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Subject: Governance

Important aspects of Society

  • Relaxation in labour laws due to COVID-19 outbreak and their impacts

    • Amid the coronavirus-induced lockdown, an increasing number of states that include Uttar Pradesh, Madhya Pradesh, Rajasthan and Gujarat have pushed through changes to their labour laws by way of amendments — ordinances or executive orders.
    • They aim to provide some sort of blanket exemption to employers from labour laws.

    Practice Question

    Q. Multiplicity of Labour laws in India has done little to address the plight of Labourers. Critically comment in context to the nationwide lockdown imposed due to the coronavirus outbreak.

    What is the move all about?

    • Most states cleared an ordinance exempting businesses from the purview of most labour law provisions for the next three years.
    • However, labour laws related to bonded labour, deployment of women and children and timely payment of salaries are not changed.

    Changes in the law

    • The changes in the labour laws will apply to both the existing businesses and the new factories being set up in the state.
    • Similarly, the Madhya Pradesh government has also suspended many labour laws for the next 1000 days.
    • Few important amendments are:
    • Employers can increase working hours in factories from 8 to 12 hours and are also allowed up to 72 hours a week in overtime, subject to the will of employees.
    • The factory registration now will be done in a day, instead of 30 days. And the licence should be renewed after 10 years, instead of a year. There is also the provision of penalty on officials not complying with the deadline.
    • Industrial Units will be exempted from majority of the provisions of the Industrial Disputes Act, 1947.
      • Organisations will be able to keep workers in service at their convenience.
      • The Labour Department or the labour court will not interfere in the action taken by industries.
      • Contractors employing less than 50 workers will be able to work without registration under the Contract Labour (Regulation and Abolition) Act, 1970.

     Major relaxations to new industrial units are:

      • Exempted from provisions on ‘right of workers’, which includes obtaining details of their health and safety at work, to get a better work environment which include drinking water, ventilation, crĂšches, weekly holidays and interval of rest, etc.
      • Exempted from the requirement of keeping registers and inspections and can change shifts at their convenience.
      • Employers are exempt from penalties in case of violation of labour laws.

    Rationale Behind the Changes in Labour Laws

    • States have begun easing labour laws to attract investment and encourage industrial activity.
    • To protect the existing employment, and to provide employment to workers who have migrated back to their respective states.
    • Bring about transparency in the administrative procedures and convert the challenges of a distressed economy into opportunities.
    • To increase the revenue of states which have fallen due to closure of industrial units during Covid-19 lockdown.
    • Labour reform has been a demand of Industries for a long time. The changes became necessary as investors were stuck in a web of laws and red-tapism.
    • Businesses and economic activities have slowed down due to which labour welfare has also been affected due to the national lockdown.

    What are the Indian Labour Laws?

    • Labour falls in the Concurrent List and there are many laws enacted by the Centre that a state cannot just brush aside.
    • Estimates vary but there are over 200 state laws and close to 50 central laws. And yet there is no set definition of “labour laws” in the country.

    Their types

    Broadly speaking, they can be divided into four categories. Refer to the image.

    • The main objectives of the Factories Act, for instance, are to ensure safety measures on factory premises and promote the health and welfare of workers.
    • The Shops and Commercial Establishments Act, on the other hand, aims to regulate hours of work, payment, overtime, a weekly day off with pay, other holidays with pay, annual leave, employment of children and young persons, and employment of women.
    • The Minimum Wages Act covers more workers than any other labour legislation.
    • The most contentious labour law, however, is the Industrial Disputes Act, 1947 as it relates to terms of service such as layoff, retrenchment, and closure of industrial enterprises and strikes and lockouts.

    Why are labour laws often criticised?

    • Indian labour laws are often characterized as “inflexible”. Most of them are inadequate to make the sector formalized.
    • At present 90% of India’s workers are parts of the informal economy. The Chart shows, even the organised sector are increasingly employing workers without formal contracts.
    • Others have also pointed out that there are too many laws, often unnecessarily complicated, and not effectively implemented. This has laid the foundation for corruption and rent-seeking.

    Issues with the recent relaxation

    1.Exploitation

    • The state of UP has summarily suspended almost all labour laws including the Minimum Wages Act.
    • Hence this move is characterized as “creating an enabling environment for exploitation”.
    • That’s because far from being a reform, which essentially means an improvement from the status quo, the removal of all labour laws will not only strip the labour of its basic rights but also drive down wages.
    • For instance, what stops a firm from firing all existing employees and hiring them again at lower wages.
    • For one, as Chart 3 shows, even before the Covid-19 crisis, thanks to the deceleration in the economy, wage growth had been moderating.
    • Moreover, there was always a wide gap between formal and informal wage rates. For example, a woman working as a casual labourer in rural India earns just 20% of what a man earns in an urban formal setting.
    • If all labour laws are removed, most employment will effectively turn informal and bring down the wage rate sharply. And there is no way for any worker to even seek grievance redressal.

    2.Informalization

    • Moreover, far from pushing for a greater formalization of the workforce, this move will in one go turn the existing formal workers into informal workers as they would not get any social security.

    3. Will reduce demand in the economy

    • Scrapping labour laws to save on labour costs will not help start the economy but will do exactly the opposite.
    • It will reduce wages, lower earnings (particularly of low wage workers) and reduce consumer demand.

    4.Unlikely to spur economic growth?

    • Theoretically, it is possible to generate more employment in a market with fewer labour regulations.
    • However, as the experience of states that have relaxed labour laws in the past suggests, dismantling worker protection laws have failed to attract investments and increase employment.
    • It is unproven if they can cause an increase in worker exploitation or deterioration of working conditions. However, in the long run, employment will not increase, because of several reasons.

    5. Enacted without any scrutiny:

    • Usually, any change in an Act follows a rigorous process of public consultation, scrutiny by committees of Parliament, and debates in the House before being approved.
    • The changes described here have not gone through such a process.
    • However, most of these have a three-month time limit, and any extension would need to be approved by the legislature.

    What else could have been done?

    1.Allow two shifts

    • There is already too much-unused capacity. Firms are shaving off salaries up to 40% and making job cuts. The overall demand has fallen. Which firm will hire more employees right now, he asked.
    • If the intention was to ensure more people have jobs, then states should not have increased the shift duration from 8 hours to 12 hours.
    • They should have allowed two shifts of 8-hours each instead so that more people can get a job.
    • This move and the resulting fall in wages will further depress the overall demand in the economy, thus hurting the recovery process.

    2.Partnered with the industry

    • Most governments have done across the world have partnered with the industry and allocated 3% or 5% of the GDP towards sharing the wage burden and ensuring the health of the labourers.
    • Moreover, beyond labour regulations, firms face a lot of other hurdles like the shortage of skilled labour and the weak enforcement of contracts etc.
    • Time demands to secure the labour most than their employers.

  • What is Stringency Index?

    India enforced one of the strongest lockdowns at an early phase of case growth. Now, an index created by the University of Oxford quantifies that.

    The Stringency Index provides a computable parameter to evaluate the effectiveness of the nationwide lockdown in India.

    What is Stringency Index?

    • It is among the metrics being used by the Oxford COVID-19 Government Response Tracker.
    • The Tracker involves a team of 100 Oxford community members who have continuously updated a database of 17 indicators of government response.
    • These indicators examine containment policies such as school and workplace closings, public events, public transport, stay-at-home policies.
    • The Stringency Index is a number from 0 to 100 that reflects these indicators. A higher index score indicates a higher level of stringency.

    What does the Stringency Index tell us?

    • It provides a picture of the stage at which any country enforced its strongest measures.
    • Oxford provides an overlay of countries’ death curve and their stringency score.
    • Some countries saw their deaths just begin to flatten as they reached their highest stringency, such as Italy, Spain, or France.
    • As China pulled stronger measures, its death curve plateaued.
    • In countries such as the UK, the US, and India, the Oxford graphs find that the death curve has not flattened after strictest measures were enforced.

    How does India compare with others?

    • The Index has found that India indeed had one of the strongest lockdown measures in the world — at a 100 score since March 22.
    • When compared to other countries with the similar or higher caseload, India called its strict lockdown at a much earlier point on its case and death curves.
    • These 18 other countries had more than 500 cases when they called their strictest lockdown, while India had 320.
    • Again, India had only four deaths on March 22, when its score reached 100, while most countries had more deaths at that point (except Switzerland; no deaths).
    • Spain called for its strictest measures later in its case and death count than all others. Sweden has had the most liberal measures in this set, and Iran the second most liberal.

  • [pib] Saras Collection on Government e-Marketplace

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

    Possible prelim question:

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

    a) Subsidy on beekeeping and apiculture projects

    b) Indigenous light transport aircraft

    c) Database on wetland birds

    d) Collection of products made by SHGs

     The Saras Collection

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

    It’s functioning

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

    Benefits offered

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

    Back2Basics: Government e-Marketplace

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

  • Should we do away with the MPLADS?

    Since its inception in 1993, MPLADS has continued uninterrupted for 27 years. But COVID-19 came as a roadblock for MPLADS. Recently, it was suspended by the government for two years. As expected it led to huge political drama. However, as an aspirant, it is our duty to cut the drama out and focus on issues that matter. This article discusses MPLADS and argues for its abolition owing to various issues associated with it.

    Reason for suspension of MPLADS

    • The government suspended the scheme to strengthen the government’s efforts in managing the challenges and adverse impact of COVID-19 in the country.
    • It has been suspended for two years.
    • BTW scheme in short: Each MP has the choice to suggest to the District Collector for works to the tune of â‚č5 crores per annum to be taken up in his/her constituency.

    Why should MPLADS be abolished?

    1. It goes against the spirit of the Constitution

    • The scheme violates one of the cardinal principles: separation of powers.
    • Simply put, this scheme, in effect, gives an executive function to legislators or the legislature.
    • The argument that MPs only recommend projects, but the final choice and implementation rest with the district authorities is unfounded.
    • There are hardly any authorities in the district who have the courage to defy the wishes of an MP.

    2. Lacunae in implementation

    • Consider some of the observations made by the Comptroller and Auditor General (CAG) of India:
    • Expenditure incurred by the executing agencies being less than the amount booked.
    • Utilisation of funds between 49 to 90% of the booked amount.
    • The scheme envisages that works under the scheme should be limited to asset creation, but 78% of the works recommended were for improvement of existing assets.
    • Wide variations in quantities executed against the quantities specified in the BOQ (Bills of Quantity) in 137 of the 707 works test-checked. Variations ranged from 16 to 2312%.
    • Use of lesser quantities of material than specified by contractors resulting in excess payments and sub-standard works.
    • Delays in issuing work orders ranging from 5 to 387 days in 57% of the works against the requirement of issuing the work order within 45 days.
    • Extensions of time granted to contractors without following the correct procedure.
    • Register of assets created, as required under the scheme, not maintained, therefore location and existence of assets could not be verified.

    3. Wide variation in utilisation of MPLADS funds

    • A report published in IndiaSpend has some very interesting insights based on data made available to it by the Ministry of Statistics and Programme Implementation.
    • A year after they took office, 298 of 543 members of the 16th Lok Sabha— have not spent a rupee from the â‚č5 crore.
    • Though â‚č1,757 crore had been released for MPLADs, only â‚č281 crore had been utilised by all the 543 MPs till May 15, 2015.
    • This means only 16% of the money had been spent in one year by all the MPs put together, because the Lok Sabha was constituted in May 2014.
    • Since the MPLADS began in 1993, â‚č5,000 crore was lying unspent with various district authorities by May 15, 2015.
    • It is clear from the details above, as well as later experience, that most MPs use money under MPLADS quite haphazardly, and a significant portion of it is left unspent.

    4. Misuse of the money under MPLADS

    • There is widespread talk of money under MPLADS being used to appease or oblige two sets of people: opinion-makers or opinion-influencers, and favourite contractors.
    • There have been cases of the contractor and the MP being financially linked with each other.

    5. Legality issue

    • The constitutional validity of MPLADS was challenged in the Supreme Court of India in 1999, followed by petitions in 2000, 2003, 2004, and 2005.
    • The combined judgment for all these petitions was delivered on May 6, 2010, with the scheme being held to be constitutional.
    • The SC seems to have placed an unquestioned trust in the efficacy of the scheme of implementation of MPLADS drawn up by the government without an assessment of the situation prevalent in the field.
    • The court should pay more attention to its skewed implementation, evidence of which is available in audit reports.

    Contrast and compare the provision of MPLADS with the Saansad Adarsh Gram Yojana. A direct question on the MPLADS could be asked by the UPSC, for instance, consider this question-“There has been the debate around the MPLADS. Discuss the issues involved in the MPLADS.”

    Conclusion

    Reports of underutilisation and misutilisation of MPLADS funds continue to surface at regular intervals but there seems to have been no serious attempt to do anything about it till now. Some concrete decisions on the future of the scheme is now inevitable.

     Back2Basics: What is MPLADS?

    • MPLAD is a central government scheme, under which MPs can recommend development programmes involving the spending of Rs 5 crore every year in their respective constituencies.
    • MPs from both Lok Sabha and Rajya Sabha, including nominated ones, can do so.
    • MPs do not receive any money under these schemes.
    • The government transfers it directly to the respective local authorities.
    • The legislators can only recommend works in their constituencies based on a set of guidelines.
    • For the MPLAD Scheme, the guidelines focus on the creation of durable community assets like roads, school buildings etc.
    • Recommendations for non-durable assets can be made only under limited circumstances.

    For example, last month, the government allowed the use of MPLAD funds for the purchase of personal protection equipment, coronavirus testing kits etc.

     

     

  • Strategy for calibrated opening of economy

    The article discusses the performance of India so far and the strategy for reopening of the economy. Dividing the districts based on the number of cases and adopting a suitable approach for opening the economy there while keeping the spread of the virus in control is suggested in the article.

    India performing better

    • While the OECD countries are reeling under the COVID-19 impact, India is clearly ahead of the curve.
    • This is not merely in terms of the confirmed cases in the country but is also strongly reflected in very low mortality numbers (8.5 deaths per lakh population) compared to other nations (4,040 in the UK and 1,930 in the US).
    • While the first cases were reported in most hotspot countries and India around the same time (last week of January), today, the outbreak is far more manageable in India than in most other countries.
    • It was pragmatic for a resource-poor country to be pre-emptive and declare a national lockdown when the total number of cases were still low at 500.
    • The subsequent growth of the pandemic clearly shows a perceptible decline in the number of cases due to the lockdown.
    • Though stringent, this was much-needed and a timely policy intervention by the government.
    • It is important, however, to appreciate the high and growing opportunity costs that are involved during a lockdown.
    • We must brace ourselves for long-term pandemic management (18 to 24 months) with significant economic impact on our lives.

    Policy interventions by government and two major concerns

    • The immediate costs of the lockdown are borne by the most economically vulnerable people in society.
    • This perhaps was the rationale behind the first round of economic policy interventions announced by the finance minister within a few days of the lockdown.
    • They targeted front-loading of cash transfers through PM-Kisan, support to construction workers, self-help groups, food distribution through the public distribution system, among others.
    • Two major concerns: Beyond welfare concerns, there are significant growth concerns that are mounting with every day of economic inactivity in the country.
    • Companies are struggling to honour payroll and maintain their workforce against cancelling orders and declining demand for their goods and services.
    • These in turn will lead to greater delays and defaults in loan repayments, thereby further weakening the fragile banking sector and struggling credit markets.

    The RBI’s intervention and increasing damage to the economy

    • The Reserve Bank of India stepped in for some timely monetary interventions.
    • However, the longstanding climate of risk aversion within the banking sector will mean that transmission of these monetary interventions is unlikely to be timely or adequate.
    • All eyes are set expectantly in one direction.
    • Historically, when economies are faced with major calamities, governments step in to stabilise the environment and boost confidence within the business community.
    • We have seen this response from all major economies disrupted by COVID-19 over the last several weeks.
    • India will not be an exception to this as the government fine-tunes its strategy to support and kickstart our immobilised economy.
    • The opportunity cost of time, however, is ballooning with each passing day.
    • Just like the spread of the virus, we are up against the full force and power of compounding.
    • Mindful policy interventions, when timed well, can cut growing losses and the misfortune of many.

    How the states are performing against Covid-19?

    • While we have succeeded in slowing the growth of the virus at the national level, the true gains and pains are at the state and local level.
    • As the data reveals, currently we have three states that have made remarkable gains and “flattened the curve” of COVID cases.
    • These are Kerala, Haryana and Tamil Nadu where recoveries are growing and active cases are rapidly declining.
    • States like Karnataka and Telangana are improving their recovery rates consistently, despite fluctuations.
    • Every state and local administration has to keep eternal vigil and double down on containment and testing.
    • They have to aggressively improve their contact tracing efforts with the help of their police who are trained in debriefing, call record mapping and have more manpower than public health departments of local administrations.

    The article contains the policy and governance aspects which are important from Mains Paper-2, and economic issues such as the size of the package and opportunity cost of time involved are important from the Mains Paper-3 perspective. Take note of these issues.

    What should be the strategy?

    • Given the scale and variation in infection control across the country, our national strategy needs to be informed and calibrated.
    • Currently, there are more than 300 districts in the country which have reported zero COVID-19 cases.
    • This can be confirmed quickly with some random testing and the lockdown can be lifted effective immediately.
    • Then there are about 225 districts which have reported less than 10 cases each.
    • With adequate ring-fencing at the level of the block where these cases are reported, these districts too can afford to lift their lockdowns.
    • There are, however, approximately 30 districts across the country which have reported large numbers of confirmed cases and are identified as “hotspots”.
    • The lockdown in these places needs to continue with some relaxations for basic trade and essential services.
    • Not surprisingly, these “hotspots” are also important economic centres of the country.
    • The capacity of the local administration to develop and enforce appropriate strategies of containment, contact tracing and testing, should determine their decisions to ring-fence and isolate blocks while allowing other parts of the district/city to resume economic activity.

    Way forward

    • Given the uncertainty of the virus, we seem prepared for large hospitalisation and care if the need arises.
    • The efforts now must be to further contain the growth of the infection.
    • Acting against the power of compounding: If the current rate persists, we will reach over lakh cases within three weeks. That is the power of compounding we are against.
    • Public health support team: Beyond knowledge sharing across states and adopting successful containment strategies from each other, there is a role for the central government in providing “NSG-like” public health support teams to states that need them.
    • Economic package: On the economy front similarly, the central government’s timely economic package should flatten the curve of exponentially rising opportunity costs across the sectors.

    Conclusion

    Given the relative scale and virulence of the COVID-19 virus in India, the odds seem stacked in favour of a calibrated opening of the economy.

     

  • [pib] Year of Awareness on Science & Health (YASH) Program

    National Council for Science & Technology Communication (NCSTC) has launched a programme on health and risk communication ‘Year of Awareness on Science & Health (YASH)’ with focus on COVID-19.

    There are various initiatives named with Hindi acronyms. YASH is newer among them. It is very unlikely to frame a prelim question on it. Still, we should know it for the sake of general awareness.

    YASH Program

    • YASH is a comprehensive and effective science and health communication effort for promoting grass-root level appreciation and response to health.
    • The current pandemic scenario has posed concerns and challenges all around, where scientific awareness and health preparedness play a significant role to help combat the situation.
    • This requires translation and usage of authentic scientific information to convey the risks involved and facilitates communities to overcome the situation.
    • The programme will encompass the development of science, health, and risk communication software, publications, audio-visual, digital platforms, folk performances, trained communicators, especially in regional languages to cater to various cross-sections of the society in the country.
    • It would help to save and shaping the lives of people at large, as well as build confidence, inculcate a scientific temper and promote health consciousness among them.

    Activities under YASH

    • The programme is aimed at minimizing risks at all levels with the help of public communication and outreach activities.
    • It would promote public understanding of common minimum science for community care and health safety measures like personal sanitation and hygiene, physical distancing, maintaining desired collective behaviour and so on.
    • It also includes information dissemination mechanisms to reduce the fear of risks and build confidence with necessary understanding for adopting sustainable healthy lifestyles and nurturing scientific culture among masses and societies.

  • Spanish Plan for Phased Easing of Lockdown

    • Spain’s Prime Minister has presented a four-phase lockdown exit strategy for the country.
    • It’s imperative for India to learn from global examples for easing lockdown without doing away with health concerns.

    With the nearing end of nationwide lockdown, various exit strategies are being discussed for a smooth restart.

    Spain’s exit strategy

    • The opening up of the lockdown will begin with phase 0 throughout Spain, except for a few islands that will already be in phase 1 by then.
    • A week later, provinces will enter phase 1, which will last for two weeks and the remaining phases will also last for two weeks each.
    • In total, the de-escalation will take at least six weeks to be complete.

    Phase 0: The preparation phase

    • De-escalations in this phase include opening up of takeaway facilities at restaurants and opening up of some other establishments such as hair salons.
    • From May 2, individuals will be able to go out for a walk or to exercise alone or with people they stay with. In this phase, professional athletes will be able to access individual training sessions.
    • Children aged 14 years or younger have been allowed to go out for walks from April 26.

    Phase 1: The initial phase

    • Begins on May 11. Small businesses will be allowed to open under strict security measures.
    • For instance, gyms can open for people who want to train individually and by appointment.
    • Further, hotels and tourist accommodations will be allowed to open, excluding the common areas and with certain restrictions in place.
    • Places of worship will also be allowed to open, limiting their capacity to one-third. Owners of terrace bars can open their establishments but with 30 per cent capacity.
    • In this phase, some degree of social contact with a limited number of people may also be allowed, subject to what the conditions are then.

    Phase 2: The intermediate phase

    • Begins on May 25.Will include the resumption of hunting and sport fishing, and the opening of cinemas and auditorium theatres at one-third of their capacity.
    • Visits to monuments and cultural facilities, such as exhibition halls and conference rooms, will resume with one-third occupancy.
    • Cultural shows will be allowed with less than 50 people in closed spaces. In the outdoors, shows and events can be held with less than 400 people provided they are seated.
    • All places of worship will have to limit their capacity to 50 per cent.

    Phase 3: The advanced phase

    • Begins on June 8 and provided the situation is under control, general mobility will be made more flexible.
    • Wearing masks will be recommended when people venture outside, especially on public transport. In commercial settings, capacities will be restricted to 50 per cent.
    • Beaches may also open in this phase. The movement of people into other provinces or islands is restricted until the de-escalation process is complete.

  • Religious Freedom and India

    The U.S. Commission on International Religious Freedom (USCIRF) has downgraded India to the lowest ranking, “countries of particular concern” (CPC) in its 2020 report.

    Religious freedom in India has been a contested issue since decades. Recent moves by the govt. since the abrogation of Art. 370 which triggered the riots in Delhi has left a big scar on the secular fabric of India.

    About USCIRF

    • It is a U.S. federal government commission created by the International Religious Freedom Act (IRFA) of 1998.
    • Its principal responsibilities are to review the facts and circumstances of violations of religious freedom internationally.

    Accusing India of religious intolerance

    • USCIRF has placed India alongside China, North Korea, Saudi Arabia and Pakistan.
    • India was categorised as a “Tier 2 country” in last year’s listing.
    • This is the first time since 2004 that India has been placed in the CPC category.
    • The commission also recommended that the U.S. government take stringent action against India under the “International Religious Freedom Act” (IRFA).

    What led India to lower its religious freedom?

    • India took a sharp downward turn in 2019 due to concerns about the Citizenship Amendment Act, the proposed National Register for Citizens, anti-conversion laws and the situation in Jammu and Kashmir.
    • The report accuses India using its strengthened parliamentary majority to institute national-level policies violating religious freedom across India.
    • The panel reported harassment and violence against religious minorities to continue with impunity, and engaged in and tolerated hate speech and incitement to violence against them.

    India’s reaction

    • The Centre reacted sharply to the USCIRF report terming it “biased and tendentious” and rejected its observations.
    • The biased and tendentious comments against India are not new. But on this occasion, its misrepresentation has reached new levels.
    • Major panellists of USCIRF dissented with the recommendation on India as being ‘too harsh’ and that ended up placing the country alongside what they termed as “rogue nations” like China and North Korea.
    • India regards the accusations as inaccurate and unwarranted and questioned the body’s “locus standi” in India’s internal affairs.

    US’s religious activism: Unwelcomed by all

    • The US earlier this month has announced the launch of a 27-nation International Religious Freedom Alliance, which aim to adopt a collective approach in protecting and preserving religious freedom across the world.
    • Among the prominent countries to join the alliance are Brazil, the United Kingdom, Israel, Ukraine, the Netherlands and Greece.
    • The USCIRF has been accused worldwide of being biased towards focusing on the persecution of Christians and of being anti-Muslim & Hinduphobic. It panels various controversial personalities.

  • What are the concerns around the AarogyaSetu app?

    • Recently the AarogyaSetu app — for pan-India use was launched as the main contact tracing technology endorsed by the Central government.
    • Soon it became one of the most downloaded apps globally and has crossed the 75 million mark.
    • However, there are concerns for more transparency on the inner workings of an app that seeks the personal details of millions.

    RIght to Privacy is a very much contested topic for GS. The Aarogya Setu app which has a lot more to offer, is under the radar due to underlying vacuum of Privacy Law in India.

    AarogyaSetu App

    • The App enables people to assess themselves the risk of their catching the Corona Virus infection.
    • It is designed to keep track of other AarogyaSetu users that a person came in contact with and alert him or her if any of the contacts tests positive for COVID-19.
    • It achieves this using the phone’s Bluetooth and GPS capabilities.
    • Once installed in a smartphone through an easy and user-friendly process, the app detects other devices with AarogyaSetu installed that come in the proximity of that phone.
    • The app can then calculate the risk of infection based on sophisticated parameters if any of these contacts has tested positive.
    • The personal data collected by the App is encrypted using state-of-the-art technology and stays secure on the phone till it is needed for facilitating medical intervention.

    Issues with the app

    • The AarogyaSetu app faces the same issue as every other contact tracing technology that has come up during the pandemic period — it is people dependent.
    • It needs widespread usage and self-reporting to be effective.
    • Given that any number of total users will be a subset of smartphone owners in India, and there are bound to be variations in the levels of self-reporting, the efficacy is not bulletproof.
    • The terms of use of the app also say as much, distancing the government from any failure on the part of the app in correctly identifying COVID-19 patients.

    Are there privacy concerns?

    • First of all, the app exists in the privacy law vacuum that is India.
    • With no legislation that spells out in detail how the online privacy of Indians is to be protected, AarogyaSetu users have little choice but to accept the privacy policy provided by the government.
    • The policy goes into some detail on where and how long the data will be retained, but it leaves the language around who will have access to it vague.
    • As per the policy persons carrying out medical and administrative interventions necessary in relation to COVID-19” will have access to the data.
    • This suggests interdepartmental exchanges of people’s personal information and is more excessive than countries like Singapore and even Israel.

    Technical issue

    • Beyond the legal loopholes, there are technical loopholes as well.
    • The unique digital identity in AarogyaSetu is a static number, which increases the probability of identity breaches.
    • The abundance of data collected is also potentially problematic.
    • AarogyaSetu uses both Bluetooth as well as GPS reference points, which could be seen as overkill whereas other apps such as TraceTogether make do with Bluetooth.

    Other issues

    • Experts emphasise that automated contact tracing is not a panacea.
    • They caution against an over-reliance on technology where a competent human-in-the-loop system with sufficient capacity exists.

  • Public policy dilemma of choosing between lives and livelihood

    This article deals with how the different sections of a society assign different weightage to the various factors they are faced with in life. In the case of Covid-19, one section of society which is well-off might care more about the possible loss of life while other section might end up attaching more weightage to the loss of livelihood than to the possible loss of life due to infection. The article discusses this issue in detail.

    Difference between risk and uncertainty

    • Since the days of Frank Knight, economists have differentiated between the two.
    • Risk has a known probability distribution.
    • For uncertainty, the probability distribution is unknwon.
    • COVID-19 makes us confront uncertainty, not risk.
    • For uncertainty, there is a subjective probability distribution, which can, and does, vary from individual to individual.

    So, how the subjective probability distribution is devised by a person?

    • Through information and experience, one already possesses.
    • There are various rationality assumptions used by economists. They are often violated.
    • Otherwise, behavioural economics wouldn’t have come into existence.
    • Typically, given a situation, when your decision doesn’t agree with someone else, you say they are being irrational.
    • However, with uncertainty, the problem may not be with rationality assumptions, but with differences in subjective probability distributions.

    Lack of data for various factors

    • Because of COVID-19, there is a certain risk of getting infected. Let’s call this the infection rate — total infections divided by the total population.
    • We don’t know this infection rate for India or for any other country for that matter.
    • No country has done universal testing.
    • No testing for random sample: No country has done universal testing for a proper random sample either.
    • The ICMR has told us more than 75 per cent of Indian patients will be asymptomatic.
    • Who do we test? Those who show symptoms, those who have been in contact with confirmed patients and those who suffer from severe respiratory diseases.
    • Most countries do something similar.
    • Sampling bias: In other words, when we work out an infection rate based on those tested, there is a sampling bias.
    • This isn’t a proper infection rate.
    • The only country where we have had something like a random sample is Iceland.
    • There, the infection rate was 0.8 per cent.
    • Data for death rate: There are similar caveats about the death rate.
    • If we mechanically divide the number of deaths by the number of confirmed cases for India, we will get a death rate just over 3 per cent.
    • The global figure is a little less than 7 per cent.
    • But neither of these is a death rate for the total population since only those with severe symptoms are included in infection numbers.
    • Three per cent or seven per cent are over-estimates.
    • In a controlled environment like Diamond Princess, death rate as a ratio of total passengers, and not those infected, was less than 0.4 per cent.
    • The true infection rate and true death rate are not alarming numbers.

    How the lack of data is reflected in subjective probability distribution?

    • There are slices in India’s population pyramid with rural/urban and other spatial differences too.
    • Consider two extreme types-type A and type B.
    • Type A, who are globalised in information access and morbidity.
    • Life expectancy is 80 plus and there are lifestyle diseases like diabetes and high blood pressure.
    • This co-morbidity increases possible death rates and thanks to globalised access to information, certainly increases perceptions about death rates, making them out to be higher than they are.
    • Some of them have fixed incomes, regardless of what happens to lockdown.
    • The high probability assigned to loss of life: In terms of maximising expected payoffs with a subjective distribution, high probability is attached to loss of life and low probability to loss of livelihood.
    • How type B forms a subjective probability?
    • Type B, someone whose life expectancy is 60, without a fixed income stream and whose health concerns are tuberculosis and water-borne diseases, not COVID-19.
    • Nor is access to information that globalised.
    • The high probability assigned to loss of livelihood: High subjective probability will be attached to loss of livelihood and low probability to death from COVID.
    • Both types reflect subjective probabilities. Neither is “irrational”.
    • The tension between the two: Type A would like the lockdown to continue indefinitely, until the long tail of the infection curve tapers off, perhaps beyond September.
    • Type B would like lockdown to be eased soon, with necessary restrictions in hotspots.
    • There is indeed tension between lives and livelihood.
    • Even if health outcomes and information access are like Type A, but income is contingent on growth, preferences might mirror Type B.

    The issues highlighted here can be broadly used in the various scenario where there is uncertainty involved and various stakeholders perceive the probable outcomes in entirely different ways. Various points here can be used to answer the question based on policy making.

    Balancing the differential individual preferences in public policy

    • One set of individuals imposes its choice on the rest.
    • Type A disproportionately influences policy.
    • This determination of aggregate preferences is a dynamic process.
    • Therefore, sooner or later, Type B contests this and as the lockdown is prolonged and livelihood costs mount, discontent surfaces, as it has across a range of countries.
    • There were also welfare economics notions that pre-dated social choice theory, such as compensation principles of Kaldor, Hicks and Scitovsky.
    • The point can be made using the two stereotypes. Specifically, Type A need to compensate Type B for their losses.
    • To state it starkly, livelihood losses suffered by Type B need to be compensated by the government through redistributive measures and this has to be financed by higher taxes imposed on Type-A.
    • The right question for the Type A is not whether they want the lockdown to continue, but whether they are willing to pay a COVID-tax to support lockdown extension.

    A question based on policy formation issues explained here can be framed, for ex. “Risk has a known probability distribution. For uncertainty, the probability distribution is unknown. COVID-19 makes us confront uncertainty, not risk. In this context, there is a debate between saving lives and saving livelihoods. In such a scenario, what can be the most probable solutions that public policy must delve into, in order to maintain the balance between this uncertainty and risk.”

    Conclusion

    Extending or ending the lockdown decision represent the public policy dilemma. Without a revival in growth, the tax-paying capacity of Type B is limited and with job losses, some Type As become Type Bs. The choice is starker.