The Prayas ePathshala

Exams आसान है !

16 August 2022

MAINS DAILY QUESTIONS & MODEL ANSWERS

Q1. Discuss the issues associated with the mechanism of Social Audits. (250 words)

Paper & Topic: GS III àEnvironmental Conservation related issues.
Model Answer:

Why Conduct a Social Audit?

Social audits are a method by which a company or government informs its constituents about its social performance and works to improve its upcoming social performance. The concept was first put forth in 1972 by Charles Medawar.
A social audit can help you bridge the gap between your ideal situation and the actual situation, as well as between effectiveness and efficiency. It helps us to evaluate, confirm, document, and improve the social effects of any government effort or institution. A social audit and a development audit are not the same things. A social audit focuses on the frequently ignored subject of social consequences, whereas a development audit has a broader focus that includes environmental and economic issues, such as the effectiveness of a project or program. This is the main distinction between a social audit and a development audit.

Fundamentals Of Social Audit:

Complete openness in the administration and decision-making processes, with a duty on the part of the government to proactively provide the public with unrestricted access to all pertinent information.
Participation: The right-based right of all affected individuals, not just their representatives, to take part in the decision-making and validation processes.
Representative Participation: The right of the affected parties to provide informed consent as a group or as individuals, if appropriate, in situations when options are predetermined out of necessity.
Accountability: Immediate and open accountability of elected officials and other government employees to all parties involved and impacted by their relevant actions or inactions.

Significance of social audit:

SA eliminates leaks and corruption by exposing irregularities and wrongdoing in the public sector by closely monitoring government processes.
It evaluates the social and ethical impact of an organization and offers commentary on its operations.
SA fills the trust gap between residents and local governments by ensuring that local government officials are responsible and transparent in their activities.
They are encouraged by SA to take part in development efforts for program execution and become more receptive to social interaction.
Because of SA, the Gram Sabha, the center of rural governance, has a voice and sway.
lays the groundwork for establishing management policies by putting out requests in a way that is accountable and socially responsible.
By mandating Panchayats to maintain sufficient records and accounts of expenditures made against funds from the government and other sources, SA enhances the professionalism of the public sector.

Challenges/Problems With Social Audits:

In several states, Gram Panchayats are not required to provide Social Audit Units (SAUs) with records pertaining to work completion and expenditures (CAG report), and Gram Sabhas are not provided with social audit reports in their native tongues.
Auditors are subject to implementing agencies that face resistance and intimidation and struggle to even get access to original data for verification because the government has not regulated the institutionalisation of SA.
Some SAUs must obtain permission from the project implementation agency before using funds.
Many governments do not adhere to the transparent selection procedure for the director of the SAU as specified in the requirements.
Several SAUs do not have enough personnel to cover all of the panchayats even once a year.
Because there are no fines or legal repercussions for breaking SA rules and guidelines, SA is a pointless endeavour.
Due to ignorance, members of the Gram Sabha are unaware of their legal entitlement to social audits.
Government agencies rely on an ambiguous and imprecise system of referencing government accounts and government reporting methods to track the progress of a plan, making it challenging for auditors to take stock, accelerate, decelerate, or implement corrective actions.
The lack of participation in village activities is a result of people’s worries about their livelihood.

Steps That Must Be Taken:

The political administration and implementing agencies must be held to account by citizens’ groups, who must fight for the improvement of social audits.
A group of social audit specialists should be assembled in each district to instruct the committee members (stakeholders).
It is important to create training programs on social auditing practices like conducting and writing social audit reports, as well as presenting at Gram Sabha.
For the system of social audits to become an institutionalized structure that cannot be challenged by vested interests, it needs widespread support and encouragement from several authorities.

Q2. Discuss the mechanism of the Special Economic Zones in detail. (250 words)

Paper & Topic: GS III àEnvironmental Conservation related issues.
Model Answer:

Special economic zones: what are they?

With the aim of luring investment and generating jobs, an SEZ is a region of a nation that is often duty-free (Fiscal Concession) and has its own set of economic and commercial regulations.
Additionally, SEZs are created to enhance these regions’ governance and facilitate business.

The SEZ Act’s goals are as follows:

So as to increase economic activity.
To boost the volume of exports of products and services.
To open up employment options.
In order to boost both domestic and foreign investment.
Infrastructural facilities to be built.
The establishment, operation, and upkeep of SEZ units might use domestic or duty-free imported goods, among other incentives and facilities.
exemption from taxes like the minimum alternate tax and the income tax, among others.
There are no maturity limits on the external commercial borrowing by SEZ units of up to USD $500 million per year through reputable banking channels.
There is one-window clearance for central and state-level approvals.

Indian SEZs:

Kandla, Gujarat, became Asia’s first EPZ in 1965. (Export Processing Zone).
Although the foundation of these EPZs was similar to that of SEZs, the government began creating SEZs in 2000 as part of the Foreign Trade Policy to address the infrastructure and administrative barriers that were seen to be restricting EPZ performance.
The Special Economic Zones Act was adopted in 2005. The Act and the SEZ Rules became effective in 2006.
SEZs, on the other hand, ran from 2000 to 2006 in India.
The design of India’s SEZs closely resembled China’s highly effective model.
Currently, 265 of the 379 SEZs that have been notified are open for business.
Five states—Tamil Nadu, Telangana, Karnataka, Andhra Pradesh, and Maharashtra—comprise about 64 percent of the SEZs.
The Board of Approval, which is headed by the Secretary of Commerce, is the supreme body (Ministry of Commerce and Industry).
In order to assess India’s current SEZ policy, the Ministry of Commerce and Industry assembled a committee under the direction of Baba Kalyani. In November 2018, the group presented its recommendations.
Its main objectives are to assess SEZ policies to ensure that they are WTO (World Trade Organization) compliant and to introduce international best practises to maximise capacity utilisation and potential output of SEZs.

So far, the performance:

Exports: In 2006–07, they increased from Rs. 22,840 crores in 2005–06 to Rs. 7,59,524 crore. (2020-21).
From Rs. 4,035.51 crore in 2005–2006 to Rs. 6,17,499 crore in 2007–2008, there was investment (2020-21).
Employment: There are presently 23,58,136 individuals employed, up from 1,34,704 in 2005-2006. (2020-21).

Challenges:

Undeveloped land:

Unutilized land exists in SEZs as a result of the pandemic’s interruptions and a lack of demand for SEZ space.

Various Models:

SEZs, coastal economic zones, the Delhi-Mumbai Industrial Corridor, the National Investment and Manufacturing Zone, food parks, and textile parks are just a few examples of the diverse economic zone models that exist. All of these models struggle to integrate the different models.

Threats from ASEAN nations:

Numerous ASEAN nations have changed their laws in recent years to encourage international companies to join in their SEZs and work on a growing number of skill-building initiatives.

Special Economic Zones’ advantages include:

They raise FDIC’s foreign direct investment (FDI).
Special Economic Zones boost revenue from foreign exchange.
They contribute to the creation of jobs.
They support the testing of novel policies.
Exports rise as a result of special economic zones.
They help the economy grow.

Recommendations of the Baba Kalyani Committee:

Change in emphasis from export growth to broadly based Economic Growth and Employment (Employment and Economic Enclaves-3Es).
For manufacturing and service SEZs, separate standards and guidelines are being developed.
Change the 3Es development approach from being supply-driven to being demand-driven, depending on specific sectors and the current level of existing inventory in the area, to boost investment efficiency.
Aligned with governmental objectives, the Ease of Doing Business (EoDB) framework in the 3Es. There is one integrated web platform for new investments, operating needs, and exits.
Increase competitiveness through investing in utility infrastructure, business services, and high-speed multi-modal connectivity to enable ecosystem development. Support for the construction of high-quality infrastructure, including high-speed rail, fast motorways, passenger/cargo airports, shipping ports, and warehouses, within or connected to the zones is essential.
Encourage individuals to stroll to work areas to promote integrated industrial and urban development. To create a framework that ties all of the initiatives together, the federal government and the states should collaborate.
To address operating and exit issues, processes for developers and tenants should be relaxed.
Extension of the Sunset Clause and maintenance of benefits related to taxes or duties
Increase the number of services that can collaborate by extending the definition of services.
Included are additional enablers and procedural easings.
There is a one regulator for the IFSC.
utilising the Multi Services SEZ IFSC for all incoming and outgoing foreign investment.
Institutions from within the country are given incentives to use the IFSC SEZ’s services.
Extension of benefits related to services Plan to encourage exports.
enabling non-traditional industries to invest in 3Es and SEZs targeted to particular industries
Flexibility in long-term leases for both landlords and tenants.
Customers from outside the 3Es/SEZs are free to subcontract at any level and without restriction.
The “Make in India”-supporting domestic suppliers will be considered while calculating NFE.
Export tariffs shouldn’t apply to products that are given to developers and used in the production of goods that are exported.
The way that developers employ NPA and the way that they sell space to investors or individual units is more flexible.
Infrastructure needs to be in good shape in order to increase loan availability and make long-term borrowing easier.
Encourage MSME participation in the 3Es and grant permission for manufacturers and service providers to set up shop there.
Disputes are settled through business courts and arbitration.