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General Studies – 1
Topic: Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues;
Reference: India’s Struggle for Independence by Bipan Chandra.
Why the question:
The question is part of the static syllabus of General studies paper – 1.
Key Demand of the question:
To analyse and determine if the Gandhian strategy of S-T-S delayed independence.
Directive:
Critically analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Introduction:
Being by describing the Struggle-Truce-Struggle strategy of Gandhi.
Body:
In the first part, link how S-T-S was used during the CDM and the reasons therefore. Mention about inherent limitations of masses, need for the truce, advantages it gives and how truce not necessarily means surrender etc.
In the next part, analyse how some contemporary nationalists and historians accuse S-T-S strategy as reason for delayed freedom. But state reasons that S-T-S was tactical choice in a prolonged freedom struggle and give reasons as to how it did not delay freedom.
Conclusion:
Conclude by passing a balanced judgment regarding the S-T-S strategy and its role in India’s independence.
Introduction:
The decisive phase of the Nationalist Movement [1917-1947] began when Gandhiji returned to India from South Africa in January 1915. This phase is also known as the Gandhian Era. During this period Mahatma Gandhi became the undisputed leader of the National Movement. His principles of non-violence and Satyagraha were employed against the British Government. Gandhi made the nationalist movement a mass movement.
Highlights of Struggle-Truce-Struggle:
- His non-violent satyagraha involved peaceful violation of specific laws.
- He resorted to mass courting arrest and occasional hartals and spectacular marches.
- He had readiness for negotiations and compromise.
- His struggle against foreign rule is popularly known as ‘struggle-truce-struggle’.
- The policy of Struggle-Truce-Struggle (STS) was a no-win situation for British, at the same time it gave people enough time to regroup and fight back British.
- Gandhi’s nationalism was inclusive, especially participation of women.
Weakness of the Movement:
- Gandhiji are quite well known for their mass movements and equally infamous for withdrawing them when they are at their peak.
- The only common thing about Non –Cooperation Movement (1920-22), Civil Disobedience (1930-33) and Quit India Movement (1940-42) is that they were withdrawn by Gandhiji against the wishes of other popular Congress leaders and masses.
- Criticizing the STS strategy, Nehru argued that the Indian National Movement had reached a stage, after the Lahore Congress call for Purna Swaraj programme, in which there should be a continuous confrontation and conflict with imperialism till it was overthrown.
- He advocated maintenance of a “continuous direct action” policy by the Congress and without the interposition of a constitutionalist phase.
- Real power, he said, cannot be won by two annas and four annas. Nehru suggested a Struggle-Victory strategy.
Impact of Gandhi’s Struggle-Truce-Struggle strategy:
- According to Gandhi’s Struggle-Truce-Struggle strategy (STS), mass movements have an inherent tendency to ebb after reaching a certain height, that the capacity of masses to withstand repression, endure suffering and make sacrifices is not unlimited, that a time comes when breathing space is required to consolidate, recuperate and gather strength for the next round of struggle.
- During their experience in South Africa, Gandhiji understood that people have limited capacity to withstand for a movement.
- A large number of Congressmen led by Gandhiji believed that a mass phase of movement (struggle phase) had to be followed by a phase of reprieve (truce phase) before the next stage of mass struggle could be taken up.
- The truce period, it was argued, would enable the masses to recoup their strength to fight and also give the Government a chance to respond to the demands of the nationalists. The masses could not go on sacrificing indefinitely.
- If the Government did not respond positively, the movement could be resumed again with the participation of the masses.
- The basic strategic perspective of the national movement was to wage a long-drawn out hegemonic struggle, or, in Gramscian terms, a war of position.
- By hegemonic struggle, we mean a struggle for the minds and hearts of men and women so that the nationalist influence would continuously grow among the people through different channels and through the different phases and stages of the national movement.
- The movement alternated between phases of extra-legal or law-breaking mass movements and phases of functioning within the four walls of the law. But both phases were geared to expanding the influence of the national movement among the people.
- One of the objectives of the nationalist strategy was to erode the hegemony or ideological influence of the colonial rulers inch by inch and in every area of life.
- The STS strategy proved to be a novel method of political action, a technique which revolutionized Indian politics and galvanised millions to action against the British Raj.
- Its success is clearly visible in various movements like Champaran Satyagraha, Ahmedabad Workers strike, Kheda Satyagraha where efforts of Gandhiji on the lines of Satyagraha yielded results in the form of passage of Acts and compromise between the parties involved.
- Martin Luther King used it in his battle against racism.
- Nelson Mandela used the Satyagraha technique in South Africa to end apartheid.
- Today legacy of Satyagraha continues in the form of protests employed in India and around the world.
Conclusion:
Use of strategies of STS (Struggle-Truce-Struggle) and PCP(Pressure-Compromise-Pressure) was also a significant feature of Gandhian movement. It was highly successful because it was the pressure built by Gandhian movement only that the British had to leave India in 1947.
Topic: Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues;
Reference: India’s Struggle for Independence by Bipan Chandra.
Why the question:
The question is part of the static syllabus of General studies paper – 1.
Key Demand of the question:
To give reasons for rise and popularity of socialism among the Indian Nationalists and its impact on the national movement.
Directive:
Structure of the answer:
Introduction:
Begin the giving context regarding the rise and subsequent popularity of socialist ideals and ideology socialism among the Indian Nationalists.
Body:
In the first part of the body, write about the detailed reasons therefore. Mention about Bolshevik revolution, ideals of socialism, exploitation faced under Britain, Initial success of Soviet Economy, Economic situation in India, Influence of Mahatma Gandhi etc.
In the next part, mention about the impact of socialism on the National movement. Mention the changes it brought, impact on peasant and worker issues, on revolutionary nationalists, on important leaders within congress, on leaders and organization outside congress, formation of CPI and Economic programme etc.
Conclusion:
Summarize the overall legacy that socialism left on the national movement and the newly independent India.
Introduction:
Socialism is a range of economic and social systems characterised by social ownership and democratic control of the means of production as well as the political theories and movements associated with them.
Emergence of Socialism in India:
- The socialist movement began to develop in India with the Russian Revolution in 1917.
- However, in 1871 a group in Calcutta had contacted Karl Marx with the purpose of organizing an Indian section of the First International.
- Marxism made a major impact in Indian media at the time of the Russian Revolution.
- Of particular interest to many Indian papers and magazines was the Bolshevik policy of right to self-determination of all nations.
- Bipin Chandra Pal and Bal Gangadhar Tilak were amongst the prominent Indians who expressed their admiration of Lenin and the new rulers in Russia.
- The Russian Revolution also affected émigré Indian revolutionaries, such as the Ghadar Party in North America.
- The Khilafat movement contributed to the emergence of early Indian communism. Many Indian Muslims left India to join the defence of the Caliphate. Several of them became communists whilst visiting Soviet territory. Some Hindus also joined the Muslim muhajirs in the travels to the Soviet areas
- The First World War was accompanied with a rapid increase of industries in India, resulting in a growth of an industrial proletariat. At the same time prices of essential commodities increased. These were factors that contributed to the build-up of the Indian trade union movement. Unions were formed in the urban centres across India, and strikes were organised.
- In 1920, the All India Trade Union Congress was founded.
- The Communist Party of India was founded in Tashkent on 17 October 1920, soon after the Second Congress of the Communist International by M.N.Roy, Abani Mukherji and others.
Economic condition during 1920s- 1930s:
- The decade of 1930s witnessed the rapid growth of socialist ideas within and outside the Congress.
- In 1929, there was a great economic slump or depression in the United States, which gradually spread to the rest of the world resulting in economic distress and unemployment on a large scale (across the world). But the economic situation in the Soviet Union was just the opposite.
- There was not only no slump, but the years between 1929 and 1936 witnessed the successful completion of the first two Five Year Plans, which increased the Soviet industrial production by more than four times.
- The world depression, thus, brought the capitalist system into disrepute and drew attention towards Marxism, socialism, and economic planning.
- Consequently, socialist ideas began to attract more and more people, especially the young, the workers, and the peasants.
Impact of Socialist Ideas on national movement:
Inside Congress:
Congress Socialist party
- It was a socialist group within the INC founded in 1934 by JP Narayan and Acharya Narendra Dev.
- They believed in Marxist Ideas, Gandhian ideals, Liberal and Social democracy of the west.
- Nationalism and Independence was their goal.
1936 Faizpur session of INC:
- The objectives of the session included reducing land revenue, abolition of feudal levies and dues, cooperative farming, creation of peasant unions etc.
Civic rights:
- The National Congress supported the states’ people’s struggle and urged the princes to introduce democratic representative government and to grant fundamental civil rights.
- In 1938, when the Congress defined its goal of independence it included the independence of the princely states.
- In 1939, Jawaharlal Nehru became the President of the All India States’ People’s Conference. The States’ people’s movement awakened the national consciousness among the people of the states. It also spread a new consciousness of unity all over India.
Safeguarding of interests of workers:
- In 1936, INC asked the Congress ministries in provinces to work for safeguarding and promoting the interests of workers.
Outside Congress:
Peasants and Workers Unions:
- The economic depression also worsened the conditions of the peasants and workers in India. The prices of agricultural products dropped by over 50 per cent by the end of 1932.
- The employers tried to reduce wages. The peasants all over the country began to demand land reforms, reduction of land revenue and rent, and relief from indebtedness.
- Workers in the factories and plantations increasingly demanded better conditions of work and recognition of their trade union rights. Consequently, there was rapid growth of trade unions in the cities and the Kisan Sabhas (peasants’ unions) in many areas, particularly in Uttar Pradesh, Bihar, Tamil Nadu, Andhra Pradesh, Kerala, and Punjab.
- The first all-India peasant organization, the All-India Kisan Sabhawas formed in 1936. The peasants also began to take a more active part in the national movement.
- In his presidential address to the Lucknow Congress in 1936, Nehru urged the Congress to accept socialism as its goal and to bring itself closer to the peasantry and the working class.
Global affairs:
- During the period of 1935-1939, Congress actively participated for the development of world affairs. It had gradually developed a foreign policy based on opposition to the spread of imperialism.
- In February 1927, Jawaharlal Nehru on behalf of the National Congress attended the Congress of oppressed nationalities at Brussels organized by political exiles and revolutionaries from the countries of Asia, Africa, and Latin America, suffering from economic or political imperialism.
- In 1927, the Madras session of the National Congress warned the Government that the people of India would not support Britain in any war undertaken with its imperialist aims
Conclusion:
After India’s independence in 1947, the Indian government under Prime ministers Nehru and Indira Gandhi oversaw land reform and the nationalisation of major industries and the banking sector. However, when a global recession began in the late 1970s, economic stagnation, chronic shortages and state inefficiency left many disillusioned with state socialism. In the late 1980s and 1990s, India’s government began to systematically liberalise the Indian economy by pursuing privatisation, aiming to attract foreign investment. Nevertheless, the Congress party continues to espouse some socialist causes, and other major parties such as the Communists, Samajwadi Party, Bahujan Samaj Party and several others openly espouse socialism.
Topic: Role of women and women’s organization, population and associated issues, poverty and developmental issues, urbanization, their problems and their remedies.
Reference: Live Mint
Why the question:
women’s labour force participation in India has declined continuously and Economists and sociologists have offered several explanations for the decline. This article captures the reasons there for.
Key Demand of the question:
To analyse the reasons for the decline of participation of women as part of labour force and suggest measures to improve the same.
Directive:
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Introduction:
Start by the mentioning the fact from NSSO data on Women’s labour force participation in India.
Body:
In the body, The declining women’s labor force participation, gender pay gap, high rates of informal work with lack of social security are seen as impediments to the goal of gender equality and empowerment of women in India. Stereotypes, lower wage rate, decline in the number of women in the workforce is accounted for mainly by rural women, which can be attributed to the dwindling agricultural sector etc.
In the next part, mention how the above hinder the developmental aspiration of India in achieving gender equality and sustainable development goals. Substantiate with facts from India’s performance of Global Gender Gap or any other relevant reports.
In the last part, List down the measures being taken by the govt. to address these challenges. Suggest measures to further improve them.
Conclusion:
Conclude with a way forward.
Introduction:
Women workforce in the country fell to 18 per cent in 2019 from 37 per cent in 2006, non- government organisation Azad Foundation said on the International Women’s Day. The World Economic Forum’s Global Gender Gap Report this year ranks India at 149th position out of 153 countries on economic participation and opportunity. According to the Foundation, the Global Gender Gap Report estimates that raising women’s participation in the labour force can increase India’s GDP significantly.
Reasons for Declining Participation of Women in Employment:
- It appears that there are some non-economic, social and cultural factors. When increase in family incomes are there, due to the cultural factors, women leave the work to take care of the family.
- The major pull-down is among the rural women as per Ministry reports where agriculture is shrinkingand we do not have a robust manufacturing sector yet, we are investing it now and it will take time to reap benefits.
- There are a lot of crimes against children inside and outside houseso parents feel at least one parent should stay at home and being a patriarchal society the burden comes to the women
- One big factor is maternity. Many women who join the workforce are unable to re-join after having a child.
- The landmark legislation, which entitles a woman to 26 weeks of paid maternity leave is becoming a big hurdle.
- As per a study this increased cost for companies and this may discourage them from hiring women.
- The safety in metropolitan, tier 1 and tier 2 cities is the major issue.
- 11 lakh to 18 lakh women are likely to face difficulty in finding new jobs across 10 sectors this year. Because of ICT, part-time jobs from home are not giving the real picture.
- Concerns about safety and Harassment at work site, both explicit and implicit.
- Higher Education levels of women also allow them to pursue leisure and other non-work activities, all of which reduce female labour force participation.
- Structural transformation of Indian agriculture due to farm mechanization results in a lower demand for female agricultural labourers.
- When income increases, men allows Indian women to withdraw from the labour force, thereby avoiding the stigma of working (cultural factors).
- Insufficient availability of the type of jobs that women say they would like to do, such as regular part-time jobs that provide steady income and allow women to reconcile household duties with work.
- Social norms about household work are against women’s mobility and participation in paid work. Childbirth and taking care of elderly parents or in-laws account for the subsequent points where women drop off the employment pipeline.
- The cultural baggage about women working outside the home is so strong that in most traditional Indian families, quitting work is a necessary precondition to the wedding itself.
Empowering women in the economy and closing gender gaps in the world of work are key to achieving the 2030 Agenda for Sustainable Development and achieving the Sustainable Development Goals.
- Particularly Goal 5, to achieve gender equality, and Goal 8, to promote full and productive employment and decent work for all; also Goal 1on ending poverty, Goal 2 on food security, Goal 3 on ensuring health and Goal 10 on reducing inequalities.
- When more women work, economies grow. Women’s economic empowerment boosts productivity, increases economic diversificationand income equality in addition to other positive development outcomes.
- For example, increasing the female employment rates in OECD countries to match that of Sweden, could boost GDP by over USD 6 trillion, recognizing, however, that growth does not automatically lead to a reduction in gender-based inequality.
Advantages:
- Women have a different way of looking at thingsand this important.
- If more women did paid work, India’s national income would rise dramatically.
- Money gets circulated as more people are employed for cooking, cleaning at home
- One estimate is that GDP would go up by 20% if women matched men in workforce participation.
- In the family qualities like independence, interdependence, tolerance, disciple, time management, multi-tasking etc. all this qualities she can learn and teach to her family better in case she works.
- Enhances a woman’s control over household decision-making.
- Providing greater impetus to women entrepreneurs would be critical for India’s growth.
- Women entrepreneurs help drive innovation and job creation, besides assisting in addressing the world’s most critical challenges.
Way Forward:
- Science needs the best scientists,and a knowledge economy needs a gender-balanced workforce.
- Women need the 3C’s Confidence, Capabilities, access to Capital. Men need to understand that women are their equals.
- One key ingredient of Japanese Prime Minister Shinzo Abe’s economic revival strategies was to increase female LFPR. Abe made it a priority to build almost half a million government-funded crèchesto help young mothers re-join the workforce.
- Government policies should focus on behavioural changesthat make female employment more acceptable in the society.
- Government schemes must target the fundamental cultural and social forces that shape patriarchy.
- Communication programmes on gender equality in secondary education to help students imbibe equitable gender norms.
- Acknowledging child care as the responsibility of both parents.
- As for the workforce, much needs to be done, beyond maternity benefit entitlements and other quotas.
- A useful and easily implementable idea would be to give income tax benefits to women. It would be a bold and effective step to increasing India’s female workforce participation.
- For political empowerment of women, their representation in Parliament and in decision making roles in public sphere is one of the key indicators of empowerment.
- Gig Economy provides women flexible work options to pursue their career while not missing important milestones in their family lives.
- Initiatives such as Skill India, Make in India, and new gender-based quotas from corporate boards to the police force can spur a positive change. But we need to invest in skill training and job support.
- Drawing more women into the labour force, supplemented by structural reforms that could help create more jobs would be a source of future growth for India. Only then would India be able to reap the benefits of “demographic dividend” from its large and youthful labour force.
General Studies – 2
Topic: Important aspects of governance, transparency and accountability, e-governance applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures.
Reference: The Hindu
Why the question:
One of the most used applications in the world, WhatsApp is currently under fire from a section of its users over its impending new privacy feature. After putting off the supposed rolling out of the feature by three months and publishing full-page advertisements in Indian newspapers.
Key Demand of the question:
To write about the need for a strong data protection law amidst various challenges of data collection and privacy.
Directive:
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
Introduction:
Start the answer by giving the context of recent issues of WhatsApp as well as overall concerns with data collection by companies.
Body:
Firstly, mention the various issues that arise by data collection by companies especially the technological giants. Violation of privacy, misuse of data, targeted campaigns, attempts at influencing elections which. Give examples such as Cambridge Analytica etc. to substantiate your points.
Next, argue how the need of the hour is to enact a strong data protection law. In brief, mention the draft bill in the domain and its features. Suggest further features which will make the data protection more robust and safeguard the privacy of the users like that of GDPR rules of the European Union.
Conclusion:
Stress upon the need of protecting the fundamental rights of the citizens as well prevent any serious ramifications of data misuse.
Introduction:
Recently, WhatsApp has updated its privacy policy, highlighting how user data is impacted when there is interaction with a business on the platform, and provides more details on integration with Facebook, WhatsApp’s parent company. After facing backlash over the fear of compromised personal data, WhatsApp has clarified that the update would not affect users’ messages to friends or family and the changes only relate to messaging a business using the platform.
Body:
- Right to privacy is a requisite of right to life and personal liberty under Article 21 of the Indian Constitution. It is not an absolute right; it may be subject to certain reasonable restrictions.
- It is proclaimed that the new privacy policy of WhatsApp will encroach upon all personal information, payment details, contacts, location and other important information of a person who is using WhatsApp and that can be used by the WhatsApp.
- Confederation of All India Traders (CAIT) also said that this access will pose a serious threat to the economy as well as to the security of the nation. However, Spokesperson of WhatsApp has asserted that this policy is not infringing with the privacy of the users and this update has not changed the data sharing practices of the users.
- CAIT has nevertheless has demanded a quick intervention from the government saying that it is hurting the privacy of the individual and also is against the basic fundamentals of the constitution.
- Data Sharing
- Personal Chats:
- The privacy policy does not change for personal chats, which will remain end-to-end encrypted and fully protected, and third parties will not be able to read them.
- WhatsApp also clarified that it does not store messages as it considers this kind of data dump a “privacy and security risk”.
- Once a message is delivered, it is deleted from the company’s servers.
- However, it stores a message only when it cannot be delivered immediately, which stays there for up to 30 days in an encrypted form. WhatsApp continues to try to deliver it and if it is undelivered even after 30 days, it is deleted.
- Personal messages will not be used to target ads on WhatsApp as these are encrypted.
- WhatsApp cannot see the shared locations and does not share a user’s contacts with Facebook, or any other app.
- Business Chats:
- According to the new policy, content shared with a business on WhatsApp will be visible to “several people in that business”.
- Businesses get data when a user interacts with them on the platform.
- WhatsApp now has over 50 million business accounts and this is a potential monetization model.
- Some businesses work with third-party service providers (including Facebook) to help manage their communications with their customers.
- WhatsApp recommends users to read the business privacy policy or contact the business directly to understand how they handle the information shared with them.
- Large businesses might need to use secure hosting services from Facebook to manage WhatsApp chats with their customers, answer questions, and send helpful information like purchase receipts.
- WhatsApp will clearly label conversations with businesses that are choosing to use hosting services from Facebook.
- These labels will allow users to decide if they want to be in a conversation, the details of which could be used to show them targeted ads.
- If one uses WhatsApp for a business and have a list of clients, the business on the other side too will see the conversation and know the preferences.
- This could be used to show ads on Facebook platforms.
- Business owners can use some of the insights to run ads targeting the customers on Facebook and other services.
- Data Shared with Facebook and its Other Companies:
- Basic information like account registration information (phone number), transaction data of payments, service-related information, information on how one interacts with others (including businesses), mobile device information, and IP address.
- It has also started collecting more information at a device hardware-level now.
- Data exchange with Facebook is already taking place which is used to improve ad experience across other products of the company.
- Reasons for Sharing Data:
- To ensure better security.
- To fight spam for an improved user experience.
- The new policy seeks a deeper integration of WhatsApp into the Facebook group of companies for interoperability and to bring more services to WhatsApp.
- Interoperability is the term given to the cross-platform vision across Facebook Messenger, Instagram and WhatsApp.
- Acceptance Choice and Other Options
- Users will have to accept the privacy policy as this is the standard practice for most software.
- If someone does not want to then they can delete the account and switch to other services.
- However, it will be a pointless exercise to quit WhatsApp and still continue to use Facebook products such as Messenger, Instagram and Facebook itself.
- After the highlighted concerns, people are switching to other messaging apps like Telegram and Signal.
- Signal is not owned by any corporation and is run by a non-profit organization
- According to the new policy, content shared with a business on WhatsApp will be visible to “several people in that business”.
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- Need of Strong data protection law safeguard the fundamental right to Privacy of the citizens:
- WhatsApp’s new privacy policy applies to every country, including the US and users will have to accept the terms and conditions to continue using the service.
- In the US, the Federal Trade Commission (FTC) has filed a lawsuit against Facebook over antitrust, anti-competitive policies.
- Users in the European Union (EU) get more control over data sharing with Facebook because of its General Data Protection Regulation (GDPR).
- GDPR is one of the strictest privacy policy on software products in the world.
- It ensures that consumers have the full rights on their data and how that data is processed, and can even demand erasure of information.
- While the WhatsApp privacy policy in the EU also talks about data sharing with Facebook, consumers there get a special setting called “Managing and Retaining Your Information”.
- Under it, consumers have the right to access, rectify, port, and erase their information, as well as the right to restrict and object to certain processing of the information.
- Consumers in the EU can even withdraw their consent to WhatsApp for processing of data.
- India lacks a regulatory authority and until the Personal Data Protection Bill, 2019 becomes a law, it will be hard to track tech companies on data processing.
- The Bill seeks to provide for the protection of personal data of individuals and establishes a Data Protection Authority for the same.
- The data can be anything from traits or attributes of identity, financial or biometric data, caste, religion or even political beliefs.
- GDPR is one of the strictest privacy policy on software products in the world.
- WhatsApp’s new privacy policy applies to every country, including the US and users will have to accept the terms and conditions to continue using the service.
- Need of Strong data protection law safeguard the fundamental right to Privacy of the citizens:
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Conclusion:
Privacy of a billion citizens is too important a thing to be left just to the practices of a commercial enterprise. It will be reassuring if it is guaranteed by a strong law.
General Studies – 3
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Reference: Business Standard , The Hindu
Why the question:
With the impact of COvid-19 the real economy has declined to historical lows rendering the economy stagnant but the financial sector has boomed despite that stock markets have soared causing a paradox.
Key Demand of the question:
To explain the reasons for a booming financial markets despite a stagnant economy and precautions that the government should take to prevent a collapse.
Directive:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Start by explain the paradox of booming share markets despite the stagnant economy. Give relevant stats and figures vis-à-vis both as a comparison.
Body:
In the first part, mention the possible explanations for the paradox. Circuit of financial flows, capital gains, expansionary policies, market confidence, evolving pattern of the alliances between finance and the ruling state and pro-finance stance of the state etc.
Mention the steps that the states should proactively take in order to prevent the collapse of confidence in the market in order to prevent a crisis in the future.
Conclusion:
Conclude with a way forward.
Introduction:
Divergences between the booming financial and the stagnant real sectors, which appear rather confounding as well as disconcerting, warrant an explanation. India’s major secondary stock market, the Sensex has been found tracking an upward path, from 40,817 on January 8, 2020 to 48,569 a year later, on January 8, 2021.
Body:
- Paradox of the continuing financial market boom with the real economy going through a stagnation
- In between, the temporary downward slides were responses to the pandemic-related lockdowns during early 2020.
- Jubilant upward strides in the stock market continued, along with speculatory financial transactions in real estate, gold and even commodities.
- However, we notice that financial gains booked in the market on transactions do not originate from productive activities in the real economy, a fact which contrasts the floating of shares by enterprises, as initial primary offerings (IPOs) for capacity expansions.
- With the start of the novel coronavirus pandemic during April-June (Q1) of 2020, India’s GDP growth rate in real terms sank to a low of minus 23.1%.
- The deceleration in the second quarter continued at minus 7.5%.
- The official advance estimate for 2020-21 as a whole also stands at a negative again, of minus 7.5%.
- GDP in India has been subdued even before the pandemic, declining from 6.12% in 2018 to 4.18% for 2019, while the financial sector has continued moving up.
- In advanced economies too
- The paradox of the continuing financial boom with the real economy going through a stagnation has been found to be replicated in other developing as well as advanced economies.
- These include the major emerging economies such as Brazil and Argentina along with advanced economies such as the United States and the United Kingdom.
- Simultaneously, the story of employment in countries has been dismal, with jobs at levels much less than what is needed.
- The discord within countries between the real and financial activities clearly imparts a dissonance within economies.
- Thus, in India, the bumper growth reaped in the stock market bears no testimony to the dark side of the economy — these include
- The uprooting of migrants following the pandemic lockdowns,
- Protesting farmers on land rights
- The vast stream of the jobless in the country.
- To understand a little bit more the magical properties of the on-going prosperity in the financial sector and to question its sustainability over time, we need to recognise the circuit of financial flows beyond the real economy.
- Flows of finance
- Finance as above, having no counterpart in the productive sector, was identified, first by Karl Marx, as fictitious capital.
- Flows of fictitious finance consist of credit in circulation, bonds on the basis of future earnings, interest on loans (at the cost of foregone consumption or from surplus value when loans permit an access to productive resources).
- Earnings from fictitious capital include interests, dividends and capital gains as well as profits on derivatives such as forwards and futures used to hedge against uncertainty in de-regulated markets.
- All the above come in the category of unearned or rentier capital.
- Despite the fact that flows of fictitious finance do not originate from the real economy, their accumulation, however, leaves a mark by generating financial wealth for those with access to the financial circuit.
- Interestingly, financial assets, sold with capital gains at higher prices, are met with a rising rather than with the usual declines in demand.
- Evidently, possibilities of accumulating assets turn even brighter with the high value assets (used as collaterals), fetching credit for further business.
- As for the stock prices, which reflect the stream of dividends over time discounted by interest rates, lower rates can help pitch stock prices higher.
- The cuts in interest rates are often preferred as tools under mainstream prescriptions limiting expansionary policies, which evidently helps stock prices.
- A journey as above for the financial circuit continues, is subject to market confidence, along a concentric circle which widens with rising asset prices, asset incomes and capital gains.
- The ingrained uncertainty in de-regulated markets works as a barometer for setting the pace of expectations and decisions.
- The market may suddenly stall when expectations turn adverse.
- The standard computer-run packages in the market available for investment decisions, while based on the rather erroneous calculation of probabilities, fail to work to attain the desired goals of profitability.
- Recent examples include instances of the financial collapse with the dot-com bubble or the sub-prime crisis of 2008, inflicting large social costs of unemployment and poverty in the real economy.
- State intervention:
- Finally, to look at how finance has attained its present status as the major happening sector within economies, especially, as a major force in the power relations, we need to look at the evolving pattern of the alliances between finance and the ruling state.
- The path started with the sweeping pace of financial de-regulation in the late-1990s when banks were allowed to profit by dealing with securities and with the emergence of hedging devices such as futures and options in the market.
- It also reflects the rise of non-bank financial institutions as well as shadow banks operating beyond regulations even at cost for the regular banks which had large exposures to the non-banks.
- The state’s close proximity to big finance is also evident in the revamping of downhill finance, even with bailouts in the name of restoring financial stability.
- It speaks even more of the pro-finance stance of the state in the benign official neglect of upswings in the financial sector despite the continuing downslides in the real economy.
- Precautions required are:
- Possibilities of a sudden collapse of confidence in the financial sector, incurring financial losses borne by those holding such assets go further with social costs borne by the economy as a whole — a reality which cannot be ignored.
- Need for alternative policies on the part of the state as well as a bit of caution on part of individual investors — in a bid to usher in a sustainable and equitable path of growth for the economy as a whole.
- Policies to prevent market failure are already commonly implemented in the economy. For example, to prevent information asymmetry, members of the New York Stock Exchange agree to abide by its rules in order to promote a fair and orderly market in the trading of listed securities.
- The members of the NYSE presumably believe that each member is individually better off if every member adheres to its rules – even if they have to forego money-making opportunities that would violate those rules.
- Some remedies for market failure can resemble other market failures. For example, the issue of systematic underinvestment in research is addressed by the patent system that creates artificial monopolies for successful inventions.
General Studies – 4
Topic: Human Values – lessons from the lives and teachings of great leaders, reformers and administrators;
Reference: The Hindu
Why the question:
As Americans celebrate Dr. Martin Luther King Jr.’s life in the U.S., it is befitting to reflect on his lasting legacy in India too, focusing particularly on the ideas he articulated and the movement he led, which have enduring and universal appeal.
Key Demand of the question:
To write about how the ideas and ideal of the Dr. Martin Luther King Jr still have an impact in India and across the world.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Write a brief intro about Dr. Martin Luther King Jr.
Body:
In the body write in detail about the Civil Rights Movements of Dr. Martin Luther King Jr and the influence of Mahatma Gandhi on him.
Mention about how the ideals of Dr. Martin Luther King Jr are still relevant in the todays worlds especially in the backdrop of black lives matter movement of America, the rights issue acorss the world such as women rights, minority rights, LGBTQI+ rights etc.
In India, write on the growing issues of Dalit, tribal and minority communities and how the Dr. Martin Luther King Jr advocating equitable rights applies to them.
Conclusion:
Summarize the overall legacy of Dr. Martin Luther King Jr.
Introduction:
Dr. Martin Luther King Jr is best known for his role in the advancement of civil rights using nonviolent civil disobedience. He negotiated the darkness of conflicts using the human values of conscience, non-violence, Truth, Equality of all by taking on oppression and discrimination, prejudice and injustice.
Body:
- Reflecting on the legacy that Dr. King left in setting the U.S. on the path to a more inclusive society and polity assumes significance in the context of persisting racism leading to the death of innocent African-Americans coupled with the rise of the Black Lives Matter movement.
- It is befitting to reflect on his lasting legacy in India
- Focusing particularly on the ideas he articulated and the movement he led, which have enduring and universal appeal, particularly at a time when some of those ideas are under threat.
- King’s dream
- If there is one idea that captures the essence of Dr. King’s contribution, it is his dream of an inclusive America.
- Though the election of Barack Obama as the first African-American President in 2008 was a major stride towards the fulfilment of this dream, Dr. King’s dream was much more grandiose in its breadth and scope.
- He expanded the horizons of the dream both in its conceptualization and actualization in the 1950s and 1960s.
- In his 1963 oration at the Lincoln Memorial, Dr. King eloquently unpacked his vision for an inclusive and equitable America, which is famously remembered as the “I have a dream” speech.
- Acknowledging the contribution of President Abraham Lincoln who signed the Emancipation Proclamation that set the African-Americans free from slavery, he underscored that “the life of the colored American is still sadly crippled by the manacle of segregation and the chains of discrimination.”
- Given persisting racial injustice even after a hundred years since 1863, he gave a clarion call saying: “Now is the time to lift our nation from the quicksand’s of racial injustice to the solid rock of brotherhood.”
- The spirit of Jesus Christ’s Sermon on the Mount and the Gandhian method of nonviolence burst forth beautifully when he cautioned his community not to “satisfy the thirst for freedom by drinking from the cup of bitterness and hatred.”
- He raised a perceptive question: “When will you be satisfied?” And he answered it saying, “We can never be satisfied as long as our children are stripped of their selfhood and robbed of their dignity.”
- From thereon he made the world spellbound with his inimitable oratory by expounding the dream that he had for America.
- “It is a dream deeply rooted in the American dream that one day this nation will rise up and live out the true meaning of its creed… that all men are created equal.”
- He unfolded the dream further by saying, “I have a dream my four little children will one day live in a nation where they will not be judged by the colour of their skin but by the content of their character.”
- He ended the speech with the old Black spiritual that gave them hope against all hopes, “Free at last! Free at last! Thank God Almighty, we are free at last!”
- The Civil Rights Movement
- King’s contribution to the Civil Rights Movement was remarkable.
- There have been many African-American leaders who have propagated the message of freedom and dignity since the mid-19th century.
- Among them, Dr. King was unique; he changed the very architecture of the movement. He added flesh to these insightful ideas by leading a relentless and nonviolent movement.
- He was fully aware that his majestic dream could never be realised without galvanising all those who have the same vision.
- The movement adapted ideas from India’s forays into civil disobedience.
- Right through the movement, Dr. King strived to be the conscience and unifier of a nation that was deeply divided on racial lines.
- He bridged the gulf between the dream and reality.
- King’s major contribution to the U.S. in general and African-Americans in particular is in invigorating the benchmarks of equality, justice and dignity.
- The power of these illuminating ideas and the tenacious movement eventually resulted in a number of path-breaking laws such as Civil Rights Act of 1964 and Voting Rights Act of 1965, which ended several vestiges of racial discrimination and led to the empowerment of African-Americans like never before.
Conclusion:
The teachings of Dr. King will remain a moral compass for the generations to come. Today, as the world battles climate change, religious bigotry and rising intolerance, world leaders have much to learn from these tall leaders. Their fundamental message was that unless we learn to put aside our differences and work together, we will never create a better world. The need of the hour is to inculcate such values in individuals through value-based education, moral parenting and socialization.
Topic: ethical issues in international relations and funding;
Reference: Ethics by Lexicon publications.
Why the question:
The question is part of the static syllabus of General studies paper – 4.
Key Demand of the question:
To examine as to how morality acts a check on international relations by being a check on national power.
Directive:
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin with definition of international morality.
Body:
International Morality consists of moral principles which are endorsed by a number of nations. The rules of customary International Law reflect International Morality. One of the major sources and sanctions of International Law has been International Morality.
Explain that the behaviour of states is regulated by International Law and International Morality, the former as the legal code and the latter as the moral code. Both these codes constitute important and valuable limitations on the national power of each state and, as such, perform the essential function of maintaining order in international relations.
Discuss its relevance in international politics.
Conclusion:
Conclude with way forward.
Introduction:
International Morality consists of moral principles which are endorsed by a number of nations. The rules of customary International Law reflect International Morality. One of the major sources and sanctions of International Law has been International Morality.
Body:
- International Morality acts as a factor or limitation of international relations. It acts as a limitation on National Power.
- But at the same time, it can enable a nation to project and justify its policies as policies based on moral principles.
- Nature of International Morality in international relations.
- Human behaviour in society is regulated by moral and legal norms which are the basis of order in society.
- These impose duties on each man to respect the rights of others and hence enlarge the freedom of all.
- Moral norms are based upon social sanctions, whereas legal norms are based upon the sanctions of force.
- Together these perform the function of regulating human behaviour in the interest of social good.
- Likewise, in the international community, the behaviour of states is regulated by International Law and International Morality, the former as the legal code and the letter as the moral code.
- Both these codes constitute important and valuable limitations on the national power of each state and, as such, perform the essential function of maintaining order in international relations.
- Since rules of International Law do not enjoy the sanctions of force, these are quite near to International Morality.
- In fact, International Morality (Customs, General Principles of State Behaviour, and International Comity, as parts of International Morality), has been an important source of International Law.
- Role of International Morality in International Politics:
- International Morality is a factor which influences the role of international decision makers and acts as a limiting factor of national power. Three Dimensions of Role of International Morality:
- Protection of Human Life in Peace:
- International Politics can be defined as a process of continuous efforts for maintaining and increasing the power of one’s own nation and for keeping in check or reducing the power of other nations. Previously, nations could adopt any method for securing this objective. They could use mass or selected killings as a means.
- But today, under the pressure of International Morality, no nation can resort to such means. Gone are the days when men like Hitler and Mussolini could use immoral methods for achieving political ends. Now moral limitations act as strong barriers against immoral means. Respect for human life is now a sacred principle of international living.
- Protection of Human Life in War:
- Even during a war, nations continue to respect the right to life of the civilians and non-combatants. Gone are the days when belligerents were considered to be free to kill all enemies, whether or not they were members of the armed forces, or else to treat them in any way they deemed fit? Now moral restraints prevent them from undertaking senseless and brutal killings.
- Since the mid-19th century, the conception has become prevalent that war is not a contest between whole population, but only between the armies of the belligerent states. In consequence, the distinction between combatants and non-combatants has become one of the fundamental legal and moral principles governing the actions of belligerents.
- It is now considered a moral and legal duty not to attack, wound, or kill non-combatant civilians purposely. The Hague Conventions with respect to the Laws and Customs of War on Land of 1899 and 1907 and the Geneva Convention of 1949, gave definite and virtually universal legal sanction to this principle.
- The Geneva Convention of 1864 as superseded by the conventions of 1906, 1929 and 1949, have legalized the previously held moral conventions calling for humanitarian treatment of the prisoners of war. The International Red Cross is both the symbol and the outstanding institutional realization of international moral convictions. The attempts at the humanization of warfare have their roots in International Morality.
- Moral Condemnation of War:
- Finally, since 1945, the attitude towards war itself has reflected an ever increasing awareness on the part of most statesmen that certain moral limitations definitely restrict the use of war as an instrument of foreign policy. Statesmen have decried the ravages of war and have justified their own participation in them in terms of self-defence or religious duty since the beginning of history.
- The avoidance of war itself, became an aim of statecraft in late 19th century. The two Hague Peace Conferences of 1899 and 1907, the League of Nations of 1914, the Kellogg-Briand Pact of 1928 and the United Nations, all have accepted the avoidance of war as an objective.
- At the foundations of these and other legal instruments and organisations, there is the conviction that war, especially a modern total war, is not only a terrible thing to be avoided for reasons of expediency, but also an evil thing to be shunned on moral grounds. The condemnation of war has become, a valued rule of international relations and this clearly reflects the role of morality in international relations.
Conclusion:
Thus, International Morality plays an important role in international relations of our times. It has been acting as a limiting factor of national power. The realization towards the need for preserving international peace and for directing efforts towards the promotion of universal human welfare has increased the importance of morality in international relations.
Nations now oppose war as an immoral instrument of national policy. The growing demand for disarmament and arms control also has a strong basis in International Morality. Likewise, the increasing emphasis upon the securing of human rights and freedoms of all the people also derives strength from international moral obligations which civilized states are expected to carry out.