The HINDU Notes – 26th November 2020 - VISION

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Friday, November 27, 2020

The HINDU Notes – 26th November 2020

 

📰 Nutrition portal to monitor services at anganwadis down for nearly three months

Snag comes amid rising levels of hunger and poverty. Some States have developed their own software modules


•A massive nutrition portal developed by the Bill and Melinda Gates Foundation (BMGF), which is used by the Centre as well as most States, and touted as the world’s biggest nutrition system, to record and monitor delivery of services to children and mothers across nearly seven lakh anganwadis has been down for nearly three months, several State governments have confirmed.


•The snag comes as a setback at a time there is a call for the need to intensify efforts to identify mothers and children in need of nutritional interventions due to rising levels of hunger and poverty. The software was developed under the Poshan Abhiyaan approved by the Cabinet in 2017 with a three-year budget of ₹9,000 crore, half of which was for ICT-based real-time monitoring system. While 50% of the amount is funded by the government budgetary support, the remaining 50% is a loan from the World Bank.


•“The ICDS-CAS server is down and we have written to the Central government to rectify it. It has been down for almost two months and we have requested for it to be rectified. But we continue to deliver dry rations to the beneficiaries,” Kavitha Ramu, ICDS chief for Tamil Nadu told The Hindu.


•POSHAN Abhiyaan’s Integrated Child Development Services Common Application Software (ICDS-CAS) is an innovative web and mobile-phone based application to improve service delivery and programme management. The application facilitates anganwadi workers (AWWs) in their daily tasks, helps supervisors to assess and provide feedback to the workers and helps other programme officials to track service delivery and take informed decisions. The ICDS-CAS has three components — a mobile-based application for AWWs, a mobile-based application for supervisors and a web-based dashboard for other programme officials.


•It is reliably learnt that the server issue surfaced after the government insisted that the BMGF and its collaborator, US based Dimagi, host India's public data with an Indian service provider leading to issues in managing capacity to anchor such a vast data. India has total 14 lakh anganwadis and nearly 10 crore ICDS beneficiaries. A query sent to the BMGF remained unanswered till the time of going to print.


•“The server issue has hampered real time monitoring of services,” said an official of Gujarat. How were then they tracking activities? The official replied that the State has developed its own software modules. The source also said there were also difficulties in accessing data from the portal much before the server problem, because of which they have developed their own tools. Sources also say lack of convergence between Health Ministry’s and ICDS CAS has led to many States being less enthusiastic in the latter.


•On the ground, in Rajasthan’s Churu, at the Child Development Project Office, block co-ordinator Manju Kumar explains what this means for their activities. “No monitoring activity is possible through the CAS now. We have shifted to WhatsApp. If CAS was used to upload photos of anganwadis worker opening the centre, or while serving food to the children, we now use WhatsApp to keep an eye on these activities and share photos.”


•The software also helps in calculating incentives given to workers for each tasks, but in its absence these have been pending since September despite the responsibilities of anganwadi workers increasing manifold due to the pandemic. They now go house to house spreading awareness about symptoms and precautions, identifying COVID-19 positive cases and even ensuring safety at events like panchayat elections.


•“Children are already extremely vulnerable with respect to their health and nutrition due to the impact of disruptions in services. Now, if the news is correct about the ICDS-CAS being down for three months, it is a further avoidable disaster. Poshan Abhiyan is exerting a strong centralisation as well as push for technology-driven, data centric interventions. But this is precisely what the risks are with centralised approaches,” Dr. Vandana Prasad, Joint Convenor of People’s Health Movement India and a member of the Steering Committee of the Right to Food Campaign.

📰 MHA issues new Covid guidelines

•The guidelines which will be effective from December 1, were released amid a recent spike in Covid-19 cases across several states and union territories (UTs) after the festivities and start of the winter season.


•The Union home ministry on Wednesday issued a fresh set of guidelines with regard to the surveillance, containment and caution in the wake of coronavirus disease (Covid-19) pandemic which has affected over 9.22 million people across the country.


•The guidelines which will be effective from December 1, were released amid a recent spike in Covid-19 cases across several states and union territories (UTs) after the festivities and start of the winter season. The states and UTs, according to the situation, can impose local restrictions with a view to contain the spread of Covid-19, the home ministry in its release said.


•For containment zones, the ministry has only allowed essential activities along with intensive house-to-house surveillance. There will be a strict perimetre placed to ensure there is no movement of people inside or outside the containment zones except for medical emergencies and for maintaining supply of essential goods and services. Other such regulations include quick isolation of Covid-19 infected patients either at home or at treatment facilities.


•The ministry has allowed conduction of all other non-essential activities outside containment zones.


However, certain activities are only allowed with the following restrictions: 


1. International air travel of passengers, as permitted by the Union home ministry (MHA).

2. Cinema halls and theatres, with up to 50 per cent capacity.

3. Swimming pools, only for training of athletes.

4. Exhibition halls, only for business to business (B2B) purposes.

5. Social, religious, sports, entertainment, educational, cultural, religious gatherings with up to a maximum of 50 percent of the hall capacity, with a ceiling of 200 people in closed spaces; and keeping of the size of the premises in view, in case of open spaces. States and UTs may reduce the ceiling to 100 people or less, in closed spaces.


For all such activities outside the containment zones, states and UTs would be required to follow the Covid-19 appropriate behaviour norms issued by the ministry which are as follows: 


1. States and UTs shall take all necessary steps to promote Covid appropriate behaviour and ensure strict enforcement of wearing face masks/coverings, social distancing and hand hygiene.

2. To enforce the most crucial requirement of wearing face masks/coverings, states and UTs may consider administrative actions including imposition of fines for those people who do not follow the regulation in public and work spaces.

3. For observing social distancing in crowded places - mostly in markets, public transports and weekly bazaars - the Union health ministry would issue a Standard of Procedure (SOP) which should be strictly followed by all states and UTs.

📰 Govt. allots ₹2,000-cr. for infra funding

Cabinet approves up to ₹6,000-crore of equity infusion into NIIF’s platform by 2021-22


•The Cabinet on Wednesday approved the infusion of ₹6,000 crore as equity into a new debt platform to raise up to ₹1.1 lakh crore for financing infrastructure projects by 2025.


•Of the ₹6,000-crore equity to be injected by 2021-22, the Cabinet has approved ₹2,000 crore for disbursal this year subject to the funds being required.


Stimulus measure


•Finance Minister Nirmala Sitharaman had announced the plan to provide equity capital to the debt platform sponsored by the National Investment and Infrastructure Fund (NIIF), as part of the last round of stimulus measures announced on November 12.


•“In view of the unprecedented financial situation and availability of limited fiscal space due to the prevailing COVID-19, the proposed amount may be disbursed only if there is readiness and demand for debt raising,” the government said in an official statement detailing the Cabinet’s decision.


•Stressing that the decision would strengthen India’s bond markets, Union Information and Broadcasting Minister Prakash Javadekar said that another ₹7,000 crore would be raised as equity for the debt platform, with the bond markets set to be tapped for ₹1 lakh crore.


Global capital


•The Cabinet had asked the NIIF to take all necessary steps to use equity investments from domestic and global pension funds and sovereign wealth funds expeditiously. Ms Sitharaman had said earlier this week that several sovereign wealth funds had evinced interest in availing the tax concessions offered for them to invest in the country.


•“The NIIF’s infrastructure debt financing platform is expected to contribute almost ₹1 lakh crore in debt to the infrastructure sector over the next five years,” the government said.


•“This will act as a catalyst in attracting more investments into the infrastructure sector as envisaged in the National Infrastructure Pipeline,” it said, adding that this would help free up space for banks to lend to new greenfield projects.


•“It is expected that a well-capitalised, well-funded and well-governed NIIF debt platform can play a major role in infrastructure financing and development of bond market in India by acting as a AAA/AA-rated intermediary between the bond markets and infrastructure projects and companies,” the government observed.

📰 Cabinet okays merger of LVB with DBS Bank India

Moratorium lifts on Nov. 27, says RBI


•The Cabinet on Wednesday gave the green light to the merger of troubled Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd. (DBIL), paving the way for lifting of restrictions placed on withdrawals from the bank.


•Union Information and Broadcasting Minister Prakash Javadekar said that the merger would secure the interests of LVB’s depositors as well as protect the jobs of its employees.


•“20 lakh depositors and ₹20,000 crore of deposits are secure. The Reserve Bank of India (RBI) has been told to act against those who brought the bank to the brink of closure,” the Minister said, briefing reporters after the Cabinet meeting chaired by Prime Minister Narendra Modi. “Liability will be fixed and those who have made mistakes will be punished,” he added.


•LVB had been placed under moratorium on November 17 and withdrawals were restricted to ₹25,000 a month for each account holder, based on an application by the RBI to protect depositors’ interests. The central bank, in consultation with government, had also superseded LVB’s board and appointed an administrator.


•“After inviting suggestions and objections from the public and stakeholders, RBI prepared and provided a scheme for the bank’s amalgamation for the government’s sanction, well in advance of end of the period of moratorium so that restrictions on withdrawal faced by the depositors are minimised,” an official statement said.


•“With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this there will no further restrictions on the depositors regarding withdrawal of their deposits,” it added.


•Stressing that the combined balance-sheet of DBIL, a subsidiary of the Singapore-headquartered financial services group DBS, would remain healthy even after amalgamation, the statement said the “speedy amalgamation and resolution of the stress in LVB is in line with government’s commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system.”


•Separately, the RBI on Wednesday notified that LVB’s branches would operate as DBS Bank India branches with effect from November 27.


•“The Government of India has sanctioned the scheme for the amalgamation of the Lakshmi Vilas Bank Ltd. with DBS Bank India Ltd. The amalgamation will come into force on the Appointed date i.e. November 27, 2020,” the RBI said.


•“All the branches of the Lakshmi Vilas Bank Ltd. will function as branches of DBS Bank India Ltd. with effect from this date,” the RBI said. “Customers, including depositors of the Lakshmi Vilas Bank Ltd. will be able to operate their accounts as customers of DBS Bank India Ltd. with effect from November 27,” it added.


•Consequently, the moratorium on LVB will cease to be operative from that date, the RBI said.


•DBS Bank India is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Lakshmi Vilas Bank Ltd,” it added.

📰 Refining trade union strategies to strike a chord

With labour law reforms set to change industrial relations, trade union responses must include social dialogue too


•Ten central trade unions (CTUs) have called for a nation-wide strike on November 26, 2020 to condemn what they consider to be the anti-people, and anti-labour economic policies of the government. This follows strikes in the coal and defence sectors protesting privatisation and the corporatisation policies of the government. It is essential to understand as to why the central trade unions have decided to go on strike today.


Codes and flaws


•With the introduction of economic reforms concretely since 1991, employers and the global financial institutions have been lobbying for labour market and structural reforms. The reform processes gained momentum since 2015 and the National Democratic Alliance government has enacted four Labour Codes in the last two years. The details of the labour law reforms have been described and critically analysed in the columns of this daily. The Codes are based on the fundamental unproven premise that labour laws and inspection system are obstacles in attracting investment, and, hence the government must promote a cheaper and flexible labour market.


•The Codes do extend some labour rights such as universal minimum wage, statutory recognition of trade unions, formalisation of employment contracts, and social security to gig and platform economy workers. However, they also afford substantial flexibility to the employers in terms of easy hire and fire, freedom to hire contract labour and unregulated fixed-term-employment, etc. The Codes have also considerably redefined the concept and practice of labour inspection system by diluting it. The Codes and state retrenchment in the industrial sector and fiscal conservatism — especially in the context of higher levels of unemployment — along with stubborn inflation have created tremendous insecurity among workers. Migrant and informal workers underwent woeful experiences during the COVID-19 period, and trade unions as well as commentators perceive that the state has not provided adequate relief to workers.


Crisis and reforms


•The central government and several State governments had chosen the COVID-19 crisis-ridden period as an “opportune time” to enact labour law reforms having far-reaching adverse consequences for labour rights and structural reforms. It is galling to note that the COVID-19 period has witnessed perhaps a maximum amount of legal and extra-legal measures issued by the state.


•In such a context, trade unions have six options to confront or soften these measures — viz. social dialogue, political lobbying, political confrontation through Opposition parties, legal action by approaching the judiciary, seek the International Labour Organization’s intervention, and direct industrial action.


•The central government, as per trade unions, did not conduct an effective and sustaining social dialogue, though it held a few symbolic parleys with them. At the State level, social dialogue institutions are largely absent or weak. The last Indian Labour Conference, a tripartite social dialogue body, was held in 2015. The government has dismissed social dialogue as being ineffectual and even frustrating.


•The Central trade unions, including the Rashtriya Swayamsevak Sangh-affiliated trade union, the Bharatiya Mazdoor Sangh, have made numerous representations to the government on their demands and suggestions not only relating to labour market reforms but also on tackling of COVID-19 crises. Who else is better suited to advise the government than the workers’ organisations on these issues? Trade unions contend that many of their suggestions have not been incorporated in the Codes and the COVID-19 relief measures.


•The whole political exercise of the passage of the Farm Bills and the three Labour Codes during the COVID-19 period smacks of “un-democracy” as Parliament did not witness “healthy discussions”. The boycott by the Opposition parties ended up serving the cause of reforms, and they wittingly or otherwise became partners in the reform exercises. At any rate, the Opposition parties are waging their own battles of their relevance and incurably divided and pathetically irrelevant as a significant political force.


Seeking assistance


•The judiciary seems to be the only source of hope in these times of “institutional corrosion”, aided and abetted by right-wing politics. Though the Supreme Court of India did not respond quickly to provide relief to migrant workers, it has struck down the Gujarat government’s amendment of the Factories Act. Unions must shed their judicio-phobia and approach it provided they have strong legal grounds to challenge reforms introduced by Central or State governments.


•Trade unions, out of their patriotic mindset, do not use extensively the complaints mechanism created by the International Labour Organization for fear of washing dirty linen in the global spaces; but they did seek ILO intervention recently. But the ILO’s intervention in May 2020 only provided a temporary respite to trade unions as the government did what it has been doing.


•So, trade unions are left with the only option — of demonstrative “industrial action” followed by sustained protest actions. It is in this context, that the central trade unions (except the BMS and its allies) have these demands: direct cash transfer of ₹7,500 per month for all non-income tax-paying families; 10 kg free ration per person per month to all the needy; expansion of MGNREGA to provide 200 days of work in a year in rural areas at enhanced wages; extension of employment guarantee to urban areas; withdrawal of all anti-farmer laws and anti-worker labour codes; a halt to privatisation; protection of government employment; restoration of old pension schemes, etc.


•The demands reflect disappointment and even hurt and anger experienced by the working class not only during the time of COVID-19 but also for events of the last three decades.


•The Codes are set to rule the industrial relations system for long unless the government changes. This strike, as an individual event alone, is a signal to the larger society of the concerns of workers. Hence, it is legitimate but such action alone will not change the Codes. Trade unions must explore other avenues such as seeking the ILO’s intervention, judicial action and social dialogue. There is no alternative to social dialogue in a pluralistic democracy which all the parties in the industrial relations system must make effective use of and make suitable amendments to the Codes to aid both ease of doing business and promote labour rights. This strike is a reminder of this potential, positive reconstruction of laws.

📰 Jobs, exports and the trade pacts link

India needs to shed its exaggerated fears of trade agreements to create new jobs — the country’s biggest challenge

•India’s economy contracted by 23.9% in the first quarter of 2020-21. According to the Reserve Bank of India (RBI), the Indian economy will further contract by 10% in the July-September quarter. This is technically defined as a recession by economists. India is in an economic recession for the first time in its independent history.

•‘India is in a recession’ means very little to the average Indian. The headline numbers too matter little to most people. The average Indian ‘feels’ the economic despair when her older child has lost his job or when her younger one cannot find a job despite her impressive educational qualifications. She ‘sees’ the pall of gloom when many workshops in her town are closed or when trucks remain idle or when trains do not run or when restaurants do not have customers.

Jobs are the first casualty

•Thousands of people lost their jobs due to the slowing economy in 2018-19 and 2019-20. Unemployment had reached a 45-year high. Then, in March 2020, COVID-19 struck India and a total national lockdown was announced. By one estimate, more than 2 crore people lost their jobs during the lockdown. They included all kinds of jobs — regular salaried, non-contractual, casual, daily wage, and self-employment. When jobs were lost, incomes were lost too. Millions of people found that they did not have a roof over their heads or money to feed their families.

•In any country, the ultimate economic test is, are there sufficient jobs, incomes and livelihoods for all in the workforce? The single biggest challenge confronting India today is jobs. When people are poor, hungry and desperate, any job will be a blessing. The job that requires hard, manual work and pays the lowest daily wage is the work provided under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. During the seven-month lockdown period, there were 11 crore people who asked for work under MGNREGA. That is 20 times more than the total number of persons employed by all the companies listed on the stock exchange. The only meaningful conversation about the economy that we ought to have is how to recover the jobs that were lost and create new well-paying jobs.

•Let us suppose that the government makes available ₹10 lakh as a loan to four companies for capital investment. The first company, a steel manufacturing company, will create one new job with this amount. The second, an automobile manufacturer, will create three new jobs. The third, a producer of leather goods, will create 70 new jobs. And the fourth, an apparel and garment maker, will create 240 new jobs including 80 for women (Economic Survey 2016-17).

Where the jobs are

•Large numbers of good quality jobs can be created only in sectors that are labour intensive, and where India has a comparative advantage, such as apparel, leather goods, value-added agriculture and so on. These job-creating sectors depend not only on the domestic market but, significantly, on export markets. More than one-half of the leather goods and one-third of the apparel produced in India are exported to other countries. India, therefore, needs to find more export markets, nurture them, and sustain them amid intense global competition. Merchandise exports also create supporting jobs in warehousing, transport, stevedoring, container stations, shipping, ship chandling, ports and export financing. It is therefore very important to encourage and incentivise exports to be able to create many new jobs in the country.

•A recent research study by Arvind Subramanian and Prof. Shoumitro Chatterjee shows how exports were the most significant factor that drove the Indian economy in the ‘boom years’ of 2003-2012. Contrary to popular perception, Subramanian and Chatterjee have shown that during the period since 1995, India did exceptionally well not only in exports of services such as information technology but also in the exports of manufactured goods and other merchandise. India was the third fastest growing exporter of manufactured goods in this period with 12% annual growth, after Vietnam and China. There is irrefutable evidence that India’s new trade policy, unveiled first in 1991-92, and taken forward by every subsequent government until 2014, has paid rich economic dividends in generating jobs, incomes and consumption.

Exports and agreements

•Unfortunately, despite the “Make in India” hype, export volumes have languished in the last six years. Merchandise goods exports were $314 billion in 2013-14 and remained stagnant for the next five years touching $313 billion in 2018-19. The reason for this (other than the disruption of export supply chains due to demonetisation and Goods and Services Tax) is the complete reversal in the direction of India’s foreign trade policy with higher tariffs, non-tariff barriers, quantitative limits, the return of licensing, border country restrictions and the appreciating value of the rupee.

•For nearly two decades, the countries of the world invested in a rule-based trading order. The age of trade agreements — both bilateral and multilateral — was born. There were more winners than losers because of trade agreements. Some historic trade agreements were the Association of Southeast Asian Nations (ASEAN), North American Free Trade Agreement (NAFTA) and the Southern Common Market (MERCOSUR). Half-hearted and hesitant agreements like the South Asia Free Trade Agreement (SAFTA) failed. Whether we like it or not, the harsh truth is that exports are linked to trade agreements. The member-countries of a trade agreement promote trade among themselves with easy rules but restrict trade with non-members with hard rules. Many countries rushed to conclude bilateral agreements (free trade agreements or FTA) because they realised the benefits to members. Non-members suffered.

Break down the wall

•It is true that FTA provisions were also misused by some countries to question the foreign investment policies and tax policies of other countries, usually recipients of foreign direct investment (FDI) like India. Purely trade and commercial disputes were dragged to international arbitral tribunals on the pretext of violating FTA provisions. India decided to keep FTAs in abeyance until we could agree with our partner countries, on a model FTA that built in safeguards against abuse. Unfortunately, under the current government, that has turned into an anti-FTA policy and has further metamorphosed into an anti-free trade policy. To put it bluntly, we are just a few steps away from full protectionism that kept India a closed and struggling economy for three decades.

•Decades ago,  Manmohan Singh, in his doctoral thesis at Oxford University, pleaded for India to shed its export pessimism. Today, we need to shed exaggerated fears of trade agreements. India cannot ‘protect’ its domestic industry with high trade barriers while aspiring for bilateral trade treaties to promote exports. This ‘have the cake and eat it too’ approach is naive and detrimental. Most manufacturing today has a long supply chain that cuts across many countries. To be able to export goods, India must import raw materials or equipment or technology from other countries in the supply chain. Hence, we must re-learn to engage with other countries and negotiate favourable trade agreements through the bilateral and multilateral routes. Otherwise, countries bound by trade agreements among themselves will shut the doors on India’s exports. Besides, it is common sense that no country will allow import of Indian goods and services unless that country is able to export its goods and services to India on reasonable and fair terms. The art of survival in a fiercely competitive world is engagement and negotiation.

•India’s economy is in a shambles. Exports are one of the main engines to revive economic growth and create many new jobs. Subramanian and Chatterjee estimate that India has the immediate opportunity to export goods worth $60 billion in labour intensive sectors which can then create lakhs of new jobs. To revive exports, India needs greater and frictionless access to global markets. Protectionism and autarky will take us back several decades. Wisdom lies in learning from the past, being smart and resilient in the present and securing our prosperity in the future.