26 February 2024

MAINS DAILY QUESTIONS & MODEL ANSWERS

Q1. Federalism is being reaffirmed at the same time that India’s politics are witnessing a centralising move. Knowing the normative foundations of local self-governance is crucial because it encourages greater democracy because more accessible governments make it easier for citizens to participate in public affairs. Examine.

GS II – Federalism-related issues

Introduction:

• Parliament enacted the 73rd and 74th constitutional amendments in December 1992, establishing municipalities and panchayats, respectively. These amendments required State governments to establish municipalities (as municipal corporations, municipal councils, and nagar panchayats) and panchayats (at the village, block, and district levels) in every region. Their goal was to establish a third level of government within the federal structure by giving local governments more authority, resources, and personnel.
• But even in the modern day, very few states have delegated authority as intended under local self-government, and governance is still very centralised.

Local governance’s significance in India:

• Economic Development And Social Justice: First and foremost, one of the key tenets of democracy has been the idea of decentralisation or self-governance. Decentralisation was conceived with the broad goal of promoting social fairness and economic growth from the bottom up. The community’s institutions, locals, and the business community collaborate to strengthen the local economy.
• Diverse solutions: It is a well-known truth that residents of a given location have a greater awareness of the issues that affect them. As a result, these individuals might come up with better ways to overcome the political, cultural, and socioeconomic issues they encounter. Utilising resources wisely and effectively is the first step in resolving current issues.
• Increasing Community Development Prospects: Different regions’ overall community development is enhanced by high levels of community participation. Restoring democracy and removing barriers to policy execution require community development.
• Improved Civic Amenities: Better services for the people are made possible by a certain amount of collaboration between the local administration and the populace. The fragmented local development is a prerequisite for national development. Therefore, a country’s overall development is a function of the local level improvements in civic amenities.
• More Participatory: By enabling local representatives to be chosen by their constituents, local bodies enable residents to actively engage in democratic decision-making. It promotes the notion of a robust democratic society with watchful and engaged citizens. It is crucial to remember that all marginalised groups ought to have equal access to platforms for expressing their dissent or political beliefs.
• Women Leaders And Politicians: By reserving seats, local governments can encourage women to run for office and become political actors. Additionally, a certain percentage of seats are set aside for Scheduled Tribes and Scheduled Castes. In this manner, minorities’ interests can be protected by the third tier of our system.
• Improved Transparency in the Center’s Operations: Local governments are frequently viewed as a liaison between various communities and the federal government. The intermediary between the two ends is the institution. The government makes its policies and programmes known to the general public. On the other side, the Union government is informed of the demands of the people.
• Improved Infrastructure: Local governments serve as a platform for expressing political demands on society in addition to being the central government’s subsidiary. At the local level, it is also in charge of providing people with basic necessities like power, sanitary facilities, and a sufficient supply of water.
• Increased Accountability: Locals frequently experience a sense of political alienation as a result of state governments’ slow response times and lax accountability. Greater responsibility to the government authority and inclusivity are promoted by the devolution of power to the regional and district levels.

Committees throughout time:

• Zilla Parishad and Mandal Panchayat are the two tiers of the Panchayat Raj institutional framework that was recommended by the Ashok Mehta Committee in 1977.
• The K. Rao Committee (1985) suggested having regular elections and designating the “district” as the fundamental planning unit.
• The Singhvi Committee (1986) suggested giving the panchayats greater financial resources and constitutional standing in order to strengthen them.
• Parliament ratified the 73rd and 74th Amendments to the Constitution in December 1992. Both rural and urban areas of India now have local self-governance thanks to these modifications.

The fundamentals of local self-government that need to be respected:

• The 2nd Administrative Reform Commission’s (ARC) sixth report contains recommendations that can be put into practice to improve the efficiency and effectiveness of Panchayati Raj institutions.
• A long-term solution can be found in true fiscal federalisme, which combines budgetary autonomy and fiscal accountability.
• The 2nd ARC had suggested that the responsibilities of each level of government be clearly defined.
• Additionally, through enabling guidelines and support, the 2nd ARC proposed that state governments encourage local authorities to outsource specific services to public or private organisations as may be suitable.
• Training that is both comprehensive and holistic necessitates the knowledge and resources of multiple subject-specific training institutions.
• The most effective way to do this is by “networking” institutions that work on different topics like general management, financial management, rural development, and catastrophe management.
• The State Governments may establish audit committees at the district level to supervise the accuracy of financial data, the sufficiency of internal controls, adherence to relevant legislation, and the moral behaviour of all members of local organisations.

Future plan of action:

• It is imperative to improve the socioeconomic and health status of the villagers’ beneficiaries through efficient connections with local, national, and other developmental organisations in order to achieve a comprehensive transformation in their life.
• People should prioritise a decentralisation agenda in their advocacy and demands for sustainable decentralisation. In order to meet the desire for decentralisation, the framework must change.
• The division of responsibilities must be done clearly, and local governments must have reliable and transparent funding sources.

Q2. Corporate social responsibility (CSR) funds have the potential to be a vital source of funding to close the development gap in the northeastern area of India. Analyse.

GS II – Government Policies and Interventions

Introduction:

• In general, “corporate social responsibility” refers to an endeavour by businesses to evaluate and accept accountability for their effects on the environment and social welfare.
• In India, the Companies Act of 2013’s clause 135 governs the idea of corporate social responsibility. India is the first nation in the world to have both a framework for identifying possible CSR activities and a mandate for CSR spending.

North East India’s current state:

• The Northeast is home to more than a hundred distinct ethnic communities, each with a strong sense of self.
• They also wish to maintain this distinctiveness in their social and political philosophies.
• A violent uprising against a political organisation is what is known as an insurgency, which occurs when ethnic communities believe their rights have been violated and their representation is inadequate.
• The Northeast’s high insurgent prevalence has had a detrimental effect on the region’s peace prevalence.
• This has detrimental effects on the nation as a whole in addition to the socioeconomic development of the area.

North East India and CSR:

• In 2020–21, CSR funds of Rs. 1 trillion were amassed. Less than one percent of this went to the eight Northeastern states.
• A pamphlet distributed at a recent workshop in New Delhi by the Federation of Indian Chamber of Commerce and Industries (FICCI) states that the total amount of money raised under the CSR in 2020–21 will be an incredible Rs 1 trillion, or Rs. 1 lakh crore.
• The pamphlet further mentions that of this total, the eight northeastern states (including Sikkim) only received Rs. 196.39 crore, or less than 1%.
• Only Rs. 10.3 crore of this total, from 42 different companies, was received by a state like Manipur during the financial year, according to the Government of India’s CSR website.

Advantages of Corporate Social Responsibility:

• The corporate and social sectors are linked through corporate social responsibility.
• Maintains Trusteeship: CSR offers an organisation the opportunity to make a positive impact on the nation, the environment, society, and so forth.
• Encourage Relationships: Life’s oxygen comes from relationships. It raises the business’s “social quotient,” which helps it attract customers with its product. An ex-Lifebuoy soap opera triumph
• It gives the company’s image a moral, responsible quality, aids in the justification of its expansion and product, and forges a unique identity for it in the eyes of the public. For instance, the Godrej group’s Nanhi Kali project.
• Competitive advantage: Companies that demonstrate a higher level of social responsibility than their rivals typically stand out. Studies indicate that a robust corporate social responsibility track record enhances customers’ perceptions of the business. By comparison, the TATA group is very popular with the public compared to its rivals. Compared to other brands, the Classmate notebooks, which donated one rupee to social welfare, became more popular.
• Boosts morale among employees: CSR actions have a big influence on workers’ spirits since they give them more faith in the company’s compassion.
• A company’s participation in CSR initiatives will give it a favourable reputation with the government. The company’s reputation is improved in the eyes of the government by its proactive participation in implementing government flagship programmes like the Swaccha Bharat Mission.
• Encourages Socio-Economic Development: Businesses that participate in corporate social responsibility (CSR) initiatives draw in foreign investment and provide the nation with vital foreign exchange. Socioeconomic development efforts follow from this.
• Draws Foreign Direct Investment (FDI): Companies that participate in CSR initiatives draw in foreign capital and provide the nation with vital foreign exchange.

Concerning CSR issues:

• Finding the proper Partners: Finding the proper partners and projects, as well as choosing those that are self-sustaining, scalable, and have a long-term impact, continue to be issues despite increased awareness of the need of CSR compliance.
• Absence of Community Participation in CSR Activities: The local community does not seem interested in taking part in or making contributions to corporate social responsibility initiatives.
• This is mostly due to the lack of significant attempts to raise awareness of corporate social responsibility (CSR) among the local populations, which has resulted in little to no knowledge of the concept.
• A lack of contact between the firm and the local community exacerbates the situation even more.
• Transparency difficulties: The corporations have expressed concerns about the local implementing agencies’ apparent lack of transparency, including their insufficient attempts to share information about their programmes, audit issues, impact assessments, and budget utilisation.
• The process of developing trust between businesses and local communities—which is essential to the success of any CSR project at the local level—is negatively impacted by the alleged lack of openness.
• Lack of Well-Organized NGOs: In remote and rural areas, it is difficult to find well-organized non-governmental organisations (NGOs) that are able to evaluate and identify the true needs of the community and collaborate with businesses to successfully execute corporate social responsibility (CSR) initiatives.

Way forward:

• In addition to providing funding, the companies must also regularly assess the state of their CSR compliance and implement steps for a more polished approach. Also, they should define clear objectives and align all the stakeholders with them.
• Informing their NGO partners of their commercial demands is equally crucial.
• The latter should know that corporations which award money from their CSR expenditures are honest about the causes they pick.
• The Companies must alsorefresh the roles of Board, CSR Committee, CFO and set-up new SOPs including a defined process for fund utilisation, establish applicability of impact assessment, prepare a full checklist of processes with the owners and dates and formulate an annual action plan.
• The government must verify that the actions mentioned in the CSR Policy of a corporation are implemented by it.
• It is also the responsibility of the government toaddress the issues of non availability of the NGOs and create awareness in the society about the significance of the CSR and its activities.
• The government plans to use technology tools such as Artificial Intelligence and Machine Learning to do data mining of the mandated reports to bring changes to its policy on CSR.
• Leveraging technology to better the monitoring of India Inc is great, but this should be applied to the financial and governance elements of corporations before moving on to their social commitments.