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
General Studies – 1
Topic: Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.
Difficulty level: Tough
Reference: Indian Express , Insights on India
Why the question:
Two sites in Gujarat have made it to the tentative list of UNESCO World Heritage sites: Vadnagar, and the Sun Temple of Modhera, both in the Mehsana district of northern Gujarat.
Key Demand of the question:
To write about the role played by the UNESCO world heritage sites in conservation efforts.
Structure of the answer:
Introduction:
Begin by writing the objectives of UNESCOs world heritage sites (WHS).
Body:
In the detail, write about the issues faced by sites having cultural, historical and scientific significance in present day – poor conservation, negligence, encroachment etc.
Next, write about the measures taken by UNESCOs WHS in order to overcome the above.
Next, write about the successes and criticism of UNESCOs WHS programmes. Substantiate with examples.
Conclusion:
Conclude by writing the bitter lessons learnt in 1962 are relevant in modern day geopolitics.
Introduction
A World Heritage site is classified as a natural or man-made area or a structure that is of international importance, and a space which requires special protection. These sites are officially recognised by the UN and the United Nations Educational Scientific and Cultural Organisation, also known as UNESCO. UNESCO believes that the sites classified as World Heritage are important for humanity, and they hold cultural and physical significance. They are protected under a international treaty called the Convention concerning the Protection of the World Cultural and Natural Heritage, adopted by UNESCO in 1972.
Two sites in Gujarat have made it to the tentative list of UNESCO World Heritage sites: Vadnagar, and the Sun Temple of Modhera, both in the Mehsana district of northern Gujarat.
Body
Types:
- Cultural heritage sitesinclude historic buildings and town sites, important archaeological sites, and works of monumental sculpture or painting.
- Natural heritage sitesare restricted to natural areas.
- Mixed heritage sitescontain elements of both natural and cultural significance.
Role of UNESCO in context of World Heritage Sites
- It seeks to encourage theidentification, protection and preservation of cultural and natural heritage around the world considered to be of outstanding value to humanity.
- This is embodied in aninternational treaty called the Convention concerning the Protection of the World Cultural and Natural Heritage, adopted by UNESCO in 1972.
- The most significant feature of the 1972 World Heritage Conventionis that it links together the concepts of nature conservation and the preservation of cultural properties in a single document.
- The Convention recognizes the way in which people interact with nature, and the fundamental need to preserve the balance between the two.
Threats to Indian Art Heritage:
- Theft: The incidents of thefts have been observed usually from unprotected monuments, ancient temples. The thefts cases have also been seen in the protected monuments and museums as well. It is due to negligence of security guards in museums, monuments etc.
- Smuggling: illicit traffic and smuggling in antiquities. Illicit traffic is motivated often by profit and sometimes by the demand for luxuries.
- Tourism: Unregulated tourism, tourist activities run by touts, private agents have affected the art heritage places. For instance, the Culture Ministry of India has reported that up to 24 Indian monuments have been declared “untraceable” or “missing” by the Archaeological Survey of India (ASI).
- Issues with security of museums: Most of the museums are poorly guarded due to shortage of manpower leading to theft of artefacts, fire accidents etc.
- Lack of public awareness: This leads to poor maintenance, vandalism, spoiling the monuments artefacts. Replacing the structures or building structures close to the monuments leading to
- Duplication: Fakes of paintings and art forms leading to threat to livelihoods of artists.
- Poor Maintenance: The state of the wall paintings in Ajanta caves is continuously getting worse, which can be attributed to humidity as well as to a lack of care.
- Encroachment of monuments: Another miss from the ministry has been encroachments of monuments. For instance in India, over 278 centrally protected monuments have been encroached upon or have illegal occupants, as per government data.
Way forward
- Cultural awareness:
- Curriculum modification – Identification and inclusion of heritage as an asset in school, Open departments of Heritage management on the lines of Ahmedabad University
- Introduction of a compulsory offline and online training for tourism purposes willing to undertake ventures.
- Heritage depiction and promotion through immersive technology & augmented reality
- Re-Classify heritage and announce awards for people with exceptional heritage sense.
- Greater involvement of universities in schemes promoting arts and culture as well as inclusion of Fine Arts as a subject in universities.
- Adaptive reuse of heritage sites:
- Restoring the historical sites in the form of festivals and inducing festivity link perceptions.
- Recognizing ‘cultural heritage tourism’ as an upcoming industry by building cultural resources with an adaptation of scientific and technological knowledge to local circumstances as well as forming partnerships between local and global bodies.
- Strengthening Legislations and Initiatives:
- The Antiquity Act of 1947, Antiquities and Art Treasures Act of 1972 particularly provide for the prevention of smuggling and illegally dealing in antiques.
- Recent bill to amend The Ancient Monuments and Archaeological Sites and Remains Act which allowed construction within 100m of the protected monuments should be avoided.
- In 2015, the ministry launched an initiative of e-ticketing services in over 116 monuments under the ASI and launched an initiative to digitise cultural resources.
- Strengthening institutions:
- The CAG report on Preservation and Conservation of Monuments and Antiques clearly indicates that the Archaeological Survey of India (ASI) for this purpose needs to be more proactive and vigilant in its efforts and the ministry needs to develop an aggressive strategy for the same
- Tapping of the Public —Private Partnership models for sustenance of Arts and Crafts.
- Setting up at least one museum in each district with different chambers for visual and other forms of art, architecture, science, history and geography with regional flavour.
- Artistes from the field of architecture, sculpture, painting, handicrafts, puppetry, music, dance, theatre, and literature will be graded by the Centre on the basis of their performance.
Conclusion
It is the duty of every citizen to value and preserve the rich heritage of our composite culture. The art and culture of our nation are a vast continuum, evolving incessantly since time immemorial. Naturally, preservation and conservation of India’s rich cultural heritage and promotion of all forms of art and culture, both tangible and intangible, including monuments and archaeological sites, anthropology and ethnology, folk and tribal arts, literature and handicrafts, performing art of music-dance-drama and visual arts of paintings-sculpture-graphics is essential and assumes a lot of importance.
Topic: population and associated issues.
Difficulty level: Moderate
Reference: Indian Express , Insights on India/
Why the question:
Sometime in April 2023, we estimate that India’s 1.43 billion people will exceed China’s population.
Key Demand of the question:
To write about different approaches to be taken in education, health and skill development to create welfare and prosperity for the country.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by giving context and citing statistic regarding the population growth in India.
Body:
In the first part, write about the challenges that India will face because of it growing population.
Next, write about the various different approaches in education, health and skill development that need to be taken in the order ensure there is equitable growth and development resulting in a welfare state.
Conclusion:
Conclude by writing a way forward.
Introduction
India is projected to become the most populous country in the world by April 2023. In 2050, India’s population is projected to be 1.69 billion, which will be higher than that of China. Undoubtedly, India has a population problem, but any strategy to change fertility rates should be carefully thought out. India’s population concern is largely restricted to Bihar, UP, Jharkhand, Rajasthan and MP.
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Statistics on population
- The National Population Policy 2000 affirmed a commitment to achieve replacement levels of fertility (total fertility rate of 2.1) by 2010.
- Ten states — Karnataka, Punjab, Gujarat, Assam, Telangana, Andhra Pradesh, West Bengal, Maharashtra, Tamil Nadu and Kerala — and Jammu and Kashmir, have achieved this goal, albeit much delayed.
- Kerala and Tamil Nadu had accomplished it decades earlier. This fertility decline over half of India has cut across all sections of society — the privileged and the poor, those educated or not, and the high and low caste.
- The National Family Health Survey-4 has shown how TFR has reduced even among illiterate women from all religions in the southern states — even in Kerala and Telangana which have a high proportion of Muslims.
- India has entered a demographic sweet spot that will continue for another two to three decades. Half of India’s population is under 29 years of age, which means that in this period, a greater proportion of young people will drive India’s economic growth and social progress.
- So, they must not only be healthy, knowledgeable and skilled but must also be provided with the rights and choices to develop to their fullest potential, including, and especially, sexual and reproductive health and rights (SRHR).
Challenges that would be faced due to imploding population in India
- Health:
- Healthcare provisions in India is grossly inadequate and access to healthcare is highly inequitable. Lack of efficient public healthcare and burden of out-of-pocket health expenditures reduces people’s capacity or disables them from investing in the human capital of their children.
- ineffective functioning (corruption and leakages) of the public distribution system (PDS), growing economic inequalities and lack of nutritional awareness pose challenges in combating malnutrition
- Education:
- Basic literacy (the ability to read and write) in the overall population has progressed modestly. However, there is persistent gender differentials, and major differentials by caste and religion.
- The state of functional literacy and professional skills is poor. Indian graduates have low employability and does not meet changing economic structure or support global competitiveness.
- Rising Inequality:
- In India, a large portion of the population is below the poverty line, therefore, they do not have easy access to primary health and education.
- There is growing inequality across social groups and income groups which translates itself into poor socio-economic mobility.
- Lack of socioeconomic mobility hinders human capital development and traps a large section of population to be in the vicious circle of poverty.
- Lack of Skilling:
- According to the National Sample Survey, out of the 470 million people of working age in India, only 10% receive any kind of training or access to skilled employment opportunities.
- There’s a huge mismatch between demand and supply when it comes to skilled workforce and employment opportunities, which could place a strain on the economy in the long run
- Inadequate use of knowledge bases from technology developments:
- There is a disconnect between India’s rate of technological growth and ability to distribute the gains from it by adequately focusing on skilling and health.
- The use of technical advancements has been concentrated in few sectors and benefits accrued by a few elitist sections of the society.
- Jobless growth:
- India’s high growth rate phase (2004-05 to 2010-11) has created significantly fewer jobs as compared to previous decades of economic growth.
- Around 47 % of India’s population is still dependent on agriculture which is notorious for underemployment and disguised unemployment.
- Majority of the workforce is employed by the unorganized sector where workers are underpaid and lack any kind of social security.
- Falling female labour force participation:
- According to data from International Labour Organization and World Bank, India’s female labour force participation rates have fallen from 34.8 % in 1990 to 27 % in 2013.
- Socio-cultural factors and rising family incomes have been identified as the main reasons for this decline.
- Another appalling concern is that a significant proportion of qualified women drop out of the workforce for reasons ranging from no suitable jobs in the locality—particularly in rural areas—to family responsibilities and marriage.
A differential planning approach is needed:
- To engineer an inclusive and sustainable growth for India, the social infrastructure like education, health and social protection are being given utmost priority by the Government
- The gaps in the expenditure on social infrastructure like health and education should be closed by strengthening the delivery mechanisms of the government initiatives. Protecting and investing in people’s health, education, and skilling is vital for reducing income inequality, and sustained inclusive economic growth.
- India needs to increase its spending on health and education. As recommended by the National Health Policy 2017 and the NEP 2020, India needs to increase its spending on health and education to at least 2.5 % in 6 % of GDP respectively from its current levels. Enhancing policies to maintain and even increase health and longevity will therefore be necessary.
- The current situation calls for more and better schools, especially in rural areas. It also calls for better transportation links between rural areas and regional urban hubs.
- India has to invest more in human capital formation at all levels, from primary education to higher education, cutting-edge research and development as well as on vocational training to increase the skill sets of its growing working-age population.
- The flagship schemes such as Skill India, Make in India, and Digital India have to be implemented to achieve convergence between skill training and employment generation.
- Bridging the gender gaps in education, skill development, employment, earnings and reducing social inequalities prevalent in the society have been the underlying goals of the development strategy to enhance human capabilities.
- Improved infrastructure, skill development, access to easy finance, reducing barriers to entrepreneurship and forums for mentorship of emerging entrepreneurs in partnership with corporates are some of measures.
- Decentralized models of development: Social policies for each state must be differentiated to accommodate different rates of population growth. The populations in south and west India are growing at a much slower pace than in the central and eastern states.
Conclusion:
A multi-pronged approach is imperative to reap the demographic dividend despite population rise. There is also a need to engage with the youth and create an enabling environment for entrepreneurship. The demographic dividend offers them a unique opportunity to boost living standards, but they must act now to manage their older populations in the near future by implementing policies that ensure a safe and efficient transition from the first demographic dividend to the second demographic dividend.
Topic: Awareness in the fields of IT, Space, Computers, robotics, Nano-technology, biotechnology and issues relating to intellectual property rights.
Difficulty level: Moderate
Reference: The Hindu , Insights on India
Why the question:
More than 140 experts and dignitaries have signed an open letter published by the Outer Space Institute (OSI) calling for both national and multilateral efforts to restrict uncontrolled re-entries — the phenomenon of rocket parts falling back to earth in unguided fashion once their missions are complete. Among others, the letter is addressed to S. Somanath, chairman of the Indian Space Research Organisation (ISRO).
Key Demand of the question:
To write about various types of orbits and issues associated with uncontrolled re-entry of rockets
Directive word:
Examine – When asked to ‘Examine’, we must investigate 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 by defining an orbit.
Body:
First, write about different types of orbit for satellite launches from earth and their functions. Draw a small representative diagram of the same – Geostationary orbit (GEO), Low Earth orbit (LEO), Medium Earth orbit (MEO), Polar orbit and Sun-synchronous orbit (SSO), Transfer orbits and geostationary transfer orbit (GTO) and Lagrange points (L-points)
Next, in detail, write about the uncontrolled re-entries of rockets into the earth’s orbit and issues associated with it.
Next, write about the measures needed to overcome the above issues.
Conclusion:
Conclude with a way forward.
Introduction
An orbit is the curved path that an object in space (such as a star, planet, moon, asteroid or spacecraft) takes around another object due to gravity. Gravity causes objects in space that have mass to be attracted to other nearby objects. If this attraction brings them together with enough momentum, they can sometimes begin to orbit each other. An object moving around a planet in an orbit is called a satellite.
Body
Types of Orbits for satellites
- Geostationary orbit (GEO)
- Satellites in geostationary orbit (GEO) circle Earth above the equator from west to east following Earth’s rotation – taking 23 hours 56 minutes and 4 seconds – by travelling at exactly the same rate as Earth.
- This makes satellites in GEO appear to be ‘stationary’ over a fixed position.
- In order to perfectly match Earth’s rotation, the speed of GEO satellites should be about 3 km per second at an altitude of 35 786 km.
- This is much farther from Earth’s surface compared to many satellites.
- Low Earth orbit (LEO)
- A low Earth orbit (LEO) is, as the name suggests, an orbit that is relatively close to Earth’s surface.
- It is normally at an altitude of less than 1000 km but could be as low as 160 km above Earth – which is low compared to other orbits, but still very far above Earth’s surface.
- Unlike satellites in GEO that must always orbit along Earth’s equator, LEO satellites do not always have to follow a particular path around Earth in the same way – their plane can be tilted.
- This means there are more available routes for satellites in LEO, which is one of the reasons why LEO is a very commonly used orbit.
- Medium Earth orbit (MEO)
- Medium Earth orbit comprises a wide range of orbits anywhere between LEO and GEO.
- It is similar to LEO in that it also does not need to take specific paths around Earth, and it is used by a variety of satellites with many different applications.
- Polar orbit and Sun-synchronous orbit (SSO)
- Satellites in polar orbits usually travel past Earth from north to south rather than from west to east, passing roughly over Earth’s poles.
- Satellites in a polar orbit do not have to pass the North and South Pole precisely; even a deviation within 20 to 30 degrees is still classed as a polar orbit.
- Polar orbits are a type of low Earth orbit, as they are at low altitudes between 200 to 1000 km.
- Sun-synchronous orbit (SSO) is a particular kind of polar orbit.
- Satellites in SSO, travelling over the polar regions, are synchronous with the Sun.
- This means they are synchronised to always be in the same ‘fixed’ position relative to the Sun. T
- his means that the satellite always visits the same spot at the same local time – for example, passing the city of Paris every day at noon exactly.
- Transfer orbits and geostationary transfer orbit (GTO)
- Transfer orbits are a special kind of orbit used to get from one orbit to another.
- When satellites are launched from Earth and carried to space with launch vehicles such as Ariane 5, the satellites are not always placed directly on their final orbit.
- Often, the satellites are instead placed on a transfer orbit: an orbit where, by using relatively little energy from built-in motors, the satellite or spacecraft can move from one orbit to another.
- This allows a satellite to reach, for example, a high-altitude orbit like GEO without actually needing the launch vehicle to go all the way to this altitude, which would require more effort – this is like taking a shortcut.
- Reaching GEO in this way is an example of one of the most common transfer orbits, called the geostationary transfer orbit (GTO).
Threats associated with the uncontrolled re-entries of rockets into the earth’s orbit
- In an uncontrolled re-entry, the rocket stage simply falls. Its path down is determined by its shape, angle of descent, air currents and other characteristics.
- It will also disintegrate as it falls.
- As the smaller pieces fan out, the potential radius of impact will increase on the ground.
- Some pieces burn up entirely while others don’t. But because of the speed at which they’re travelling, debris can be deadly.
- A 2021 report of the International Space Safety Foundation said, “an impact anywhere on an airliner with debris of mass above 300 grams would produce a catastrophic failure, meaning all people on board would be killed”.
- Most rocket parts have landed in oceans principally because earth’s surface has more water than land. But many have dropped on land as well.
- Some examples of parts of a Russian rocket in 2018 and China’s Long March 5B rockets in 2020 and 2022 striking parts of Indonesia, Peru, India and Ivory Coast, among others.
- There is no international binding agreement to ensure rocket stages always perform controlled re-entries nor on the technologies with which to do so.
- The Liability Convention 1972 requires countries to pay for damages, not prevent them.
Way forward
- The space industry should collect rocket emissions data during launches and make it publicly available.
- The industry could also make available the total satellite content, a simple total for each type of mineral or substance within their existing spacecraft and satellites yet to be lofted.
- Re-entering bodies should aim for an ocean in order to avoid human casualties.
- For instance, The ISRO tracked it with its system for safe and sustainable space operations management from a month beforehand. It plotted its predicted paths using models in-house. The RISAT-2 eventually fell into the Indian Ocean on October 30.
- Future solutions should be extended to re-entering satellites as well.
General Studies – 3
Topic: linkages of organized crime with terrorism.
Difficulty level: Moderate
Reference: The Hindu , Insights on India
Why the question:
The world has been witnessing a flurry of meetings and conferences on the issue of countering terrorism worldwide. The list resembles an alphabetic soup, viz., meetings of the United Nations Security Council Counter-Terrorism Committee, the No Money for Terror Conference, and an Interpol Conference in which terrorism figured prominently.
Key Demand of the question:
To write about the interlinkages between terror groups and threat of emerging technologies, its impact and need for collaboration to eliminate it.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin the answer by citing the complexity of terror networks.
Body:
First, mention the various inter-links between terror groups and various organised crimes which has made a terrorism a global problem and issues created by the emerging technologies.
Next, write about the various government measures in this direction and the needs for greater global and national cooperation and collaboration in order to tackle this issue on global level.
Conclusion:
Conclude with solutions to address the issue.
Introduction
With rise in modern technologies and penetration, India confronts a wide spectrum of challenges to its security. Today national security challenges include not only traditional military and nuclear threats, but a multitude of other threats, including terrorism, cyber security, demographic challenges etc. These challenges for the security demand proactive response and preparedness in the coming years.
Body
New age threats and new era terrorists
- Cyber-threats: The initiatives like Digital India initiatives have brought about a paradigm shift in terms of connectivity. While greater connectivity promises wider services, it also paves the way for the emergence of new vulnerabilities. Leading companies in energy, finance and other sectors are targeted by new-age cyber criminals. As per CERT-IN, one cybercrime was reported every 10 minutes in India during 2017 which is quite alarming.
- Climate change as a destabilizing threat: One of the most critical issues concerning India’s security is climate change and its impact. Dwindling freshwater resources has led to many inter-state water tussles, one of which was witnessed in the Cauvery row. Such endeavors may not only affect the environment but also lead to a threat to internal security.
- New form of Terrorism: Terrorism is taking new shape with increased incidents of lone wolf attacks. The recent London terror attack, Manchester terror attack are scary. They are neither limited by territorial boundaries, nor do they recognize the concept of sovereignty. The use of suicide bombers, sophisticated technology and tactics such as leaderless movements, sleeper cells networks have made it increasingly difficult for the governments to get rid of terrorist groups.
- Demographic changes and their consequences: India is sitting at a huge demographic dividend in terms of its 65% population is in the age group of 15-35 years of age. While it can be a huge economic advantage, if not provided with suitable opportunities can turn into a worse nightmare. Although the Indian economy is growing substantially, India’s rate of employment has actually declined. This may lead to youth turning to crime and drugs, which is dangerous to society.
- New technologies: Although technology has immense usefulness for humanity, it has a harmful impact too. For example, new technologies like drones, transparent cameras, robotics etc. have the potential of snooping into India’s security set up. Pakistani drone was recently fired down by Indian army in Rajasthan as an example of this. This poses new challenges to Indian security.
- Newer Threats: New technologies and novel applications of existing technologies have the potential to disrupt labor markets and alter health, energy, and transportation systems.
- Limited regulation: In many cases, the rate of innovation is outpacing states’ ability to keep abreast of the latest developments and their potential societal impacts.
- Powerful adversaries: Emerging technology will also allow our adversaries to strike farther, faster, and harder and challenge India in all warfare domains, including space.
- Threat from Non-state actors: Groups such as al-Qaeda and ISIS used online communication on Facebook, Twitter, YouTube, and other platforms to increase their prominence and recruit collaborators.
- Threat of weapons of mass destruction (WMD): Hostile nations, realizing that they cannot stand up to technologically superior military forces, will be stimulated to develop WMD as an offset to these capabilities.
Measures to be taken
- Incentivizing investors and corporations to consider national security in their decision-making process.
- Multilateral governance system to initiate, shape, and implement both technical and normative solutions.
- Ministry of External Affairs recently (MEA) created a New, Emerging and Strategic Technologies (NEST) division to deal with the foreign policy and international legal aspects of new and emerging technologies.
- India has a Defence Cyber Agency and a National Technical Research Organisation, which are responsible for mechanisms that work to counter cyber risks and threats to the country.
- More partnerships and collaborative environments to share worldwide emerging technology trends, address competitive threats, share national security concerns, and consider civil liberties, privacy, and ethical implications.
- Forming strategic public-private partnerships with the aim of allocating private capital to support national security objectives.
- Develop and adopt advanced technology applications within government and improve the desirability of the government as a customer of the private sector.
Conclusion
To meet the diverse likely security challenges and to successfully confront all challenges, India requires a clear cut strategy. It is important to synergise our diplomatic, economic, political, social and military strengths. Government has made various efforts like creating a post of National Cyber Security Coordinator, Cyber Swachhta Kendra, Khelo India initiative for youth etc. This will help India to tackle new age threats in a comprehensive manner.
General Studies – 4
Topic: Philosophical basis of governance and probity
6. Explain the essential attributes of ethical governance with examples. (250 words)
Difficulty level: Moderate
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 4 and part of Mission-2022 Secure (revision).
Key Demand of the question:
To write about the attributes of ethical governance.
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Begin by defining ethical governance.
Body:
Write about the various attributes of ethical governance – ethical behaviours, processes, procedures, culture, ways of doing and being that ensure high standards of performance, economy, effectiveness, efficiency, quality and satisfaction etc. Cite examples to substantiate.
Conclusion:
Conclude by summarising.
Introduction
The World Bank defines governance as the manner in which power is exercised in the management of a country’s economic and social resources for development
According to the United Nations Development Programme, Governance has been defined as the rules of the political system to solve conflicts between actors and adopt decision (legality). It has also been used to describe the “proper functioning of institutions and their acceptance by the public” (legitimacy). And it has been used to invoke the efficacy of government and the achievement of consensus by democratic means (participation)
Ethical governance meant that the manner in which power is exercised for an organisation by using its resources, including social and economic, is acceptable by all. It could range from personal rights to effective service delivery for all.
Body
Ethical governance is the right and justified conduct of activities of an organization (or government) to serve the larger public interest. Impartiality, accountability, transparency, honesty, integrity, probity, perseverance, truthfulness, citizen centricity, patriotism among other are some of the values which are must for attainment of ethical governance.
Major Features of Ethical Governance:
Participation
- Good Governance truly promotes inclusive democracy allowing Right to Freedom.
- Promote Citizen centric governance
Transparency
- Easy accessible available affordable information
- Promote accountable government
Rule of Law
- Rule of law warrants that fair legal frameworks are implemented impartially.
- It also means protection of human rights.
Responsiveness
- This implies that processes and institutions should serve all stakeholders within a reasonable time frame.
Consensus oriented
- Consensus oriented decision-making ensures that even if everyone does not achieve what they want to the fullest, a common minimum can be achieved by everyone which will not be detrimental to anyone.
Accountability
- Accountability should be there not just for the government, but also for citizens, the private sector, industry, NGOs, and all stakeholders.
Conclusion:
Hence, governance shall be good as well as ethical to promote citizen centric participatory inclusive equitable development among all.
Topic: corporate governance.
Difficulty level: Tough
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 4 and part of Mission-2022 Secure (revision).
Key Demand of the question:
To write about shortcomings of corporate governance in India.
Examine – When asked to ‘Examine’, we must investigate 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 by defining corporate governance.
Body:
Write about the various limitations and shortcomings of corporate governance – frequent scams, lack of transparency, absences of accountability, corruption etc. Give recent examples like Yes bank, NSE scam.
Suggest steps to overcome the above.
Conclusion:
Conclude by writing a way forward.
Introduction
Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. Ethics is at the core of corporate governance, and management must reflect accountability for their actions on the global community scale.
Body
Background
- The Securities and Exchange Board of India (SEBI) passed its final order in a sordid saga, involving the country’s largest stock exchange.
- The order, strongly censuring senior officials of the NSE, including its former MD and CEO Chitra Ramkrishna, throws light on a series of governance lapses at the stock exchange.
- The stock exchange regulator has levied fines on the parties involved in acts of impropriety, and also barred NSE from introducing any new products for a six-month period.
- The order highlights the scale of misgovernance, including the violation of several rules and regulations.
- More worryingly, the episode has exposed the absence of checks and balances at the stock exchange.
Need for structural changes in Corporate Governance in India
- It is common for friends and family of promoters and management to be appointed as board members.
- In India, founders’ ability to control the affairs of the company has the potential of derailing the entire corporate governance system. Unlike developed economies, in India, identity of the founder and the company is often merged.
- Women director appointed are primarily from family in most of the companies which negates the whole reform.
- Appointed independent directors are questionable as it is unlikely that Independent Directors will stand-up for minority interests against the promoter. In the Tata case, these directors normally toe the promoter’s line.
- An independent director can be easily removed by promoters or majority shareholders. This inherent conflict has a direct impact on independence.
- Data protection is an important governance issue. In this era of digitalisation, a sound understanding of the fundamentals of cyber security must be expected from every director.
- Board’s Approach to Corporate Social Responsibility (CSR) is often found unsupportive.
- Conflict of Interest – The ICICI Bank Ltd fiasco demonstrates the challenge of managers potentially enriching themselves at the cost of shareholders in the absence of a promoter.
- In the corporate world, much is forgiven on grounds of performance.
- When a performing CEO chooses to unduly favour a particular individual or individuals, boards see that as a forgivable infirmity.
- As for dysfunctional or ineffective boards, these remain the norm despite numerous regulations, seminars and papers over the past four decades.
Measures to improve Corporate Governance:
- Ensure a balanced, competent and diverse Board: Business should strive for directors who are qualified, understand the business and can offer a fresh perspective. Studies show Boards with greater gender diversity result in improved financial performance.
- The top management must be allowed to choose not more than 50% of the independent directors.
- The rest must be chosen by various other stakeholders — financial institutions, banks, small shareholders, employees, etc.
- Review your Board composition on a regular basis to identify any shortcomings and make timely improvements.
- Build solid foundations for oversight: Establish, monitor and evaluate the roles and responsibilities of the Board and management. The Board needs to have visibility of management actions and key decision making.
- Gear key performance indicators towards long term value creation not just in the short term.
- Prioritize risk management: Establish an effective risk management and internal control framework and periodically review its effectiveness. Developing a disaster recovery plan is essential.
- Ensure integrity in corporate reporting including safeguards such as conducting external audits of the business.
- Provide timely and balanced information: Providing transparency to key stakeholders both in the good and bad times promotes stakeholders’ confidence in the business.
- Emphasise integrity, promote ethical behaviours and consult different categories of stakeholders on their interests.
- Treat shareholders equitably and respect their rights.
- Ensure adequate disclosures around related parties’ transactions and director’s other interests. This is especially important where a director may have external financial interests that could influence his decision.
- Regulators must penalise errant directors through a whole range of instruments — strictures, financial penalties, removal from boards and a permanent ban from board membership.
Conclusion:
The effectiveness of the Corporate Governance has become a global concern. Mainly after many corporate collapse (e.g. Enron, Boeing etc.), fraud cases (e.g. Lehman Brothers), shareholder suits or questionable strategic decisions are drawing attention to the top level decision-making body of the corporation and the board of directors, necessitating the need for ethical considerations where in Indian context, Uday Kotak committee recommendations can form guidelines for better ethical corporate governance.
Value addition
Importance of Corporate Governance:
- Ensures that the management of a company considers the best interests of all stakeholders involved;
- Helps companies deliver long-term corporate success and economic growth;
- Maintains the confidence of investors and as consequence companies raise capital efficiently and effectively;
- Has a positive impact on the price of shares as it improves the trust in the market;
- Improves control over management and information systems (such as security or risk management)
- Good corporate governance also aims at a faster decision-making process by establishing a clear delineation of roles between owners and management.
- Gives guidance to the owners and managers about what are the goals strategy of the company;
- Minimizes wastages, corruption, risks, and mismanagement;
- Helps to create a strong brand reputation;
- Most importantly, it makes companies more resilient.
- An increase in staff retention and motivation can be expected, especially from senior staff, when the company has a well-defined and communicated vision and direction.
- A focus on the company’s core business will also make it easier to penetrate the market and attract the interest of shareholders.
- Improved reporting on performance in turn leads managers and owners to make more informed and fact-based decisions, leading ultimately to improving sales margins and reducing costs.
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