[Part 2] IAS Mains 2014 GS2 Answerkey and Solutions
Question 11: Do Government’s schemes for the uplifting vulnerable and backward communities by protecting required social resources for them, lead to their exclusion in establishing business in urban economies?
Answer: The well intended Government schemes for upliftment of vulnerable and backward communities benefits the various section of society. It check massive migration, uplift poor, and provide job in periphery near to their habitation. While the well intended policies of the government are often based on a principle of re-distributive justice, there are some unintended consequences of the same, which are felt by the business communities.
The effect of these consequences laid to the exclusion of business in urban economies are mainly in the form of:
- Increased labour cost due to the regulations put by the government agencies. By interfering with the free determination of the prices in the market, the government, at times, interfere with the unhampered development of the economy and the private sector.
- Increased competition of market in urban areas is often an outcome of the welfarist stance taken by the government. In the form of subsidised and regulated distribution, the government imposes restrictions on the freedom of the private businesses, thus facilitating the growth of the vulnerable section at an opportunity cost of the development of the private sector as a whole.
- Poorer utilisation of the resources for the welfare of vulnerable sections is another significant point that restrict the optimal growth of the private sector. The government often allocates the natural resources for the development of the vulnerable sections, thus depriving the private businesses to use the same for production and sale.
- However, if seen in the long-run, it appears that the welfarist policies of the government does not impede upon the wholesome development of the society. Instead of allowing the growth of a particular section, such policies strive to lay a basic foundation upon which the development of the country could be sustained.
Question 12: An athlete participates in olympics for personal triumph and nation’s glory; victors are showered with cash incentives by various agencies on their return.Discuss the merit of state sponsored talent hunts and its cultivation as against the rationale of the rewarded mechanism as encouragement.
Answer: The government and governmental organizations constitute the public sector of the sports industry, which is responsible for making sports policies, allocating grants for developing infrastructure, nurturing talents and designing specialized programmes for overall development of sports.Cash incentive by the various sporting agencies to the performer in any major event is complementary to the some extent, it is not the supplement of government effort to build infrastructure facilities, better facilities to sportsperson and good managerial capacity of the sporting authority. The incentive should not the ultimate means to improve the condition prevails in the country,it will benefits few but not the whole sport fraternity.
The merit and benefits of talents hunts by the government and private players are many as compared to reward mechanism as encouragement because the former is the building process whose approach covered every nook and corner of the country while the later is narrow outlook to curtail the mistake made by the sporting authority.
Talent Hunt Programme and its merit are as following:
- It will help to sort out the best talenting performer and deserve sportsperson in the forum,which lessen the undeserved candidates to take the berth at the cost of good one.
- The faith and trust on sporting and governing bodies increases due to transparent and responsible mechanism of the selection
- The searching of talent is not merely the talent from the metro or big cities but to the rural and interior areas of country.North eastern states and rural area are considered to be the powerhouses of talent,one cannot expect to be the leader without inclusion to them.Talent hunt laid the different sporting bodies to reach their to pull the best talent and polished them.
- It will help the brake the various stigma related to sports,gender and caste biased in sport have no place to exist.
- Make it economic viable for those who can not afford to play sport as his primary choice and hesitate to make it professional one.
Question 13: Should the premier institute like IIT/IIM be allowed to retain premier status, allowed more academics independence in designing courses and also decide mode/criteria of selection of students. Discuss in light of the growing challenges.
Answer: The premier institute like IIT/IIM be allowed to retain the premier status and allowed to retain more academic independence. The following are the factor which favour the status of these institute are:
- Mushrooming of Engineering and Management colleges, having a mercenary aim and not inclined towards quality education. This has caused a degradation of the curriculum and academic excellence among the students coming out of such institutes. IIT/IIMs are required to have an autonomy to craft the best possible courses for the students.
- Entitlement of such institution and independence of such institution make it industry oriented. By making their courses interdisciplinary in nature, and more suitable to the industry, IIT/IIMs create a generation that is perfectly suited to the needs of the economy.
- Also, these institutions cater to the demand of indigenous industry. It is better to allow the educational institutions to frame the course and other academic requirements by themselves. A political or legal interference in such fields could disturb the whole purpose.
On the other hand, there might be some counter arguments as well:
- For instance, by creating such a division, there would be a long term bifurcation within the educational setup of the country. This could be problematic for the educational policy of the nation, and could drive a wedge among the student community itself.
- Further, giving such an autonomy to these institutions could fail the education system and the regulatory organisations in the country itself.
It may be better argued that, instead of giving the premium institutes an overarching autonomy, the whole educational system should be re-framed to abide by norms of academic excellence.
Question 14: Has the Cadre based Civil Services Organisation been the cause of slow change in India? Critically examine.
Answer: Coming Soon…
Question 15: Two parallel run schemes of the government viz the Aadhaar card and NPR, one as voluntary and other as compulsory, have led to debates at national level and also litigation. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth.
Answer: As per Section 14A of the Citizenship Act 1955 as amended in 2004, it is compulsory for every citizen of the country to register in the National Register of Indian Citizens (NRIC). The creation of the National Population Register (NPR) is the first step towards preparation of the NRIC. However, the issue arises that NPR and Aadhaar have the common area of contention and assume to be the project of same objective, but this is not true in actual sense. There is actually no conflict between UID and NPR. The illusion of conflict has been created by a misunderstanding about the objectives of the two projects.
NPR is a project whose major objective is geared towards ensuring better national security by developing a mechanism for creating a register of residents, which would, later on, be used as a base for creating a register of citizens. It follows a set of specific procedures in order to authenticate identity, place of residence, before issuing a Resident Identity Card. The UIDs’ emphasis is on assigning a unique number so as to be able to correctly identify an individual. This is the basic difference in project objectives of the two schemes.
On merit, Aadhaar and NPR both schemes played an important role to achieve developmental benefits and equitable growth, but it is not easy, and need routine upgradation of database. The challenge and opportunity by these schemes are separately acknowledged and not as a whole.
Merits of the two are as following
- A large no of e-governance platform can be build from these database,the card given would be an enabler, just like an ATM card allows one to access money, this card could allow citizens to access e-Government schemes and services after proper authentication of identity. Services offered by different ministries could be integrated on a common platform with the card as the common access key.
- For a long time India has been facing various frauds in identity as some corrupt persons has created various fake identity for their individual benefits. Aadhar and NPR India will help in finish all such kind of things.
- Also, the immediate purpose of the two schemes is different, as Aadhaar is being used as a proof of identity, for various purposes, including the disbursal of subsidies and other incentives. In contrast to this, the National Population Register is more like a database of the Indian citizens.
Question 16: With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and overflight throughout the region. In this context, discuss the bilateral issue between India and China.
Answer: There is growing tension between different countries, neighbouring the south china sea over the maritime issues like sharing of maritime resources, ownership of islands etc. The tension escalated after the declaration of complete sovereignty, over south china sea, by Chinese government. Recently Chinese government took initiative to construct Maritime silk route. It added fuel to the fire, by raising apprehensions about the intentions of the Chinese government.
New Delhi’s status in the area and beyond is at stake, and its response to Chinese policies can impact not only Japan but the ASEAN countries as well, thereby introducing important geopolitical issues for all concerned.In this context following bilateral issues between India and China are important.
- The maritime sea route proposed by China could affect the strategic interest of india in the Pacific as well as in the Indian ocean.
- China has embarked on a ‘string-of-pearls’ strategy to surround and contain India in South-Asia. China was establishing strategic relations with India’s neighbors to ensure a feeling of fear in Indian Political establishment.
- China is making Military bases, Ports, Roads, Gas Pipeline and other Infrastructures in our neighbors like Pakistan, Myanmar, Sri Lanka etc.
- India is countering the Chinese Policy with it’s own “Necklace Of diamond” Strategy and that is sending shivers down the Chinese spine.
- India and Vietnam are forging strong geo-political ties, much to the concern of China, which is engaged in territorial disputes with both countries.Vietnam offered India two oil-exploration blocks located in disputed South China Sea waters, prompting a sharp reaction from Beijing.
- China has already warned India against meddling in its dispute with Vietnam over islands in the South China Sea.
Question 17: The aim of Information Technology Agreement (ITAs) is to lower all taxes and tariff on information technology products by signatories to zero.What impact would such agreement have on India’s interests?
Answer: The Information Technology Agreement (ITA) is an agreement enforced by the World Trade Organisation (WTO) and entered into force on 1997. Since then a formal committee under the WTO watches over the declaration and its implementation.The ultimate aim of the is to lower all taxes and tariff on Information technology products by signatories to zero. In the context of the plurilateral agreements like ITA, India main concern was to attract inward FDI and to facilitate the growth of its then still nascent IT-services industry. For electronics manufacturing however, gains from trade liberalization were overshadowed by substantial costs – with rising electronics imports inflating the country’s current account deficit to unsustainable record highs, while eroding domestic electronic manufacturing and innovation.
To improve reciprocity in the distribution of gains from ITA, the expert suggests that late-comers, like India, deserve, under certain conditions, special and differentiated treatment. In turn, these countries need to agree to reforms that reduce investment barriers in their domestic industries, such as restrictive regulations and discrimination against foreign direct investment.
Question 18: Some of the international funding agencies have special terms for economic participation stipulating a substantial components of the aid to be used for sourcing equipment from the leading countries. Discuss on merit of such terms, and if there exist a strong case not to accept such conditions in the Indian context.
Answer: It is true that some of the international funding agencies put special terms for economic participation, by stipulating a substantial component of the aids to be used for sourcing equipment from the lending countries. This creates a handicap upon the freedom of the aid-recieving country in a number of contexts.
- Such terms put stringent restrictions on the economic freedom of the developing countries, thereby restricting them from importing from a country of it’s choice. This often forces the developing countries to set up unviable economic relations with the more-developed countries, thus putting them at a relatively disadvantageous position.
- A greater challenge is posed by the externalities that such relations create for the developing countries. Most of the economic agreements have some or the other social-political-diplomatic impacts on the developing countries, like India.
- In a world, divided into regional blocks, such terms could hamper India’s interest with other states and regional organisations. For instance, increasing proximity with the USA, gave rise to a number of tensions to the Indo-Russian relations.
- A viable strategy to counter such imposition of trade conditions could be to diversify the trade relations and diplomatic agreements with other countries and regions. By securing the support of the allies in the other parts of the world, countries like India could ensure the fulfilment of the economic interest as well as diplomatic sovereignty.
Question 19: India has recently signed to become founding member of the New Development Bank (NDB) and also the Asian Infrastructure Investment Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two banks for India?
Answer: The recently established New Development Bank (NDB) by BRICS member countries and Asian Infrastructure Investment Bank (AIIB), with their headquarters in China, by 21 Asian countries herald a shift in economic power from the West to the East. It is speculated that these two monetary institutions would dwarf the size of West-supported World Bank (WB) and the Asian Development Bank (ADB).
Need for the creation of NDB was felt because of the discriminatory attitude of the West towards the developing countries, Both the WB and the IMF are based on weighted voting system, which provide the rich countries a big say in the management. There are informal arrangements whereby the American is always at the top in the WB; while the European is in top position in IMF. In those monetary institutions, the developing countries don’t have enough voting rights.It is likely that NDB would take less assertive position with regard to conditions attached to loans than the WB. It would mobilize resources for sustainable infrastructural development projects in BRICS and other emerging economies and developing countries. Resources from this bank would be invested in power sector, ports, roads, telecommunication networks, water and sewerage.
Like the NDB, the establishment of AIIB by the 21 Asian nations, including Nepal, India, China, Pakistan, Sri Lanka and Bangladesh in Beijing on October 2014 will prove another milestone in financing infrastructure projects in the Asian region. China and India played a key role in establishing this bank after it failed to enhance its voice in multilateral organizations like the WB and the IMF.It is, therefore, likely that AIIB would somehow affect the image of ADB, the West-backed multilateral lender that finances projects in Asia. Perhaps, this is one of the reasons why the USA and its close allies Japan, South Korea, Indonesia and Australia remained conspicuously absent from AIIB.
Strategic significance of NDB and AIIB for India are as following:
- The Reserve and funding arrangement gives India a new instrument for safeguarding their economic stability. This is an important initiative at a time of high volatility in global financial markets
- Lending and other operational activities of New development Bank and AIIB could play significant role in improving financial system of India.
- Augment financing in infrastructure project which is the need of the hour for India.
Question 20: WTO is an important international institution where decision taken affect countries in a profound manner. What is the mandate of WTO and how binding are their decision? Critically analyse India’s on the latest round of the talks on Food security.
Answer: WTO is an organisation that intended to supervise and liberalise international trade.The organisation deals with trade between participating countries by providing a framework for negotiating and formalising trade agreement and a dispute resolution process aimed at enforcing participant adherence to WTO agreement,which are signed by the representative of member Government.The decision taken affect the countries in a profound manner.
The working of WTO has change dramatically and continue to do so,The principle force behind the changing norms is not hard to find: the continuously rising share of national output that is traded internationally (Globalisation) the collapse of central planning and developing countries rejection of import in favour of developmental strategies based on integration into the global economies so it is imperative for all the signatory country to bind by the agreement in the WTO forum and its violation leads to several penalties.
The mandates related to WTO are as following
- Settlement: exchange information/arguments and provide incentives for parties to come to a mutually agreed settlement;
- Rebalancing: if one party violates, another should not be obliged to continue to perform its obligation v-a-v the wrongdoer; this results from an idea of fairness or reciprocity;
- Compensation: repair damage caused by the breach to victims of the beach
- Compliance: bring about conformity with the rules
- Clarification: clarify the rules to facilitate compliance or settlement in the specific case, as well as to guide future conduct
- Deterrence/Punishment: deter future violations of the law
The following elements that may induce compliance and/or affect deterrence are:
- Reputation costs (in particular the risk that future commitments lose credibility)
- A desire to maintain the stability and legitimacy of the institution itself
- Independent belief in the ideas/benefits behind the rules
- Domestic costs linked to breach (such as higher consumers prices and losses for importers or limits imposed by national law)
The recently Bali round conducted which put forward the Doha round of 2001,which bring out the amicable solution among the member countries through trade facilitation agreement.
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