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Civilsdaily

Type: Op-ed

  • Towards cleaner air in Delhi

    The article suggests the three-pronged strategy to deal with the emission from transportation and highlights the importance of coordination at various level to deal with the issue of pollution.

    Anti-pollution campaign in Delhi

    • With air pollution returning to pre-COVID levels, the Delhi administration has launched a major anti-pollution campaign this month.
    • The campaign is focused on cutting the deadly smoke from thermal plants and brick kilns in the National Capital Region as well as on chemical treatment of stubble burning from nearby States.

    Abating emission from transportation

    • Delhi’s long-term solution will depend importantly also on abating emissions from transportation.
    • Delhi needs a 65% reduction to meet the national standards for PM2.5.
    • Vehicles, including trucks and two-wheelers, contribute 20%-40% of the PM2.5 concentrations.
    • Tackling vehicle emissions would be one part of the agenda, as in comparable situations in Bangkok, Beijing, and Mexico City.

    Three-part action to combat emissions from transportation

    • A three-part action comprises emissions standards, public transport, and electric vehicles.

    1) Stricter enforcement of emission controls

    • Two-wheelers and three-wheelers were as important as cars and lorries in Beijing’s experience.
    • Bangkok ramped up inspection and maintenance to cut emissions.
    • The first order of business is to implement the national standards.

    2) Strengthening public transport

    • Bus Rapid Transit (BRT)  around the world show how the sizeable investment cost is more than offset by the benefits, and that financing pays off.
    • Delhi has lessons from its BRT experience in designating better BRT lanes, improving the ticketing system and synchronising with the Metro.
    • The Supreme Court’s ruling to increase Delhi’s bus fleet and align it with the Metro network must be carried out.
    • The ‘odd-even’ number plate policy can help, but the system should reduce exemptions, allow a longer implementation period, and complement it with other measures.

    3) Adoption of electric vehicle: A long term solution

    •  Subsidies and investment will be needed to ensure that EVs are used to a meaningful scale.
    • The Delhi government’s three-year policy aims to make EVs account for a quarter of the new vehicles registered in the capital by 2024.
    • EVs will gain from purchase incentives, scrappage benefits on older vehicles, loans at favourable interest and a waiver of road taxes.

    Need for coordination at various level

    • Transport solutions need to be one part of pollution abatement that includes industry and agriculture.
    • Delhi’s own actions will not work if the pollution from neighbouring States is not addressed head on.
    • Technical solutions need to be underpinned by coordination and transparency across Central, State, and local governments.
    • Public opinion matters.
    • Citizen participation and the media are vital for sharing the message on pollution and health, using data such as those from the Central Pollution Control Board.

    Conclusion

    • It is a matter of prioritising people’s health and a brighter future. Once the pandemic is over, Delhi must not stumble into yet another public health emergency. The time to act is now.

  • Economic recovery and its discontents

    The article highlights the measures taken by the RBI in the recent MPC meeting to assure the buyers of the Government bonds and ensuring the policy rate transmission.

    Dealing with the rate transmission issue and why it matters

    • The gap between the repo rate and the average lending rate of banks is at a record high.
    • So, the RBI and the MPC focused on improving rate transmission.
    • This gap can be broken up into two parts:
    • The first is the gap between the RBI-set repo rate and the rate at which the government of India borrows (the GSec yield).
    • It is also called the “term premium” can be influenced by the RBI’s actions.
    • The second is the gap between the GSec yield and the rate at which individuals or private firms borrow.
    • This gap reflects risk aversion in the financial system and a lack of capacity.
    • The RBI has avoided directly influencing the term premium, perhaps to maintain its credibility and independence, staying clear of accusations that it is financing the government’s fiscal deficit.
    • However, unless the rate at which the government borrows comes down borrowing costs for the whole economy will stay elevated.

    Challenge of Balance-of-Payment surplus (i.e. excess dollars)

    • Over the past few months, the country’s foreign currency reserves have been growing at an unprecedented rapid pace.
    • This means that India is getting far more dollars than it needs. Three factors are responsible for this.
    • 1) Some short-term factors responsible are weak imports and a faster normalisation of exports.
    • 2) There have also been structural shifts in India’s economic policy which point to a persistent BoP surplus.
    • In addition to low energy prices, policies supporting Atmanirbhar Bharat mean lower imports and the push towards making India a participant in global value chains mean higher exports.
    • 3) At the same time, India’s capital account is being opened up: The special-category government of India bonds, for example.

    Why BoP surplus is opportunity

    • When the excess dollar inflows turn into a deluge, as they have over the past six months, the supply of rupees in the domestic economy also becomes excessive.
    • If the RBI can direct this surplus into government bonds, it can maintain its independence and credibility, and at the same time achieve its target of rate transmission.

    Measures by the RBI to assure the bond market

    • The buyers of government bonds need to feel reassured of not getting hurt by the volatility in bond prices.
    • When bond prices rise, the yields fall, and vice versa.
    • Banks parking trillions of rupees with the RBI at 3.35 per cent overnight would earn nearly 6 per cent if they bought government bonds.
    • That they did not was because they were afraid of the bond prices falling, which would offset the gains from higher rates.
    • The increase in the Hold-To-Maturity limits by the RBI  by one year to March 2022, has assured the banks that they need not fear booking interim losses if bond prices are volatile.
    • The announcement that the RBI would purchase state and central government bonds on the market (even if in small sizes) would provide further comfort.
    • The change in assessment of inflation should help buyers of government bonds take the risk.
    • Banks or other bond investors that refrained from purchasing government bonds because they felt the RBI would increase interest rates at some point to comply with its legal mandate, would be reassured by this clear communication.
    • The targeted refinancing operations (TLTRO) should help bring down borrowing rates in the targeted industries.

    Conclusion

    Economic challenges may persist for the foreseeable future. The economic scars of the last six months are likely to take time to heal. The RBI and the MPC, which have been proactive, creative and accommodative so far, may have to stay so for a while longer.

  • Issues with the MSP in the age of surplus production

    The author analyses the inefficiencies in the MSP regime while comparing it with the sugar sector and the milk sector. The recent agri-reform in the opinion of the author could help to make the Indian agriculture more efficient.

    MSP system Vs. Market-driven system

    • MSP regime was the creation of the era of scarcity in the mid-1960s.
    • Indian agriculture has, since then, turned the corner from scarcity to surplus.
    • In a surplus economy, unless we make agriculture demand-driven, the MSP route can spell financial disaster.
    • This transition is about changing the pricing mix — how much of it should be state-supported and how much market-driven.
    • The new laws are trying to increase the relative role of markets without dismantling the MSP system.
    • Currently, no system is perfect, be it the one based on MSP or that led by the markets, but the MSP system is much more costly and inefficient.
    • The market-led system will be more sustainable provided we can “get the markets right”.

    Issues with the MSP

    • A perusal of the MSP dominated system of rice and wheat shows that the stocks with the government are way above the buffer stock norms.
    • The economic cost (to FCI) of procured rice comes to about Rs 37/kg and that of wheat is around Rs 27/kg.
    • No wonder, market prices of rice and wheat are much lower than the economic cost incurred by the FCI.
    • So, grain stocks with the FCI cannot be exported without a subsidy[i.e. export below the cost], which invites WTO’s objections.
    • The FCI’s burden is touching Rs 3 lakh crore which is not reflected in the Central budget as the FCI is asked to borrow more and more.
    • The FCI can reduce costs if it uses policy instruments like “put options”.

    2 Lessons: from sugarcane and milk pricing

    1) Populism resulted in making sugar industry globally non-competitive

    • In the case of sugarcane, the government announces a “fair and remunerative price” (FRP) [not MSP]to be paid by sugar factories [not paid by the Government].
    • While some states like Uttar Pradesh announces its own “state advised price” (SAP).
    • The sheer populism of SAP has resulted in cane arrears amounting to more than Rs 8,000 crore, with large surpluses of sugar that can’t be exported.
    • This sector has, consequently, become globally non-competitive.
    • Unless sugarcane pricing follows the C Rangarajan Committee’s recommendations the problems of the sugar sector will not go away.

    2) Success story of milk sector

    • In the case of milk co-operatives, pricing is done by the company in consultation with milk federations.
    • It is more in the nature of a contract price.
    • It competes with private companies, be it Nestle, Hatsun or Schreiber Dynamix dairies.
    • The milk sector has been growing at a rate two to three times higher than rice, wheat and sugarcane.
    • Today, India is the largest producer of milk — 187 million tonnes annually.

    So, how the recent reforms will help the farmers

    •  As a result of changes in farm laws in the next three to five years companies will be encouraged to build efficient supply lines somewhat on the lines of milk.
    • These supply lines — be it with farmers producer organisations (FPOs) or through aggregators — will, of course, be created in states where these companies find the right investment climate.
    • These companies will help raise productivity, similar to what has happened in the poultry sector.
    • Milk and poultry don’t have MSP and farmers do not have to go through the mandi system paying high commissions, market fees and cess.

    Conclusion

    The pricing system has its limits in raising farmers’ incomes. More sustainable solutions lie in augmenting productivity, diversifying to high-value crops, and shifting people out of agriculture to high productivity jobs elsewhere, the recent reforms are the steps in this direction.

    Back2Basic: What is MSP

    • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
    • The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • The minimum support prices are a guarantee price for their produce from the Government.
    • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
    • In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price.

    What are ‘put options’

    • Put options give holders of the option the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.
    • Put options are available on a wide range of assets, including stocks, indexes, commodities, and currencies.
    • Put option prices are impacted by changes in the price of the underlying asset, the option strike price, time decay, interest rates, and volatility.
    • Put options increase in value as the underlying asset falls in price, as volatility of the underlying asset price increases, and as interest rates decline.
    • They lose value as the underlying asset increases in price, as volatility of the underlying asset price decreases, as interest rates rise, and as the time to expiration nears.

     

  • Redefining cities

    The article the need for liberal and realistic definition of the ‘urban’ area in the next Census and mention the implications of such change.

    2 ways to define urban areas

    1) Statutory town

    • These towns are defined by state governments and place India’s urbanisation rate at 26.7%.
    • A statutory town includes all places with a municipality, corporation, cantonment board or notified town area committee.

    2) Census-based criteria

    • Census adopts three criteria to define what is urban.
    • The three criteria are:
    • i) a minimum population of 5,000;
    • ii) at least 75% of the male main working population engaged in non-agricultural pursuits, and
    • iii) a density of population of at least 400 persons per sq km
    • This, coupled with statutory towns, pegs India’s urbanisation rate at 31%.
    • Total number of towns (state and census) stands at 7,933, together constituting a 377-mn population.

    Why there is a need for changing the definition of ‘urban’

    • There is growing evidence—mostly from satellite imagery—that India is way more urban than the 2011 Census estimate.
    • This is quite plausible because there is a large sum of money allocated for rural development, and it is in the interest of state governments to under-represent urbanisation.
    • Besides, the Census’s stringent definition was first carved out in 1961 which do not reflect the realities of the 21st century.
    • India won’t be alone in changing these definitions for Census 2021.
    • Many countries, such as China, Iran, the UK, among others, have changed the definition of ‘urban’ from one census to another.

    Getting the right picture of urbanisation

    •  A more liberal and realistic definition in the upcoming census will present the actual picture of urbanisation.
    • For instance, if we just use the population density criteria like 37 other countries, with the 400 people per sq km threshold, we will add around 500 mn people to the urban share of the population.
    • This pegs the urbanisation rate at over 70%!

    What will be its implications?

    • First, the budgetary allocation will reflect the reality and scales will balance between rural and urban areas.
    • Second, the urban areas will not be governed through rural governance structures of Panchayati Raj Institutions.
    • Third basic urban infrastructure like sewerage networks, fire services, building regulations, high-density housing, transit-oriented development, piped drinking water supply.
    • Fourth, these newly defined urban areas could act as a new source of revenue for funding local infrastructure development.
    • This would ease pressure on state finances.
    • Lastly, the rethink of urban definition would have an impact on the regional and national economy.
    • These newly defined urban areas will open them to new infrastructure such as railway lines, discom services, highway connectivity, creation of higher education institutes which will together increase the connectivity and resource capability at the local level.
    • This will not only boost the local economy but also ease pressure on bigger cities and help in cluster level development.

    Conclusion

    A rethink of urban definition in Census 2021, particularly with some degrowth in urban areas due to Covid, will bode well for India for coming decades in more ways than one.

    Source:-

    https://www.financialexpress.com/opinion/redefining-cities-a-new-urban-consensus/2102154/

  • Assisted Reproductive Technology Bill needs a thorough review

    There are several issues with the Assisted Reproductive Technology Bill and these issues need consideration before the passage of the Bill.

    What the Bill aims to achieve

    • Union Health Minister introduced the Assisted Reproductive Technology (Regulation) Bill, 2020 (Bill) in the Lok Sabha.
    • Its aim is to regulate ART banks and clinics, allow safe and ethical practice of ARTs and protect women and children from exploitation.
    • The Bill was introduced to supplement the Surrogacy (Regulation) Bill, 2019 (SRB), which awaits consideration by the Rajya Sabha after review by two parliamentary committees.

    Concerns with the Bill

    1)  Exclusion in the access of ART

    • .The Bill allows for a married heterosexual couple and a woman above the age of marriage to use ARTs.
    • It excludes single men, cohabiting heterosexual couples and LGBTQI individuals and couples from accessing ARTs.
    • This violates Article 14 of the Constitution and the right to privacy jurisprudence of Puttaswamy, where the Supreme Court held that “ the liberty of procreation, the choice of a family life” concerned all individuals irrespective of their social status and were aspects of privacy.
    • In Navtej Johar case, Justice Chandrachud exhorted the state to take positive steps for equal protection for same-sex couples.
    • Unlike the SRB, there is no prohibition on foreign citizens accessing ARTs.
    • Foreigners can access ART but not Indian citizens in loving relationships.
    • This fails to reflect the true spirit of the Constitution.

    2) Consent

    • The ART Bill does little to protect the egg donor.
    • Harvesting of eggs is an invasive process which, if performed incorrectly, can result in death.
    • The Bill requires an egg donor’s written consent but does not provide for her counselling or the ability to withdraw her consent before or during the procedure.
    • She receives no compensation or reimbursement of expenses for loss of salary, time and effort.
    • Failing to pay for bodily services constitutes unfree labour, which is prohibited by Article 23 of the Constitution.
    • The commissioning parties only need to obtain an insurance policy in her name for medical complications or death; no amount or duration is specified.
    • The egg donor’s interests are subordinated in a Bill proposed in her name.
    • The Bill restricts egg donation to a married woman with a child (at least three years old).

    3) Threat of eugenics

    • The Bill requires pre-implantation genetic testing.
    • If the embryo suffers from “pre-existing, heritable, life-threatening or genetic diseases”, it can be donated for research with the commissioning parties’ permission.
    • These disorders need specification or the Bill risks promoting an impermissible programme of eugenics.

    4) Overlap with Surrogacy Regulation

    • There is considerable overlap between ART and SRB sectors. Yet the Bills do not work in tandem.
    • Core ART processes are left undefined; several of these are defined in the SRB.
    • Definitions of commissioning “couple”, “infertility”, “ART clinics” and “banks” need to be synchronised between the Bills.
    • A single woman cannot commission surrogacy but can access ART.
    • The Bill designates surrogacy boards under the SRB to function as advisory bodies for ART, which is desirable.
    • However, both Bills set up multiple bodies for registration which will result in duplication or lack of regulation (e.g. surrogacy clinic is not required to report surrogacy to National Registry).
    • Also, the same offending behaviours under both Bills are punished differently + punishments under the SRB are greater.
    • Offences under the Bill are bailable but not under the SRB.
    • Finally, records have to be maintained for 10 years under the Bill but for 25 years under the SRB.
    • The same actions taken by a surrogacy clinic and ART clinic  attract varied regulation.

    Other concerns

    • Children born from ART do not have the right to know their parentage, which is crucial to their best interests and protected under previous drafts.
    • There is no distinction between ART banks and ART clinics, given that gamete donation is not compensated, economically viability of ART Banks raises a question.
    • In previous drafts, gametes could not be gifted between known friends and relatives if this is not changed, gamete shortage is likely.
    •  The Bill’s prohibition on the sale, transfer, or use of gametes and embryos is poorly worded and will confuse foreign and domestic parents relying on donated gametes.
    • Unusually, the Bill requires all bodies to be bound by the directions of central and state governments in the national interest, friendly relations with foreign states, public order, decency or morality — being broadly phrased, it undermines their independence.

    Way forward

    • The Bill to maintain a grievance cell but clinics must instead have ethics committees.
    • Mandated counselling services should also be independent of the clinic.
    • The poor enforcement of the PCPNDT Act, 1994, demonstrates that enhanced punishments do not secure compliance — lawyers and judges also lack medical expertise.
    • Patients already sue fertility clinics in consumer redressal fora, which is preferable to criminal courts.

    Conclusion

    The Bill raises several constitutional, medico-legal, ethical and regulatory concerns, affecting millions and must be thoroughly reviewed before passage.

  • Reviving the private investment in infrastructure

    Declining private investment in the infrastructure needs policy overhaul. The article suggests the changes in the policy and approach on the part of the government to achieve the sustainable 40 per cent private investment in the infrastructure. 

    Declining private investment in infrastructure

    Currently, private financing into the infrastructure sector has declined to around 20 per cent of the total funding.

    Reasons for the decline are-

    • 1) the crisis in the non-banking finance sector.
    • 2) the financial challenges faced by infrastructure companies.
    • 3) the inadequately developed Indian market for infrastructure financing.
    • The Economic Survey 2017-18 has assessed India’s infrastructure financing needs at $4.5 trillion by 2040.
    • Reviving private investment flows into infrastructure to around 40 per cent will be key to attaining this threshold.

    Actions need to be taken to revive the private investment in infrastructure

    • The Vijay Kelkar committee had put out a balanced report in 2015 on overhauling the PPP ecosystem, including governance reform, institutional redesign, and capacity-building.

    Ramping up private investments in infrastructure will need action on two fronts:

    • 1) Refreshing institutions and policies for channelling financing.
    • 2) Providing a stable, durable, and empowering ecosystem for private players to partner with government entities.

    1) Institutions and policies for channelling financing

    • Due to long-duration profitability cycles of infrastructure projects, successful PPP  requires stable revenue flow assurances and a settled ecosystem to investors over long periods.
    • This could be achieved means of policy stability, assurances possibly secured by law.
    • PPP contracts also need to provide for mid-course corrections to factor in uncertainties including utilisation patterns, as well as the creation of competing infra assets.
    • Government partners in PPP arrangements need to ensure that open-ended arrangement that might entail unforeseeable risk are minimised for the private investor, including aspects such as land availability and community acceptance.

    2) Institution and policies for financing

    • There is a need to change the culture and attitude towards the conjoining of government entities and private partners.
    • Kelkar committee has stated that there needs to be an approach of “give and take” and the Government should avoid a purely transactional approach.
    • Government should avoid trying to minimise risk to themselves by passing on uncertain elements in a project — like the land acquisition risk — to the private partner.
    • This attitudinal change can be achieved by amending the Prevention of Corruption Act to encompass modern-day requirements, including factoring in the need for government agents to take calibrated risks while engaging with the private sector.
    • The private partners also need to be incentivised to focus on project outcomes, with guard-rails in place to discourage rent-seeking behaviour.
    • In sum, risk avoidance by the public entity and rent-seeking by the private partner are the twin challenges that need to be carefully addressed.
    • On the regulatory front, a compelling need would be to promulgate a PPP legislation which can provide a robust legal ecosystem and procedural comfort.

    Consider the question “Declining private investment in the infrastructure has several implications for the economy. In ligh of this, examine the factor for such decline and suggest the measures to boost the private investment in the infrastructure.” 

    Conclusion

    After we emerge out of this pandemic, a focus area for public policy has to be the creation of a modern-day, sustainable and resilient infrastructure. . Designing a fresh approach and creating a stable policy environment that provides comfort and incentives to private investors will be key to attaining this goal.

  • Provisions for platform workers in the labour code and issues with them

    The article examines the provision made for the platform workers and the gig workers in the labour codes passed by the Parliament recently and explains the issues with it.

    Context

    • The three new labour codes passed by Parliament recently acknowledge platform and gig workers as new occupational categories in the making.

    Definition issue

    • The specific issues of working in factories, the duration of time needed on a factory floor, and associated issues are recognised as the parameters for defining an ideal worker.
    • The Code on Wages, 2019, tries to expand this idea by using ‘wages’ as the primary definition of who an ‘employee’ is.
    • Yet, the terms ‘gig worker’, ‘platform worker’ and ‘gig economy’ not defined with in connection with their wages.
    • The new Code on Social Security allows a platform worker to be defined by their vulnerability — not their labour, nor the vulnerabilities of platform work.

    Issues with the code

    • Since the laws are prescriptive, what is written within them creates the limits to what rights can be demanded, and how these rights can be demanded.
    • Platform delivery people can claim benefits, but not labour rights.
    • This distinction makes them beneficiaries of State programmes.
    • This does not allow them to go to court to demand better and stable pay, or regulate the algorithms that assign the tasks.
    • This also means that the government or courts cannot pull up platform companies for lapses[ ex. choice of pay, work hours etc].

    Benefits with no guarantee

    • In the Code on Social Security, 2020, platform workers are now eligible for benefits like maternity benefits, life and disability cover, old age protection, provident fund, employment injury benefits, and so on.
    • None of these are secure benefits.
    • This means that from time to time, the Central government can formulate welfare schemes that cover these aspects of personal and work security, but they are not guaranteed.
    • Actualising these benefits will depend on the political will at the Central and State government-levels and how unions elicit political support.
    • The language in the Code is open enough to imply that platform companies can be called upon to contribute either solely or with the government.

    Consider the question “What are the provisions for gig workers and platform workers in the new labour code? What are the issues with the provision?”

    Conclusion

    The ‘platform worker’ identity has the potential to grow in power and scope, but it will be mediated by politicians, election years, rates of under-employment, and large, investment- heavy technology companies that are notorious for not complying with local laws.

  • H-1B visa amid the U.S. elections

    Trump administration’s two moves on the visa could have implication for both  India and corporate America. It needs to be seen whether the situations will remain the same after the Presidential elections in the U.S.

    Context

    • The U.S. President announced a hike in the salaries for those arriving in the U.S. on H-1B or skilled-worker visas.

    Implications for India

    • This hike is expected to cut visa applications by around 33%.
    • Trump administration has in its earlier executive actions banned the issuance of new skilled worker visas and new green cards.
    • India’s export of services to the U.S. is estimated to be at $29.6 billion in 2018, 4.9% more than in 2017, and 134% more than 2008 levels.
    • The U.S. has been issuing 85,000 H-1B visas annually, of which 20,000 are given to graduate students and 65,000 to private sector applicants, approximately 70% of which are granted to Indian nationals.
    • The visa issuance ban, combined with the mandatory salary floor soon to be instituted, will seriously hit U.S. imports of services from India.

    Criticism of the move

    • A federal judge in the Northern District of California blocked the enforcement of the new visa ban, ruling that the President “exceeded his authority” under the U.S. Constitution.
    • Google CEO hit out at the ban, saying, “Immigration has contributed immensely to America’s economic success, making it a global leader in tech, and also Google the company it is today.”

    Consider the question “What makes the H-1B visa important for India? What are the implications of the recent rise in the salary floor by the U.S. for the visa on India?”

    Conclusion

    While the ban and floor limit on salary come in the election milieu, India should prepare for the after election scenario.

  • Tackling the challenge of Big Tech

    The article discusses the threat posed by the spread of misinformation on the internet and suggests the steps to tackle it.

    Warning for India

    • The U.S.’s experience with the Internet should serve as a stark warning to India.
    • Most Americans now get their news from dubious Internet sources.
    • This resulted in hardening of political stances and the acute polarisation of the average American’s viewpoint.
    • For India, the danger is that like the U.S., such extreme polarisation can happen in a few short years.
    • There are anywhere between 500 million and 700 million people are now newly online, almost all from towns and rural areas.

    Use of targeted algorithm

    • Social networks such as Facebook, WhatsApp, and Twitter have become the source of news for the people, but these have no journalistic norms.
    • The spread of the misinformation or news has been greatly enhanced by the highly targeted algorithms that these companies use.
    • They are likely to bombard users with information that serves to reinforce what the algorithm thinks the searcher needs to know.
    • As they familiarise themselves with the Internet, newly online Indians are bound to fall prey to algorithms that social network firms use.

    Steps to control the misinformation on the internet

    • 1) Tech firms are already under fire from all quarters,  nonetheless, we need to act.
    • They are struggling to meet calls to contain the online spread of misinformation and hate speech.
    • 2) Unlike the U.S., India might need to chart its own path by regulating these firm before they proliferate.
    • In the U.S., these issues were not sufficiently legislated for and have existed for over a decade.
    • Free speech is inherent in the Constitution of many democracies, including India’s.
    • This means that new Indian legislation needs to preserve free speech while still applying pressure to make sure that Internet content is filtered for accuracy, and sometimes, plain decency.
    • 3) The third issue is corporate responsibility.
    • Facebook, for instance, has started to address this matter by publishing ‘transparency reports’ and setting up an ‘oversight board’.
    • But we cannot ignore the fact that these numbers reflect judgements that are made behind closed doors.
    • What should be regulatory attempts to influence the transparency are instead being converted into secret corporate processes.
    • We have no way of knowing the extent of biases that may be inherent inside each firm.
    • The fact that their main algorithms target advertising and hyper-personalisation of content makes them further suspect as arbiters of balanced news.
    • This means that those who use social media platforms must pull in another direction to maintain access to a range of sources and views.

    Consider the question “What are the factors responsible for the spread of misinformation on social media and suggest the measures to tackle it.”

    Conclusion

    We need strong intervention now. Else, in addition to the media, which has largely been the responsible fourth estate, we may well witness the creation of an unmanageable fifth estate in the form of Big Tech.

  • Labour code reforms address basic needs

    The article highlights the key provision of the labour code and how it will help in removing the various hurdles faced by the key stakeholders.

    Increase in the threshold for closure/lay-off and its impact

    • The Industrial Relations Code 2020 increased the threshold for retrenchment/closure or lay-off without requiring government approval, from 100 to 300 workers.
    • This will help in addressing the matter of expansion of the firms.
    • In 2014, Rajasthan had increased the threshold of taking prior permission of the government before retrenchment.
    • The reform has helped firms to set up larger operations in Rajasthan, and the same amendment was followed by 15 states.

    Fixed Term Employment(FTE): Ensuring flexibility and tackling exploitation

    • In many jobs employees are required for a few months such as infrastructure projects, textiles and garments, food and agro-processing, etc.
    • However, the contractual employment workforce is quite often exploited with respect to wages, social security, and working conditions as well as welfare facilities.
    • Fixed Term Employment is an intervention to enable the hiring of employees directly instead of hiring through contractors, which will ensure flexibility.
    • For employees, all statutory entitlements and service conditions equivalent to those of a regular employee have now been made applicable.
    • The Code on Industrial Relations also extends the benefit of gratuity even for an FTE contract of one year, which is five years in the case of regular employees.

    Strengthening the formal economy

    • The inclusion of the gig and platform workers in the Social Security Code 2020 is a step towards strengthening the formal economy.
    • The provision for insurance coverage has been extended to plantation workers, and free annual health check-ups and a bipartite safety committee has been introduced for establishments such as factories, mines and plantation sectors in place of hazardous factories.
    • The ESIC and EPFO requirements will now apply to establishments employing less than 10 and 20 workers respectively on a volunteer basis.

    Ensuring female labour force participation

    • Falling women’s workforce participation in India has been a matter of concern for a long time.
    • Female labour force participation is a driver of growth and, therefore, participation rates indicate the potential for a country to grow more rapidly.
    • The new Code ensures the employment of women in night shifts for all types of work.

    Expansions of the provisions for migrant workers

    • The Occupational Health, Safety & Working Conditions Code expands the definition of a migrant worker.
    • The expanded definition includes workers who would be directly employed by the employer besides those employed through a contractor.
    • Also a migrant, who comes on his own to the destination state, can declare himself a migrant worker by registering on an electronic portal.
    • Registration on the portal has been simplified and there is no requirement of any other document except Aadhaar.
    • For de-licencing/de-registration, it is mandated to notify registering officers about the closure of their establishment and certify payment of dues to all employed workers.
    • This will ensure that workers will not be exploited even during the closure of the concerned establishment.

    Other provisions

    • The introduction of a concept of conducting web-based inspections can be seen as an attempt of matching corporate needs in the digital world.
    • The provision for a 14-day notice period before strikes and lockdowns would allow both workers and employers to attempt resolving the issues.
    •  The codes also promote lifelong learning mechanism to match the evolving skill sets required for technology and process changes through the introduction of a reskilling fund.

    Consider the question “What are the various provision added in the three labour code and how it will help revive the economy and tackle barriers in the expansion of firms?”

    Conclusion

    The reform measures address basic needs — to revive the economy and tackle barriers in the expansion of firms. Moreover, they promote the employment of women as well as reskilling of the workforce for the deployment of migrants.