of the net average profit of the three preceding financial years.

    2) Sealed envelopes

    • Sealed envelope has become a modus operandi in several Indian institutions, including the Supreme Court (SC).
    • In the case of political funding by electoral bonds or otherwise, a three-judge bench in 2019 directed political parties to submit the details of donations received to the ECI in sealed cover.
    • The Assam administration had to show the progress it was making in the implementation of the National Register of Citizens by submitting reports in sealed covers.

    3) Undermining RTI

    (A) Reluctance to fill vacancies

    • The government did not appoint a Chief Information Commissioner for a year after the incumbent retired in August 2014.
    •  Similaryly, government did not fill vacant information commissioner posts in the Central Information Commission (CIC) between 2016 and 2018.
    • The backlog of pending appeals had reached 30,000 cases in late 2019 as the CIC has become a rather dysfunctional body.

    (B) Government refusing to disclose infromation

    • The government refused to disclose information which was previously available under the RTI Act.
    • Queries about phone tapping are not responded to anymore.
    • In 2016-17, the home and finance ministries rejected close to 15 per cent of the applications they received while the RBI and public sector banks rejected 33 per cent.
    • The RBI, for instance, refused to give any information about the decision-making process that led to demonetisation.

    (C) Limiting the powers of CIC

    • During the 2019 Monsoon Session of Parliament, government amended the RTI Act to limit the power of the CIC.
    • The five-year fixed tenure for the Chief Information Commissioner and information commissioners was abolished.
    • Their salaries were not fixed any more,  but notified separately by the government.

    4.Diluting Whisleblower’s Protection Act

    • Whistleblowers can now be prosecuted for possessing the documents on which the complaint has been made.
    • Issues flagged by them have to be in “public interest”.
    • Issues flagged should not be “affecting the sovereignty and integrity of India”, related to “commercial confidence” or “information received in confidence from a foreign government.

    5.Issues with statistical information

    • The National Statistical Commission and the Chief Statistician of India faced a credibility crisis when the new GDP series was released.
    • Similarly, the National Crime Records Bureau has been affected by delays (its 2017 report was released in October 2019) and deletions.
    • The National Sample Survey Office has also raised several concerns.

    Conclusion

    Transparency is not only necessary for maintaining a democratic polity, it is also necessary for making the economy work. Government actions must be informed by this fact.

    B2BASICS

    Electoral bond

  • Uniting South Asian region to combat Covid

    The article analyses how South Asia is dealing with the pandemic and the need for coordinated action by the countries across the region.

    Varying response across the region

    • Governments in South Asian countries have responded in varying degrees to counter the health and economic crises.
    • India resumed its economic activities on a limited scale following a strict lockdown.
    • Bangladesh, Nepal, Pakistan and Sri Lanka did the same after an extended lockdown.
    • Bhutan and the Maldives have managed to largely contain community transmission and avoid prolonged lockdowns due to a higher testing rate.
    • This is consistent with the hypothesis that countries that have conducted more tests have been more successful in containing the pandemic.

    Low mortality in the region

    • Unlike other regions, South Asian countries are experiencing a lower mortality rate despite having a higher infection rate.
    • However, epidemiological studies and the World Health Organization’s reviews have been sceptical about the data reliability.

    Effectiveness of state responses

    • India, Pakistan, Bangladesh, and the Maldives have unveiled stimulus packages.
    • The rest of the countries are yet to announce any concrete support for their low income and lower-middle income population still suffering from the economic fallout of the crisis.
    • In late March, India announced a $22.5 billion relief package to ensure food security and cash transfers to save the livelihoods of an estimated 800 million people living in poverty.
    • The Reserve Bank of India (RBI) slashed the repo and reverse repo rate to create liquidity for businesses.
    • In early April, Bangladesh announced a stimulus package worth about $8 billion in addition to an earlier $595 million incentive package for export-oriented industries.
    • Although countries like India and Bangladesh announced financial and material stimulus packages, distribution concerns remain unaddressed.

    United response by SAAR

    • The region need to look beyond narrow geopolitical rivalry and come together to work towards a well-coordinated response mechanism.
    • A SAARC COVID-19 fund was created following Indian Prime Minister Narendra Modi’s call to South Asian leaders.
    • Bbut governments are yet to decide on its modus operandi.
    • The region could leverage its existing institutional framework under the umbrella of SAARC to effectively respond to the crisis.
    • For instance, SAARC Food Banks could be activated to tackle the imminent regional food crisis, and the SAARC Finance Forum can be activated to formulate a regional economic policy response.

    Conclusion

    Faced with an unprecedented crisis, this is the right time for the leaders of the region to come together and take on the challenge collectively.

  • Issues with E-learning in India

    Pandemic has forced learning to the online mode. But there are several concerns with the online leaning. The article discusses the same.

    Providing learning opportunity in pandemic

    • The main thrust of providing learning opportunities while schools are shut is online teaching.
    • There are several sets of guidelines and plans issues by the government, the National Council of Educational Research and Training (NCERT) and the Central Board of Secondary Education (CBSE) for this purpose.
    • The Internet space is teeming with learning schemes, teaching videos, sites and portals for learning opportunities.

    3 issues with online learning

    1) Increasing inequality

    • Calamities, be they natural or man-made, affect the underprivileged the hardest,  COVID-19 is no exception.
    •  The COVID-19 shutdown has affected opportunity for the poor even harder than their counterparts from well-to-do sections of society.
    • The government began plans for students with no online access only by the end of August.
    • But online or digital education is available is for students with only online access.
    • Thus, digital India may become even more unequal and divided than it already is.

    2) Pedagogical issues leading to bad quality education

    • The quality of online teaching-learning leaves much to be desired.
    • Listening to lectures on the mobile phone, copying from the board where the teacher is writing, frequent disconnections can hardly and organically connect the child’s present understanding with the logically organised bodies of human knowledge.
    • The secondary students are in a better position still because of their relative independence in learning and possible self-discipline.
    • The beginners in the lower primary can get nothing at all from this mode of teaching.

    3)  An unwarranted thrust on online education, post-COVID-19

    • All reliable studies seem to indicate that Information and Communication Technology (ICT) in the classroom helps in already well-functioning systems, and either has no benefits or negative impact in poorly performing systems.
    • That does not indicate much hope from IT in our education system.
    • Transformation of schools in the current understanding of pedagogy, suitability of learning material and quality of learning provided through IT will further devastate the already inadequate system of school education in the country.
    • Of course, IT can be used in a balanced manner where it can help; but it should not be seen as a silver bullet to remedy all ills in the education system.

    Importance of institutional environment

    • The institutional environment plays an important role online teaching.
    • Even when the institutions function sub-optimally, students themselves create an environment that supports their growth morally, socially and intellectually in conversations and interactions with each other.
    • The online mode of teaching completely forecloses this opportunity.

    Conclusion

    Our democracy and public education system should try to address the issues raised here while promoting the online mode of education.

  • [pib] Maulana Azad National Fellowship (MANF) Scheme

    The Ministry of Minority Affairs has provided information about the progress of MANF Scheme in the Parliament.

    Note: As the name suggests, the scheme particularly aims to target the Minority community. Here, six major groups are considered a minority. Statement based questions often create bluffs on such conditions.

    MANF Scheme

    • The Ministry of Minority Affairs implements MANF Scheme for educational empowerment of students belonging to six notified minority communities i.e. Buddhist, Christian, Jain, Muslim, Sikh, Zoroastrian (Parsi).
    • The Scheme is implemented through the University Grants Commission (UGC) and no waiting list is prepared under the Scheme by UGC.
    • Candidates belonging to the Six centrally notified minority are considered for award of fellowship under the MANF Scheme.
    • The selection of candidates is done through JRF-NET (Junior Research Fellow- National Eligibility Test) examination conducted by the National Testing Agency.
    • Prior to 2019-20, the merit list was prepared on the basis of marks obtained by the candidates in their Post Graduate examination.
    • However, in 2018-19, only the candidates who had qualified CBSE-UGC-NET/JRF or CSIR-NET/JRF were eligible to apply.

  • [pib] YuWaah Platform

    Ministry of Youth Affairs & Sports and United Nations Children Fund (UNICEF) are set to establish YuWaah, Generation Unlimited (GenU), a global multi-stakeholder platform in India.

     YuWaah Platform

    As per the Statement of Intent, the objectives of this project are:

    • Support young people by providing entrepreneurship classes (online and offline) with successful entrepreneurs and experts, towards establishing an entrepreneurial mindset among young people.
    • Upskilling of young people on 21st-century skills, life skills, digital skills through online and offline channels and support them through self-learning, for their productive lives and the future of work.
    • Create linkages with aspirational economic opportunities to connect young people with employment opportunities, including building pathways to connect them with jobs or self-employment.
    • Providing career guidance support to young people through career portal as well as through job-readiness and self-exploration sessions to make young people career-ready.

  • Foreign Contribution (Regulation) Amendment Bill, 2020

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

    What are the news Amendments?

    (1) Prohibition to accept foreign contribution:

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

    (2) Transfer of foreign contribution:

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

    (3) Aadhaar for registration:

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

    (4) FCRA account:

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

    (5) Restriction in the utilization of foreign contribution:

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

    (6) Renewal of license:

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

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

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

    (8) Surrender of certificate:

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

    (9) Suspension of registration:

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

    Significance of the amendment

    1.Prevent misuse:

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

    2.Strengthen National security

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

    3.Transparency and accountability

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

    Criticism of the FCRA Bill, 2020

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

    Way Forward

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

  • New versions of labour codes – key proposals and concerns

    The government has introduced new versions of three labour codes – Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.

    Try this PYQ:

    Q.Disguised unemployment generally means:

    (a) A large number of people remain unemployed

    (b) Alternative employment is not available

    (c) Marginal productivity of labour is zero

    (d) Productivity of workers is low

    What are the key proposals?

    (1) Industrial Relations Code Bill, 2020

    • In this, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment.
    • The Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.
    • This implies industrial establishments with up to 300 workers will not be required to furnish a standing order, a move which experts say would enable companies to introduce arbitrary service conditions for workers.
    • These steps are likely to provide more flexibility to employers for hiring and firing workers without government permission.

    (2) Social Security Code

    • It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
    • Also, aggregators employing gig workers will have to contribute 1-2 per cent of their annual turnover for social security, with the total contribution not exceeding 5 per.

    (3) Occupational Safety, Health and Working Conditions Code

    • This code has defined inter-state migrant workers as the worker who has come on his own from one state and obtained employment in another state, earning up to Rs 18,000 a month.
    • The proposed definition makes a distinction from the present definition of only contractual employment.
    • The Code, however, has dropped the earlier provision for temporary accommodation for workers near the worksites.
    • It has though proposed a journey allowance — a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to his/her native place from the place of his/her employment.

    What are the other proposals for workers?

    • The IR Code Bill has also proposed a worker re-skilling fund.
    • The contributions for the fund are only detailed from the employer of an industrial establishment amounting to fifteen days wages last drawn by the worker immediately before the retrenchment along with the contribution from such other sources.
    • The mention of ‘other sources’ for funding the re-skilling fund is vague.

    What are the concerns raised over the new labour codes?

    • Analysts say the increase in the threshold for standing orders will water down the labour rights for workers in small establishments having less than 300 workers.
    • The increase is uncalled for and shows the government is very keen to give tremendous amounts of flexibility to the employers in terms of hiring and firing.
    • Dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
    • The Industrial Relations Code also introduces new conditions for carrying out a legal strike.
    • The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.

  • [pib] E-Gram Swaraj Portal

    A unified tool e-Gram SWARAJ portal has been developed by the Ministry of Panchayati Raj for effective monitoring and evaluation of works taken up in the Gram Panchayats.

    e-Gram SWARAJ

    • It unifies the planning, accounting and monitoring functions of Gram Panchayats.
    • Its combination with the Area Profiler application, Local Government Directory (LGD) and the Public Financial Management System (PFMS) renders easier reporting and tracking of Gram Panchayat’s activities.
    • It provides a single-window for capturing Panchayat information with the complete Profile of the Panchayat, details of Panchayat finances, asset details, activities taken up through Gram Panchayat Development Plan (GPDP) etc.