Towards ‘Cooperative’ Social Policy Financing in India

AS PART OF ‘POLICY CHALLENGES – 2019-2024: THE BIG POLICY QUESTIONS FOR THE NEW GOVERNMENT AND POSSIBLE PATHWAYS’
CPR BUREAUCRACY SOCIAL SECTOR SCHEMES

By Avani Kapur

A unique feature in India’s federal architecture is the pivotal role played by the Union government in financing and monitoring social welfare programmes, and in ensuring that all states have adequate resources and are held accountable for meeting social policy goals. During 2000-2018, the Government of India (GoI) spent over Rs 14 lakh crores on social services.1 A significant proportion of this expenditure is met through Centrally Sponsored Schemes (CSSs) – a specific purpose transfer from the Union to states, usually in the form of schemes.

While the practice of using specific purpose transfers dates to the pre-Independence era, over time, CSSs have emerged as the primary vehicle through which the GoI finances and directs state expenditure towards national priorities. Their dominance can be seen in their sheer numbers and the quantum of money flowing through them. During the 11th Five Year Plan (2007-2011), there were 147 scheme specific transfers accounting for over 40% of total central transfers to states.2 This increased signifcantly in the 12th Plan period. Of the total Rs 8.61 lakh crore transferred by the Union government to states between 2012 and 2015, Rs 5.88 lakh crore (68%) was released as assistance under CSSs.3

The importance of CSSs as a fiscal instrument lies in the fact that they are the primary source of non-wage, uncommitted funds available to states. With a majority of states’ own resources tied to wages, pensions and other committed liabilities (sometimes over 80-90%4), CSSs were designed as a top-up to augment state expenditure, allowing them to address infrastructure and human development deficits.

In principle, the rationale for CSSs is sound and in keeping with first principles: fiscal equalization to ensure that minimum standards of public services are provided to all citizens. Over time, however, the design and proliferation of CSSs have undermined this very rationale. Richer states with better administrative capacities have been able to capture a larger share of CSS funds, resulting in a significant misallocation of resources. Analysis by the Economic Survey 2016-17 of the six top CSSs – Pradhan Mantri Awaas Yojana (PMAY), Sarva Shiksha Abhiyan (SSA), Mid-Day Meal (MDM), Pradhan Mantri Gram Sadak Yojana (PMGSY), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Swachh Bharat Mission (SBM) – found that under no scheme did the poorest district receive even 40% of the total resources. In fact, for the MDM and SBM, the share was under 25%.5 Other studies of the SSA and National Health Mission (NHM) found similar results – that is, states with poorer health indicators did not necessarily get larger per capita transfers.6

Moreover, the centralized nature of CSSs often makes them an inefficient tool to address state-specific needs and has undermined the autonomy of states to undertake expenditure decisions based on their local needs.

Recognizing these limitations, numerous attempts have been made to restructure schemes and restore them to their rightful place – the states. The last major impetus came with the adoption of the recommendations of the 14th Finance Commission, which increased state governments’ share in tax devolution by 10 percentage points. The resultant decrease in the fiscal space available with the GoI reiterated the need to significantly decrease and restructure CSSs. This led to the constitution of a committee of chief ministers under the aegis of the NITI Aayog. The committee made several recommendations including scheme rationalization, determination of a transparent criterion for interstate allocation, and greater flexibility in and creation of an institutional mechanism for Centre-state negotiation.

The changes that followed were minimal. While schemes were reordered under ‘umbrella’ programmes, within each umbrella programme, sub-schemes continued as before. As per the Union Budget 2016-17, even after the creation of 28 umbrella programmes, there were 950 Central Sector and CSS sub-schemes accounting for about 5% of the GDP and 9% of the total GoI expenditure.7 Three years later, in the interim budget for 2019-20, Central Sector Schemes constituted 12% of GoI expenditure, up from 9% in 2016-17; CSSs accounted for another 9%.8

More importantly, there was no real change in the design or implementation of the schemes. Meetings for the planning of of education and health programmes continued as before, and the notification to allocate 25% as flexible, discretionary funds was not reflected in many of the scheme planning documents. Instead, the disbandment of the Planning Commission has resulted in an institutional vacuum with respect to planning. CSSs now fall under the domain of central ministries, leading to further centralization of social policy financing.

A call for rationalizing CSSs, however, has again gained momentum. The GoI recently committed to evaluating all CSSs before fresh appraisals are made and making scheme approval coterminus with the Finance Commission cycle. Accordingly, the Development Monitoring and Evaluation Office (DMEO) under the NITI Aayog has invited proposals to evaluate 28 umbrella CSSs under 10 sectors. Real change in social sector financing, however, will only be visible if the current design of CSSs is completely overhauled, in addition to scheme rationalization being carried out.

Before I offer some indicative steps on how this can be achieved, it is useful to highlight some of the main inefficiencies in the current design of CSSs. Broadly, these can be classified into four interrelated areas: planning failures, implementation failures, fiscal inefficiencies and administrative red tape. Each of these is described below.

Planning Design Failures

Budgets for CSSs are determined based on incremental plans prepared by the respective state governments and approved by a committee at the central level. This has given individual ministries significant discretion in determining scheme design and approving state-specific plans and budgets. There is often an inherent tension between central government priorities and states’ perceived needs. However, since the Centre controls the purse strings, central priorities dominate. To illustrate: in 2010, the Bihar chief minister had launched several state entitlement schemes for education, such as cycles, uniforms, etc. In its SSA budget, thus, the state proposed a low allocation for entitlement. However, the GoI’s own prioritization of entitlements meant that despite no demand, Bihar’s entitlement budget under SSA was enhanced by over 200%. In another example, in 2013–14, one state government wanted to use the SSA budget to provide vehicles for block-level officials to improve school-level monitoring. The approval board at the Centre, however, denied this request as purchase of vehicles was not permitted under SSA rules.9

Implementation Failures

CSSs are typically designed by the central government but implementation rests with the state and local governments. Most CSSs come with rigid guidelines for execution which privilege a top-down, ‘one size fits all’ model with fixed norms and unit costs. For the NHM, for instance, the guidelines lay down fixed population norms to set up health facilities. These, however, underestimate requirements in states such as Rajasthan and Madhya Pradesh which have a population density lower than the national average.

More importantly, even granular implementation details such as hiring processes, training modules and schedules, communication strategies, etc. are laid down by the Centre. Consequently, states and local governments have very little flexibility in adapting implementation based on their specific jurisdiction. The problem is even more acute at the point of service delivery. In education, for instance, if a school wants to spend more money on buying teaching material rather than painting walls, the norms simply don’t allow it. Similarly, a survey conducted by Accountability Initiative in 2013 found that the pressure to meet RTE infrastructure requirements resulted in money for boundary walls being sent to all schools in Himachal Pradesh even though construction couldn’t be undertaken due to land unavailability.10

Fiscal Inefficiencies

Most CSSs are designed as a cost-sharing programme between the Union and the states. With the division of CSSs into ‘core’, ‘core of the core’ and ‘optional’, states are expected to contribute 50-60% of the total approved budgets from their own plan funds.11

Within a scheme, however, the matching ratio is uniform across states irrespective of their fiscal capability. Release of funds by the GoI is contingent on states releasing their own share and meeting other conditionalities such as the submission of Utilisation Certificates (UCs). This has three important consequences with respect to distribution of resources. First, the uniform fund-sharing ratio often makes it difficult for the low-income states to put in their requisite share. As subsequent fund release is contingent on states submitting their share, this has an effect on the total quantum of money received by fiscally weaker states. Thus, while Karnataka may perform better than Bihar on most development indicators, it may also be able to avail of the CSS grant by making its matching contribution, while Bihar may find it difficult to put in its share. Second, the presence of conditionalities for fund release means that there is a considerable difference between the approved allocation and actual grants. In 2016-17, for instance, only 85% of total NHM approved budgets were released. These differences are amplified at the state level. Thus, while Bihar (one of the poorest states) received 79%, Gujarat and Haryana (fiscally stronger states) received over 100%.12 This creates uncertainty in implementing schemes and invariably states with greater shortfall in services levels suffer the most. Finally, the fixed fund-sharing ratios also creates perverse incentives for states which may not need the additional CSS fund to try and get it.

Layered Bureaucracy and Administrative Red Tape

Finally, detailed and rigid guidelines, complex paperwork and numerous conditionalities for fund release under CSSs have also created considerable administrative red tape, resulting in inefficiencies in approvals and fund flows. The situation is exacerbated by the fact that for some CSSs, the central government has set up parallel institutional structures responsible for CSS implementation in states, thereby creating a new stakeholder in the implementation process. Under the SSA and NHM, for instance, scheme planning and implementation rests with autonomous bodies known as State Implementation Societies.13 The multiplicity of roles means that even simple tasks require approval and technical sanctions from different authorities. A study of the NHM in Uttar Pradesh conducted by Accountability Initiative found that it took a minimum of 22 desks through which the file had to pass for the release of funds from Treasury to the State Health Society (SHS). Other studies have found that the figures for Bihar and Maharashtra stood at 32 desks and 25 desks, respectively.14 Possibly as a consequence, release of funds from the SHS to the Treasury took as long as five months in Maharashtra and over three months in Bihar and Uttar Pradesh.15 Delays at one level have a knock-on effect and often funds reach the last mile in the last quarter of the financial year.

Five-step Process in Reforming the CSS Design

These challenges highlight the need to move away from past reform efforts (which have focused on minor tweaks in CSSs) towards the first principles of the rationale behind specific purpose transfers. This will require a five-step process.

Moving from a Schematic to a Sectoral Approach

The first step is to limit the number of schemes. One way of doing this is to link finances to ‘national goals’. The committee of CMs on restructuring CSSs laid out nine key areas as part of the National Development Agenda for Vision 2022. It recommended that instead of the previous government’s strategy of bundling schemes under 22 umbrella programmes, funds could be released specifically for priority areas rather than multiple sub-schemes. This would give states the flexibility to plan activities within each priority area as per their own development needs. Steps in this direction have already been taken. The recently launched Samagra Shiksha – an overarching programme for school education extending from pre-school to class 12 – merged three previously independent CSSs. In theory the scheme allows states to prioritize interventions and sectors as per their need. Preliminary analysis of the scheme budget shows that indeed states are making decisions in keeping with their specific needs (albeit still guided by the GoI). Thus, while Uttar Pradesh and Bihar – which continue to lag behind in elementary education – allocated over 80% of their Samagra Shiksha budget for elementary education, states such as Haryana and Himachal Pradesh have focused on secondary education, allocating over 40% to the same. Similar steps should be taken in other sectors.16

Moving towards Block Grants

Having identified priority areas, the next step would be to ensure states have enough resources to fund these areas. Instead of allocations being linked to detailed and cumbersome planning and budgeting processes with restrictive, centralized guidelines, block grants could be given to states. This would allow for prioritization of different inputs and secure greater ownership by state governments. An example of this can already be seen in the Rashtriya Krishi Vikas Yojana (RKVY), a CSS established in 2007 to rejuvenate falling agricultural growth rates. Unlike most other CSSs, RKVY offers the flexibility to a state to choose activities under the scheme that most suit its requirements. Projects are prepared by the departments concerned and then scrutinized by a committee under the the state government’s Agricultural Production Commissioner. Most importantly, approval of the project is not done by the GoI but by the State Level Sanctioning Committee (SLSC), chaired by the Chief Secretary and with representatives from the Ministry of Agriculture and NITI Aayog as members.

Ensuring Equitable Interstate Distribution

Third, interstate distribution of the normative block grant portion of funding amongst states can be based on a formula that takes into account aspects like population, area and proportion of difficult areas, along with sector-specific needs. Differential cost-sharing norms that take note of the shortfall in service levels could further assist in ensuring that the distribution of funds fulfils the criteria of need and equality. Moreover, the formulaic nature of the grants will ensure predictability of fund flows and allow for better planning.

Reforming the Public Finance Management System

The fourth step is streamlining inefficiencies in the approval and fund flow process. This can be done by building a just-in-time Expenditure Information Network (EIN) which brings all expenditure units under one system. The first step in this process was undertaken in 2017, when the GoI mandated all CSS expenditure to be routed through the Public Finance Management System (PFMS). The system envisages each implementation unit to be under one system, thereby allowing the Centre and states to monitor funds at different levels. The problem, however, is that the system still functions as a push system, with funds being routed through multiple levels requiring approvals at every stage. By moving towards a pull system, each implementing unit could have the ability to automatically withdraw funds as needed. A defined resource envelope and appropriate access codes would ensure that funds are not misused.

Augmenting Capacity of the Evaluation Office

Finally, instead of focusing on monitoring the nuts and bolts of implementation, the GoI must build its capacity to develop a credible database on monitoring outcome indicators on a real-time basis. Currently, an inherent weakness in the CSS design is its focus on inputs. This creates perverse incentives for the entire administrative machinery to focus on ensuring adequate inputs, or at best, meeting output targets. Here, the DMEO’s role could be expanded by investing in systems to generate regular, credible and granular data on various outcome indicators and to conduct concurrent evaluations of key programmes. Over time, performance on outcomes could be linked to additional financial incentives available to states.

Other pieces as part of CPR’s policy document, ‘Policy Challenges – 2019-2024’ can be accessed below:

The Future is Federal: Why Indian Foreign Policy Needs to Leverage its Border States by Nimmi Kurian
Rethinking India’s Approach to International and Domestic Climate Policy by Navroz K Dubash and Lavanya Rajamani
India’s Foreign Policy in an Uncertain World by Shyam Saran
Need for a Comprehensive National Security Strategy by Shyam Saran
A Clarion Call for Just Jobs: Addressing the Nation’s Employment Crisis by Sabina Dewan
Time for Disruptive Foreign and National Security Policies by Bharat Karnad
Multiply Urban ‘Growth Engines’, Encourage Migration to Reboot Economy by Mukta Naik
Schooling is not Learning by Yamini Aiyar
Clearing Our Air of Pollution: A Road Map for the Next Five Years by Santosh Harish, Shibani Ghosh and Navroz K Dubash
Protecting Water while Providing Water to All: Need for Enabling Legislations by Philippe Cullet
Interstate River Water Governance: Shift focus from conflict resolution to enabling cooperation by Srinivas Chokkakula
Managing India-China Relations in a Changing Neighbourhood by Zorawar Daulet Singh
Beyond Poles and Wires: How to Keep the Electrons Flowing? by Ashwini K Swain and Navroz K Dubash
Regulatory Reforms to Address Environmental Non-Compliance by Manju Menon and Kanchi Kohli
The Numbers Game: Suggestions for Improving School Education Data by Kiran Bhatty
Safe and Dignified Sanitation Work: India’s Foremost Sanitation Challenge by Arkaja Singh and Shubhagato Dasgupta
Safeguarding the Fragile Ecology of the Himalayas by Shyam Saran
Female Labour Force Participation: Asking Better Questions by Neelanjan Sircar
Understanding Land Conflict in India and Suggestions for Reform by Namita Wahi
1 ‘Reserve Bank of India Handbook of Statistics on the Indian Economy’, Public Finance Statistics, https://dbie.rbi.org.in/BOE/OpenDocument/1608101727/OpenDocument/opendoc…
2 B.K Chaturvedi, ‘Report of the Committee on Restructuring of Centrally Sponsored Schemes (CSS)’ (New Delhi: Planning Commission, Government of India, 2011).
3 NITI Aayog, ‘Report of the Sub Group of Chief Ministers on Rationalisation of Centrally
Sponsored Schemes’ (New Delhi: NITI Aayog, 2015), http://niti.gov.in/writereaddata/files/ Final20Report20of20the20Sub-Group20submitter20to%20PM.pdf.
4 See, for instance, Y. Aiyar and A. Kapur, ‘The Centralization Vs Decentralization Tug of War and the Emerging Narrative of Fiscal Federalism for Social Policy in India’, Journal of Regional and Federal Studies 29(2) (2018): 187-217.
5 Ministry of Finance, ‘Universal Basic Income: A Conversation With and Within the Mahatma’, Economic Survey 2016-17, Chapter 9, https://www.indiabudget.gov.in/es2016-17/echapter.pdf.
6 M.G. Rao, ‘Central Transfers to States in India: Rewarding Performance While Ensuring Equity’ (New Delhi: NITI Aayog, 2017).
7 Ministry of Finance, ‘Universal Basic Income’.
8 Rathin Roy, ‘Changing Fiscal Dynamics’, Seminar Magazine 717 (2019)
9 Aiyar, et al. ‘Rules versus Responsiveness: Towards Building an Outcome-Focussed Approach to Governing Elementary Education Finances in India’, Accountability Initiative Working Paper (New Delhi: Centre for Policy Research, 2015).
10 Accountability Initiative, ‘District Report Cards, 2014’ (New Delhi: Centre for Policy Research, 2014).
11 For the North East and Himalayan states the Centre usually provides 90%.
12 Accountability Initiative, ‘National Health Mission, 2017-18’, Budget Briefs (New Delhi: Centre for Policy Research, 2018).
13 In NHM it is known as State Health Society.
14 See, for instance, M. Choudhury and R.K Mohanty, ‘Utilisation, Fund Flows and Public Financial Management under the National Health Mission’, NIPFP Working Paper Series (New Delhi: National Institute of Public Finance and Policy, 2018), https://www.nipfp.org.in/media/medialibrary/2018/05/WP_2018_227.pdf.
15 Accountability Initiative, ‘National Health Mission’.
16 Accountability Initiative, ‘Interim Budget 2019-20’, Samagrah Shiksha Budget Briefs (New Delhi: Centre for Policy Research, 2019).

Understanding Artificial Intelligence (AI)

FULL LEARNING VIDEO
TECHNOLOGY

Artificial Intelligence and its Simple Usage

Artificial Intelligence (AI) is the intelligence displayed by machines such as computers by observing and learning from the environment, in a way similar to humans. It is based on the idea of building machines that can think, act and learn just like human beings and thus accomplish tasks that have historically required human intelligence. Whether it is the application of digital personal assistants, personalised recommendations for content on the Internet, the usage of applications like Google Maps for directions or the automatic categorisation of emails into ‘important’ and ‘spam’ folders – all these are simple instances of AI.

Ethical and Legal Concerns

AI has permeated the realms of ordinary life without us realising. While the above may be minor examples in the way the technolgy is used, there exist several larger breakthroughs. AI has noteworthy applications in various fields including healthcare, agriculture, transportation, aviation, finance, education, marketing etc. The most interesting use of this technology is in the development of self-driving cars. While consumer cars with the autopilot function that can park, steer and brake by themselves exist today, there is a race to see who can create a car that is absolutely driverless. This has created an ethical dilemma that is worth probing: In case of an unavoidable accident, who does the AI save – the pedestrians on the road or the passengers in the car? How is such a decision, concerning human life, made? Is the machine playing God by making such choices? And, in such an accident, who is to be blamed and punished, considering the absence of a driver.

The Way Forward

While AI is slowly replacing human beings in tasks that can be observed and learned, one must question whether it can really ever replicate human emotions and interaction? Clearly, our relationships with each other are undergoing a change as AI gets better at modelling human behavior. We must recognise that a line should be drawn when it comes to the use of such technology. At a time when even groceries can be ordered using AI, eliminating any need for human contact, it is evident that AI is changing the functioning of society as we know it. While this technology offers innumerable positives, it is essential to exercise some caution so that unknowingly we are not controlled by a technology that was invented to simplify our lives. It is also important to tackle the challenges that come with the use of AI, such as privacy and security concerns, the lack of awareness, lack of data, and high costs of adoption. This would enable a smooth transition for all, as people slowly migrate from traditional technologies that AI will now replace.

This learning video has been produced by Centre for Policy Research as part of the Metamorphoses- Talking Technology project, being executed in partnership with the India International Centre and NITI Aayog.

Trends in India’s Residential Electricity Consumption

PART 2 OF A BLOG SERIES BY THE CENTRE FOR POLICY RESEARCH (CPR) AND PRAYAS (ENERGY GROUP)
ENERGY RESEARCH

The series is titled Plugging in: Electricity consumption in Indian Homes.

Electricity consumption in Indian homes has tripled since 2000. The percentage of households with access to electricity has increased from 55% in 2001 to more than 80% in 2017. In 2014, an electrified Indian household consumed about 90 units (kWh) of electricity per month on an average; enough to run four tube-lights, four ceiling fans, a television, a small refrigerator, and small kitchen appliances with typical usage hours and efficiency levels in India. This is three-fourths of the average monthly household consumption in China, a tenth of that in the USA, and a third of the world average. In this post, we take a closer look at data on India’s residential electricity and the disparities in access and consumption across states. We also reveal some inconsistencies between different sources, pointing to the need for better data.

All states show considerable increase in total residential electricity consumption in recent years according to data compiled by the Central Electricity Authority (CEA) from distribution companies (see Figure 1). Between 2004 and 2015, states like Assam, Bihar, Chhattisgarh, and Jharkhand with low initial household electrification showed a high growth rate of their residential electricity use (about 11%-16%). States with higher household electrification like Delhi, Punjab, Haryana, and Tamil Nadu grew at lower, but still substantial, rates (6%-8%), with high absolute numbers.

Figure 1: Residential Electricity Consumption growth in selected states (2004-2015)
Source: Annual General Reviews for individual years (CEA).
The CEA data along with the census data and the rural electrification data can be used to estimate average monthly electricity consumption of an electrified household in different states. We validate this against the tariff orders issued by state regulators and find interesting results (see Figure 2).

Three insights emerge:

One, an electrified household in Delhi consumes about 250-270 units or kWh of electricity per month on average, approximately the same average amount consumed by an electrified household in Germany. At the same time, such an electrified household in Delhi consumes significantly more than other Indian cities (Chandigarh: 208 units; Ahmedabad: 160 units; Puducherry: 150 units; and Mumbai: 110 units). This is in part due to high ownership of air-conditioners (12% of total households) and air-coolers (70%), and tariff subsidies in Delhi. Yet, other socio-economic reasons still need to be examined.
Two, electrified households in larger states like Maharashtra, Gujarat, and Tamil Nadu, with higher rates of electrification, consume on an average a lower amount of about 80-90 units per month. Karnataka is on the lower end with about 60 units. On the other hand, households in Punjab (about 150 units) and Haryana (about 110 units) consume much more. . While there may be some discrepancies in the data due to incorrect reporting on use and number of consumers by distribution companies, the scale of these discrepancies is likely to be small given the limited number of un-metered and illegal connections in the residential sector.
Three, states like Uttar Pradesh (UP), Jharkhand, and Chhattisgarh show high monthly household electricity consumption. It is unlikely that states with a high share of newly electrified households and low reliability of power supply consume as high as an average household in Chandigarh or Mumbai. The reported household consumption is high possibly due to metering issues. For instance, 40% of the total residential connections in UP are rural un-metered connections. As their actual consumption is not metered, the distribution companies estimate their consumption based on norms approved by the regulator (currently the norm is 144 kWh/kW/month, a high number). Distribution companies have not conducted any sample studies to justify this norm despite being asked by the regulators. High estimation of consumption from un-metered connections as well as measurement issues in metered connections can mask the actual consumption.
Finally, the electricity consumption within states also exhibit significant inequity at the household level. According to the National Sample Survey Office (NSSO)’s surveys, about 20% of electrified households consume less than 30 units of electricity per month, while about 80% consume less than 100 units per month. In rural areas, 90% of the electrified households consume less than 100 units. This distribution varies with states. In most states, about 15-20% of all the households consume less than 30 units per month. The states consuming the least electricity are Karnataka, West Bengal, Bihar, and Jharkhand. For more details on results see our recent report.

Understanding the factors that lead to such variation in consumption patterns across states and households is important for managing future electricity demand (and to monitor the performance of schemes such as UDAY for the financial revival of distribution companies, and Saubhagya for providing electricity connections to all un-electrified homes). This requires accurate and comprehensive data on electricity consumption which, at present, is a serious area of concern (particularly the limited reporting by distribution companies).

In the next two posts, we look at the most basic use of electricity in Indian homes – lighting – and how the provision of lighting services are changing in the country.

This piece is authored by Aditya Chunekar and Sanjana Mulay from Prayas (Energy Group).

This blog series is also available on the Prayas website here.

This article was republished in Eklavya Magazine in Hindi under ‘स्रोत विज्ञान एवं टेक्नॉलॉजी फीचर्स’, and can be accessed here.

To subscribe to email updates on the series, click here.

Other posts in this series:

Electricity Consumption in Indian Homes
India’s LED Lighting Story
Illuminating Affordable Homes
The Efficiency of Appliances
Appliances used in Affordable Housing
Electrifying the National Capital Region
Exploring the different uses of household appliances
Role of human behaviour in driving electricity use

ThoughtSpace Episode 5: Demonetisation–curbing black money or welfare shock?

A CONVERSATION BETWEEN SENIOR FELLOW DR RAJIV KUMAR AND RICHA BANSAL
PODCAST ECONOMY

On the night of November 8, Prime Minister Narendra Modi announced the withdrawal of 500 and 1000 rupee notes from the market, with immediate effect, with the aim of curbing black money. While this move at demonetisation was hailed with great enthusiasm when announced, the euphoria soon gave way to frustration, anger and resentment, as the ‘inconvenience’ faced by people continued to mount with banks and ATMs running out of the new notes.

Is the move worth the trouble people are going through? How will those in the informal economy cope? Will the micro overshadow the macro? What are the larger benefits? How are things likely to unfold, going forward?

In the fifth episode (above) of CPR’s podcast, ThoughtSpace, Richa Bansal talks to Dr Rajiv Kumar, a well-known economist and Senior Fellow at CPR, to deconstruct the debate on demonetisation more deeply, moving beyond the binaries.

ThoughtSpace Episode 22: Understanding the Implications of the Pakistan Election Results

A CONVERSATION BETWEEN AMB G PARTHASARATHY AND RICHA BANSAL
INDIA-PAKISTAN PODCAST

In an election that was marred by allegations of rigging, military interference and violence, Pakistan recently elected former cricketer, Imran Khan as Prime Minister. While Khan has called for a resolution of all issues with India, it is essential for India to discern whether his words translate into action, going forward.

In the 22nd episode of CPR’s podcast, ThoughtSpace (above), Richa Bansal talks to Honorary Research Professor at CPR and former ambassador to Pakistan, G Parthasarathy about this development across the border.

Amb Parthasarathy delves into the role of the army in the governance of Pakistan and sheds light on the possible future of India – Pakistan relations, focusing on issues like homegrown terror within Pakistan, terror groups targeted at India, Kashmir, and future trade relations between the two countries.

Amb Parthasarathy has also written on the subject in ‘The Tribune’,  ‘The Economic Times’, ‘PrimeTimes.IN’ and ‘The New India Express’.

ThoughtSpace Episode 48: How to regulate India’s economy to enable growth

PODCAST FEATURING DR KP KRISHNAN AND YAMINI AIYAR

Listen to episode 48 of ThoughtSpace featuring Dr KP Krishnan and Yamini Aiyar.

As we debate the future of the Indian economy, the issue of regulation has emerged consistently as a crucial fault line. How does India design regulatory systems in ways that are effective, constrains capital where needed, but at the same time builds markets, enables the unleashing of animal spirits, and protects labour and citizens? These are critical roles the state is meant to play, but given India’s complex regulatory system, it has been argued that the only way ahead for India is to rid ourselves of the regulatory cholesterol to unleash animal spirits and build the Indian economy. In such a scenario, what ought to be the role of the state in building regulatory institutions and mediating the relationship between capital and labour?

In this episode, Yamini Aiyar, President & Chief Executive of CPR, speaks with Dr KP Krishnan, Professor at the National Council of Applied Economic Research and former IAS officer. Dr Krishnan sheds light on the difference between ‘good’ and ‘bad’ regulatory cholesterol, shares examples of positive financial regulation by the state, and calls for participatory processes in the design of regulation.

For more information on the centre’s work, follow CPR on Twitter @CPR_India or visit www.cprindia.org. You can read more on TeamLease’s work on India’s compliance regime and regulatory cholesterol here and here.

ThoughtSpace Episode 4: Analysing the evolving India-China relations

A CONVERSATION BETWEEN SENIOR FELLOW SHYAM SARAN AND RICHA BANSAL
PODCAST INTERNATIONAL POLITICS

Relations between India and China have changed considerably over the past decade as China’s growth rate outpaced India’s, placing both countries in unique and different positions in the current global geopolitical context.

This has been most evident in recent times with China’s open opposition to India’s NSG membership bid; its blocking India’s move to ban Masood Azhar; and pledging large aid packages to other South Asian countries at the recent BRICS summit. India, on the other hand, has grown increasingly closer to the US; attempted to take on China over the South China sea dispute; and not shied away from a muscular response to terrorism emanating from Pakistani soil, notwithstanding China’s proximity to Pakistan. Add to this Donald Trump’s victory in the recent US elections and what this posits for the future.

In the fourth episode (above) of CPR’s podcast, ThoughtSpace, Richa Bansal talks to Shyam Saran, a Senior Fellow at CPR and a career diplomat, who is a respected authority on India-China relations, on the evolving India-China relations and what the future holds.

ThoughtSpace: Podcast on Understanding Reservations for Economically Backward Sections of Society

A CONVERSATION BETWEEN D SHYAM BABU AND RICHA BANSAL
PODCAST IDENTITY DISCRIMINATION POLITICS

Listen to the full CPR podcast, ThoughtSpace (above) featuring Senior Fellow, D Shyam Babu, where he discusses the Lok Sabha bill that aims to provide 10 percent reservation in government jobs and education to the economically backward section in the general category.

Through the amendment of Articles 15 and 16 of the Constitution, the bill seeks to allow states to make ‘special provision for the advancement of any economically weaker sections of citizens’.

In an article in ‘Times of India’, D Shyam Babu questioned whether ‘one should treat the exercise as a bold attempt at social reform, or as a cynical politics of divide and rule?’ Shedding light on the ironies of the policy, he highlighted that ‘the same social groups who ridiculed the quota system as ‘vote-bank politics’ have now become the recipients of quota benefits.’

Tilting at Titling: Will We Ever Get it Right?

A TALK BY DEEPAK SANAN
RIGHTS

Incomplete and inconclusive land titling in India poses serious challenges to the conduct of business, and often creates situations of injustice by facilitating dispossession and displacement. This leads to disputed ownership with many cases under litigation for decades.

Listen to the talk (above) by Deepak Sanan where he reviews the reasons for such infirmities in land titles in India, and also explains how the government typically deals with these. He particularly highlights why the government’s approach is insufficient to deal with the issue systematically.

ThoughtSpace: Right to Sanitation in India – Critical Perspectives

PODCAST IN COLLABORATION WITH OXFORD UNIVERSITY PRESS AND BLOG ON NEW BOOK BY PHILIPPE CULLET, SUJITH KOONAN AND LOVLEEN BHULLAR

 

Listen to the full episode of the CPR podcast, ThoughtSpace (above), featuring Senior Visiting Fellow, Philippe Cullet, about the book, ‘Right to Sanitation: Critical Perspectives’ co-edited by him, Sujith Koonan and Lovleen Bhullar, published by Oxford University Press. The book represents the first effort to conceptually engage with the right to sanitation and its multiple dimensions in India, as well as its broader international and comparative setting. This episode of ThoughtSpace is in collaboration with the Oxford University Press, a department of University of Oxford that furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide.

An interview with Philippe Cullet, detailing more information about the book and its contents can be read below:

Where would you situate this book in the socio-political landscape?

Sanitation has evinced considerable interest from policy-makers, lawmakers, researchers and even politicians in recent years. Its transformation from a social taboo into a topic of general conversation is evident from the central role of sanitation in recent Bollywood blockbusters, such as Piku (2015), Toilet ek prem katha (2017) and Padman (2018). Toilet ek prem katha is particularly interesting since it directly mirrors the policy framework of the central government that seeks to ensure open defecation free India by 2 October, 2019.

In fact, insofar as policymaking and implementation is concerned, sanitation has emerged from the shadows in the past five years. The Swachh Bharat Mission (SBM) has led to the construction of millions of toilets throughout the country. Several states have been declared Open Defecation Free (ODF) in the last couple of years. This is a positive development in terms of emphasising the urgency of addressing the sanitation crisis.

This also fits well with various judicial pronouncements since the 1990s where sanitation has been recognised as a fundamental right derived from the constitutional right to life. Yet, ongoing policy initiatives are not linked to a rights perspective, and a statutory framework to transform the promise of the judicially recognised right to sanitation into reality is absent. For the right to sanitation to be realised, its multiple dimensions must be addressed holistically beyond the instrumental mechanism of constructing toilets.

What would you say is the unique contribution of this book?

This book provides the first comprehensive analysis of the diverse dimensions of the right to sanitation. It exposes the limits of the current framework that lacks mechanisms to ensure the realisation of the right to sanitation in urban and rural areas on a universal basis, while ensuring the realisation of other rights, such as the rights to equality, environment, health and water.

How would you summarise the contents of this book?

As mentioned above, this book addresses the various dimensions of the right to sanitation. The realisation of this right is crucial in itself as well as for ensuring the realisation of various other rights, including the rights to environment, health and water. The book examines and analyses the different law and policy initiatives that have been undertaken to address issues that affect the realisation of the right to sanitation. These initiatives include the construction of toilets to address insanitary conditions, the development of sewerage infrastructure and other measures undertaken to control water pollution and to reuse wastewater, and legislative reforms related to the conditions of work of sanitation workers. Further, this book highlights issues that are not new but are yet to be satisfactorily addressed such as manual scavenging and gender equality, explained in more detail further down in this interview.

You mention at the start that the statutory framework for realising the right to sanitation is absent. Does this mean that there is no legal framework for sanitation?

No, the absence of statutory recognition of the right to sanitation does not mean that there is a complete void. There are various legal instruments that address some specific aspects of sanitation but there is no comprehensive sanitation legislation and what exists is not framed around a rights perspective.

In certain cases, there has been a clear legal framework, such as the one calling for the eradication of manual scavenging that has been in existence for decades. Yet, this has not been enough to ensure its complete elimination perhaps because of the deep link between the practice of manual scavenging and caste. In addition, the all too frequent news of sanitation workers dying in the sewers dispels the impression that we are any closer to the elimination of all practices amounting to manual scavenging.

Further, the gender dimension of sanitation has often been instrumentalised in government interventions. For instance, protection of the dignity of women was presented as the primary rationale for construction of toilets in official campaigns for behaviour change until 2017 when sufficient pressure led to a specific acknowledgment that this was problematic in policy documents, hopefully leading to a change on the ground.

Does this book have international and comparative relevance?

Yes, this book has relevance in international and comparative contexts. It will contribute to the ongoing discourse on the right to sanitation at the international level. The conditions, concerns and challenges in India may be similar to situations in other developing and least developed countries. Therefore, the book contributes to reimagining the right to sanitation from the perspective of the global South.

It does so in particular through its mix of conceptual work and grounded research, with a number of the book’s chapters being based on extensive ground-level work in the states of Kerala, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh.

About the editors 

Philippe Cullet, Sujith Koonan and Lovleen Bhullar are the editors of Right to Sanitation in India: Critical Perspectives. Philippe Cullet is Professor of International and Environmental Law at SOAS University of London and a Senior Visiting Fellow at the Centre for Policy Research, New Delhi. Sujith Koonan teaches at Campus Law Centre, Faculty of Law, University of Delhi. Lovleen Bhullar holds a PhD in law from SOAS University of London, and is associated with Environmental Law Research Society, New Delhi.

The book can be accessed at OUP India, here.

The book can be accessed at OUP global, here.