Debt & Deficit are same things?
No,
- when you’re spending more than your income = you're in deficit
- when you borrow money to fill that gap / deficit = you're in debt.
Why deficit?
· Ideally, Govt. should not spend more than what it earns.
· but, in real life situation its not that easy.
· Govt. has to spend crores of Rs. in military, poverty removal schemes, floods, draughts, tsunami reliefs etc. so they're bound to run in deficit. And ultimately have to borrow from someone to fill that gap.
Is Deficit bad?
that depends on whether you’re borrowing for Development work or not?.
there are 2 types of Govt. Expenditure (spending)
Revenue Expenditure
· = when Govt. spends money paying salaries to its employees.
· or buys some machine guns or missiles.
· such Expenditure is non-productive (Of course these things are essential to run the nation, but its 'non-productive' in this classification)
· this spending Doesn’t create assets* but money wasted in
o Salary & perks to Govt. employees
o Administration
o Defense – law –order
o Interest payment on previously borrowed loans
o Subsidy <-- majority of tax payers’ money goes here. (I’ll talk about subsidy in another article)
*by the way what are assets?
· Asset is something that generates money. For example you purchase a house & rent it to someone- then you’re earning money. Thus its your asset.
· NPA = Non-performing Asset. = its not generating money / making losses. (for e.g. you buy house but you neither live in it nor you rent it to others.)
Borrowing to fill up Revenue deficits is poisonous for the health of nation. (e.g. Currently Revenue deficit of UK is 60% of its GDP)
Capital Expenditure
· When Govt. makes roads, dams, bridges, ports, schools, etc.
· such work is productive. It will lead to further economic Development.
· So, if Govt. spends money here & runs into deficit / takes debt to finance it = its not bad. because it'll be recovered later on.
· e.g. kids learn in school, they grow up - do some job / business = ultimately pay taxes directly / indirectly thus money is recovered. and so on...
· Another example, Govt. gives free meal via Mid-day meal schemes. Now you might think, all those kids are poor, and they’ll never earn enough money to be in the ‘income-tax slabs’ group. So what’s the point in giving them free food?
· but no matter how rich / poor those kids are when they grow up- they’ll still have to buy things like petrol, matchsticks, cinema tickets, milk, food oil, soap etc.
· and on all such things, Govt. takes taxes (Vat, entertainment tax etc.) . So even if the poor people are not paying direct income tax- they still end up paying money to Govt. this is called ‘indirect Tax’
in short, if Govt. runs into deficit, while paying for the capital formation spending = good for nation.
3 types of Deficit?
#1- Total or Budgetary deficit (BD)
= spending – income
=Total Expenditure - total receipts ; (the income of Govt. is written as ‘reciepts’)
= [Total (Revenue + Capital) Expenditure] –MINUS- [Total (Revenue + Capital) receipts]
#2- Fiscal Deficit (FD)
BD + Market borrowing + other liabilities
This Measures total borrowing requirement of govt from
1. internal
2. external sources
#3- Primary Deficit / Non Interest Deficit
=FD – Interest paid
What is Monetized Deficit?
Ans. That is When RBI prints more currency notes to fill up Govt.’s deficit. (Technically its RBI selling Govt. treasury bills in market & giving money to Govt.)
To finance the Deficit, where does Govt. get money from?
1. Govt Savings
2. PSU Surplus
3. Budget surplus
4. Public Borrowing (if Govt. has low cash on above 3 items) ->> this is public DEBT. (via treasure bills etc)
5. External Assistance (borrow from World Bank , IMF etc.)
Can’t we just print more currency notes to pay-off the debts?
· We’ve lot poor people in India, how about RBI printing 1LaKh rupee notes, & giving that to each poor family, then all our poverty problems will solve isn’t it?
· Nope, it’s not that easy.
· When each poor has 1 Lakh rs. In his pocket, he’ll go to market & buy 1 kg potato.
· Ultimately there will be shortage of potato because every poor will have more money.
· So then, some poor will offer the veggie vendor- 30,000 Rs. Just for one kg potato
· Then some other will offer 40,000 Rs. And so on.
· At the end, they won’t be able to buy much potato even with 1 Lakh rs. In their pocket. This is inflation
· So printing more money to solve problems doesn’t help= you’ve to produce more products as well so that people can buy it using their money.
Ok so in short, Govt. borrows money from somewhere to finance its gaps (deficit) – that’s called Deficit Financing.
What’re the uses of Deficit Financing?
Use #1 Fighting Depression / Recession ( Keynesian Theory)
In 1930, an Economist named JM Keynes gave this concept.
· during recession – there is low demand in market because people don’t have enough money to buy things.
· So, if Govt. starts some project, people get employment= they’ve money = they’ll buy something = boost in production = boost in economy.
· Like Hoover Dam was made during 1930s recession in America.
· This is “dig wells and fill wells”
Use #2 Economic Development
· Suppose you want to start a canteen, but don’t have enough money. So you can do two things
o Work as a waiter in someone else’s canteen until you save enough money to buy your own canteen (but this will take a long time)
o Or, borrow loan from bank to start a canteen (quick solution) … same way
· Developing countries (3rd world) Don’t have enough money, so this way fast capital formation can be done. (borrow money to make Dams, roads)
· Thus Deficit financing Breaks bottlenecks, structural rigidities.
Negative effect of Deficit Financing
· Increase inflation [like I told ago- poors & potato]
· Changes pattern of investment
· Forced savings (since everything Is so costly, you can’t buy it, so you’ll park your money in the Bank account as savings.)
Use #3 in War
· During war we need lot money to buy oil, missiles, food /medicines for army etc.
· Nations print more money to finance it. (because its hard for a nation to get loans during war.)
· For Example, Germany printed more money during World war 1 (1914-18)
· But then Inflation destroyed German money’s value.
· That’s why there will be steep inflation after war. (poor potato.)
· USSR did the reverse of it- it refused to pay loans in 1917 – that’s called ‘repudiation’
SAFETY LIMITs FOR DEFICIT FINANCING
· TO PREVENT INFLATION deficit financing should be made so that it leads to capital formation
o Means Govt. must not use the money to pay interest / subsidy / salary.
· surplus money must be sucked away from market by higher tax- loan interest
· Newly created (printed) money used in capital formation Which have short gestation period*
o Means you print more money to build a dam but it takes long years to build dams. Thus you won’t be able to recover the costs quickly = during this time, it spoils market with inflation.
o If you use newly printed money to build a superfast highway (which takes quite less time compared to Dams) then you’ll recover the money quickly.
o Again you might think how can Govt. recover money used in building roads?
o Ans- more roads = more transport & business = more Sales / Excise / GST / VAT etc taxes.
· Import of luxury items must be discouraged
o Suppose you’re a road contractor, and Govt. gave you payment for building a highway.
o But you use that money to buy expensive imported perfumes / gold watches/ i-pods!
o that doesn’t help the Indian Economy. That’s why.
Now moving to another part-
Public Debt
When does Govt. borrow from public?
1. When Govt. doesn’t have enough surplus money.
2. When Taxes can’t be increased beyond a level (not like you can ask every middle-class man to pay 1 Lakh rs. To help build the dams/highways)
3. When printing more money is making inflation (after safe limit)
How does Govt. borrow from public?
- One example is By issuing
o Kisan Vikas Patra,
o Indira vikas patra
o Narmada Vikas patra
o The money gathered from such certificates is used for building dams & other things.
o And the advantage is, Govt. will double your money after some 10-15-20 years. So Govt. doesn’t have to repay you interest every month / year.
o So its in a way- loan taken from you (the public) by the Govt.
Via Treasury bills
- here RBI (have to) buy Govt. treasury bills- gives money to Govt. & sells these bills in Capital market*.
- When you buy a Govt. security- you can be sure: its safe and give you good profit- that’s why its called ‘Gild Edged market’
- It deals with Govt. & semi Govt. securities
- Generally commercial banks (have to) purchase Govt. securities (remember the SLR: statutory liquidity ratio)
- SLR = banks to invest a certain percentage of their liabilities in government securities – the rate was
o 38.5 per cent in 1990
o 25 per cent in 1997
-
*{will write in detail about capital market, in another article}
What’s the Treasury bill?
- When Govt. has small temporary gap/deficit in the Revenue part, it’ll sell the treasury bills to RBI.
- RBI has to buy it. (because there is some law / deal)
- Then RBI sells it to Commercial Banks (thus recovers money)
- But here as you can see money is just printed / given without actual creation of any direct ‘physical product’ so this is bad for economy in long run.
Debt trap
When you borrow just to pay your previous debts.
That is the act of borrowing money just to keep up with debt servicing*
*Debt servicing = interest + installment payment
(FRBM) Fiscal Responsibility + Budget Management Bill (2000)
- It was made to eliminate fiscal deficit
- It put limits on central government’s borrowings, debt, deficits
- It said that total liabilities of central government should not exceed 50 per cent of GDP. (it was 76% in 2002.)
- However its provisions are diluted now, because Govt. had to pay lot money due to 6th pay Commission / debt waiver & recession.
Separate Public debt Management office
- Currently RBI is responsible for managing Govt.’s debt.
- But as you know- RBI is also responsible for monetary policy (control money supply + inflation via CRR, SLR, Repo etc.)
- Both tasks are conflicting with each other.
- On one hand, RBI has to print more money / sell Govt.’s treasury bills in market to fill Govt.’s deficit
- On the other hand same RBI also has to control money supply in market in such a way that there is no inflation.
- That’s why there are talks of separate debt Management office other than RBI.
by Mrunal patel
Monday, December 28, 2009
GDP,GNP,NNP,
the First Step:-
GDP, GNP, NNP
Gdp-Gross Domestic Product
total market values of goods and services produced by workers and capital within a nation's borders during 1 year.
Remember the word 'Within NAtional borders'.
that means,
1. ONGC buys some oil-wells in Russia, then whatever ONGC earns from it- is NOT counted here.
2. Your NRI-son sends you money from America - that is also NOT counted.
GNP-Gross National Product.
the total market value of goods and services produced by all citizens and capital during a given period (usually 1 yr)
here
* ONGC's Income from Russia's oil wells is COUNTED!
* + Your NRI-son sends you money from America - that is counted.
* Minus if some American works in India, and sends money back to his family @ US - then you've to deduct it.
Calculating the NET
remember this easy formula
Gross minus Depreciation* = Net
{depreciation explained later}
now see following formulas based on above formula! :-
GDP - Depreciation = NET Domestic Product
GNP- Depreciation = Net National Product (NNP)
Problem with GDP:-
GDP doesn't count negative things associated with market activities.
For Example, if you chop down trees to make furniture, & export it, then India's GDP value will increase.
But as you know cutting down trees = bad for environment : but this is negative thing is not counted in GDP. same can be applied for making medicinal drugs/ chemicals but rivers / atmosphere getting polluted in the process and so on....
GDP is a concept evolved during & after WW2, when situation was different.
Thus GDP is outdated, and we need to look @ other things like Human Development index, etc.
(now whenever you read editorials on GDP etc., keep this in mind, and you'll learn new things to write in the Essay.)
*What is Depreciation ?
When you're making some product (mobile phone)
or providing some service (internet, travelbus etc.)
Then you need to use machines to produce it.
And that machinery has wear and tear cost. (annual Maintenance, service, repair costs)
That cost of repair / maintenance of machinery etc. is called Depreciation.
What's the use of Depreciation ?
You'll get income deduction for depreciation.
for Example, Govt. of India provided depreciation of 50% for commercial vehicles purchased on or between January-March 2009
that means suppose you're a businessman with a car worth 10 Lakh rs. for your business purpose.
so 50% depreciation value of 10 Lakh. = 5 LaKh Rs.
and for that you don't have to pay tax
e.g. if you were in the 30% tax bracket then you don't have to pay
5 LaKh X 30 / 100 = 1.5 Lakh Rs. to Govt. as income tax. <-- you don't have to pay that money.
By Mrunal
GDP, GNP, NNP
Gdp-Gross Domestic Product
total market values of goods and services produced by workers and capital within a nation's borders during 1 year.
Remember the word 'Within NAtional borders'.
that means,
1. ONGC buys some oil-wells in Russia, then whatever ONGC earns from it- is NOT counted here.
2. Your NRI-son sends you money from America - that is also NOT counted.
GNP-Gross National Product.
the total market value of goods and services produced by all citizens and capital during a given period (usually 1 yr)
here
* ONGC's Income from Russia's oil wells is COUNTED!
* + Your NRI-son sends you money from America - that is counted.
* Minus if some American works in India, and sends money back to his family @ US - then you've to deduct it.
Calculating the NET
remember this easy formula
Gross minus Depreciation* = Net
{depreciation explained later}
now see following formulas based on above formula! :-
GDP - Depreciation = NET Domestic Product
GNP- Depreciation = Net National Product (NNP)
Problem with GDP:-
GDP doesn't count negative things associated with market activities.
For Example, if you chop down trees to make furniture, & export it, then India's GDP value will increase.
But as you know cutting down trees = bad for environment : but this is negative thing is not counted in GDP. same can be applied for making medicinal drugs/ chemicals but rivers / atmosphere getting polluted in the process and so on....
GDP is a concept evolved during & after WW2, when situation was different.
Thus GDP is outdated, and we need to look @ other things like Human Development index, etc.
(now whenever you read editorials on GDP etc., keep this in mind, and you'll learn new things to write in the Essay.)
*What is Depreciation ?
When you're making some product (mobile phone)
or providing some service (internet, travelbus etc.)
Then you need to use machines to produce it.
And that machinery has wear and tear cost. (annual Maintenance, service, repair costs)
That cost of repair / maintenance of machinery etc. is called Depreciation.
What's the use of Depreciation ?
You'll get income deduction for depreciation.
for Example, Govt. of India provided depreciation of 50% for commercial vehicles purchased on or between January-March 2009
that means suppose you're a businessman with a car worth 10 Lakh rs. for your business purpose.
so 50% depreciation value of 10 Lakh. = 5 LaKh Rs.
and for that you don't have to pay tax
e.g. if you were in the 30% tax bracket then you don't have to pay
5 LaKh X 30 / 100 = 1.5 Lakh Rs. to Govt. as income tax. <-- you don't have to pay that money.
By Mrunal
SLR,CRR,BANK RATE,REPO RATE,REVERSE REPO
What is all this CRR, SLR,Repo,Bank Rate etc. crap ?
ans. it shows the money releationship of banks with RBI.
in short it works like this. I've created following diagram,- click on it which should explain all of those concepts with ease.(yes its watermarked because i don't like people plagiarizing my work.)
CRR, SLR,Repo, reverse repo,Bank Rate UPSC General studies
but before you understand the diagram, read following things
RBI is the banker of the banks (it lends money to other normal banks)
now these normal banks will give us loans - charge interest, thus earn profits.
Now as you know, if people have lot money in their hands then price of products will rise.
So RBI needs to control the amt of money available in the Market = maintain Liquidity.
*What is liquidity ?
* when is there more money in the market & banks = more liquidity= easy to get loans
* less money in market = less liquidity. = hard to get loans
Why do we need liquidity ?
* more money in market = more money for people get borrow.
* so people borrow- invest some where or start some activity / business with it.
* if there is less money in market (and banks) then they'll charge higher interest rate on it. thus getting loans become difficult with less liquidity.
* too much liquidity = easy loans = inflation (price rise of products)
now back to main thing.
its job of RBI to maintain liquidity.
as we know, commerical banks borrow from RBI & lend it to customers to earn profits.
So to control liquidity in the market, RBI will change its CRR, SLR, Bank Rate & Reverse Bank rates, depending on the situation.
BY Mrunal patel
ans. it shows the money releationship of banks with RBI.
in short it works like this. I've created following diagram,- click on it which should explain all of those concepts with ease.(yes its watermarked because i don't like people plagiarizing my work.)
CRR, SLR,Repo, reverse repo,Bank Rate UPSC General studies
but before you understand the diagram, read following things
RBI is the banker of the banks (it lends money to other normal banks)
now these normal banks will give us loans - charge interest, thus earn profits.
Now as you know, if people have lot money in their hands then price of products will rise.
So RBI needs to control the amt of money available in the Market = maintain Liquidity.
*What is liquidity ?
* when is there more money in the market & banks = more liquidity= easy to get loans
* less money in market = less liquidity. = hard to get loans
Why do we need liquidity ?
* more money in market = more money for people get borrow.
* so people borrow- invest some where or start some activity / business with it.
* if there is less money in market (and banks) then they'll charge higher interest rate on it. thus getting loans become difficult with less liquidity.
* too much liquidity = easy loans = inflation (price rise of products)
now back to main thing.
its job of RBI to maintain liquidity.
as we know, commerical banks borrow from RBI & lend it to customers to earn profits.
So to control liquidity in the market, RBI will change its CRR, SLR, Bank Rate & Reverse Bank rates, depending on the situation.
BY Mrunal patel
Saturday, December 26, 2009
WTO
before we understand WTO, lets see
Tariff barriers
- Tariff = A government tax on imports or exports
- When Indian Govt. puts heavy import duty / custom duty on Foreign Products – either that import item becomes very costly so people will buy desi* items. (and there will be smuggling of foreign items! Like Gold watches/ perfumes etc in the 80s.) *Desi= domestic / indian
- This protects domestic players. (= industrialists/ businessmen.) from competition from foreign players.
Non-Tariff barriers.
- When Desi players are given subsidies / preference over the foreign players by Govt. of India.
- For example,
o when Govt. is buying some phones/ Xerox Machines, in the tender it’ll mention that only Domestic companies can fill the tender.
o making polices in such a way that its hard for foreign player to start factory / introduce his product in India
o Intentionally setting the Quality standards so high that certain players can’t sell their products here.
- Here no tariff (=tax/money) is involved but still there is a barrier for foreign players. That’s why its called Non-Tariff barrier.
what was happening before WTO.
· Nations would put heavy custom duties on foriegn items. (to protect the domestic / Swadeshi industries)- this is called 'protectionism / Tarrif Barriers'
· this all sounds good from patriotic point but
· When there is less competition - products will be expansive & customer won't have much choice. for Example….. compare-
o prices of Mobiles in 1999, with current prices!
o features of current mobiles with 1999 (was there any MP3, radio,Camera, Color Screen etc features, if yes- how expensive was it!)
o talk-time plans (in 1999 it was about 7 Rs./minute + incoming wasn't free, now its around 50 Paisa / minute + Free incoming/)
Today we have this fun, because of globalization + import of foreign products & Govt. doesn't put high custom / import tax on it. (no high tarrif barriers)
So, The Primary objective of WTO is to remove the tarrif barriers / Custom duties. = integrate all nations in international economy.
For this, WTO will consult with all member-nations, and will make legally binding agreements.
Why agreements?
- there are total 19 Agreements in WTO, but most imp. are 3. (i'll explain it later in this article.)
- these agreements talk about what is compulsory & what is non-compulsory for each nation.
- And what will be the penalties if a nation doesn't follow these agreements.
- Every Agreement has an 'Annex'- in that you'll find the detailed provisions & items included in the agreements.
- The Secretariat of WTO keeps an eye on every nation – seeing whether agreements are followed or not.
But there will be some bad-nations who won't play by the rules & try to cheat such agreements. So second objective of WTO is 'Dispute Resolution'
that's like an international civil court.
Now lets see the 3 most imp agreements of WTO. See this chart
Like I said ago, they’ve annexes which provide operation details about how to implement these agreements. (only TRIPS doesn’t have any annex)
Now lets see their annex 1 by 1 via charts.
Annex
#1 Annex : GATT
1 – SPS came after Doha
Now another mimp annex of GATT is, SCM = subsidies & counter veiling measures (=the Red, Green & Amber list) – see this chart-
Apart from this, shipment inspection and anti-dumping are also included in GATT annex.
#2 : Annex of GATS (services)
#3 : TRIPS – like I said ago, TRIPS doesn’t have any annex!
But TRIPS is very imp agreement in today’s world full of technologies-so lets see what’s it about t.
TRIPS =Trade related intellectual property rights
Its one of the agreement between WTO member nations.
TRIPS doesn’t have any annexes.
What is TRIPS all about?
· In short, under TRIPS agreement, every member-nation has to make laws and tough punishments for anyone who breaks / copies other people's copyright / patent etc.
why TRIPS is imp?
· otherwise, there will be wide spread piracy & then Inventors of 1st world won't invest / come in 3rd world market.
· there are certain items whose actual price can't be counted based on 'physical material used in it' (e.g. Books are not sold based on number of pages/ cost of paper but content & fame of author.) so we can't apply GATT (which is for physical goods ) and Book is not a 'service' either (so can't apply GATS)
· Research & Development.(R&D)
o it takes years and billions of rupees to make a new drug.
o but retail price of one tablet of that drug would be about 5 Rs.
o here, if the patent / copyright wasn't protected, then inventors will not invest in R&D.& then world will be deprived of better products.
· the GI (Geographical indicator)
o like Darjiling tea- only the tea made in Darjiling can be sold as 'Darjiling tea'
o otherwise, Britishers would also sell their tea claiming it to be 'Darjiling variety' and then our tea makers will face unfair compitition.
India's Problem with GI
· Pakis also claim GI for their Basmati Rice.
· TRIPS doesn't talk about trans-border GIs.
Time limit
· it came in force from 1st January 1995. and according to its provision
· Developed nations have to make such laws within 1 year.
· developing nations (like India) have to make such laws within 5 years.
· Least Developing countries (like Zimbabway/ Somalia) were given time limit upto 11 years (=2006) , but now the time is extended upto 2016 for pharmaceutical patent laws.
Apart from above 3 agreements (GATT, GATS, TRIPS) other 3 imp agreements are-(see this diagram)
What is the Use of these agreements? / What are the trading principles in WTO?
Without Discrimination
· MFN = Most favored nation
· In WTO, every nation is MFN
· So, if India grants a special favor to one nation – India will have to give that special favor to all member-nations of WTO.
· India will have to treat locals & foreign players equally. (e.g. you can’t have a system like Local businessman’s file will be cleared first or local man will be given preference in contract / tenders/ 3G frequency allocation.)
· Exception to this principle
a. Group of nations can form FTA = Free trade agreements
b. Country can give special favors to 3rd world / poor nations.
c. A nation can impose high import duty/ prevent entry of goods from a nation that’s doing unfair trade practices (like dumping* / Products dangerous to health**)
d. But there are strict conditions in WTO, before you can do above things.
i. *Dumping =China intentionally sends extremely cheap toys in india, so Indian toy makers collapse and toy market in India is captured by China.
ii. ** Products dangerous to health like China’s milk powder which had melamine.
Freer Trade (bringing down barriers in international trade) –
· WTO agreements try to abolish following things-
1. custom duties
2. Quota
3. subsidies
4. non-tariff barriers* (explained later.)
5. red tape
6. Artificially propped up exchange rates
a. like China intentionally keeps the value of Yuan low, so Americans will find it cheap to buy from China compared to other nations.)
Predictability
· When there are legally binding agreements between member nations of WTO- it means, even after change in Govt. (BJP / Congress / whatever) – the Indian policy of international trades won’t alter very much.
· This gives confidence of foreign investors because of
· Promise of stability (=Ceilings on customs tariffs.)
· policy environment is predictable.(= Transparency in trade rules)
· Equal treatment to Local players & foreign players. (=open access to markets)
· binding commitments (WTO keeps an eye on each nation – so Govt. can’t cheat. And if you cheat- you’ll have to pay fines.)
· And foreign investment helps the domestic economy as well.
Fair compitition
WTO agreements prevent unfair dumping, subsidies, government procurement
Economic Reforms
to implement WTO Agreements, the 3rd world nations have to change their policies. = reform
(remember the pre-LPG Era - quota,licence,inspctor raj)
What was before WTO?
- Before WTO, there was GATT.
- GATT was criticized for being 'Rich men's club'
- Everything in GATT used to work in a manner that'd suit the rich nations.
so WTO is better than GATT?
- Yes, because of following reasons.
1. WTO dispute resolution is quicker than GATT (disputes have to be solved within 18 months)
2. in GATT, the bad-nation was free to determine its own penalty.
3. but in WTO, bad nation has to pay high penalties for not following the rules.
4. GATT talked only about goods (physical products) . WTO talks about services (phone lines, BPO) & Intellectual property rights, along with those goods.
5. The working of WTO is more transparent.
6. In WTO, every nation has one vote only. Unlike IMF where rich nations have more voting powers.
India & WTO
first lets see what positive things happened then we talk of Doha Rounds and finally about What's India's problem in Doha rounds.
What did India Gain from WTO?
1. India got boom in exports because WTO gradually lowered Barriers internationally.
2. our export was only $33.22 billion in 1998-99.
3. right now India's exports are worth more than $100 billion
4. India won multilateral dispute settlement against such powerful economies as USA
5. because of TRIPS, India had to adopt international standards in Intellectual property rights.=
6. ↑ flow of Foreign investment & technology.
7. (because Foreigners established research labs/ manufacturing units in India & started selling their products here.)
8. Textiles boom (because MFA = Multilateral Fiber Agreement was scrapped under WTO's ATC=Agreement on Texttile clothings.) otherwise previously UK and other nation had put quantitative limits on Indian Cotton's Entry in their market.
DOHA
what is DOHA?
Doha is capital city of a small nation called Qatar.
4th Ministerial conference of WTO was held in that city in Nov.2001.
and they (member nations) started talking about some new agreements & issues- and the talks continued.. so this entire package is called 'Doha round of talks.' aka "DDA = Doha Development agenda."
Fifth Ministerial Conference was held in Cancun, Mexico in September 2003.
What were they talking in Doha?
Developing nations were complaining that they're facing difficulties in implementing WTO agreements.
so concessions were given to them.
1. SPS annex added under GATT (hope you saw the previous diagram of GATT annex)
a. SPS: Sanitary+ Phytosanitary Measures Agreement (on farm products)
b. Each nation can make its own Quality control rules
c. but they've to be scientific.
2. Earlier TRIPS (intellectual property rights) was strict.
a. now it was relaxed- and agreement changed saying that Laws should be made which supports existing medicines and public health interest at large.
items for new negotiations in Doha
1. Multilateral environmental agreements
2. Trade barriers on environmental goods & services
3. Fisheries subsidies =they harm environment, by encouraging too many fishermen to chase insufficient fish
the Doha conference failed because it ended with out any consensus.
· Members were divided on competition policy & transparency in Govt. procurements.
· First world blames India to be the main villain for failure of Doha talks.
What was India's Problem in Doha?
SSM=special safeguard mechanism
· its a measure designed to protect poor farmers by allowing countries to impose a special tariff on certain agricultural goods in the event of an import surge or price fall
· For example, if USA sends so much cheap corn to India, that price of Corn become 50 paisa per kg. then India can put tariff barrier (= increase import duty on American Corn) so that prices become high again.
· otherwise, no one would by Indian Corn, and our farmers will starve.
· United States arguing that the threshold had been set too low.
· (e.g. if it was decided that if price fall to 5 Rs. / kg corn, then India could do this. but US wants that India shouldn't be allowed to act, unless price of corn falls very low, something like 50 paisa / kg.!)
· India doesn't agree with US on this.
Apart from this, India has insisted on a large number of special products that would not be exposed to wider market opening
Like I said ago, more mobile companies are good. Because it increases employment. (you can be a representative of some mobile co. or if you’ve retail store, you can sell pre-paid cards etc. or you can start your own mobile repair shop and so on…)
But same is not true about agriculture sector, since 70% of India’s population depends on one way or another with the agriculture sector. So if cheap foreign items are allowed, then it’ll create huge problem for their employment. Its easy for each American farmer to produce tonnes of grain (and sell his produce cheap), because every farmer has huge farms, latest machinery, fertilizers & great seeds+ continuous water supply + subsidy. But same is not true in India.
However the problem of food-price inflation should also be taken into account. (= read editorials, you’ll face such topics in mains / essay.)
More trouble for India
NAMA= Non-agricultural market access negotiations
European Union has threatened to approach the World Trade Organisation (WTO) again if India does not remove the inter-state tariff disparities. “We want India to get rid of its taxes on wines and spirits in different states to allow easier access to European wines, failing which we will approach the WTO again,"
Criticism of WTO
Mostly comes from environment activities.
1. WTO promotes industries, MNC (Multi-national corporations)
a. But these MNCs sometimes are involved in bad things. Eg. They pay huge bribes to Burma’s military regime for operating the gas lines, nickel mines etc. and employ forced laborers in it.
2. The infrastructure boom because of WTO (more foreign companies making factories in India) – leads to habitat / bio-diversity loss & pollution etc.
3. Its hard to put barriers on imported items, thus the domestic industries face tough competition which sometimes ruins them. (e.g. its not possible for Indian Toy maker to compete with Chinese toys in retail price.) and yet not much the Indian Govt. can do. If they put some ban on it, then China will go to WTO, and WTO will impose heavy fines on India.
4. 3rd world has to open its market for first world product without much benefit in the reverse process. (=3rd world’s products lag in race in 1st world’s market.)
e.g. as you know in colonial era, when India was under British Rule, if we exported our Indian Textiles to Britain, they’d put huge import tax on it. Thus our cloths would become very expensive in their market. So Britishers would only buy locally made cloths from Manchester. This sort of ‘protectionism’ in old times (almost upto 1995) = their companies made lot of profit during that era & had lot profit invested in Research and technology, so currently their products will be technically and in quality far superior than ours. So even if there is no barrier today, British people will buy their product and not ours. This argument runs on the same line like of climate change. America allowed its factories to pollute the atmosphere and thus became a developed nation but now, it wants the developing nations to stop polluting the world & cut their emissions!
Timeline – Evolution of WTO
1944
· Bretton Woods conference,
· they wanted to make ITO (International Trade Org.) but it didn’t happen.
1947:
· GATT (General Agreement on Trade & Tariffs) established
· It was criticized as being 'RICH MEN'S CLUB'
1986
· Uruguay Round of Talks
· Service & Intellectual Property rights related topics included in the debate
· 1993, everyone agreed on it
1994 (Marrakesh, Morocco)
- All nations signed on agreement & WTO was established
2004
- 148 nations are members of WTO, covering 94% of international trade
Tariff barriers
- Tariff = A government tax on imports or exports
- When Indian Govt. puts heavy import duty / custom duty on Foreign Products – either that import item becomes very costly so people will buy desi* items. (and there will be smuggling of foreign items! Like Gold watches/ perfumes etc in the 80s.) *Desi= domestic / indian
- This protects domestic players. (= industrialists/ businessmen.) from competition from foreign players.
Non-Tariff barriers.
- When Desi players are given subsidies / preference over the foreign players by Govt. of India.
- For example,
o when Govt. is buying some phones/ Xerox Machines, in the tender it’ll mention that only Domestic companies can fill the tender.
o making polices in such a way that its hard for foreign player to start factory / introduce his product in India
o Intentionally setting the Quality standards so high that certain players can’t sell their products here.
- Here no tariff (=tax/money) is involved but still there is a barrier for foreign players. That’s why its called Non-Tariff barrier.
what was happening before WTO.
· Nations would put heavy custom duties on foriegn items. (to protect the domestic / Swadeshi industries)- this is called 'protectionism / Tarrif Barriers'
· this all sounds good from patriotic point but
· When there is less competition - products will be expansive & customer won't have much choice. for Example….. compare-
o prices of Mobiles in 1999, with current prices!
o features of current mobiles with 1999 (was there any MP3, radio,Camera, Color Screen etc features, if yes- how expensive was it!)
o talk-time plans (in 1999 it was about 7 Rs./minute + incoming wasn't free, now its around 50 Paisa / minute + Free incoming/)
Today we have this fun, because of globalization + import of foreign products & Govt. doesn't put high custom / import tax on it. (no high tarrif barriers)
So, The Primary objective of WTO is to remove the tarrif barriers / Custom duties. = integrate all nations in international economy.
For this, WTO will consult with all member-nations, and will make legally binding agreements.
Why agreements?
- there are total 19 Agreements in WTO, but most imp. are 3. (i'll explain it later in this article.)
- these agreements talk about what is compulsory & what is non-compulsory for each nation.
- And what will be the penalties if a nation doesn't follow these agreements.
- Every Agreement has an 'Annex'- in that you'll find the detailed provisions & items included in the agreements.
- The Secretariat of WTO keeps an eye on every nation – seeing whether agreements are followed or not.
But there will be some bad-nations who won't play by the rules & try to cheat such agreements. So second objective of WTO is 'Dispute Resolution'
that's like an international civil court.
Now lets see the 3 most imp agreements of WTO. See this chart
Like I said ago, they’ve annexes which provide operation details about how to implement these agreements. (only TRIPS doesn’t have any annex)
Now lets see their annex 1 by 1 via charts.
Annex
#1 Annex : GATT
1 – SPS came after Doha
Now another mimp annex of GATT is, SCM = subsidies & counter veiling measures (=the Red, Green & Amber list) – see this chart-
Apart from this, shipment inspection and anti-dumping are also included in GATT annex.
#2 : Annex of GATS (services)
#3 : TRIPS – like I said ago, TRIPS doesn’t have any annex!
But TRIPS is very imp agreement in today’s world full of technologies-so lets see what’s it about t.
TRIPS =Trade related intellectual property rights
Its one of the agreement between WTO member nations.
TRIPS doesn’t have any annexes.
What is TRIPS all about?
· In short, under TRIPS agreement, every member-nation has to make laws and tough punishments for anyone who breaks / copies other people's copyright / patent etc.
why TRIPS is imp?
· otherwise, there will be wide spread piracy & then Inventors of 1st world won't invest / come in 3rd world market.
· there are certain items whose actual price can't be counted based on 'physical material used in it' (e.g. Books are not sold based on number of pages/ cost of paper but content & fame of author.) so we can't apply GATT (which is for physical goods ) and Book is not a 'service' either (so can't apply GATS)
· Research & Development.(R&D)
o it takes years and billions of rupees to make a new drug.
o but retail price of one tablet of that drug would be about 5 Rs.
o here, if the patent / copyright wasn't protected, then inventors will not invest in R&D.& then world will be deprived of better products.
· the GI (Geographical indicator)
o like Darjiling tea- only the tea made in Darjiling can be sold as 'Darjiling tea'
o otherwise, Britishers would also sell their tea claiming it to be 'Darjiling variety' and then our tea makers will face unfair compitition.
India's Problem with GI
· Pakis also claim GI for their Basmati Rice.
· TRIPS doesn't talk about trans-border GIs.
Time limit
· it came in force from 1st January 1995. and according to its provision
· Developed nations have to make such laws within 1 year.
· developing nations (like India) have to make such laws within 5 years.
· Least Developing countries (like Zimbabway/ Somalia) were given time limit upto 11 years (=2006) , but now the time is extended upto 2016 for pharmaceutical patent laws.
Apart from above 3 agreements (GATT, GATS, TRIPS) other 3 imp agreements are-(see this diagram)
What is the Use of these agreements? / What are the trading principles in WTO?
Without Discrimination
· MFN = Most favored nation
· In WTO, every nation is MFN
· So, if India grants a special favor to one nation – India will have to give that special favor to all member-nations of WTO.
· India will have to treat locals & foreign players equally. (e.g. you can’t have a system like Local businessman’s file will be cleared first or local man will be given preference in contract / tenders/ 3G frequency allocation.)
· Exception to this principle
a. Group of nations can form FTA = Free trade agreements
b. Country can give special favors to 3rd world / poor nations.
c. A nation can impose high import duty/ prevent entry of goods from a nation that’s doing unfair trade practices (like dumping* / Products dangerous to health**)
d. But there are strict conditions in WTO, before you can do above things.
i. *Dumping =China intentionally sends extremely cheap toys in india, so Indian toy makers collapse and toy market in India is captured by China.
ii. ** Products dangerous to health like China’s milk powder which had melamine.
Freer Trade (bringing down barriers in international trade) –
· WTO agreements try to abolish following things-
1. custom duties
2. Quota
3. subsidies
4. non-tariff barriers* (explained later.)
5. red tape
6. Artificially propped up exchange rates
a. like China intentionally keeps the value of Yuan low, so Americans will find it cheap to buy from China compared to other nations.)
Predictability
· When there are legally binding agreements between member nations of WTO- it means, even after change in Govt. (BJP / Congress / whatever) – the Indian policy of international trades won’t alter very much.
· This gives confidence of foreign investors because of
· Promise of stability (=Ceilings on customs tariffs.)
· policy environment is predictable.(= Transparency in trade rules)
· Equal treatment to Local players & foreign players. (=open access to markets)
· binding commitments (WTO keeps an eye on each nation – so Govt. can’t cheat. And if you cheat- you’ll have to pay fines.)
· And foreign investment helps the domestic economy as well.
Fair compitition
WTO agreements prevent unfair dumping, subsidies, government procurement
Economic Reforms
to implement WTO Agreements, the 3rd world nations have to change their policies. = reform
(remember the pre-LPG Era - quota,licence,inspctor raj)
What was before WTO?
- Before WTO, there was GATT.
- GATT was criticized for being 'Rich men's club'
- Everything in GATT used to work in a manner that'd suit the rich nations.
so WTO is better than GATT?
- Yes, because of following reasons.
1. WTO dispute resolution is quicker than GATT (disputes have to be solved within 18 months)
2. in GATT, the bad-nation was free to determine its own penalty.
3. but in WTO, bad nation has to pay high penalties for not following the rules.
4. GATT talked only about goods (physical products) . WTO talks about services (phone lines, BPO) & Intellectual property rights, along with those goods.
5. The working of WTO is more transparent.
6. In WTO, every nation has one vote only. Unlike IMF where rich nations have more voting powers.
India & WTO
first lets see what positive things happened then we talk of Doha Rounds and finally about What's India's problem in Doha rounds.
What did India Gain from WTO?
1. India got boom in exports because WTO gradually lowered Barriers internationally.
2. our export was only $33.22 billion in 1998-99.
3. right now India's exports are worth more than $100 billion
4. India won multilateral dispute settlement against such powerful economies as USA
5. because of TRIPS, India had to adopt international standards in Intellectual property rights.=
6. ↑ flow of Foreign investment & technology.
7. (because Foreigners established research labs/ manufacturing units in India & started selling their products here.)
8. Textiles boom (because MFA = Multilateral Fiber Agreement was scrapped under WTO's ATC=Agreement on Texttile clothings.) otherwise previously UK and other nation had put quantitative limits on Indian Cotton's Entry in their market.
DOHA
what is DOHA?
Doha is capital city of a small nation called Qatar.
4th Ministerial conference of WTO was held in that city in Nov.2001.
and they (member nations) started talking about some new agreements & issues- and the talks continued.. so this entire package is called 'Doha round of talks.' aka "DDA = Doha Development agenda."
Fifth Ministerial Conference was held in Cancun, Mexico in September 2003.
What were they talking in Doha?
Developing nations were complaining that they're facing difficulties in implementing WTO agreements.
so concessions were given to them.
1. SPS annex added under GATT (hope you saw the previous diagram of GATT annex)
a. SPS: Sanitary+ Phytosanitary Measures Agreement (on farm products)
b. Each nation can make its own Quality control rules
c. but they've to be scientific.
2. Earlier TRIPS (intellectual property rights) was strict.
a. now it was relaxed- and agreement changed saying that Laws should be made which supports existing medicines and public health interest at large.
items for new negotiations in Doha
1. Multilateral environmental agreements
2. Trade barriers on environmental goods & services
3. Fisheries subsidies =they harm environment, by encouraging too many fishermen to chase insufficient fish
the Doha conference failed because it ended with out any consensus.
· Members were divided on competition policy & transparency in Govt. procurements.
· First world blames India to be the main villain for failure of Doha talks.
What was India's Problem in Doha?
SSM=special safeguard mechanism
· its a measure designed to protect poor farmers by allowing countries to impose a special tariff on certain agricultural goods in the event of an import surge or price fall
· For example, if USA sends so much cheap corn to India, that price of Corn become 50 paisa per kg. then India can put tariff barrier (= increase import duty on American Corn) so that prices become high again.
· otherwise, no one would by Indian Corn, and our farmers will starve.
· United States arguing that the threshold had been set too low.
· (e.g. if it was decided that if price fall to 5 Rs. / kg corn, then India could do this. but US wants that India shouldn't be allowed to act, unless price of corn falls very low, something like 50 paisa / kg.!)
· India doesn't agree with US on this.
Apart from this, India has insisted on a large number of special products that would not be exposed to wider market opening
Like I said ago, more mobile companies are good. Because it increases employment. (you can be a representative of some mobile co. or if you’ve retail store, you can sell pre-paid cards etc. or you can start your own mobile repair shop and so on…)
But same is not true about agriculture sector, since 70% of India’s population depends on one way or another with the agriculture sector. So if cheap foreign items are allowed, then it’ll create huge problem for their employment. Its easy for each American farmer to produce tonnes of grain (and sell his produce cheap), because every farmer has huge farms, latest machinery, fertilizers & great seeds+ continuous water supply + subsidy. But same is not true in India.
However the problem of food-price inflation should also be taken into account. (= read editorials, you’ll face such topics in mains / essay.)
More trouble for India
NAMA= Non-agricultural market access negotiations
European Union has threatened to approach the World Trade Organisation (WTO) again if India does not remove the inter-state tariff disparities. “We want India to get rid of its taxes on wines and spirits in different states to allow easier access to European wines, failing which we will approach the WTO again,"
Criticism of WTO
Mostly comes from environment activities.
1. WTO promotes industries, MNC (Multi-national corporations)
a. But these MNCs sometimes are involved in bad things. Eg. They pay huge bribes to Burma’s military regime for operating the gas lines, nickel mines etc. and employ forced laborers in it.
2. The infrastructure boom because of WTO (more foreign companies making factories in India) – leads to habitat / bio-diversity loss & pollution etc.
3. Its hard to put barriers on imported items, thus the domestic industries face tough competition which sometimes ruins them. (e.g. its not possible for Indian Toy maker to compete with Chinese toys in retail price.) and yet not much the Indian Govt. can do. If they put some ban on it, then China will go to WTO, and WTO will impose heavy fines on India.
4. 3rd world has to open its market for first world product without much benefit in the reverse process. (=3rd world’s products lag in race in 1st world’s market.)
e.g. as you know in colonial era, when India was under British Rule, if we exported our Indian Textiles to Britain, they’d put huge import tax on it. Thus our cloths would become very expensive in their market. So Britishers would only buy locally made cloths from Manchester. This sort of ‘protectionism’ in old times (almost upto 1995) = their companies made lot of profit during that era & had lot profit invested in Research and technology, so currently their products will be technically and in quality far superior than ours. So even if there is no barrier today, British people will buy their product and not ours. This argument runs on the same line like of climate change. America allowed its factories to pollute the atmosphere and thus became a developed nation but now, it wants the developing nations to stop polluting the world & cut their emissions!
Timeline – Evolution of WTO
1944
· Bretton Woods conference,
· they wanted to make ITO (International Trade Org.) but it didn’t happen.
1947:
· GATT (General Agreement on Trade & Tariffs) established
· It was criticized as being 'RICH MEN'S CLUB'
1986
· Uruguay Round of Talks
· Service & Intellectual Property rights related topics included in the debate
· 1993, everyone agreed on it
1994 (Marrakesh, Morocco)
- All nations signed on agreement & WTO was established
2004
- 148 nations are members of WTO, covering 94% of international trade
Thursday, December 24, 2009
LPG
What is it?
in 1990-91-, Govt. was very low on cash, so they changed their economic policy, that's called LPG.
Why should I learn it?
1. Economy worth 100+M in Mains GS
2. International Relations worth 100+ Marks (GS paper 2 in Mains)
Whenever You want to understand india's Diplomatic relations with other nations, you've to see it pre & post cold war. same way
India's economic relation with others, you need to understand from pre & post LPG phase. that's why LPG is imp for international relation questions as well.
Why Govt. was low on cash?
1. First Gulf War = High crude oil prices
2. Fall of USSR (no one to help/ protect us)
3. Loss making Public sector undertakings (PSU)
4. Govt. was investing heavily in PSU, Development schemes, defence sectors.
5. these areas need lot money and it takes long gestation period after you see the recovery / benifit of that invested money.
6. + the usual Licence-Quota-Inspector raj. (explained later)
Govt. has to borrow a lot from inside and outside the nation to run itself.
We were so much out of money, that we could buy only 7 day's crude oil for the nation !
How did we get through it.
* We borrowed 7 billion Dollars from IBRD (Internation board of reconstruction & Development ) aka(also known as) world bank
* But for that, we had to obey World bank's conditions - they wanted us to change our economic policies.
* thus the concept of LPG came .
so LPG is one thing?
No its 3 different things L(Liberalistion)P (Privataisation)G (Globalisation)
Liberalization
what does that mean?
* to put end on rules / Regulation to control economy
* Open up various sectors of Economy
wasn't our economy opened before LPG?
* No we had Licence-Quota-Inspector Raj.
what is Licence Raj?
* you want to open a new mobile phone making company you need to get licence from Govt..(means u have to sought permission from govt)
Quota Raj
* even after you get the licence, you can't produce as many phones as you wish, you'll be given a quota
* say 1000 mobiles per month - you can't manufacture more than that.
Inspector Raj
* there will be a factory inspector, who will come and check how many phones you actually made,
* he gives you the certification only then you can take out your phones from warehouse to retail shops!
so when all 3 combine -its heavy delay, red tape and corruption.
Methods for Liberalisation .(Govt. used following)
End of Licence Raj (Liberlaisation Method #1)
*no more licence required for
* starting factory
* closing it or,
* deciding amount of production (= end of Quota Raj)
However you still need license for starting
1. Wine
2. Cigar
3. Hazardous Chem
4. Explosive
5. Drug-Pharma
6. Electronic
7. Aerospace
Dereservation of many things produced by Small scale industries
sectors reserved for PSU -are now only limited to(means only govt can manufacture such items)
1. Defence
2. Atom
3. Railways
= means pvt players can't open machine gun making factory.
Finacial Sector Reformed (Liberalistionzn method #2)
*RBI role reduced from regulator to facilitator
*Financial institutions (Stock market, Forex market etc) can take decision with out consulting RBI like
1. freedom to setup new Branches
2. generate resources from India- Abroad
Result = introduction of
1. pvt Sector Banks,
2. Foreign Institutionl investors
3. Merchant Bankers
4. Mutual / Pension Funds
Tax Reform (Liberalisation method #3)
* Earlier income tax was high, so people used every trick to evade it.
* Now tax rates were reduced, more people came in Tax net.
* Method to collect indirect Taxes - also simplified.
Forex Reform (Libzn method #4)
* to solve BOP(balance of payment) Crisis
* Rupee was Devalued = increased inflow of Forex
* Market to Determine Exchange Rate based on supply & demand of foreign currency. (earlier RBI was doing that)
Trade investment reform
* Quota barriers removed
* you don't have to pay high taxes on imported luxery items (gold watches / perfumes) like you had to do previously.
* no more import licence required except for Harardous materials.
Privatisation ( the 'P' of LPG)
Means Sheeding of Ownership / Management of Govt. owned companies.
How? = by Disinvestment = Privatization of PSU
by Govt. ,Selling of part of Equity(shares of psu) to Public
Benifit of privatization
1. increased finacial discipline
2. modernisation
3. increased performance of PSU by
4. pvt Capital
5. Managerial tech.
6. FDI incoming
Problem
1. instead of making Navaratna a Global Player,
2. income generated from Disinvestment used to fill Revenue deficit
NavRatna
* profit making PSUs were given Nav ratna statuts they get more autonomy in their work
* (Govt. doesn't interfere much when they're buying raw material or taking other decisions.)
Globalisation (the 'G' Of LPG)
its result of L+P
e.g. Outsourcing = Co. hires regular service from External Source (country ) due to Cheap - Skilled Labour Force
Globalisation is facilitated via WTO(world trade organisation)
What is the use of WTO?
1. to administrater Multilateral Trade Agrement
2. provide Equal opportunity to all in international market
3. Govt.s can't put arbitrary restriction on imports.
Criticism of Globalization / WTO
1. Major volume of International trade between Developed Nations
2. 3rd World has to open up for 1st world but their products can't get access to 1st world.
How LPG changed India's international relations?
* Before LPG we were doing 'Import Substitution' strategy.
* Means Govt. would either prevent entry of foreign players in our local market or put so much tax on imported items that we can't afford to buy it.
* Import substitution is when we'll (or have to) buy Bajaj Scooter even when Japanese Honda (foreigner) has a cheaper / better vehicle to offer. (but Honda prevented by Govt. using above methods.)
* this sounds great from patriotic point of view,but citizens are denied all luxeries of life, even when they want to enjoy it.
* Result of Import Substion strategy was that we were not importing any luxery electronic items , walkman, VHS players, Stereos, cars etcs from Japan, Taiwan, America, etc.
* thus we did not have any high business relations with ASEAN or any other nation.
* After LPG, our market was flooded with cheap electronic goodies. Our trade relations with Japan, Singapore, ASEAN, & America improved.
* Once Established, the Economic ties are harder to break than diplomatic / military pacts.
* Thus more economic relations we have with the world= more friends we make.
How LPG changed your life?
* Today you're able to surf internet, buy computer, mobile phones,
* have dozens of toothpastes, cars, bikes to select from...
* all that thanks to LPG.
By Mrunal patel
in 1990-91-, Govt. was very low on cash, so they changed their economic policy, that's called LPG.
Why should I learn it?
1. Economy worth 100+M in Mains GS
2. International Relations worth 100+ Marks (GS paper 2 in Mains)
Whenever You want to understand india's Diplomatic relations with other nations, you've to see it pre & post cold war. same way
India's economic relation with others, you need to understand from pre & post LPG phase. that's why LPG is imp for international relation questions as well.
Why Govt. was low on cash?
1. First Gulf War = High crude oil prices
2. Fall of USSR (no one to help/ protect us)
3. Loss making Public sector undertakings (PSU)
4. Govt. was investing heavily in PSU, Development schemes, defence sectors.
5. these areas need lot money and it takes long gestation period after you see the recovery / benifit of that invested money.
6. + the usual Licence-Quota-Inspector raj. (explained later)
Govt. has to borrow a lot from inside and outside the nation to run itself.
We were so much out of money, that we could buy only 7 day's crude oil for the nation !
How did we get through it.
* We borrowed 7 billion Dollars from IBRD (Internation board of reconstruction & Development ) aka(also known as) world bank
* But for that, we had to obey World bank's conditions - they wanted us to change our economic policies.
* thus the concept of LPG came .
so LPG is one thing?
No its 3 different things L(Liberalistion)P (Privataisation)G (Globalisation)
Liberalization
what does that mean?
* to put end on rules / Regulation to control economy
* Open up various sectors of Economy
wasn't our economy opened before LPG?
* No we had Licence-Quota-Inspector Raj.
what is Licence Raj?
* you want to open a new mobile phone making company you need to get licence from Govt..(means u have to sought permission from govt)
Quota Raj
* even after you get the licence, you can't produce as many phones as you wish, you'll be given a quota
* say 1000 mobiles per month - you can't manufacture more than that.
Inspector Raj
* there will be a factory inspector, who will come and check how many phones you actually made,
* he gives you the certification only then you can take out your phones from warehouse to retail shops!
so when all 3 combine -its heavy delay, red tape and corruption.
Methods for Liberalisation .(Govt. used following)
End of Licence Raj (Liberlaisation Method #1)
*no more licence required for
* starting factory
* closing it or,
* deciding amount of production (= end of Quota Raj)
However you still need license for starting
1. Wine
2. Cigar
3. Hazardous Chem
4. Explosive
5. Drug-Pharma
6. Electronic
7. Aerospace
Dereservation of many things produced by Small scale industries
sectors reserved for PSU -are now only limited to(means only govt can manufacture such items)
1. Defence
2. Atom
3. Railways
= means pvt players can't open machine gun making factory.
Finacial Sector Reformed (Liberalistionzn method #2)
*RBI role reduced from regulator to facilitator
*Financial institutions (Stock market, Forex market etc) can take decision with out consulting RBI like
1. freedom to setup new Branches
2. generate resources from India- Abroad
Result = introduction of
1. pvt Sector Banks,
2. Foreign Institutionl investors
3. Merchant Bankers
4. Mutual / Pension Funds
Tax Reform (Liberalisation method #3)
* Earlier income tax was high, so people used every trick to evade it.
* Now tax rates were reduced, more people came in Tax net.
* Method to collect indirect Taxes - also simplified.
Forex Reform (Libzn method #4)
* to solve BOP(balance of payment) Crisis
* Rupee was Devalued = increased inflow of Forex
* Market to Determine Exchange Rate based on supply & demand of foreign currency. (earlier RBI was doing that)
Trade investment reform
* Quota barriers removed
* you don't have to pay high taxes on imported luxery items (gold watches / perfumes) like you had to do previously.
* no more import licence required except for Harardous materials.
Privatisation ( the 'P' of LPG)
Means Sheeding of Ownership / Management of Govt. owned companies.
How? = by Disinvestment = Privatization of PSU
by Govt. ,Selling of part of Equity(shares of psu) to Public
Benifit of privatization
1. increased finacial discipline
2. modernisation
3. increased performance of PSU by
4. pvt Capital
5. Managerial tech.
6. FDI incoming
Problem
1. instead of making Navaratna a Global Player,
2. income generated from Disinvestment used to fill Revenue deficit
NavRatna
* profit making PSUs were given Nav ratna statuts they get more autonomy in their work
* (Govt. doesn't interfere much when they're buying raw material or taking other decisions.)
Globalisation (the 'G' Of LPG)
its result of L+P
e.g. Outsourcing = Co. hires regular service from External Source (country ) due to Cheap - Skilled Labour Force
Globalisation is facilitated via WTO(world trade organisation)
What is the use of WTO?
1. to administrater Multilateral Trade Agrement
2. provide Equal opportunity to all in international market
3. Govt.s can't put arbitrary restriction on imports.
Criticism of Globalization / WTO
1. Major volume of International trade between Developed Nations
2. 3rd World has to open up for 1st world but their products can't get access to 1st world.
How LPG changed India's international relations?
* Before LPG we were doing 'Import Substitution' strategy.
* Means Govt. would either prevent entry of foreign players in our local market or put so much tax on imported items that we can't afford to buy it.
* Import substitution is when we'll (or have to) buy Bajaj Scooter even when Japanese Honda (foreigner) has a cheaper / better vehicle to offer. (but Honda prevented by Govt. using above methods.)
* this sounds great from patriotic point of view,but citizens are denied all luxeries of life, even when they want to enjoy it.
* Result of Import Substion strategy was that we were not importing any luxery electronic items , walkman, VHS players, Stereos, cars etcs from Japan, Taiwan, America, etc.
* thus we did not have any high business relations with ASEAN or any other nation.
* After LPG, our market was flooded with cheap electronic goodies. Our trade relations with Japan, Singapore, ASEAN, & America improved.
* Once Established, the Economic ties are harder to break than diplomatic / military pacts.
* Thus more economic relations we have with the world= more friends we make.
How LPG changed your life?
* Today you're able to surf internet, buy computer, mobile phones,
* have dozens of toothpastes, cars, bikes to select from...
* all that thanks to LPG.
By Mrunal patel
Wednesday, December 23, 2009
Rangnathan Mishra committee
It s a very nice report .. infact ..
To understand this report first we should be aware of
1> mandal Commisson Report ( Read DD Basu and Wizard Polity)
2> TMA Pai Case and Islamia University case
So basically our Consti has not defined what "backward" means .. in Art 16(4) We say ..State may reserve any post to any backward class of citizen ..
Now please note two things
a> The word "backward"
b> The word "Class"( not caste)
So in this background Mandal commison sat to identify what exactly the word "Backward" means ?
The commison said " backward means socially and economically backward "
and In Hindus we can see caste as a class but in other socities which has no caste indicators like hold of land , education , trade etc can determine the backwardness
Now what Ranganath Commison has said on this
1. No discrimination whatsoever between the majority community and the minorities;
and, therefore, the criteria now applied for this purpose to the majority community —
whatever that criteria may be – must be unreservedly applied also to all the minorities.
2.recommend that all those classes, sections and groups among the minorities should
be treated as backward whose counterparts in the majority community are regarded as
backward under the present scheme of things.
3.social and vocational groups among the minorities who but for their religious identity would have been covered by the present net of Scheduled Castes should be
unquestionably treated as socially backward, irrespective of whether the religion of
those other communities recognises the caste system or not.
4.The minorities whose counterparts in the majority community are at present covered by the net of Scheduled Tribes should also be included in that net; and also,
more specifically, members of the minority communities living in any Tribal Area
from pre-independence days should be so included irrespective of their ethnic
characteristics.
which originally restricted the Scheduled Caste net to the Hindus and later opened it to Sikhs and Buddhists, thus still excluding from its purview the Muslims,Christians, Jains and Parsis, etc.
___________________________________________________________________________________
TMA Pai and Islamia case
Here judicary has given two counter statements .. regarding the admissons to Unaided collegs ..
The Art 30 says " establish and administer educational institutions of their choice"
Please note the word used is "of their choice" ==> professional also ...!!
N also this article gives the right to property for minorites .
Plese read these case before ..
RM commison says
1.Article 30 of the Constitution has become quite uncertain, complicated and diluted due to their varied and sometimes conflicting judicial interpretations, we recommend that a comprehensive law should be enacted without delay to detail all aspects of minorities, educational rights under that provision with a view to reinforcing its original dictates in letter and spirit.
2.National Minority Educational Institute Commission should be amended to make it wide-based in its composition, powers, functions and responsibilities and to enable it to work as the watchdog for a meticulous enforcement of all aspects of minorities, educational rights under the Constitution.
3.in minority educational institutions has, in the interest of national integration, been restricted to about 50%, thus virtually earmarking the remaining 50% or so for the majority community – we strongly recommend that, by the same analogy and for the same purpose, at least 15% seats in all non-minority educational institutions should be earmarked by law for the minorities as follows:-
4.(a) The break up within the recommended 15% earmarked seats in institutions shall be 10% for the Muslims (commensurate with their 73% share of the former in the total minority population at the national level) and the remaining 5 % for the other minorities.
(b) Minor adjustments inter se can be made in the 15% earmarked seats. In the case of non-availability of Muslim candidates to fill 10% earmarked seats, the remaining vacancies may be given to the other minorities if their members are available over and above their share of 5%; but in no case shall any seat within the recommended 15% go to the majority community.
(c) As is the case with the Scheduled Castes and Scheduled Tribes at present those minority community candidates who can compete with others and secure admission on their own merit shall not be included in these 15% earmarked seats.
5.backward sections among all the minorities, we recommend that the concessions now available in terms of lower eligibility criteria for admission and lower rate of fee, now available to the Scheduled Castes and Scheduled Tribes, should be extended also to such sections among the minorities.
______________________________ ____________
For Muslims
Select institutions in the country like the Aligarh Muslim University and the Jamia Millia Islamia should be legally given a special responsibility to promote education at all levels to Muslim students by taking all possible steps for this purpose. At least one such institution should be selected for this purpose in each of those states and Union Territories which has a substantial Muslim population.
Lingusitic minorites
(a) The law relating to the Linguistic Minorities Commissioner should be amended so as to make this office responsible for ensuring full implementation of all the relevant Constitutional provisions for the benefit of each such minority in all the States and Union Territories.
(b) The three-language formula should be implemented everywhere in the country making it compulsory for the authorities to includes in it the mother-tongue of every child – including, especially, Urdu and Punjabi – and all necessary facilities, financial and logistic, should be provided by the State for education in accordance with this dispensation.
______________________________ _______
1.8.4% of the total OBC population, in the 27% OBC quota an 8.4% sub-quota should be earmarked for the minorities with an internal break-up of 6% for the Muslims (commensurate with their 73% share in the total minority population at the national level) and 2.4% for the other minorities with minor adjustment inter se in accordance with population of various minorities in various States & UT
2. which originally restricted the Scheduled Caste net to the Hindus and later opened it to Sikhs and Buddhists, thus still excluding from its purview the Muslims, Christians, Jains and Parsis, etc.
3. at as the Constitution of India guarantees freedom of conscience and religious freedom as a Fundamental Right, once a person has been included in a Scheduled Caste list a willful change of religion on his part should not effect adversely his or her Scheduled Caste status.
To understand this report first we should be aware of
1> mandal Commisson Report ( Read DD Basu and Wizard Polity)
2> TMA Pai Case and Islamia University case
So basically our Consti has not defined what "backward" means .. in Art 16(4) We say ..State may reserve any post to any backward class of citizen ..
Now please note two things
a> The word "backward"
b> The word "Class"( not caste)
So in this background Mandal commison sat to identify what exactly the word "Backward" means ?
The commison said " backward means socially and economically backward "
and In Hindus we can see caste as a class but in other socities which has no caste indicators like hold of land , education , trade etc can determine the backwardness
Now what Ranganath Commison has said on this
1. No discrimination whatsoever between the majority community and the minorities;
and, therefore, the criteria now applied for this purpose to the majority community —
whatever that criteria may be – must be unreservedly applied also to all the minorities.
2.recommend that all those classes, sections and groups among the minorities should
be treated as backward whose counterparts in the majority community are regarded as
backward under the present scheme of things.
3.social and vocational groups among the minorities who but for their religious identity would have been covered by the present net of Scheduled Castes should be
unquestionably treated as socially backward, irrespective of whether the religion of
those other communities recognises the caste system or not.
4.The minorities whose counterparts in the majority community are at present covered by the net of Scheduled Tribes should also be included in that net; and also,
more specifically, members of the minority communities living in any Tribal Area
from pre-independence days should be so included irrespective of their ethnic
characteristics.
which originally restricted the Scheduled Caste net to the Hindus and later opened it to Sikhs and Buddhists, thus still excluding from its purview the Muslims,Christians, Jains and Parsis, etc.
___________________________________________________________________________________
TMA Pai and Islamia case
Here judicary has given two counter statements .. regarding the admissons to Unaided collegs ..
The Art 30 says " establish and administer educational institutions of their choice"
Please note the word used is "of their choice" ==> professional also ...!!
N also this article gives the right to property for minorites .
Plese read these case before ..
RM commison says
1.Article 30 of the Constitution has become quite uncertain, complicated and diluted due to their varied and sometimes conflicting judicial interpretations, we recommend that a comprehensive law should be enacted without delay to detail all aspects of minorities, educational rights under that provision with a view to reinforcing its original dictates in letter and spirit.
2.National Minority Educational Institute Commission should be amended to make it wide-based in its composition, powers, functions and responsibilities and to enable it to work as the watchdog for a meticulous enforcement of all aspects of minorities, educational rights under the Constitution.
3.in minority educational institutions has, in the interest of national integration, been restricted to about 50%, thus virtually earmarking the remaining 50% or so for the majority community – we strongly recommend that, by the same analogy and for the same purpose, at least 15% seats in all non-minority educational institutions should be earmarked by law for the minorities as follows:-
4.(a) The break up within the recommended 15% earmarked seats in institutions shall be 10% for the Muslims (commensurate with their 73% share of the former in the total minority population at the national level) and the remaining 5 % for the other minorities.
(b) Minor adjustments inter se can be made in the 15% earmarked seats. In the case of non-availability of Muslim candidates to fill 10% earmarked seats, the remaining vacancies may be given to the other minorities if their members are available over and above their share of 5%; but in no case shall any seat within the recommended 15% go to the majority community.
(c) As is the case with the Scheduled Castes and Scheduled Tribes at present those minority community candidates who can compete with others and secure admission on their own merit shall not be included in these 15% earmarked seats.
5.backward sections among all the minorities, we recommend that the concessions now available in terms of lower eligibility criteria for admission and lower rate of fee, now available to the Scheduled Castes and Scheduled Tribes, should be extended also to such sections among the minorities.
______________________________ ____________
For Muslims
Select institutions in the country like the Aligarh Muslim University and the Jamia Millia Islamia should be legally given a special responsibility to promote education at all levels to Muslim students by taking all possible steps for this purpose. At least one such institution should be selected for this purpose in each of those states and Union Territories which has a substantial Muslim population.
Lingusitic minorites
(a) The law relating to the Linguistic Minorities Commissioner should be amended so as to make this office responsible for ensuring full implementation of all the relevant Constitutional provisions for the benefit of each such minority in all the States and Union Territories.
(b) The three-language formula should be implemented everywhere in the country making it compulsory for the authorities to includes in it the mother-tongue of every child – including, especially, Urdu and Punjabi – and all necessary facilities, financial and logistic, should be provided by the State for education in accordance with this dispensation.
______________________________ _______
1.8.4% of the total OBC population, in the 27% OBC quota an 8.4% sub-quota should be earmarked for the minorities with an internal break-up of 6% for the Muslims (commensurate with their 73% share in the total minority population at the national level) and 2.4% for the other minorities with minor adjustment inter se in accordance with population of various minorities in various States & UT
2. which originally restricted the Scheduled Caste net to the Hindus and later opened it to Sikhs and Buddhists, thus still excluding from its purview the Muslims, Christians, Jains and Parsis, etc.
3. at as the Constitution of India guarantees freedom of conscience and religious freedom as a Fundamental Right, once a person has been included in a Scheduled Caste list a willful change of religion on his part should not effect adversely his or her Scheduled Caste status.
Tuesday, December 22, 2009
Chronology of India’s freedom struggle
Vandana Jain
Time
Event
1905
Partition of Bengal annouced to come in force from Oct 15 1906.
1906 DEC 31
Muslim League founded at Dacca.
1908 April 30
Khudiram Bose executed.
1908 July 22
Tilak sentenced to six years jail on charges of sedition.
1909 May 21
Minto Morley reforms Of Indian Council Act 1909
1911
The coronation or Delhi Durbar held at which the Partition of Bengal was cancelled.
1912
Delhi becomes the new capital of India.
1912 Dec 23
Bomb thrown on Lord Hardinge on his state entry in India.
1913 Nov 1
Ghadar Party formed at San franscisco.
1914 June 16
B G Tilak Realeased from Jail.
1914 Aug 4
Out Break of the First World War.
1914 Sep 29
Komagatu ship reaches Budge Budge
1915 Jan
Gandhiji arrives in Delhi.
1915 Feb 19
Death of Gopal Krishna Gokhale.
1916 April 28
Tilak found the Home Rule League with its HQ at Poona.
1916 Sep 25
Another Home Rule League started by Annie Besant
1917 April
Gandhi Launches the Champaran Campaign in Bihar to focus attention on the grievances of indigo planters.
1917 Aug 20
The Secretary of State for India, Montagu, declares that the goal of British Govt in Ind is the introduction of Responsible Govt.
1918
Beggining of Trade Union Movement In India.
1918 April
Rowlatt Committee Submits its Report. Rowlatt Bill introduces in Feb 1919.
1919 April 6
All India Hartal over Rowlatt Bill.
1919 April 13
Jallianwala Bagh Tragedy.
1919 Dec 5
The House of Commons Passed the Montagu Chelmsford Reform or the Govt of India Act,1919. The new reforms under this act came in peration in 1921.
1920
First Meeting of the All India Trade Union Congress.(Narain Malhar Joshi)
1920 Dec
The INC adopts the Non Cooperation Resolution (Started in Aug 31 1920)
1920-22
The Non coperation Movement suspended on Feb 11 12, after the voilent incidents at Chauri Chaura on Feb 5 1922.
1922 Aug
Moplah rebellion on the Malabar Coast.
1923 Jan 1
Swarajist Party formed by Motilal Nehru and others.
1924
The Communist Party of India starts its activities first at Kanpur.
1925 Aug
Kakori Train Conspiracy
1927 Nov 8
The British PM Annouces the appointment of the Simon Commission to suggest future constitutional reforms in India.Simon Commission arrives in Bombay on Feb 3 1928 and all India Hartal.Lala Lajpat Rai assaulted by police at Lahore.
1928
Nehru Report Recommends principles for the new constitution of India . All Parties Conference considers the Nehru Report Aug 28
1928 nov 17
Death of Lala Lajpat Rai.
1929
Sarda Act Passed prohibiting marriage of girls below 14 and boys below 18 of age with effect from 1930.
1929 Mar 9
All Parties Muslim Conference formulates the Forteen points under the leadership Of Jinnah.
1929 April 8
Bhagat Singh and Batukeshwar Dutt drops bombs on Central Legislative Assembly.
1929 Oct 31
Lord Irwin's Announcement that goal of British policy in India was the grant of Dominion status.
1929 Dec 31
the Lahore session of INC adopts the goal of complete independece-poorna Swaraj for India.
1930 Jan 1
Nehru hoists the tricolour of Indian Independence on the banks of Ravi at Lahore.
1930 Jan 26
First Independence Day Observed.
1930 Feb 14
The working committee of the INC meets at Sabarmati and passes the civil Disobedience resolution.
1930 March 12
Gandhi Launches the Civil Disobedience movement with his epic Dandi March (March 12 to April 5),First phase of the C D Movement March 12 1930 to March 5 1931.
1930 Nov 30
First round table conference begins in London to consider the report of Simon.
1931 March 5
Gandhi Irwin Pact signed , Civil Dosobedience Movement Suspended.
1931 March 23
Bhagat Sing, Sukh Dev and Rajguru Executed.
1931 Sep 7
Second Round Table Conference.
1931 Dec 28
1930 Mar 12 Gandhi Launches the Civil Disobedience movement with his epic Dandi March (March 12 to April 5),First phase of the C D Movement March 12 1930 to March 5 1931.
1932 Jan 4
Gandhiji Arrested and imprisoned without Trial.
1932 Aug 16
British Prime minister Pamsay Macdonald annouces his infamous "Communal Awards".
1932 Sep 20
Gandhiji in jail begins the epic fast unto death against teh Communal Awards and the fat on sep 26 after the Poona Pact.
1932 Nov 17
The IIrd RTC begins in London.
1933 May 9
Gandhiji released from prison as he begins the fast for self purification .INC suspends C D Movement but Authorizes Satyagraha by ndividuals.
1934
Gandhiji withdraws from active politics and and Devote himself to Constructive programmes.
1935 Aug 4
The GOvt India Act Passed.
1937
Elections held in India Under the Act of 1935 (Feb 1937).The INC contest election and forms ministries in 7 provinces.
1938 feb 19-20
Haripura session of INC Subhas Chandra Bose elected Congress President.
1939 March 10-12
Tripura session of INC.
1939 April
Subhash Chandra Bose resignd as the president of INC.
1939 Sep 3
Second World War.
1939 Oct 27
the INC ministries in Province.
1939 Nov 5
The congress ministries in province resign in protest against the war policy of British Govt.
1939 Dec 22
The Muslim League observes the resignation of the congress minister as the Deliverance Day.
1940 March
Lahore session of the Muslim League passes the Pakistan Resolution.
1940 Aug 10
Vice roy Linlithgow annouces the August Offer.
1940 Aug 18-22
The congress working committe rejects the August Offer.
1941 Jauary 17
Subhas Chandra bose escapes from India Arrives in Berlin (March 28).
1942 March 11
Churchill annonces the Cripps Mission
1942 Aug 7-8
The INC meets in Bombay Adopts Quit India resolution.8
1942 Aug 9
Gandhiji and other Congress leaders arrested.
1942 Aug 11
Quit India Movement begins the great August Uprising.
1942 Sep 1
Subhas Chandra Bose establish the Indian National army (Azad Hind Fauz)
1943 oct 21
Subhash Chandra bose proclaims the formation of Provisional Government of free India.
1943 Dec
Karachi session of the Muslim League adopts the slogan Divide and Quit.
1944 June 25
Wavell calls Simla Conference in a bid to form the Executive Council of Indian Political leaders.
1946 Feb 18
Mutiny of the Indian Naval Ratings in Bombay.
1946 March 15
British P M Attlee annonces Cabinet Mission to propose new solution to the Indian Deadlock Cabinet Mission Arrives in New Delhi (March 14) issue proposal (May 16)
946 July 6
Jawaharlal Nehru takes over as Congress President.
1946 Aug 6
Wavell invites Nehru to form an Interim Govt Interim Governmnet takes office.(Sep 2).
1946 Dec 9
First session of Constituent Assebly starts .Muslim League boycotts it.
1947 Feb 20
British PM Atlee Declared that the british govt would leave India not later than june 1948.
1947 March 24
Lord Mountbatten the last British Viceroy and Governor Genral of India sworn in (March 24 1947 to june 21 1948).
1947 June 3
Mountbatten Plan for the partition for the partition of India and the annoucement (june 4) that the transfer of power will take place on Aug 15.
1947 Aug 15
India wins Freedom.
Time
Event
1905
Partition of Bengal annouced to come in force from Oct 15 1906.
1906 DEC 31
Muslim League founded at Dacca.
1908 April 30
Khudiram Bose executed.
1908 July 22
Tilak sentenced to six years jail on charges of sedition.
1909 May 21
Minto Morley reforms Of Indian Council Act 1909
1911
The coronation or Delhi Durbar held at which the Partition of Bengal was cancelled.
1912
Delhi becomes the new capital of India.
1912 Dec 23
Bomb thrown on Lord Hardinge on his state entry in India.
1913 Nov 1
Ghadar Party formed at San franscisco.
1914 June 16
B G Tilak Realeased from Jail.
1914 Aug 4
Out Break of the First World War.
1914 Sep 29
Komagatu ship reaches Budge Budge
1915 Jan
Gandhiji arrives in Delhi.
1915 Feb 19
Death of Gopal Krishna Gokhale.
1916 April 28
Tilak found the Home Rule League with its HQ at Poona.
1916 Sep 25
Another Home Rule League started by Annie Besant
1917 April
Gandhi Launches the Champaran Campaign in Bihar to focus attention on the grievances of indigo planters.
1917 Aug 20
The Secretary of State for India, Montagu, declares that the goal of British Govt in Ind is the introduction of Responsible Govt.
1918
Beggining of Trade Union Movement In India.
1918 April
Rowlatt Committee Submits its Report. Rowlatt Bill introduces in Feb 1919.
1919 April 6
All India Hartal over Rowlatt Bill.
1919 April 13
Jallianwala Bagh Tragedy.
1919 Dec 5
The House of Commons Passed the Montagu Chelmsford Reform or the Govt of India Act,1919. The new reforms under this act came in peration in 1921.
1920
First Meeting of the All India Trade Union Congress.(Narain Malhar Joshi)
1920 Dec
The INC adopts the Non Cooperation Resolution (Started in Aug 31 1920)
1920-22
The Non coperation Movement suspended on Feb 11 12, after the voilent incidents at Chauri Chaura on Feb 5 1922.
1922 Aug
Moplah rebellion on the Malabar Coast.
1923 Jan 1
Swarajist Party formed by Motilal Nehru and others.
1924
The Communist Party of India starts its activities first at Kanpur.
1925 Aug
Kakori Train Conspiracy
1927 Nov 8
The British PM Annouces the appointment of the Simon Commission to suggest future constitutional reforms in India.Simon Commission arrives in Bombay on Feb 3 1928 and all India Hartal.Lala Lajpat Rai assaulted by police at Lahore.
1928
Nehru Report Recommends principles for the new constitution of India . All Parties Conference considers the Nehru Report Aug 28
1928 nov 17
Death of Lala Lajpat Rai.
1929
Sarda Act Passed prohibiting marriage of girls below 14 and boys below 18 of age with effect from 1930.
1929 Mar 9
All Parties Muslim Conference formulates the Forteen points under the leadership Of Jinnah.
1929 April 8
Bhagat Singh and Batukeshwar Dutt drops bombs on Central Legislative Assembly.
1929 Oct 31
Lord Irwin's Announcement that goal of British policy in India was the grant of Dominion status.
1929 Dec 31
the Lahore session of INC adopts the goal of complete independece-poorna Swaraj for India.
1930 Jan 1
Nehru hoists the tricolour of Indian Independence on the banks of Ravi at Lahore.
1930 Jan 26
First Independence Day Observed.
1930 Feb 14
The working committee of the INC meets at Sabarmati and passes the civil Disobedience resolution.
1930 March 12
Gandhi Launches the Civil Disobedience movement with his epic Dandi March (March 12 to April 5),First phase of the C D Movement March 12 1930 to March 5 1931.
1930 Nov 30
First round table conference begins in London to consider the report of Simon.
1931 March 5
Gandhi Irwin Pact signed , Civil Dosobedience Movement Suspended.
1931 March 23
Bhagat Sing, Sukh Dev and Rajguru Executed.
1931 Sep 7
Second Round Table Conference.
1931 Dec 28
1930 Mar 12 Gandhi Launches the Civil Disobedience movement with his epic Dandi March (March 12 to April 5),First phase of the C D Movement March 12 1930 to March 5 1931.
1932 Jan 4
Gandhiji Arrested and imprisoned without Trial.
1932 Aug 16
British Prime minister Pamsay Macdonald annouces his infamous "Communal Awards".
1932 Sep 20
Gandhiji in jail begins the epic fast unto death against teh Communal Awards and the fat on sep 26 after the Poona Pact.
1932 Nov 17
The IIrd RTC begins in London.
1933 May 9
Gandhiji released from prison as he begins the fast for self purification .INC suspends C D Movement but Authorizes Satyagraha by ndividuals.
1934
Gandhiji withdraws from active politics and and Devote himself to Constructive programmes.
1935 Aug 4
The GOvt India Act Passed.
1937
Elections held in India Under the Act of 1935 (Feb 1937).The INC contest election and forms ministries in 7 provinces.
1938 feb 19-20
Haripura session of INC Subhas Chandra Bose elected Congress President.
1939 March 10-12
Tripura session of INC.
1939 April
Subhash Chandra Bose resignd as the president of INC.
1939 Sep 3
Second World War.
1939 Oct 27
the INC ministries in Province.
1939 Nov 5
The congress ministries in province resign in protest against the war policy of British Govt.
1939 Dec 22
The Muslim League observes the resignation of the congress minister as the Deliverance Day.
1940 March
Lahore session of the Muslim League passes the Pakistan Resolution.
1940 Aug 10
Vice roy Linlithgow annouces the August Offer.
1940 Aug 18-22
The congress working committe rejects the August Offer.
1941 Jauary 17
Subhas Chandra bose escapes from India Arrives in Berlin (March 28).
1942 March 11
Churchill annonces the Cripps Mission
1942 Aug 7-8
The INC meets in Bombay Adopts Quit India resolution.8
1942 Aug 9
Gandhiji and other Congress leaders arrested.
1942 Aug 11
Quit India Movement begins the great August Uprising.
1942 Sep 1
Subhas Chandra Bose establish the Indian National army (Azad Hind Fauz)
1943 oct 21
Subhash Chandra bose proclaims the formation of Provisional Government of free India.
1943 Dec
Karachi session of the Muslim League adopts the slogan Divide and Quit.
1944 June 25
Wavell calls Simla Conference in a bid to form the Executive Council of Indian Political leaders.
1946 Feb 18
Mutiny of the Indian Naval Ratings in Bombay.
1946 March 15
British P M Attlee annonces Cabinet Mission to propose new solution to the Indian Deadlock Cabinet Mission Arrives in New Delhi (March 14) issue proposal (May 16)
946 July 6
Jawaharlal Nehru takes over as Congress President.
1946 Aug 6
Wavell invites Nehru to form an Interim Govt Interim Governmnet takes office.(Sep 2).
1946 Dec 9
First session of Constituent Assebly starts .Muslim League boycotts it.
1947 Feb 20
British PM Atlee Declared that the british govt would leave India not later than june 1948.
1947 March 24
Lord Mountbatten the last British Viceroy and Governor Genral of India sworn in (March 24 1947 to june 21 1948).
1947 June 3
Mountbatten Plan for the partition for the partition of India and the annoucement (june 4) that the transfer of power will take place on Aug 15.
1947 Aug 15
India wins Freedom.
Pubad qustion Analysis
Theory
1. "Not to be comparative is to be naively parochial" (Riggs). Comment.
2. Taylor’s scientific management ignored social and psychological factors. Comment.
3.Analyze McGregor's Theory X and Theory Y. Do you agree with the view that with every passing year, McGregor's message has become more relevant and more important? Substantiate your answer. 60
4.calling woodrow wilson, the father of public administration is doing injustice to equally or even more eminent contributions made prior to him. comment.
5.mary parker follett was far ahead of her times. discuss.
truly comparitive administration studies are empirical, nomothetic & ecological. (riggs) in this perspective, examine the current status of comparitive public administration.
6.Critically examine the Classical Science of Administration with special reference to its criticism by Dwight Waldo and Robert Dahl. 60
7.The main problem with Mary Parker Follett’s work is that her idealism is showing. Explain.
8.If public administration is to play a major legitimizing role in governing our complex society, it needs to be more fully conceptualized. Discuss.
9. "No science of public administration is possible unless.... there is a body of
comparative studies from which it may be possible to discover principles and
10."Administrative question are not political questions." Discuss.
11."Organisation is a system of consciously coordinated activities or forces of two or more persons." Comment.
12. In Follett's view, "authority belongs to the job and stays with the job."
13. "The failure of classical science of administration lies in its capacity to
confront theory with evidence." Discuss.
14.Give an account of major landmarks in the growth of the discipline of public administration in the 20th century. What are the possible trends in its growth in the first decades of 21st century? (60)
15. "Weberian model of bureaucracy lacks empirical validity when applied to modern democratic administration." Examine.
16. "The new public administration (NPM) is an incarnation of a new model of public sector management in response of the challenge of liberalization, international competitiveness and technological changes". Explain.
17. How did Fred W. Riggs conceptualize the interactions between administration systems and their environment? (60)
18. Compare Abraham Maslow's theory of motivation and Herzberg's motivation-hygiene theory. Do you think that they are universally applicable? If so, why? If not, why not? (60)
19. Describe the evolution of the discipline of public administration with special emphasis on post - 1970 developments. (60)
20. Explain the contribution of George Elton Mayo to the development of the Human relations school. How did behavioral scientist modify his basic findings? (60)
21. Critically examine the approach and methodology adopted by Fred W. Riggs in his study of prismatic and sala societies. What is valid-content of Raj Krishna's criticism of refraction ? 60
22) "Political environment conditions administrative system." - (F. W Riggs) 20
23) "A science of administration would be a body of for mal statements describing invariant relationships between measurable objects, units, or elements. 24.Unquestionably, administrative research has produced definite precepts and hypotheses that are applicable to concrete situations."(Fritz Morstein Marx) 20
25. "... The paradigms of public administration may be understood in terms of locus an focus." - Golembiewski
In the light of the above statement describe the "five-paradigms" of Nicholas Henry about the evolution of the discipline of public administration. 60
26."Administrative efficiency is enhanced by keeping at a minimum the number of organizational levels through which a matter must pass before it is acted upon." - (Herbert A. Simon) 20
27. "a more thorough consideration leads to the understanding that communication, authority, specialisation and purpose are all aspects comprehended in coordination." - (Chester I. Barnard) 20
28."Political environment conditions administrative system." - (F. W Riggs) 20
29. "... The paradigms of public administration may be understood in terms of locus an focus." - Golembiewski, In the light of the above statement describe the "five-paradigms" of Nicholas Henry about the evolution of the discipline of public administration. 60
30. Critically examine the approach and methodology adopted by Fred W. Riggs in his study of prismatic and sala societies. What is valid-content of Raj Krishna's criticism of refraction ? 60
31 “ ….. non –western states often , If not always , have unbalance politics , but these may not necessarily be bureaucratic politics.” Discuss.
32. From Woodrow Wilson to Herbert Simon most writers on public administration have taken the achievement of efficiency as the central objective. Justify the statement with reference to the work of major writers. 60
33) Which of the model(s) in development administration is / are characterised by ‘ Selectivism’ , ‘ Attainment’ and ‘Poly-functionalism’ ? Describe the corresponding theoretical roots and attributes.
34. It is said that “ the perspective of public administration ,developed over a century , with a tradition of management of Public institution and services has received a jolt from the novelty of New Public Management”.
Bring out the core values,approaches and assumptions of traditional public administration and show how the new Public Management has attempted to change or retain them , and to what extent.60
35.“ The Field of Public Administration is a field of business.”( Woodrow Wilson )
36.“ New Public Administration is …… a revolution or radicalism in words , and ( at best ) status –quo in skills or technologies.”
37.“ Taylor’s contribution was not a set of general principles for organizing work efficiency , nut a set of operating procedures that could be employed in each concrete situation to secure their application.”
38.“ The Barnard – Simon Theory of organization is essentially a theory of motivation.”
39. “Technically, the bureaucracy represents the purest type of legal rational authority” 30
40). “Bureaucracy does not represent the only type of legal authority” 30
Public vs pvt & PSU
1.Public and Private Administrations are two species of the same genus, but they also have special values and techniques of their own. Comment.
2."The advent of the concept of "roll back of the state" since the nineteen eighties has been altering the role of public administration but certainly not diminishing its central place in human society." Discuss
(3) "The rule of public sector has been changing tremendously in the context of liberalization.
4."Though there are certain points of similarity between public and private administration yet no private organization can ever be exactly the name as a public one". Examine.
5."Public corporations are not an end in themselves but an extension of the government activities designed to promote public welfare." - Substantiate.
6."Public undertakings no longer occupy commanding heights".
7. Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance.
8. Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance.
Concepts
1. What is meant by morale? There is a belief that "morale and productivity go hand in hand and higher the morale, higher the productivity." Do you agree? Substantiate. 60
2) Delegated legislation is a necessary evil. Examine.
(3) The distinction between line and staff is relative rather than absolute. Discuss.
4. leaders do the right things, manager do them rightly. (bennis). comment.
5.What is morale? State its significance and suggest methods to foster and sustain morale in an organization. (60)
6."Administrative efficiency is enhanced by keeping at a minimum the number of organizational levels through which a matter must pass before it is acted upon." - (Herbert A. Simon) 20
7.... "a more thorough consideration leads to the understanding that communication, authority, specialisation and purpose are all aspects comprehended in coordination." - (Chester I. Barnard) 20
8. "Information constitutes the life-blood of the functioning of organization." In the light of this statement, explain the utility and importance of communication in decision-making. 60
9.“ There is no doubts that departmentalization is fraught with complexities. These are in part technical , in part political .” Discuss.
Decision Making
10.. examine the respective roles of facts & values in the decision-making process. is it possible to make value-free decisions in government system? how can government decisions be made more rational? 60mks
11)Simon’s work has had major implications for the study of public administration and the practice of public administration professionalism. Comment.
12. "Information constitutes the life-blood of the functioning of organization." In the light of this statement, explain the utility and importance of communication in decision-making. 60
Personnel
1."The widening gap in the emoluments of government employees versus the public sector corporations and private sector employees has a strong bearing on the motivation and ability to work." Comment. 60
2) "Training is essential not only for efficiency and effectiveness but also for broadening the vision of the employees." Substantiate.
3. to talk of administrative modernization & still continue with the conventional practice of personnel administration is a gross incongruity. offer suggestions to initiate radical reforms in human resource management of public administrative systems. 60mks
4) training has proved its incapacity to change the attitudes, behaviour & values of civil servants. do you agree with this statement?
5. describe the changing character & new orientations of public service in india since independence. 60mks.
(6)The generalist character of I.A.S. is its chief characteristic as well as its chief criticism. Comment.
7.To what extent has the human relations movement contributed to the knowledge and practice within the field of personnel administration? 60
8."One of the most distinctive characteristics of Indian Administrative Service is its multipurpose character."
9. Why do public organisations evaluate employees' performance? How can
performance evaluation systems affect employees' behaviour? How can
administration effectively evaluate employees? 60
10."If positions are the raw material of classification, the class is the operating unit." Discuss.
11."training is practical education in any profession, not only to improve skills but also to develop attitudes and scheme of values necessary for effective performance." Elaborate.
(12) "All India Services play a crucial unifying role in the whole administrative system of the country." Explain.
13.Effectiveness and utility of Central and State Administrative Tribunals. 20
14. What opportunities are available to All India Services and state services in career development ? Do you agree that days of generalists in modern administrative state are numbered ? 60
(15) "All India Services play a crucial unifying role in the whole administrative system of the country." Explain.
16."A middle way- should be worked out to utilize the services of both generalists and specialists for the national development."
17."Reservation policy and its implementation has had some positive impact in relative terms on the socio-economic development of the SCs and STs but it is very meagre in absolute terms. Comment.
18. It is said that ‘ position classification’, as originally conceived is sound in terms of its operational characterics , but complicated and unresponsive in practice. Why is it still considered better than other models of civil service classification ? 60
Finance
1. ''Parliamentary Departmental Committees have played their role effectively in analyzing the demands for grants." Evaluate.
What is performance budgeting? Bring out its merits, limitations and difficulties. 60
2. the bidget is more than the economic horoscope of the nation. comment.
3)Audit, like the judiciary, the executive and the legislature is one of the Important ingredients of democracy. Comment.
(4)Successfully implementing budgeting approach requires favourable incentive structures. Discuss.
(5)Audit continues to be considered as something alien, something extraneous and something of the nature of an impediment. Explain.
(6) "Public Accounts Committee conducts a post-mortem examination of Public Accounts."
(7) "Audit provides a healthy safeguard against pub1ic Money going dowm the drain." Comment.
8. Why does the issue of budgeting as politics versus budgeting as analysis remain
important in the budgeting process? Do you agree that some synthesis of the two
positions seems possible? Illustrate. 60
(9) "The budget is an instrument of coordination." .
10."The steady expansion and the gradual decline of the public sector has been one of the most conspicuous development in post-independence India. Discuss this statement and suggest measures to arrest the decline of the public sector in India (60)
(11) "Questions represent a powerful technique of parliament control over expenditure".
(12) "Legislative controls over finances are inadequate and incomplete." Comment.
13. Examine the government budget as an instrument of public policy and a local legislative control? (60)
(14) "Auditing in Government is an exercise in post-mortem". - Examine.
(15) "The role of comptroller and auditor general is a limited one."
16. Give reasons for the failure of Government of India to introduce the performance programme budgetary technique in Union Ministries. What type of budgetary system is being currently practised in India and why ? 60
17. "Among several other problems, the Problem of financial relationship is perhaps the most complex one." Explain in the context of recent developments in Union-State relations in India.
18.Budget as an instrument of socio-economic transformation. 20
19.. Give reasons for the failure of Government of India to introduce the performance programme budgetary technique in Union Ministries. What type of budgetary system is being currently practised in India and why ? 60
20. "Among several other problems, the Problem of financial relationship is perhaps the most complex one." Explain in the context of recent developments in Union-State relations in India.
21. Examine the role of Finance Ministry of the Union Government in designing and implementing monetary and Fiscal 30
Accountability
1.''If information is power, nothing can perhaps empower a citizen more than the secret and developmental information held by various public authorities." Analyse the merits and demerits of RTI Act, 2005 in the light of this statement. 60
(2) Define Civil Society. Is it an effective organ to control administrative machinery? Comment. 10
3.'Right to information promotes transparency and accountability in the working of every public authority . Explain. 60
4) right to information act has led to greater transparency & accountability of administration. comment.
5) instruments of public accountability can be truly effective only if the people & their associations, backed by a responsible media, are assertively pro-active. comment.
6.to claim that a company / a corporation form is always more effective than a departmental form of organisation is an outdated view. the real test of a sound structure is its capacity to balance decisional autonomy & operational flexibility with optimal accountability. critically examine this statement. 60mks
7) e-governance has the potentially to emerge as the most effective instrument of efficiency, transparency & accountability. comment.
8.Lok-Ayuktas are judicial institutions without adequate teeth. Comment. 60
9.Define the term ˜civil society’. How does civil society influence the public policy? 60
(10)Autonomy and accountability in Public Enterprises cannot walk together. Explain.
11."The Lokayuktas in States have not succeeded in tackling maladministration,
while the Bill on Lokpal still faces stiff oppostion on the floor of the Parliament."
12. What are the various institutional devices available for the redressal of citizen's grievances against the excess and malfunctioning of administration? How successful have they been (60).
(13) " A distinctive feature of the Indian Administration, since independence, has been the noticeable efforts under taken to make administrative system effectively reach and respond to citizen's grievances."
(14) 'Citizen's charter' is the most important innovation in the context of promotion of customer-orientation of administration". Discuss.
(15) The doctrine of political neutrality and anonymity is no more relevant to modern civil service." - Comment.
(16) "Civil society exists to ensure that government does provide good governance." Discuss.
17. "The weakest aspect of Indian Administrative System is utter disregard of accountability." Examine the current mechanism for enforcing accountability. What steps are necessary to make it more effective ? 60
18. Do you think that our administration is sensitive to public grievances ? Discuss the existing grievances redressal mechanism and give suggestions for enhancing its capabilities.
(19) Judicial control over administration in India and concept of judicial activism.20
20. "The weakest aspect of Indian Administrative System is utter disregard of accountability." Examine the current mechanism for enforcing accountability. What steps are necessary to make it more effective ? 60
21) “The weakest aspect of Indian Administration is grievance redressal machinery.” Discuss.
22. “ There is no basic contradiction between Civil Service neutrality and Civil Service activism.” Comment.
Reform & E-gov
1) "'Memorandum of understanding scheme' between govemment and public enterprise has forced public undertakings to improve the overall performance." Comment.
(2) "The blame for our poor public sector performance can be laid on the way our bureaucracy is structured." Comment.
3) "A well-designed module-based training for Civil Servants is the best way to achieve the goals of good governance." Analyse.
4. National Commission to review the working of the Constitution has suggested revolutionary changes in administrative culture. Analyse its major recommendations on Civil Services and Administration. 60
5. Bring out the various techniques of 0 & M adopted in India to improve efficiency in administration. 60
(6) "Implementing a public policy is a process of discovering what works and what does not." Examine.
(7)All efforts in the field of reforms in public administration by the political executive have resulted in no significant output. Comment.
8.Discuss the main approaches to increase the efficiency of government and public administration. 60
(9)The rise of information technology is an opportunity to overcome historical disabilities. Explain.
10."Efforts made towards administrative reforms so far have been lacking in a congruence between strategy, structure and substance."
11. In what ways and how can information technology playa crucial role in effective
government-citizen interaction in the context of good governance 60
12."The size of the leviathan goes on expanding, despite the country's recent commitment to downsizing or rightsizing".
13. Examine the needs and facets of administrative reforms in the fast changing scenario of the 21st century. What are the obstacles to administrative reforms? Give suggestion to overcome them. (60)
14."Organization today seems to invest in information and information systems, but their investments often do not seem to make sense". Comment.
15.Account for the increasing corruption in administration. Suggest remedies to curb administrative corruption. (60)
16."Information technology, if properly used, can bring about sweeping changes in the nature of governance in India." Discuss the current status and future possibilities about the use of information technology in the governance of India
17.The problem of administrative improvement in India are longer and more complex than in any other country in the world". Comment (30)
18.Work study and work-measurement in Indian Administration. 20
19."Most administrative reforms have a political cost."
20.Work study and work-measurement in Indian Administration. 20
21. In your view , which have been the five most important administrative reforms implemented after Independence? What has been their impact?
22). Briefly discuss the main recommendations of any two of the followings :30 i). Paul Appleby ( 1953 and 1956 )
ii). Santhanam Committee
iii). Hota Committee
iv). Sixth Pay Commission
23). “ The Recommendations of the second Administrative Reform Commission on reforming the Civil Service are radical yet implementable.” Do you agree? 30
24) “Administrative talent of a minister determines his success.”
25.“ A fix tenure in Civil Service postings can increase productivity , accountability and probity in Government.”
26.Do you agree with the view that citizen’s Charters in India have not succeeded in their objective of making of administrative system citizen –centric ? Analyze and give your suggestions in this regard. 30
27.“ Technical like PERT and CPM help in effective office management.” Elaborate.
policy
1.laxity in monitoring & evaluation can render even the best policies infructuous. discuss.
(2)Nothing comes across more strongly than the great naivete about policy implementation. Discuss.
3. Give an assessment of the processes of policy formulation and discuss the
problems of policy implementation. 60
4. Comment on the role of public administration in policy making and its implementation. What are the other factors influencing the policy process? (60)
5."Public policy is what politics is about". - Substantiate.
6.“ …….. even if policies are well organized , efficiently operated ,idely utilized , adequately financed and supported , we may still ask , so what ? Do they work? …. What about their costs outputs and impact ?” Discuss.60
7) “ Yehezkel Dror’s normative models of policy making tend to be academic in perspective with poor operational utility.” Comment.
Evolution or History
1."Kautilya was not only the foremost politico-administrative thinker of Ancient India but he was an advocate and preacher of moral values too." Comment.
2) some features of mugal administration, in essence, do wxist in indian administration. elaborate.
(3)In the happiness of his subjects lies the king’s happiness; in their welfare his welfare. Comment on Kautilyan state administration. In what respects is modern democratic rulers’ behavior different from Kautilyan rulers?
4."The Mughal Administrative System was a military rule by nature and was
centralized despotism."
5.generalities that transcend national boundaries and peculiar historical
ecperiences." Discuss.
6."The Arthashastra is India's oldest complete text on public administration".
7."All Indian service is an institution - is the result of history".
8."The period of British rule generated most of the structural and behavioural values of Indian Administration not by imitation but through interaction."
9."The period of British rule generated most of the structural and behavioural values of Indian Administration not by imitation but through interaction."
10.“Bureaucracy developed by the British stifled the village self rule.” Comment.
11) “Comment on the view that despite different contexts, administrative maxims of 12.Kautilya’s Arthashatra bear considerable similarity with features of Weber’s ideal bureaucratic model.
Development administration
1."Social (Welfare) Administration in India is witnessing specialization and faster expansion of its administrative agencies." Evaluate. 10
2."People's participation is crucial to development administration." Comment.
in certain discources, there is a reflected basic distrust against bureaucracy as an instrument of development. do you think bureaucracy is more appropriate for regulatory administration than for development administration? in the changing profile of development administration in a liberalizing environment , what role of bureaucracy can be envisaged?
3.the shift from the nehruvian to the liberalisation model of development has necessitated reinventing government. commnet.
4. there is constant & continous collision between bureaucratic values & democratic values which adversly affects & development. in the light of this statement examine the role of bureaucracy in development. 60mks
5. good economics & bad politics cannot coexist in a sound budgetary process. discuss this statement in the context of the developmental challenges in countries experiencing competitive politics. 60mks
6) training of civil servants for capacity building should be in consonance with the needs of the socio-economic & technological development of the country. explain.
7. in the last two decades, almost all countries of the world have experienced transformations in their administrative systems. explain this phenomenon with examples from the developed & the developing nations in the context of new public management movement. 60mks
8.Do you agree with the view that development administration has in recent years lost its impetus without making any significant intellectual breakthrough? Discuss.60
9."Development administration is starved for theories which will guide the
pooling of empirical knowledge, orient new research, and recommend
administrative policy." .
10."In-service training of officers belonging to higher civil services has been perhaps the most conspicuous development in Indian administration." Discuss with reference to raining designed for the Indian administrative service officers.
11."development administration has two important aspects viz. 'the administration of development and the development of administration'. Explain.
12."NGOs are fast replacing the government in the implementation of a large number of programs." Elucidate.
13. "After independence, despite the change in socio-economic and political milieu, the basic features of colonial impact on administration continues to exist in our administrative system." Comment. (60)
14."Development administration is concerned with maximizing innovation for development." - Discuss.
(15) "Culturally sanctioned values and symbols have acted as important influencing catalyst in administration". Elaborate (30)
16. What opportunities are available to All India Services and state services in career development ? Do you agree that days of generalists in modern administrative state are numbered ? 60
17."A middle way- should be worked out to utilize the services of both generalists and specialists for the national development."
18. Self-Help Groups ( SHGs ) enables women to realize their full potential in some spheres of life.
19). Self-Help Groups ( SHGs ) are providing avenues of political mobilization. Examine the implication of these two statements and assess the potential of SHGs for development. 60
Union
1. There is a separate Central Ministry or Department on each subject allocated to State List. Does it mean supremacy of the Union Government or an emphasis on development administration? Analyze. 60
(2) Critically analyse the functions and role of Ministry of Social Justice and Empowerment with regard to development of disabled persons in India in not more than 200 words. 40
3. what are the tension areas in union-state relations in planning?
4) Critically evaluate the policies of the Union Government with regard to the welfare of women and children of India in not more than 200 words.
(5) "A strong PMO is a salvation for any Indian Prime Minister, but concentration
of power is a danger to democracy."
6. "The Cabinet Secretariat provides the eyes and ears for the Prime Minister to
keep in touch with the process of official business in Central Government."
7."From highly centralized planning system, India has moved towards indicative
planning under which long-term strategic vision of the future is built and nation's
priorities are decided." Elucidate. 60
8."Despite all the powers that he has, the Indian prime minister cannot become a dictator.
9. "Indian planning is highly centralized."
10. The central secretariat is a policy formulating, coordinating and supervisory agency besides being the principal executive agency of the government." - Explain (30)
11."Though the dictatorship of the Cabinet is a stark reality in modern times, it does not mean that the Cabinet is omnipotent."
12. "The leadership qualities of a civil servant are tested most during his tenure as the Cabinet Secretary - a dream-post for even-bureaucrat.- Elucidate.
13. "Though the dictatorship of the Cabinet is a stark reality in modern times, it does not mean that the Cabinet is omnipotent."
14. "The leadership qualities of a civil servant are tested most during his tenure as the Cabinet Secretary - a dream-post for even-bureaucrat.- Elucidate.
15.compare Chief Secretary vs Cabinet Secretary. 30
State
1.''The dispute between Secretariat and Directorate is the result of Generalist us Specialist controversy." Analyse. 60
2) district administration is like a small tortise carrying the load of an elephant. discuss.
3) discuss the problems in the planning process at the state & sub-state levels.
4) the chief minister is the real executive of the state, whose effectiveness is largly related to his personality trait & equation with central leadership. explain & illustrate with relevant examples. 60mks.
5.The District Collector, the additional Deputy Commissioner and Sub-Divisional Officer, have virtually become ‘officers-in-attendance’ and have lost initiative and independence of judgement . Comment. 60
6. "The Chief Minister symbolizes ruling power structure and is the real executive
head of the State Government." Discuss the above statement in the light of his
position in a Coalition Government.
7."The primary emphasis in District Administration has to be on implementation of development programmes in cooperation with active support of people." Elucidate.
8."The District Collector is an overburdened officer due to the expansion and
increasing developmental activities."
9."district collector has increasingly become multi dimensional".
10) "It is at the district level that the common man comes into direct contact with the administration." Elucidate. (30 x 2 = 60)
(11) "Collector is the representative of the state government in the district and also represents public interest". Comment (30).
(12) "It is a major challenge to balance the role of District Collector with the powers of democratic bodies."
13) "In the Chief Secretary, the State Government has an officer whose counterpart does not obtain in the Union Government.' Elucidate.
14."Maintenance of law and order is a State subject but the Union Government can deploy armed forces in any State."
15."It is a major challenge to balance the role of District Collector with the powers of democratic bodies."
16."In the Chief Secretary, the State Government has an officer whose counterpart does not obtain in the Union Government.' Elucidate.
17) . “Law and order problems of the twenty first century cannot be tackled through legislations and structures of the nineteenth century.” Give suggestions for transforming the law and order machinery at the State level. 30
18). Discuss the relationship between governance and development in any one Indian state , giving illustrations. 30
19. Do state Services suffer in comparison with All India and Central Services ? Suggest measures for enhancing the role , competence and impact of state services. 30
20)What measures have been taken by the Union and the States for the Welfare of women in the profession of sex?
(21)What concrete steps have been taken by the Union and the State Governments to protect child labour and prevent abuse of children?40+10+10=60
22."Women's development programs of recent have shifted from welfarist approach to empowerment of women". Elaborate (60).
23) "Reservation policy and its implementation has had some positive impact in relative terms on the socio-economic development of the SCs and STs but it is very meagre in absolute terms. Comment.
Constitution
1."The President of India acts like grandparent in a family. If younger generation does not follow his/her advice, he/she is just unable to do anything." Comment.
2."Because of several judicial pronouncements, Governors in States are no longer viewed as agents of the 'Party in Power' at the Central level." Evaluate.
3.The role played by the National Human Rights commission in Maintaining and preserving dignity of India’s citizens has been satisfactory and up to the expectations. Elucidate. 60
(4)Not the Potomac, but the Thames, fertilizes the flow of Yamuna. In the light of the statement comment on the symbolic institution of the President of India.
5.Indian Prime Minister should not only be accountable to the Indian Parliament but should appear to be so. Comment on the accountability of the Prime Minister to the Indian Parliament in the context of extra-constitutional power. 60
6)The basic values of the Constitution of India enshrine social, political and economic philosophy symbolizing sovereignty of the people, rule of law and basic characteristics of a socialist, secular, democratic republic. comment.
(7)By taking some offices out of the jurisdiction of the Office of Profit Act, the Government of India has doubly assured the public mind of its duplicity. Comment.
8.The main problem of Centre-State relations in India is bottlenecks in fiscal federalism. Comment. 60
(9) "The veto-power of the Indian President is a combination of the absolute,suspensive and pocket veto."
10."The role played by Central and State Governments in maintaining law and-order is inadequate and unmatched to growing criminalization."
(11) "National Development Council is criticized as an usurping authority -functioning as a virtual supercabinet." . 30 x 2 = 60
12.What is judicial activism? How far has it been successful in exercising a check over administration? 60
(13) "Though India emerged as a sovereign state after independence, the administrative system remained the same as was during the British period".
14. "Looking back to our past experience, the fear that the emergency provisions can be misused have at times proved right and wrong at other times. Discuss with examples. (60)
15) "Article 163 makes the governor the sole judge in matters in which he is required to act in his discretion." Explain.
(16) "Criminalization of politics in India has been extended to politicization of criminals. Comment.
(17) Indian federalism is described as federal in form but unitary in spirit.
Analyze the constitutional political and operational dimensions of employer-employee relations. What are your suggestions to bring about a satisfactory relationship between them? (60)
(18) "National development council has virtually become a super-cabinet and tries to arrogate itself the functions of parliament.
(19) "National Development Council, it seems, is like a super-Cabinet."
20"Indian Constitution confers vast legislative powers on the President."
(21) Judicial control over administration in India and concept of judicial activism. 20
22."Maintenance of law and order is a State subject but the Union Government can deploy armed forces in any State."
23). “ Value of Indian administration must be rooted in the Preamble of the Indian Constitution.” Discuss. 30
24). “Many of the programmes of development being implemented at the state and the local level have been initiated or financed by the Union Government. This has transformed the nature of Indian federalism.” Critically examine this asessment. 30
25. “ The National Human Rights Commissions has done a commendable job in developing job in developinga sense responsibility among organization towards the protection of human rights.” Comment on this assessment. 30
Local Administration
26."73rd Constitutional Amendment has provided permanent structural framework to PRI's resulting into silent social revolution." Comment. 60
27.''In spite of having Constitutional status the District Planning Committee is not able to implement decentralized planning due to centralized nature of economic planning." Comment.
28.economic development & social justice are the hallmarks of the 1992 constitutional amemndment acts. elucidate.
29.in urban governance, uni-funtional agencies & development authoritiesz create a "functional jungle. explain.
30.what are the basic hurdles & pitfalls in the implementation of the national rural employment guarantee act?
31.new localism is identifies with the new local-state & local activism. examine how this has impacted city management in india.
(32)The 73rd and 74th Constitutional Amendments are major landmarks in India’s Constitutional History and Local Governance. Comment.
33. "Even after a decade of having adopted the 73rd Amendment to the Constitution,
the Panchayat Raj institution still faces a number of problems towards making it a
strong and vibrant unit of Government." Comment.
(34) "Rural and urban development programs have gained in importance, but implementation has been a failure."
35. The role of local self-government in the state administration is of considerable importance. Evaluate the statement in the context of the 73rd and 74th amendments made. (60).
36.“ Sound municipal governance requires a cadre of specilised municipal services executives equal in status to state services.”
Adjudication
37.Today the content of administrative law is driven primarily by the scope of public administrative activity. Explain. 60
38."Today the content of administrative law is driven primarily by. the scope of
public administration activity." . 60
39. "dicey was wrong not only in his concept of the rule of law, but he also overlooked the significance of the administrative law". - Comment.
40.Effectiveness and utility of Central and State Administrative Tribunals. 20
International
1."The value premises of our constitution in the era of global constitutionalism."
2."the machinery for welfare administration at the national and state level trickling down to grassroots becomes meaningless in the context of global constitutionalism. - Discuss (60)
3. Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21st century?
4.Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21st century?
Distaster of Management
b1. in india, there appears to be more disaster of management than management of disaster. comment.
2.“ India has failed to devise a long term strategy for drought management.”
This excellent job done by Mrunal Patel
1. "Not to be comparative is to be naively parochial" (Riggs). Comment.
2. Taylor’s scientific management ignored social and psychological factors. Comment.
3.Analyze McGregor's Theory X and Theory Y. Do you agree with the view that with every passing year, McGregor's message has become more relevant and more important? Substantiate your answer. 60
4.calling woodrow wilson, the father of public administration is doing injustice to equally or even more eminent contributions made prior to him. comment.
5.mary parker follett was far ahead of her times. discuss.
truly comparitive administration studies are empirical, nomothetic & ecological. (riggs) in this perspective, examine the current status of comparitive public administration.
6.Critically examine the Classical Science of Administration with special reference to its criticism by Dwight Waldo and Robert Dahl. 60
7.The main problem with Mary Parker Follett’s work is that her idealism is showing. Explain.
8.If public administration is to play a major legitimizing role in governing our complex society, it needs to be more fully conceptualized. Discuss.
9. "No science of public administration is possible unless.... there is a body of
comparative studies from which it may be possible to discover principles and
10."Administrative question are not political questions." Discuss.
11."Organisation is a system of consciously coordinated activities or forces of two or more persons." Comment.
12. In Follett's view, "authority belongs to the job and stays with the job."
13. "The failure of classical science of administration lies in its capacity to
confront theory with evidence." Discuss.
14.Give an account of major landmarks in the growth of the discipline of public administration in the 20th century. What are the possible trends in its growth in the first decades of 21st century? (60)
15. "Weberian model of bureaucracy lacks empirical validity when applied to modern democratic administration." Examine.
16. "The new public administration (NPM) is an incarnation of a new model of public sector management in response of the challenge of liberalization, international competitiveness and technological changes". Explain.
17. How did Fred W. Riggs conceptualize the interactions between administration systems and their environment? (60)
18. Compare Abraham Maslow's theory of motivation and Herzberg's motivation-hygiene theory. Do you think that they are universally applicable? If so, why? If not, why not? (60)
19. Describe the evolution of the discipline of public administration with special emphasis on post - 1970 developments. (60)
20. Explain the contribution of George Elton Mayo to the development of the Human relations school. How did behavioral scientist modify his basic findings? (60)
21. Critically examine the approach and methodology adopted by Fred W. Riggs in his study of prismatic and sala societies. What is valid-content of Raj Krishna's criticism of refraction ? 60
22) "Political environment conditions administrative system." - (F. W Riggs) 20
23) "A science of administration would be a body of for mal statements describing invariant relationships between measurable objects, units, or elements. 24.Unquestionably, administrative research has produced definite precepts and hypotheses that are applicable to concrete situations."(Fritz Morstein Marx) 20
25. "... The paradigms of public administration may be understood in terms of locus an focus." - Golembiewski
In the light of the above statement describe the "five-paradigms" of Nicholas Henry about the evolution of the discipline of public administration. 60
26."Administrative efficiency is enhanced by keeping at a minimum the number of organizational levels through which a matter must pass before it is acted upon." - (Herbert A. Simon) 20
27. "a more thorough consideration leads to the understanding that communication, authority, specialisation and purpose are all aspects comprehended in coordination." - (Chester I. Barnard) 20
28."Political environment conditions administrative system." - (F. W Riggs) 20
29. "... The paradigms of public administration may be understood in terms of locus an focus." - Golembiewski, In the light of the above statement describe the "five-paradigms" of Nicholas Henry about the evolution of the discipline of public administration. 60
30. Critically examine the approach and methodology adopted by Fred W. Riggs in his study of prismatic and sala societies. What is valid-content of Raj Krishna's criticism of refraction ? 60
31 “ ….. non –western states often , If not always , have unbalance politics , but these may not necessarily be bureaucratic politics.” Discuss.
32. From Woodrow Wilson to Herbert Simon most writers on public administration have taken the achievement of efficiency as the central objective. Justify the statement with reference to the work of major writers. 60
33) Which of the model(s) in development administration is / are characterised by ‘ Selectivism’ , ‘ Attainment’ and ‘Poly-functionalism’ ? Describe the corresponding theoretical roots and attributes.
34. It is said that “ the perspective of public administration ,developed over a century , with a tradition of management of Public institution and services has received a jolt from the novelty of New Public Management”.
Bring out the core values,approaches and assumptions of traditional public administration and show how the new Public Management has attempted to change or retain them , and to what extent.60
35.“ The Field of Public Administration is a field of business.”( Woodrow Wilson )
36.“ New Public Administration is …… a revolution or radicalism in words , and ( at best ) status –quo in skills or technologies.”
37.“ Taylor’s contribution was not a set of general principles for organizing work efficiency , nut a set of operating procedures that could be employed in each concrete situation to secure their application.”
38.“ The Barnard – Simon Theory of organization is essentially a theory of motivation.”
39. “Technically, the bureaucracy represents the purest type of legal rational authority” 30
40). “Bureaucracy does not represent the only type of legal authority” 30
Public vs pvt & PSU
1.Public and Private Administrations are two species of the same genus, but they also have special values and techniques of their own. Comment.
2."The advent of the concept of "roll back of the state" since the nineteen eighties has been altering the role of public administration but certainly not diminishing its central place in human society." Discuss
(3) "The rule of public sector has been changing tremendously in the context of liberalization.
4."Though there are certain points of similarity between public and private administration yet no private organization can ever be exactly the name as a public one". Examine.
5."Public corporations are not an end in themselves but an extension of the government activities designed to promote public welfare." - Substantiate.
6."Public undertakings no longer occupy commanding heights".
7. Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance.
8. Discuss the major problems of management and working of Public Sector Undertakings in India. Give suggestions in the light of liberalization policy to improve their performance.
Concepts
1. What is meant by morale? There is a belief that "morale and productivity go hand in hand and higher the morale, higher the productivity." Do you agree? Substantiate. 60
2) Delegated legislation is a necessary evil. Examine.
(3) The distinction between line and staff is relative rather than absolute. Discuss.
4. leaders do the right things, manager do them rightly. (bennis). comment.
5.What is morale? State its significance and suggest methods to foster and sustain morale in an organization. (60)
6."Administrative efficiency is enhanced by keeping at a minimum the number of organizational levels through which a matter must pass before it is acted upon." - (Herbert A. Simon) 20
7.... "a more thorough consideration leads to the understanding that communication, authority, specialisation and purpose are all aspects comprehended in coordination." - (Chester I. Barnard) 20
8. "Information constitutes the life-blood of the functioning of organization." In the light of this statement, explain the utility and importance of communication in decision-making. 60
9.“ There is no doubts that departmentalization is fraught with complexities. These are in part technical , in part political .” Discuss.
Decision Making
10.. examine the respective roles of facts & values in the decision-making process. is it possible to make value-free decisions in government system? how can government decisions be made more rational? 60mks
11)Simon’s work has had major implications for the study of public administration and the practice of public administration professionalism. Comment.
12. "Information constitutes the life-blood of the functioning of organization." In the light of this statement, explain the utility and importance of communication in decision-making. 60
Personnel
1."The widening gap in the emoluments of government employees versus the public sector corporations and private sector employees has a strong bearing on the motivation and ability to work." Comment. 60
2) "Training is essential not only for efficiency and effectiveness but also for broadening the vision of the employees." Substantiate.
3. to talk of administrative modernization & still continue with the conventional practice of personnel administration is a gross incongruity. offer suggestions to initiate radical reforms in human resource management of public administrative systems. 60mks
4) training has proved its incapacity to change the attitudes, behaviour & values of civil servants. do you agree with this statement?
5. describe the changing character & new orientations of public service in india since independence. 60mks.
(6)The generalist character of I.A.S. is its chief characteristic as well as its chief criticism. Comment.
7.To what extent has the human relations movement contributed to the knowledge and practice within the field of personnel administration? 60
8."One of the most distinctive characteristics of Indian Administrative Service is its multipurpose character."
9. Why do public organisations evaluate employees' performance? How can
performance evaluation systems affect employees' behaviour? How can
administration effectively evaluate employees? 60
10."If positions are the raw material of classification, the class is the operating unit." Discuss.
11."training is practical education in any profession, not only to improve skills but also to develop attitudes and scheme of values necessary for effective performance." Elaborate.
(12) "All India Services play a crucial unifying role in the whole administrative system of the country." Explain.
13.Effectiveness and utility of Central and State Administrative Tribunals. 20
14. What opportunities are available to All India Services and state services in career development ? Do you agree that days of generalists in modern administrative state are numbered ? 60
(15) "All India Services play a crucial unifying role in the whole administrative system of the country." Explain.
16."A middle way- should be worked out to utilize the services of both generalists and specialists for the national development."
17."Reservation policy and its implementation has had some positive impact in relative terms on the socio-economic development of the SCs and STs but it is very meagre in absolute terms. Comment.
18. It is said that ‘ position classification’, as originally conceived is sound in terms of its operational characterics , but complicated and unresponsive in practice. Why is it still considered better than other models of civil service classification ? 60
Finance
1. ''Parliamentary Departmental Committees have played their role effectively in analyzing the demands for grants." Evaluate.
What is performance budgeting? Bring out its merits, limitations and difficulties. 60
2. the bidget is more than the economic horoscope of the nation. comment.
3)Audit, like the judiciary, the executive and the legislature is one of the Important ingredients of democracy. Comment.
(4)Successfully implementing budgeting approach requires favourable incentive structures. Discuss.
(5)Audit continues to be considered as something alien, something extraneous and something of the nature of an impediment. Explain.
(6) "Public Accounts Committee conducts a post-mortem examination of Public Accounts."
(7) "Audit provides a healthy safeguard against pub1ic Money going dowm the drain." Comment.
8. Why does the issue of budgeting as politics versus budgeting as analysis remain
important in the budgeting process? Do you agree that some synthesis of the two
positions seems possible? Illustrate. 60
(9) "The budget is an instrument of coordination." .
10."The steady expansion and the gradual decline of the public sector has been one of the most conspicuous development in post-independence India. Discuss this statement and suggest measures to arrest the decline of the public sector in India (60)
(11) "Questions represent a powerful technique of parliament control over expenditure".
(12) "Legislative controls over finances are inadequate and incomplete." Comment.
13. Examine the government budget as an instrument of public policy and a local legislative control? (60)
(14) "Auditing in Government is an exercise in post-mortem". - Examine.
(15) "The role of comptroller and auditor general is a limited one."
16. Give reasons for the failure of Government of India to introduce the performance programme budgetary technique in Union Ministries. What type of budgetary system is being currently practised in India and why ? 60
17. "Among several other problems, the Problem of financial relationship is perhaps the most complex one." Explain in the context of recent developments in Union-State relations in India.
18.Budget as an instrument of socio-economic transformation. 20
19.. Give reasons for the failure of Government of India to introduce the performance programme budgetary technique in Union Ministries. What type of budgetary system is being currently practised in India and why ? 60
20. "Among several other problems, the Problem of financial relationship is perhaps the most complex one." Explain in the context of recent developments in Union-State relations in India.
21. Examine the role of Finance Ministry of the Union Government in designing and implementing monetary and Fiscal 30
Accountability
1.''If information is power, nothing can perhaps empower a citizen more than the secret and developmental information held by various public authorities." Analyse the merits and demerits of RTI Act, 2005 in the light of this statement. 60
(2) Define Civil Society. Is it an effective organ to control administrative machinery? Comment. 10
3.'Right to information promotes transparency and accountability in the working of every public authority . Explain. 60
4) right to information act has led to greater transparency & accountability of administration. comment.
5) instruments of public accountability can be truly effective only if the people & their associations, backed by a responsible media, are assertively pro-active. comment.
6.to claim that a company / a corporation form is always more effective than a departmental form of organisation is an outdated view. the real test of a sound structure is its capacity to balance decisional autonomy & operational flexibility with optimal accountability. critically examine this statement. 60mks
7) e-governance has the potentially to emerge as the most effective instrument of efficiency, transparency & accountability. comment.
8.Lok-Ayuktas are judicial institutions without adequate teeth. Comment. 60
9.Define the term ˜civil society’. How does civil society influence the public policy? 60
(10)Autonomy and accountability in Public Enterprises cannot walk together. Explain.
11."The Lokayuktas in States have not succeeded in tackling maladministration,
while the Bill on Lokpal still faces stiff oppostion on the floor of the Parliament."
12. What are the various institutional devices available for the redressal of citizen's grievances against the excess and malfunctioning of administration? How successful have they been (60).
(13) " A distinctive feature of the Indian Administration, since independence, has been the noticeable efforts under taken to make administrative system effectively reach and respond to citizen's grievances."
(14) 'Citizen's charter' is the most important innovation in the context of promotion of customer-orientation of administration". Discuss.
(15) The doctrine of political neutrality and anonymity is no more relevant to modern civil service." - Comment.
(16) "Civil society exists to ensure that government does provide good governance." Discuss.
17. "The weakest aspect of Indian Administrative System is utter disregard of accountability." Examine the current mechanism for enforcing accountability. What steps are necessary to make it more effective ? 60
18. Do you think that our administration is sensitive to public grievances ? Discuss the existing grievances redressal mechanism and give suggestions for enhancing its capabilities.
(19) Judicial control over administration in India and concept of judicial activism.20
20. "The weakest aspect of Indian Administrative System is utter disregard of accountability." Examine the current mechanism for enforcing accountability. What steps are necessary to make it more effective ? 60
21) “The weakest aspect of Indian Administration is grievance redressal machinery.” Discuss.
22. “ There is no basic contradiction between Civil Service neutrality and Civil Service activism.” Comment.
Reform & E-gov
1) "'Memorandum of understanding scheme' between govemment and public enterprise has forced public undertakings to improve the overall performance." Comment.
(2) "The blame for our poor public sector performance can be laid on the way our bureaucracy is structured." Comment.
3) "A well-designed module-based training for Civil Servants is the best way to achieve the goals of good governance." Analyse.
4. National Commission to review the working of the Constitution has suggested revolutionary changes in administrative culture. Analyse its major recommendations on Civil Services and Administration. 60
5. Bring out the various techniques of 0 & M adopted in India to improve efficiency in administration. 60
(6) "Implementing a public policy is a process of discovering what works and what does not." Examine.
(7)All efforts in the field of reforms in public administration by the political executive have resulted in no significant output. Comment.
8.Discuss the main approaches to increase the efficiency of government and public administration. 60
(9)The rise of information technology is an opportunity to overcome historical disabilities. Explain.
10."Efforts made towards administrative reforms so far have been lacking in a congruence between strategy, structure and substance."
11. In what ways and how can information technology playa crucial role in effective
government-citizen interaction in the context of good governance 60
12."The size of the leviathan goes on expanding, despite the country's recent commitment to downsizing or rightsizing".
13. Examine the needs and facets of administrative reforms in the fast changing scenario of the 21st century. What are the obstacles to administrative reforms? Give suggestion to overcome them. (60)
14."Organization today seems to invest in information and information systems, but their investments often do not seem to make sense". Comment.
15.Account for the increasing corruption in administration. Suggest remedies to curb administrative corruption. (60)
16."Information technology, if properly used, can bring about sweeping changes in the nature of governance in India." Discuss the current status and future possibilities about the use of information technology in the governance of India
17.The problem of administrative improvement in India are longer and more complex than in any other country in the world". Comment (30)
18.Work study and work-measurement in Indian Administration. 20
19."Most administrative reforms have a political cost."
20.Work study and work-measurement in Indian Administration. 20
21. In your view , which have been the five most important administrative reforms implemented after Independence? What has been their impact?
22). Briefly discuss the main recommendations of any two of the followings :30 i). Paul Appleby ( 1953 and 1956 )
ii). Santhanam Committee
iii). Hota Committee
iv). Sixth Pay Commission
23). “ The Recommendations of the second Administrative Reform Commission on reforming the Civil Service are radical yet implementable.” Do you agree? 30
24) “Administrative talent of a minister determines his success.”
25.“ A fix tenure in Civil Service postings can increase productivity , accountability and probity in Government.”
26.Do you agree with the view that citizen’s Charters in India have not succeeded in their objective of making of administrative system citizen –centric ? Analyze and give your suggestions in this regard. 30
27.“ Technical like PERT and CPM help in effective office management.” Elaborate.
policy
1.laxity in monitoring & evaluation can render even the best policies infructuous. discuss.
(2)Nothing comes across more strongly than the great naivete about policy implementation. Discuss.
3. Give an assessment of the processes of policy formulation and discuss the
problems of policy implementation. 60
4. Comment on the role of public administration in policy making and its implementation. What are the other factors influencing the policy process? (60)
5."Public policy is what politics is about". - Substantiate.
6.“ …….. even if policies are well organized , efficiently operated ,idely utilized , adequately financed and supported , we may still ask , so what ? Do they work? …. What about their costs outputs and impact ?” Discuss.60
7) “ Yehezkel Dror’s normative models of policy making tend to be academic in perspective with poor operational utility.” Comment.
Evolution or History
1."Kautilya was not only the foremost politico-administrative thinker of Ancient India but he was an advocate and preacher of moral values too." Comment.
2) some features of mugal administration, in essence, do wxist in indian administration. elaborate.
(3)In the happiness of his subjects lies the king’s happiness; in their welfare his welfare. Comment on Kautilyan state administration. In what respects is modern democratic rulers’ behavior different from Kautilyan rulers?
4."The Mughal Administrative System was a military rule by nature and was
centralized despotism."
5.generalities that transcend national boundaries and peculiar historical
ecperiences." Discuss.
6."The Arthashastra is India's oldest complete text on public administration".
7."All Indian service is an institution - is the result of history".
8."The period of British rule generated most of the structural and behavioural values of Indian Administration not by imitation but through interaction."
9."The period of British rule generated most of the structural and behavioural values of Indian Administration not by imitation but through interaction."
10.“Bureaucracy developed by the British stifled the village self rule.” Comment.
11) “Comment on the view that despite different contexts, administrative maxims of 12.Kautilya’s Arthashatra bear considerable similarity with features of Weber’s ideal bureaucratic model.
Development administration
1."Social (Welfare) Administration in India is witnessing specialization and faster expansion of its administrative agencies." Evaluate. 10
2."People's participation is crucial to development administration." Comment.
in certain discources, there is a reflected basic distrust against bureaucracy as an instrument of development. do you think bureaucracy is more appropriate for regulatory administration than for development administration? in the changing profile of development administration in a liberalizing environment , what role of bureaucracy can be envisaged?
3.the shift from the nehruvian to the liberalisation model of development has necessitated reinventing government. commnet.
4. there is constant & continous collision between bureaucratic values & democratic values which adversly affects & development. in the light of this statement examine the role of bureaucracy in development. 60mks
5. good economics & bad politics cannot coexist in a sound budgetary process. discuss this statement in the context of the developmental challenges in countries experiencing competitive politics. 60mks
6) training of civil servants for capacity building should be in consonance with the needs of the socio-economic & technological development of the country. explain.
7. in the last two decades, almost all countries of the world have experienced transformations in their administrative systems. explain this phenomenon with examples from the developed & the developing nations in the context of new public management movement. 60mks
8.Do you agree with the view that development administration has in recent years lost its impetus without making any significant intellectual breakthrough? Discuss.60
9."Development administration is starved for theories which will guide the
pooling of empirical knowledge, orient new research, and recommend
administrative policy." .
10."In-service training of officers belonging to higher civil services has been perhaps the most conspicuous development in Indian administration." Discuss with reference to raining designed for the Indian administrative service officers.
11."development administration has two important aspects viz. 'the administration of development and the development of administration'. Explain.
12."NGOs are fast replacing the government in the implementation of a large number of programs." Elucidate.
13. "After independence, despite the change in socio-economic and political milieu, the basic features of colonial impact on administration continues to exist in our administrative system." Comment. (60)
14."Development administration is concerned with maximizing innovation for development." - Discuss.
(15) "Culturally sanctioned values and symbols have acted as important influencing catalyst in administration". Elaborate (30)
16. What opportunities are available to All India Services and state services in career development ? Do you agree that days of generalists in modern administrative state are numbered ? 60
17."A middle way- should be worked out to utilize the services of both generalists and specialists for the national development."
18. Self-Help Groups ( SHGs ) enables women to realize their full potential in some spheres of life.
19). Self-Help Groups ( SHGs ) are providing avenues of political mobilization. Examine the implication of these two statements and assess the potential of SHGs for development. 60
Union
1. There is a separate Central Ministry or Department on each subject allocated to State List. Does it mean supremacy of the Union Government or an emphasis on development administration? Analyze. 60
(2) Critically analyse the functions and role of Ministry of Social Justice and Empowerment with regard to development of disabled persons in India in not more than 200 words. 40
3. what are the tension areas in union-state relations in planning?
4) Critically evaluate the policies of the Union Government with regard to the welfare of women and children of India in not more than 200 words.
(5) "A strong PMO is a salvation for any Indian Prime Minister, but concentration
of power is a danger to democracy."
6. "The Cabinet Secretariat provides the eyes and ears for the Prime Minister to
keep in touch with the process of official business in Central Government."
7."From highly centralized planning system, India has moved towards indicative
planning under which long-term strategic vision of the future is built and nation's
priorities are decided." Elucidate. 60
8."Despite all the powers that he has, the Indian prime minister cannot become a dictator.
9. "Indian planning is highly centralized."
10. The central secretariat is a policy formulating, coordinating and supervisory agency besides being the principal executive agency of the government." - Explain (30)
11."Though the dictatorship of the Cabinet is a stark reality in modern times, it does not mean that the Cabinet is omnipotent."
12. "The leadership qualities of a civil servant are tested most during his tenure as the Cabinet Secretary - a dream-post for even-bureaucrat.- Elucidate.
13. "Though the dictatorship of the Cabinet is a stark reality in modern times, it does not mean that the Cabinet is omnipotent."
14. "The leadership qualities of a civil servant are tested most during his tenure as the Cabinet Secretary - a dream-post for even-bureaucrat.- Elucidate.
15.compare Chief Secretary vs Cabinet Secretary. 30
State
1.''The dispute between Secretariat and Directorate is the result of Generalist us Specialist controversy." Analyse. 60
2) district administration is like a small tortise carrying the load of an elephant. discuss.
3) discuss the problems in the planning process at the state & sub-state levels.
4) the chief minister is the real executive of the state, whose effectiveness is largly related to his personality trait & equation with central leadership. explain & illustrate with relevant examples. 60mks.
5.The District Collector, the additional Deputy Commissioner and Sub-Divisional Officer, have virtually become ‘officers-in-attendance’ and have lost initiative and independence of judgement . Comment. 60
6. "The Chief Minister symbolizes ruling power structure and is the real executive
head of the State Government." Discuss the above statement in the light of his
position in a Coalition Government.
7."The primary emphasis in District Administration has to be on implementation of development programmes in cooperation with active support of people." Elucidate.
8."The District Collector is an overburdened officer due to the expansion and
increasing developmental activities."
9."district collector has increasingly become multi dimensional".
10) "It is at the district level that the common man comes into direct contact with the administration." Elucidate. (30 x 2 = 60)
(11) "Collector is the representative of the state government in the district and also represents public interest". Comment (30).
(12) "It is a major challenge to balance the role of District Collector with the powers of democratic bodies."
13) "In the Chief Secretary, the State Government has an officer whose counterpart does not obtain in the Union Government.' Elucidate.
14."Maintenance of law and order is a State subject but the Union Government can deploy armed forces in any State."
15."It is a major challenge to balance the role of District Collector with the powers of democratic bodies."
16."In the Chief Secretary, the State Government has an officer whose counterpart does not obtain in the Union Government.' Elucidate.
17) . “Law and order problems of the twenty first century cannot be tackled through legislations and structures of the nineteenth century.” Give suggestions for transforming the law and order machinery at the State level. 30
18). Discuss the relationship between governance and development in any one Indian state , giving illustrations. 30
19. Do state Services suffer in comparison with All India and Central Services ? Suggest measures for enhancing the role , competence and impact of state services. 30
20)What measures have been taken by the Union and the States for the Welfare of women in the profession of sex?
(21)What concrete steps have been taken by the Union and the State Governments to protect child labour and prevent abuse of children?40+10+10=60
22."Women's development programs of recent have shifted from welfarist approach to empowerment of women". Elaborate (60).
23) "Reservation policy and its implementation has had some positive impact in relative terms on the socio-economic development of the SCs and STs but it is very meagre in absolute terms. Comment.
Constitution
1."The President of India acts like grandparent in a family. If younger generation does not follow his/her advice, he/she is just unable to do anything." Comment.
2."Because of several judicial pronouncements, Governors in States are no longer viewed as agents of the 'Party in Power' at the Central level." Evaluate.
3.The role played by the National Human Rights commission in Maintaining and preserving dignity of India’s citizens has been satisfactory and up to the expectations. Elucidate. 60
(4)Not the Potomac, but the Thames, fertilizes the flow of Yamuna. In the light of the statement comment on the symbolic institution of the President of India.
5.Indian Prime Minister should not only be accountable to the Indian Parliament but should appear to be so. Comment on the accountability of the Prime Minister to the Indian Parliament in the context of extra-constitutional power. 60
6)The basic values of the Constitution of India enshrine social, political and economic philosophy symbolizing sovereignty of the people, rule of law and basic characteristics of a socialist, secular, democratic republic. comment.
(7)By taking some offices out of the jurisdiction of the Office of Profit Act, the Government of India has doubly assured the public mind of its duplicity. Comment.
8.The main problem of Centre-State relations in India is bottlenecks in fiscal federalism. Comment. 60
(9) "The veto-power of the Indian President is a combination of the absolute,suspensive and pocket veto."
10."The role played by Central and State Governments in maintaining law and-order is inadequate and unmatched to growing criminalization."
(11) "National Development Council is criticized as an usurping authority -functioning as a virtual supercabinet." . 30 x 2 = 60
12.What is judicial activism? How far has it been successful in exercising a check over administration? 60
(13) "Though India emerged as a sovereign state after independence, the administrative system remained the same as was during the British period".
14. "Looking back to our past experience, the fear that the emergency provisions can be misused have at times proved right and wrong at other times. Discuss with examples. (60)
15) "Article 163 makes the governor the sole judge in matters in which he is required to act in his discretion." Explain.
(16) "Criminalization of politics in India has been extended to politicization of criminals. Comment.
(17) Indian federalism is described as federal in form but unitary in spirit.
Analyze the constitutional political and operational dimensions of employer-employee relations. What are your suggestions to bring about a satisfactory relationship between them? (60)
(18) "National development council has virtually become a super-cabinet and tries to arrogate itself the functions of parliament.
(19) "National Development Council, it seems, is like a super-Cabinet."
20"Indian Constitution confers vast legislative powers on the President."
(21) Judicial control over administration in India and concept of judicial activism. 20
22."Maintenance of law and order is a State subject but the Union Government can deploy armed forces in any State."
23). “ Value of Indian administration must be rooted in the Preamble of the Indian Constitution.” Discuss. 30
24). “Many of the programmes of development being implemented at the state and the local level have been initiated or financed by the Union Government. This has transformed the nature of Indian federalism.” Critically examine this asessment. 30
25. “ The National Human Rights Commissions has done a commendable job in developing job in developinga sense responsibility among organization towards the protection of human rights.” Comment on this assessment. 30
Local Administration
26."73rd Constitutional Amendment has provided permanent structural framework to PRI's resulting into silent social revolution." Comment. 60
27.''In spite of having Constitutional status the District Planning Committee is not able to implement decentralized planning due to centralized nature of economic planning." Comment.
28.economic development & social justice are the hallmarks of the 1992 constitutional amemndment acts. elucidate.
29.in urban governance, uni-funtional agencies & development authoritiesz create a "functional jungle. explain.
30.what are the basic hurdles & pitfalls in the implementation of the national rural employment guarantee act?
31.new localism is identifies with the new local-state & local activism. examine how this has impacted city management in india.
(32)The 73rd and 74th Constitutional Amendments are major landmarks in India’s Constitutional History and Local Governance. Comment.
33. "Even after a decade of having adopted the 73rd Amendment to the Constitution,
the Panchayat Raj institution still faces a number of problems towards making it a
strong and vibrant unit of Government." Comment.
(34) "Rural and urban development programs have gained in importance, but implementation has been a failure."
35. The role of local self-government in the state administration is of considerable importance. Evaluate the statement in the context of the 73rd and 74th amendments made. (60).
36.“ Sound municipal governance requires a cadre of specilised municipal services executives equal in status to state services.”
Adjudication
37.Today the content of administrative law is driven primarily by the scope of public administrative activity. Explain. 60
38."Today the content of administrative law is driven primarily by. the scope of
public administration activity." . 60
39. "dicey was wrong not only in his concept of the rule of law, but he also overlooked the significance of the administrative law". - Comment.
40.Effectiveness and utility of Central and State Administrative Tribunals. 20
International
1."The value premises of our constitution in the era of global constitutionalism."
2."the machinery for welfare administration at the national and state level trickling down to grassroots becomes meaningless in the context of global constitutionalism. - Discuss (60)
3. Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21st century?
4.Do you agree that globalization, liberalization and privatization policies are going to change the very fabric of Indian Administration? What, according to you, are the major challenges before it in the 21st century?
Distaster of Management
b1. in india, there appears to be more disaster of management than management of disaster. comment.
2.“ India has failed to devise a long term strategy for drought management.”
This excellent job done by Mrunal Patel
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