GS Paper 2:
Topics Covered: Constitutional Status
Context:
This article appeared in the Opinion section of Business Standard.
- It talks about the need for giving constitutional status to regulators, rationale behind the present arrangements by the constitution and what are the alternatives available.
Why should Indian regulatory agencies be given constitutional status? – arguments in favour:
- Too much political pressure on Indian regulatory agencies. This affects the way they perform their functions.
- Providing constitutional status would restore symmetry between regulatory agencies and the elected government.
Issues arising by providing constitutional status to regulatory bodies:
This gives rise to cascading effects.
- For instance, we detest government intervention in the affairs of higher educational institutions, stock exchanges (also mini-regulators) banks.
- Should we then confer constitutional status on the IITs, stock exchanges and public sector banks?
- Even if given, that would make for a bulky and potentially an easily amendable Constitution. This violates the original spirit of the Indian Constitution.
Why do some institutions need constitutional backing?
The Constitution fortifies institutions that are designed to exercise checks and balances on elected bodies and safeguard against majoritarian tendencies.
- For instance, it fortifies the position of the higher judiciary, the comptroller and auditor general’s office and the election commission, all of them meant to exercise checks on an elected government.
Why do regulatory agencies not need constitutional backing?
Regulatory agencies do not comprise elected representatives of the people. In fact, many argue that they comprise technocratic elites who make regulations that have the binding effect of the law, license and regulate intermediating firms.
Why do we need regulatory bodies when there are elected bodies?
- To build-up expertise and capacity to regulate complex areas.
- Credible commitment: When the government sets up a regulator, it cedes its sovereign powers to govern that area of the economy. By doing so, it signals its commitment to policy stability.
- Public interest: Sticking to this credible commitment elicits confidence in the public that policymaking in that sector will be driven by public interest and not election cycles.
What are the alternatives available?
- Provide “fair contract terms” for these agencies under their governing law.
- Align the incentives of the persons heading the regulatory agencies with public interest.
- Require them to consistently explain their actions to the public.
- Transparency of conduct is one of the most effective ways of incentivising the agency to act in public interest.
InstaLinks:
Prelims Link:
- Amendments to the Constitution.
- Procedure for Amendment.
- Constitutional Bodies.
- Regulatory Bodies.
Mains Link:
Why there is a need for providing constitutional status to regulatory bodies in the country.
Q.2) Consider the following statements:
- Article 368 in Part XX of the constitution deals with the powers of Parliament to amend the constitution.
- The procedure of amendment of the constitution was borrowed from the South African constitution.
Which of the above statements is/are correct?
- 1 only.
- 2 only.
- Both.
- None of the above.
Sources: Business Standard.
