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  • RTI – CIC, RTI Backlog, etc.

    Resurrecting the right to know

    op-ed snap | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- People's right to know

    This article analyses the importance of peoples’ right to know and instrumental role judiciary played in harmonising it with the Official Secrets Act 1923.

    Context

    • A High Level Committee (HLC) chaired by a retired judge of the Gauhati High Court was constituted by the Home Ministry through a gazette notification.
    • Its mandate was, among others, to recommend measures to implement Clause 6 of the Assam Accord and define “Assamese People”.
    • The HLC finalised its report by mid-February 2020 and submitted it to the Assam Chief Minister and through him to the Central government.
    • With the Central government apparently “sitting idle” over the report, the All Assam Students’ Union (AASU), which was represented in the HLC, released the report.

    The right to know

    • The right to know was recognised nearly 50 years ago and is the foundational basis or the direct emanation for the right to information.
    • In State of U.P. v. Raj Narain (1975), the Supreme Court carved out a class of documents that demand protection even though their contents may not be damaging to the national interest.
    • Court held that “the people of this country are entitled to know the particulars of every public transaction in all its bearing”.
    • This view was endorsed in S.P. Gupta v. President of India (1981) and a few other decisions.
    • In Yashwant Sinha v. Central Bureau of Investigation (2019), the Supreme Court referred to the decision of the U.S. Supreme Court in New York Times v. United States (1971) wherein court declined to recognise the right of the government to restrain publication of the Pentagon Papers.
    • Our Supreme Court held that a review petition based on three documents published by The Hindu was maintainable since the provisions of the Official Secrets Act, 1923 had not been violated.
    • The SC held that there is no provision by which Parliament had vested power in the government either to restrain the publication of documents marked as secret or from placing such documents before a court.
    • Section 8(2) of the Right to Information Act, 2005 provides that a citizen can get a certified copy of a document even if the matter pertains to security or relationship with a foreign nation if a case is made out.
    • Therefore, it is clear that the right to know can be curtailed only in limited circumstances and if there is an overriding public interest.

    Consider the question “Analyse the importance of citizens’ right to know and how the judiciary harmonised the peoples right to know with the Official Secrets Act 1923? “

    Conclusion

    We must keep in mind observation made by the Supreme Court in S.P. Gupta: “If secrecy were to be observed in the functioning of government and the processes of government were to be kept hidden from public scrutiny, it would tend to promote and encourage oppression, corruption and misuse or abuse of authority, for it would all be shrouded in the veil of secrecy without any public accountability.”

    B2BASICS

    Official secrets act

    • OSA has its roots in the British colonial era and was originally known as The Indian Official Secrets Act (Act XIV), 1889.
    • The act was primarily mandated to gag the voice of a large number of newspapers that came up in several languages, and were opposing the Raj’s policies, building political consciousness and facing police crackdowns and prison terms.
    • The act was amended and made more stringent in the form of The Indian Official Secrets Act, 1904, during Lord Curzon’s tenure as Viceroy of India.
    • In 1923, a newer version was notified. The Indian Official Secrets Act (Act No XIX of 1923) was extended to all matters of secrecy and confidentiality in governance in the country.
    • It was further amended after India got independence in 1951 and 1967. The act in its present form deals with two aspects — spying or espionage and disclosure of other secret information of the government.
    • Secret information can be any official code, password, sketch, plan, model, article, note, document or information. Under the act both the person communicating the information, and the person receiving the information, can be punished.

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  • Foreign Policy Watch: India-Middle East

    Importance of close alignment with moderate Arab centre

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Threat to sovereignty of the Arab countries and India's role

    The article analyses the threat the Arab countries faces from the new geopolitical realignment and India’s role in it.

    Geopolitical realignment in the middle east

    • Agreement on the normalisation of relations between the United Arab Emirates and Israel was signed recently.
    • At the same time, there is an equally significant reorientation of the Subcontinent’s relationship with the region.
    • This is marked by Pakistan’s alignment with non-Arab powers.

    Deteriorating relation of Pakistan with Arab world

    • Pakistan has been angry with UAE’s invitation to India to address the Organisation of Islamic Cooperation in early 2019.
    • Saudi Arabia’s reluctance to convene a meeting to condemn Indian actions in Kashmir last August has angered Pakistan.
    • While Pakistan appears to be dreaming of a new regional alliance with Turkey and Iran.
    • Pakistan is also betting that a rising China and an assertive Russia will both support this new geopolitical formation as part of their own efforts to oust America from the Middle East.

    Threat to the Arab world

    • Saudis and Emiratis see sharpening existential threats to their kingdoms from both Turkey and Iran.
    • Both Turkey and Iran now intervene with impunity in the internal affairs of the Arab world.
    • Two other states have joined this Great Game.
    • Malaysia’s Mahathir fancied himself as a leader of the Islamic world.
    • Arab Qatar, which is locked in a fraternal fight with the Saudis and the Emiratis, wants to carve out an outsized role for itself in the Middle East.

    India’s should follow five principles for Arab Sovereignty

    • 1) India must resist the temptation of telling the Arabs what is good for them.
    • India should support their efforts to reconcile with non-Arab neighbours, including Israel, Turkey and Iran.
    • 2) Oppose foreign interventions in the Arab world. In the past, those came from the West and Israel.
    • Today, most Arabs see the greatest threat to their security from Turkish and Iranian interventions.
    • 3) Extend support to Arab economic integration, intra-Arab political reconciliation and the strengthening of regional institutions.
    • 4) Recognise that India’s geopolitical interests are in close alignment with those in the moderate Arab Centre — including Egypt, Jordan, Saudi Arabia, the UAE and Oman.
    • 5) India can’t be passive amidst the unfolding geopolitical realignment in West Asia.
    • Some members of the incipient alliance — Turkey, Malaysia and China — have been the most vocal in challenging India’s territorial sovereignty in Kashmir.

    Consider the question “Examine the importance of India’s relations with Arab countries. What are the threats the region faces to their sovereignty and how India can play an important role to ensure their sovereignty.”

    Conclusion

    Standing up for Arab sovereignty and opposing the forces of regional destabilisation must be at the very heart of India’s new engagement with the Middle East.

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  • Delhi Full Statehood Issue

    Jurisdictional conflict in the running of Delhi Government

    op-ed snap | Polity | Mains Paper 2: Federalism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Article 239AA and Article 239AB

    Mains level: Paper 2- Conflict between Lt. Governor and the Delhi Government

    The article analyses the tussle between the Delhi Government and the Lt. Governor.

    What the 2018 SC judgement was about

    • The Supreme Court in Government of NCT of Delhi vs. Union of India (2018) decided on the conflicts between the government of NCT and the Union Government and its representative, the Lieutenant Governor.
    • It reminds the Lt. Governor what his real functions are.
    •  It tells the State government that it should remember that Delhi is a special category Union Territory.
    • It lays down the parameters to enabling the harmonious functioning of the government and the Lt. Governor.
    • It did not very clearly delineate the issues in respect of which the Lt. Governor can refer a decision taken by the Council of Ministers to the President in the event of a difference of opinion between the Lt. Governor and the State government.

    Settled issues and clarifications

    • The Supreme Court affirming that the Lt. Governor is bound to act on the aid and advice of council of ministers except in respect of ‘Land’, ‘Public Order’ and the ‘Police’.
    • The Court has also made it clear that there is no requirement of the concurrence of the Lt. Governor and that he has no power to overrule the decisions of the State government.
    • However, Article 239AA (4) (proviso) which says that in the case of a difference of opinion between the Lt. Governor and his Ministers on any matter, the Lt. Governor shall refer it to the President for decision and act according to that decision.
    • If the Lt. Governor thinks that the matter is urgent he can take immediate action on his own.

    How Article 239 AA(4) matters

    •  Lt. Governor can frustrate the efforts of the government, by declaring that there is a difference of opinion on any issue and refer it to the President.
    • Refering matter to the President in reality means the Union Home Ministry.
    • The Lt. Governor being its representative, it is easier for him to secure a decision in his favour.
    • The State government will be totally helpless in such a situation.
    • The recent appointment of prosecutors for conducting the Delhi riot cases in the High Court is a case in point.
    •  When the government decided to appoint them, the Lt. Governor referred it under proviso to Article 239AA (4) to the President stating that there is a difference of opinion.
    • This episode clearly points to the fault lines which still exist in the power equations in the capital’s administrative structure.

    But, can Lt. Governor refer routine administrative matter to the President?

    • A close reading of the Supreme Court judgment in the NCT Delhi case (supra) would reveal that he cannot.
    • The Supreme Court says “The words ‘any matter’ employed in the proviso to Article 239AA (4) cannot be inferred to mean ‘every matter’.
    • Court also says that “The power of the Lieutenant Governor under the said proviso represents the exception and not the general rule”.
    • The President is the highest Constitutional authority and his decision should be sought only on constitutionally important issues.

    Executive powers and legislative powers

    • Parliament can legislate for Delhi on any matter in the State List and the Concurrent List.
    • But the executive power in relation to Delhi except the ‘Police’, ‘Land’ and ‘Public Orders’ vests only in the State government headed by the Chief Minister.
    • The executive power of the Union does not extend to any of the matters which come within the jurisdiction of the Delhi Assembly.
    • The only occasion when the Union Government can overrule the decision of the State government is when the Lt. Governor refers a matter to the President under the proviso to clause (4).

    Consider the question “What are the parameters laid down by the Supreme Court in the Government of NCT of Delhi vs. Union of India (2018) to avoid the conflict between Lt. Governor and the Delhi Government? Also examine the scope of referring any matter to the consideration of the President by the Lt. Governor.”

    Conclusion

    In the Constitutional scheme adopted for the NCT of Delhi Lt. Governor should not emerge as an adversary having a hostile attitude towards the Council of Ministers of Delhi; rather, he should act as a facilitator.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Economic crisis without culprit

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Nominal GDP

    Mains level: Paper 3- Economic slowdown caused by pandemic

    Contradictions in the present crisis

    • India registered negative economic growth in 1972-73, 1965-66 and 1957-58.
    • All these were drought years.
    • 1957-58 also registered a significant balance of payments (BOP) deterioration and 1979-80 witnessing the second global oil shock following the Iranian Revolution.
    • Farmers harvested a bumper rabi crop last year and public cereal stocks at 94.42 million tonnes as on July 1 were also 2.3 times the required level.
    • There’s no shortage today of food, forex or even savings.
    • Foreign exchange reserves were at an all-time high of $538.19 billion.
    • So, the real GDP decline of 5-10 per cent for 2020-21 would be the country’s first-ever not triggered by an agricultural or a BOP crisis.

    “Western style” demand slowdown in India

    • What India has been going through is a full-fledged recession bereft of consumption and investment demand.
    • Households have cut spending.
    • The same goes with businesses. Many have shut or are operating at a fraction of their capacity and pre-lockdown staff strength.
    • This demand-side uncertainty and the resulting economic contraction is something new to India.
    • Banks are also facing a problem of plenty.
    • While their deposits are up 11.1 per cent, the corresponding credit growth has been just 5.5 per cent.
    • At some point when all this reduced spending and investments leads to a further contraction of incomes, it is bound to reduce savings as well.

    Why the government is not spending?

    • Solution in such a situation is the spending by the government.
    • There are three probable reasons why government isn’t doing that.

    1.Optimism

    • Hope that once the worst of the pandemic is behind us, people will start spending and businesses, too, will spring back to life.
    • However, this assumes the economy wasn’t doing all that badly previously and that the lockdown hasn’t caused too much of permanent damage.
    • The truth is that growth had already slid to 3.9 per cent in 2019-20.

    2.State of Government finances

    • In 2007-08 global financial crisis, the Centre’s fiscal deficit was only 2.5 per cent of GDP, whereas it stood at 4.6 per cent in 2019-20.
    •  The space for a fiscal stimulus, in other words, is very limited compared to that time.

    3.Sustainability of debt

    •  Between 2007-08 and 2019-20, the Centre’s outstanding debt-GDP ratio has come down from 56.9 to 49.25 per cent.
    • So has general government debt, which includes the liabilities of states, from 74.6 to 69.8 per cent.
    • Economists such as Olivier Blanchard have shown that public debts are sustainable provided governments can borrow at rates below nominal GDP growth (i.e. GDP unadjusted for inflation).
    • The nominal GDP averaged 11.1 per cent during  2014-15 to 2018-19.
    • As against this, the weighted average interest rate on Central government securities ruled between 6.97 per cent in 2016-17 and 8.51 per cent in 2014-15.
    • Only with nominal GDP growth falling to 7.2 per cent in 2019-20, and most likely zero this fiscal, has the Blanchard debt sustainability formula come under threat.

    Way forward

    • Government can take lessons from the Vajpayee period when the weighted average cost of Central borrowings more than halved from 12.01 per cent in 1997-98 to 5.71 per cent in 2003-04.
    • In the last four months, yields on 10-year Indian government bonds have softened from 6.5 to 5.9 per cent and even more for states — from 7.9 to 6.4 per cent.
    •  Interest rates will fall further as banks have nobody to lend to.

    Consider the question “Examine how covid induced economic recession is different from the past recessions? What are the options with the government to deal with the situation?” 

    Conclusion

    Governments should borrow and spend. They need worry only about GDP growth, real and nominal.

    Sources: https://indianexpress.com/article/opinion/columns/a-crisis-without-villains-6557602/

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Correcting the agri market

    op-ed snap | Agriculture | Mains Paper 3: Transport & Marketing Of Agricultural Produce

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Agriculture Infrastructure Fund

    Mains level: Paper 3- Measures to achieve better price realisation for agri commodities.

    The article analyses the highlights the importance of post harvest infrastructure for the better price realisation of agri-commodities. It also suggests the two areal which could help the farmers in this regard.

    Purpose of Agriculture Infrastructure Fund

    • Creating post-harvest physical infrastructure is as important as the changes in the legal framework (like the recent ordinances).
    • The recently announced Rs 1 lakh crore Agriculture Infrastructure Fund (AIF) will be used over the next four years.
    • This fund will be used to build post-harvest storage and processing facilities.
    • NABARD will steer this initiative in association with the Ministry of Agriculture and Farmers Welfare, largely anchored at FPOs.
    • The creation of the AIF presumes that there is already large demand for storage facilities and other post harvest infrastructure.

     Reforms in 2 areas which could help farmers get better price realisation

    1) Negotiable warehouse receipt

    • More and better storage facilities can help farmers avoid distress sellingimmediately after the harvest.
    • But small farmers cannot hold stocks for long as they have urgent cash needs to meet family expenditures.
    • Therefore, the value of the storage facilities at the FPO level could be enhanced by a negotiable warehouse receipt system.
    • FPOs can give an advance to farmers, say 75-80 per cent of the value of their produce at the current market price.

    How NABARD can play an important role

    • Since NABARD is also responsible for the creation of 10,000 more FPOs, it can create a package that will help these outfits realise better prices
    • FPOs will need large working capital to give advances to farmers against their produce as collateral.
    • NABARD can ensure that FPOs get their working capital at interest rates of 4 to 7 per cent.
    • Currently, most FPOs get capital from microfinance institutions at rates ranging from 18-22 per cent per annum which is not economically viable unless the off-season prices are substantially higher than the prices at harvest time.

    2)Improving Agri-futures markets

    • A vibrant futures market is a standard way of reducing risks in a market economy.
    • Several countries — be it China or the US — have agri-futures markets that are multiple times the size of those in India.

    Way forward

    • 1) NABARD  should devise a compulsory module that trains FPOs to use the negotiable warehouse receipt system and navigate the realm of agri-futures to hedge their market risks.
    • 2) Government agencies dealing in commodity markets — the FCI, NAFED, State Trading Corporation (STC) — should increase their participation in agri-futures.
    • That is how China deepened its agri-futures markets.
    • 3) The banks that give loans to FPOs and traders should also participate in commodity futures as “re-insurers” for the healthy growth of agri-markets.
    • 4)  Government policy has to be more stable and market friendly.
    • In the past, it has been too restrictive and unpredictable.

    Consider the question “Creating post-harvest physical infrastructure is as important as the changes in the legal framework. In light of this, highlight the importance of recently announced Agriculture Infrastructure Fund and suggest the measures to increase the price realisation of agri-products by farmers.” 

    Conclusion

    India needs to not only spatially integrate its agri-markets (one nation, one market) but also integrate them temporally — spot and futures markets have to converge. Only then will Indian farmers realise the best price for their produce and hedge market risks.

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  • Citizenship and Related Issues

    Census 2021 and the long-pending reforms

    op-ed snap | Governance | Mains Paper 1: Population & Associated Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Census of India

    Mains level: Need for reforms in Census and Surveying

    • In all likelihood, the February 2021 Census will have to be rescheduled to ensure comparability with earlier censuses.
    • This will also affect the National Sample Surveys and others that use the census as the sampling frame.
    • The delay can, however, be used to introduce much-needed reforms to this gigantic exercise whose roots go back to the late 19th century.

    Try this question for mains:

    Q.The Census of India needs a basic overhaul beyond its procedural digitization. Critically analyse.

    Background: Census of India

    • The decennial Census of India has been conducted 15 times, as of 2011.
    • While it has been undertaken every 10 years, beginning in 1872 under British Viceroy Lord Mayo, the first complete census was taken in 1881.
    • Post-1949, it has been conducted by the Registrar General and Census Commissioner of India under the Ministry of Home Affairs, Government of India.
    • All the censuses since 1951 were conducted under the 1948 Census of India Act.
    • The last census was held in 2011, whilst the next will be held in 2021.

    Census 2021

    • The Census 2021 will be conducted in 18 languages out of the 22 scheduled languages (under 8th schedule) and English, while Census 2011 was in 16 of the 22 scheduled languages declared at that time.
    • It also will introduce a code directory to streamline the process
    • The option of “Other” under the gender category will be changed to “Third Gender”.
    • There were roughly 5 lakh people under “other” category in 2011.
    • For the first time in the 140 year history of the census in India, data is proposed to be collected through a mobile app by enumerators and they will receive an additional payment as an incentive.
    • The Census data would be available by the year 2024-25 as the entire process would be conducted digitally and data crunching would be quicker.

    Issues with the Census

    (1) Data quality issues

    • The past four decades have seen a decline in the quality of data and growing delays in its release despite technological innovations.
    • The use of census data in delimitation and federal redistribution has been questioned on grounds of poor quality, while the Covid-19 pandemic revealed the obsolete and poor quality of data on internal migration.

    (2) No major reforms

    • The legal foundation of the census has remained largely unchanged since newly independent India enacted permanent census legislation in 1948.
    • Despite sustained problems, the census has not seen any major reform after 1994 when both the Census Act, 1948 and Census Rules, 1990 were amended.

    (3) Old methods and questionnaire

    • The methodological core – extended de facto (synchronous) canvasser-based enumeration – too has remained intact even though the length and layout of schedules changed quite a bit.
    • The Household Schedule, for instance, grew with the footprint of the state, from 14 questions in 1951 to 29 questions in 2011.

    (4) Workforce issues

    • Data collection has not kept pace with improvements in data processing technology due to the lack of motivated and adequately trained enumerators.
    • Given the high salaries of school teachers, the modest honorarium paid for census work does not cover the opportunity cost of conducting the door-to-door enumeration.

    Understand the ‘purpose’ of the census

    Reforms should begin with the design of schedules based on a clear understanding of two essential functions of the census:

    (a) Resource allocations

    • First, census facilitates the rule-based distribution of power and resources through constitutionally mandated redistribution of taxes, delimitation of electoral constituencies and affirmative action policies.
    • It is also used in routine policy-making across tiers of government.

    (b) Population projections

    • Second, census serves as the sampling frame for surveys and is also the basis of population projections.
    • Other routine policies require distribution of the headcount by households, marital status, age, sex, literacy, migrant status, and mother tongue.
    • Put together, these variables are sufficient for choosing representative samples for surveys.

    What can be done?

    1.Cut the questions

    • Nearly half of the ‘Houselisting and Housing Schedule’ of the census is devoted to questions on household amenities and assets.
    • These questions can be dropped because the information can be more appropriately collected through sample surveys and administrative statistics.

    Why put fewer questions?

    • Cutting down the length of unwieldy schedules has several advantages.
    • First, it will improve data quality by reducing the workload of enumerators.
    • Second, it will also free up senior census officials and help revive the earlier tradition of producing detailed administrative and other reports crucial for understanding the context of data.
    • Third, shorter schedules will seem less invasive and assure respondents uncomfortable with sharing too many details.
    • Fourth, it will cut down processing time and help in reducing delays in the release of data.

    2.Dealing with data manipulation

    • There is poor accounting of migrants that distorts estimates of urbanisation as well as the inter-state distribution of the population.
    • There exists grassroots manipulation of data-driven by political and economic considerations.
    • There is a need to demystify census operations and build trust in the impartiality of the exercise, better scrutiny of electoral records and welfare schemes to weed out bogus beneficiaries.

    Conclusion

    • These reforms are essential to ensure that the census exercise is able to fulfil its constitutional, policy and statistical obligations and also clear the ground for debates on the future of census in the digital era.

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  • Foreign Policy Watch: India-United States

    Strategic autonomy in foreign policy

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Strategic autonomy and alignment with the U.S.

    India has been maintaining strategic autonomy in its foreign policy since Independence. But the end of Cold War and growing closeness towards the U.S. raises concerns. This article addresses this issue.

    India’s foreign policy: characterised by autonomy

    • India has historically prided itself as an independent developing country which does not take orders from or succumb to pressure from great powers.
    • Indian maintained this stance in its foreign policy when the world order was bipolar from 1947 to 1991, dominated by the U.S. and Russia.
    • Also, when the world was unipolar from 1991 to 2008, dominated by the U.S.
    • Or when it is multipolar as at the present times.
    • The need for autonomy in making foreign policy choices has remained constant.

    Flexibility in foreign policy

    • However, strategic autonomy has often been adjusted in India’s history as per the changing milieu.
    • During the 1962 war with China, Prime Minister Nehru, had to appeal to the U.S. for emergency military aid.
    • In the build-up to the 1971 war with Pakistan, Prime Minister Indira Gandhi had to enter a Treaty of Peace, Friendship and Cooperation with the Soviet Union to ward off both China and the U.S.
    • And in Kargil in 1999, India welcomed a direct intervention by the U.S. to force Pakistan to back down.
    • In all the above examples, India did not become any less autonomous when geopolitical circumstances compelled it to enter into de facto alliance-like cooperation with major powers.
    • Rather, India secured its freedom, sovereignty and territorial integrity by manoeuvering the great power equations and playing the realpolitik game.

    Concerns over India’s growing closeness to the U.S.

    • As India is facing China’s growing aggression along the LAC, Non-alignment 2.0 with China and the U.S. makes little sense.
    • Fears that proximity to the U.S. will lead to loss of India’s strategic autonomy are overblown.
    • Because independent India has never been subordinated to a foreign hegemon.

    What should be India’s strategy

    • In the threat environment marked by a pushy China, India should aim to have both- American support and stay as an independent power centre by cooperation with middle powers in Asia and around the world.
    • For India complete dependence on the U.S. to counter China would be an error.
    • Such complete dependence would be detrimental to India’s national interest such as its ties with Iran and Russia and efforts to speed up indigenous defence modernisation.
    • A wide and diverse range of strategic partners, including the U.S. is the only viable diplomatic way forward in the current emerging multipolar world order.

    Consider the question “Does India’s close alignment with the U.S. harms its strategic autonomy? Suggest the strategy to balance India’s security concerns and maintaining strategic autonomy.”

    Conclusion

    We are free and self-reliant not through isolation or alliance with one great power, but only in variable combinations with several like-minded partners. India is familiar with the phrase ‘multi-vector’ foreign policy. It is time to maximise its potential.

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  • Judicial Reforms

    Judiciary and the challenges ahead

    op-ed snap | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much.

    Mains level: Paper 2- Role of judiciary in democracy and challenges it faces

    The article analyses the role of the judiciary in democracy and the challenges it has been facing.

    Challenges to democracy

    • Growing lack of faith among many Indians in the functioning of the Supreme Court (SC).
    • The politicisation of the civil service and the police.
    • The creation of a cult of personality
    • The intimidation of the media.
    • The use of tax and investigative agencies to harass and intimidate independent voices.
    • The refusal to do away with repressive colonial-era laws and instead the desire to strengthen them.
    • The undermining of Indian federalism by the steady whittling down of the powers of the states by the Centre.

    Role and challenges judiciary faces

    • In recent years the Supreme Court has done little to stop or stem the degradation of democracy.
    • Some examples: Court’s refusal to strike down laws like UAPA that should have no place in a constitutional democracy.
    • Its unconscionable delay in hearing major cases.
    • The COVID-19 crisis has accelerated trend towards authoritarianism and the centralisation of power.
    • But the hearings and orders of the past few months show, the Supreme Court seems unable or unwilling to check these ominous trends.
    • The failure of the SC is in part a failure of leadership.
    • One chief justice has accepted a Governorship immediately on retirement, and another has accepted a Rajya Sabha seat.
    • Powers of the Master of the Roster are imperfectly defined, and can lead themselves to widespread misuse by the incumbent.

    Consider the question “Examine the role of the judiciary as the guardian of the Constitution. What are the challenges judiciary facing the judiciary in recent times?”

    Conclusion

    Time has come for all the serving justices in the highest court of the land to think seriously about the ever-increasing gap between their calling as defined by the Constitution, and the direction the Court is now taking.

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  • Making sense of population growth of India

    op-ed snap | Governance | Mains Paper 1: Population & Associated Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: TFR

    Mains level: Paper 1- Declining TFR in India

    The article analyses and explains the declining trend in India’s total fertility rate. The aspirational revolution in the parents explains such decline. 

    What the projections say

    • A new study was published in The Lancet, and prepared by the Seattle-based Institute for Health Metrics and Evaluation (IHME).
    • It argues that while India is destined to be the largest country in the world, its population will peak by mid-century.
    • And as the 21st century closes, its ultimate population will be far smaller than anyone could have anticipated, about 1.09 billion instead of approximately 1.35 billion today.
    • It could even be as low as 724 million, the study projects.
    • Until 2050, the IHME projections are almost identical to widely-used United Nations projections.
    •  It is only in the second half of the century that the two projections diverge with the UN predicting a population of 1.45 billion by 2100, and the IHME, 1.09 billion.

    Present trends in India’s fertility rate

    •  In the 1950s, India’s Total fertility rate (TFR) was nearly six children per woman; today it is 2.2.
    •  Between 1992 and 2015, it had fallen by 35% from 3.4 to 2.2.
    • It is even below the replacement rate in 18 States and Union Territories.

    What explains the trends

    • One might attribute it to the success of the family planning programme.
    • But family planning has long lost its primacy in the Indian policy discourse.
    • Punitive policies include denial of maternity leave for third and subsequent births, limiting benefits of maternity schemes and ineligibility to contest in local body elections for individuals with large families.
    • However, these policies are mostly ignored in practice.

    Aspirational revolution

    •  It seems highly probable that the socioeconomic transformation of India since the 1990s has played an important role.
    • Over the years parents began to rethink their family-building strategies.
    • Smaller families when compared with a bigger family with same income level, invest more money in their children by sending them to private schools and coaching classes.
    • It is not aspirations for self but that for children that seems to drive fertility decline.

    Consider the question “Examine the factors responsible for the declining trends in the total fertility rate for India. What are its implications for country?”

    Conclusion

    Demographic data suggest that the aspirational revolution is already under way. What we need to hasten the fertility decline is to ensure that the health and family welfare system is up to this challenge and provides contraception and sexual and reproductive health services that allow individuals to have only as many children as they want.

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  • Banking Sector Reforms

    RBI revises guidelines for opening Current Accounts

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Current Account

    Mains level: Paper 3- Steps taken by the RBI to stop banking frauds

    The article explains the salience of the RBI’s recent restriction on the opening of current accounts by the companies.

    Context

    • RBI has put restrictions on who can open a current account with which bank.

    What are the restrictions and why it matters

    • A company that has borrowed from a bank cannot open a current account with another bank.
    • It can open a current account with its lending banks under some circumstances.
    • Otherwise such company is encouraged to use the cash credit and overdraft facilities under which it has borrowed.

    Let’s understand why it matters

    • Firms borrow from PSU banks, but open current accounts with private or foreign banks.
    • When transactions move to current account of banks other than the lending bank, it loses visibility on end use of the funds.
    • Basically the PSU bank has no idea where the money has gone.
    • For example, when a firm gets money from its customers, instead of parking it with the lending bank it puts it in the current account with another bank.
    • The lending bank has no way of knowing if the loan is going bad wilfully or otherwise.

    Why private banks may oppose the move

    • Easy revenue source has got blocked.
    • They can, of course, start lending to firms to retain this business but that would mean taking risk.
    • It would be far safer to be with retail customers who have neither power nor lawyers to defend them against sharp banking practices.

    Why it matters to bank customers

    • Vanishing money raises the cost of funds to the bank and results in higher lending rates and lower deposit rates for us.
    • For taxpayers, it means regular use of our funds to recapitalize the banking system that periodically goes bankrupt due to loans gone bad.
    • So, an overall tightening of the system is great news.

    Conclusion

    For too long have the citizens been punished with greater scrutiny, tighter rules, higher costs and fewer benefits as compared to the suits. We should let the banks hand-wring, but celebrate the closure of each loophole as it happens.

    Back2Basics: What is the current account?

    • A current account is like a savings bank account, but with many facilities for swift and multiple transactions, overdraft facilities and it carries no interest.
    • Banks like to sell these accounts as they enjoy huge floats, or money that just sits with the bank waiting to be used by the depositing firms.

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