AUGUST 16 EDITORIAL

1) Learning from China

GS3: Issues related to the Indian Economy

Context:

The authors on the eve of 75 years of Independence stress the need for learning lessons from China’s development

Editorial Insights:

What’s happening?

In these 75 years of independence, India achieved several milestones:
- Reducing poverty,
- Improving literacy,
- Increasing life expectancy
- Modernizing the economy
- Equipping the nation with space & digital technologies.
  - Among others, the Green revolution induced technologies completely changed India’s food security ecosystem & made India as the largest exporter of rice.
However, there is a need for India to evaluate how other nations mainly neighbors have performed & without any second thought India should learn from them in terms of best practices.

The Immediate Neighbors: Pakistan & Bangladesh

It is gratifying to see that independent India has done better than Pakistan in terms of per capita income basis.
- As per IMF 2020 estimates, India’s per capita income stood at $1960 & in PPP terms $6460,
  - While Pakistan’s per capita income was just $1260 & in PPP terms $5150.
However, Bangladesh though it got independence in 1971, it marginally outperformed India on a per capita income basis with $2000.

The real Comparison: China

Given the size of the population of both countries & fact that both countries started their journey in the late 1940s.
- The real comparison of India should be with China.
India adopted a socialist strategy,
- While China took to communism to provide people food, good health, education & prosperity.
Surprisingly, China at its Communist-era peak in 1958-61, lost 30 million lives due to starvation.
- While in contrast, India faced with the same challenge has managed to escape such horror with support from the USA through PL 480 grain imports.
During 1949-1977, China having performed dismally on the economic front started changing track on more market-oriented policies, especially in Agriculture.
- Economic reforms such as the Household Responsibility System & liberation of agri-markets led to annual average agri-GDP growth of 7.1% during 1978-84.
- Farmer’s real incomes increased by 14% per annum during this period.
  - It not only gave legitimacy to carry out reforms in the non-Agri sector but also created a huge demand for manufactured products triggering a manufacturing revolution in China.
In 2020, China’s overall GDP was $17.7 trillion competing with the USA’s $20.9 trillion.
- While India lags way behind with its GDP at $.7 trillion.
The per capita income in PPP terms (quality of life tool) with the USA at $63420, China $17190 & India at $6460.

The Lessons: From China:

When compared to China, India’s sluggish performance questions its flawed democratic structure that makes economic reforms & implementation of policy changes more challenging.
Unless India grows more & quickly as a mature democracy to compete with China, it would become difficult to defend borders & its sovereignty.
Though India cannot catch-up with the USA standards in near future, India can reach China standards over the decade if properly planned.

The lessons:

China’s reforms started with agriculture & India to date avoiding agri-reforms.
- Even for manufacturing to grow on a sustainable basis, India has to increase the purchasing power of people in rural areas.
- This can be done by:
  - Raising their productivity but not by distributing freebies.
  - Huge investment in Agri R&D
  - Investing in education, skills health & physical infra.
- In this regard, China’s first lesson, Setting up of different institutional setup than the current & Liberating agri-market as a part of the reform package.
The second lesson will raise an eyebrow because it is a sensitive matter i.e. Population Control Policies.
- Due to the One-Child norm, during 1979-2015, China’s per capita grew much faster.
- While India’s attempts to control its population succeeded only partially & very slowly.
  - Poor education of girl child is at the core of this failure.
- Though in a country like India, compulsory enforcement of population control measures could boomerang politically.
  - But given that Indian states like UP that has an average family size of 6, increasing household incomes is a mammoth task & a big challenge.
- So India like China needs to focus effectively on population control mechanisms so that the per capita income can remain stable.

Concluding Remarks:

Even though India has achieved a lot since 1947, there’s much to learn from China.
It is high time for India to focus on its economic policy that improves quality education, provides more skill development opportunities & implements agriculture reforms.

GS2: Issues related to Constitutional Bodies

Context:

Editorial Insights:

What’s happening?

Recently SC bench led by CJI has expressed its discontentment over the functioning of tribunals in the country, given that several of these are understaffed.
- Also questioned govts intention to shut down tribunals that have several key vacant posts.
- This came on the backdrop of the passing of a Bill to dissolve at least eight tribunals.

About The Tribunals Reforms Bill 2021:

It replaces a similar Ordinance promulgated in April 2021 that sought to dissolve 8 tribunals that function as appellate bodies to hear dispute under various statutes.
- & also transferred their functions to a civil court or a High Court.
The Bill states that the Chairpersons & Members of the tribunal being abolished shall cease to hold office & they will be entitled to claim compensation equivalent to three months pay & allowances for their premature termination.
It also proposes changes in the process of appointment of certain other tribunals.

The Changes:

The bill provides for uniform pay & rules for the search & selection committees across tribunals.
- It also provides for the removal of tribunal members.
It states that the central govt on the recommendation of the Search-cum-Selection Committee remove from any Chairperson or a Member who has:
- Been adjudged as an insolvent; or
- Been convicted of an offence which involves moral turpitude; or
- Become physically or mentally incapable of acting such Chairperson or Member; or
- Acquired such financial or other interest as is likely to affect prejudicially his functions as such Chairperson or Member; or
- So abused his position to render his continuance in office prejudicial to the public interest.
While the move brings greater accountability to the functioning of the tribunals, it also raises questions on the independence of these judicial bodies.
- In the Search-Cum-Selection Committee, the govt has an upper hand with voting rights while the Chief Justice of HC who heads the committee does not have a casting vote.

The Tribunals that are being dissolved:

Further head:

The pending cases under the dissolved tribunals will be transferred to the HCs or commercial civil courts immediately.
Though the cases might get faster hearing & disposal under the HCs, there is a fear that lack of specialization in regular courts could be detrimental to the decision-making process.