[Mission 2024] Insights SECURE SYNOPSIS: 1 December 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: Distribution of key natural resources across the world (including South Asia and the Indian sub-continent);

1. Describe in detail the process of rat hole mining and explain the challenges linked to this practice. (250 words)

Difficulty level: Moderate               

Reference: Indian Express. , Insights on India

Why the question:

Though many agencies helped make it happen, the courage and tenacity of the rat-hole miners and those who worked for long hours for the cutting operations inside the pipe were truly inspirational. They are the real heroes, along with the 41 trapped workers who displayed unflagging fortitude.

Key Demand of the question:

To write about rat hole mining and issues regarding it.

Directive word: 

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.

Structure of the answer:

Introduction: 

Begin by defining rat hole mining.

Body:

First, write in detail about what rat hole mining is – involves digging of very small tunnels, usually only 3-4 feet high, which workers (often children) enter and extract coal. Rat-hole mining is broadly of two types – side-cutting procedure, where narrow tunnels are dug on the hill slopes and workers go inside until they find the seam, box-cutting, a rectangular opening is made, varying from 10 to 100 sq m, and through that is dug a vertical pit, 100 to 400 feet deep.

Next, write about issues in the above – being unscientific and unsafe for workers. The state government has appealed the order in the Supreme Court.

Conclusion:

Conclude by writing a balanced opinion on the above.

Introduction

Rathole mining involves digging of very small tunnels, usually only 3-4 feet high, which workers (often children) enter and extract coal. It is broadly of two types.

• Side-cutting procedure: Narrow tunnels are dug on the hill slopes and workers go inside until they find the coal seam. The coal seam in hills of Meghalaya is very thin, less than 2 m in most cases.
• Box-cutting procedure:A rectangular opening is made, varying from 10 to 100 sq. m, and through that is dug a vertical pit, 100 to 400 feet deep. Once the coal seam is found, rat-hole-sized tunnels are dug horizontally through which workers can extract the coal.

Body

Background

Two scientific methods of mining — vertical drilling and auger or horizontal drilling — were employed to rescue 41 workers on November 28 after 17 days of being trapped in the partially-collapsed Silkyara tunnel in Uttarakhand. The last leg of the rescue involved rat-hole mining, once used extensively in Meghalaya.

Though many agencies helped make it happen, the courage and tenacity of the rat-hole miners and those who worked for long hours for the cutting operations inside the pipe were truly inspirational. They are the real heroes, along with the 41 trapped workers who displayed unflagging fortitude.

NGT ban on Rathole Mining:

                The National Green Tribunal (NGT) banned it in 2014, and retained the ban in 2015, on grounds of it being unscientific and unsafe for workers.The NGT order bans not only rat-hole mining but all “unscientific and illegal mining”. The court placed much emphasis on a report of O P Singh, professor of environmental studies of North Eastern Hills University of Shillong that explained the grave environmental concerns and health concerns.

Major issues associated with Rathole Mining:

Ecology:

• In their petition to the NGT, Assam’s All Dimasa Students’ Union and the Dima Hasao District Committee complained that rat-hole mining in Meghalaya had caused the water in the Kopili river (it flows through Meghalaya and Assam) to turn acidic.
• No biological lives are seen in the river. The rocks in the river bed turned yellowish, which also indicates flow of acid mine drainage
• Ecologically Sensitive Zones are being degraded due to increased mining activities.
• Entire roadsides in and around mining areas are used for piling of coal which is a major source of air, water and soil pollution.
• Off road movement of trucks and other vehicles in the area caused further damage to the fragile ecology of the area which lies in the Zone 5 seismic area.

Risk to lives:

• During the rainy season, water floods into the mining areas resulting in death of many employees/workers.
• Health hazards due to poisonous gases like Hydrogen Sulphide, Methane can cause instant death of miners.
• The lack of regulations, treacherous work conditions lead to over-work and meagre pay.

Economic:

• According to government reports, the coal mining industry was among the biggest revenue earners for the state, generating about Rs. 700 crore annually, prior to its ban in 2014.
• The value of extracted coal stored in Meghalaya was officially estimated at over Rs. 3,078 crore four years ago.
• The Katoki panel reported that nearly 24,000 illegal mines are present in Meghalaya as interpreted from satellite images.

Reasons for its continuance:

Loopholes in the law:

• The ban has been rendered meaningless by the Supreme court-sanctioned permission to transport “already-mined” coal till January 2019. Mine owners have used this loophole to continue mining operations illegally.
• The State of Meghalaya has promulgated a mining policy of 2012, which does not deal with rat-hole mining, but on the contrary, deprecates it.
• Meghalaya comes under the 6^th Schedule of Constitution. The provisions allow for community ownership of land and autonomy over its use. However they are taken over by private players and tribals are left helpless.

Lack of Political and Executive will:

• The unholy nexus of Politicians and Contractors: About 33% of political candidates have stakes in coal mining and transport companies, thus lobbying against the ban order.
• A committee (headed by Retired Justice B.P. Katoki) appointed by the National Green Tribunal (NGT) has blamed poor implementation of NGT order by executive.
• The committee revealed that the state government shockingly has no records about the rat-hole mines, number of workers involved and any other data relating to death or injuries to the workers.

Geological Conditions:

• No other method would be economically viable in Meghalaya, where the coal seam is extremely thin unlike that in Jharkhand (where open-cast mining is followed).
• Sustainable extraction methods are likely to be technology-intensive and expensive. Not the preferred option of mine owners, legal and otherwise.

Lack of Alternate Sources of Livelihood:

• It takes long to locate the quarry as local people were scared to divulge information, fearing a backlash from mine owners and lose their livelihood.
• It gives quick money for day-to-day survival.
• It is a cheap method for the mine owners to extract coal and presence of abundance of Migrant labour.

Way Forward:

• The Supreme Court must rectify this situation by banning transport of all coal, or by lifting the ban but enforcing regulation to make the mining non-polluting and safe.
• The State mining policy should include ways of alternative towards Rathole mining.
• The Schedule VI provisions must be implemented in true letter and spirit by granting community ownership rights. Involvement of Autonomous District and Regional Councils to further implement the orders is needed.
• Alternative employment or economic engagement for the coal mine owners and labourers must be provided. g.: MGNREGA.
• Strict implementation of Child labour prevention laws and Right to Education Act for the children involved in mining.
• Use of Satellite imagery and drone technology to find the locations of illegal mines as suggested by BP Katoki committee.
• Involvement of Social Activists, NGO’s and Local communityand education of the people about perils of rathole mining.

Conclusion:

In May 2023, Meghalaya Chief Minister Conrad K. Sangma said the Coal Ministry approved mining leases for four of the 17 prospective licence applicants. This would lead to the commencement of ‘scientific’ mining ensuring minimal environmental impact through sustainable and legally compliant extraction procedures. Anti-mining activists, who are assaulted by miners off and on, said that ‘scientific’ would eventually be a fancy tag in a State where profit has driven coal mining.

General Studies – 2

Topic: India and its neighbourhood- relations.

2. The civil war in Myanmar will adversely affect India’s Act East Policy. India should focus on building a peaceful environment to put Myanmar back on the democratic map. Critically examine. (250 words)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

There seems to be a rejuvenation in the hopes for a return to democracy in Myanmar if recent events in the civil war are anything to go by. The Tatmadaw (the junta) has never had a bigger challenge until now since its February 2021 coup that ousted the National League for Democracy-led government.

Key Demand of the question:

To write about the importance of Myanmar to India’s act east policy and steps needed put Myanmar back on a democratic path.

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 giving context regarding Indo-Myanmar relations.

Body:

In the first part, mention about the importance of Myanmar to India’s Act East Policy and recent developments in Myanmar. Write about its impact on India’s Act East Policy.

Next, write the various options to ensure the return of democracy in Myanmar. Using U.N and ASEAN, Bilateral diplomacy etc.

Next, write about the other measures of outreach that must be explored by India for a successful Act east policy.

Conclusion:

Conclude with a way forward.

Introduction

Myanmar (formerly called Burma) military grabbed power in a coup, third time in the nation’s history since its independence from British rule in 1948. Military (also called Junta and Tatmadaw) has alleged that the general elections held in November 2020 were full of irregularities and that therefore, the results are not valid. This marked the end of Myanmar’s short-lived experience with democracy which began in 2011, when military implemented parliamentary elections and other reforms.

Myanmar today remains pessimistic about its future. Exactly two years ago, the military staged yet another coup, snatching power from the elected leaders. It derailed the limited democracy of the previous decade, violating the 2008 constitution which the generals had given to the people.

There seems to be a rejuvenation in the hopes for a return to democracy in Myanmar if recent events in the civil war are anything to go by. The Tatmadaw (the junta) has never had a bigger challenge until now since its February 2021 coup that ousted the National League for Democracy-led government.

Body

Geo-strategic significance of Myanmar for India

• Geopolitical interests:Myanmar sits at the intersection of India’s ‘Neighbourhood First’ and ‘Act East’ policies, and therefore is an essential element in India’s practice of regional diplomacy in the Indo-Pacific, and serves as a land bridge to connect South Asia and Southeast Asia.
• Strategic location:It serves as a buffer between India and China. Myanmar has coastal access to the Bay of Bengal. It connects Bangladesh, China and the restive North-eastern states of India. It is also close to India’s Nicobar archipelago.
• National security:Myanmar-China border has become the epicentre of local armed separatist groups operating on Myanmar soil, and Indian groups, ranging from ULFA in Assam to the NSCN (IM) in Nagaland.
• Economic interests: India has interests in natural resources of Myanmar and also developing certain projects like India–Myanmar–Thailand trilateral highway and Kaladan multi-modal project which is to link India’s landlocked north-eastern States to the Myanmar Port of Sittwe, located in the Bay of Bengal. Instability in Myanmar will be a roadblock to these ambitions.
• Countering China:A weakened Myanmar falling into the clutches of China as a satellite state will pressurize India to do Beijing’s bidding in regional affairs.

Various options to ensure the return of democracy in Myanmar

• International efforts should provide strong incentives and support for critical democracies in the region such as India, Japan and Indonesia to increase dialogue with and assistance for pro-democracy political parties and non-state ethnic nationalities authorities in Myanmar.
• The United States should increase high-level diplomatic engagement with ASEAN to enhance that organization’s resilience to attempts by China to undermine the role the bloc may play in putting the country back on a path toward democracy.
• Despite the military’s best effort to quash it, civil society in Myanmar persists and serves an increasingly important role providing essential services to vulnerable communities and by organizing anti-coup activities.
• The United States and other democracies should continue to provide financial and technical support to civil society.
• Support political dialogues across Myanmar’s diverse, anti-coup movement. These include dialogues under the People’s Representative Committee for Federalism and the National Unity Consultative Council.
• Where possible, the United States should support solidarity and trust-building within the anti-coup movement.
• Dialogues should aim to sincerely address past discrimination and abuses, including those by the NLD and others who have held positions of power.

Approach to be taken by India

• India faces the most challenging dilemma on how to respond to the military coup in Myanmar. India supports the process of democratic transition in Myanmar.
• Though India has expressed deep concern over recent developments in Myanmar, cutting off from the Myanmar military is not a viable option as India has significant economic and strategic interests in Myanmar and its neighbourhood.
• The dual power centres of the military and the civilian government that existed in Naypyitaw until recently, suited India.
• While India’s national interests clearly lie in dealing with whoever is in power in Myanmar, India would find it difficult to openly support the junta given the strong western and American stance.
• On the other hand, it can ill-afford to offend the junta by actively seeking a restoration of democracy there.
• India should continue to engage with the present regime in Myanmar working towards mutual development of people of both the countries while it should support sharing experiences in constitutionalism and federalism to assist Myanmar in resolving the prevailing stalemate.

Conclusion

India is left with very few clear policy options. And yet, it must continue to maintain relations with the government in power in Myanmar while discreetly pushing for political reconciliation in the country. In the meantime, the focus must be on improving trade, connectivity, and security links between the two sides.

General Studies – 3

Topic: Inclusive growth and issues arising from it.

3. What do you understand by inclusive growth? What are the major impediments to inclusive growth and how can they be overcome in the current scenario? Explain. (250 words)

Difficulty level: Moderate

Reference: Live Mint , Insights on India

Key Demand of the question:

India’s economy grew at 7.6% in the second quarter, which was an upside surprise. The stock market is cheering along. But GDP doesn’t tell us how well people at large are doing.

Directive word: 

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.

Structure of the answer:

Introduction: 

Start by defining inclusive growth and its key components.

Body:

In the first, in detail write the impediments for inclusive growth – Poverty, lack of adequate employment opportunities, lack of adequate education and skill development and governance deficit, especially in backward regions etc. Mention the impact of covid-19 pandemic on inclusive growth efforts.

Suggest measures and solutions to address these issues.

Conclusion:

Conclude that targeted policy measures addressing the above in the current scenario, with the efforts of government policies and programmes aiming at achieving targets in above key sectors can lead to inclusive growth.

Introduction

The concept of inclusive growth focuses on equitable growth for all sections of society. This involves ensuring that fruits of growth and development reach the poor and marginalized sections as well. Inclusiveness is a multi-dimensional concept. Inequalities that include, social exclusion, discrimination, restrictions on migration, constraints on human development, lack of access to finance and insurance, corruption – are sources of inequality and limit the prospect for economic advancement among certain segments of the population, thereby perpetuating poverty.

Body:

Major impediments to inclusive growth:

• Poverty alleviation is one of the big challenges for India. Eradication of poverty in India is generally only considered to be a long-term goal. Poverty alleviation is expected to make better progress in the next 50 years than in the past, as a trickle-down effect of the growing middle class.
• Increasing stress on education, reservation of seats in government jobs and the increasing empowerment of women and the economically weaker sections of society, are also expected to contribute to the alleviation of poverty
• Government schemes should target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc.
• Disparity
  • The disparity between -> Rich and Poor
  • The disparity between -> Urban and Rural
  • The disparity between -> Educated and Uneducated
• Demography: We have 550 million young people below 25 age, we have the ready workforce for the world, everything we do today must focus on this population, we need to provide them nutrition food, skills, and job opportunities to grow.
• Improving the delivery of core public services: The incomes rise, citizens are demanding better delivery of core public services such as water and power supply, education, policing, sanitation, roads and public health. As physical access to services improves, issues of quality have become more central.
• Maintaining rapid growth while making growth more inclusive: The growing disparities between urban and rural areas, prosperous and lagging states, skilled and low-skilled workers, the primary medium term policy challenge for India is not to raise growth from 8 to 10 percent but to sustain rapid growth while spreading its benefits more widely.
• Developmental challenges:
• Expansion: Expansion is happening every day in developing countries like India, but perhaps not happening in the pace we would like. We have roads but we need more roads likewise we need to expand energy, infrastructure, facilities, etc.
• Excellence: Leaving of our top 5 or 10% quality of our education, our services, our governance, is really not that so great, we must collectively work towards improving quality in everywhere.
• Equity: We need to make sure that the poorest to the poorer can indeed get the best education, health, jobs, and other facilities.
• Social development is possible through achieving Women Empowerment and eradicating the regional disparities. Though the Government is giving the women empowerment by giving special reservations, the women’s advancement in India is still not matched the expectations for inclusive growth.

Measures needed to overcome:

• Lowering the incidence of poverty and inequality requires a comprehensive strategy.
• Important steps need to be taken like framing policies to improve health, nutrition and education.
• Labour market reforms and reforms of direct taxation will have redistributive effects on the system.
• Schemes like National Rural Employment Guarantee Scheme (NREGS), provide 100 days or more of employment at a wage determined by government are already in progress but there is a need to check the cost effectiveness of these schemes
• Reforms to plug the leakages in the PDS, introduction of GPS tracking, activating vigilance committees, must be undertaken across the country.
• Research needs to be carried out by government agencies to document the ‘best practices’ in the implementation of government schemes.
• Minorities and other excluded groups, including the poor in upper castes, also need special programmes to bring them into the mainstream.

Conclusion

To achieve inclusiveness, all these dimensions need to be looked into. Institutional and attitudinal changes should be brought about though this will take time. Awareness about inclusiveness and empowerment is required to be created. Reducing poverty is to be taken as key element in our inclusive growth strategy and there has been some progress in that regard.

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

4. Addressing disguised unemployment requires a comprehensive approach involving policy reforms, targeted investments, and a focus on skill development to create a more dynamic and efficient labor market. Discuss. (250 words)

Difficulty level: Moderate

Reference: Live Mint , Insights on India

Why the question:

Jobs bear a weak link with economic growth and women’s workforce participation remains dismal. Indian employment grew but much of it was on account of women pushed by household distress to take jobs.

Key Demand of the question:

To write about disguised unemployment and steps needed to overcome it.

Structure of the answer:

Introduction: 

Begin by defining disguised unemployment. Give an example to substantiate.

Body:

First, mention the impact of disguised unemployment on the Indian economy –does not affect aggregate economic output, productivity is low and too many workers are filling too few jobs etc.

Next, suggest measures to overcome disguised unemployment – creating additional employment with proper wages, security of tenure and social protection, upskilling and reskilling of labor force etc.

Conclusion:

Conclude by writing a way forward.

Introduction

Disguised unemployment exists when part of the labour force is either left without work or is working in a redundant manner such that worker productivity is essentially zero. It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs.

Body

Impact of disguised unemployment on the economy

• It can be distinguished by low productivity and mostly follows informal labour markets and agricultural labour markets, capable of consuming large labour quantities.
• The productive capacity of labour is not translating into economic output. This is because the worker is not being utilised to his full potential.
• It may show many as employed but that would still not effect India’s growth and can remain stagnated.

Steps to overcome disguised unemployment

• Population control: Educating the masses for the population control measure through family planning programmes. BIMARU states still account for 23% of population and these are mostly out-migrant states.
• Utilising demographic dividend: Making credit available to the people for self-employment. Providing skill development and entrepreneurship programmes.
• Shifting to labour intensive industry: Encouraging mobility of the workforce from rural to urban areas.
  • There are number of labour-intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments.
  • Special packages, individually designed for each industry are needed to create jobs.
• Decentralisation of Industrial activities is necessary so that people of every region get employment.
• Women labour force: Concrete measures aimed at removing the social barriers for women’s entry and their continuous participation in the job market is needed.
• Vocational education: Government needs to keep a strict watch on the education system and should try to implement new ways to generate skilled labour force. This is being implemented in the New Education Policy.
• National Employment Policy (NEP) : There is a need for National Employment Policy (NEP) that would encompass a set of multidimensional interventions covering a whole range of social and economic issues affecting many policy spheres and not just the areas of labour and employment.
  • The policy would be a critical tool to contribute significantly to achieve the goals of the 2030 Agenda for Sustainable Development.

Conclusion

Disguised unemployment leads to trapping the economy in the lower growth without actual diagnosis of what is ailing the economy. It leads to non-usage of full potential of the demographic dividend that could otherwise reap rich benefits to the society and make it inclusive. Hence governments must soon shift jobs from agriculture to more labour intensive and productive sectors with high growth potential.

Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

5. Explain the PPP model of investment. What are the limitations of this model? Suggest measures to streamline PPP model for improving investment and reducing bottlenecks. (250 words)

Difficulty level: Easy

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable (revision).

Key Demand of the question:

Directive word: 

Directive word: 

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.

Structure of the answer:

Introduction: 

Start by defining PPP model of investment.

Body:

First, explain the various features of the PPP model and its various types.

Next, write about the various bottlenecks in PPP model – Regulatory hurdles related to Land Acquisition, crony capitalism, wrongful risk allocation, delays and stalled projects and conflicts between the government and the contractor etc.

Suggest steps as to how to overcome them.

Conclusion:

Conclude with a way forward.

Introduction

Public Private Partnership means an arrangement between a government/statutory entity/government owned entity on one side and a private sector entity on the other. It is often done for the provision of public assets or public services, through investments being made and/or management being undertaken by the private sector entity, for a specified period of time. There is well defined allocation of risk between the private sector and the public entity. The private entity who is chosen on the basis of open competitive bidding, receives performance linked payments that conform (or are benchmarked) to specified and pre-determined performance standards, measurable by the public entity or its representative.

Body

Challenges faced by PPP in India

• Construction/implementation risk, arising from delay in project clearance; contractor default; environmental damage.
• Market risk, arising from insufficient demand; insufficient demand.
• Finance risk, arising from inflation; changes in interest rates; increase in taxes, Change in exchange rates.
• Operation and maintenance risk, arising from the termination of the contract; technology risk; labor risk.
• Legal risk, arising from changes in law; changes in title/lease rights; insolvency of developer/service provider; change in security structure.

Way Forward

• The success of Public-Private Partnership PPP to a large extent depends on optimal risk allocation among stakeholders, the environment of trust among stakeholders, robust institutional capacity to undertake grooming and implementation of PPP projects.
• Further to foster the successful implementation of a PPP project, a robust PPP enabling ecosystem including liquid and diversified financial institutions; sound regulatory and arbitration framework; mature developers and experienced consultants etc. is essential.
• To develop the PPP projects in India, the Kelkar Committee proposed some changes. Some of them are:

• The PPP model requires the involvement of a private partner to leverage financing and improve operational efficiencies. Therefore, state-owned enterprises or public sector undertakings should not be allowed to bid for PPP projects.
• PPPs should not be used by the government to evade its responsibility for service delivery to citizens. This model should be adopted only after checking its viability for a project, in terms of costs and risks.
• Further, PPP structures should not be adopted for very small projects, since the benefits are not commensurate with the costs.
• Risk allocation and management: Public-Private Partnership PPP contracts should ensure optimal risk allocation across all stakeholders by ensuring that it is allocated to the entity that is best suited to manage the risk. A generic risk monitoring and evaluation framework should be developed covering all aspects of a project’s lifecycle.
• Strengthening policy and governance: The Prevention of Corruption Act, 1988 should be amended to distinguish between genuine errors in decision making and acts of corruption by public servants.
• Strengthening institutional capacity: A national-level institution should be set up to support institutional capacity building activities and encouraging private investments with regard to PPPs. Independent regulators must be set up in sectors that are going for PPPs.
• An Infrastructure PPP Project Review Committee may be set up to evaluate PPP projects. An Infrastructure PPP Adjudication Tribunal should also be constituted. A quick, efficient, and enforceable dispute resolution mechanism must be developed for PPP projects
• The government should notify guidelines for auditing of Public-Private Partnership PPPs, only enabling the review of government internal systems. Special Purpose Vehicles (private partners) should follow norms of corporate governance and financial disclosures as per the Companies Act, 2013.
• Strengthening contracts: The private sector must be protected against such loss of bargaining power. This could be ensured by amending the terms of the Public-Private Partnership PPP contracts to allow for renegotiations.
• PPP must not be a short cut only to save money or bridge fiscal gaps or transfer risks; it should be used to improve service quality or bring efficiency improvements.

Value addition

Need for PPPs in nation building:

• Better infrastructure: It is a fact that most governments face the problem that public financing is not enough to bridge the gap between infrastructure need and available funds. In this respect, infrastructure development has to rely increasingly on private markets to leverage and mobilize capital.
• Risk sharing: The private sector is considered to be more proficient in resource acquisition and utilities deliverance than the government, and, therefore, it is further bolstering government’s good fortune to impart the related risks to the private segment.
• Optimum allocation of resources: PPPs can help in the optimum allocation of public resources for the development of infrastructure. Though conventional models of public acquirement concentrate on accomplishing the most reduced forthright expenses in conveying infrastructural ventures infrastructural projects, PPPs concentrate on delivering cost-effectiveness over the duration.
• Innovations: Development is another imperative idea that the private segment can convey to public utilities. As a rule, people in the public sector may not be as inventive similar to the private area. The private division is constantly hunting down new items and utilities to expand its aggressive edge and to save costs.
• Aid in growth of other sectors: To the government, PPP frees up fiscal funds for other areas of public service and improves cash flow management as high upfront capital expenditure is replaced by periodic service payments and provides cost certainty in place of uncertain calls for asset maintenance and replacement.
• The catalyst for the economy: To the private sector participants, PPP provides access to public sector markets. If priced accurately and costs managed effectively, the projects can provide reasonable profits and investment returns on a long-term basis.
• More employment generation: Development of infrastructure will need manpower at various levels and hence it will generate more employment opportunities for the people.
• Improves the image of the country: There will be more development of better physical infrastructure and services through PPP and it will create a good impact on tourism and other enthusiast investors.
• Attract FDI: Scope for investment by the private sector in infrastructure will also provide the opportunities to foreign investors to participate and the financial crunch can be meted out easily. The better infrastructure is also a major boost to foreign direct investment (FDI).

Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

6. The balance of payments crisis that emerged in early 1991 played a pivotal role in India’s decision to adopt the policy of Liberalisation, Privatisation, and Globalisation (LPG). Examine. (250 words)

Difficulty level: Easy

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable (revision).

Key Demand of the question:

To write about the causes of LPG reforms and its impact.

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 of BOP crisis of 1991.

Body:

First, write about the various factors that led to crisis of 1991.

Next, explain the Liberalisation, Privatisation and Globalisation of the India economy and what it meant.

Next, write about the impact of LPG reforms of 1991 – write both positives and negatives for the reforms.

Conclusion:

Suggest a way forward on how to deal with the negatives.

Introduction

Balance of Payment (BoP) of a country can be defined as a systematic statement of all economic transactions of a country with the rest of the world during a specific period usually one year.

It indicates whether the country has a surplus or a deficit on trade. When exports exceed imports, there is a trade surplus and when imports exceed exports there is a trade deficit.

Body

Evolution of India’s BoP and various crises faced

1991 BoP crisis was one of the worst crises that India had to face. The then government was close to default, as RBI had refused new credit and foreign exchange reserves had been reduced to such a point that India could barely finance three weeks’ worth of imports.

• Widening of trade gap due to rise in imports against a small growth in exports and increased cost of imports.
• The sharp rise in crude prices due to the Gulf crisis.
• Deterioration in the Exchange Rate of Rupee.
• India’s current account deficit (CAD) had already touched 2.7% of the GDP in 1988-89.
• From mid-1990, financing the CAD became arduous.
  • Traditional sources of financing started drying up.
  • The main factor contributing to the rising current account deficit was decline in the growth of net invisible earnings.
• Decline in migrants’ remittance from abroad.
• Non-resident deposits, which contributed significantly to bridge the CAD, had also started flowing out.

liberalization, privatization and globalization reforms

The liberalization, privatization and globalization regime launched in 1991 completed its 30 years in 2021. The 1991 was a landmark moment in India’s post-independence history that changed the nature of the economy in fundamental ways.

A severe balance of payments problem triggered an acute economic crisis in 1991. In response, India’s economic establishment launched a multipronged reforms agenda to repair India’s macroeconomic balance sheet and ignite growth.

India’s Post-1990 Economic Strategy

• It dismantled the vast network of controls and permits that dominated the economic system.
• It redefined the role of the state as a facilitator of economic transactions and as a neutral regulator rather than the primary provider of goods and services.
• It led to moving away from a regime of import substitution and to integrate fully with the global trading system.

Positive effects of LPG Reforms

• By the first decade of the 21st century, India began to be seen as one of the fastest growing emerging markets.
• India’s annual average growth rate from 1990 – 2010 has been 6.6 % which is
  almost double than pre reforms era. GDP growth rate surpassed 5% mark in early 1980’s.
• The 1991 reforms unleashed the energies of Indian entrepreneurs, gave untold choice to consumers and changed the face of the Indian economy.
• Far from poverty increasing, for the first time, there was a substantial reduction in it.
• 1991 reforms boosted services sector provided opportunities for individuals to develop their skills.

LPG reforms and inclusiveness

• During the reform period most Indian states experienced high average growth ratesin real unskilled informal wage and real unskilled agricultural wage. This explains the fall in poverty rates.
• Declining urban poverty and increasing income inequality were associated with growth in manufacturing exports and imports.
• Among manufacturing exports, during the 1990s, there was a phenomenal growth in exports of skill-intensive high-technology goods.
  • This change in the skill compositionof Indian manufacturing export basket offers a plausible explanation of the rise in income inequality during the 1990s.  
• Three unskilled labour-intensivemanufacturing goodsclothing, textiles, and leather still account for around 40% of manufacturing exports.
  • Expectedly, their growth had a favourable impact on urban poverty through increase in the unskilled money wage.
• Growth in aggregate output both in per capita net state domestic product (PCNSDP) and gross domestic product (GDP) is another source of lower urban poverty and higher income inequality.
• Exports found to be causing GDP growth means that the growth impact of trade may be an important factor underlying the observed changes in poverty and inequality.
  • Growth in exports of high-technology goods seems to be one major source of such trade growth nexus.

Increasing inequalities post liberalisation

• Post liberalisation, there was more focus on assuring investor confidencefor which the fiscal deficit ought to be well within limitsand the climate for investment to be conducive.
• Socialist mind set thus far was to spontaneously change to pro-market.
• This saw an illustration of Karl Marx’s “Primitive Capital accumulation” wherein there was displacement of poor from their places which made them inevitablylose the opportunity to grow out of their livelihood option that they inherited.
• The job growth has seen only marginal increase of 0.2%in the period of great economic growth indicates this.
• If we go byGini index pertaining to consumption theinequality is starker as compared with that we obtain pertaining to income, another fact that reinforces the above claim.
• Thus, poverty has beenreduced in absolute terms butnot in equitable terms making inequality much deeper. India has to rein in over the income disparity to begin with.

Way Forward

• For reducing inequality, some advocate measures such asredistribution of assets and wealthin favour of the poor via higher taxes for the rich.
• However, these may not be pragmatic solutions. The tax/GDP ratio has to be raisedwith a wider tax base.
• Fiscal instruments like public investment in physical andsocial infrastructurecan be used to reduce inequality.
  • The new generation wantsequality of opportunityrather than redistributive measures.
  • Everyone irrespective of caste, class and gender should have equal opportunities in education, health, employment and entrepreneurship.
• Economic andemployment opportunities improve with education and skills.
• The new generation wants better quality in schools and higher education.
• Finally, economic reforms should focus more on efficient delivery systems of public services.
• Many reckon that poor governance is the biggest constraint in achieving the aspirations of a new generation and reduction in poverty and inequality.
• A major institutional challenge is the accountability of service providers, particularly the public sector.
• Recent literature also focused on eradication of corruption for reduction in inequalities.
• Issues like electoral reforms, crony capitalism, election funding and corruption should be part of thereform agenda to reduce inequalities.

Conclusion

The 1991 reforms helped the economy stave off a crisis and then bloom. It is time to outline a credible new reform agenda that will not just bring GDP back to pre-crisis levels, but also ensure growth rates higher than it had when it entered the pandemic.

General Studies – 4

Topic: case study.

7. You are appointed as the S.P of a district. In the first month of your posting there is a protest organized by Gandhian followers against the mining mafia for which the district is notorious. The protest is primarily against Mr Gabbar who has amassed wealth due to illegal mining and has deep political connections. Not a single FIR has been registered against him so far.

There is pressure on the administration to keep the status quo along with ensuring that the protest dissipates quickly. The nature of protest is peaceful and as per Gandhian ideals of Satyagraha. However, the protestors are adamant that they will not budge unless action against Mr Gabbar is taken as per the law.

After two weeks of relentless protest, the leader of the protest is killed by some miscreant and this issue becomes a national issue. Protests spread to other districts and states like a wildfire. There is immense pressure on the administration to act.

1. 1. 1. What will be course of action as the S.P?
      2. What measures will you take that such inadvertent lapses do not happen in the future?
      3. Do you think the inaction by administration makes it ethically culpable in the attack on the leader?

Difficulty Level: Tough

Why the question:

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

Key Demand of the question:

To write about how the ideas and ideal of the Dr. Martin Luther King Jr still have an impact in India and across the world.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Begin by mentioning about the Plato’s 4 cardinal virtues – Wisdom, Courage, Justice and Moderation.

Body:

In brief, describe the virtues of Plato and what they meant according to him. Four cardinal virtues on which rest all the remaining moral virtues.

Next, one by one, bring out the relevance of these virtues in present. Cite examples as to show how these virtues are still important.

For e.g. – Courage in times pandemic etc.

Conclusion:

Conclude by stressing on the overall importance of the virtues.

Introduction

The case involves peaceful protest turning violent due to death of a Gandhian protester. There is also politico-criminal nexus due to which the individua; responsible for mining mafia is let off the hook, which shows that those with muscle and money power can bend the rule of law.

Body

Ethical values involved

• Gross injustice and violation of rule of law
• Corrupt officials who cannot bring a criminal to justice
• Impacting Right to Life of people who are affected by mining.

Stakeholders

• People of the district
• Politicians and other officials involved
• State government
• Myself as SP
• Mr Gabbar who is a major criminal

Course of action

There are two cases involved. One is bringing Mr Gabbar behind bars which is a tough job as he has the support of political leaders. Second is the death of innocent protester, which leads to widespread protests to other places.

Firstly, I as an SP will gather a team of officers who can be trusted and all non-corrupt. The task at hand is to collect evidence against Mr Gabbar to make a solid case for trial. This will require a lot of agility and speed or else there is chance of interference.

Next, simultaneously I would ensure that the person responsible for death of the protester is behind bars and also make a case with sufficient evidence to bring the person to justice.

Once this is done, there is a need to ensure that protests do not become violent. Will make people convince that the mining mafia will be put to an end and also work towards it. I will assure people of ensuring law and order in the district and request them to stop the protests. Meanwhile, as long as there are people who are peacefully protesting, enough police protection will be needed to those people.

Measures to ensure no repetition of lapses in future

• Making sure that peaceful and legal protests have enough reinforcements and police protection.
• Ensure that each and every corner of the district has a CCTV which is connected to central monitoring system.
• Safety audit of the district to be done, and careful patrolling of risky areas.
• Finding out those officials involved who have vested interest in protecting the accused.
• Busting the mining mafia by public exposure and writing to higher authorities.
• Deploying youth volunteer through recruits nearing mining areas to get intelligence info.

Inaction of administration is ethically complicit

On one hand, such an incident was not anticipated, especially leading to a murder. However, it is the nature of police job to ensure that no untoward activities happen during a peaceful protest. And it is the foremost responsibility of the police to bust any mining mafia and bring people to justice.

If the administration was proactive in handling the mafia and putting a stop to it, there would be no question of protests. Due to extraneous reasons of political intervention in protecting the accused, there was a breakdown in law and order. It only goes to say that ‘Big fish don’t fry’ in India. But as civil servants who have taken an oath to serve the nation with all our integrity, it is our duty to ensure no such activity Is taking place under our watch.

Conclusion

As reiterated before the mining mafia needs to be taking down in entirety by making a huge case against them with all evidence intact. The job is to do complete justice and not let miscreants breakdown the rule of law and the law of the land. Weeding out corrupt officials and exposing corrupt politicians is the first step in this case. Though the task may seem difficult, if we do not try then we are trying to fail.

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