NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.
General Studies – 1
Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Reference: The Hindu
Why the question:
The article explains why the Supreme Court thinks the Mandal verdict should be referred to a larger Bench.
Key Demand of the question:
Discuss the Mandal judgment and the different views of higher judiciary over Mandal case in recent years.
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 with what Mandal Judgment is.
Body:
The question is straight forward and one must explain in detail the Mandal judgment.
Discuss the issue with quota system, the verdicts so far.
Explain in detail the past judgments on a ceiling for quotas. Take hints from the article and elucidate.
Conclusion:
Conclude with significance of such judgments.
Introduction:
The Second Backward classes commission headed by Indian parliamentarian B.P. Mandal is popularly known as ‘Mandal Commission’. It was established in India in 1979 by the Janata Party government with a mandate to “identify the socially or educationally backward.” It considered the question of seat reservations and quotas for people to redress caste discrimination, and used eleven social, economic, and educational indicators to determine backwardness. The commission recommended that OBCs should get 27% reservation in jobs in central government services and public sector units.
The decision changed the narrative of Caste that had been the basis of unbridled torture and ostracisation into the instrument of social justice. However, it also opened up a Pandora’s Box, leading to widespread opposition and vote bank politics.
Body:
The Mandal movement:
- In 1980, the commission’s report affirmed the affirmative action practice under Indian law whereby members of Other Backward Classes (OBC), were given exclusive access to a certain portion of government Jobs and slots in public universities.
- 27% seats in central government jobs and educational institutions are reserved for the backward classes after Mandal Commission recommendations.
- In 1990, the then Prime Minister V P Singh announced in the Parliament that the recommendations of the Mandal Commission would be implemented, resulting in a paradigm shift in the national polity.
- The announcement witnessed violent protests all over India, especially in northern and western India, and many students immolated themselves in protest and a few of them died as well.
- Following the severe opposition, the issue of OBC reservation reached the Supreme Court in 1992.
- The decision of 27% reservation for OBCs was later upheld by the Supreme Court in the Indra Sawhney Case.
- The SC also stated that the only caste was not an indicator of social and educational backwardness.
- To ensure that benefits of the recommendations of the Mandal Commission percolated down to the most backward communities, the creamy layer criteria was invoked.
the different views of higher judiciary over Mandal case in recent years:
- R. Balaji vs State of Mysore(1962)
- The Supreme Court first ruledthat reservation, being a special provision for backward classes, should not normally exceed 50%.
- It held that the order earmarking 68% of seats in engineering, medical and other technical courses was a “fraud” on the Constitution.
- However, it added that it would not attempt to lay down in an inflexible manner what the proper percentage of reservation should be.
- “Speaking generally and in a broad way, a special provision should be less than 50%.
- The actual percentage must depend upon the relevant prevailing circumstances in each case,” it said.
- State of Kerala vs. N.M. Thomas(1975):
- the majority of the Bench disagreed with the proposition.
- It said the special measures in favour of backward classes in Articles 15 and 16 were not exceptions to the rule.
- On the contrary, these were an emphatic way of ensuring equality of opportunity — to the point of even making reservations.
- Justice S.M. Fazal Ali wrote that in his opinion, the 50% norm in Balaji was only a rule of caution and does not exhaust all categories.
- Indra Sawhney:
- even though most judges agreed that reservation was not an exception to the equality norm, the court ultimately laid down the 50% limit.
- “Just as every power must be exercised reasonably and fairly, the power conferred by Clause (4) of Article 16 should also be exercised in a fair manner and within reasonable limit — and what is more reasonable than to say that reservation … shall not exceed 50% of the appointments or posts…?”
- Citing Dr. B.R. Ambedkar’s opinion in the Constituent Assembly that reservation should be “confined to a minority of seats”, the Bench fixed the maximum permissible quota at 50%.
- At the same time, it said the strict rule could be relaxed in extraordinary situations given the country’s great diversity.
- Supreme Court, (Sept, 2020):
- the Supreme Court stayed the implementation of the 2018 Maharashtra law granting reservation to Marathas in education and job
Way forward:
- Reservation has remained a powerful tool of affirmative action. However, after nearly 75 years of independence, India’s socio-economic polity has not transformed as expected.
- There is an urgent need to ensure that the benefits of reservation reach the really needy and deserving.
- Preparations for Census 2021 are on-going due to the current pandemic. There is still time to create an expert group to evaluate the methodology for collecting caste data and include it in the Census forms.
- Losing this opportunity would leave us hanging for another 10 years without good data for undertaking sub-categorisation of OBC quota or evaluating claims to OBC status by different groups.
- This should probably be taken as a good opportunity to reshape the nature of affirmative action in India.
- The government will have to expand the economic aspect and create fresh opportunities so that people, especially young people, who leave agriculture are absorbed in non-farm sectors.
- It is time that India made a critical assessment of its affirmative action programmes.
- The government should consider the economic, political and social wellbeing of the community and make a balanced decision.
- Problems of these castes should be addressed through government schemes and programmes.
- Progressive steps should be taken to ensure that poorer section among the backward communities get the benefit of reservation system.
- The policy of reservation should be gradually phased out after it serves its purpose.
Topic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
Reference: The Hindu
Why the question:
The Supreme Court said it was a very serious matter if the Centre had really cancelled around three crore ration cards. Thus the question.
Key Demand of the question:
Discuss in what way Inefficiencies in the Aadhaar project should not come in the way of welfare delivery.
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:
Start with background – A petition was filed alleging that the cancellation of ration cards solely because they could not be biometrically linked with Aadhaar led to starvation deaths across the country. It was pointed out that the ration cards of tribal people and the poor were cancelled.
Body:
Discuss the nuances related to the compulsions in the welfare delivery system and highlight the concerns. Even as the government highlighted the redressal mechanism within the Food Security Act as the right place to go, none of the States have appointed independent nodal officers or district grievance redressal officer under the Act.
All the States have granted additional designations to existing officers. In many cases, the officers given additional designations are from the Food Supply Department leading to a conflict of interest.
The Hunger Watch Report of the Right to Food Campaign in 2020 characterised the hunger situation in India as “grave”.
Conclusion:
Conclude with solutions.
Introduction:
Aadhaar number is a 12-digit random number issued by the UIDAI Authority under Aadhaar Act to the residents of India after satisfying the verification process laid down by the Authority. Any individual, irrespective of age and gender, who is a resident of India, may voluntarily enrol to obtain Aadhaar number. There are now 1.24 billion Aadhaar numbers in India, covering approximately 98% of the country’s population (using 2011 Census projections).
Body:
Aadhaar and welfare delivery:
- In 2016, the government mandated its use in welfare programme delivery.
- Proponents argue that Aadhaar, by providing a unique identity and allowing biometric authentication, delivers the gains to actual beneficiaries, instead of fake or duplicates, thereby cutting leakages.
- The expansion in reach has enabled Aadhaar to become an integral component of several flagship government programmes.
- This includes the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the public distribution system (PDS), two of India’s largest welfare programmes where nearly 90% of beneficiaries are linked to Aadhaar (Aadhaar-seeded).
- Jan-Dhan accounts, which are Aadhaar-seeded, are now being used for programme delivery via direct benefit transfer (DBT) and are part of the much-vaunted JAM (Jan Dhan-Aadhaar-Mobile) trinity.
- The 2014-15 Economic Survey heralded JAM as a potential game changer because DBT through JAM can circumvent corrupt intermediaries and reduce market distortions.
- Over the last two years, DBT has significantly picked up. In 2018-19, ₹2 trillion (around 8% of total government expenditure) was delivered through DBT into beneficiary accounts according to the DBT Mission. Within this, transfers for MGNREGS and PAHAL (the LPG subsidy) are the largest components.
- The DBT Mission estimates that Aadhaar and DBT have helped save the government around ₹1.2 trillion since 2014.
Concerns:
- Global impacts not considered:
- The PAHAL savings estimate (₹56,000 crore) does not account for a slump in global oil prices since 2014. The bigger problem, though, is the lack of clarity about the source of Aadhaar-related savings.
- Inclusion-Exclusion errors:
- The government claims that Aadhaar has generated savings by eliminating duplicate and fake beneficiaries. However, savings could simply be a result of Aadhaar excluding genuine beneficiaries.
- In a 2017 study published in the Economic and Political Weekly, economist Jean Dreze and others pointed out that Aadhaar-based authentication in Jharkhand’s PDS has led to serious exclusion problems and prevented vulnerable groups, such as widows and the elderly, from accessing their entitlements.
- State of Aadhaar Report 2017-18, IDinsight, a development consultancy, uses survey data from Andhra Pradesh, Rajasthan and West Bengal to estimate that around two million individuals every month are excluded from the PDS because of Aadhaar-related reasons.
- Privacy and Security concerns:
- Most developed countries have already dropped the idea of having Aadhaar-like identification system to protect people’s privacy.
- Even the US, one of the first countries in the world to have a national identification number for its citizens, does not collect fingerprints or scan iris to create social security number (SSN)
- Unlike India, the US has a privacy law that makes it unlawful for government agencies to deny benefits just because the individual refuses to disclose his SSN.
- Systemic corruption still persists:
- Aadhaar-based authentication increases transaction costs, including time spent collecting grains, and did little to decrease corruption in the PDS
- Technical flaws:
- Aadhaar-related reasons tend to be failures in biometric authentication (for example, fingerprints not being recognized) and connectivity issues, which are particularly acute in rural areas.
- Given these problems, the shift to Aadhaar-based authentication in the PDS has not enjoyed universal support. For instance, in Andhra Pradesh only 55% of beneficiaries’ preferred Aadhaar authentication in the PDS, while in Rajasthan the figure was 67%.
Way forward:
Policy measures:
- Government should assure the citizens that it has the technology and systems to protect the data collected.
- It should assure the citizens of India that it will do everything possible to prevent unauthorised disclosure of or access to such data.
- It should recognise all dimensions of the right to privacy and address concerns about data safety, protection from unauthorised interception, surveillance, use of personal identifiers and bodily privacy.
- Supreme Court’s recent judgement in the Aadhaar case makes Aadhaar mandatory for availing facilities of welfare schemes and government subsidies as it empowers the poor and marginalised.
- An independent and participatory review of the system is long overdue
- A data protection law with strong protective provisions is need of the hour.
Technological measures:
- Designating UID databases as “critical infrastructure”.
- Crafting an encryption policy that specifically addresses encryption for Aadhaar-enabled apps. Security testing of all Aadhaar-enabled applications.
- Encouraging device-level encryption for mobile phones and laptop computers.
- Creating a Computer Emergency Response Team to monitor attacks on Aadhaar.
- Working with the private sector at forums like the International Electronic and Electrical Engineers (IEEE) and the Internet Engineering Task Force to create interoperable security standards for platforms relying on national identity databases.
Conclusion:
Policymakers should focus more on beneficiary experience and the context in which programmes operate in. This, more than fiscal savings, should inform how Aadhaar is deployed to improve programme delivery.
General Studies – 3
Topic: Government Budgeting.
Reference: Indian Express
Why the question:
The article explains in detail how Low spending and focus on fiscal consolidation by the states belie hopes of a public-spending-led recovery.
Key Demand of the question:
Examine how Low spending and focus on fiscal consolidation by the states belie hopes of a public-spending-led recovery.
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:
Explain briefly the context of the question.
Body:
The answer body must have the following aspects covered:
Broad state-level budget trends and their implications- based on 11 states that account for a little over 60 % of India’s Gross Domestic Product (GDP). Decline of total expenditure: The Revised Estimates (RE) pegs their total expenditure to decline by around 6 % in 2020-21 from their Budget Estimates (BE). Reasons – Collapse in state revenues and decline in the Central transfers, Reluctance of high-income states (like Gujarat, Maharashtra and Karnataka) to ramp up spending. Rise in revenue deficits.Increased borrowings: Centre had raised the ceiling on their market borrowings from 3 to 5% of GSDP.Aggressive fiscal consolidation etc.
Conclusion:
For a broad-based recovery in a larger economy, greater government spending in the coming years is required.
Introduction:
Introduction
Over the past few weeks, several state governments have presented their budgets for the financial year 2021-22. States have spent less in this year, may focus on fiscal consolidation in the year to come. This belies hopes of a public-spending-led recovery putting India’s economic recovery at higher risk.
Body
Low-spending and focus fiscal consolidation
- The collapse in states’ revenues and transfers from the Centre, coupled with a “reluctance” among some states to borrow more to spend, has meant that at the aggregate level spending by these states in 2020-21 will end up being lower than what they had budgeted for before the onset of the pandemic.
- The revised estimates peg their total expenditure to decline by around 6 per cent in 2020-21 from their budget estimates.
- The additional spending by the central government, over and above its budget estimate (which was around Rs 2 lakh crore if one discounts allocations meant for clearing past dues as that does not amount to a demand stimulus), is likely to be offset by the decline in spending by states.
- This year, states which typically run revenue surpluses will run revenue deficits. As is the case with the Centre, states have, remarkably, budgeted for aggressive fiscal consolidation next year. The average fiscal deficit across these states is expected to fall by more than 1 percentage point of GSDP, more than twice the decline recommended by the 15th finance commission.
- This aggressive consolidation next year is expected to be achieved not by expenditure compression, as is the case with the Centre, but by significant revenue enhancement.
- However, some revenue assumptions are quite ambitious, to say the least — some states have pegged their GST and VAT collections to grow far in excess of 30 per cent in 2021-22.
Impact of subdued public-spending led recovery
- Subdued general government spending during these tumultuous years heightens the risks to economic recovery.
- Considering the possibility of the economy exiting from this period with lower medium-term growth prospects, there is a strong case for greater government spending during these years.
- The economic outlook isn’t as rosy once the base-effect-induced bounce in growth next year wears off.
- The roadmap laid out by the 15th Finance Commission indicates this possibility. Nominal GDP growth is expected to slow down from 13.5 per cent in 2021-22 to 9.5 per cent in 2022-23 — implying a real GDP growth of only around 5 per cent.
- Mistaking a rebound in economic activities and that too in the formal part of the economy for a broad-based recovery in the larger economy could prove to be a costly error.
- The risks of consolidating too much too soon, at the cost of medium-term growth prospects, could end up being counterproductive for both growth and debt sustainability.
Conclusion
Considering the starkly uneven nature of the economic recovery, there is a strong case for greater government spending now, for allocating more resources to ameliorate the condition of those at the bottom of the income distribution. This policy stance was required at all levels of government. Few will fault the government for spending more to counterbalance the effects of a once-in-a-century crisis.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Reference: The Hindu
Why the question:
The Union government has announced its intent to privatise Public Sector Banks (PSBs) in the recent Budget session.
Key Demand of the question:
Explain in what way the Central government’s bid to privatize Public Sector Banks (PSBs) may not be the finest way forward to address the issue of alarming rise of NPAs in the Banking sector
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:
The failure of innumerable private banks around the world, challenge the notion that only private banks are efficient. The large volumes of NPAs observed in private corporate entities also challenge the notion of private enterprises being the epitome of efficiency.
Body:
The answer body must have the following aspects covered:
- Explain the Positive role played by public banks.
- Threat posed by privatization of banks.
- Unfair criticism of Public sector banks.
- Suggest solutions to address the issue.
Conclusion:
Conclude with way forward; Privatisation of PSBs is not a definitive panacea for the problems of the banking sector in India.
Introduction:
In the recent Budget session, the Union government announced its intent to privatise Public Sector Banks (PSBs). While improving efficiency has been cited as the reason for this move, it is not clear whether privatisation brings efficiency or reduces associated risks.
The government front-loaded Rs 70,000 crore into government-run banks in September 2017, Rs 80,000 crore in in FY18, and Rs 1.06 lakh crore in FY19 through recapitalisation bonds. However, these moves have not translated into better health of the banks.
Body:
Background:
- Bank nationalisation ushered in a revolution for India’s banking sector.
- Areas that had so far been neglected, including agriculture, employment-generating productive activities, poverty alleviation plans, rural development, health, education, exports, infrastructure, women’s empowerment, became priority sectors for these banks.
- The move also helped in promoting more equitable regional growth, and this is evident from RBI data.
- There were only 1,833 bank branches in rural areas in the country in 1969, which increased to 33,004 by 1995 and continued to grow over the next decades.
- Banking services also reduced the dependence on moneylenders in rural regions.
- Nationalised banking improved the working conditions of employees in the banking sector, as the state ensured higher wages, security of services, and other fringe benefits.
Need for privatisation
- Years of capital injections and governance reforms have not been able to improve the financial position of in public sector banks significantly.
- Many of them have higher levels of stressed assets than private banks, and also lag the latter on profitability, market capitalisation and dividend payment record.
- Privatisation of two public sector banks will set the ball rolling for a long-term project that envisages only a handful of state-owned banks, with the rest either consolidated with strong banks or privatised.
- This will free up the government, the majority owner, from continuing to provide equity support to the banks year after year.
Critical Analysis: Privatisation may not address the issues faced by PSB’s
- In the context of privatisation and efficiency, it is unfair to blame PSBs alone for the alarming rise of NPAs. On the contrary, stringent measures are required to recover large corporate stressed assets, which is a key concern for the entire banking sector.
- This must include strong recovery laws and taking criminal action against wilful defaulters.
- So far, the government has not exhibited a firm willingness to implement these measures.
- Wilful default by large corporate borrowers and subsequent recovery haircuts, imposed through the ill-conceived Insolvency and Bankruptcy Code, has resulted in a heap of write-offs, putting a big dent on the balance sheets of PSBs.
- This has not only affected the profitability of the banks, but has also become an excuse to allege inefficiency.
- Unlike the mega-merger exercise among PSBs carried out last year, the privatisation of PSBs is a politically sensitive move.
- Bank employee trade unions have already raised objections against the proposed privatisation move.
- Trade unions continue to have a say in the running of these institutions, which will force the government to convince the trade unions about the merit of the privatisation agenda.
Way forward:
- If the government exhibits strong political will (convincing the influential trade unions) to proceed with the privatisation agenda, it will have to first implement the bad bank plan to address the problem of NPAs in PSBs and clean up their balance sheets.
- If the books are healthy, there could be potential takers for these banks among NBFCs and business houses for these banks.
- The government, along with the RBI, will have to then work out reasonable terms for the privatisation of these banks.
- Buyers will be more interested in taking over healthier, well-run banks rather than taking up the burden of weak, poorly governed banks. PSB privatisation has been a long-pending promise.
- The PJ Nayak panel had recommended this way back in 2014 and government must scrutiny it once more.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Reference: The Hindu
Why the question:
March 31st will mark the end of the term of monetary policy framework agreement between the Centre and the Reserve Bank of India (RBI) on inflation targeting. The given article evaluates the effectiveness of the monetary policy.
Key Demand of the question:
Discuss the significance of inflation targeting while discussing the concerns over the efficacy of inflation targeting.
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 with a brief background of the context in the question.
Body:
Discuss the concept of Inflation targeting first – Inflation control is a legitimate objective of economic policy given the correlation between inflation and macro-economic stability. Inflation targeting is one of the many inflation control policies.
Then move onto explain that Inflation control is a legitimate objective of economic policy given the correlation between inflation and macro-economic stability. Inflation targeting is one of the many inflation control policies.
Discuss the impact of inflation targeting.
Conclusion:
Inflation control is a legitimate objective of economic policy given the correlation between inflation and macro-economic stability. Inflation targeting is one of the many inflation control policies.
Introduction:
Inflation Targeting(IT) is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation. The principle of inflation targeting is based on the belief that long-term economic growth is best achieved by maintaining price stability, and price stability is achieved by controlling inflation. It is in-line with Urjit Patel Committee recommendations. An amendment to RBI Act by the Finance Bill, 2016, has made IT as the primary objective of RBI and it is also accountable in case of failure.
Body:
The Central Government has notified 4 per cent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent.
The Reserve Bank of India, recently in the Report on Currency and Finance for FY21, has said the current inflation target of 4% with a +/-2% tolerance band is appropriate for the next five years.
Important observations made:
- Trend inflation had fallen from above 9% before flexible-inflation targeting (FIT) to a range of 3.8-4.3 % during FIT, indicating that 4% is the appropriate level of the inflation target.
- An inflation rate of 6% is the appropriate upper tolerance limit for the target.
- A lower bound above 2% can lead to actual inflation frequently dipping below the tolerance band while a lower bound below 2% will hamper growth, indicating that an inflation rate of 2 % is the appropriate lower tolerance bound.
Concerns over efficacy in inflation targeting:
- Logical vulnerabilities:
- However, what has remained hidden in public discourse is the economic model that underlies inflation targeting.
- This model revolves around the proposition that inflation reflects “overheating”, or economic activity at a level greater than the “natural” level of output, having been taken there by central banks that have kept interest rates too low, at a level lower than the “natural” rate of interest.
- From this follows the recommendation that the cure to inflation is to raise the rate of interest set by the central bank, the so-called policy rate, which in India is termed ‘repo’ rate.
- A feature of this theory of inflation is that its central construct, the natural level of output, is unobservable.
- This makes it next to impossible to verify the explanation, which is also self-referential.
- Despite this logical vulnerability, inflation targeting is a reality in that it is the Centre’s stated policy of inflation control.
- Mirage of success:
- Inflation targeting has been successful on the grounds that the inflation rate has remained within the band agreed to between the government and the RBI, and whether it has been achieved by “anchoring inflation expectations”.
- However, Inflation in India entered the prescribed band of 2% to 6% two years before inflation targeting was adopted in 2016-17.
- In fact, inflation had fallen steadily since 2011-12, halving by 2015-16.
- This by itself suggests that there is a mechanism driving inflation other than what is imagined in inflation targeting.
- The view is further strengthened by the finding that the decline in inflation over the five years concerned was led by the relative price of food.
- While falling food-price inflation per se does not rule out the possibility that expectations of inflation may have fallen in this period.
- But it would be difficult to explain why expectations would have fallen so sharply even in the absence of inflation targeting, considered essential for anchoring expectations.
- Finally, it is the flaring up of both inflation and inflation expectations after March 2020, when the COVID-19 lockdown was announced, that makes it difficult to believe the thesis of an “overheating” economy.
- On the other hand, we can explain the flaring up of inflation in terms of food prices, as supply chains were disrupted due to the lockdown.
- Conflicting patterns shown:
- Over the past five years, inflation in India has been controlled via inflation targeting and its benefits will be analyzed through five variables, namely growth, private investment, exports, non-performing assets (NPAs) of commercial banks, and employment.
- Growth:
- The economy’s trend rate of growth actually began to decline after 2010-11.
- So, inflation targeting could not have caused it, but it is of interest that sharply falling inflation could do nothing to revive growth, belying the proposition that low inflation is conducive to growth.
- Investment:
- For investment, there is reason to believe that higher interest rates, the toolkit for inflation targeting, may have been harmful.
- The swing in the real interest rate of over 5 percentage points in 2013-14 was powered further in 2016, when inflation targeting was adopted, and could have contributed to a declining private investment rate.
- It is interesting that policy entrepreneurs assert that the benefits of low inflation may be considerable for private investment.
- Export and employment:
- Exports and employment performed fairly poor since inflation targeting became official.
- NPA’s (non-performing assets):
- It has long been recognized that a central bank focusing on inflation may lose control of financial stability.
- NPAs have grown since 2016, and the cases of IL&FS, PMC Bank, PNB and YES Bank suggest that poor management and malfeasance in the financial sector could escape scrutiny when the central bank hunkers down to inflation targeting.
Way Forward:
- In the conduct of monetary policy in an open economy setting, foreign exchange reservesand associated liquidity management are key, there is a need to enhance the RBI’s sterilisation capacity to deal with surges in capital flows.
- The primary focus of FIT on price stability augurs well for further liberalisation of the capital account and eventual internationalisation of the Indian rupees.
General Studies – 4
Topic: Emotional Intelligence
Reference: Ethics, Integrity and Aptitude
Why the question:
The question is premised on the theme of emotional Intelligence.
Key Demand of the question:
Discuss if cultural moorings influence EI and explain how one can differentiate the applicability of Emotional Intelligence in Indian society from that of Western society
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:
Start with the definition of EI.
Body:
Emotional intelligence is the ability to identify and manage our own emotions and the emotions of others. Studies have shown that a part of emotional intelligence ability is innate while another part can be changed through learning and experience; this later part dominated by culture provides the structures, guidelines, expectations, and rules to interpret behaviors.
Discuss how EI gets affected by cultural values. Culture affects emotional functioning by identifying which emotions are negative or positive, when emotions should be expressed and even how emotions should be displayed.
Differentiate the application of Emotional Intelligence in Indian and western.
Conclusion:
Conclude with way forward.
Introduction:
Emotional intelligence or EI is the ability to understand and manage your own emotions, and those of the people around you. Emotional intelligence is the ability to perceive emotions, to access and generate emotions so as to assist thought, to understand emotions and emotional knowledge, and to reflectively regulate emotions so as to promote emotional and intellectual growth.
Body:
Emotional intelligence and cultural tie-ups:
- Culture can have a profound impact on the way in which people display, perceive, and experience emotions.
- The culture in which we live provides structure, guidelines, expectations, and rules to help us understand, interpret, and express various emotions.
- A “cultural display rule” is a culturally specific standard that governs the types and frequencies of emotional displays considered acceptable by a given culture.
- For example, in many Asian cultures, social harmony is prioritized over individual gain, whereas Westerners in much of Europe and the United States prioritize individual self-promotion.
- Cultural scripts dictate how positive and negative emotions should be experienced and displayed; they may also guide how people choose to regulate their emotions, ultimately influencing an individual’s emotional experience.
- Cultural contexts also act as cues when people are trying to interpret facial expressions. This means that different cultures may interpret the same social context in very different ways.
- Despite different emotional display rules, our ability to recognize and produce basic facial expressions of emotion appears to be universal. In fact, research has discovered seven basic types of emotions expressed in human faces: sadness, happiness, disgust, surprise, anger, contempt, and fear.
- Complex emotions such as jealousy, love, and pride are different from basic emotions and are more likely to be dependent on cultural influences than are more basic emotions.
The application of emotional intelligence in Indian society from that of western society:
In western society:
- In western perspective, the concept of EI was explained in terms of
- The proposed scientific models pose theoretical explanations of the components included in the concept of emotional
- These theoretical approaches or models try to discover the emotional components that underlie emotionally intelligent people, the mechanisms and the processes that set off the use of these abilities in everyday
- Various psychologists have suggested different models of emotional intelligence.
- Traditionally, the West has defined intelligence in terms of the speed and accuracy of cognitive (mental) skills within an academic setting. But successful adaptation in many societies does not translate to the Western notion of academic intelligence.
In Indian society:
- Contrary to western conceptualization of self, there exists a relational and situational sensitive understanding of
- Non-western societies like India, China, and Japan perceive a person connected to others and less differentiated from them.
- The Indian view of self is characterized more as
- Emotions are not distinct biological events, but are influenced and shaped through social, cultural and linguistic processes.
- the “concept of emotional intelligence in the Indian context is embedded in its highly valued social concerns, virtues, religious traditions, and cultural practices”.
- The Indian concept of EI focuses on the role of significant others including the guru, family and larger society in shaping and developing one’s emotional
- Certain traits valued in the Indian culture like respecting elders, caring, kindness, compassion and peacefulness involves typical emotional expressions.
- These are grounded in the cultural traditions and have been passed on from one generation to the next in various ways.
Conclusion:
Thus, Emotional intelligence has some impact of the culture and vice-versa.
Topic: good governance
Reference: Ethics, Integrity and Aptitude
Why the question:
The question is based on the theme of Governance.
Key Demand of the question:
Discuss the interlinkages between Media and good governance. Evaluate the role played by media in facilitating the same. Discuss the challenges presently faced by media and suggest way forward.
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:
Introduce with relating media and good governance; Media is called the fourth estate of democracy. Presently the trinity of print, television and social media has a close relationship with the welfare of people and facilitating good governance.
Body:
The answer body must have the following aspects covered:
- Discuss the key roles played by the media in facilitating good governance
- Highlight the challenges presently faced by the media.
- Suggest some steps to overcome the challenges.
Conclusion:
Conclude with solutions.
Introduction:
The media is supposed to exist to maintain the bridge between the government and the people. The press is also called the fourth pillar of democracy.
Body
Media and its role in good governance:
- Media acts as a watchdog of public interest in a democracy. It plays an important role in a democracy and serves as an agency of the people to inform them of the events of national and international significance.
- Its importance in influencing readers can be gauged by the role it played during the freedom struggle, politically educating millions of Indians who joined the leaders in their fight against the British imperialism.
- It is like a mirror which reveals us the bare truth and harsh realities of life. A news media, be it in print form or TV/radio, its main job is to inform people about unbiased news without any censorship or tampering.
- For the democratic system to operate to its full potential, the participation on a part of the public is imperative, that successively needs circulation of reliable info to the masses on numerous public problems. This is where the mass media comes as fourth pillar of democracy.
Responsibilities of media in democracy:
- Journalism is a profession that serves. By virtue, thereof it enjoys the privilege to ‘question’ others.
- The fundamental objective of journalism is to serve the people with news, views, comments and information on matters of public interest in a fair, accurate, unbiased: and decent manner and language.
- The press is an indispensable pillar of democracy. It purveys public opinion and shapes it. Parliamentary democracy can flourish only under the watchful eyes of the media. Media not only reports but acts as a bridge between the state and the public.
- With the advent of private TV channels, the media seems to have taken over the reins of human life and society in every walk of life.
- The media today does not remain satisfied as the Fourth Estate, it has assumed the foremost importance in society and governance. While playing the role of informer, the media also takes the shape of a motivator and a leader.
- Such is the influence of media that it can make or unmake any individual, institution or any thought. So, all pervasive and all-powerful is today its impact on the society. With so much power and strength, the media cannot lose sight of its privileges, duties and obligations.
Challenges faced by media:
- The issues of paid news, media trial, non-issues being presented as real news while the real issues are sidelined, the news is being doctored and fact distortion for profits and political favour, fake news, yellow journalism are important concerns which are influencing public and impacting national security. For instance, fear mongering through media has led to mob lynchings, attacks on the migrant population.
- The absence of objective journalism leads to the false presentation of truth in a society which affects the perception and opinions of people. As observed in the case of Cambridge Analytica case, the biased news coverage on social media platform affected the Presidential elections in the U.S.
- The chase for sensationalism and higher TRP rates as observed in the coverage of 26/11 terrorist attacks in India risked the internal security of the nation. The sensationalism-driven reporting compromised the identities of rape victims and survivors despite SC guidelines.
- Trial by media does not follow the due process of law and can reduce the public trust in institutions of governance like the judiciary.
- Paid news and fake news can manipulate public perception and can instigate hatred, violence, and disharmony among the various community within society.
- With the advent of social media, technological changes, the reach of media has grown profoundly. Its reach and role in impacting public opinion have made it even more important to ensure its objectivity, non-partisanship calls for the enforcement of journalistic ethics.
Measures needed:
- Senior print and television journalists must speak write and expose very clearly the issues plaguing the press in India.
- Implementing the recommendations of TRAI with regard to media ownership and investment disclosure norms would help in maintaining transparency required for the news media sector.
- Workplace Harassment, Insecurity of Jobs, Gaps in Pay are the other areas which needs improvement.
- Ownership restrictions on holdings of media companies have to be legislated.
- Basic regulation for digital media outlets like compulsory and online registration of details need to be implemented strictly.
- Robust surveillance and compliance mechanism need to be implemented effectively so that source of news is verified before
- Journalists must resist the urge to sensationalise matters. They must keep a global perspective, and pay attention to the words they use,
the examples they cite, and the images they display. - They must avoid speculation and finger-pointing in the immediate confusion following an attack when nothing is known, yet the demand for information is perhaps the strongest of all.
- They must consider carefully the fact that there is something inherent in terrorism as a violent act that provokes a fear in many that is far disproportionate to the actual level of risk.
- And most of all, they must avoid fostering division and hatred and radicalisation at both margins of society.
Conclusion:
It is therefore important that for the media to carry out their important role effectively and efficiently, the media should operate within a well-defined code of ethics while maintaining their freedom and editorial independence. Since irresponsible journalism invites restriction, robbing off the media its freedom, professional conduct and ethical practice are vital to safeguarding freedom of the media and ensuring that public trust invested in the media is sustained.
As JS Mill said, everyone’s opinion must be heard, even if he is a mad man. Because every opinion contains a part of truth.
