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.
Comparing, Evaluating & Learning from Neighbors:
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.
- As per IMF 2020 estimates, India’s per capita income stood at $1960 & in PPP terms $6460,
- 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.
2) Tribunal Reforms: What’s abolished, what happens to pending cases
GS2: Issues related to Constitutional Bodies
Context:
- The author talks about the recently passed Tribunals Reforms Bill 2021.
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:
![](https://chahalacademy.com/public/userfiles/files/image-20210816084119-1.jpeg)
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.