[Mission 2023] Insights SECURE SYNOPSIS: 3 March 2023

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: population and associated issues, poverty and developmental issues, urbanization, their problems and their remedies.

1. Migrant worker issues have been a significant problem in India for a long time. Examine the various measures taken by the government to alleviate the issues faced by the migrant workers in India. (250 words).

Difficulty level: Moderate

Reference: The Hindu , Insights on India

Why the question:

As the sugarcane harvest season comes to an end, residents of villages that make the intra-State move for six months, talk about living on the fringes and the exploitation they face, without even realising the injustice

Key Demand of the question:

To write about the issues faced by migrant workers and evaluate government measures for their protection.

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 giving statistic regarding migration in India.

Body:

First, elaborate upon the issues faced by migrant workers – Distress migration: due to non-existent social security and unilateral decisions. Loss of livelihoods, Paradox of hunger despite having plenty, Devastating impact on women and children’s nutrition etc. Account the reasons for the same.

Next, discuss the policies and initiatives of the government in this direction to have a social security and inter-state coordination.

Next, suggest what needs to be done further to alleviate the issues of migrant workers.

Conclusion:

Conclude by writing a way forward.

Introduction

The migrants’ crisis left India shocked by their plight of walking hundreds of kilometres, facing hunger, exhaustion and violence, to get to the safety of their home villages. After the two covid waves, the crisis compelled policy-makers to make certain provisions for them in the schemes announced for the assistance of the poor.

The Periodic Labour Force Survey (PLFS) 2020-21 shows that 20.8% of total male migration in the country was from urban to rural areas in 2020-21. The 2011 census had found that proportion to be merely 8% back then.

As the sugarcane harvest season comes to an end, residents of villages that make the intra-State move for six months, talk about living on the fringes and the exploitation they face, without even realising the injustice

Body

Govt efforts

• Pradhan Mantri Garib Kalyan Yojana: After the lockdown, Pradhan Mantri Garib Kalyan Yojana with a financial package of Rs. 1.7 lakh crore was launched to help poor, needy, and unorganized sector workers of the country.
• PM SVANidhi Scheme: PM SVANidhi Scheme was launched to facilitate collateral-free working capital loans up to Rs.10,000/- of one-year tenure, to approximately, 50 lakh street vendors, to resume their businesses.
• Pradhan Mantri Garib Kalyan Rojgar Abhiyan: In order to facilitate the employment of migrant workers who have gone back to their home state, Pradhan Mantri Garib Kalyan Rojgar Abhiyan was initiated in 116 districts in Mission Mode.
• One Nation One Ration Card (ONORC) project
• Affordable Rental Housing Complexes (ARHC) scheme
• State migrant cell: Migrant workers’ Cell is being created to prepare a database of migrant workers in states with mapping.
• eShram portal: It is a national database created to register the unorganised workers in the country, including the migrant workers.
• National policy on migrant workers: NITI Aayog has been mandated to prepare a draft national policy on migrant workers to reimagine labour-capital relations while integrating the migrantworkers within the formal workforce.

Challenges despite Govt efforts

• Repeated surveys have found that the incomes of migrant households continue to be lower than pre-pandemic levels, even after returning to cities.
• Migrants are finding less work and their children eating less.
• The post-1991 poverty alleviation of almost 300 million Indians, driven by migration out of farm work, is being undone.
• Despite this, a cohesive migration policy guidance remains elusive.

Inadequate provisions by government

• The Unorganised Workers’ Social Security Act, was approved by Parliament in December 2008.
• But it lacks the mandatory elements of the NCEUS’s proposals and included neither a National Minimum Social Security Package, nor the provision for mandatory registration.
• Estimates show that the central government’s expenditure on all major social protection programmes declined from 1.96 per cent of GDP in 2008-09 to 1.6 per cent in 2013-14and to only 1.28 per cent in 2019-20.

Way forward

• Role of Centre:migrants would be well served if the Centre played a proactive role by offering strategic policy guidance and a platform for inter-State coordination. State-level political economy constraints make the Centre’s role particularly crucial in addressing issues of inter-State migrant workers at ‘destination States’.
• The National Commission for Enterprises in the Unorganised Sector had pointed out that the circular migrant workers were a disadvantaged segment among informal workers.
• Comprehensive law: The NCEUS had advocated acomprehensive law for the protection of the rights of all informal workers, including migrants, home workers, and domestic workers.
• Universal registration: NCEUS had also recommended a universal registration mechanism based on self-declaration, with the issuance of a smart social security card, and a National Minimum Social Security Package.
• Guaranteed social security/social protection: We need the provision of a minimum level ofguaranteed social security/social protection for all informal workers and their households within a definite time frame.
• More public spending: Guaranteed social protection would involve a clear framework and a commitment to greater public resources being spent on social protection as a large class of workers in India do not have an identifiable employer and a contributory social insurance framework will not work for them.
• Recommendation 202:Government should embrace ILO’s Recommendation 202 and work towards these in a time-bound manner.
• The NITI Aayog’s Draft Policy on Migrant Workers is a positive step forward in articulating policy priorities and indicating suitable institutional frameworks, and deserves a speedy release.

Conclusion

To end the silent, painful, and enduring crisis for the workers, as well as the crisis for the economy, the government must urgently recognise the right to social security, embedded both in the Indian Constitution and international covenants. Strategic initiatives to provide migrants safety nets regardless of location as well as bolster their ability to migrate safely and affordably must keep up the momentum towards migrant-supportive policy.

General Studies – 2

Topic: Important International institutions, agencies and fora- their structure, mandate.

2. India has been actively seeking a permanent seat at the UNSC for several years now, which is a matter of debate and opinion among various developed countries. In your opinion, is India ready for a permanent seat at UNSC? Comment. (250 words)

Difficulty level: Moderate

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 2 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question:

To write about whether or not India is ready for a permanent seat at the UNSC.

Directive word:

Comment– here we must express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction: 

Start by giving a brief about India’s growing stature internationally.

Body:

Write about the reasons that lend credibility to India’s claims – Represents one-sixth of the global population, among the founding members of the U.N, upheld its principles and credentials while some other countries consider the organisation as merely a talk shop, impressive contribution towards the UN Peacekeeping Force (UNPKF) and economic power etc.

Next, write about the various limitations that hinder the above.

Conclusion:

Conclude by writing a way forward to overcome the above limitations.

Introduction

The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations. Like the UN as a whole, the Security Council was created following World War II to address the failings of a previous international organization, the League of Nations, in maintaining world peace.

UN General Assembly (UNGA) President Csaba Korosi has expressed concern that the UN Security Council does not reflect today’s realities, is paralysed and is unable to discharge its basic function of maintaining international peace and security.

Body

India should be given a permanent seat in the council due to:

• India in many ways is a sui generis country. It’s a country of a billion-plus, it’s a country which is a democracy, perhaps the only example in history of a billion-plus people working together in a democratic framework.
• India is the 2nd most populous nation, the 3rd largest economy in PPP terms, a responsible nuclear power and the largest democracy in the world.
• We will bring to it those values and strengths of being able to work cohesively among disparate entities.
• India is a founding member of the UN, and it has been the temporary member of the UNSC for 7 terms.
• India has provided the 2nd largest number of troops in peacekeeping missions. In Africa alone 6000 of our troops have been stationed under UN peacekeeping missions. India has argued in UN that troops contributing nations should have greater say in UNSC.
• One of the biggest issues that will confront all multilateral organisations and certainly the security council will be issues which are beyond borders.
• Issues of the global commons, whether it is in cases of public health as we are now seeing in the current pandemic, but other issues, for example, cyber [issues]. There are no regulatory mechanisms or no rules on that, and that’s another.
• A third one is issues of high seas. Again, beyond your exclusive economic zone, there is very limited understanding of what states can do and what states can’t do.
• Ungoverned spaces lead to opportunities for those who are inimical to global governance to breed, whether it is in states or it is beyond state boundaries, this has been the experience, and therefore, we as a country would like to focus on these things.
• Another area of interest would obviously be technology with a human touch. Increasingly, resilience of human beings is an important factor that all of us have been confronted with where there are disasters, can we have a more humane approach to these, etc.

Challenges:

• The US administration under Biden has continued to remain non-committal on support for India’s UNSC bid.
• The U.S. has offered qualified support for building a consensus for enlargement of the UNSC — in terms of permanent and non-permanent members. However, it said it would not support an expansion of the veto — given to the P-5, the current five permanent members: China, France, Russia, the U.K and the U.S.
• The Uniting for Consensus (UFC) group — Pakistan, South Korea, Italy and Argentina — opposes the G4 plan.
• China also opposes the bids of India and Japan.

Conclusion:

In this context, the challenges before India are many. The Security Council is one of the most important multilateral decision-making bodies where the contours of global geopolitics are often drawn. India should avoid the temptation of taking sides at a time when the Security Council is getting more and more polarised.

To serve its interests and push for its agenda of multilateralism and reforms, India should adopt value-based positions that are not transactional, aspire for the leadership of the non-permanent members of the Council and be the voice of the weaker nations.

Value addition

Need for reforms in UNSC:

• Regional representation
  • Supporters of UNSC reform claim that there is a huge European bias in P-5 due to the presence of the United Kingdom and France including Russia.
  • While regions like Latin America, Caribbean group, Arabs and Africa do not have a single permanent member. Similarly, there is a western bias in UNSC. As China is the only Asian country among the five permanent members of UNSC.
  • Thus, a large chunk of the population and many different regions of the world remain unrepresented in the permanent membership of UNSC.
  • It seems highly unfair that the whole continent of Africa does not have a single member in P-5 despite the fact that most of the affairs of the body concern this part of the globe only.
  • So, regions like Africa and Latin America and others will have to be accommodated in the reformed UNSC.
• Changing geopolitics:
  • The victors of World War II shaped the United Nations Charter in their national interests, dividing the permanent seats, and associated veto power, among themselves.
  • It has been 72 years since the foundation of UNSC.
  • During this period, the geopolitical realities have changed drastically, but the Council has changed very little.
• Question of Veto:
  • All five permanent members of UNSC enjoy a veto power .
  • Veto is a kind of negative vote by a permanent member that prevents the adoption of a proposal, even if it has received the required overall votes by the members.
  • Sadly, veto power is grossly misused by the permanent members in their own national interest.
  • , out of 24 vetoes over the last 20 years, 15 have been used by the United States to protect Israel.
  • This also badly affects the conduct of the business of UNSC as many important proposals involving substantive issues get blocked due to use of veto by any of the five permanent members.
• G-4 and India s quest for a permanent seat:
  • In recent decades, India has been very vocal in demanding for a permanent seat in UNSC. It is also part of G-4, a group of 4 nations (India, Brazil, Germany and Japan) to lobby for permanent positions on the UNSC or at least to make the council more representative.
  • Many member-states have been pledging support for our aspiration for permanent membership. Several P-5 countries have also announced their support. At present, China is the only P-5 member opposing India s bid.
  • G-4 wants to expand the permanent seats in the UNSC to 10 to include 6 new members G-4 nations apart from one seat to Africa and one seat to Arabs
• Transparency and Working Methods:
  • While the expansion of the Security Council has been hotly debated across the world, debate on the working methods of the Council, an equally important aspect of reform to many member states, has attracted less attention.
  • It is true that UNSC has been functioning in the most non-transparent and non-consultative way.
  • The undemocratic nature of UNSC within the supposedly democratic UN has compromised the overall credibility of the United Nations.

Topic: Important International institutions, agencies and fora- their structure, mandate.

3. While the IMF has been credited with supporting economic growth and stability in many countries, it has also faced criticism for promoting neoliberal economic policies that prioritize the interests of wealthy nations and corporations over those of developing countries. Critically examine. (250 words)

Difficulty level: Tough

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 2 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question:

To write a critique of IMF and suggest possible reforms in it.

Directive word:

Critically examine – When asked to ‘Examine’, we have to 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. 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: 

Begin by giving a brief about aims of the International Monetary Fund (IMF)

Body:

First, in brief, write about the major aspects of global economy that IMF deals with.

Next, using facts and figures to substantiate, give the successes and limitations of IMF in regards to – foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world etc.

Next, write about the shortcomings of IMF – IMF’s austerity measures, economic and social inequality, non-transparent manner, failure to adequately address the impact of its policies on the environment and climate change etc.

Next, suggest possible reforms that are needed in the IMF.

Conclusion:

Conclude by writing a way forward.

Introduction

The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. Its stated mission is “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” IMF was formed in 1944, at the Bretton Woods Conference and came into formal existence in 1945 with the goal of reconstructing the International Monetary system. India became a founder member of IMF in December 1945 even before Independence.

Body

Critique of IMF in fostering global monetary cooperation

• Structural under-representation of the Global South
  • One of the central criticisms of the IMF relates to the political power imbalances in their governance structures where, as a result of voting shares being based principally on the size and ‘openness’ of countries’ economies, poorer countries – often those receiving assistance from IMF – are structurally under-represented in decision-making processes
• Undermining democratic ownership
  • The issue of political power imbalances is exacerbated by another long-standing critique of IMF is that the economic policy conditions they promote – often attached or ‘recommended’ as part of loans – undermine the sovereignty of borrower nations, limiting their abilityto make policy decisions and eroding their ownership of national development strategies.
• Weak ability to learn from past mistakes
  • The IMF’s Independent Evaluation Office (IEO)was set up in 2001 to conduct evaluations of the policies and functionalities of the institution with the aim of enhancing the learning culture, strengthening credibility, and supporting institutional governance and oversight
  • However, the IMF has been criticised for failing to implement the recommendations
• Neo-Liberal Criticisms
  • IMF conditionalities have also been widely debated.
  • Critics contend that IMF policy prescriptions provide uniform remedies that are not adequately tailored to each country’s unique circumstances.
  • These standard, austere loan conditions reduce economic growth and deepen and prolong financial crises, creating severe hardships for the poorest people in borrowing countries and strengthening local opposition to the IMF.

Other issues in IMF

The present structure and power dynamics in IMF is not reflective of the current economic architecture and it is this systemic issue that castes shadows on its relevance because of

• Quotas: The rising clout of developing countries today vis-à-vis the developed ones is not commensurate with their quotas. Moreover the recent announcement of deferring the next round amendments in quota till 2019 could be dampener.
• Appointment: The heads have historically been appointed from a coterie of developed nations leading to discrimination of developing countries tries
• Rise of alternative institutions: Like NDB,AIIB have come up as an alternative to IMF. They look to provide greater credit with more creditor-friendly terms

 Conclusion and way forward

• While reforms in countries are happening in different stages, the global institutions have remained the way they have been for the last several decades
• Going further, there is a desperate need for all IMF to be more transparent, representative and speak for countries which don’t get adequate representation
• The IMF should focus on lower income countries and support other developing countries’ market funds raising activities, as its Article IV consultation reports are utilised by credit rating agencies, impacting the fund raising capacity of countries like India
• With a continuing trend of emerging markets increasing their share in global output or GDP over the years, many experts have called for alignment of quotas and the accompanying lending windows of the IMF to reflect the changed economic positions of countries.
• IMFdefinitely will have strong competition from emerging institutions in coming days and it needs to be nimble footed to adapt to current dynamics.

Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

4. Do you think the pragmatic neutrality maintained by India on the Russia-Ukraine war and push for a practical solution to the crisis, a wise foreign policy step? Analyse. (250 words)

Difficulty level: Moderate

Reference: The Hindu , Insights on India

Why the question:

On February 23, 2023, on the eve of the first anniversary of Russia’s invasion of Ukraine, the United Nations General Assembly (UNGA) adopted a resolution, calling for an end to the war. The resolution was favoured by 141 members and opposed by seven, while 32 states abstained. Unsurprisingly, India was one among the 32.

Key Demand of the question:

To write about the stand of India on Russia-Ukraine war.

Directive word: 

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction: 

Begin by giving context.

Body:

First, in brief, write about the deadlock in the Ukraine conflict which has been going on since the past few months and how it impacts the global multilateral order and the world economy.

Next, write about India’s pragmatic neutrality on the above issue and its outcome.

Next, write about the role India can play diplomatically towards peace efforts and de-escalation of hostilities between India and Ukraine.

Conclusion:

Conclude by writing a way forward.

Introduction

On February 23, 2023, on the eve of the first anniversary of Russia’s invasion of Ukraine, the United Nations General Assembly (UNGA) adopted a resolution, calling for an end to the war. The resolution was favoured by 141 members and opposed by seven, while 32 states abstained. Unsurprisingly, India was one among the 32. This is in line with the position India has been taking on the Ukraine crisis from the beginning. India has refused to condemn Russia for the invasion; it has refused to join the West’s sanctions; has stepped up buying Russian fuel at a discounted price, and has consistently abstained from UN votes on the war.

Body

Background

• India’s position has triggered sharp responses in the West.
• Before the war, there was much debate among the global strategic commentariat about India’s irreversible shift towards the West.
• However, after the war began, many wondered why the world’s largest democracy did not condemn Russia.
• For some others, India was “financing” Vladimir Putin’s war by buying Russian oil.

India’s strategic policy on Russia-Ukraine war

• India has repeatedly stated in the UN that the sovereignty and territorial integrity of all countries should be respected.
  • But a key dilemma before any country in international relations is that when it comes to specific actions in the event of a clash between moral positions and national interests, it is about which path they should take.
• For the U.S. and much of Europe, there is a convergence of their moral positions and foreign policy objectives in the case of the Ukraine war.
  • TheS. wants to “weaken” Russia, as U.S. Defence Secretary Lloyd Austin said, and Europe wants to make Russia’s invasion costly so that they believe Moscow would be deterred in the future.
  • So, the moral line they take serves their strategic purpose. However, this position has hardly been consistent especially when there are clashes between values and interests.
• Hypocrisy of US: In 2003, the U.S. launched its illegal invasion of Iraq, violating the country’s sovereignty.
  • In 2011, the North Atlantic Treaty Organization (NATO) turned a UN Security Council resolution to establish a no-fly zone in Libya into a full-scale invasion.
  • Right now, the U.S. has illegally placed its troops in Syria.
  • Or, take the case of Israel, which has illegally annexed East Jerusalem and Syria’s Golan Heights and keeps building illegal Jewish settlements in the occupied West Bank.
  • TheS. has recognised Israel’s annexation of Golan and moved its embassy to Jerusalem.
  • While Russia is being pounded with sanctions, Israel is getting billions worth of military aid every year from the U.S.
• India’s ties with Russia: Ties with Russia, a historical partner, are important for India in many ways.
  • One is energy — discounted fuel coming in from Russia is a relief for India, the world’s fifth largest economy, that meets over 80% of its fuel needs through imports.
  • But the energy ties are largely opportunistic — even if supplies from Russia are disrupted, India could find alternatives for a higher price.
  • Defence supplies, however, tell a different tale — Russia has fulfilled over 46% of India’s defence needs in the last five years.
  • There is a sound argument that India should diversify its source of defence imports, but such a change would take time.
• China factor: Third, at a time when Russia is deepening its ties with China, which is India’s main competitor, India should ask itself whether it should retain its leverage over Russia through existing ties or lose it completely by joining the western coalition over moral commitments.
• Furthermore, to manage its continental interests and tackle its continental security concerns, India has to work with powers in the Eurasian landmass where the U.S. is practically absent, especially after its disastrous withdrawal from Afghanistan. Russia plays a key role in India’s continental foreign policy.

Conclusion

What India wants is an immediate end to the war and a new security equilibrium between great powers so that the global economy could be stabilised, and the world could focus on more pressing problems — from climate change to UN reforms. So, if it wants peace and a resolution to the conflict, as Jawaharlal Nehru stated in 1957 in the wake of the Soviet intervention in Hungary, “it doesn’t help calling names and condemning” any power. Instead, India should stick to its pragmatic neutrality, rooted in realism, and continue to push for a practical solution to the Ukraine crisis.

General Studies – 3

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. How is the Gross Domestic Product (GDP) calculated in India? Examine the limitations pertaining to GDP as an economic performance measurement framework of the country. (250 words)

Difficulty level: Moderate.

Reference: The Hindu

Why the question:

The National Statistical Office’s latest release of GDP data estimates a further deceleration in growth in the October-December 2022 quarter, a slowdown that the government’s Chief Economic Adviser (CEA) has attributed largely to an upward revision in the year-earlier period’s figures.

 Key Demand of the question: 

To write about GDP, its limitations in highlighting the nature of India’s economy.

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 GDP.

Body:

First, write about various ways GDP is calculated in India – income method, expenditure method and production(output) method.

Next, write about limitations of GDP – leaves out some production in an economy. Even though GDP is frequently used to capture the wellbeing of a society, it was never intended to do that, and as a result, it leaves out important aspects of well-being like pollution or even happiness.

Next. Mention the new measurements which are needed for economic performance measurement and framework.

Conclusion:

Conclude by writing a way forward.

Introduction

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health. Samuelson and Nordhaus liken the ability of GDP to give an overall picture of the state of the economy to that of a satellite in space that can survey the weather across an entire continent.

The National Statistical Office’s latest release of GDP data estimates a further deceleration in growth in the October-December 2022 quarter, a slowdown that the government’s Chief Economic Adviser (CEA) has attributed largely to an upward revision in the year-earlier period’s figures.

Body

Calculation of GDP

To assess India’s productivity, the GDP is calculated using the factor cost method across eight industries and the expenditure method is used to analyse how different areas of the economy are performing.

GDP is a poor way of assessing health of our economies

• Simon Kuznets, who developed concept of GDP, warned it was not a suitable measure of a country’s economic development. He understood that GDP is not a welfare measure, it is not a measure of how well we are all doing. It counts the things that we’re buying and selling, but it’s quite possible for GDP to go in the opposite direction of welfare.
• In contemporary times, with the changes brought on by the Fourth Industrial Revolution, the measure is even less of a reflection of the things that really matter.
• GDP counts “bads” as well as “goods.” When an earthquake hits and requires rebuilding, GDP increases. When someone gets sick and money is spent on their care, it’s counted as part of GDP. But nobody would argue that we’re better off because of a destructive earthquake or people getting sick.
• GDP makes no adjustment for leisure time. Imagine two economies with identical standards of living, but in one economy the workday averages 12 hours, while in the other it’s only eight.
• GDP only counts goods that pass through official, organized markets, so it misses home production and black market activity. If people begin hiring others to clean their homes instead of doing it themselves, or if they go out to dinner instead of cooking at home, GDP will appear to grow even though the total amount produced hasn’t changed.
• GDP doesn’t adjust for the distribution of goods. Again, imagine two economies, but this time one has a ruler who gets 90 percent of what’s produced, and everyone else subsists — barely — on what’s left over. In the second, the distribution is considerably more equitable. In both cases, GDP per capita will be the same.
• GDP isn’t adjusted for pollution costs. If two economies have the same GDP per capita, but one has polluted air and water while the other doesn’t, well-being will be different but GDP per capita won’t capture it.
• GDP is unable to fully capture the benefits of technology. Think of a free app on your phone that you rely upon for traffic updates, directions, the weather, instantaneous information and so on. Because it’s free, there’s no way to use prices — our willingness to pay for the good — as a measure of how much we value it.

GDP fails as a measure of human well-being:

• Since the institution of GDP figures and country rankings, other measures of the quality of life have appeared. E.g.:The Organization for Economic Cooperation and Development (OECD) annually issues a report based on a study of 140 countries, indicating the levels of happiness in those countries. For at least the last decade, European countries such as Denmark, Finland, have ranked at the top and India is nowhere to be seen.
• Economists have focused too narrowly on the economic side of human aspirations, setting aside human yearnings for belonging to social collectives and nations.
• The progress is too unequal. : The Oxfam report which shows that 1% of the people own about 60% of the wealth in India.
• GDP is neither a measure of welfare nor an indicator of well-being.
  • That is because it is not set up to recognize important aspects of our lives that are not captured by the acts of spending and investing.
  • There is no room in GDP for volunteering or housework, for example; nor does it recognize that there is value in community or in time spent with families.
  • More measurable things such as damage to our environment are also left out, as is job satisfaction. GDP doesn’t even measure the state of jobs.
• Capitalist systems founded on a religion of property rights have treated nature that nurtures as an “externality” to be exploited. Thus, it does not take into account the sustainability of future GDP.
• GDP also ignores important factors like environment, happiness, community, fairness and justice. But these are important aspects of development.
• It does not allow for the health of children, the quality of their education or the strength of marriages; neither wisdom nor learning; neither compassion nor devotion to country which makes life worthwhile.
• GDP also assumes all growth is good growth. :savings from energy-efficient devices counts as a negative for GDP growth, even though it is a positive for society.
• GDP does not take into account the value of non-monetized activity. :Care activity of women.
• GDP does not differentiate between more or less productive economic activity (i.e. implicitly assumes that economic activity is the desirable ends rather than a means to an end).
• All value additions for self-consumption, which are not put out in the market, are not accounted in the GDP.

Way forward

• Broader, non-monetary measures are required to assess the well-being of citizens.
• Green GDP could be used which attempts to adjust for environmental factors
• The other alternative measures include OECD’s “GDP alternatives,” which adjust for leisure; the “Index of Sustainable Economic Welfare,” which accounts for both pollution costs and the distribution of income.
• The “Genuine Progress Indicator,” which “adjusts for factors such as income distribution, adds factors such as the value of household and volunteer work, and subtracts factors such as the costs of crime and pollution.”
• There are more direct measures of well-being such as the Happy Planet Index, Gross National Happiness and National Well-Being Accounts.
• To make the world better for everyone, consumers must learn to be better citizens and to democratically govern the local systems within which they live.

Value addition

Benefits of GDP as a tool to measure the growth of a nation:

• GDP consists of consumer spending, Investment expenditure, government spending and net exports.
• It provides an insight to investors which highlights the trend of the economy by comparing GDP levels as an index.
• GDP is used as an indicator for most governments and economic decision-makers for planning and policy formulation.
• GDP is not the perfect way to measure growth. But among the alternatives, it is the least “inaccurate” method to compute the growth rate of the country.
• GDP is also used as an indicator of a nation’s overall standard of living because, generally, a nation’s standard of living increases as GDP increases.
• If by growth one means the expansion of output of goods and services, then GDP or preferably real GDP which measures growth without the effects of inflation is perfectly satisfactory
• Calculation of GDP provides with the general health of the economy. A negative GDP growth portrays bad signals for the economy. Economists analyse GDP to find out whether the economy is in recession, depression or boom.
• GDP growth over time enables central banks and policymakers to evaluate whether the economy is in recession or inflation. In that sense it is still required.
• GDP has held significance as a universal metric over the years.
• It is inaccurate to say that GDP does not capture wellbeing. It captures at least the wellbeing that results from the production of goods and services. Indeed, when statisticians quantify the goods and services produced, they take into account their utility to the consumer.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

6. India is home to a vast and diverse human capital. The country’s population of over 1.3 billion people is its biggest asset. However, despite its massive workforce, India still has a long way to go in terms of harnessing its human capital. Discuss. (250 words)

Difficulty level: Easy

Reference: The Hindu ,  Insights on India

Why the question:

The last few years have ushered in a harsh new reality where crises are the norm rather than the exception. Pandemics, economic slumps and extreme weather events were once tail-end risks, but all three have hit South Asia in rapid succession since 2020. COVID-19 alone put millions of lives and livelihoods at risk, and its impacts have already undermined decades of development gains.

Key Demand of the question:

To write about human capital and ways to harness 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 by defining human capital.

Body:

First, in detail write about the human capital scenario of India – education, healthcare, women empowerment, entrepreneurship, technology, infrastructure, and skilled migration etc. Write about the benefits of harnessing human capital.

Next, write about the various impediments to India harnessing its human capital and ways to overcome those impediments.

Conclusion:

Conclude by writing a way forward.

Introduction

According to the OECD, human capital is defined as “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”. Investment in human capital is needed for technological growth, improving productivity, creating social innovations, etc.

India’s development trajectory is critically linked with investments in healthcare and education. Achieving the Sustainable Development Goals (SDGs) is firmly anchored in investing in human capital and inclusive growth. To reap the demographic dividend, the government is committed to improve the outcomes in education and skilling and provide affordable healthcare to all.

Body:

The pandemic has caused disruption in the health, economy, and education of young people and continues to unfold in new psychological and academic trajectories.

Significance of human capital:

• Human capital is central to sustainable growth and poverty reduction.
• Development of human capital enables people to be more productive, flexible, and innovative.
• With rapid technological development, development of human capital has become prerequisite to cater to the changing needs of work.
• With rapid globalization and industrialization, markets demand workforce with higher levels of human capital, especially advanced cognitive and socio-behavioural skills.

India’s human capital status:

• In India, there are over 43 per cent of children under the age of five at risk of not fulfilling their full developmental potential due to poor nutrition, poverty, and lack of early stimulation.
• India ranks 116th amongst 174 countries on the Human Capital Index 2020 based on survival, health, and education, with a slight increase in score to 0.49 from 0.44 in 2018.
• The pandemic has risked the little progress made in building human capital, disrupting health services and pushing more than a billion children out of school.
• The 2019-20 national survey shows worrying trends in malnutrition and reversing progress towards meeting the goal of ending hunger, making efforts for achieving food security due to the pandemic even harder.
• India is home to 3% of the global malaria burden and more than one-fourth of the tuberculosis cases. India’s spending of its GDP on health and education is a mere 1.26 and 3 percent respectively.
• The Economic Survey indicates high out-of-pocket expenditure (OOPE) on health contributing to India’s poverty.
• India’s spending on healthcare is the lowest amongst the BRICS and other developing nations leading to serious supply-side deficits of health facilities and professionals.
• The literacy rate for India is at 78 percent as against global average of 86 percent. It is home to 37 percent of the global total of illiterate adults in the world.
• As per the India Skills Report 2021, there is a decline in percentage of employability score from 46.21 in 2020 to 45.9 in 2021 owing to lack of skill sets.
• The pandemic has led to rise of unemployment, India having the highest unemployed people at 10.4 percent in June 2021 as compared to neighboring Bangladesh, Sri Lanka, and, Pakistan at 4.19, 4.20, and 4.45 percent respectively.
• Less than 15 percent rural Indian households have internet access as opposed to 42 percent of their urban counterparts. According to the annual status of education report (rural) 2021, only 18 percent of the rural children attend online classes.
• Reasons for low Human Capital Development 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.

Way forward:

• 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 Government has been enhancing the expenditure on human capital along with adopting measures to improve the efficiency of expenditure by a convergence of schemes.
• Several labour reform measures including legislative ones are being implemented for the creation of employment opportunities and for providing sustainable livelihoods for the population who are largely engaged in the informal economy.
• 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.
• In essence, developing and empowering human capital to be able to shift to the new technology world seamlessly, should be the top priority of governments.
• Integration of higher education with skills and vocational education. Attracting the most credible talent to the teaching profession. Building global recognition to the education system.
• Streamlining regulation to attract credible private sector entities to education are some structural changes which are needed for transforming education.
• Access to high speed internet, multidisciplinary learning, design thinking, data science and information filtration capabilities are typical for making a future ready workforce.

Conclusion:

The gaps in the expenditure on social infrastructure like health and education are evident. There is a need to strengthen the delivery mechanisms of the government initiatives to ensure transparency and accountability. Protecting and investing in people’s health, education, and skilling is vital for reducing income inequality, and sustained inclusive economic growth. A strong social infrastructure is also the key to achieving the Sustainable Development Goals. Thus, to reap the benefits of the demographic dividend, proper investments in building the human capital of next generation citizens is the need of the hour.

General Studies – 4

Topic: Case Study

7. Rani was a bright and ambitious young woman living in a small town in India. She was determined to make something of herself, despite the limited opportunities available to her. Rani’s parents were proud of her and supported her dreams, but they were also traditional in their ways and believed in the practice of dowry.

When Rani turned 21, her parents started searching for a suitable match for her. They finally found a family who they believed would be a good fit for Rani. The family seemed well-educated, financially stable, and had a son who was close in age to Rani. However, the boy’s family demanded a hefty dowry in exchange for their son’s hand in marriage.

Rani’s parents were initially hesitant to agree to the demand, but they felt pressured to comply as they did not want to risk losing the opportunity of a good match for their daughter. They started gathering funds and assets to give as dowry, even though it was a financial burden for them.

As the wedding date approached, Rani started feeling uneasy about the situation. She didn’t want to start her married life with the burden of a dowry hanging over her head. She talked to her parents about her concerns, but they dismissed her worries, saying that it was a customary practice and that they had done it for their own daughters’ weddings.

On the day of the wedding, Rani was dressed in her bridal finery, but her heart was heavy with the weight of the dowry. During the ceremony, the groom’s family demanded more money, citing reasons such as the expensive jewellery Rani was wearing and the cost of the wedding arrangements. Rani’s parents had already spent a considerable amount of money on the wedding, and they refused to give any more.

The groom’s family became aggressive and started threatening to cancel the wedding if their demands were not met. Rani was terrified, and she started to cry. She knew that if the wedding was called off, her reputation would be ruined, and she would be shamed in front of the entire community.

Despite having left with no choice, Rani’s family lodge are still hesitant to file a complaint. But one relative secret informs the S.P of the region.

1. 1. 1. Identify the ethical issues in the above case.
      2. If you were the S.P, what action will you take? Will you persuade them to stop demanding dowry and go ahead with the wedding or book them for demanding/taking dowry?
      3. As a well-wisher and a family friend of Rani’s family, what will be your advice to the family on this issue?
      4. Is greed the major reason behind the demand of dowry? How can we eliminate the practise of dowry?

Introduction

A majority of dowry-related cases in India take place to adhere to the customs and traditions of the Indian society. People tend to follow what has been followed through the years and stick to such customs even if it causes discomfort to them. Many families in India give dowry to get rid of their insecurity of ill-treatment of their daughters by their in-laws. There is a perception that giving dowry will ensure their daughter’s security after marriage and non-discrimination.

Body

Ethical issues

• Dowry is against the law of the land
• It perpetuates patriarchy
• It indirectly keeps the society see women as a burden
• It makes woman a property of the man
• It is against women empowerment
• It is violative of rights of the woman and dehumanising.

Action taken as SP

• As a police officer it is a matter of concern and violation of law. It would be my duty to arrest those demanding for dowry. But thinking from well-wisher point of view, i should also think of the well-being of Rani and her family.
• But eventually it is clear that the family that is demanding more dowry and is threating the girl’s family that they ll stop wedding should never be trusted with future of their daughter Rani.
• The boy’s family as is clear will not keep Rani safe or secure and even if i by mistake persuaded the family to do the wedding in future there is no guarantee that Rani will be safe.
• So my advice to the family will be to call off the wedding and i will help in getting them back the money they invested in the wedding. Even if it means that it may cause damage to their societal standing. Because ultimately Rani would not be happy with the family where they demand dowry and create ruckus. Clearly uncultured people like that should not be trusted.
• I would convince them to find an alternate match who would no demand dowry and would want an equal partner in marriage.
• To begin with Rani herself was uneasy about this alliance and should never go ahead with it.

Reason for dowry

• Customs and traditions – A majority of dowry-related cases in India take place to adhere to the customs and traditions of the Indian society. People tend to follow what has been followed through the years and stick to such customs even if it causes discomfort to them.
• Social structure – The Indian society is mainly patriarchal and the dowry system is largely the manifestation of the patriarchal nature of the Indian society where women are being considered as a burden on the family and giving dowry is one kind of compensation for transferring its burden whereas male offsprings are considered to be superior and breadwinners thus making families demand dowry for them.
• Fear of ill-treatment – Many families in India give dowry to get rid of their insecurity of ill-treatment of their daughters by their in-laws. There is a perception that giving dowry will ensure their daughter’s security after marriage and non-discrimination.
• Societal pressure – Many a time, it becomes a matter of status to give dowry. In Indian society, it has become a common phenomenon to measure one’s status by the amount of money one spends on their daughter’s marriage. Similarly, the more educated and well-to-do family, the groom belongs to, the amount of dowry is that high. The pressure thus increases on both fronts, on the bride’s side to pay more, on the groom’s side to demand more.
• Social constraints – Compulsion to marry within one’s caste or clan further intensifies the problem. These limitations deplete the pool of desirable grooms leading to a lack of desirable options thus helping the desirable side to demand more.
• Illiteracy – Lack of education and awareness among people persuades them to give and demand dowry. If families were aware that women have equal status as men and they are not to be treated as a burden, then this system might have not perpetuated.

Eliminating the practice of dowry

• Proper implementation of anti-dowry laws may help. In addition, misuse of such laws must be checked.
• Women should be encouraged to become self-dependent and efforts should be made to make education accessible to every girl child.
• Efforts to spread awareness should be made against dowry and dowry-related violence and women should be made aware of their rights. Awareness campaigns should be organised at school and local levels.
• People should be encouraged not to practice such traditions which harm women rather treat women at par with their male counterparts and help them live a dignified life.
• Social practices like marriage within one’s caste or clan should be abolished so that there is the availability of a wide range of choices and women are not forced to enter into marriage with a person with dowry demands.

Conclusion

As we see, the problem of dowry is multi-faceted with several dimensions to be dealt with. The causes of dowry and its effects have grim implications for society. With women playing a major role in society, the onus lies with them as well to fight this social evil and help other women stand against it. Women education and their empowerment with change in the social mindset is the way forward.

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