Note4Students
From UPSC perspective, the following things are important :
Prelims level: CoRe-Competitive and Resilient Partnership
Mains level: Paper 2- India-Japan relations
The article discusses the areas in which India-Japan are cooperating and also highlight the areas in which both countries can expand cooperation.
Issues discussed in US-Japan summit
- The discussion focused on their joint security partnership given the need to address China’s recent belligerence in territorial disputes in the South and East China Seas as well as in the Taiwan Strait.
- Both sides affirmed the centrality of their treaty alliance, for long a source of stability in East Asia, and pledged to stand up to China in key regional flashpoints such as the disputed Senkaku Islands and Taiwan.
- Both sides acknowledged the importance of extended deterrence vis-à-vis China through cooperation on cybersecurity and space technology.
- Discussions also touched upon Chinese ambitions to dominate the development of new age technologies such as 5G and quantum computing.
- Given China’s recent pledge to invest a mammoth $1.4 trillion in emerging technologies, Washington and Tokyo scrambled to close the gap by announcing a Competitiveness and Resilience Partnership, or CoRe.
- Both sides have also signalled their intent to pressure on China on violations of intellectual property rights, forced technology transfer, excess capacity issues, and the use of trade-distorting industrial subsidies.
- Both powers repeatedly emphasised their vision of a Free and Open Indo-Pacific.
Issues that need to be discussed in Japan PM’s visit to India
1) Continuation of balancing security policy
- First, one can expect a continuation of the balancing security policy against China that began in 2014.
- Crucially, India’s clashes with China in Galwan have turned public opinion in favour of a more confrontational China policy.
- In just a decade, New Delhi and Tokyo have expanded high-level ministerial and bureaucratic contacts, conducted joint military exercises and concluded military pacts such as the Acquisition and Cross-Servicing Agreement (ACSA) logistics agreement.
- Both countries need to affirm support for a Free and Open Indo-Pacific and continued willingness to work with the Quad.
- Both countries need to take stock of the state of play in the security relationship while also pushing the envelope on the still nascent cooperation on defence technology and exports.
2) Expanding cooperation in various sectors
- The two powers will look to expand cooperation in sectors such as cybersecurity and emerging technologies.
- Digital research and innovation partnership in technologies from AI and 5G to the Internet of Things and space research has increased between the two countries in the recent past.
- There is a need to deepen cooperation between research institutes and expand funding in light of China’s aforementioned technology investment programme.
- Issues of India’s insistence on data localisation and reluctance to accede to global cybersecurity agreements such as the Budapest Convention may be discussed in the summit.
3) Economic ties
- Economic ties and infrastructure development are likely to be top drawer items on the agendas of New Delhi and Tokyo.
- Though Japan has poured in around $34 billion in investments into the Indian economy, Japan is only India’s 12th largest trading partner.
- Trade volumes between the two stand at just a fifth of the value of India-China bilateral trade.
- India-Japan summit will likely reaffirm Japan’s support for key manufacturing initiatives such as ‘Make in India’ and the Japan Industrial Townships.
- Further, India will be keen to secure continued infrastructure investments in the strategically vital connectivity projects currently under way in the Northeast and the Andaman and Nicobar Islands.
4) Joint strategy toward key third countries
- In years past, India and Japan have collaborated to build infrastructure in Iran and Africa.
- Both countries have provided vital aid to Myanmar and Sri Lanka and hammer out a common Association of Southeast Asian Nations outreach policy in an attempt to counter China’s growing influence in these corners of the globe.
- However, unlike previous summits, the time has come for India and Japan to take a hard look at reports suggesting that joint infrastructure projects in Africa and Iran have stalled with substantial cost overruns.
- Tokyo will also likely try to get New Delhi to reverse its decision not to join the Regional Comprehensive Economic Partnership.
Consider the question “Changes on the geopolitical horizon offers India-Japan relations multiple avenues to deepen their ties. In light of this, discuss the areas of cooperation and shared concerns for India and Japan.”
Conclusion
Writing in 2006, Shinzo Abe, expressed his hope in his book that “it would not be a surprise if in another 10 years, Japan-India relations overtake Japan-U.S. and Japan-China relations”. Thus far, India has every reason to believe that Japan’s new Prime Minister is willing to make that dream a reality.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Debt to GDP ratio
Mains level: Paper 3- Need to shed the worry over fiscal deficit
The devastation caused by the second wave calls for the government to shed its worry over the fiscal deficit. The article deals with this issue.
Role of fiscal policy to support economy through second wave
- As India battles to contain the surge in COVID-19 cases, several states have already imposed severe restrictions at the local level.
- The services sector has been hit the most as a consequence of these lockdowns and it would be difficult for India to deliver on this optimistic growth projection.
- Against this background, the role fiscal policy can play to support the economy needs consideration.
- The monetary policy is already accommodative and may not have enough room to further boost the economy.
- With headline as well as core inflation inching up in recent months, the RBI may not be in a position to further cut the policy rate.
- As per the latest Union Budget, the fiscal deficit is estimated to moderate from 9.5 per cent of GDP in FY21 to 6.8 per cent of GDP in FY22.
- This expected decline in fiscal deficit is not on account of lower fiscal spending but because of expectations of sharper revenue growth.
- The revenue receipts are estimated to grow by 15 per cent and fiscal spending by 1 per cent this financial year.
- With the debt to GDP ratio already more than 90 per cent, additional fiscal expansion will not be an easy choice for the government.
Government need to create fiscal space
- Extraordinary times call for extraordinary measures and the government will have to find ways to create fiscal space.
- This has become especially important as the economy is yet to shrug off the impact of the previous lockdown.
- Under these difficult circumstances, immediate measures must aim at providing the requisite social safety net to the poor and the vulnerable.
- The central government has already announced it will distribute an additional five kg of grain to the 800 million beneficiaries of the National Food Security Act, which is welcome.
- However, given the unprecedented uncertainty brought about by this COVID wave, the ration support under the PDS should be raised further.
- The government should also consider transferring cash to the bank accounts of the poor, just as it did last time.
- This becomes important as MGNREGA may not provide the safety cushion that it is indeed to as long as lockdown measures remain in place.
- The best stimulus perhaps would be to provide free vaccinations to the population as the benefits of faster and wider vaccine coverage more than outweighs its monetary cost.
- Immunisation is a public good. As we get over this crisis, the government must increase its outlay on physical and human health infrastructure.
How to finance additional cost?
- Part of this additional cost may be financed by reducing non-essential government expenditures and use it for COVID-related expenditure.
- The government may need to resort to additional borrowings from the market than budgeted earlier.
- The RBI may allow inflation above the upper bound of 6 per cent only in the short run.
- The plausible rise in interest rates may also be crucial to prevent capital outflows, given the global “economic outlook” when the US economy adopts an easy monetary policy combined with a huge fiscal stimulus.
Conclusion
The government should not be deterred by a worsening fiscal deficit in the short run as the additional growth that it generates may make debt consolidation easier when things normalise.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 32
Mains level: Paper 3- Vaccination of Covid-19
The article highlights the role the Supre Court can play in universal vaccination in India.
Why Supreme Court needs to step in
- Amid raging debate over the vaccination strategy, the role the Supreme Court of India can play to safeguard the right to life guaranteed under Article 21, for which it is duty-bound to exercise jurisdiction under Article 32 needs consideration.
- In this regard, universal vaccination is a glimmer of hope.
- The Supreme Court of India can facilitate speed and deeper penetration of universal vaccination, which is now commonly accepted as the only possible solution to the pandemic in the long run.
Issue of patent of vaccine
- It is time to question patents claimed by vaccines that have been developed with aid from the state in research and development.
- These patents, if established, must be immediately acquired with just and adequate compensation and made accessible to all manufacturers.
- This was done for medicines for AIDS and it can be done again under the Patents Act.
- The Court can also issue mandamus to undertake this exercise on an emergency basis.
- Thereafter, all pharmaceutical companies with Good Manufacturing Practices (GMP) as per the Drugs and Cosmetics Act must be allowed to manufacture vaccines at a pre-approved price of cost + 6 per cent return on investment.
- States can also be directed to incentivise the setting up of new manufacturing facilities as a possible third wave, periodic booster doses and the need for ancillary vaccines make it a long-term phenomenon.
- All this has to be ensured in addition to the free import of vaccines approved by advanced nations.
Free for all
- The availability of all the vaccines, whether indigenous or imported, must be free for all the recipients to be paid by GoI.
- The vaccines can be distributed to states on a pro-rata basis as per population and price adjusted as part of general revenue sharing in GST.
Vaccine administration
- The vaccine administration needs to be ramped up both in state and private facilities.
- For vaccine hesitancy, we need to incentivise the vaccination through a direct deposit of Rs 500 in Jan Dhan accounts for each vaccinated member of BPL families.
- This vaccination can be made compulsory for identifiable categories of persons from MGNREGA beneficiaries to Aadhaar Card holders to income-tax payers to bank account holders to driving-licence holders.
- There must be a strict penalty to be recovered from those who do not get vaccinated without medical reasons.
- Private efforts can be made eligible for reimbursement of cost.
Conclusion
The Supreme Court can steer us, with greater emphasis on the right to life. The pandemic may leave nothing and nobody behind to bicker about.
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From UPSC perspective, the following things are important :
Prelims level: Factors responsible for anti-microbial resistance
Mains level: Paper 2-Threats posed by anti-microbial resistance
The article highlights the challenges posed by anti-microbial resistance (AMR) and suggests ways to deal with it.
Understanding the severity of challenges posed by AMR
- Antimicrobial resistance (AMR) is the phenomenon by which bacteria and fungi evolve and become resistant to presently available medical treatment.
- AMR represents an existential threat to modern medicine.
- Without functional antimicrobials to treat bacterial and fungal infections, even the most common surgical procedures, as well as cancer chemotherapy, will become fraught with risk from untreatable infections.
- Neonatal and maternal mortality will increase.
How AMR will affect low and middle-income countries
- All these effects will be felt globally, but the scenario in the low- and middle-income countries (LMICs) of Asia and Africa is even more serious.
- LMICs have significantly driven down mortality using cheap and easily available antimicrobials.
- In the absence of new therapies, health systems in these countries are at severe risk of being overrun by untreatable infectious diseases.
Factors contributing to AMR
- Drug resistance in microbes emerges for several reasons.
- These include the misuse of antimicrobials in medicine, inappropriate use in agriculture, and contamination around pharmaceutical manufacturing sites where untreated waste releases large amounts of active antimicrobials into the environment.
Stagnant antibiotics discovery
- The Challenge of AMR is compounded by fact that no new classes of antibiotics have made it to the market in the last three decades.
- This has happened on account of inadequate incentives for their development and production.
- A recent report from the non-profit PEW Trusts found that over 95% of antibiotics in development today are from small companies, 75% of which have no products currently in the market.
- Major pharmaceutical companies have largely abandoned innovation in this space.
Measures to deal with the challenge of AMR
- In addition to developing new antimicrobials, infection-control measures can reduce antibiotic use.
- A mix of incentives and sanctions would encourage appropriate clinical use.
- To track the spread of resistance in microbes, surveillance measures to identify these organisms need to expand beyond hospitals and encompass livestock, wastewater and farm run-offs.
- Finally, since microbes will inevitably continue to evolve and become resistant even to new antimicrobials, we need sustained investments and global coordination to detect and combat new resistant strains on an ongoing basis.
Way forward
- A multi-sectoral $1 billion AMR Action Fund was launched in 2020 to support the development of new antibiotics.
- The U.K. is trialling a subscription-based model for paying for new antimicrobials towards ensuring their commercial viability.
- Other initiatives focused on the appropriate use of antibiotics include Peru’s efforts on patient education to reduce unnecessary antibiotic prescriptions.
- Australian regulatory reforms to influence prescriber behaviour, and initiatives to increase the use of point-of-care diagnostics, such as the EU-supported VALUE-Dx programme.
- Denmark’s reforms to prevent the use of antibiotics in livestock have led to a significant reduction in the prevalence of resistant microbes in animals and improved the efficiency of farming.
- Finally, given the critical role of manufacturing and environmental contamination in spreading AMR there is a need to curb the amount of active antibiotics released in pharmaceutical waste.
- Regulating clinician prescription of antimicrobials alone would do little in settings where patient demand is high and antimicrobials are freely available over-the-counter in practice, as is the case in many LMICs.
- Efforts to control prescription through provider incentives should be accompanied by efforts to educate consumers to reduce inappropriate demand, issue standard treatment guidelines.
- Solutions in clinical medicine must be integrated with improved surveillance of AMR in agriculture, animal health and the environment.
- AMR must no longer be the remit solely of the health sector, but needs engagement from a wide range of stakeholders, representing agriculture, trade and the environment with solutions that balance their often-competing interests.
- International alignment and coordination are paramount in both policymaking and its implementation.
Consider the question “Anti-microbial resistance (AMR) represents an existential threat to modern medicine. What are the factors contributing to AMR? Suggest the measures to deal with it.”
Conclusion
With viral diseases such as COVID-19, outbreaks and pandemics may be harder to predict; however, given what we know about the “silent pandemic” that is AMR, there is no excuse for delaying action.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 239AA
Mains level: Paper 2- GNCT of Delhi Amendment Act notified by the Centre
GNCT Act comes into effect
- The Ministry of Home Affairs (MHA) issued a gazette notification stating that the provisions of the Government of National Capital Territory (GNCT) of Delhi (Amendment) Act, 2021, would be deemed to have come into effect from April 27.
- The Act defines the responsibilities of the elected government and the L-G along with the “constitutional scheme of governance of the NCT” interpreted by the Supreme Court in recent judgements regarding the division of powers between the two entities.
What the Amendment seeks to achieve
- The Act will clarify the expression Government and address ambiguities in legislative provisions.
- It will also seek to ensure that the L-G is “necessarily granted an opportunity” to exercise powers entrusted to him under proviso to clause (4) of Article 239AA of the Constitution.
- Clause (4) of Article 239AA provides for a Council of Ministers headed by a Chief Minister for the NCT to “aid and advise the Lieutenant Governor” in the exercise of his functions for matters in which the Legislative Assembly has the power to make laws.
- Now Act will also provide for rules made by the Legislative Assembly of Delhi to be “consistent with the rules of the House of the People” or the Lok Sabha.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Patent Law, TRIPS
Mains level: Paper 3- Impact of IPR on right to access healthcare
Request for waiver
- Last year, India and South Africa requested WTO for a temporary suspension of rules under the 1995 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
- A waiver was sought to the extent that the protections offered by TRIPS impinged on the containment and treatment of COVID-19.
- The request for a waiver has, since, found support from more than 100 nations.
- But a small group of states — the U.S., the European Union, the U.K. and Canada among them — continues to block the move.
- These countries have already secured the majority of available vaccines.
- But for the rest of the world mass immunisation is a distant dream.
Grounds on which patent laws are justified
- Patent laws are usually justified on three distinct grounds:
- On the idea that people have something of a natural and moral right to claim control over their inventions.
- On the utilitarian premise that exclusive licenses promote invention and therefore benefit society as a whole.
- On the belief that individuals must be allowed to benefit from the fruits of their labour and merit.
- These justifications have long been a matter of contest, especially in the application of claims of monopoly over pharmaceutical drugs and technologies.
Patent laws in India
- In 1959, a committee chaired by Justice N. Rajagopala Ayyangar objected to monopolies on pharmaceutical drugs through colonial-era patent law.
- The committee found that foreign corporations used patents to suppress competition from Indian entities, and thus, medicines were priced at exorbitant rates.
- The committee suggested, and Parliament put this into law through the Patents Act, 1970, that monopolies over pharmaceutical drugs be altogether removed, with protections offered only over claims to processes.
- This change in rule allowed generic manufacturers in India to grow.
How TRIPS goes against the interest of developing countries
- WTO has into its constitution a binding set of rules governing intellectual property.
- Countries that fail to subscribe to the common laws prescribed by the WTO would be barred from entry into the global trading circuit.
- It was believed that a threat of sanctions, to be enforced through a dispute resolution mechanism, would dissuade states from reneging on their promises.
- With the advent in 1995 of the TRIPS agreement, this belief proved true.
- The faults in this new world order became apparent when drugs that reduced AIDS deaths in developed nations were placed out of reach for the rest of the world.
- It was only when Indian companies began to manufacture generic versions of these medicines as TRIPS hadn’t yet kicked in against India, that the prices came down.
Argument in support of the patent regime
- Two common arguments are made in response to objections against the prevailing patent regime.
- One, that unless corporations are rewarded for their inventions, they would be unable to recoup amounts invested by them in research and development.
- Two, without the right to monopolise production there will be no incentive to innovate.
Issues with the argument in support of patent regime
- Big pharma has never been forthright about the quantum of monies funnelled by it into research and development.
- Moderna vaccine in the U.S. emanated out of basic research conducted by the National Institutes of Health, a federal government agency, and other publicly funded universities and organisations.
- Similarly, public money accounted for more than 97% of the funding towards the development of the Oxford/AstraZeneca vaccine.
- Therefore, the claim that the removal of patents would somehow invade on a company’s ability to recoup costs is simply untrue.
- The second objection — the idea that patents are the only means available to promote innovation — has become something of a dogma.
- The economist Joseph Stiglitz is one of many who has proposed a prize fund for medical research in place of patents.
Consider the question “What are the issues with the patent regime under the TRIPS in the field of medicine?”
Conclusion
We cannot continue to persist with rules granting monopolies which place the right to access basic healthcare in a position of constant peril. In its present form, the TRIPS regime represents nothing but a new form of “feudal calculus”.
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From UPSC perspective, the following things are important :
Prelims level: Women Judges in the SC
Mains level: Paper 2- Issue of women representation in the judiciary in Inda
The article highlights the issue of women representation and its implications for the role of the judiciary.
Improving representation of women
- Presently, the Supreme Court is left with only one woman judge, who is also going to retire next year, after which, the SC will be left without a woman judge.
- The collegium failed to take timely steps to elevate more women judges in the SC.
- In the 71 years of history of the SC, there have been only eight women judges — the first was Justice Fathima Beevi, who was elevated to the bench after a long gap of 39 years from the date of establishment of the SC.
- In the submissions filed by the AG on the issue states that improving the representation of women in the judiciary could go a long way towards attaining a more balanced and empathetic approach in cases involving sexual violence.
- The AG also brought up the fact that there has never been a woman Chief Justice of India (CJI).
Women representation in developed countries
- The situation is not any different in developed countries such as the US, UK, Ireland, France and China.
- According to the data collected by Smashboard, a New Delhi and Paris-based NGO, not only has no woman ever been appointed as the CJI, the representation of women across different courts and judicial bodies is also abysmally low.
Way forward
- In the last few meetings of the collegium, there has been some talk of promoting women to the apex court.
- In this regard, if Justice B V Nagaratha of the Karnataka High Court is elevated to the Supreme Court, she could become the first woman CJI in February 2027.
- But her elevation will lead to the supersession of 32 senior judges.
- Supersession itself is perceived as a threat to an independent judiciary
- Seniority combined with merit is the sacrosanct criteria for promotion in the judiciary.
- New CJI should secure the trust of members of his collegium to fill the backlog of 411 vacancies across high courts and six vacancies in the SC.
Consider the question “What are the various structural issues faced by the judiciary in India? Suggest the measures to deal with them.”
Conclusion
A greater number of women in the Supreme Court would eventually lead to a woman CJI. This would be a gratifying change, which may mark the beginning of a new era of judicial appointments.
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From UPSC perspective, the following things are important :
Prelims level: BEPS
Mains level: Paper 3- Global minimum tax
The article highlights the issue of race among countries to offer low corporate taxes to attract global financial capital and its implications.
What factors contributed to low corporate tax
- When the Soviet Bloc collapsed in 1990, nations in east Europe were badly hit and needed capital infusion to overcome their economic woes.
- To attract global capital, they cut their tax rates sharply. This resulted in a ‘race to the bottom’.
- Global financial capital which is highly mobile has effectively used tax havens and shell companies to shift profits and capital across the globe.
- This mobility has enabled it to extract concessions from countries by making them compete with each other to match the concessions given by another — that is the ‘race to the bottom’.
- Nations in Europe were forced to cut their tax rates one after the other to not only attract capital but also to prevent capital from leaving their shores.
- Also, any country facing economic adversity can cut its tax rates to attract capital and force others to follow suit.
- India has also cut its tax rates since the 1990s.
- Most recently in 2019 the corporation tax rate was cut drastically to match those prevailing in Southeast Asia.
Implications of lower corporate tax rate
1) Shortage of resources
- The race to the bottom had global implications.
- Nations became short of resources and cut back expenditures on public services and encouraged privatisation.
- The developing countries followed suit even though private markets do not cater to the poor.
- Thus, disparities increased within nations.
2) Base Erosion and Profit Shifting
- The world experienced Base Erosion Profit Shifting (BEPS).
- Namely, companies shifted their profits to low tax jurisdictions, especially, the tax havens.
- For instance, many of the most profitable companies like Google and Facebook are accused of shifting their profits to Ireland and other tax havens and paying little tax.
- EU has levied fines on Google and Apple for such practices.
- Since all the OECD countries have suffered due to cuts in tax rates and BEPS, initiatives have been taken to check these practices.
- But they will not succeed unless there is agreement among all the countries.
3) Regressive tax structure
- Another implication of the reductions in direct tax rates has been that governments have increasingly depended on the regressive indirect taxes for revenue generation.
- Value-Added Tax and Goods and Services Tax have been increasingly used to get more revenues.
- This impacts the less well-off proportionately more and is inflationary.
- Direct taxes tend to lower the post-tax income inequality.
- The rising inequalities result in shortage of demand in the economy and to its slowing down which then requires more investment and that calls for more concessions to capital.
Call for Global minimum tax rate
- It is against this backdrop that United States Secretary of the Treasury Janet L. Yellen’s has proposed a global minimum tax rate.
- But, without global coordination, corporation tax rates cannot be raised.
- The U.S. is crucial to this coordination.
- There will also have to be cooperation among countries to tackle the lure of the tax havens by enacting suitable global policies.
Consider the question “What factors contributed to the race to bottom on the corporate taxes among the countries? What are its implications? Will the global minimum tax rate be able to deal with it?”
Conclusion
The impact of all this will be far-reaching impacting inequalities, provision of public services and reduction of flight of capital from developing countries such as India and that will impact poverty.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Factors to consider in finding solution to conflicts in Afghanistan and Myanmar
The article highlights the inherent difficulty in finding a solution to the two conflicts raging on in India’s neigbourhood.
Tale of two conflicts in neighbourhood
- Efforts to end two major conflicts in India’s neighbourhood have become intense.
- To the west, a peace summit on Afghanistan, seeking to end decades of conflict there, was also scheduled to take place in Istanbul over the weekend.
- To the east, the Association of Southeast Asian Nations (ASEAN) has produced a diplomatic opening with Myanmar’s military leadership.
- Afghan conflict go back to the late 1970s; since then we have seen different phases of the conflict.
- Although the crisis in Myanmar appears recent, the tension between civil-military relations is not new.
- Back in 1988, the army annulled the huge mandate won by Aung San Suu Kyi and unleashed massive repression.
3 Common Themes in the effort at peace and reconciliation
1) Ending violence
- The first is about ending violence.
- In Afghanistan it has been near impossible to get a resurgent Taliban to agree to stop its attacks on government forces or the civilian population.
- The ASEAN initiative in Myanmar calls for an immediate cessation of violence and utmost restraint from all sides.
- The opposition demanding restoration of democracy might find this rather ironic, since it is the army that is employing violence and has shown scant restraint.
2) Dialogue among all parties
- The second theme in the ASEAN initiative — “constructive dialogue among all parties” to “seek a peaceful solution” — is also common to all peace processes.
- The Taliban found all kinds of excuses to delay a dialogue with the Kabul government that it always saw as illegitimate. So far, it has avoided one.
- In Myanmar, the army might be ready to engage the opposition in a prolonged dialogue and defuse international pressure; but it will be hard for the victims of the coup to accept a dialogue on the army’s terms.
3) Third-party mediator
- The Afghan conflict has long been internationalised.
- All major powers, including regional actors and neighbours, have acquired stakes in the way the Afghan conflict is resolved.
- This unfortunately makes the construction of an internal settlement that much harder.
- In Myanmar, the ASEAN has set the ball rolling by agreeing that a special envoy will be traveling to the region and will engage with all parties to the conflict.
Cost-benefit in diplomacy
- The US is hoping that the Taliban will moderate some of its hardline positions given its need for significant international economic assistance for reconstruction, political legitimacy.
- In Myanmar, too, the international community will hope the military would want to avoid the risks of political isolation and economic punishment.
- But how the Taliban and the Myanmar army calculate these costs and benefits could be very different.
- Both have long experience of surviving external pressure and enduring sanctions.
Conclusion
Few civil wars have seen the kind of massive external effort to change the internal dynamics as in Afghanistan; but to no avail. In Myanmar, it is not clear how far the international community might go. The prospects for positive change in Afghanistan and Myanmar, then, do not look too bright in the near term.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Role of civil servants in implementing the development agenda
The article highlights the role bureaucracy can play in the development of the country and suggests the ways to deal with the challenges faced by the bureaucracy.
Background of the PSU’s
- In the 1950s and ’60s, the private sector had neither the capability to raise capital to take the country on the path of industrialisation.
- The state had to take on the role of industrialising the country by establishing PSUs.
- The civil services became the natural choice for establishing and managing these units.
- They delivered substantially, if not fully.
- Even after privatisation, the bureaucracy would be required for the transition of PSUs from the public to the private sector.
Need for structural transformation agenda
- The goal of making India a $5-trillion economy needs a coherent structural transformation agenda and extraordinary implementation capacity.
1) Dealing with crony capitalisms
- Since Independence, the political survival of Indian regimes has required pleasing a powerful land-owning class and a highly concentrated set of industrial capitalists.
- The elites of business houses and land owners share no all-encompassing development agenda.
- Can the present regime find a way out of this conundrum?
2) Implementing the development agenda
- While the agenda is an outcome of political choices, the thinking goes that market mechanisms should be used as far as possible to make economic choices.
- This argument is at the heart of the privatisation of state assets.
- However, markets operate well only when they are supported by other kinds of social networks, which include non-contractual elements like trust.
- Particularly in industrial transformation, there must be an essential complementarity of state structures and market exchange.
- Only a competent bureaucracy can provide this.
- It is for this reason that Max Weber argued that the operation of large-scale capitalist enterprise depended upon the kind of order that only a modern bureaucratic state can provide.
3) Removing the constraints on the bureaucracy
- The political and permanent executives had to work as a team through mutual respect for each other’s roles as defined in the Constitution.
- Every deviation from these ideals has lowered the capacity of the state to deliver.
- This is the result of electoral politics where the essence of the state action is the exchange relationships between the incumbent governments and its supporters.
- All this is achieved by undermining the impartiality of the bureaucracy in implementing rules and giving opinions frankly.
- The power to transfer is weaponised to bring the bureaucrats to heel and it works because authority sits with the position not the person.
- The pressure on officials to behave contrary to the ostensible purpose of the department undermines to a great extent the ability of the state to promote development.
- If privatisation is to work, then the corruption-transfer mechanism and its effects on the bureaucracy has to go.
4) Corporate coherence
- Corporate coherence is the ability of the bureaucracy internally to resist the invisible hands of personal maximisation by undercutting the formal organisational structure through informal networks.
- If this goes too far, then everything becomes open to sale and the state becomes predatory.
Consider the question “What are the issues facing civil services in India? Suggest the ways to deal with these issues.”
Conclusion
We need to fight the increasing tendency to grab public resources and restore to the bureaucracy its autonomy of action as envisaged in the Constitution by de-weaponising transfers.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Role of microfinance in India and challenges sector faces
The article highlights the important role played by the microfinance sector in furthering financial inclusion in India and suggests measures to achieve holistic development of the sector.
Important role played by microfinance
- No other form of financial services has had the kind of far-reaching impact, in terms of fostering financial inclusion, as microcredit has.
- Access to small, collateral-free loans for economically productive purposes has helped transform the lives of millions at the bottom-of-the-pyramid—especially women.
- Over the past decade, India’s microfinance industry has grown at a compound annual growth rate of 26% to reach ₹2.36 trillion.
- It has helped 50 million economically vulnerable Indians, 99% of them women, live a life of dignity and financial independence.
- Assuming that these 50 million people who took a loan to start a small business employed at least one other person, it translates into 50 million additional jobs in the country.
- This creates a ‘network effect’ that has a social impact at scale.
Evolution of microfinance industry
- Recommendations of the Malegam Committee, which became regulations, and practices such as relying on credit bureau data to assess a borrower’s creditworthiness have helped the industry immensely.
- The vital role that microfinance plays in the last-mile delivery of financial services was acknowledged.
- Subsequently, eight out of the 10 small finance bank licences granted were also given to microfinance institutions.
- RBI has sought to undertake a comprehensive review of the sector again, after 10 years, to better align the regulatory framework with the sector’s current realities.
Steps for development of sector
- First, Entities should promote financial literacy through group meetings of borrowers.
- Second, organizations should complement their microcredit operations with social development projects and community-connect initiatives.
- Third, prospective borrowers’ indebtedness and ability to repay dues should be assessed properly.
- Fourth, loans must be given only for income-generation purposes.
- Fifth, every microfinance organization should devote time and resources for capacity building at the grassroots.
- Sixth, rather than focusing on taking over the existing debt of a borrower, or lending to her further, institutions should focus on bringing new-to-credit customers into the fold.
Consider the question “How can microcredit stimulate financial inclusion in India? Suggest the measures for the development of microfinance sector in India.”
Conclusion
There is much more that we, as a nation, collectively need to do in order to bring a vast population of unbanked and underbanked Indians into the fold of formal financial services.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 50, Article 124
Mains level: Paper 2- Challenges facing judiciary in India
The article highlights the issues facing the judiciary in India and emphasises the need for addressing these issues.
Separating judiciary from the executive
- Today, the judiciary, especially the SC, is called upon to decide a large number of cases in which the government has a direct interest.
- These can be politically sensitive cases too.
- The framers of the Constitution understood the importance of the oath of office of judges of the Supreme Court of India (SC) and carefully designed its language.
- The words, “without fear or favour” to “uphold the constitution and the laws” are extremely significant and stress the need for a fiercely independent court.
- Article 50 of the Constitution provides: “The State shall take steps to separate the judiciary from the executive in the public services of the State.”
Master of roaster issue
- The Chief Justice of India is the first amongst the equals but by the virtue of his office assumes significant powers as the Master of the Roster to constitute benches and allocate matters.
- The SC has re-affirmed this position in a rather disappointing decision in Campaign for Judicial Accountability and Reforms v. Union of India, (2018).
- The result has been catastrophic.
- Many matters were either treated casually or deflected for no reason from serious hearing.
Accountability from legislature and executive
- The SC is expected to seek strict accountability from the legislature and executive and any infraction of the Constitution and laws must be corrected.
- Yet, this is not happening.
- A country of billion-plus needs its highest court to stand for the people, not seemingly for the executive of the day.
Inherent and fundamental challenges
- The judiciary is besieged by inherent and fundamental challenges.
- Millions of pending cases, quality of judges and their decisions, organisational issues and its integrity and impartiality, need urgent attention.
- Yet, in the last two decades precious little has been done.
- Justice is eluding the common man, including the vulnerable sections of society.
Way forward
- The new Chief Justice must seriously introspect and free himself of the bias in constituting benches and allocating cases and take concrete steps to revitalise the administration of justice.
- Only then will the rule of law be restored and the Constitution served.
Consider the question “Examine the inherent and fundamental challenges faced by the judiciary in India. Suggest the measures to deal with these challenges.”
Conclusion
The Chief Justice of India on account of the position he holds as paterfamilias of the judicial fraternity, was suspected by none other than Dr B R Ambedkar. Let us hope the new Chief Justice makes serious efforts to prove otherwise.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Role of data in shaping the global order
Digital data revolution
- The Industrial Revolution restructured the global manufacturing order to Asia’s disadvantage.
- But in the ‘Digital Data Revolution’, algorithms requiring massive amounts of data determine innovation, the nature of productivity growth, and military power.
- Mobile digital payment interconnections impact society and the international system, having three strategic implications.
3 implications of mobile digital payment interconnections
1) Symbiotic nature of military and civilian system
- Because of the nature and pervasiveness of digital data, military and civilian systems are symbiotic.
- Cybersecurity is national security, and this requires both a new military doctrine and a diplomatic framework.
2) Productivity advantage of data to Asia
- The blurring of distinctions between domestic and foreign policy and the replacement of global rules with issue-based understanding converge with the growth of smartphone-based e-commerce, which ensures that massive amounts of data give a sustained productivity advantage to Asia.
3) India can negotiate new rules as an equal with US and China
- Data streams are now at the centre of global trade and countries’ economic and national power.
- India, thus, has the capacity to negotiate new rules as an equal with the U.S. and China.
How data shaped US-China relations
- Innovation based on data streams has contributed to China’s rise as the second-largest economy and the “near-peer” of the U.S.
- The national security strategy of the U.S. puts more emphasis on diplomacy than military power to resolve conflicts with China, acknowledging that its military allies have complex relationships with Beijing, as it seeks to work with them to close technology gaps.
- China’s technology weakness is the dependence on semiconductors and its powerlessness against U.S. sanctions on banks, 5G and cloud computing companies.
- But China’s digital technology-led capitalism is moving fast to utilise the economic potential of data, pushing the recently launched e-yuan and shaking the dollar-based settlement for global trade.
How global strategic balance will be shaped by data standard
- China has a $53-trillion mobile payments market and it is the global leader in the online transactions arena, controlling over 50% of the global market value.
- India’s Unified Payments Interface (UPI) volume is expected to cross $1 trillion by 2025.
- The U.S., in contrast, lags behind, with only around 30% of consumers using digital means and with the total volume of mobile payments less than $100 billion.
- The global strategic balance will depend on new data standards.
- The U.S., far behind in mobile payments, is falling back on data alliances and sanctions to maintain its global position.
India’s role in digital economy
- With Asia at the centre of the world, major powers see value in relationships with New Delhi.
- India fits into the U.S. frame to provide leverage.
- China wants India, also a digital power, to see it as a partner, not a rival.
- And China remains the largest trading partner of both the U.S. and India despite sanctions and border skirmishes.
Way forward for India
- India, like China, is uncomfortable with treating Western values as universal values and with the U.S. interpretation of Freedom of Navigation rules in others’ territorial waters.
- New Delhi’s Indo-Pacific vision is premised on “ASEAN centrality and the common pursuit of prosperity”.
- The European Union recently acknowledged that the path to its future is through an enhanced influence in the Indo-Pacific, while stressing that the strategy is not “anti-China”.
- The U.S. position in trade, that investment creates new markets, makes it similar to China’s Belt and Road Initiative.
Conclusion
India alone straddles both U.S. and China-led strategic groupings, providing an equity-based perspective to competing visions. It must be prepared to play a key role in moulding rules for the hyper-connected world, facing off both the U.S. and China to realise its potential of becoming the second-largest economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Covid vaccination policy and issues with it
The article deals with the issues of different prices set for the Covid vaccine and its implications.
Understanding the positive and negative externalities
- Vaccines have a positive externality; it is a good whose consumption benefits not just the one who has it.
- A vaccinated person is not only relatively protected against the disease himself/herself, but also less likely to transmit it to others.
- Usually, a person getting vaccinated takes into account only his/her own cost and benefit, while ignoring the fact that he/she lowers the chances of infecting others.
- It is the opposite of smoking, which has “negative externality”.
- Since every individual ignores the full set of benefits/costs from consuming goods with positive/negative externalities, the market isn’t always the most efficient mechanism for allocation of such goods.
- That is a key reason why governments treat goods having large positive externalities as “public goods” and provide these while factoring in the full costs and benefits to society.
Analysing the issues with vaccine policy
1) Vaccine inequality
- It requires vaccine manufacturers to supply 50 per cent of their production to the Centre at controlled prices, while allowing them to sell the remaining half in the open market including to state governments at pre-announced “self-set” prices.
- To start with, the new policy can lead to differential access to the vaccine.
- Manufacturers are supposed to “transparently declare” their prices in advance for their 50 per cent supply to the open market.
- But there is no limit per se on the retail price they would charge.
- This could lead to a whole range of prices and vaccine inequality, apart from diversion of supplies from the controlled low-price government centres to the open market.
- So, we may well have scarcity in the “mass” segment co-existing with a glut in the “elite” segment.
- There is also concerns about economic efficiency and the potential for market failure.
2) Economic efficiency and potential for market failure
- Imagine there are two sets of people in India.
- The first consists of those who are better off and can afford to stay back or work from home.
- This lot is also less likely to cause infection to others.
- The second set is mostly blue-collar workers, small traders, vendors and agriculturists.
- The nature of their work — on the shop floor or in the field — makes them naturally prone to infect others.
- It follows, then, that society gains from first vaccinating the latter, as they have a higher negative externality.
- The market will ignore those with lower purchasing power, despite them having a higher probability of spreading the disease.
- In fact, the bigger the income difference between the two segments, the greater will be the extent of market failure from simultaneous over-provisioning and under-provisioning.
Way forward
- The solution could be a single price to be paid to vaccine makers for all the doses that they supply.
- The price should be high enough to stimulate them to rapidly ramp up production.
- Those government should pay directly to the vaccine maker or the hospital administering the dose for those without sufficient means.
- The suggested solution is similar to the fertiliser subsidy, which is now disbursed to companies only after actual sales to farmers.
Consider the question “What policy should be followed for the vaccination in the country? What are the issues with the curent policy which involved different price for government and for open market.”
Conclusion
A single price for Covid-19 vaccines will stimulate production, ensure efficient vaccination.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Covaxin and Covishield
Mains level: Paper 2- Breakthrough infections
Breakthrough infection
- ICMR said that a small fraction of those vaccinated with either Covaxin or Covishield have tested positive (i.e. breakthrough” infections).
- However, these instances do not undermine the efficacy of the vaccines.
- The immune response begins to develop usually two weeks after every dose and there are variations within individuals, too.
- Of the 9.3 million who received the first dose of Covaxin, 4,208 tested positive; and of the 1.7 million who received the second dose, 695 tested positive.
- For Covishield, of the 100.3 million who received the first dose, 17,145 tested positive; and of the 15 million who got the second dose, 5,014 tested postive.
What explains infections after vaccination
- Healthcare and frontline workers, who were among the first to be vaccinated, were as a population far more exposed to the virus and therefore more susceptible.
- Secondly, the emergence of “the highly transmissible second wave (newer variants) ” may have contributed to instances of infection among those vaccinated.
- Several variants, which have mutations that have been shown to avoid detection by the immune system, and in some cases reduce the efficacy of vaccines, have been reported globally, including in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Protecting the police from political interference
The article suggests the need for reforms in the process of appointment to the police chief to ensure the political neutrality of the police.
Process of appointing and removing police chief
- A crucial way in which governments exercise control over the State police is through their unregulated power to decide who the chief will be.
- There is no independent vetting process to assess the suitability of qualified candidates, and the government’s assessment, if it is done at all, remains opaque and is an exercise behind closed doors.
- The moot reform issue is in ensuring the right balance between the government’s legitimate role in appointing or removing the police chief with the need to safeguard the chief’s operational autonomy.
Need for reforms
Two elements are vital to reforms in this area.
1) Shift the responsibility to independent oversight body of which government is one part
- The National Police Commission (NPC) (1979), and the Supreme Court in its judgment in 2006, in the Prakash Singh case suggested establishing a state-level oversight body with a specified role in the appointment and removal of police chiefs.
- While the Supreme Court entrusted the Union Public Service Commission (UPSC) with a role in shortlisting candidates from which the State government is to appoint the police chief.
- However, the Model Police Bill, 2015 places the responsibility with a multiparty State Police Board, also referred to as the State Security Commission (SSCs) instead.
No compliance with SC directive in the formation of SSC
- While 26 States and the Union Territories have established SSCs, not a single one adheres to the balanced composition suggested by the top court.
- Some do not include the Leader of the Opposition; others neither include independent members nor follow an independent selection process of the members.
- In essence, the commissions remain dominated by the political executive.
- Moreover, in as many as 23 States, governments retain the sole discretion of appointing the police chief. Assam, Jharkhand, Karnataka, Meghalaya and Mizoram are the only States where, on paper, the SSC is given the responsibility of shortlisting candidates.
2) Need for transparency
- The second element critical to police reforms is instituting an independent and transparent selection and decision-making process around appointment and removal, against objective criteria.
- On appointments, the Court and the Model Police Act require the UPSC/SSC to shortlist candidates on the basis of length of service, service record, and range of experience and a performance appraisal of the candidates over the past 10 years.
- However, no further guidance has been developed on explaining these terms or specifying their elements.
- Similarly, no scrutiny process has been prescribed to justify removals from tenure posts.
- The National Police Commission had required State governments to seek the approval of the State Security Commission before removing the police chief before the end of term.
- This important check was diluted under the Prakash Singh judgment that only requires governments to consult the SSC.
- Most States omit even this cursory step.
- The Supreme Court has rightly emphasised that “prima facie satisfaction of the government” alone is not a sufficient ground to justify removal from a tenure post in government, such as that of the police chief (T.P. Senkumar vs Union of India, 2017).
- The rule of law requires such decisions be for compelling reasons and based on verifiable material that can be objectively tested.
Way forward
- Clear and specific benchmarks need to be integrated into decision-making processes, both on appointments and removals, to prevent politically motivated adverse actions.
- In improving transparency the United Kingdom provides a useful example by introducing public confirmation hearings as an additional layer of check for the appointment of the heads of their police forces.
Consider the question “Examine the status of compliance of the states to the directives of the Supreme Court with respect to the constitution of State Security Commission in the Prakash Singh case.”
Conclusion
Reforms are needed on urgent to ensure fairness in administrative decisions and to protect the political neutrality of the police. Any further delay in implementing reforms in this area will continue to demoralise the police and cripple the rule of law.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green hydroge
Mains level: Paper 2- Scaling up green hydrogen manufacturing capacity in India
Green hydrogen could help significantly in India’s transition to low carbon future. However, there are several challenges in ramping up its manufacturing. The article suggests measures to deal with these challenges.
Increasing the production of green hydrogen
- India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM).
- India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM).
- In 2030, according to an analysis by the Council on Energy, Environment and Water (CEEW), green hydrogen demand could be up to 1 million tonnes in India across application in sectors such as ammonia, steel, methanol, transport and energy storage.
Dealing with challenges
Several challenges in scaling up to commercial-scale operations persist. Following are five recommendations.
1) Decentralise green hydrogen production
- Decentralised hydrogen production must be promoted through open access of renewable power to an electrolyser (which splits water to form H2 and O2 using electricity).
- Currently, most renewable energy resources that can produce low-cost electricity are situated far from potential demand centres.
- Producing oxygen at such locations and then shipped, it would significantly erode the economics of it.
- A more viable option would be wheeling electricity directly from the solar plant.
- However, the electricity tariffs could double when supplying open-access power across State boundaries.
- Therefore, operationalising open access in letter and spirit, as envisioned in the Electricity Act, 2003, must be an early focus.
2) Ensure access to round-the-clock renewable power
- To minimise intermittency associated with renewable energy, for a given level of hydrogen production capacity, a green hydrogen facility will store hydrogen to ensure continuous hydrogen supply.
- Therefore, as we scale up to the target of having 450 GW of renewable energy by 2030, aligning hydrogen production needs with broader electricity demand in the economy would be critical.
3) Blending green hydrogen in industrial sector
- We must take steps to blend green hydrogen in existing processes, especially the industrial sector.
- Improving the reliability of hydrogen supply by augmenting green hydrogen with conventionally produced hydrogen will significantly improve the economics of the fuel.
- This will also help build a technical understanding of the processes involved in handling hydrogen on a large scale.
4) Facilitate investment
- Policymakers must facilitate investments in early-stage piloting and the research and development needed to advance the technology for use in India.
- The growing interest in hydrogen is triggered by the anticipated steep decline in electrolyser costs.
- Public funding will have to lead the way, but the private sector, too, has significant gains to be made by securing its energy future.
5) Focus on domestic manufacturing
- India must learn from the experience of the National Solar Mission and focus on domestic manufacturing.
- Establishing an end-to-end electrolyser manufacturing facility would require measures extending beyond the existing performance-linked incentive programme.
- India needs to secure supplies of raw materials that are needed for this technology.
- Further, major institutions like the DRDO, BARC and CSIR laboratories have been developing electrolyser and fuel-cell technologies.
Consider the question “Even before it has reached any scale, green hydrogen has been anointed the flag-bearer of India’s low-carbon transition. In lights of this, examine the challenges India faces in scaling up its green hydrogen production and suggest the ways to deal with these challenges.”
Conclusion
Hydrogen may be lighter than air, but it will take some heavy lifting to get the ecosystem in place.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ESIS and EPF
Mains level: Paper 3- ESIS and EPF
The idea of welfare state
- Covid reminds us that a modern state is a welfare state as governments worldwide launched 1,600 plus new social protection programmes in 2020.
- Sustainable social security lies in raising India’s 138th ranking in country per-capita GDP.
- However, on the social security schemes, there is a case for three reforms to our biggest health insurance and pension schemes:
- These schemes are the Employee State Insurance Scheme (ESIS) and Employee Provident Fund (EPF).
Issues with ESIS
- The Employee State Insurance Scheme (ESIS) is India’s richest and biggest health insurance scheme with 13 crore people covered and Rs 80,000 crore in cash.
- Employers with more than 10 employees make a mandatory 4 per cent payroll deduction for employees earning up to Rs 21,000 per month.
- Despite covering roughly 10 per cent of India’s population, a recent working paper from Dvara Research suggests high dissatisfaction.
- The constraint is hardly resources: ESIC’s unspent reserves are larger than the Central government’s healthcare budgetary allocation.
Issues with EPF
- EPF is India’s biggest pension scheme with a Rs 12 lakh crore corpus and 6.5 crore contributors.
- Employers with more than 20 employees make mandatory 24 per cent payroll deductions for employees earning up to Rs 15,000 per month.
- It only covers 10 per cent of India’s labour force and 60 per cent of accounts and 50 per cent of registered employers are inactive.
- EPF offers poor service and pathetic technology despite employer-funded administrative costs that make it the world’s most expensive government securities mutual fund.
Updating the risk-sharing frameworks in society
- In a book titled What We Owe Each Other: A New Social Contract, Nemat Shafik suggests updating the risk-sharing framework in societies.
- This is because current structures are breaking up under the weight of changes in the role of women, longer careers, technology, globalisation, and much else.
- She suggests a more nuanced social security redistribution across time (the piggy bank function), incomes (the Robin Hood function), and financial burden-bearing (the state, individuals, or employers).
- In India, the answer lies in fixing the problems of EPF and ESIS.
Solution to the EPF and ESIS problems
- Both suffer from poor coverage, high costs, unsatisfied customers, metrics confused with goals, jail provisions, excessive corruption, low expertise, rude and unaccountable staff with no fear of falling or hope of rising, and no competition.
Let’s look at possible solutions.
1) Structure
- EPF and ESIS combine the roles of policymaker, regulator, and service provider.
- Splitting roles is a precondition for performance because goals, strategy, and skills are different.
- An independent policymaker horrified with only 6 lakh of India’s 6.3 crore enterprises covered would create competition.
- An independent regulator terrified by ESIS overcharging would frown on a claims ratio of less than 75 per cent.
- An independent service provider would invest heavily in technology, customer service, and human capital.
- Splitting roles would lead to the following benefits:
- 1) Competition from NPS for EPF.
- 2) Ending VIP opt-out by merging CGHS with ESIS,
- 3) Raising enforceability by making employee provident fund contribution voluntary.
- 4) Improving portability by de-linking accounts from employers.
- 5) Targeting universalisation by simultaneously ending minimum employer head-count and employee salary contribution thresholds while introducing absolute contribution caps.
- The Health and Finance Ministry would be logical homes for ESIS and EPF policy roles.
2) Governance
- The governing board of ESIS and EPFO have 59 and 33 members respectively.
- Such a large group can’t have meaningful discussions, make decisions, and exercise oversight.
- This governance deficit needs smaller boards (not more than 15), age limits, term limits, expertise, active sub-committees (HR, Investments, and technology) and real powers.
3) Leadership
- Health and pensions need complex skills developed over time.
- Yet, ESIS and EPF are led by generalist bureaucrats.
- Both organisations need professional chief executives.
- Philosopher Isaiah Berlin’s framing of the generalist vs specialist debate as hedgehogs (who know one thing) and foxes (who know many things) is important.
- A less generalist, non-transitory, and non-cadred chief executive would create a new tone-from-the-top around performance management, technology, and service outcomes.
Conclusion
Social security — not a borrowing binge that steals from our grandchildren — can blunt structural and COVID inequality when combined with complementary policies like formalisation, financialisation, urbanisation, and better government schools. But a great place to start is three flick-of-pen, non-fiscal reforms at EPF and ESIS.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FDI restrictions on e-commerce
Mains level: Paper 3- FDI in e-commerce
We need a comprehensive FDI policy on trade to take care of the needs of all the stakeholders. The article highlights the issues faced by the e-commerce sector in relation to the FDI policy.
E-commerce as an enabler
- With their efficient, quick and reliable logistics network, e-commerce platforms have nudged consumer behaviour patterns from an offline to an online shopping mode.
- During the pandemic, e-commerce emerged as an enabler in ensuring the availability of essentials to the masses.
- E-commerce is going to be increasingly important in the future of retail shopping in India and the world over.
- It is estimated to become a $100 billion industry by 2024, which was at $38.5 billion until 2017.
- The trend will continue to grow with the government’s impetus on digital literacy, also supported by the increasing penetration of internet and smartphone users.
- However, what the sector lacks is the bandwidth of operation.
Issues with FDI policy for e-commerce
- In addition to the FDI Policy/FEMA, other laws such as IT Act, Consumer Protection Act, and those pertaining to IP and copyright, regulate the e-commerce sector in India.
- Of these, the FDI policy plays an important role as massive investments are needed to build and strengthen the entire ecosystem of the e-commerce sector in the country.
- FDI policies on trade have evolved over time as policy-making was done from time to time mostly responding to the needs of the market coupled with political feasibility.
- Thus, FDI policy in cash and carry or wholesale B2B operations is different (100 per cent FDI allowed under automatic route) compared to highly restrictive FDI policy on retail B2C trade.
- Similarly, an artificial distinction was created between single-brand retail and multi-brand retail as opposition to multi-brand retail was strong: 100 per cent FDI is allowed under automatic route in single-brand retail whereas FDI regime in multi-brand retail is quite restricted.
- E-commerce is not allowed under FDI policy in multi-brand retail.
- The FDI policy on e-commerce is quite different as e-commerce platforms are allowed to work only as a marketplace with permission to provide certain specified services to sellers and buyers.
- However, FDI is allowed in the inventory model when these platforms sell fresh farm produce made in India.
- There is no specific policy on FDI in e-commerce for exports.
Need for comprehensive FDI policy for trade
- The rapid expansion of the retail, organised retail as well e-commerce sector in India in the coming years will create huge opportunities for all.
- The policies that have evolved over time need a relook to balance the interests of all in a win-win policy.
- Today, our small businesses employing an exceptionally large number of workers need to use e-commerce more and more to augment their sales.
- E-commerce provides them with the means to access a much bigger market without having to overly invest in marketing. This should include more and more foreign markets.
- Consumers have benefited enormously from e-commerce.
- Also, the harmonious working of online and offline retailers is essential.
- With GST and the drive towards digitisation, more small traders need to be enabled to make the transition and take advantage of the expanding opportunities.
Consider the question “Why e-commerce sector is important for the economy of a country? What are the issues the sector faces in India?”
Conclusion
Public policy on e-commerce needs to place an equal premium on the views and interests of all the stakeholders in the ecosystem to strengthen our domestic businesses and create many more jobs and livelihood opportunities in the country to fulfil the dreams of Atmanirbhar Bharat.
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From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Factors making Naxal moment a complex security challenge
The article explains the issues with the two common themes adopted for explaining the Naxal movement in India.
Two approaches to explain Naxal movement
1) Root cause and alienation approach
- The recent attack in and around Tekulagudem village in Sukma district demonstrates the threat posed by Maoists.
- The post-incident analysis of such setbacks comes in two flavours.
- The most popular theory amongst our intelligentsia and media is the root cause and alienation approach.
- This approach states that it is the failure of the Indian state to provide economic development and social justice to the tribals living in these areas that has fuelled the Naxal movement and sustained it for five decades.
- As a prescription, a development-centric approach and negotiations are suggested as the way forward.
Issues with root cause and alienation approach
- There are several problems with this approach.
- First, it ignores the ideological foundations of the movement, specifically its rejection of India’s Constitution and democracy.
- Second, it fails to see that social and economic deprivation is not unique to the jungles of Chhattisgarh.
- Third, it doesn’t account for the possibility that while alienation and deprivation may help in igniting the spark of revolution, once lit the flames draw oxygen from many sources.
- Fourth, the role of external forces in fomenting and sustaining this movement is deliberately underplayed.
- Fifth, the grubby ground reality of the praxis of revolution is conveniently swept under the carpet.
- The organised extortion racket from all economic stakeholders in the Naxal-affected areas by our alienated revolutionaries seldom gets talked about.
- Sixth, the extensive ideological, financial and logistical ecosystem that provides sustenance to these revolutionaries in the jungle is seldom acknowledged.
2) Leadership issue
- According to this view, our tactical failures against the Maoists are entirely due to the poor quality of leadership provided by the Indian Police Service.
- The when, where, how of a setback simply don’t matter.
- When in doubt, identify the first IPS officer in the chain of command and hoist him on the petard of tactical incompetence.
- This view completely ignores the many successes of IPS leadership in counterinsurgency operations in Punjab, Andhra Pradesh, Uttar Pradesh and most recently in Odisha.
- Even in the Northeast and Jammu and Kashmir, where the Indian Army provides the backbone of the counterinsurgency grid, the police forces of the respective states and their IPS leadership play a crucial role in gathering intelligence and in executing operations.
- So, the failures and setbacks in the Naxal areas of Chhattisgarh need to be placed in perspective.
Way forward
- The fact that the Indian state has adopted a broad policy of economic development, military restraint and gradual attrition and rejected indiscriminate violence in the Naxal theatre is the democratically prudent and morally just course of action.
- This hasn’t dissuaded Maoist sympathisers from gaining international attention through relentless propaganda against our security forces.
- However, such attacks also help in exposing their true nature and hardening public resolve against them.
- \We have enough examples of successful, police led CI Ops in our country.
- Why we are not able to replicate these successes in Chhattisgarh is a matter of larger political issues, well beyond the narrow scope of operational tactics and individual lapses of police leadership.
- Not just the politics, the geography and demography of the Naxal-affected areas, make it an even more complex challenge of internal security.
Consider the question “What are the factors that make Naxal movement a persistent threat to India’s internal security? ”
Conclusion
Not just the politics, the geography and demography of the Naxal-affected areas, make it an even more complex challenge of internal security.
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