[Mission 2023] Insights SECURE SYNOPSIS: 2 June 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: History of the world will include events from 18th century such as industrial revolution, world wars, redrawal of national boundaries, colonization, decolonization, political philosophies like communism, capitalism, socialism etc.— their forms and effect on the society.

1. The Crimean Peninsula has indeed been a source of political turmoil in European history, particularly since the 19th century. The Crimean War (1853-1856) had a significant impact on Europe, shaping political dynamics and causing ripple effects throughout the continent. Examine. (250 words)

Difficulty level: Tough

Reference: World History by Norman Lowe.

Why the question:

The question is part of the static syllabus of General studies paper – 1.

Key Demand of the question:

To write about the impact of Crimean war.

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 context Crimean war and who its wass fought between.

Body:

First, write about regarding the turmoil in the Crimean Peninsula starting from 19^th century until recent times.

 Next, write about the impact of Crimean war – Ottoman empires integrity, Russia’s waning influence over black sea, Opening up of Danube, Indirect impact on Unification of Italy, improvements in battlefield medicine.

Conclusion:

Conclude by summarising and linking it with current developments in the region.

Introduction

The Crimean War which had begun in October 1853 lasted eighteen months. It was fought between Britain, France, the Ottoman Empire and Sardinia on one side and Russia on the other. On 30th March 1856, the Crimean War was formally brought to an end with the signing of the Treaty of Paris. This formal recognition signed at the Congress of Paris came after Russia accepted a humiliating defeat

Body

Crimean war and turmoil

• The Crimean war escalated into a series of fragmented battles and sieges, causing huge loss of life and highlighting wider issues and failures pertaining to leadership, military intervention, mortality rates, medicine and mismanagement.
• The war itself garnered a great deal of attention and proved to be a significant and defining moment for Europe.
• It was first and foremost the embodiment of a ‘modern war’, using new technologies that would later characterise the wars of the next century.

Impact on Europe and Russia in particular

• Whilst the Treaty of Paris marked an important step, with all sides recognising the need for a peaceful solution, the logistics of competing interests in negotiations made it more difficult to put into practice.
• The main agreement did manage to create some tangible guidelines which included forcing Russia to demilitarise the Black Sea.
• This agreement was between the Tsar and the Sultan who maintained that no arsenal could be established on the coastline.
  • For Russia this clause in particular proved to be a major blow, weakening its power base as it no longer could threaten the Ottoman Empire via its navy.
  • This was thus an important step in scaling down the potential for escalating violence.
• Ottoman empire inclusion in Europe: In addition, the treaty agreed the inclusion of the Ottoman Empire into the Concert of Europe which was essentially a representation of the balance of power on the continent, instigated back in 1815 by the Congress of Vienna.
• Reigning Russia: Russia on the other hand was forced to return the city of Kars and all other Ottoman territory which it had taken into its possession.
  • The principalities of Wallachia and Moldovia were thus returned as Ottoman territory, later granted independence and eventually turned into modern-day Romania.
  • Russia was forced by the treaty to abandon its claim of a protectorate for Christians living in the Ottoman Empire, thus discarding the very premise which engaged Russia in war in the first place.
  • In exchange, the alliance of powers agreed to restore the towns of Sevastpol, Balaklava, Kerch, Kinburn and many other areas back to Russia which had been occupied by the Allied troops during the war.
• Black sea: A major consequence of this agreement was the reopening of the Black Sea for international trade and commerce.
  • The importance of resuming trade was a major consideration for all involved.

Consequences and future prospect as a result of Crimea war

• The Crimean War saw the balance of power change hands in Europe.
• Whilst Russia suffered a major defeat, Austria, which had chosen to remain neutral, would find itself in the coming years at the mercy of a new rising star, Germany.
• Under the leadership of Bismarck, who took advantage of fraught relations, new strategy for survival emerged. Austria would end up uniting with Hungary in a monarchical empire. Meanwhile, Sardinia, a participant in the alliance at Crimea would intervene in Italian affairs, ensuring that a united nation of Italy would emerge out of the territorial chasms of Europe.
• Traditional empires were now under threat, with Britain and France sensing the urgency and need to maintain a grip on affairs.

Conclusion

The Crimean War highlighted how difficult it was to keep a balance of power in Europe. The end of the war resulted in a new era of relations, a new way of doing things; the old traditional empires stretched over continents gave way in Europe to the nation-state. Change was coming.

Topic: population and associated issues.

2. What factors contribute to the decline in the Total Fertility Rate (TFR) of India? Evaluate the difficulties that India faces as its fertility rate decreases in a thorough manner. (250 words)

Difficulty level: Easy

Reference: Live Mint , Insights on India

Why the question: 

The article discusses the challenges faced by India in achieving replacement-level fertility, the disparities in Total Fertility Rates (TFRs) across different regions, and the resulting crisis of representation.

Key Demand of the question:

To write about the causes of falling TFR and the challenges it poses.

Structure of the answer:

Introduction: 

Begin by giving context from the NFHS-5 data.

Body:

First, write about the factors that have contributed to declining TFR are: Higher education, increased mobility, late marriage, financial independence among women and overall prosperity.

Next, possible challenges that the falling TFR may lead to.

Conclusion:

Conclude by suggesting solutions to the challenges.

Introduction

Total fertility rate (TFR) indicates the average number of children expected to be born to a woman during her reproductive span of 15-49 years. The data in NFHS 2019-21, the fifth in the survey series, shows the fertility rate at 1.6 per cent in urban areas and 2.1 in rural India.

Body

Recently released data from National Family Health Survey’s fifth round (NFHS-5) reveal that India’s Total Fertility Rate (TFR) has decreased to 2.0 from 2.2 in the previous round. TFR is the number of children born to a heterosexual couple during their reproductive life. Given that 2.1 is the figure at which the population is maintained at a stable level, taking into account the likelihood of some child deaths, the latest number suggests that the spectre of population explosion need no longer haunt India.

Even as the goal of population stabilisation is being achieved, it is imperative that we invest in fostering the health and wellbeing of all our people, throughout their life course. Decline in fertility frees up funds for investment in development of our human resources.

Value addition

Trends in the declining Total Fertility Rate in India

• NFHS-5 places the total fertility rate (TFR) at 2.0. known as replacement level of fertility. This decline is spread evenly across the country.
  • 28 states and UTs have a TFR of 9 or less, with seven below 1.6.
  • All southern states have a TFR of 1.7-1.8, similar to that of Sweden.
• Even states that have not reached replacement fertility — Bihar and Uttar Pradesh — seem to be head in that direction.
• Madhya Pradesh and Rajasthan that were part of the lagging states have achieved TFRs of 0.
• With falling fertility (currently 2.0), the median age of India has risen from 24 years in 2011 to 29 years now and is expected to be 36 years by 2036.
  • With a falling dependency ratio (expected to decrease from 65% to 54% in the coming decade taking 15-59 years as the working age population), India is in the middle of a demographic transition.

Reasons for falling fertility rate:

• Higher education, increased mobility, late marriage, financially independent women, overall prosperityare all contributing to a falling TFR.
• It goes below 2 in both urban and rural areas, where girls complete schooling and reduces further as they pass college.
• Bihar, with the highest TFR of 3.2, had the maximum percentage of illiterate women at 26.8%, while Kerala, where the literacy rate among women is 99.3%, had among the lowest fertility rates.
• Increased focus on family planning by use of Contraceptives, increased tubectomies and relatively lesser vasectomies have also contributed to the reducing TFR.
• Urbanization, reduced joint family system, increasing nuclear and single-parent families, higher cost of living in urban areas and higher wages have discouraged aspiring parents to reduce the number of kids.
• Working people in urban areas want better pay, implying that they have to reduce the number of children so as to increase the time they spend at their workplace.
• As more cities come up, people move for jobs and employment tenure gets shorter, TFR may fall further.

Decreasing fertility rate and its challenges:

• The decrease in fertility and the associated decrease in the dependency ratio, in turn lead to an increase in the share of the population concentrated in the working ages and hence in the ratio of the working age to the non-working age population.
• Dependency ratio:
  • The proportion of workers rises sharply, even as the proportion of dependants falls. In many countries, the ratio of workers to dependents goes up, giving a huge boost to per capita income.
  • India will see a significant rise in working age adults India’s dependency ratio that is the number of dependents to working people is low at 0.6, compared with the developed countries. That ratio is going to decline further with fertility rates continuing to fall.
• For the next few decades India will have a youthful, dynamic and productive workforce than the rest of the world.
• A demographic trend where the proportion of persons aged 15-24 in the population increases significantly compared to other age groups which paired with limited employment opportunities may contribute to increased poverty, hunger, malnutrition, poorer health, lower educational outcomes, child labour, unsupervised and abandoned children, and rising rates of domestic violence.
• Education constraints:
  • There are serious problems with Indian higher education. These include a shortage of high quality faculty, poor incentive structures, lack of good regulation
  • India is home to the world’s largest concentration of illiterate people in the world
• Health:
  • At the primary level, there are also serious problems with health and nutrition that impact the effectiveness of education and the capacity for learning.
  • In future large proportion of older working aged people who face longer periods of retirement, accumulate assets to support themselves.

Way forward:

• Health and education parameters need to be improved substantially to make the Indian workforce efficient and skilled.
• Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) models; strive for significant operational and financial involvement from the private sector
• Focus on underprivileged sections of society and backward regions of the country thereby enabling a move out of poverty; similarly, focus significantly on the unorganized or informal sector workforce.
• Measures should have pan Indian presence and not just concentrated in metropolitan cities as most of the workforce is likely to come from the rural hinterland.
• Investing in people through healthcare, quality education, jobs and skills helps build human capital, which is key to supporting economic growth, ending extreme poverty, and creating more inclusive societies
• New technology could be exploited to accelerate the pace of building human capital, including massive open online courses and virtual classrooms
• Policymakers should have a greater incentive to redouble their efforts to promote human capital so that it can contribute to economic growth and job creation

Value addition

Findings from NFHS-5

• NFHS-5 finds that there has been a significant increase in current use of any modern contraceptive method, which stands at 56.5 per cent in 2019-21 against 47.8 per cent in 2015-16. The share of condoms is 9.5 per cent against 5.6 per cent in 2015-16.
• The uptake of female sterilisation has gone up to 38 per cent against 36 per cent in 2015-16.
• The uptake of injectable contraceptives, introduced in 2017, remains abysmally low at 0.6 per cent.
• The increase in female sterilisation shows that the onus of family planning remains with women, with men not participating in the process and “shrugging responsibility.
• The quality of care in family planning has shown significant improvement with 62 per cent of current users reporting that they received information on side effects from service providers. This has increased from 46 per cent in the last survey.
• The number of women who have a bank account they operate themselves has increased significantly from 53 per cent in 2015-16 to 79 percent, the data show.

General Studies – 2

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

3. To ensure deeper collaboration among the BRICS nations, they need to navigate the challenges posed by great power competition and diverging interests. Analyse. (250 words)

Difficulty level: Moderate

Reference: Indian Express , Insights on India

Why the question:

The article discusses the potential for the BRICS countries (Brazil, Russia, India, China, and South Africa) to expand their collaboration and influence on the global stage.

Key Demand of the question:

To write about the issues among the BRICS countries in the present day and measures needed to overcome them.

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 aims and objectives of BRICS.

Body:

In the first part, write about the various issues among the BRICS member countries which has brough them at a crossroad. Mention the current limitations of the BRICS bloc and hindrances to achieve its potential.

Next, mention the course corrections that are required – the role of trade and connectivity that can lead to collective economic benefits to the BRICS countries especially in the face of global economic turmoil, political consultation, deeper engagement over key areas etc.

Conclusion:

Conclude with a way forward and diplomatic steps needed to be taken in this regard.

Introduction

BRICS is the acronym coined for an association of five major emerging national economies that have similar economic development. The five countries are Brazil, Russia, India, China and South Africa. Together, BRICS accounts for about 40% of the world’s population and about 30% of the GDP (Gross Domestic Product), making it a critical economic engine.

It’s an emerging investment market and global power bloc. For India, BRICS is strategic especially in times where there is lot of geopolitical flux.

Body

Challenges within BRICS

• Varied Political Structures and values: While Brazil, India and South Africa are democratic, China and Russia are not.
  • Structure of financial systems, levels of income, education, inequality, health challenges also differ substantially within BRICS which makes it hard for them to speak with a unified voice and to co- ordinate action.
• Different geopolitical agenda: The Brasilia declaration notes shared perceptions on global economic and financial governance. However, their interpretation by each country depends on its national interest in specific circumstances.
  • on expansion of the UN Security Council, BRICS exposed its disunity yet again by sticking to the formulation that refuses to go beyond China and Russia supporting the “aspiration” of Brazil, India and South Africa “to play a greater role in the UN”.
  • Also the China-Pak axis will always be a hindrance for India to fully cooperate with China. China’s rejection of NSG membership to India is an example.
• Diverging long-term economic goals of member countries: Though the five nations have greatly increased their combined economic heft since the turn of the century, the share is imbalanced.g. Brazil, Russia and South Africa’s shares of global output have actually shrunk since 2000.
  • Despite their combined population accounting for 40% of humanity, intra-BRICS trade still makes up just 15% of world trade.
  • Brazil also took India to WTO dispute resolution wrt sugar production.
• Ukraine crisis with Russia: The primary agenda of BRICS was rebalancing an international system dominated by the West.
  • However, the Ukraine crisis could act as a distraction from that primary agenda.
  • The geopolitical considerations of its members can come in the way of attaining the grouping’s original goal.

Overcoming the problems

• Create institutional arrangement: Challenging the economic might of the West in the near future might be close to impossible. Despite the group comprising China, India and Russia, intra-BRICS trade accounts for less than 20 per cent of global trade.
  • BRICS is far from having its own payment mechanisms, international messaging systems or cards.
  • The Ukraine crisis should drive home the need to create institutional arrangements that can cushion against similar financial turbulence in the future.
• Recalibrate structure and expand: BRICS requires a recalibration of its structure and agenda. Creating financial mechanisms and technological institutions could turn BRICS into a G20 for developing nations.

• • It’s time to revisit the idea of expanding the grouping by inviting new members.
  • This could also impart new vigour to the BRICS’s developmental goals.

• Economic cooperation between India and China: Economic cooperation between India and China is vital for the success of any future BRICS endeavour. The border conflict has created a mistrust of China in India.
• South-south cooperation:We need to expand south-south cooperation to share experiences on food and agriculture production and make expanded efforts to share India’s experiences for countries in Africa and Asia.
• In the current situation, New Delhi is unlikely to take an anti-West stance.
• India, unlike China, is neither a UN Security Council member nor does it have major sticking points with the West. At the same time, India is not a part of the Western camp.
• That does open up the possibility of New Delhi taking a more proactive position in BRICS.The two powers need to come together for the sake of global governance reform.

Conclusion

The Ukraine crisis could be an occasion for the leaders of BRICS nations to commit themselves to the original goal of the bloc. It’s an opportunity they shouldn’t let go of. A significant amount of convergence on economic issues is required for BRICS to work as a strong multilateral body that will have a significant effect on global governance.

Value Addition

About BRICS and areas of cooperation

• Economic Cooperation: There are rapidly growing trade and investment flows between BRICS countries as well as economic cooperation activities across a range of sectors.
  • Agreements have been concluded in the areas of Economic and Trade Cooperation; Innovation Cooperation, Customs Cooperation; strategic cooperation between the BRICS Business Council , Contingent Reserve Agreement and the New Development Bank.
• Reform of multilateral institutions: BRICS was founded on the desire to end the domination of the western world over institutions of global governance (IMF, World Bank, UN) and strengthen multilateralism.
• Combat Terrorism: Terrorism is an international phenomenon impacting all parts of the world. Recent developments in Afghanistan stress the need to bridge the gap between rhetoric and action.
  • In this context, BRICS is attempting to shape its counter-terrorism strategy by crafting the BRICS Counter-Terrorism Action Plan.
  • It contains specific measures to fight radicalisation, terrorist financing and misuse of the Internet by terrorist groups.
• Promoting technological and digital solutions for the Sustainable Development Goals: This will help to improve governance and will also prove beneficial in the current situations e.g. Global pandemic response.
• Expanding people-to-people cooperation: This will improve gradually once all the travel restrictions are eased.

Significance of BRICS

• Economically, militarily, technologically, socially and culturally, BRICS nations represent a powerful bloc.
• 40 per cent of the world’s population: They have an estimated combined population of 3.23 billion people, which is over 40 per cent of the world’s population.
• 25 per cent of global GDP: They account for over more than a quarter of the world’s land area over three continents, and for more than 25 per cent of the global GDP.
• Two fastest growing large economies: The grouping comprises two of the fastest-growing nations, India and China.
• It has proved its mettle to an extent by establishing the BRICS New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA).

General Studies – 3

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

4. While National Asset Reconstruction Company Limited (NARCL) has the potential to assist banks in managing their NPA liabilities, its success will depend on various factors such as adequate capitalization, accurate asset valuation, efficient legal processes, and prudent lending practices by banks. 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 – 3.

Key Demand of the question:

To write about the potential of NARCL to solve the NPA issues in India.

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: 

Begin by defining National Asset Reconstruction Company Limited (NARCL) and its purpose.

Body:

First, describe the structuring of the NARCL and also mention its mandate that makes it a bad bank.

Next, write about the potential of NARCL – high capital, backing of the government, reduce the burden on taxpayers, revival or reclamation of assets etc.

Next, write about its limitations – presence of private ARC’s, issues with restructuring and write off, corruption etc.

suggest need of] right incentive structure and an innovative approach in handling assets for an effective performance of NARCL.

Conclusion:

Conclude by writing a way forward.

Introduction

The Reserve Bank of India on October 4, 2021 gave licence to the Rs 6,000 crore National Asset Reconstruction Company Ltd (NARCL), a move that will help kickstart operations of the bad bank. K V Kamath Committee also suggested setting up Bad bank to revive sectors such as Trade, Textile, NBFCs, Steel and construction, etc.

The National Assets Reconstruction Company Ltd (NARCL), the government-backed bad bank, has appointed former State Bank of India (SBI) official Natarajan Sundar as its managing director and chief executive.

Body

Potential of NARCL

• While there are 28 ARCs in the private sector, there was a need for government-backed receipts for big ticket resolutions.
• The government guarantee for the proposed security receipts is a positive stepping stone for unlocking stressed assets’ value.
• The upfront cash payment by the NARCL to bankswill immediately be accretive for the profitability and capital of the banks, however the ability of the NARCL to resolve these assets in a time-bound manner will be critical for future provision writeback by banks
• The whole idea is to ensure that these assets for which this whole set-up is being created, and the value that is locked in the assets is realised and comes back to the banks; they use it as agrowth capital and the banking system becomes more robust
• From the perspective of a commercial bank saddled with high NPA levels, it will help.
  • That’s because such a bank will get rid of all its toxic assets, which were eating up its profits, in one quick move.
  • When the recovery money is paid back, it will further improve the bank’s position.
  • Meanwhile, it can start lending again.
• From the perspective of the government and the taxpayer, the situation is a little more muddled.
  • After all, whether it is recapitalising PSBs laden with bad loans or giving guarantees for security receipts, the money is coming from the taxpayers’ pocket.
  • While recapitalisation and such guarantees are often designated as “reforms”, they are band aids at best.
  • The only sustainable solution is to improve the lending operation in PSBs.
• Lastly, the plan of bailing out commercial banks will collapse if the bad bank is unable to sell such impaired assets in the market.

Shortcomings of NARCL

• NARCL is owned largely by public sector banksand have its management drawn mostly from them.
• Also, the PSBs will be both shareholders and customers—and it leads to the danger of the bad bank being nothing more than a means to shift some bad debt from one book to another.
• The price at which NARCL buys the stressed loans from the banks might prove to be challenging, even though the transaction involves the public sector as both buyer and seller.
• The government guarantee mentioned earlier may ensure an 18% minimum recovery, but it is not free. Banks will have to pay a fee to the government for it. Adjusted for this, it remains to be seen how much recovery banks can make using NARCL.
• Banks though will have the freedom to sell the security receipts. But to what extent a secondary market for such securities evolves is debatable.
• Another issue is that physical assets tend to deteriorate soon. This has been a recurring problem in the IBC process, where pressing the bankruptcy solution too late has meant that there is little value left that will attract bidders. The NPAsthat the NARCL will handle are all old, legacy assets and probably there is little residual value left in them.
• It is not clear whether the bad bank has a finite end date—that is, it is a one-time solution—or whether it will continue to exist forever as another option for banks. In the USand other countries, the bad banks typically had a sunset clause and worked with a finite timeline in mind. In fact, the success of bad banks abroad too has depended on speedy disposal instead of trying to manage them until they got the best price.

Way forward & Conclusion

• Banks typically recover only 10-15 paise to a rupee against their fully provisioned bad loans, entailing substantial haircuts of 85-90 per cent.
• It is important that banks transfer bad loans to NARCL at realistic valuations that factor in such haircuts.
• There is a possibility of conflict of interest arising too. Banks will be part-owners of both NARCL (51 per cent stake) and the asset management company (49 per cent), and they will also be sellers to NARCL.
• It is important, therefore, that the processes are transparent and independent market professionalsare employed to avoid conflicts.
• The success of the bad loan experiment will require a talented management team of IDRCL and the incentive structure for its employees.
• If best talent is taken up from the market and is offered liberal incentives for recovery of loans above 18 per cent, it could generate more than what the industry is estimating now.
• This is a positive move for the banking sector. The success of the bad bank however will depend on the implementation and management of the transferred NPAs.

Topic: Conservation, environmental pollution and degradation, environmental impact assessment.

5. Carbon credits can play a role in incentivizing emission reductions and fighting climate change, their effectiveness and impact depend on the implementation and integration within a comprehensive climate policy framework. Evaluate. (250 words)

Difficulty level: Moderate

Reference: Live Mint

Why the question:

The article discusses how India can benefit from the trading of carbon credits. It highlights the potential for India to capitalize on its large renewable energy capacity and reduce its carbon emissions, thereby earning carbon credits in international markets.

Key Demand of the question:

To write about carbon market and India’s potential in using to fight climate change.

Directive word: 

Evaluate – When you are asked to evaluate, you have to pass a sound judgement about the truth of the given statement in the question or the topic based on evidence.  You must appraise the worth of the statement in question. There is scope for forming an opinion here.

Structure of the answer:

Introduction: 

Begin by defining carbon market.

Body:

In the first part, in detail, write about the structure and functioning of carbon market and its brief history.

Next, write about the potential of carbon markets in reducing carbon emissions and fighting climate change. Write the ways in which it would help. Substantiate with facts and examples.

Next, write about the challenges and limitations associated with carbon markets in India. Mention ways to overcome them.

Conclusion:

Conclude by writing a way forward.

Introduction

Carbon markets allow for buying and selling of carbon emissions with the objective of reducing global emissions. Carbon markets existed under the Kyoto Protocol, which is being replaced by the Paris Agreement in 2020. Carbon Markets can potentially deliver emissions reductions over and above what countries are doing on their own.

Body

About carbon market

• Carbon Markets and Carbon Credits are components of emissions trading, a market-based approach to to reduce the concentration of Greenhouse gases (GHG) in the atmosphere. It works by providing economic incentives for reducing the emissions of the designated pollutants. A carbon market allows investors and corporations to trade both carbon credits and carbon offsets simultaneously.
• Carbon credits (or allowances) work like permission slips for emissions.
  • When a company buys a carbon credit, they gain permission to generate more CO2 emissions.
  • One tradable carbon credit equals one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided.
• Credits are measured against ‘benchmarks’ or allowed GHG emissions. If emissions are below the allowed limit, the emitter earns carbon credits (reducing 1 tonne of CO2 earns 1 carbon credit).
  • If emissions are above the allowed limit, the emitter must buy carbon credits from those who have excess credits.
  • Thus, crossing the emissions limit imposes a cost (amount spent on purchase of carbon credits) on the emitter. The idea is that this cost will force the emitters to be more efficient and reduce emission.

Potential to have carbon market framework In India

• First, it will help in mitigating the adverse impacts of climate change by reducing the GHG emissions.
• Second, there are multiple co-benefits of offset projects such as: ecosystem management, forest preservation, sustainable agriculture, renewable energy generation in third-world countries, etc.
• Third, the voluntary carbon market for offsets is smaller than the compliance market, but expected to grow much bigger in the coming years. It’s open to individuals, companies, and other organizations that want to reduce or eliminate their carbon footprint, but are not necessarily required to by law.
• Fourth, consumers are increasingly aware of the importance of carbon emissions. Consequently, they’re increasingly critical of companies that don’t take climate change seriously. By contributing to carbon offset projects, companies signal to consumers and investors that they’re paying more than just lip service to combat climate change.
• Fifth, it opens an additional revenue stream for environmentally beneficial businesses. For instance, Tesla, the electric car maker, sold carbon credits to legacy car manufacturers to the tune of $518 million in just the first quarter of 2021.

Challenges with carbon market

• There are concerns regarding the effectiveness of carbon markets in curbing emissions.
  • Some companies simply buy credits without making any effort to reduce emissions themselves. It is cheaper for them to buy carbon credit than to invest in emission reducing technologies
• The issue of old carbon credits (certified carbon emissions, or CERs), issued under — the Clean Development Mechanism of the Kyoto Protocol — are still valid.
  • Counting them as valid would slow down climate action because those who are under commitments to reducing emissions would just buy the CERs and call it a done deal.
  • However, declaring them invalid would disappoint all those entities that were given the credits.
• Phenomenon of ‘double counting’ exists. If an emission reduction takes place in one country and another entity in another country buys the carbon credits, only one of the two countries should be logically allowed to use the activity against its own commitments — not both.
• Issues related to a fee levied on each carbon trading transaction for a fund to help poor countries adapt to the vagaries of the climate change.
• Buying carbon credits can deviate the rich nations from the path of reducing emissions. They can simply continue to emit and buy cheap carbon credits from developing countries.
• It is difficult to establish the amount of carbon reduced by offset projects (like afforestation or wind energy project). The complexity is in establishing baseline emissions (Emissions baseline represents what would happen if your project did not occur i.e., the emissions in the absence of the project).
  • This makes it difficult to verify emission reductions and assigning carbon credits.
• India’s own PAT (Perform, Achieve, Trade) Scheme has failed to achieve meaningful emissions reduction. According to an analysis by the Center for Science and Environment, the emission reduction under the scheme has been only 1.57% and 1.44% over the two cycles.

Conclusion

The establishment of a domestic carbon market is a progressive step. However, the actual benefit will depend upon the effectiveness of the market. For this, the Government must ensure that proper regulations are established. Moreover, there must be periodic assessment of its functioning and corrective steps its necessary. Climate Change is real and imminent, Government must take all possible steps to mitigate the challenges.

General Studies – 4

Topic: Probity in Governance: Concept of public service; Philosophical basis of governance and probity;

6. Probity plays a critical role in PPP projects by upholding ethical principles, public confidence is maintained, risks are mitigated, and the overall success and sustainability of public projects are enhanced. Discuss. (150 Words)

Difficulty level: Easy

Why the question:

The question is part of the static syllabus of General studies paper – 4 and part of ‘Conceptual Tuesdays’ in Mission-2023 Secure.

Key Demand of the question:

To write about importance of probity in public procurement and its role in reducing corruption.

Directive:

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 probity.

Body:

First, write about the need of Probity in Public Procurement and how it will affect the current challenges with respect to public projects. Cite examples to substantiate.

Next, write about the steps to ensure probity in PPP projects.

Conclusion:

Complete by writing a way forward.

Introduction

Probity can be defined as complete and confirmed integrity, uprightness and honesty. Upholding the highest standards of probity and integrity enables organisations to safeguard procurement activities to ensure those activities and processes are robust and can withstand scrutiny.

Body

Probity is a fundamental part of every procurement project and activity. As probity issues can arise at any stage of a procurement activity, probity needs to be anticipated as early as possible when planning a procurement (pre-procurement) and must be considered throughout the entire procurement lifecycle including category management, early market engagement, market analysis, sourcing and the entire contract phase.

Importance of Probity in public projects

• Legitimacy of the system
  • Foremost, it helps build up the legitimacy of the system, i.e. the state.
  • It builds trusts in the institutions of the state and a belief that the actions of the state will be for welfare of the beneficiaries.
• It protects you from legal and financial risk
  • With an unfair tender process comes the potential for legal and financial risk.
  • For Government procurement in particular, probity requires that all parties have a fair opportunity at being awarded contracts.
  • If there is evidence that one supplier has been favoured for reasons unrelated to the evaluation criteria, there’s potential for legal action to be taken against the awarding party.
  • Running a fair tender in accordance with probity ensures that risks of this kind are minimised as much as possible.
• It promotes and supports a healthy and competitive marketplace
  • When an industry is free from corruption and all suppliers are on equal footing in a tender process, it makes a big difference to the industry.
  • When the industry is healthy, it improves the quality and number of tender responses through greater competition.
• It builds trust with public
  • It helps address nepotism, Favouritism, Political partisanship.
  • Public reposes more trust in governance and therefore it facilitates participatory governance.
  • It leads to avoidance of sub-optimal outcomes, corruption and poor perception
• To serve the constitutional cause
  • Probity in Governance is required to serve the motto of Constitution. i.e. to provide Social, Political and economic justice to all. It enhances faith in the governance.
• It’s the right thing to do
  • Integrity in public procurement shouldn’t just be something you pursue because it benefits you in the long run.
  • Operating fair and ethical tenders is important simply because it’s the right thing to do.

Measures to reduce corruption in PPPs

• Enactment of the Public Procurement Bill 2012, followed by issuing and notifying the PPP Rules in their current form
• Training is required for both private sector and government sector officials. This would bring  about  greater  understanding  of  the  workings  of  the  private  and  government
• Awareness and training on probity related issues in procurement must also be included  in  curriculum  for  technical  colleges  and
• Clarity into  consultant  liabilities  needs  to  be  established  in  the  context  of  PPP  projects,  given  the  need  to  hold  them  accountable  for  project
• There is  a  greater  need for priority to be given for asset declaration requirements of all officials involved in procurement.
• There is  a  need  for  a  strong  whistleblower  law  and  equally  for  witnesses  and  victims  to enhance the existing protection and grievance redressal mechanisms.
• Clauses related  to  closure  of  debarment  period  of  contractors  and  entities  with  convictions  of  corruption  and  malpractices  in  procurement,  especially  in  PPP  scenarios
• For instance, the necessity for defaulting bidders to show evidence of establishing an integrity mechanism in place before they are allowed to bid again
• Strengthening monitoring mechanism- Implementation of a fraud risk register as a potential warning or fraud indicator system.
• It would  be  useful  to  build  a  mechanism  for  public  participation,  providing  information  regarding  contract  management  in  the  public  domain,  ensuring  access  to  records  for  stakeholders  and  civil  society  and  the  public  for  a  reasonable  number  of
• E-procurement is an important measure to enhance transparency in a procurement process but must not be mistaken for the only one.

Conclusion

It is a shared belief that the adoption of standards like “accountability”, “transparency” and “responsiveness” will lead to clean and efficient governance. However, standards do not, by themselves, ensure ethical behaviour: which requires a robust culture of integrity and probity in public life. The crux of ethical behaviour does not lie only in standards, but in their adoption in action and in issuing sanctions against their violation.

Topic: Case Study

7. You are a no-nonsense, honest officer. You have been transferred to a remote district to head a department that is notorious for its inefficiency and callousness. You find that the main cause of the poor state of affairs is the indiscipline of a section of employees. They do not work themselves and also disrupt the workings of others. You first warned the troublemakers to mend their ways or else face disciplinary action. When the warning had little effect, you issued a show cause notice to the ringleaders. As a retaliatory measure, these troublemakers instigated a woman employee amongst them to file a complaint of sexual harassment against you with the Women’s Commission. The Commission promptly seeks your explanation. The matter is also publicized in the media to embarrass you further. Some of the options to handle this situation could be as follows:

1. 1. Give your explanation to the Commission and go soft on the disciplinary action.
   2. Ignore the commission and proceed firmly with the disciplinary action.
   3. Brief your higher-ups, seek directions from them and act accordingly. Suggest any other possible option(s).

Evaluate all of them and suggest the best course of action, giving your reasons for it. (250 Words) (UPSC Mains 2014)

Difficulty level: Moderate

Why the question:

The question is part of the static syllabus of General studies paper – 4.

Structure of the answer:

Introduction: 

Start with giving the facts of the case and the hindrances to honest behaviour.

Body:

One by one evaluate the different options in front of that are provided. Using logic and various ethical theories to analyse their pros and cons of each option.

Next, write the course of action which you will take in the above situations. Analyse the pros and cons of that action. If there are any cons, write about how you will overcome/deal with those. Cite reasons for taking such path.

Conclusion:

Conclude by summarising the writing about cost one has to pay for being honest.

Introduction

The case involves various ethical issues like rogue behaviour of employees and openly defying the authority.  There is also gross injustice to the authority premised on false allegations, which can seriously damage the reputation and career of the officer. It is classic case where, good work is disincentivised by fabricated allegations that are grave.

Body

1. Option #1: Give your explanation to the Commission and go soft on the disciplinary action

Merits: My explanation will be given and it may clear the doubts in this regard. Since I go               soft on disciplinary action, the allegation may be taken back. It’ll reinstate my reputation. It                 will also show that there is transparency in handling such cases.

Demerits: Going soft on disciplinary action will mean the employees have a leverage over              me and they can dominate me to do anything. It will lead to more inefficiencies amongst them and this is a win for injustice. It will only promote and encourage more inefficiency and   wrongful means to defy authority in future. Giving in to wrong means used by the section of    employees to thwart the enquiry.

1. Ignore the commission and proceed firmly with the disciplinary action

Merits: Doing the duty to maintain departmental efficiency by continuing with the departmental enquiry. I will not give in to wrong means used by the employees. It will show them that nothing can make me afraid or stop me from taking right action. It will become an example for other employees to not do such immoral actions.

Demerits: Not replying would reinforce the allegation. Reputation is harmed and may not be reinstated. May lead to some action upon myself if I don’t explain myself. Transparency and accountability is lost. It shows insensitivity towards issues pertaining to women.

1. Brief your higher-ups, seek directions from them and act accordingly

Merits: Ensuring effective communication with seniors- honouring lines of authority; will                                help seek their guidance and experience in such matters; taking the seniors into confidence              on the matter could prevent/reduce personal harm later.

Demerits: Shows less initiative from my side, especially towards the allegation. Higher ups             may not want to get involved when harassment case is there.

Course of action

One is to gather evidence and prove myself innocent and follow the guidelines in such cases. Second is to reply to the commission regarding the veracity of claims and come clean. Next, I would not go soft on employees and further continue with the disciplinary action. Further, I would seek help of higher-ups and their guidance in this regard. I will keep them in loop regarding every step and also do as directed.

This will lead to better efficiency at work by other employees and set a future precedent for others who try to cause disruption at work. I can also take seniors into confidence and find employees who can vouch for my integrity. It is the most holistic solution with less demerits.

Conclusion

Truth will always prevail and triumph if one is always in pursuit of it. We cannot leave our moral ground even if immoral means are used against us. We can take refuge under truth as Gandhiji said, because it alone will lead to justice and fairness.

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