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GS2 Weekly [26 th – 31 st Jan 2015] [The Undercover group] (Insightsonindia.com)

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GS2 Weekly [26th – 31st Jan 2015] [The Undercover group] (Insightsonindia.com)

Topic: Effect of policies and politics of developed and developing countries on India’s interests

Q) The resorting of Central banks to unconventional monetary policies to ward off recession and

deflation has caused serious problems for Emerging economies like India. In the light of the Fed

Quantitative Easing followed by latest decision of the EU critically examine how such policies impact

India? (200 Words)

http://www.thehindu.com/todays-paper/tp-opinion/yet-another-qe-

programme/article6822315.ece

Ans: The use of quantitative easing is a last resort when interest rates are already set near zero percent. It is why quantitative easing is an unorthodox monetary policy since central banks will only perform quantitative easing when all other options are not helping the economy.

Concerns for the CIS, BRIC, and other emerging economies is related to how the globalized nature of the international economy and actions by the United States or the European Union impact the emerging economies

The effects of such QE would be : 1. In general, financial firms that are now free to lend will rush their investments into the emerging economies. This is because there is a higher rate of return on investments in emerging countries compared to highly developed countries like the United States. 2. An increase of local inflation. As more foreign currency enters into a country, like a CIS or BRIC country, the local economy reacts with inflation since more money, foreign or domestic, is available in the local market. 3. Local currencies could be devalued. With the quantitative easing cheaper, other countries react by devaluing their currencies so their exchange rates are lower. This can cause a global currency war, resulting in large scale, impaired economic growth since citizens will be unable to purchase many goods or services. 4. Moreover, the money that will come in will be “hot money” and such investments are very volatile and short term. Hence their later withdrawal from the economy will lead to spiralling down of the local currency. 5. Due to the unfavourable and fluctuating market, investors will me skeptical to invest in the stock markets 6. The EU is India’s largest trading partner and this will hit the Indian exports to the EU badly

If the nations of the European Union are not careful with the amount of quantitative easing they perform, it will have dire consequences around the world. The European Union and others need to solve their economic problems, but if they are not careful, their solutions will seriously harm other nations and plunge the world deeper into economic turmoil.

Topic: Effect of policies and politics of developed and developing countries on India’s interests

Q) “The US president’s visit is important from the perspective of furthering bilateral ties, as it is to

show the world that India is ready to play a central role well beyond its borders.” What are the

important areas of collaboration between the two nations and how will it impact India’s interests?

(200 Words)

http://www.business-standard.com/article/opinion/subir-gokarn-the-bilateral-imperative-

115012500725_1.html

http://www.financialexpress.com/article/fe-columnist/reviving-the-indo-us-bit-dialogue/34946/

http://www.thehindu.com/todays-paper/tp-opinion/beyond-the-immediate-

present/article6822317.ece

Ans:

U.S and India are divided by geographical distance but their concerns and aims are parallel. With

closer collaborations on number of areas it will be win-win situation for India because India has

many things to learn, acquire and ask from US. Some areas are:

(1.) Nuclear Deal: U.S and Indian officials will discuss ways to unblock billions of dollars of potential

trade in nuclear energy. India and the United States signed a landmark civilian nuclear deal in 2008.

Holding up the trade is India's reluctance to pass legislation shielding suppliers from liability in the

event of a nuclear accident, a deviation from international norms.

(2.) IPR impasse: Pharmaceutical Lobby in US is strong and constantly pressing Democratic Party to

bring India under scanner to respect US patents and not use them in the generic medicines.

(3.) Boosting trade: Right now trade between India and US is in tune of $100billion. It has to be

increased to $500billion. Modi and Obama’s last year targeted a five-fold increase in annual trade to

$500 billion. But US business leaders have been frustrated by limits on their access to the Indian

market, and battles over intellectual property protection. India and the United States have also filed

several cases against each other at the World Trade Organisation over protection of their domestic

steel, poultry and solar industries.

(4.) Strengthening Look East: U.S is constantly worried economically and diplomatically with the

rising of China, Hence she wants’ to use India’s Location, demographics, economy and diplomacy

toward counter balancing the China’s dominance in Asia. With weakening Japan and strengthening

India it becomes imperative.

(5.) Fighting Terrorism: India and U.S have this common weak nerve which is taking good amount of

money and resource. With US phasing out from Afghanistan, India is more worried about future

militant outfits in the region. Both nations can chalk out some plans to tackle terrorism in Indian

subcontinent because Afghanistan, Levant and Pakistan are breeding ground for terrorism.

(6.) Climate change and Clean Energy: Climate Change: The United States and India are expected to

announce efforts to work together to combat climate change ahead of key global talks in Paris later

this year. India, the world's third largest carbon emitter, is reluctant to follow the United States and

China in committing to a peak year for emissions on the grounds it needs economic growth to

alleviate poverty. Instead, India is likely to trumpet its plans for a rapid expansion of renewable

energy, for which it needs US investment and technology, and improving energy efficiency.

(7.) Ease of FDI: With new government in India, Share market at it’s peak, Inflation controlled,

Industrial production rising. It is the best time, India can look for FDIs. Deep Collaboration between

India and US will attract FDI.

(8.) India’s interest to acquire latest drone and surveillance technology

(9.) Defence Deal: India is world’s largest importer of Defence equipment, US has become largest

exporter to India surpassing Russia. She wants to hold this position for future trade relations. India is

pressing US to transfer some knowledge about the arms that are exported.

(10.) Renewable Energy: India wants companies from the United States to help lead investments of

$100 billion in renewable energy.

(11.) Sharing intelligence about critical issues: In the secret world of intelligence, where trust is a

commodity best not discussed, the US and India have emerged as very unlikely partners. The US is

today the most important supplier of intelligence and information to India, from being a rival until a

few years ago, sources across intelligence and security agencies say.

(12.) Relaxed H1-B visas norms for skilled Indian workers. India’s massive information technology

and outsourcing industry—which earns billions of dollars sending Indian engineers and programmers

to the U.S.—wants America to raise the ceiling on the number of skilled-worker visas it issues every

year. Right now the ceiling for H-1B visas is 65,000 per year, a quota that is usually reached in a

matter days. India’s software companies and the many U.S. companies that depend on their services

want a higher ceiling.

(13.) Sanctions against Russia: India continues to be at odds with US diplomatic positions, especially

with regard to Russia, which it still considers a friendly state. India has refused to back the sanctions

imposed against Russia by Western nations in the wake of its abetment of pro-Russian rebels in

Ukraine. Meanwhile, US sanctions, coupled with a global crash in crude prices, have dealt a near-

death blow to the Russian economy.

(14.) Afghanistan-Pakistan Issue: As always, the US’ Af-Pak policy will be under the spotlight. With

the US pullout nearly complete and a new government in Afghanistan, both Pakistan and India are

jockeying for strategic depth in Afghanistan. India alleges that Pakistan continues to nurture jihadist

elements and terrorists within its borders to destabilise Afghanistan. Some of these non-state

terrorist groups have also been used against India, such as the 26/11 Mumbai terror attacks.

Both nations holds hopes on each other in time of global cooperation. India has golden oppurtunity

that at the starting term of LokSabha we have oppurtunity to collaborate with world powerful

economies to deepen ties. If negotiated well and leaving behind internal indifferences on policies,

we will reap huge benefits.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) The report on the annual status of higher educational universities and colleges in India pointed

out that, states that lay more emphasis on the quality and depth of their higher education are

economically better placed than those that do not. Analyse the reasons behind this linkage? What

initiatives must the states take to improve higher education in the country? (200 Words)

http://www.business-standard.com/article/economy-policy/focus-on-higher-education-to-improve-

states-economy-115012600814_1.html

Ans: Knowledge based competition within a globalising economy is prompting a fresh consideration

of the role of higher education in economic development and growth

There is a positive corelation between investment in higher education and economic growth of a

state (directly and indirectly)

1. It helps in rapid industrialization by providing manpower with proffessional, technical and

managerial skills.

2. In present context of transformation of nations into knowledge economies and knowledge

societies,it provides not just educated workers but knowledge workers to the growth of economy

3. It creates attitudinal changes necessary for the socialization of individuals and overall

transformation of society

4. Higher education contributes through the “production of knowledge” and that largely takes place

within major universities and their research

5. Helps in creation of new technology which contributes to the economy of the state

6. Higher education leads to economic growth through both private and public channels. Higher

earnings for well educated individuals raises tax revenues for governments and eases demands on

state finances

They also translate into greater consumption,leading to greater production and a demand-driven

economy.

7. In addition, the larger tax base reduces the tax pressure on low-income members

8. A more educated workforce gives a higher output per worker in 2 ways

a) Higher education adds more skill to workforce

b) Increases the capacity to innovate

9. The growth of science-based industries also means that economic development depends on highly

educated and scientifically trained labour

Initiatives to improve higher education :

1. Instead of funding public colleges and universities based on enrollments, states should use a

formula that pays institutions for success in key areas like progress toward and completion of

degrees and credentials,research

2. Promoting technical and vocational universities

3. promoting private investment in higher education

4. establishment of more centres of excellences.

5. Internatoinal collaboration and student exchange programmes

6. promoting industrial participation in designing different vocational and technical courses so that

demand based skills are acquired.

Thus along with promoting primary andd secondary eduation,there is also a need for states to

promote higher eduation which brings not only a higher economic growth but also social and other

returns.

Topic: Effect of policies and politics of developed and developing countries on India’s interests

Q) India’s relationship with US should not be solely seen from Chinese angle. Instead we should

move towards developing a prosperity triangle between the future world’s three largest economies.

Critically analyse. (200 Words)

http://www.thehindu.com/news/international/world/in-rday-message-china-tells-india-dont-fall-

into-trap-laid-by-us/article6823793.ece?homepage=true

Ans: India believes in a multipolar world view and aspires to be one of the significant poles. Right

from the NAM it has been in India’s foreign policy to foster friendly relations with all the countries.

Rather than looking at the India-US relationship from the Chinese angle, it is more important to have

good equations with both the nations.

Inspite of many disputes with China like the border issue, dumping etc. ,we need to look at the

bigger picture.

Beijing and Delhi share many areas of symbiosis like

1. fight against terrorism,

2. promoting development in the under developed regions which are adjacent (NE in India and

Yunan province in china)

3. demographic dividend – our youth bulge coincides with the graying of china

4. securing of energy supplies

5. Mineral resources of Afghanistan

6. Also common agendas on global issues like world trade talks, climate change negotiations, the

primacy of state sovereignty and the need to reform global-governance institutions

Similarly US is important for India as

1. securing a seat in UNSC

2. Energy security- civil nuclear energy

3. US overtook Russia as the biggest weapon supplier to India

4. India wants companies in US to help lead investment of $100 billion in renewable energy

5. Sharing of intelligence inputs

So it is important not to shadow the relationship with one by the other and avoid US or China

strengthening relations further with Pakistan as that could mean a threat to India

Topic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to

the federal structure;

Q) The state’s limited revenue sources proved as a hindrance to the development of effective

federalism in the country and this needs to change. Substantiate. (200 Words)

http://www.business-standard.com/article/opinion/andy-mukherjee-restoring-federal-balance-

115012701343_1.html Ans: India is the “Union of States”. To deal with issues of finances between centre and state under Article 280 Finance Commission needs to be appointment by President every five years. But it has only advisory function, which has affected states badly.

State revenues are mostly utilized in payments of loans in large parts of the programmes, projects and services initiated by the Centre are executed in the states. Many of the programmes undertaken by the states also have wider implications for the centre as well as local governments.

"Punchi commission" recommended inclusion for upgrading of the planning model to remove regional imbalances.

"Sarkaria commission" recommended that the Finance Commission has the right credentials (being a constitutional body) to oversee the smooth transfer of funds from the Centre to the States.

"Thirteenth finance commission" report estimated that over the period 2010-2015 the states would get around Rs 14.5 lakhs crore as their share of Central taxes and duties and another Rs 3.1 lakhs crore as grants-in-aid if its recommendations are implemented.

On the one hand, the financial requirements of the states are vastly increasing, and on the other hand, the Centre has been gradually encroaching on financial powers and cornering for itself a major share of the total national resources.

Finance commission should be given more powers and authorization to decide on sharing finances between states and centre because the State governments generally prefer allocation of fiscal resources through the Finance Commission, as it is a constitutionally mandated body.

Topic: Structure, organization and functioning of the Judiciary;

Q) The Supreme Court was meant to be a constitutional court by the founding fathers. However,

only 7 per cent of its judgements deal with constitutional issues. Make a case for SC to deal mainly

with only constitutional issues. Suggest innovative solutions to reduce the backlogs of cases at all

levels. (200 Words)

http://www.business-standard.com/article/opinion/m-j-antony-up-the-endless-judicial-ladder-

115012701340_1.html

Ans: Supreme court of India is the "guardian of the Constitution".

Under, Article 32 it acts as protector of Fundamental Rights of every Indian citizen. Article 131 gives

exclusive jurisdiction to solve disputes between states and centre or between states on all matters.

Article 137 provides powers to review its own judgements. SC also has advisory jurisdiction under

143 on matter of constitution and law to President of India.

If constitution repeals “Article 132-134” (Appellate jurisdiction), then, only the above mentioned

constitutional load will remain on Supreme Court.

Indian constitution attempts to provide a panacea for the many political, economic and social ills the

country had been plagued with. Supreme Court of India in its constitutional field has yet to register

500 cases a year.

So, if Appellate jurisdiction is repealed, India will not need 26 judges of SC to deal with just 500 cases

a year. Size of SC will reduce drastically.

Though, SC is working slow, appellate jurisdiction is vital for public remedies because most cases are

registered under Article 226 and not under Article 32 for constitutional remedy.

Pending cases (Backlog) remedies for Courts :

-establish lok-adalats frequently (thrice a year)

-Establish E-Courts for specific jurisdictions (small cases)

-Denounce “pleas for leave” which seems farce and unethical (save courts time)

-Stop bureaucratization of criminal justice system (police reforms)

-Stop inclusion of faulty PILs

-Increase timing of work, and reduce vacations

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) Women Army officers are still denied permanent commission at par with men. Analyse the

reasons behind it. How far patriarchal and macho mindset is responsible for such

discrimination? (200 Words)

http://www.thehindu.com/opinion/editorial/going-beyond-symbolism/article6831124.ece

Ans: The recent affidavit filed by the Indian Army in the Supreme court expresses discouragement to

appointing women officers in permanent commission. This is a retrogressive move and reiterates the

patriarchialmindset in the Indian society.

'War has no runners-up, hence the need for an efficient war machine that will ensure victory,' it said.

This move not only denies equality to women but also makes them “lesser citizens” of India as they

are not being granted the same rights as men.

The reasons cited by the Indian Army include:

1. the bulk of the army's junior commissioned officers (JCOs) and other ranks, who hail from rural

India, are not yet ready to accept a woman as their leader in combat situations.

2. beyond the SSC, in permanent commission tenure women could be exposed to hostile

environments,also the unique nature of responsibility and organisational requirement.

3. the attendant hazard and trauma,possibility of being made a prisoner of war

these reasons appear farce and reflect a patriarchal mindset because :

1.Rank v/s gender:

commands are attached to the “rank” or position of a system, may it be

judiciary,administration,legislature or military. And not to the gender of the individual.

If this would have been so, India would never have had a successful women prime

minister or president.

2.Ability v/s gender :

As long as an individual is qualified for a position,the gender is arbitrary.

3.Unique requirements:

During the 14-year short service commission tenure they now enjoy, women officers

in various corps are assigned duties similar to those of men officers without

distinction, to all possible field units with men officers. So the unique requirements

in permanent comission smacks of gender discrimination.

4.Technology and gender:

In modern high technology battlefield,technical expertise and decision making skills are increasingly

more valuable than simple brute strength.

5.Other countries like canada,israel ,new zealandetc have placed women on par with men in the

military

6. The ruling of the Delhi high court 2010, in favour of appointing women.

Topic: 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;

Q) Highlight the salient features of SC/ST sub-plan. Review its implementation on the ground and

suggest measures to correct the inadequacies. Make a case for bringing about a legislation for SC/ST

sub-plan to ensure funds are not diverted for other purposes. (200 Words)

http://www.business-standard.com/article/economy-policy/rawat-reviews-spending-on-sc-st-sub-

plan-budget-115012801434_1.html

Ans: In spite of the Constitutional safeguards and developmental planning launched, the SCs and STs

are lagging behind the general population in various socio-economic indicators. So, the

Government took a shift from trickle down approach to direct targeting approach of development by

mandating a planning process for the social, economic and educational development through SC/ST

sub-plan.

Salient Features-

(i) Envisage fund allocation and channelizing the flow of outlays and benefits both in physical and

financial terms

(ii) Ensuring socio-economic development through infrastructure development, educational

activities, etc

(iii) Protection of STs against exploitation through legal and administrative support

Implementation issues-

(i) Inadequate allocation of funds as per the SC and ST population in the States,

(ii) Non-utilization of even the allocated funds,

(iii) Diversion of SCSP and TSP funds to other sectors at the end of the annual plan,

(iv) Implementation and administrative bottlenecks

(v) Improper delivery mechanism at the field level.

Measures to correct the inadequacies-

(i) Earmarking the funds according to population and developmental needs along with outcome-

based budgeting

(ii) Ensuring timely release of funds and proper implementation with strict monitoring and review

mechanism

(iii) Funds should be made non-divertible and non-lapsable

Thus, not just mere fund allocation but a comprehensive legislation for SC/ST sub-plan should be

brought up to plug the above lacunae along with empowering National Commission for SCs and STs

as the nodal agency to look into its working and ensuring its

implementation in letter and spirit.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) India has an ambitious target of creating 100 smart cities. What are “Smart cities” and how does

it help us to cope with the burgeoning urbanization in the country? (200 Words)

http://www.business-standard.com/article/economy-policy/centre-to-meet-secretaries-on-jan-30-

31-of-state-governments-to-finalise-concept-for-smart-cities-115012900600_1.html

Ans: Urbanisation in India is not a recent phenomenon and has a history from the indus valley

civilisation to the recent smart cities. However today what has gained more importance is

“sustainable urbanisation” as a contrasting urbanisation is visible in India today. Hence the

requirement of “smart” cities.

a smart city is an urban region that is highly advanced in terms of overall infrastructure,sustainable

real estate,communication and market viability. IT is the principle infrastructure and the basis of

providing essential services to residents.

Characters of a smart city:

1. Efficient utilities - energy, water, solid waste and effluents

2. Information, communication, and technology (ICT)-enabled governance:

3. Meaningful PPPs-efficient deliveries of utilities at agreed service-level standards

4. Safety and security

5. Financial sustainability and independence

6. Citizen-participative local government

7. Sufficient social capital-like schools,hospitals etc

8. Transit-oriented habitats

9. Green features-reducing carbon footprints

10. Minimum population criteria

These are expected to solve the problems of urbanisation in the followiing ways:

1. Help in containing migration to metros

2. A better planned city would be energy efficient so lesser pollution

3. Would discourage development of slums due to affordable housing and availability of land

4. The biggest problem of waste management would be solved due to efficient utilities.

Overall the smart cities are considered to be a panacea for almost all the problems of urbanisation.

However the green field investments in smart cities should be well thought out to prevent their

transformation into “ghost towns” like in China and Japan.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) To what extent has the Consumer protection act succeeded in achieving its intended objective?

Critically analyze the recently proposed amendments to strengthen the act. (200 Words)

http://www.deccanherald.com/content/456083/changes-consumer-protection-act-devil.html

Ans: The CPA, 1986 was enacted considering the large number of consumers in India who are

illiterate and are susceptible to exploitation by unscrupulous businesses. Hence, a major objective of

this Act was to make consumers aware of the various quality-control measures (e.g. Hallmark, BIS-

mark etc.) being employed for the products and the rights available to them to seek redressal

against unfair practices.

Although, the impacts have been largely positive as is visible in the increased consumer awareness

and adherence of businesses to the quality-control standards, there have been certain issues as well.

The movement has left many rural regions untouched. Also, the slow progress of addressing the

cases has resulted in large-scale pendency. Provisions for addressing new-age cases such as e-

commerce are also non-existent.

The recent amendments proposed to the CPA, 1986 are largely progressive in the sense that it seeks

to decrease the time required to seek redressal by including provisions for online filling of

complaints and setting a time limit of 21 days for scrutiny of cases before admission, effectively

leveraging the District Forums by increasing their pecuniary jurisdiction from Rs.20 to Rs.50 lakh, and

increasing the penalties to 10 times the cost of goods provided.

However, certain issues such as the appointment of mediators to settle disputes are contentious as

this would lead to arm-twisting of the weaker parties and may encourage corruption. Also, the

setting up of a Consumer Authority and absence of provisions to streamline the conducting of cases

in courts may only lead to greater regulations and complexities. Addressing these issues is necessary

to ensure that the new amendments bring about definitive improvements in the CPA.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) There is a growing realisation that citizen participation lies at the heart of good governance. What

are the initiatives taken by government in this regard? How can these initiatives be more

successful? (200 Words)

Refer –People Centric Administration Page 53

http://yojana.gov.in/CMS/(S(kdrn2245hrays345op0myc55))/pdf/Yojana/English/2014/Yojana%20Ma

rch%202014.pdf

Ans: Successful delivery of services depends on the good governance and people's participation. But

people participation depends on the good governance where in how effectively government is

providing various ways for them to get involved. If governance is a closed circuit of administration

then the whole concept of services or other people oriented aspects lead to futility.

Below is a list of various initiatives taken by government for effective citizen participation and

providing good governance.

1. Citizen charters for all public institutions.

2. Use of ICT for effective citizen-administration interface and thus reducing corruption.

3. Policies like Consumer protection Act and Consumer forums for safeguarding consumer interests.

4.Social media presence and promotion of policies for easy and quick dissemination of information.

All ministries, PMO etc have their own accounts.

5.Involvement of various activists and members from NGOs in policy making like National Advisory

Council.

6. Interaction with people through programmes like 'Mann Ki Baat'.

7. Whistle Blowers act gave power to people for reducing corruption.

8. Enaction of laws Lokpal and Lokayukta.

Despite many measures, still there are loop holes and prevalence of social ills like corruption is

evident. Enforcing accountability on administrators through strengthening Lokpal and Lokayukta,

increasing frequency of Lok Adalat sessions, promoting further awareness on to reach remote

corners of the nation, Increasing effectiveness of RTI etc would help in efficient and seamless

governance promoting democracy in true spirit.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;

Q) Surrogacy in India has flourished into a ‘Commercial Industry’ and lead to ‘reproductive tourism’.

Analyse both the positive and negative impacts this had on India. To what extent, the proposed ART

bill seeks to address the above concerns. (200 Words)

http://www.epw.in/system/files/pdf/2015_50/1/Outsourcing_Reproduction.pdf

http://www.epw.in/system/files/pdf/2015_50/2/Right_to_Abort_in_Surrogacy_Contracts.pdf

Ans: Assisted reproductive technology (ART) where embryo is implanted and grown in rented womb

of surrogate mother is surrogacy

Reasons for commercialization of surrogacy in India:

1. lack of regulating frame work

2. Cheap but confident medical techniques and services

3.availability of poor women who are willing to rent their wombs.

Above factors in turn led to "reproductive tourism" into India which has been a mixed bag of results

for India.

Positive effects

1. Tourism- forex to the government

2.surrogate mothers will be benefited as they get some kind of livelihood.

3. Problem couples can get children at lower costs.

Problem areas-

1. Middle men emerged claiming lot of commissions. Hence the poor surrogate women are getting

low returns. Their rights are being violated. They are not allowed to meet their husbands throughout

the gestational period.

2. Sex selective illegal techniques.

3. lack of regulation led to questions over citizenship of child.

New ART is legalizing surrogacy. It is mandating medical visa and marriage stipulation to parents and

also an acknowledgement from concerned national government that allows the couple to undergo

this process in India. it also mandates a notary contract between surrogate mother and biological

parents but problems with regards to right to abortion in case of emergency and issue of middle

men are not dealt effectively.

Topic: Government policies and interventions for development in various sectors and issues arising

out of their design and implementation;(Also Paper – 3: PDS)

Q) “The recently released Shanta Kumar Committee report on issues related to procurement,

storage and distribution of food grains in India is deeply flawed and runs contrary to the aim of

achieving the MDGs “Critically analyse. (200 Words)

http://www.thehindu.com/todays-paper/tp-opinion/food-insecurity-acts/article6840777.ece

http://www.downtoearth.org.in/content/better-roads-must-food-security

Ans: In spite of the reduction of malnourishment to move close towards the MDG goal of eradicating

hunger through India’s food security schemes like ICDS, PDS, etc, it is still home to the largest

malnourished population in the world. Further adding to the worry is the recommendation of Shanta

Kumar Committee like-

1. Restructuring the NFSA by decreasing its coverage from 67 per cent of population to about 40 per

cent population. When the coverage is relatively broad, the collective pressure on the system will be

even greater and it serves the goal of avoiding exclusion errors as the households “below the

poverty line” are more or less intractable. Further, the official poverty line is abysmally low.

2. Doubling the prices at which food grains are to be sold by linking the price to the MSP and

allowing the free play of market forces in procurement and storage of food grains. When issue prices

are low, it would attract the poor all the more, because PDS entitlements will be worth more to

them. Also linking with the market forces will adversely affect the poor more and may add to the

inflation.

3. Delaying the implementation of the act in states that have not achieved end-to-end

computerization may lead to delay in achieving the goal

4. Moving towards cash transfers instead of distributing subsidized grain in long run might pose

problem if the cash is not used for the intended purpose of fighting hunger.

Though the recommendation on improving the storage and distribution facilities can help in

reducing leakages, a comprehensive approach considering the interests of all sections of the society

with greater focus on the poor should be taken to fight hunger and poverty