Insights Daily Answer Writing Challenge Day – 66

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QUESTIONS: DAY – 66 (GENERAL STUDIES PAPER II, TopicsThe Freedom Struggle – its various stages; poverty and developmental issues)

  1. “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.”  Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)
  2. “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.”  Critically analyze. (250 Words)

RULES

ARCHIVES

REFERENCES

Question 1

  • Bipan Chandra – Chapter – 26

Question – 2 (just go through introductions)

  • ANKIT

    “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement.

    Congress following a multi track process for freedom, contested in the 1937 provincial elections and formed the government in almost all the provinces. The track record in absolute sense may not evoke regard and praise , however when viewed in contextual framework of existing limitation like discretionary powers of governor, uncooperative administrative behavior , it indeed was a commendable work.

    The main highlight was in the area of civil rights, we see revocation of press gag orders, uplifting ban from prominent nationalist newspapers and introduction of policies guaranteeing freedom of assembly, association and speech. Though many a times activist were also arrested on the charges of sedition for making provocative speeches.

    On development front, the ministries tried to increase investment in agriculture, reduce taxation, increase irrigation network, initiating land reform etc. The limitation factor in this was a reactionary second chamber and low amount of available resources as major appropriation was transferred to armed forces.

    In sphere of worker movement and support to socialistic model, a general sympathetic attitude was present and conciliation was the key as far as possible. However we do see shortfalls like many communist leaders were spied on using CBI , trade unionism still viewed from the scope of law and order problem.

    The biggest achievement of the ministries was the erosion of British hegemony and affirmation of capabilities of Indians in self governance.

    • Vicky..

      No mention of social reforms. Harijan emancipation. No mention about check on police. Political and Economic reforms are also incomplete my friend. Read the chapter again. Many aspects are there which you will come across.

  • One of the best examples of poverty reduction has been the east asian nations’ example. Starting with more or less same quantum of poverty at their times of independence, they invested heavily in their human resources in areas of education, health, better connectivity etc. Now, these countries like japan, korea etc have much developed human resources with a very low incidence of poverty. In contrast to this, India adopted a policy of trickle down effect believing that the economic growth at upper level will trickle down slowly to the bottom half. That india still faces such a large number of poor people esp rural tells a lot about the need to directly invest on human resources by government.

    But that doesnot take away the need for sustained economic growth. More resources arise out of increased economic growth which can be invested judiciously on the rural marginalised people on various fronts. All this needs a stable economic environment. The curse of glaring twin deficits couble with economic volatitily due to side effects of globalisation ties the hands of governments as they have less money wich they can invest on poor. One recent example is NFSO which has been criticized on these very grounds. Here govt. needs to set its priorities right by pruning less prior subsidies like on petroleum. Likewise, inflation hurts the rural poor most and also unstabilises the economic growth. A prudent economic management disincentivizing noncompetitive policies like hoarding becomes essential. Competitive markets help in better service delivery, cost reduction etc whose benefits india is already reaping since liberalisation.

    All of these can be helpful in reducing poverty if the rural poor get a good head start. So, welfare country like india also needs to provide its citizens with cheap food, free education so that the poor can reap the benefits of investments effectively.

    • frinds please review

      • Vicky..

        Public investments has nor been covered. Even the macro-economic framework should be discussed more comprehensively.
        The first paragraph is good and in the correct context, but is not demanded by this question. More focus on economy needs to be given. Your points regarding human resource, educ, health etc are good. But they should have been consolidated with investments and competition , hence saving you words along with fulfilling demand of the question.

        • vicky, the first para covers public investnment only….the second para covers the need for macro econmic stability with respect to poverty alleviation…i have related that to competitive markets also…saw ur answer…not much different…or otherwise plzz elaborate

          • Vicky..

            yes, i have mentioned that your context is correct, read again what intend to say above. I said that if you would have integrated the first para with infrastructure required, like roads, schools, health centres.
            Your content is good, only what i meant was restructuring .(Just an opinion)

      • It’s a good answer. You rightly started answer by presenting global and comparing it with Indian context. Flow is very good. Especially from introduction to next paragraph, thoughts are linked.

        There was scope to comment on ‘Public’ investment in social and physical infra – its relevance/effectiveness when presently talk about PPP is making lot of noise.

        Overall a good answer. You have missed certain things but it’s not affecting overall answer.

  • Asha Goud

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze.

    A: India has two parallel societies functioning i.e. Urban and Rural society. Viewing either of the two in complete isolation would be an unrealistic approach towards achieving overall growth. Therefore it is crucial to appreciate the Rural-Urban linkages in economy and society.

    Since majority population in India lives in rural areas, rural poverty is unacceptable as it leads to wastage of resources. The engine of growth is fuelled by resources, both human and material, from rural areas. An investment in rural areas in terms of both economic and social investment and resultant rural poverty reduction would manifest as beneficial for entire economic growth.

    Even though the Planning Commission data projects a huge reduction in poverty in general and rural poverty in particular, it is widely known that the standard of living, income levels and access to basic necessities is low in rural areas. This leads to multidimensional deprivations and poverty. Therefore social sector investment is crucial in health, education, gender issues and increased participation, for human development.

    Similarly investment in physical infrastructure like roads, power, communication, irrigation results in developing linkage between rural and urban markets and development of rural areas as hubs of growth.

    Policies for ensuring economic stability results in sustained investment and confidence in local economy. The resultant increased demand for labour and resources can be fulfilled from rural areas which are a repository of untapped human and material resources. Similarly policy action for ensuring competitive markets would avoid exploitation of poor. Establishing competitive markets for agricultural inputs and produce would result in remunerative gains to farmers.
    Therefore economic growth can act as an important determinant factor in rural poverty reduction.

    [ I attempted to answer from my understanding of the statement. Though I am not sure if i took the correct approach]

    • I felt it more as rural vs urban(just my opinion) & less as how Broad economic stability, competitive markets, and public investment in physical and social infrastructure contributes to economic growth & poverty reduction

    • Vicky..

      More focus should be on the three parameters given in the question. Only the last paragraph talks about these. Initial paragraphs should be compressed and limited, and more talking on the three parameters had to be done

      • The question does not mention India, so you can take India’s example later in your answer instead of directly starting with its reference.

  • dr NAVEEN

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze. (250 Words)
    Ans
    Poverty is a chronic problem.Two essential conditions require to address the poverty are – one is the person should be productive and the source of income should be sustainable Public investment in social and physical infrastructure are the prerequisites for this
    Rural economy mostly depends on the agricultural activities.Sometimes they produce surplus and sometime they even can not produce requiring for their survival.Sustained income from the agriculture can be possible with the investment in irrigation,electricity,transport and storage facilities.Better connectivity to the urban market not only provide them remunerable prices for their produce but those who do not depend on agriculture,find better markets for their homemade products..
    Poverty removal not only requires material well being but also the improved living standard of the people.Social investment in education,health,drinking water etc would improve their productivity.
    The 11 plan noted the direct relationship bw reduction of poverty and the development of physical and social infrastructure.The steep reduction in rural poverty shows the impact of Govt’s intervention like Bharat Nirman and other schemes like NRLM,NRHM
    Programmes like MGNREGA did not focus on sustained economic growth only providing wage employment would not result into the desired reduction in poverty.In 12 plan MGNREGA 2.0 focuses on creating durable assets shows the importance of sustained economic growth.
    .
    .

    • dr NAVEEN

      plz review friend and insights

    • Vicky..

      Public Investment and the need of rural people has been covered very nicely . But economic stability- inflation, deficits etc which can hamper your imports and foreign investments etc are not discussed. Similarly you have missed out on competitive markets.

    • You should have begun your answer with the role of economic stability and competitive markets in reducing rural poverty and then explained about investing in infrastructure which you have done in he first paragraph.

      Answer is incomplete. But rest of the answer is good.

      • Anny Middha

        Insights sor please review both of my answers. I thought you were busy so i didnt ask earlier

      • dr NAVEEN

        thanx sir

  • 30.09.13
    2)poverty & economic growth
    Poverty reduction & sustained economic growth has been long standing challenge of india & world. Economic stability, competitive market & public investment in physical & social infrastructure do offers hope to address them. But same is also not free from questions.

    Broad economic stability is a multidimensional term. It is often dependent on political, social stability apart from economic stability. As in india or USA or other nations, economic stability after independence has sustained economic growth & reduced poverty. The increasing better performance interms of human right,MDGs, HDI & GDP expansion has been reflective of this. The stable economy nurtures both capital generation, & thus employment generation, and savings. This is on one hand promote more innovation & sound practices & on other provide monetary input for better quality of life.

    But this stability’s impact has been seen as not so effective. On financial front, persistence of economic slowdown once in a decade or two asks how it sustains economic growth. The failure to significantly reduce HCR(head count ratio) in poverty in last decade in high growth rate developing nation like india, or presence of poverty in developed countries points to this.

    Competitive market(CM), a term closer to capitalism, has provided the consumer the effective good & service at effective cost. This has led to sound organizational, management & working environment practices.As reflected in India since 1991, due to this the rate of economic growth & rate of decrease in poverty has been coincided with this.

    But this(CM) reduces the state’s role in protecting its weaker child whether it is industry or service or population. The same are necessary for sustained economic growth. The persistent rise in inequality in post feudalistic era of capitalism or in india’s case since 1991 had pushed population into poverty hole.

    Public investment in physical & social infrastructure is routing of public revenue to these sources. India through various welfare scheme & socialistic policy has channeled public investment.These schemes, like MGNREGA,NRLM, Food security act, addresses both problem. But subsidy burden & its economic,administrative & environmental challenge; inefficient use of resources do point negative of such methods.

    Thus, broad economic stability, competitive market, public investment had positive impact on economic growth & poverty. Though negatives are there but experience of reforms & cooperative approach shows they are addressable.

    I m sorry wrt word limit (400 i think)… i just wanted to write it freely & for freshness without looking at page or time…..but pls do review this

    • Vicky..

      Raghu, your structuring is good. But content needs to be added. In stability, you have not mentioned inflation, a regressive disease. CAD, FD, Exchange rate etc can hamper your stability and foreign investments .
      Competitive markets looks like more of a technical coverage. You should mention about better delivery of services, reduced prices, efficient practices, monopoly curbed etc .
      Public investment is fine, you could have mentioned a the reason for this. This aspect has been best described by Dr. Naveen. Refer to his question.

      • thks vicky for ur comment.
        Yes in Stability i should hv added inflation. I think if i would hv used CAD FD, exchange than answer about contribution of stability to economic growth & poverty could hv been undermined as i had spoked already about slowdowns.
        In Competitive market i hv mentioned all u said-effective goods & service at effective cost.
        In public investment case: tyes i should hv mentioned the reason.

    • Anny Middha

      Raghu n sai please review my answers. Your suggestions ate bery helpful!
      Thank you!

  • Sumeet

    “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement.

    There was a prolonged debate over the participation of Congress in the elections in 1937. While the leaders like Bose and Nehru were opposed to it viewing it as a digression from the cause of Poorna Swaraj, other moderate leaders considered it as an opening of an alternate front in the struggle. Gandhi finally did concede for participation in elections.

    The role of the elected leaders was significant in the sense they they agitated within the constitutional means which were inadvertently laid by the British themselves and could not be repressed. The elected leaders were able to legislate on subjects like debt relief, land tenures and rent arrears. Administrative changes where brought about with the repealing of restrictions on the freedom of press. Many political leaders were released from jail. Lands confiscated during the civil disobedience movement were returned during this period. Further various agrarian and social reforms were introduced at the provincial level. Impetus was given to Khadi production and its use with encouragement to indigenous enterprises.

    To conclude, a lot of constructive work was initiated in this phase. This reinforced the faith of the leaders in the constitutional means. It further prepared a class of legislators who gained experience in legislative matters which was helpful in the post independence era in India.

  • Vicky..

    1. Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)
    Answer:
    The Congress ministries brought tremendous reforms various administrative and legislative areas to empower the masses. Numerous works , whether political, economic or social were conducted. Though some conflicts such as left-right disputes within congress, corruption in ministries, growing mistrust between different factions of society were gathering, but despite these, performance of ministries was impressive.
    Political reforms include curtailing police and defence powers, which conducted atrocities on citizens. Several civil liberties were granted and ensured such as removing ban on political organisations, formation of trade unions, releasing political prisoners, allowing them to express dissent through journals etc. Press and Newspapers were given freedom and hitherto gagging was lifted. Although in some provinces, police was used to suppress strikes but, in most of them such atrocities were taken care of.
    On economic front, massive reforms in form of tenancy rights, security of land, curbing indebtedness and exploitation by landholders etc were provided for Peasants and labourers. For working class, increased wages, legislations such as Industrial Dispute Act, committees such as Textile Enquiry Committee etc were brought. Ministers themselves reduced their salaries, exploitative practices such as Bedakhli and Nazrana etc were banned. Although massive reforms could not be brought out, due to limited powers, resources and time available to the ministries.
    Steps for Social empowerment like banning discrimination of Harijans were brought wholeheartedly. Emancipation of women, backward classes through various reforms and promoting opportunities in various fields were provided. Support to Cottage industries, Khadi manufacture through subsidies and prison reforms were brought. National Planning Committee, formed in 1938 was to bring a framework of development.
    Hence although difficulties present, record of ministries were significant and huge. Despite left-right differences, lack of mandate, resources, limited time, emerging conflicts, etc Congress ministries promoted popular governments.

    • Sham

      Well structure & well written.. you have covered all the aspects brilliantly..

  • Vicky..

    2. “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze. (250 Words)
    Answer:
    Sustained economic growth and a reduction in rural poverty are the soul for the envisioned Inclusive development of the country. Broad economic stability, competitive markets, and public investments are some of the parameters which should be ensured to achieve the twin goals. India also have focussed on them, although different approaches , initially through firm state control and later through a more liberal public-private partnership.
    Macro-economic stability is essential for the overall development of economy. Inflation, directly bites the individuals of the society irrespective of their status has to be regulated. Even after social welfare schemes by government, high inflation can keep large essential services out of the reach of many due to high prices. Other concerns such as fiscal deficit, CAD, Exchange rate, public debt etc should be stable and be efficiently regulated by the state. In the highly globalised world, when foreign investments and foreign exchange required to complement domestic needs can be hampered if these factors are not stable. Such events can lead to burdening government , taking the focus away from welfare and further burdening of citizens through taxes and interconnected economic ills.
    Competitive markets ensure that there is variety of choices for people, controlled prices, no monopoly, and efficient delivery of services. Various competitors ensure such standards thus benefitting consumers. Similarly, in countries where unemployment and poverty are towering concerns, Public investments are extremely crucial. In the era of LPG, both the private and public sector has to contribute towards these deficiencies, which can be either through infrastructure, welfare schemes, free educational and health centres, Corporate social responsibility etc.
    All these are pre-requisite, although not the end of work, for the emancipation of poor through a sustained economic growth and forward path to development of the country.

  • sai

    Rural poverty is influenced by complex and multidimensional factors. Factors like macro economic stability, the competitiveness of markets in which poor participate viz labour, credit markets, investments in health education, sanitation, immunization, skill development, investment in infrastructure related to agriculture growth etc play very important role in rural poverty reduction.

    Macroeconomic stability like inflation, fiscal deficit, CAD etc affect growth and influence all sections of people but they affect the poor most. In times of inflation food security of poor is shown to be reduced and hence incidence of poverty increases. Poor cant easily cope up with the shocks in economic growth either. Evidence shows incidence poverty is higher in times of economic uncertainty.

    Rural poor mainly depend on agriculture, they need labour, agriculture inputs and credit. If the policy making is not appropriate input cost rise and the profitability decreases, which renders them poor. Access to formal credit, subsidy on agriculture inputs can be made available through appropriate policy.

    Healthy and educated workforce reduces poverty. Investment in health, education improves their awareness and also reduces diseases hence their productivity and profitability increases. Sanitation, safe drinking water, immunization etc can be made available through schemes like NRHM, TSC, National Drinking water mission etc

    Investment in physical infrastructure like connecting roads, electricity, irrigation facilities, watershed management, soil fertility improvement etc are equally important in rising the farm incomes. NREGA, IWMDP, PMGSY are initiatives in that direction.

    Along with high and stable growth, if programmes can be designed in such a way to rise the income of rural poor, rural poverty can be substantially reduced.

    • sai

      @vicky, insights and all please tell me any improvements.

      • Vicky..

        Good Answer Sai. Competitive markets are missing. Rest of the portion is apt and good.

        • sai

          Have I critically analyzed. I always have problem with these directives and never comfortable with them. Can someone please guide me in this.

  • Sumeet

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze.

    A multitude of factors exist which contribute towards a sustained economic growth. Economic growth in turn helps in the reduction of poverty, allowing for the poorest of the poor to lead a meaningful life with dignity beyond a basic animalistic survival.

    Economic stability is paramount for sustained economic growth. It leads to a certain degree of predictability for the investors regarding the economic environment which helps the investors to prioritize their investments. An economic environment with sharp spikes and downturns leads to the investor class becoming cautious due to higher risks involved on account of the unpredictable nature of the markets. The recent stagnation in the Indian economy is an instance of how instability leads to stagnation.
    Competitive markets on the other hand ensure that the best is available to the public at a competitive price. It enhances the transparency of the system and also facilitates innovation in the industry. A non competitive environment breeds monopoly and leads to cronyism. This is detrimental for the public who do not get value for money and widens the economic disparities in the society.

    Besides the role of the private sector, public investments are crucial especially in a developing society. The government needs to facilitate the creation of infrastructure, both physical and social, which helps the poor. Investments in the rural sector where the private investors are apprehensive to invest owing to lower profit margins needs to be stimulated through public investments so that the rural poor are not left out on the path to prosperity.

    While economic growth and competitive markets contribute to a sustained growth, the public investments play a crucial role in poverty alleviation. The first two generate resources for the third. Poverty alleviation in turn contributes to economic growth setting up a cycle in which economic growth contributes to poverty reduction and vice versa.

    • Vicky..

      Brilliant answer Sumeet. Covered each and every thing with justification. In economic stability, role of inflation could also be mentioned.

    • sapthagiri

      best in the lot 🙂

  • AB

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze. (250 Words)

    A: India is mixed economy with an increasing inclination towards market led growth and development. Hence economic stability, competitive markets and public investment in physical and social infrastructure are the pillars of sustained growth and poverty alleviation.

    Broad economic stability is extremely important to retain investor’s (both indigenous and foreign) confidence in the economy. Economic stability implies moderate inflation, currency fluctuation within manageable range. As the state gradullay withdraws from industry, it is important that private sector invests actively leading to employment generation. This will help tap the demographic dividend, spur growth and improve living standards of the mass.

    Competitive markets incentivises innovation and investment to boost productivity. Since 1999, India has adopted a policy of doing away with APMs to ensure transparency in the prices to provide the sectors enough space for growth. However robust regulations to curb malafide practices are also important. Recent decision of CCI slapping penalty on large cement producers for cartelization is a praiseworthy step. Through enhanced productivity and techonological innovation, wages can be increased without feulling inflation and hence reduce poverty.

    Infrastructure, both physical and social, are the foundations which ensure sustained development. While social infrastructure leads to healthy, educated and empowered workforce, physical infrastructure improves the overall incremental output to capital ratio of the economy, hence saving resources.

    Hence poverty alleviation and sustained growth are only natural outcomes of above three factors combined with good governance.

    • AB

      Hi all, Kindly review my answer please.

  • Nikhil D

    q 1. Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)

    The Government of India act, 1935, saw the establishment of provincial government with limited legislative, administrative and financial powers. The congress ministers were well aware of the limited powers, British intentions and time constraint for the provincial government. In spite of several limitations, they were successful in achieving the faith of the masses through various legislative and administrative reforms. It also proved beneficial in further strengthening the national movement.

    Congress ministers adopted a dual strategy – Administrative reforms through legislation and mas political activity outside official arena after assuming powers in provincial government

    Expansion of civil liberties brought by the ministers had the major impact on the masses. A sense of freedom and security developed among them. A wave of optimism for ‘swaraj’ spread among the masses through congress administration.

    The congress vision of inclusion of all the classes (Zamindars, peasants and workers) in freedom struggle was also achieved through introduction of well balanced tenant laws.

    The laws passed by congress for advancement of Harijans and women led the foundation of caste and gender equality. This also proved beneficial in large participation of women during Quit India movement.

    Reducing restrictions on media; Limited use of police; release of political prisoners; economic reforms for upliftment of peasants and workers were some of the significant reforms brought by the congress ministries. These reforms contributed in achieving mass political activity.

    Congress also faced criticism on several grounds. Ministers favoring upper class; repression of mass agitations; ministers blending into British system of administration; bogus membership in congress leading to communal conflicts were major aspects of criticism in congress provincial rule.

    However, in spite of criticism congress was successful achieving all the major pre poll agendas promised to the masses. Striking down the much hyped British belief – ‘Indians are unfit to rule’ was the most important achievement of the congress rule.

    @all: Kindly give your feedback

  • vipul

    1. Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)

    In 1937, congress won the mandate to form in six major provinces of the country. Congress had to play different roles as a governing party in provinces & opposition party at the center. Congress also had the responsibility to bring legal & administrative reform to keep the promises done to people of country. Congress found itself in unique position as it had to play multiple roles while keeping the main objective of freedom struggle of India in mind.
    On Administrative front, congress minister’s approach was of simple living & easy accessibility& civil liberty to people unlike the previous government officials. Several laws of previous provincial governments, curbing the freedom of people were repealed in majority of the provinces. Banned political organization, journals, new papers were allowed to operate freely. Provincial government also released several political prisoners falling under their Jurisdictions. Congress also passed several laws for the advancements of Harizans that allowed them to access to public places. Provincial governments also undertook several rural reconstruction programs
    Shorter duration in power, unsupportive legislative councils and will to maintain the all classes support in freedom struggle limited the scope of introducing the legal reforms by the congress ministries. Still congress ministries implemented several legal reforms like tenancy acts, abolishment of begar (force labor) and grazing fees in the forests, debtors relief acts in many of the provinces etc.. Congress ministries adopted a pro labor stance and implemented Industrial dispute act to adopt the strategy of conciliation & negotiation in place of direct action. Congress also set up a labor inquiry commission to study the conditions of workers & to provide suggestions to improvise it.
    Congress provincial governments had limited legislative power & financial support still they could succeed to implant the successful image of Swaraj in the minds of people of the country and convince them for further struggle for complete freedom.

    2. “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze. (250 Words)
    Economic stability basically means avoiding major variation in economic parameters like inflation, exchange rate, commodity prices in the economy. Economic stability strengthen the investors’ confidence and promotes economic growth. Economic growth creates a conducive environment for Job creation that can help to alleviate the rural poverty. For ex: Poverty declined at a rate of nearly 2 % of annum from 2007-12, a period India witnessed 7-8 % economic growth Economic stability is also needed to maintain the living standards of people. Sudden rise in prices especially food items can push poor in to vulnerable situations. Economic stability gives more freedom to government to spend on welfare schemes of poverty alleviation. But Economic growth followed by unequal distribution of income may further aggravate the rural poverty as well.

    Competitive markets lead companies to adopt more innovative & price effective good/service delivery models. Rural Micro finance, availability of daily use products in sachet to serve the rural poor etc. are some clear example of such innovative models. More efficient production pushes the economic growth forward. As a consumer, rural poor gets lower price advantage on the products of consumption. Competitive market also increases the bargaining power of rural poor as supplier of input or job seeker.

    Public investment in physical infrastructure like irrigation, electricity help, access to credit poor to utilize their resource more efficiently & lead to increase in agriculture output as witnessed in green revolution. Investment in transport, communication etc. connect rural poor to urban area that open up new market for their products & avenues for employment. Public investment in social infrastructure like Education & health helps to build up the human capital that can be utilized in productive sectors of economy to spur the economic growth. Education also helps poor to exercise their right effectively & use their resources of production more efficiently. Public investment in water & sanitation infra keep the poor away from health hazards and rural saving(earlier health expenditures) can be utilized in productive sectors of the economy to support the growth. Due to traditional biases toward women, SC/STs, this section of rural poor still remains at disadvantage to utilize the full potential of public investment in social & physical infrastructure.

  • Anny Middha

    Answer 1
    INC accepted the provincial offices. they were to work under constitution formed by british.

    In short period of 2 year, INC tried its best to keep promises made in congress manifesto within inherent limitations of ministers under foreign rule. firstly, we brought many civil liberties to the populace-all emergency powers were revoked, bans on political org. uplifted, press was comparatively freed, confiscated aims and licenses cancelled were restored and many political prisoners and detains were released. further gandhi asked all ministers to government without military assistance and minimum use of police.

    Nextly, INC,s stance was pro poor and towards agrarian reforms. for instance, industrial disputes act was passed, trade unions strengthened, conciliation machinery to avoid strikes and lockouts, tenancy and land reforms were undertaken. Also social reforms for upliftment of Harijans and women undertook.

    while heading provincial governments, INC was also an opposition to central govt. and also carry on the nationalist struggle. this was the inherent limitation. how could INC maintain law and under and at same time take demonstrations?

    Further provincial govt. had limited power, resources and time. and in the last phase many opportunists joined and there was rampant corruption.

    Leaders were conscious during 1939 but 1937-1939 rule became a part of nationalist struggle due to onslaught of WWII, congress ministries resigned.

    From a long view, Nehru said” looking back—- surrounded them.” the left wing also has same view and INC removed the misconception that indians aren’t fit to rule.

    • Sumeet

      You used “we” in one of the sentences… i believe it was a typo but just wanted to point it out… further since the question explicitly states legislative and administrative reforms, it can be better if you can segregate the answer on similar lines.
      “Nextly” in the third para is not a proper word…
      You can do better in summarizing the answer 🙂

      • You have to work on introduction. The introduction should talk about answer. First two line are indeed part of introduction, but it is incomplete. You should give a thesis statement in the introduction. For example, you may not agree with the statement given in the question, in that case, state this in your introduction. Then defend your thesis in the body of your answer.

        Examiner should be told what your answer is all about. It should be told in the introduction itself. Once you tell him, he looks for its explanation/analysis/examination/commentary in the answer and if he is satisfied, he rewards you with good marks.

        If you don’t tell him in the introduction what is in store for him in your answer, he has to work hard to ‘find’ answer – which he may not like to do.

        • insights, plzz review my answer too…. i earnestly need it

    • sapthagiri

      your ans is really good one. the content is so good. dont get afraid about the comments on your language. their imp are secondary. if possi improve them. you have such a good depth of analysis. .

  • sunayna

    Creation of physical infrastructure and nurturing of social infrastructure, both rural and urban, is a pre-requisite for sustained economic growth.
    Economic stability at micro and macro levels results in lower levels of inflation and a conducive business environment in the country. Inflation hits poor the most and leads to less savings and subsequently, the vicious cycle of less investment, less savings continue. A conducive environment for business leads to healthy competition in the market, which results in a wide choice of products for consumers as observed in post-liberalization period. It also enhances government’s revenues and government can step up public investment.
    Our government has been spending heavily on social programs like MGNREGA, Mid-day meal scheme, Housing programs. The recent Right to Food Act is yet another welcome step in this direction and these programs have been effective despite leakages.
    But, our government has relied on the ‘trickle down’ theory of economic growth, which does not seem to have worked the desirable way. A lot of poverty estimates show that poverty and specially, rural poverty had declined significantly (25.8% in rural areas), but other reports suggest otherwise. This can be partly due to change in the methodology in estimation of poverty.
    Only investment and competitive markets cannot cater to the needs of rural poor. Effective implementation of our policies is needed in a transparent and accountable manner. There is an urgent need to nurture and develop our hitherto untapped social capital in rural areas. This will lead to democratization of economic growth and poor will also be able to enjoy its fruits in form of poverty alleviation.

  • Sham

    Definition of Growth in Indian economic parlance has two objectives – Inclusive(poverty reduction) and Sustainable. Compromise on any one will automatically lead to the doom of another as well. Govt. has crystal clear objectives and well defined means economic stability, market competitiveness and Infrastructure investments to achieve those.
    Macroeconomic fundamentals like growth rate, inflation, currency valuation, industry reforms, twin deficits(CAD & FD) give confidence to the investors and attracts lot of investments and deposits from internal and external investors. Sustainable growth depends largely on economic stability and the confidence of investors. Prime responsibility of govt is to provide that stable environment to the business community.
    Market competitiveness is another indicator for the sustainable growth and saves poor consumers from the notorious intensions of hoarders and cartels. Telecom sector is the quotable example of market competitiveness which has attracted investments and as well as positive affirmations from the consumers because of lowest charges across the globe. MC is important from employment perspective as well in cottage and MSME industry.
    Investments in social and physical infrastructure are like the blood to the arteries and veins of India. Physical infra lie ports, railways, power plants, roads, railways, telecom, mining are the backbone to the growth of any country and human development via education, health and affordable food guarantee provides the required labour force. MGNREGA, SGSY, JNNURM, ICDS, Mid day meal schemes has given the rural poor opportunity to be the part the success story.
    Surely we can conclude that Economic stability, market competitiveness and Social and physical infrastructure are the three ladders to the tough slope of sustainable and inclusive growth.

  • Praveen

    A sustainable and inclusive economic growth can be a cure for the elimination of rural poverty. However, to determine the necessary and sufficient means to achieve this have been the challenge for all the third world countries.
    Investments in physical and social infrastructure, either from public or private would kick start the growth. However, with limited resources at Government’s disposal, PPP has come out as the most probable option going forward. The efficiency of Private along with welfare motive of Pubic Institutions would provide a right mix for percolating the growth into rural areas overcoming the resource constraints of Public institutions.
    Investments in competitive markets only can pass down the benefits from the producer to the customer. It keeps the prices low and increases the access of the needed goods to the rural people. Thus proper regulatory mechanisms can avoid the crony capitalism and also monopolistic trade practices, thus avoiding the exploitation of customers.
    A stable economic environment is very much necessary for the keeping the investor sentiment going. An instable environment characterized by inflation, interest rate fluctuations, policy paralysis due to both internal and external factors, would discourage the investments thus making the growth unsustainable.
    In addition to the above three critical factors, participative decision making, transparency and accountability in both public and corporate governance are also essential. Public spending in capacity building activities keeping long term goals rather than short term election gains are very much essential for a sustainable growth and rural poverty reduction.

    • prerna

      Conclusion is good.

  • dr NAVEEN

    “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)
    Ans
    Congress ruled 6 provinces for 28 months during 1937-1939 under its struggle truce struggle strategy.During this period congress undertook various agrarian,labour,social reforms but it could not transformed the social structure radically,ultimately it had to work under the British constitution.
    The congress ministries were formed under the GOI act,1935. very limited powers were transferred to the provinces and these powers were taken away any time by the colonial power
    The congress govts in the provinces also suffered from the lack of financial resources.A large share of revenue was attributed to the center
    The congress was the forum of all classes.It had a task to organise all classes against the colonial rule.So every legislation and administrative actions had to be implemented in such a manner that minimum class conflict occurred Agrarian and labour reforms were limited because of congress class collaboration approach.
    Agrarian reforms were also limited in the sense that legislative councils the upper chamber were dominated by land lords,moneylenders
    The top congress rank was divided ideally and personally-right and left wing,also some congress leaders got enmeshed in corruption and the hunger of power.
    Despite these innumerable difficulties the rule of congress provided people the atmosphere of fresh breathing ,their mass energy got released.The congress miniseries performed various reforms
    1 civil liberties- lifted the ban on press,various organisations like hindustan sewa dal,confiscated arms were released
    2 Agrarian reforms-reduction in the land rent,tenancy rights,debt relief etc
    3 Social reforms-upliftment of Harijans through education,providing access to public resources,temple,promotion of khadi,indigenous industries,establishment of planning committee .
    4 Extra-parliamentary reforms-mass literacy,peoples movement,
    The congress rule shattered the myth of British that Indians were not fit to rule,this period demonstrated that state power could be used for furthering the ends without being co-opted.

    • dr NAVEEN

      plz review insights and frnds

    • sapthagiri

      worthy answer. see you in mussourie 🙂

  • Anjali

    Congress Working Committee accepted office under 1935 Act, formed govt in six provinces, and in short span of time its ministries achieved so many things which compelled their stern critic Nehru, to praise their achievement.

    In UP, Bihar and Orissa tenancy legislation were passed to provide security of tenure to tenants, reduction in interest on arrears, all illegal exactions were abolished, in Bombay and some provinces confiscated land were returned to land owners. The agrarian legislation of the Congress Ministries improved the status of millions of tenants in zamindari areas.

    They adopted pro labour stance, tried to advance workers interest, in some provinces Labour Enquiry Committees were set up, and recommendations implemented in Bombay such as increase in wages.

    Upon accepting office they released political prisoners, all emergency powers of provincial government were repealed, bans were lifted on illegal political organisations, all restrictions on press were given up, confiscated arms were returned and arms licenses restored.

    The Congress Government undertook several measures of social reform and welfare, prohibition was introduced in selected areas. Measures for the advancement of untouchables implemented. Special attention paid to education, public health and sanitation. Mass literacy campaign organised.

    Congress ministries supported and provided subsidies to indigenous industries, several modern industrial ventures were promoted, they tried to develop planning through National Planning Committee.

    In sum they tried their hand in welfare of all sections of people in commendable way despite of less power and meager resources available to them.

    • Very good answer Anjali. From introduction to conclusion, you have answered it nicely. This is a tremendous improvement from your initial answers. This looks very mature, clean and straight to the point. Keep it up. Try to answer questions which are not comfortable too.

      • Anjali

        Thanks Insights. All credit to you, whatever I learned from here only, hope on 1st Dec I will write perfect answer. I am working on it.

    • sapthagiri

      anjali your ans is so nice, i think u can add up this too. you have told about all the achievements despite of less power.
      here, you have to explain what is less power, why less power.
      the answer could be financial big brother attitude of centre, govt pooling finance for impending war, so on.
      anyhow, your ans looks great!

      • Anjali

        Thanks Sapthagiri, point noted.

  • AB

    “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement. (250 Words)

    A: Congress siezed the legislative window extended by GoI 1935 and formed ministries in various British provinces in elections of 1937. Before collectively resigning in mid-1939 to protest against the illegal forced involvement of India by British into the WW 2, the ministries left behind an impressive record.

    The Congress ministries dealt firmly and decisively with the communal riots which had become a scourge for the nation. They were also firm in dealing with the ICS, called the steeel-frame of British India, and also seeded nationalist inspiration in the lower rungs of bureaucracy. The seriousness of administration could be envisaged from the fact that even popular agitations which turned violent were dealt firmly although to the displeasure of many including Gandhiji. National Planning Committee was formed and Central Working Board was formed by Congress to prevent provinicialisation of the Congress.

    The most remarkable alarcity was shown in legilative arena. Congress repealed most of the unpopular acts like Public Safety Act and lifted restrcition on media. Though complete agricultural overhaul could not be achieved, but several beneficial measures like tenancy rights, tenancy security regulation of rent etc were introduced. The ministries also traversed the fine balance between worker’s welfare without alienating industrialists quite well. However the ministries were mostly pro-labour.

    However the most important contribution was that the Congress rule fired the imagination of people. It proved that native rule was prerequisite for development and this helped built legitimacy for INC. The empowering of people and judicious and thoughtful use of powers to serve people by bringing a slew of welfare measures and bettering the delivery.

    • Deepak

      “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze.

      Indian economy is a mix economy. Apart from few reserved sector, all sector are opened for private sector or even FDI. However idea of planning is still central to india development because of persistence of importance of planning commision.Economic growth and poverty alleviation are concerns central to indian planing system.
      Economic stability is the core concern for planing.If economic stability is absent ,planning is impossible as no one could estimate the exact expenditure and that will result in blockage of funds in unfinished projects. Moreover inflation hit poor the hardest. It is usually food items which get costly and poor not able to meet his food and other basic requirement.
      Uncompetitive markets can lead to monopoly/oligarcy.This leads to corruption. Indian product may not be able to compete globaly in other markets. To create a world class industry,manfacturing and service sector compettion is a neccessity. India ensure compettion with proper regulation bodies like CCI.
      Compettive markets helps producer and consumers alike. Both get reasonable prices for the product.This help SME and farmers getting fair price thus help in poverty control.
      Physical & social infrastructue development is crucial. Govt can provide enabling envirnment for private sector by investing in this sector. Large gestation period ,massive investments are the reasons that stops private sector from investing in these sector. There is increasing trend towards PPP in this sector,still public investment has crucial component.
      Govt intervention in social sector like health,education,sanitation,drinking water help realising demographic divident.Given that 64% polulation in 15-64 group , only a healty population can help themself through employment & thus help economy as a whole. Various social sector program MNREGA, NRHM,SSA ,TSC and others highlights public investments in this sector.However there is massive subsidy and leakage in these program but despite these investment are worthy.
      So these factors provide win-win situation for both economic growth and rural poverty.

      • Deepak

        Plz review

  • Anny Middha

    Poverty eradication has been on GoI,s agenda since independence. Many programmes and ambitions targets have been set for the cause. Five year plans address the issue as well.

    Govt. and more specificially pc claims that poverty rate has decreases ( both relatively and absolute numbers.) from 37.2% in 2004 – 2005 to 21.9% in 2011-12. This is true as real GDP per capita grower has also increased.

    Though poverty has reduced in comparison to 1950,s but not at disirable levels this is evident from poor social and economic indicators, in comparison to SL and bangladesh even.

    It is believed that economic stability, competitive market, public investment in physical and social infrastructure ll increase economic grower, which leads to poverty reduction. However growth is only one of the determinant.

    India should thus rely on effective policies and institutions on poverty reducing impact of growth. To address other( than growth) dimensions of poverty levels we need effective governance- transparent ,accountable woth lesser leakages and roper targeting .
    Increase in gender equality and democratic decentralisation ,should be done .also rate of inflation has inverse relation with poverty reduction ,as purchasing power decreases thus inflaction within acceptable limits.
    Further social indicators like ,education,health,sanitation,employment be addressed . Access to land increase in non agriculture output.hence along with growth, institutional setting in wider social and political contexts will affectively reduced poverty ( measure in all dimension)

    • sai

      “A,B,C leads to X,Y” Critically analyze. That is the question. As i told , i have not clearly understood these directives but the way i understand is this. How A,B,C leads to X,Y. This is what i have done in my answer. But i am not sure if the directive means exactly this. May be insights can come to help. But surely you have not done that. You brought some other factors into picture and neglected A,B,C.

      Insights questions are very easy because they are based on statements. If one is intelligent enough, the statement provides enough clues to frame the structure and answer the question. But UPSC does not ask many such questions. There arranging the content in a good structure becomes much more difficult.

      • Anny Middha

        Thanks for the review firstly!
        Next I interpreted the que as whether these a,b,c address the x,y aim or not. Then I explained that yes it does but more is needed since x and y depends on many factors, a,b,c are few of those. So I continued with describing other determinants.

        I read your answer and i like your approach also though.

        Insights please throw some light on shich interpretation is more sound?

        Thanks

  • SREEJESH

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze.

    The economic growth and poverty reduction are two interdependent phenomenon.There are lot of factors which play a crucial role in promoting economic growth and at the same time reducing the poverty.

    The economic stability is the essential for any nation to prosper.The element of stability allows investors to put their money for a long term period.The stable currency, the sufficient amount of foreign exchange reserves, CAD and fiscal deficit within limits, investor friendly policies etc.increases the confidence of investors.This money when utilized to create physical infrastructure such as power, transport,communications etc. generate employment opportunities which in turn help poors to come out of chronic poverty.The increased income level means increased expenditure and savings which again fuels the economic growth.

    The competitive markets too promote economic growth by continuously employing innovative methods in management and technolgical advancements.The agricultural labours and farmers are benefited by agricultural innovations,inclusive financial schemes,use of IT etc.There is a continuous improvement in their income level.

    The Govt. spending on creation of physical and social assets too help in pulling out large no. of rural people out of poverty.The spending on health,education,sanitation,job creation through various schemes such as RSBY,SSA,MNREGA etc.have a positive bearing on the rural society.

    To foster economic growth and in the process achieving of poverty reduction it is imperative that both public and private spending should be increased and a stable and competitive economy is allowed to function.

    • SREEJESH

      INSIGHTS please review.
      Thanks..

  • prerna

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze

    India has been relatively high growth rate in recent decades. But the real challenge lies in converting ‘economic growth’ to ‘economic and social development’ of the people.

    To achieve sustained economic growth economic stability is needed. This is achieved when India has a balanced growth in various sectors as well as does not have any supply side constraints and no adverse influence of global economy on the domestic economy. Planned allocation to resources to various sectors would be helpful.

    Rural poverty has been considerably reduced, however there is still a persistent inequality in the society. For this to be reduced we need more and more public investment in physical and social infrastructure. That is education, health, credit assurance as well as connectivity by roads, railways and telecommunication, proper storage mechanism to deliver the agricultural commodities to markets with less wastage etc.

    Competitive markets are the need to ensure the actual producer is paid the incentive for higher production. For instance, in agriculture sector we have brought in several innovative policies such as Rythu Bazar in Andhra pradesh where the farmer can sell his produce directly to the consumer at a better price.
    A well developed export market for industrial goods with a better infrastructure system would bring in overseas markets.

    India is going through the right path, with the bringing of Industrial corridors, more investment in rural health and free education schemes and most importantly the Bharat nirman; would help India in reducing the rural poverty and ensuring sustained growth.

  • AVINASH BHASKER

    “Broad economic stability, competitive markets, and public investment in physical and social infrastructure are widely recognized as important requirements for achieving sustained economic growth and a reduction in rural poverty.” Critically analyze. (250 Words)
    Sustained economic growth is critical for addressing poverty as it generates employments and improves standard of living of the ordinary people. The countries with sustained development are destinations for the capital show as is evident from the growth story of developing countries like India, China, Brazil, South Africa and South – East Asian countries.

    Public investment in physical and social infrastructures can do miracle in improving life of the rural people. In rural parts of India, most people still depend upon the agriculture for their livelihood. They need seeds, fertilizers, weather related informations, market at easy reach to sell their produce. Free market ensures they will get most of these requirements at affordable rate, that too in time. An all weather road can help a farmer as much to access the mandi for selling their produce as a rural girl to achieve higher education from nearby city. Supply of pure water, sanitation and better health facility help poor people save their hard earned money by living a healthy life. Uninterrupted power supply has the potential to make villages economically self sustained by reviving small scale and cottage industries.
    Free market helps both rural as well as urban people. Competition increases transparency in services. People benefit of competitiveness among market players by having greater access to things ranging from daily usage to recreational activities.

    Recognising all these factors, the government has mainstreamed the sustainability in developmental strategy as it is clear from the objective of the 12th FY plan as faster, sustainable and more inclusive growth to address poverty reduction. The market forces too have been incorporated in this mission.

  • dr NAVEEN

    Do you agree to the proposal that a neutral monitoring by a third party such as UN at the border in Kashmir is required to bring peace to the region? Substantiate. (250 Words)
    plz through light on this question i m confused about why india don,t want a neutral observer at LOC
    friends and insights give some idea

    • dr NAVEEN

      through=throw

  • India has recognized the twin goals of inclusive (;sustained) growth and poverty alleviation as its core focus areas for the post development thrust following Millennium Development goals in 2015.
    In hindsight, Inclusive growth and reduction in rural poverty are intertwined in that they are mutually reinforcing phenomena. Rural India accounting for more than two-thirds of our human resource base while contributing a miniscule and worse, a declining share of almost 13% in India’s GDP (in 2013) calls for a slew of measures on the part of government to ameliorate the status-quo. Firstly, Broad economic stability will stem the rot of volatile fluctuations in the macroeconomic environment which paralyze the investor’s confidence. Development of rural areas hinges on public-private investments in land, agriculture, industries. Agriculture occupies a lion’s share of economy of rural India, hence, Technological innovation to increase on-farm productivity ; imports of farm equipments, seeds etc and export of marketable surplus are rendered dud in the wake of an unstable economy. A stable economy standing firm on sound fundamentals will attract capital flows which can then be utilized for better channelization of resources towards elimination of rural poverty .
    Competitive markets are essential are essential for rural producers to realize the full value of their products. For instance. In agriculture, farmers have to resort to distress selling and government has to dole out Minimum Support Price (MSP) due to the artificial supply/demand bottlenecks created by the intermediaries. Hoarding and black marketing is rampant because of ineffective regulatory and supervisory framework towards increasing transparency. This pernicious market practice rear its head as a three ponged demon to India viz; One, Cultivator is in distress irrespective of the quota of produce (major cause of farmer suicides), Two, huge burden on exchequer to disburse Public Distribution Scheme (PDS) subsidy on one hand to the poor farm households and secondly, buying the produce to be later sold under Open Market Sale scheme (OMSS) to wholesale traders at a discount. Three, rise in prices of essential commodities for the end consumer, completing the vicious circle by leading to inflation. It is noteworthy here that, Competition Commission of India (CCI) by bringing forth a long overdue overhaul of regulations to ensure transparency and preventing unfair trade practices to mushroom which are thwarting open market operations, can solve this nagging problem.
    Thirdly, State led investments in physical and social infrastructure can go a long way in preventing non-material poverty which is leading to social exclusion of the rural communities and obstructing the percolation of developmental benefits to the countryside. Government interventions in education, culture, health and human resources through state sponsored schemes like National Rural livelihood mission, National Rural health mission, Irrigation management transfer scheme etc. shall be implemented through civil society, SHGs, local governance to realize the full force and achieve concrete targets in eliminating rural poverty while sustain inclusive growth.

    • The question is not about India. You started it assuming the question is in Indian context. So the chance to compare success or failures of strategies mentioned in the statement w.r.t other countries is missed.

      You have used 476 words. You have deep knowledge on this topic, but you should express it within word limit. It saves lot of time for writing other answers.

      Structure is good, but it would have looked more effective if you had said things in few words.

      • @Insights; Thanks sir for your valuable suggestions. I realize i should not have overshot the word-limit just because of comfort-level with topic and secondly, answer should be more general.
        Will surely keep in mind and strive to avoid these mistakes.
        Thanks again!

  • @Insights: pls review..

  • 2.The problem grappling developing and under-developed countries are unstable economies, lack of appropriate regulation and lower public investment. It is very common hearing about a stable economy due to recession in instability in western economy as well as various measures by them, which is deteriorating other economy and making it unstable. Liberalization has opened market and made economy market driven but this approach had also tended to monopolization by big corporates in absence of proper regulatory mechanism harming public interest. Leaving economy market driven, public investment by Gov. generally involves investment in physical and social infrastructure because investment in them aren’t profit driven and involves huge expenditure. India is presently facing the problem of Unstable economy and lower investment in Physical and social infrastructure although it has been competent in developing proper regulatory mechanism to make market competitive.
    Lower economic stability due to recession in western countries, their inappropriate monetary policies and supply side and regulatory constraints in domestic economy. Persistent instability can weaken investors’ confidence and make economy vulnerable. Instability accompanied by improper regulatory mechanism and policy constraints can lead to hoarding and make market monopolistic, hampering growth. Role of Gov.’s Investment being limited to social and physical infrastructure makes it imperative to uplift economically backward, thereby increasing consumption, increasing growth and improving supply side constraints. Removing constraints can help make price stable and hence stable growth and economy.
    The present economic situation in which India having 1/3rd citizens living under poverty line , unstable economy and lower growth ,makes it imperative for Gov. to take steps in eliminating such constrainst.

  • 1. “Looking back, I am surprised at their achievements during a brief period of two years and a quarter, despite the innumerable difficulties that surrounded them.” Comment on the legislative and administrative record of the Congress Ministries between 1937-39 in the light of this statement.(250 Words)

    After a brief tussle, Congress Working Committee (CWC) decided to adopt office under Govt. of India Act,1935. It formed ministries in State legislatures of Orissa, UP, Bihar, Bombay, Madras and Central province and later, in North West Frontier province and Assam. However, it formed a parliamentary sub-committee to ensure co-ordination amongst all provinces and prevent the british ploy of dividing congress across provinces from fructifying. During its brief stint in 1937-39, and despite the innumerable difficulties, Congress was successful in eking out various significant reforms and legislations in political, economic and social arena.
    Notwithstanding the scarce financial resources and limited powers conferred to them by Center, Marching on the cause of unfettered civil liberties, Congress curbed emergency powers of provinces (derived from Public Safety Act, 1932), lifted ban on organizations like Hindustan Seva dal, youth league, press and political journals, scuttled release of political prisoners. State legislations were carried out on curbing police powers, untethered powers of CID agents to shadow political workers, restoration of lands to owners, pension to officials etc.
    In economic front, it brought forth regulations to protect and secure tenancy rights for peasants and cultivators, drastically cut on rent as well as arrears, reduce debt on Occupant ryots through debt relief acts and rationalizd land revenue by entitling zamindars to 9/20 of the produce. In spite of strong opposition to these legislations by landlords and lawyers alike, Congress put up a brave face and did not relent.
    Secondly, it adopted a strong pro-labour stance by ushering in Industrial Disputes Resolution Act which recommended wage increases, prevention of strikes or lockouts by labourers or formation of unions etc. These acts also suffered huge protests from mill-owners and even Left wing Congressmen and communists, however, Congress was able to successfully wade it through.
    Congress carried out a flurry of social reforms to rid the society of the ills of untouchability and backwardness. Significant one being efforts to bring into mainstream the Harijans by providing for their rights. Also it expanded reforms for education of girls and harijans by giving scholarships, undertook prison reforms, reforms to improve general health and sanitation, incentivizing manufacturing to set-up base and lastly setting up a National Planning committee, to develop planning.

  • Himanshu

    Post Globalisation era, economic stability became a function of global economic condition. Macroeconomic parameters such as current account deficit, capital accounts, fiscal deficit , when are under controlled levels, government has an option to diverse its expenditure in welfare sector and for the deprived mass e.g. fiscal deficit when under stress, government is bound to adopt the contractionary fiscal policy which would lead to lesser public expenditure which influences mostly the rural poor. Competitive markets on the other hand directly benefits the urban mass, with some indirect implications on rural population too. Urban population reaps most of the benefits of competitive markets as they are having greater options available and better services to cater with markets bringing up better technology and services at door steps. Public expenditure in physical and social infrastructure would lead to trickle down effect, where incomes seeps down from rich to poor. With an increase in per capita income of individual, the other non-income facets of poverty such as infant mortality rate, life expectancy, maternal mortality rate and others would also be reduced. A better income household would start spending surplus in education health care and other amenities which would lead to him/her a descent standard of life. This is possible only when government adopts a expansionary fiscal policy and invest heavily on public expenditure, thereby generating employment and empowering the rural households. When it comes to rural poverty , its roots lies on agriculture in which most of the rural population is dependent for their livelihood. A investment in physical infrastructure includes large share in agriculture, irrigation, electricity roads etc. which would not only enhances the agricultural productivity but would also helps bringing up the lower strata of society and aligning them with the mainstream.

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