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IASbaba’s Daily Current Affairs – 30th November, 2016

Archives   IASbaba’s Daily Current Affairs – 30th November, 2016   NATIONAL   TOPIC: General Studies 1 Social empowerment Role of women and women's organization, population and associated issues, poverty and developmental issues.   Gender Equality in India: Long road ahead Gender budgeting- an instrument to increase gender equality In India, gender budgeting was formally adopted in 2005. Gender Budgeting is a powerful tool for achieving gender mainstreaming so as to ensure that benefits of development reach women as much as men. It entails dissection of the Government budgets to establish its gender differential impacts and to ensure that gender commitments are translated in to budgetary commitments. The rationale behind such budgeting is that national budgets impact men and women differently through the pattern of resource allocation. Women, constitute 48% of India’s population, but they lag behind men on many social indicators like health, education, economic opportunities, etc. Hence, they warrant special attention due to their vulnerability and lack of access to resources. That is why the way government allocates budgetary resources, it has the potential to transform the existing gender inequalities. In 2005, the finance minister included a separate statement on spending programmes that benefit women in particular in budget document. Since 2005, every budget has a statement that lists out schemes meant specifically for women. There are two types of schemes 100% provision for women At least 30% provision for women Along with central government, sixteen state governments have also implemented gender budgeting over past decade.   Is gender budgeting successful Recently, economists from IMF did an empirical check on states’ data to see if a focus on gender budgeting has made a difference in those states that have adopted it. Specific programmes targeting women have made a difference. The results were positive as it was revealed that the states that had adopted gender budgeting had moved towards greater gender equality that was measured by female to male enrolment ratios at different levels of schooling, especially, primary level has more intensity than secondary schooling. Giving free bicycles to girls has been a fruitful decision by some governments as it empowered the girls to visit the schools on their own, have reduction in travel time as well as be on time, whether school or home, with the cycle. Similarly, separate toilets play an important role in girls going to schools. Lack of safe and separate toilets was one of the foremost reason of higher drop out amongst girl students. This is also impacted by the nature of existing political power. As per an economist’s research, the village panchayats that are controlled by women tend to spend more on public goods such as drinking water which are closer to the concerns of women rather than men. (Women have to travel miles to collect drinking water). Such interventions are welcome but gender budgeting is unlikely to solve all the problems of gender inequality which not only prevents women’s growth but also hurts economic productivity. India has the lowest level of female participation in the labour force when compared to most other regional economies. Indian women enter labour market only when there is economic distress and retreat back when the situation improves. This is a rare case of employment going down when economy improves! Two more issues need public policy attention- economic freedom and public goods. There is a link between economic freedom of individual countries with the level of economic freedom its women enjoy. An index has been developed to measure the legal barriers women face when it comes to exercising the same economic freedom available to men in their countries. This index has five components- freedom of movement, property rights, financial rights, freedom to work and legal status. In India, the legal rights are protected by constitution but social norms prevent women from exercising these freedoms. Another issue is the public good- it is accessible to all citizens because their consumption is neither exclusive nor rival. Yet, the lack of certain core public goods such as safe streets or lack of clean drinking water are more likely to hurt the economic prospects of women more than men.   How can gender inequality be improved? The Gender Inequality Index measures gender inequalities in three important aspects of human development Reproductive health- measured by maternal mortality ratio and adolescent birth rates Empowerment- measured by proportion of parliamentary seats occupied by females and proportion of adult females and males aged 25 years and older with at least some secondary education Economic status- expressed as labour market participation and measured by labour force participation rate of female and male populations aged 15 years and older India’s Gender Inequality Index value of 0.56 and rank of 130 out of 155 countries is indicator of a greater disparity between men and women. No doubt India has shown progress with its gender budgeting initiative, especially the state of Kerala which has designed many innovative ‘gender in infrastructure’ projects that have demystified the notion that public expenditure related to infrastructure investment is gender neutral. Adding to it, there are small steps that can be taken to increase gender equality Involving women and girls in decision making process in programmes at grassroots level such as designing ways to implement MDGs, forming SHGs, talking about sex education etc. A simple gesture of girls using mobile phones increases their confidence. Stopping child marriages and strict action against sexual harassment cases and sexual offenders will make them empowered. Education should be incentivised for girls so that they are encouraged. On the other hand, educating and empowering mothers too in making choices about their children reduces gender gap. Political empowerment through village panchayats and other level of politics. Supporting women in non-traditional jobs like mechanics, driving, hospitality, mobile-phone fixing etc. will not only making long-lasting change in their lives but also help break social taboos. Men and women should be encouraged to work together. Women entrepreneurs should be provided incentives for their decision making power, risk taking abilities and generating employment opportunities.   Conclusion Gender Inequality has to be targeted from various dimensions to bring in gender equality. According to IMF, India’s gender budgeting efforts stand out globally because they have not only influenced expenditure but also revenue policies, and have extended to national and state government levels. Together with it, the classroom has the power to induct long lasting changes. Hence, girls’ education is the single best investment a country can make. One extra year of primary school boosts a woman’s earning potential by 10 to 20%. One extra year of secondary school boosts her earning potential by 25%. Hence, education is called for to be the first step in narrowing down the gender gap. Rest will follow. Connecting the dots: What do you understand by gender inequality? How can it be reduced? Substantiate. Gender budgeting is said to be foremost instrument in bringing about gender equality. Do you agree? Critically examine the need for gender budgeting and its impact.   MUST READ A last chance for amnesty Hindu   Dashed expectations Hindu   Bitter pills Indian Express   Cities at crossroads: Recycling begins at home Indian Express   Nuclear energy: Widening the scope of collaboration Indian Express   Reform agenda for parties and elections Livemint   RBI’s CRR action creates uncertainty Livemint   Forget MSP hike, govt needs to implement existing prices Livemint   Rail safety and loco drivers Business Line   Public procurement rules are a maze Business Line    

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 71]

Click here to get all the Tests– Archives Q.1) Consider the following statements about Insolvency and Bankruptcy Board of India (IBBI) It regulates the functioning of insolvency professionals, insolvency professional agencies and information utilities under the Insolvency and Bankruptcy Code 2016 The Board members include people from RBI, Ministry of Finance, Ministry of Law and Ministry of corporate Affairs Which of the following statements is/are incorrect? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about United Nations Commission on International Trade Law (UNCITRAL) It was established to promote the progressive unification and harmonisation of international trade law It is the core legal body of the UN system in the field of international trade law India has been a member of UNCITRAL since its inception Select the correct statements Only 1 1 and 2 1 and 3 1, 2 and 3  Q.3) Recently the Chinese diplomats have been using the famous traveller Hiuen Tsang’s legacy to rekindle ‘cooperation’ between India and China. Consider the following statements with regard to Hiuen Tsang He was known as ‘Prince of Pilgrims’ He travelled India during the reign of Chandra Gupta II Choose the appropriate code Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.4) In Indian context, protection of the cultural heritage of India is a part of Directive Principles of State Policy Fundamental Duties Archaeological Survey of India Choose the appropriate code 2 only 1 only 2 and 3 1, 2 and 3  Q.5) Consider the following statements with respect to coal The value of coal depends on the concentration of carbon in its composition Bituminous Coal has the highest calorific value Anthracite Coal is not found in India Select the correct statements Only 1 1 and 2 2 and 3 1 and 3 Download the Solution- Click here All the best IASbaba

IASbaba’s Daily Current Affairs – 29th November, 2016

Archives   IASbaba’s Daily Current Affairs – 29th November, 2016   ECONOMY   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.   Payment Banks and Financial Inclusion   News: Airtel Payments Bank started operations on 23 November and seven more private sector participants are expected to start operations in the same segment in the coming months. It will be interesting to see how these non-banking private sector players such as Airtel, Reliance Industries, Paytm, Fino, India Post, Aditya Birla Group, National Securities Depository Ltd and Vodafone—will perform.   What are Payment Banks   Payments Banks are banks with the following features: They will provide a limited range of products such as acceptance of demand deposits and remittances of funds. They will not perform the function of lending money in the form of loans. These banks will have a wide network of access points particularly in remote areas. They will supplement their own network with business correspondents and even depend on network provided by others. Technology will be extensively used to add value. Features and Functions of Payment Banks Payment banks cannot offer loans but can raise deposits of up to Rs. 1 lakh and pay interest on these balances just like a savings bank account. These banks can enable transfers and remittances through a mobile phone. They can offer services such as automatic payments of bills, and purchases in cashless, chequeless transactions through a phone. They can issue debit cards and ATM cards usable on ATM networks of all banks. They can transfer money directly to bank accounts at nearly no cost being a part of the gateway that connects banks. They can provide forex cards to travellers, usable as a debit or ATM card all over India and offer forex services at charges lower than banks. They can also offer card acceptance mechanisms to third parties such as the ‘Apple Pay.’   Benefits and Impact of Payment Banks The benefits arising from these payment banks are as follows: They are expected to use innovative technology-based banking. These banks will be highly instrumental in expanding the reach and usage of basic financial services across the country. With the scale of operations, there will be a significant leap forward in the number of access points, especially in rural areas. Example: In the pilot phase, Airtel will have 10,000 retail outlets operating as banking points. The new banks will gradually move towards providing additional financial services other than the basic services mentioned above. Payments bank can also take up the role of a business correspondent for another bank and act as a distributor of financial products. With the extensive use of technology, basic banking is set to undergo major changes, as the new banks are expected to depend heavily on technology and digital means to reduce costs of operations and increase ease of transactions.   Impact on Existing Banks Payment banks will also add pressure on the existing banks since the use of technology and the existing infrastructure make it easier for companies such as Airtel to open more accounts and increase their customer base. The existing banks will also face competition in terms of deposit rates offered. Upcoming banks are offering interest as high as 7.25% on savings deposits.   Areas of Caution Two areas where a cautious approach needs to be adopted are the understanding of the business model as well as the objective of financial inclusion that they seek to achieve.   Business Model The business models of these new banks are unclear and as a result three out of the 11 approved candidates have also dropped out of the race. The existing players have been very cautious with their plans due to ambiguity on many operational fronts. Reserve Bank of India (RBI) has just issued operational guidelines in October and Airtel has now started a pilot phase in one state only and there are no details on the plans of the other seven interested companies.   Financial Inclusion There is no doubt that financial inclusion will increase due to the emergence of payment banks but it is difficult to estimate the impact the new banks will have on reaching out to the financially excluded. RBI can initiate an independent survey to study the financial behaviour of those outside the formal system and understand the impact of new banks on the ground. The RBI should begin by tracking data on active agents and active accounts from all banks; payments banks will then be a part of this framework.   Role and Responsibility of RBI Responsiveness the RBI in resolving technical and other glitches that will arise as operations begin. It is important for the RBI to keep focus on the core objective of financial inclusion. RBI has to ensure efficient monitoring for customer protection. Supervision and regulation are highly essential in the success of payment banks.   Conclusion Payment technologies have proved hugely popular in other developing countries such as Kenya which is the most cited success story. Other than Vodafone’s M-Pesa is used by two in three of adults to store money, make purchases and transfer funds to friends and relatives. Admittedly, what the RBI is thinking of are an entirely different breed of banks — with higher capital and greater access to technology. It is time that RBI succeeds in garnering genuine interest among eligible promoters. Connecting the dots Payment Banks are the next big thing for the government’s success in financial inclusion. Comment. Highlight the hurdles in the way of their success and their integration with the existing banking system.   NATIONAL   TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes General Studies 4 Attitude: its influence and relation with thought and behaviour; moral and political attitudes; social influence and persuasion.   Towards a behavioural change- Demonetisation effect Change is the most consistent of all the time. And as ordinary it sounds, the extraordinary results it produces. Together with it joins Modernity which is about breaking stereotypes that govern individual and institutional habits. Today, technology has come to be the main driving force of change. From the steam engine to the electric bulb and internet, technology has defined the evolution of the human mind and civilisation. Hence, it is imperative for India to keep up with change in order to garner benefits of new technological inventions and utilisations. Demonetisation- Transformative change is in making Recently, the demonetisation of high value currency notes have created ripples in entire economy as well as lives of citizens. Demonetisation will cut off money channels to terrorists and extremist elements, weed out counterfeit currency and drive out black money in its short term objectives. But the long term changes and gains demand bringing in behavioural change at all levels of society. The demonetisation act can be called as a part of ‘cultural revolution’ wherein the people will be coming across various platforms of transactions which will push cash-less economy. Other such examples of cultural and behavioural changes that has been encouraged in public life is ranging from attending office on time, keeping working and living environments clean, accountability, transparency, technology adoption, innovation, etc. Though economists are busy estimating the extent to which economic growth will be hit because of the ongoing drive to replace high-value banknotes, there has been a lot of discussion on whether the government can use the current situation to push India towards a cashless future. Hence, instead of debating constantly on currency to GDP vis-à-vis other economies, there should be emergence of awareness amongst people how to use technology at their benefit.   Unsettling the established institutional culture The demonetisation drive has highlighted one thing clearly that the citizens should be prepared for an economy which has least cash transactions. This of course requires major attitudinal and behavioural change. Since independence, not many major restructural reforms have taken place which impact all the citizens together. No doubt, India has come a long way since independence in terms of growth and development but the period has equally been marred with serious incidences of corruption, opportunism, nepotism etc. The newly elected majority government seems in a mode to ‘unsettle the settled’ and create a base for a behavioural change. Also, it can be termed as a multi-pronged and comprehensive strategy to cleanse the system of all ills that have worked against the interests of the poor, the common man and the middle class. The new initiatives will be a messenger of a modern India on the lines of advanced countries, where financial payments and transactions will not require currency but technology will become a tool in the hands of common people. Additionally, targeted behavioural modification will eventually result in the elimination of black money leading to increased revenues to Central and state governments that ultimately benefits the common man.   The beneficiaries and behavioural change The citizens are being made conversant with respect to the digital medium for transacting through the use of digital wallets, payment banking and plastic money. E-wallets like PayTM and Freecharge are reporting a huge spurt in digital payments with increased views, transactions and their profits. Also, banks are reporting a jump in demand from small merchants for point-of-sale terminals and card swipe machines. This shows that small trader is adapting itself to modern payment options. For example, as per a newspaper report, an HDFC bank official says that demand for card swipe machines has risen to 5,000 daily from 5000 a month. This is a 30 fold increase. The same report states that such demand is from smaller players like kirana stores, vegetable vendors and stationery marts. The real estate has seen a dip in prices as expected and here, cash transactions will be now a thing of past! In addition, the infrastructure companies are going to benefit from decreasing interest rates and thereby increasing their potential to invest. NHAI (highways), IRFC (railways) and NTPC (power), who are authorised to raise money through tax-free bonds, are expecting to raise money much more cheaply as bond yields have crashed post-demonetisation. Hence, the right kind of investment is being mobilised. The Hawala transactions have also taken a hit as hawala rates (which generate dollars for rupee payments in India) have soared, making underinvoicing of imports to evade duties near impossible. Lastly, the common people are adapting themselves to these radical change more faster than expected. People are using plastic money, internet banking and e-wallets and spending less cash in their transactions.   IASbaba’s views No doubt, the economy is going to suffer in short term due to cash crunch as Indian economy was dependent on cash. But, the long term gains are perceived to be immense which are beneficial to citizens and country in future. Behavioural change is the hardest to acquire but it is not impossible. The citizens have welcomed the move as they know that black money, corruption, financing terrorist activities etc. are harming them in the end. And hence they have supported their elected government in this move. India can hope for a better tomorrow by adjusting to some friction in present. Connecting the dots: Demonetisation will spur a long term behavioural change amongst its citizens but they will have to pay a short term price for it too. Do you agree? Substantiate   MUST READ Lifelines that can sound death knells Hindu   Lessons from another jailbreak Hindu   Facebook and fake news Hindu   Trump, artificial intelligence and India Indian Express   Hardest hit, most invisible Indian Express   Forget growth to achieve growth Livemint   A water war in Asia cannot be ruled out Livemint   Why the temporary hike in CRR Business Line   India can rule world lifestyle market Business Line   Chabahar, a geo-political plus for India Business Line

AIR

All India Radio - Role of New Urban Development Policy in Overall Development

ARCHIVES   Role of New Urban Development Policy in Overall Development   Search 4th October http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx   TOPIC: General Studies 1 Urbanization, their problems and their remedies General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Central government has unveiled ‘The urban development strategy’ for next 20 years to use growing urbanisation for rapid urban development while at the same time committing itself to address issues of sustainable development and climate change. The role of new policies in economic development is important in uplifting the urban poor and city infrastructure. This policy is going to have impact on the socio economic prosperity of the people. Such kind of policy was needed as the way India is expecting to grow its economy in future and income of people are going to increase. The infrastructure has to be handled along with sound urbanisation policy to support the requirement of the population and good standard of living for them. The urban development needs lot of investment and hence there will be creation of lot of employment opportunities for the people which will create win-win situation for people and country. The Make in India dream cannot be accomplished until there is sound infrastructure in the urban areas because urban areas are supporting the industries. For long, urbanisation has been looked at for providing basic services- creating roads, sewage management, housing etc. In the new policy, the government has unveiled sustainable policies like reducing water and power use by half, renewable energy, public transport, inclusivity are the important elements of this new policy. Sustainable and inclusive cities are the key. These cities will be made sustainable with low on carbon emission, waste management. Agenda for next two decades in the report is to ensure economic growth and productivity, providing quality of life and addressing the issues of inclusivity, sustainability and climate change. Challenges to urban development The challenges are huge and the policy is envisaging great things. One challenge is huge investment. India is the only country where development of infrastructure has not happened even after decades of investment which shows that government has also not been successful in it. Public private partnership will give a boost. FDI is crucial in this sector. The majority of population is still struggling with poverty and inequality. And thus if their purchasing power and their income level is increased, the market will be a great emergent. Another challenge is that municipalities have been in red which need to be revamped. The local government is not providing services upto mark which is creating a limitation in successful implementation of urban development scheme. It's not that these entities are lacking funds, the funds have been dispersed to them over the years and if they have been using the funds in highly efficient manner, then there could have been better infrastructure. On the issue of global warming, India’s poor performance on industrial front, lack of infrastructure is big challenge. Hence, for future cities, with minimum resources, India has to achieve sustainable living. Hence promote more green living. Clustered setup because most cities have developed in highly unplanned manner and sprawling manner which is inefficient way to utilise the space. Urbanisation means that in a smaller space, one is able to create living set up, industries, facilities which is cost saving. Thus, everything has been considered to come up with something which is going to give economic prosperity, a developed status and preserve nature. Challenges of urban development include availability of land, labour and capital. In India, urbanisation has happened at very slow pace. In 2001 census, the growth is about 28% and in 2011 census it is about 31%. Sustainable urban planning In last two years, the central government has launched new urban missions and that has marked paradigm shift to country’s approach to urban development. This is promotion and development for human settlement as inclusive and sustainable entities. There has been promotion of cycling for last mile connectivity, compact and cluster urban development in promoting natural drainage patterns, reducing wastage generation of all kinds, promoting greenery in public places etc. These are new things which few cities like Chandigarh promote. Earlier, these things were not incorporated in the planning of cities but now it is certainly a sign of changing of towns. In Mumbai, there is reconstruction and redevelopment of the buildings. These initiatives are required which don’t create new cities but give more options on how to rebuild the old cities. Thus, the outcomes of new urban agenda based on sustainable urban planning would include reducing water and electricity use by 50% from that of normal use, enabling over 60% of urban travel by public transport, generating half of power from renewable sources, promoting walking and cycling for last mile connectivity, compact and cluster urban development, promoting natural drainage patterns, reducing waste generation of all kind, promoting greenery and public places etc. World Habitat Day is celebrated on 2nd October and theme for 2016 is ‘Housing at Centre’. Connecting the dots: What is the vision of government on ‘urban development strategy’? Critically analyse.  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 70]

Click here to get all the Tests– Archives Q.1) Consider the following statements about World Organisation for Animal Health (OIE) The OIE is the intergovernmental organisation responsible for improving animal health worldwide It is recognised as a reference organisation by the World Trade Organization (WTO) The World Assembly of Delegates is the highest authority of the OIE Which of the following statements is/are correct? Only 1 1 and 2 1 and 3 All of the above Q.2) Consider the following pairs Free Basics :: Facebook Internet Sathi :: Facebook Express WiFi :: Google Hyperloop :: Microsoft Which of the pairs is/are incorrectly matched? 1, 2 and 4 2, 3 and 4 2 and 3 1 and 3  Q.3) Which of the following places is the largest market for tomatoes in Asia? Pimpalgaon, Nashik, Maharashtra Kolar, Karnataka Khargpur, West Bengal Forberganj, Bihar Q.4) Consider the following statements regarding Shale gas exploration in India. Shale gas is natural gas that is trapped within shale formations, which are essentially fine-grained sedimentary rocks Andhra Pradesh leads in the shale gas exploration Fracking leads to contamination of drinking water and soil with toxic and carcinogenic chemicals and also causes mild tremors in the region Which of the following statements is/are correct? 1 and 2 2 and 3 1 and 3 All of the above  Q.5) Consider the following statements about National Culture Fund (NCF) It enables the government to mobilize extra budgetary resources by allowing direct contributions to the NCF account maintained outside the Consolidated Fund of India The NCF is managed and administered by a council chaired by the Minister for Tourism & Culture Donations to NCF will be eligible 100 per cent tax rebate under Section 80G of the Income Tax Act Select the correct statements Only 2 1 and 2 2 and 3 All of the above Download the Solution- Click here All the best IASbaba

IASbaba’s Daily Current Affairs – 28th November, 2016

Archives   IASbaba’s Daily Current Affairs – 28th November, 2016   GOVERNANCE AND INTERNAL SECURITY   TOPIC: General Studies 2 Issues and challenges pertaining to the federal structure. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Important aspects of governance, transparency and accountability and institutional and other measures. General Studies 3 Various Security forces and agencies and their mandate   Police Reforms in India   Introduction Despite a continual debate over the wisdom and ethics of such an arrangement, political control over the police has come to be accepted as an inevitable reality in modern democracy. It seems as if the police will eternally be mired in arbitrariness and corruption if this kind of system continues. Hence, there is a need to introduce police reforms in our country. Various steps have been carried out in the past to try and introduce reforms in the police. The Supreme Court guidelines in 2006 followed by the Justice Thomas Committee set up to monitor the implementation of these reforms, enacting of the Model Police Act drafted by a committee headed by Soli Sorabjee and recommendations by the Second Administrative Reforms Commission are a few to be named. Whatever reforms have been introduced till date or efforts have been made in our country have hardly altered the core of police image, which remains one of an organisation that is nothing but an appendage of the executive, without any operational autonomy. Challenges for the Police Forces There are a lot of the challenges that the police forces have to face and because of these challenges various reforms are needed. Such challenges include: Terrorist threats to the security of the state. Cyber-crimes will pose a serious threat. Maoist insurgency, militancy in the Northeast and separatist elements in J&K are bound to make the overall internal security scenario very grim.   Contemporary Situation A sense of disappointment over the lack of progress on reforms suggested by the present Prime Minister in 2014 with respect to the concept of SMART Police. The decline is essentially because of the excessive political interference. Supreme Court’s (SC) landmark directions issued in 2006 on police reforms have not been complied with by any state. States have enacted laws to circumvent the implementation of the Court’s directions and some states have passed executive orders which dilute or amend the SC’s directions. The Central government also failed to enact the Model Police Act as a result of the 2006 SC guidelines. The Centre should have taken exemplary steps so that the states would have followed its footsteps. This could have been done through Article 252 of the Constitution of India which gives the Parliament power to legislate for two or more states by consent. Such an Act could apply to the consenting states and to any other states by which it is adopted through a resolution passed by the legislatures of those states.   Supreme Court Guidelines The directives issued by the Supreme Court can be broadly divided into two categories: Those seeking to achieve functional responsibility for the police, and Those seeking to enhance police accountability. The SC directions include: Constitution of a State Security Commission (SSC) to check the political interference and review the performance of the police. Transparency in the process of appointment of the DGP. Separation of the law and order and investigative functions Establishment of a complaints authority are the more important among them. Ensure that police officers are provided with a minimum tenure security. Set up a Police Establishment Board (PEB) to decide transfers, postings, promotions and other service related matters of police officers.   Suggested Reforms The government should bring police/public order in the Concurrent List of the Constitution. Based on the recommendations of the Second ARC, the government should at least declare certain crimes as federal and entrust their investigation to a Central agency. Manpower deficiencies should be taken care of and the shortfall of almost half a million policemen nationwide should be bridged. Police transport and the facilities in police stations need to be of top quality. There are police stations in the country which don’t even have a telephone or wireless facility. Forensic facilities are inadequate in all the states. The states should follow the Gujarat model in forensics which has State, regional, district and mobile laboratories. Housing facilities for the police personnel should be taken care of since these have a direct impact on the welfare and morale of the policemen. Policemen are seen to be living in sub-human conditions. Regulation of working hours of policemen is very essential. This will increase efficiency and reduce any kind of resultant stress and multiple complications including rude behaviour with the public and domestic unhappiness. Separation of investigation from law and order also needs to be done and this was also one of the direction of the SC in its guidelines in 2006.   Conclusion Since police and law and order are subjects under the Constitution’s State List, the responsibility devolves upon the States. The security architecture of the country requires a lot more reinforcement and strengthening. Good internal security is essential to sustain the momentum of economic progress and provides the foundation for success and prestige in external relations as well. Connecting the dots Discuss the need for police reforms in our country and suggest reforms that are required to ensure efficient functioning of the police in India   HEALTH/NATIONAL   TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Amendment to HIV Bill, 2014 - It doesn’t address the concerns The NDA government had given its approval to introduce official amendments to the HIV and AIDS (Prevention and Control) Bill, 2014. However, when the bill has been made available in public domain, it has been not received well by the HIV community. The HIV and AIDS Bill, 2014 It was drafted to safeguard the rights of people living with HIV and affected by HIV. It sought to address HIV-related discrimination, strengthen the existing programme by bringing in legal accountability and establish formal mechanisms for inquiring into complaints and redressing grievances. It also sought to prevent and control the spread of HIV and AIDS, prohibit discrimination against persons with HIV and AIDS, provide for informed consent and confidentiality with regard to their treatment, place obligations on establishments to safeguard rights of persons living with HIV arid create mechanisms for redressing complaints. It aimed to enhance access to health care services by ensuring informed consent and confidentiality for HIV-related testing, treatment and clinical research. The proposed amendments and reaction The protection mandated in the Bill extended to the fields of employment, healthcare services, educational services, public facilities, property rights, holding public office, and insurance. But, now when the draft bill is public, it has received flak from the people affected by HIV as well as those fighting for their rights. Diluting the right to access treatment The bill was expected to guarantee the rights of India’s 2.4 million HIV positive community. In the Bill, the proposed Section 14 talks of prevention measures that the Central or State governments may take, “as far as possible,” for the provision of Anti-Retroviral Therapy (ART) and Opportunistic Infection (OI) Management, against the spread of HIV. This loophole makes the Bill weak and subject to interpretation, especially the inevitable right to access life saving anti-retroviral therapy. Before advent of ART, death was only option for People living with HIV (PLHIV) but since 2004, Indian government has been providing free-of-cost antiretrovirals for PLHIVs. Today, first-line and second-line ART is available in the government programme free of cost and soon third line of treatment may be also required. However, these drugs were available from government free of cost as it was largely funded by the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM). Now, this fund is in danger of being discontinued from 2017 and hence, the HIV community has legitimate increased apprehensions about access to life-saving medicines.   Injection Safety Programme An earlier version of the Bill clarified the need to strengthen injection safety programme as IDUs (Injecting Drug Users) can substantially reduce their risk of getting and transmitting HIV, viral hepatitis and other blood borne infections by using a sterile needle for every injection. However, Clause 22 of the amended bill simply states ‘injection safety requirements’ without specifying the rules. This once again makes the provision open to interpretation. The used needles can be used once again instead of destroying it completely or not boiling it with proper procedure. Ombudsman’s jurisdiction The original bill had proposed that the ombudsman shall inquire into violations in the provision of health-care services. This was an innovation of civil society. The bill had envisaged an ombudsman working at the district level who would attend to complaints on health issues relating to HIV. There are several cases involving health issues of PLHIVs not being attended to by health services especially in the private sector. Pregnant women living with HIV are worst discriminated against in health services. Thus, the idea was that PLHIVs would not have to go to court which would be cumbersome as well as expensive as a lawyer would be required. Here, they will have to only go to courts on violations of the law relating to health services only after going through the ombudsman, thereby making it quick and efficient. However, the amendment increased the scope of the ombudsman’s jurisdiction which mandates him to enquire into all violations of the provisions of the Bill including discrimination. Also, the new bill proposed that the ombudsman is now to function at the State level and he/she will be only a government servant. So now the ombudsman is neither a full-time officer nor trained in judicial matters. The disaster will unfold as the proposed ombudsman will have to deal with number of issues from informed consent to discrimination etc., coupled with the huge workload. Hence, the proposed amendment would only result in the whole mechanism becoming unworkable.   On employment As per the existing law, only a government or a public sector employee can seek employment or reinstatement if s/he is discriminated and not employed or illegally terminated. Hence, if the person is not employed by ‘State’ entities, — as defined under the Industrial Disputes Act — s/he cannot seek employment or reinstatement if s/he has been discriminated. For such cases, a person can only go the civil court and claim damages. The original draft of bill had provided for specific powers to the civil court including employment and reinstatement and compensation for loss of wages and damages. Disappointingly, the amended bill does not confer powers to civil courts in relation to employment, reinstatement and compensation. Conclusion There are approximately 21 lakh persons estimated to be living with HIV in India.  Even though the prevalence of HIV is decreasing over the last decade, the Bill would provide essential support to National AIDS Control Programme in arresting new infections and thereby achieving the target of "Ending the epidemic by 2030" according to Sustainable Development Goals. For this, the newly amended bill has to be changed which is creating it difficult for the HIV community of India to survive on a law which instead of giving them assurance, makes their treatment and way of living subject to interpretation. Connecting the dots: What is HIV and how is it a life threatening disease? How has India battled against HIV? Critically examine. The amendments to HIV Bill, 2014 has been criticised by the HIV community. Discuss the reasons and support the answer with possible solution.   MUST READ The centralising instinct Hindu   The stealth superbug, decoded Hindu   Cuba after Fidel Hindu   Who can become an Indian citizen? Indian Express   Across the aisle: No jobs, no credit growth, no private investments Indian Express   Why India needs to defend free trade Livemint   Mother nature versus climate change Livemint   The sickness in Indian manufacturing Livemint   There are no secrets in cyber space Business Line   Below the line Business Line  

Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 69]

Click here to get all the Tests– Archives Q.1) Recently the Ministry of Agriculture launched ‘e-pashuhaat portal’. Consider the following with respect to same. The portal has been developed under National Mission on Bovine Productivity It facilitates trade of live cows/buffaloes, frozen semen and embryos The portal has real-time authentic certified information on availability of germplasm Which of the following statements is/are correct? 1 and 2 1 and 3 2 and 3 1, 2 and 3  Q.2) Consider the following statements about Lapis Lazuli Corridor The corridor connects Afghanistan, Turkmenistan, Azerbaijan, Georgia and Turkey via road and rail It starts from Afghanistan and ends in Europe It is derived from the historic export route that Afghanistan’s lapis lazuli and other semiprecious stones were being exported through this route to Caucasus, Russian, the Balkans, Europe and North of Africa over 2000 years back Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above  Q.3) Joint defence exercises Indra-Neva, AviaIndra and Indra are between India and Only Russia US and Japan Japan, Vietnam and Philippines Russia US and Japan Q.4) Which of the following states has the highest % share of geographical area in the Indian Himalayan Region (IHR) Uttarakhand Jammu & Kashmir Himachal Pradesh Arunachal Pradesh Q.5) Consider the following statements about Defence Communication Network (DCN) It is the first tri-service communication and IT network of the Armed Forces It is capable of working on terrestrial as well as satellite mode of communication It has pan-India reach It is designed and developed by HCL Infosystems Select the correct statements 1 and 2 and 4 1, 2 and 3 2, 3 and 4 1, 2, 3 and 4 Download the Solution- Click here All the best IASbaba

Motivational Articles

Creative Guidance – Emergence of New India – Inspirational & Educative Articles

Emergence of New India: For the first time listening to a politician speak, tears swelled into my eyes. I have always been a great sceptic of the political system that doesn't stand up for the needs of a common man. For the first time, it looks like we have a prime minister who is not just a politician. While manipulation for personal self interest is politics; politics to uphold the interests of a common man is service. It feels like we have a man among us who has chosen politics to serve. Modi has probably for the first time in the history of independent India, given a glimpse into the future of this great land. Very rarely does one get an opportunity to witness a defining moment in history; a moment that will come to re-write the fate of a nation. We had one such moment when the demonetization movement was announced. Very few of us can contemplate on the magnanimity of this whirlwind of change that is sweeping the nation clean. There is a lot of hue and cry from those who are opposing this movement about the inconvenience all this is causing to people. But there are very few who do not already smell the sweet taste of change. Even amidst of all the difficulties, one knows deep down that something good is happening. The dust that has covered the rotten ideologies and convenient politics of India over the past 70 years is clearing and now we can finally see the face of that monster that has threatened us for so long. Let us bear the pain. We have waited for this for such a long time; can’t we wait for a few more days? The excitement of what is happening is beyond words to describe. If this movement is a success, then we are talking about a future for us that is filled with openness and transparency, respect and dignity, peace and prosperity. What we are talking about here is the birth of a new India. This is probably the most important time in the history of this country after independence. Let us not be cynical and hamper this movement. If possible let us support it, if not let us just step aside and witness the ushering in of a new tomorrow. There comes a moment when we have to put aside our political and personal differences to look at the larger good of the country and the people in it. Only time will tell if the implemented policies and the necessary governing systems have been efficient or not; but we have to do our bit to stand on the side of truth and justice. We might not like certain political ideologies but we can never shy away from participation. “The articles are a copyright of The Ahamo Movement and IASBABA.” Read more such articles– Click Here

IASbaba’s Daily Current Affairs – 26th November, 2016

Archives   IASbaba’s Daily Current Affairs – 26th November, 2016   GOVERNANCE AND SCIENCE AND TECHNOLOGY   TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Indigenization of technology and developing new technology.   National e-Health Authority (NeHA)   Introduction – What is NeHA Health-services in India are lagging behind in terms of use of Information and Communication Technology (ICT). The common man still archive doctor’s prescriptions, labs and X-ray results as was done decades ago. Till date, the vast majority of Indians have no organised medical records, whether paper or electronic. Therefore to overcome the problems due to limited use of ICT the government has proposed the NeHA.   National e-Health Authority (NeHA) is proposed to be set up by the Government of India as a promotional, regulatory and standards setting organization to guide and support India’s journey in e-Health. It will also subsequently lead to realization of benefits of ICT intervention in Health sector in an orderly manner. It will be set up under the government’s Digital India programme and will work towards the integration of multiple health IT systems in a way that ensures security, confidentiality and privacy of patient data.   Method of Operation  NeHA will be set up as a health information network where various different stakeholders and contributors to health information will set up a repository of information. They will also be allowed to communicate with each other with the help of so-called Application Programming Interfaces (API). This will function in the same was as many mobile applications in our devices do so. Healthcare APIs would allow the doctor’s to communicate with the chemists and the testing labs and centres to communicate with the hospital’s database. This further provides scope for development of more applications for patients, doctors, researchers, and policy makers. For instance there could be an app to remind mothers to vaccinate their children, push notifications to remind you to take your medication, or an alert that you are travelling to an epidemic belt. Challenges for NeHA This seemingly perfect health information system has its own set of challenges: There is poor uptake of electronic records by doctors in India. The lack of inter-operability between systems and devices leads to duplication of tests etc thus increasing inefficiency. Inter-operability will need more than law and mandates since it will bring with itself the legitimate concern for privacy, security and safety of medical data. End users are not involved in health information systems’ design and implementation strategies. Risk-averse institutions and outdated laws have slowed down digital innovation in healthcare. Once the system is in place it will be a challenge to ensure adequate outreach to the masses. Addressing the Challenges   The challenges mentioned above can be addressed with the following measures: To encourage the doctors to adopt Electronic Medical Records (EMRs) the proposed systems must be easy to use and affordable. The system should ensure that it collects only that data which is required thus helping in data minimisation and avoiding any kind of overload. There have been instance in the US insurance companies where digitisation led to workplace dissatisfaction and physician burnout. Ensure a participative approach where all stakeholders are involved in the planning of design and implementation. This will help in getting the best feedback from the users themselves. Proper funding, research and analysis needs to be done. It will ensure that inter-operability is achieved thus contributing to the efficiency of operations and avoiding any sort of duplicity. Encourage investments and promote an API-based ecosystem incorporating inter-operability and standardisation at inception. Substantial intellectual rigour must be devoted to building safeguards to protect the patients from any abuse. Even though the new law accompanying NeHA is expected to provide the patients with data ownership rights still a more nuanced strategy is recommended that thinks of ownership in terms of control and access. This will protect the interest of the patients as well as provide a congenial environment for smooth research or policy making. The problem of the outreach will have to be addressed with the assistance of large-scale initiatives. Large private hospitals should open up their digital platforms to API-based solutions. Government schemes like the proposed National Health Protection Scheme (NHPS) have the power to reach tens of millions and hence an API-based architecture can be integrated with the NHPS. A common patient identifier or Unique Identification Authority of India (UIDAI) / Aadhar number deserves serious emphasis considering its mass outreach.   Conclusion Any health information architecture proposed by NeHA must therefore provide technical or legal solutions to the above challenges. NeHA and regulatory laws will define India’s health information ecosystem and will have deep, long-lasting impact on healthcare delivery. The government has to ensure the following: It gives primacy to the needs of patients and clinicians Adopts a user friendly design. Abandons traditional institution-based EMRs in favour of an API-based eco-system. Ensure passing of privacy laws in sync with these new technologies. With all the necessary ingredients available in the form of a robust telecom infrastructure, unique ID authentication, and a large talented pool of IT professionals, such a reform can usher in an era of unprecedented growth in the scope, quality and safety of Indian healthcare. Connecting the dots Discuss the importance of National e-Health Authority (NeHA) and critically analyse how well prepared India is to set up the National e-Health Authority.   HEALTH   TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes;   Improving the Indian healthcare system- Lessons from Thailand India and Thailand share similar demographic and economic similarity which makes comparison between the two countries relevant. Health expenditures as a share of GDP (gross domestic product) are similar — Thailand: 4.4% and India: 4.1%. However, the outcomes vary a lot. In Thailand, the under 5 years’ age mortality is 12.3 per 1,000 live births; maternal mortality, 20 per 100,000 live births. Whereas in India, the under 5 years’ age mortality is 47.7 and maternal mortality at 174 per 100,000 live births. India at a glance- Health National Rural Health Mission, launched in 2005 was flagship programme in increasing access to health services. This was later expanded to urban population through the National Urban Health Mission (NUHM) in 2013. Rashtriya Swasthya Bima Yojana (RSBY) was launched to provide financial protection to targeted populations, including those below the poverty line. In addition, there are a number of state-specific schemes like involving free diagnostics facilities and offering free medicines; others are government-funded health insurance schemes in several states. At 60%, India's out-of-pocket expenditure for health is one of the highest in the world. To sustain its economic growth, India will need to have a healthy population and address health inequities. In this context, Universal Health Coverage can be the driver and benefit the entire population.   The Thai healthcare system In the early part of the century, there was strong macroeconomic growth in Thailand. Thus, the Thai government launched a universal health coverage (UHC) scheme for the informal sector covering 70% of Thailand’s 70 million people. And this scheme was adequately matched with structural reforms which helped the successful implementation of scheme. In India, the programmes have been brilliantly envisaged but not accompanied by necessary structural reforms which explains a big part of the huge gaps in expenditures and outcomes between the two nations. Thailand initiated a purchaser-provider split. Here, a new quasi-independent purchasing is paid on the basis of services and performance and not inputs like beds and staff, as is the case in India. If the doctors and nurses did not perform, they were not paid. Incentives were built into these contracts for efficiency. Equity through models such as age-adjusted capitation and per admission payments adjusted for diagnosis was implemented. Public as well as private providers were brought into the system, though private providers remain at a relatively low level of around 25%. Thus, these mechanisms add up to ‘strategic purchasing’ for healthcare services and placed Thailand at Western Europe’s level. Along with this decision, the Thai government brought new revenue means in the system- cigarette tax. This reduced the demand, improved health and expanded the revenue means to fund healthcare system. This revenue was used in health promotion and disease prevention programmes—from HIV to diabetes to hypertension. Also, incentives were developed and fresh medical graduates were redistributed to remote areas for a minimum tenure. In this, the citizens benefited as a whole. Quality of care became a national priority through an independent accreditation body that developed a three-step system of quality improvement. Thailand’s Quality and Outcomes Framework (QOF), used to measure the quality of health services, offers immense learning opportunities for India. Government established world-class technology assessment process to bring in the new and cost-effective, while eliminating obsolete and unsafe drugs, devices and procedures. It decided to invest early in information technology to provide mobility and convenience to citizens, easy monitoring of fiscal performance of the health sector and to also facilitate the gleaning of information from health claims to calculate quality and utilization measures. Thailand’s national civil registration database forms the backbone of all health schemes in the country. It ensures that a beneficiary cannot enrol in two schemes at the same time. India through its Aadhar project can verify the same when National Health Protection Scheme (NHPS) is soon going to be launched. Today, the system has close to eight million in-patient transactions and more than 160 million out-patient transactions every year.   Challenges to health sector in Thailand The distribution of providers across urban and rural areas remains inequitable. In contrast to rural health services, urban health systems are characterized by hospital-oriented care, private clinics and hospitals and a lack of effective primary health care systems, particularly to treat chronic non-communicable diseases. Most records are still maintained in paper form and some in electronic form but they are not shareable across facilities. Electronic medical records (EMRs) are not stored on the national ID smart cards, which could have made the ID a coverage verification tool. Conclusion India should take a cue from Thailand’s Universal Healthcare system and improve prepayment and strategic purchasing, expand the health care provider network in rural areas, and also stimulate digitization. An Aadhar enabled NHPS could mark the beginning of effective universal health coverage for India having a robust information and communications technology platform to support it. For this, India has to have standards of data exchange, a unified data model and strong IT infrastructure. Thus, much of Thailand’s success goes to development of good policy based on solid evidence and then systematically building capacities to implement them. Now India has to embark upon achieving its ambitious target of Universal Health Coverage for all with a definite vision, federal cooperation, strong political commitment, robust infrastructure with adequate insurance coverage and monitoring and accountability mechanism. Connecting the dots: What is Universal Health Coverage? How can India maintain a healthy population? Healthy economy is based on healthy population. Critically analyse.   MUST READ Appointing a Lokpal Hindu   When ministers think aloud Hindu   India needs police reform Indian Express   The Constitution test Indian Express   Demonetisation’s short-term cost Indian Express   The lines to breach, the restraints to observe Livemint   Cashless India Business Line   Let’s talk trash Business Line   Missing the elephant in the room Business Line    

IASbaba’s Daily Current Affairs – 25th November, 2016

Archives   IASbaba’s Daily Current Affairs – 25th November, 2016   GOVERNANCE AND ETHICS   TOPIC: General Studies 3 Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections General Studies 4 Ethics and Human Interface: Essence, determinants and consequences of Ethics in human actions Ethical issues in international relations and funding n laws, rules, regulations and conscience as sources of ethical guidance.   Refugees in India –Challenges and Strategy   Who is a Refugee? A refugee is someone who has been forced to flee his or her country because of persecution, war, or violence. A refugee has a well-founded fear of persecution for reasons of race, religion, nationality, political opinion or membership in a particular social group.   Refugees in India – History and Trends India hosts refugees who have been victims of civil strife and war in nations such as Tibet, Bangladesh, Sri Lanka, Pakistan, Afghanistan and Myanmar. In 1962, approximately 40,000 Chakma tribal people who had lost their homes and farmland due to flooding as a result of building of Kaptai dam by Pakistan came to India as refugees. The Rohingyas are an ethnic group from the Rakhine state in Myanmar. Over 13,000 Rohingya refugees are registered with the United Nations High Commissioner for Refugees (UNHCR) in India. Tibetan refugees arrived in India between 1959 and 1962 and were given adequate refuge in over 38 settlements and essential privileges available to an Indian citizen. The Afghan refugees fled the civil war in the 1980s and now inhabit parts of Delhi. In 1990s, Bhutan expelled lakhs of Nepali-speaking population present in their country and a large percentage of these stayed in India as refugees while on their way to Nepal.   Rising Refugees as per World Bank - Trends As per World Bank data there has been a significant rise in the number of refugees in India in the past decade. The graphic representation of the data has been shown below. Problems faced by Refugees in India India remains the only significant democracy without adequate legislation specifically for refugees. As a result, they face a lot of problems such as: They live in poor quality accommodation made of plastic tarps and straw roofs. They have no or inadequate access to safe water or sanitation. Waste management is very poor in areas of refuges habitation and open defecation is rife as sanitation is also inadequate. The children of refugee families miss out on quality education due to lack of requisite documentation. Most men serve as daily wage labourers. They usually do not have any legal status or formal documents which rob them of opportunity to work or establish businesses in India. Ethnic clashes between refugees and the local population are a common occurrence due to issues over land distribution and assistance provided to refugees. State governments have not provided supportive environment to refugees and they face forcible eviction, economic blockading and violence.   Where is India Lacking? India remains a non-signatory to 1951 United Nations Refugee Convention and the 1967 Protocol, which help define the legal obligation of states to protect refugees. From a policy perspective also we are lacking because we do not have a national asylum policy. Existing policy instruments have become obsolete. India is the only significant democracy without a specific legislation for refugees. The Foreigners Act (1946) and the Registration of Foreigners Act (1939) currently govern the entry and exit of all refugees. Both these legislations treat refugees as foreigners without due consideration of their special circumstances. Lack of proper database which leads to misrepresentation of numbers and faulty reporting by media.   Way Forward for India Policy and Legislations: A refugee to whom asylum has been granted should be given a formal recognition of his/her asylum status along with an identity document and a travel document. Policies should be framed in a manner which allows them to apply for residence permits and choose their place of residence across India. Their documents must also enable them to seek employment in the private sector. In terms of social indicators, they should be offered primary education free of cost in government schools and primary healthcare services should be provided at par with the Indian citizens. A well-defined asylum law should be made which will help in establishing a formal refuge granting process. Measures should be taken under the government welfare programmes and biometric initiatives like Aadhaar to ensure preparation of adequate database. Social Sensitisation and Attitude Change: Social sensitisation is highly important. Institutions should be encouraged to recognise UNHCR-issued refugee cards, foreign degrees or diplomas. Local municipal corporations should be asked to sensitise neighbourhood associations and Resident Welfare Associations (RWA) to accept refugees who can pay rents and necessary charges. Integration workshops for youth and women empowerment initiatives should be encouraged. Conclusion For a country that gained independence with a mass exchange of populations due to the partition, it needs to work more on its policies and laws to integrate refugee welfare in them.  While the security interests of India must remain paramount, taking care of refugees in India is a moral duty for the state. The duty of a democratic nation is not to announce policies only. India fails on various issues associated with resettlement and rehabilitation, with many refugees remaining unregistered. India needs a system that enables the management of refugees with greater transparency and accountability. There has to be a shift from an arbitrary decision-making approach to safeguard interests of this vulnerable, victimised section of the population. Connecting the dots Highlight the flaws in India’s approach in dealing with refugees. Suggest necessary changes to be made in this concern. Owing to the refugee crisis around the world, there has been a lot of debate on the approach of various nations towards refugees. In light of this matter give your opinion on which human value, empathy or sympathy, is of greater importance in dealing with the refugees.   ECONOMY   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.   Improving India’s job creation ranking In past few months, several international institutions have assessed, compared and ranked the performance of countries on different indicators on issues like Competitiveness Ease of doing business Hunger Youth development Gender gap Press freedom Consumer confidence However, there was no place for indicator that specifically measures job creation which is the key to economic growth, especially of developing countries. India’s performance In some, it has exceeded expectations while in some, the performance has been not so well. The World Economic Forum ranked India at 39th position on the Global Competitiveness Index. This is an impressive jump of 16 places since last year. However, despite such jump, WEF has cautioned that India’s performance is low by global standards, and huge challenges lie ahead on the path to prosperity. This is due to existence of high average tariff on imports, low level of factor accumulation, and relatively high incremental capital-output ratio. Also, there is less than optimal domestic regulatory environment and near absence of regulatory harmonization. These are the reasons why India could move only one place up in World Bank’s recent ease of doing business ranking. On a positive front, the World Bank has recognised the government’s efforts towards a better business growth environment and hopes for more stimulating business environment. On the other hand, India’s performance on social, education and health-related indices has been abysmal. The WEF report on global gender gap reveals that India is third last on the indicator of women’s health. On the Global Hunger Index, India lies among the bottom group of countries, even below neighbours like Nepal, Myanmar and Bangladesh. Job creation opportunities in India- Where does it stand? India is facing one of the most critical challenges in terms of job creation. The number of jobs created in 2015 is less in comparison with what was created few years ago. The reason is fast pace of the mechanization of agriculture and manufacturing and more skill oriented service sector. Due to increased use of technology, less innovation in areas requiring human assistance, disguised employment situation among others, fewer jobs are being created which can match the existing skill level of the vast majority. It is no doubt that India’s GDP is growing but such growth is becoming increasingly exclusionary. Much of India’s growth is originating from services, and taking place in sectors which require middle- to high-level skills. Enough jobs are not being created for people who either unskilled or semi-skilled and mostly part of unroganised sector. Even for the poor, who have problems in making their ends meet in these inflationary times, not many efforts are being seen to be put by the government. Today, India’s poor which has been traditionally been dependent on agriculture and manufacturing, which have ceased to offer large-scale employment opportunities. Adding to the woes, lack of quality and affordable healthcare and education has robbed the poor of opportunity to compete with their well-off counterparts in the job market. As a result, the poor get stuck in unproductive agricultural activities and are under-employed in the informal sector. All these challenges have resulted in India remaining a low middle-income country over the last couple of decades. For India to improve its status first to high middle-income and then a high-income country, it has to overcome these challenges of the middle-income trap. Way forward Indian economy should now focus on two important components- productive agriculture and mass manufacturing. Improvement in manufacturing numbers will help India get fixed into global production networks and productive agriculture environment will provide a continuous push towards the growth of domestic aggregate demand accompanied by socio-political stability. For this, emphasis on micro, small and medium enterprises is inevitable. Reforms have to be introduced in markets of factors of production- land, labour, capital and attracting investment in those labour-intensive sectors which are expected to be vacated by East and South-East Asian countries as they move up the production value chain. India is a labour surplus economy and hence, it has to become more competitive and offer productive employment to its population. On a brighter side on external front, there is sluggishness in international trade negotiations and thus India can undertake appropriate reforms. This will make Indian economy more competitive and create productive employment opportunities and also create opportunities for India to become a major actor on the global economic proscenium. IASbaba’s views The key to increase India’s job creation opportunities lies in structural reforms in its factor markets, rather than short-term cyclical reforms. Along with it, there should be continuous regulatory harmonisation so that there are no conflictory rules which undermine the development process. On this, the centre and the states have to demarcate their agenda items through executive orders and legislative changes wherever needed. Phased implementation strategy setting out short-, medium- and long-term targets with continuous stakeholder engagement and awareness generation will enable India to improve its opportunities in job creation. Connecting the dots: India is witnessing ‘jobless growth’ which is detrimental to the future holistic development of society. Do you agree? Examine. How can job opportunities be created in India? Substantiate.   MUST READ The new abnormal in Kashmir Hindu   The Marrakech mandate Hindu   India’s golden moment Indian Express   M.G.K. Menon: A statesman scientist Indian Express   A change called NeHA Indian Express   Demonetisation: The good, the bad and the ugly Livemint