1

Summary

Governance Class 02

## FEATURES OF GOOD GOVERNANCE:PARTICIPATION: (5:02 PM):

- Representative democracies have failed to provide citizen participation beyond the electoral process.
- On the other hand, there is no scope for citizen participation in dictatorship.
- Good governance is possible only when stakeholders are given enough opportunities to decide their future.
- It can help in policies reflecting ground-level realities, rather than having a complete mismatch between policies and the needs of the people.
- Various instruments like e-governance, citizen's charters, etc. can be used to ensure the participation of stakeholders in governance.

## Consensus oriented:

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  | - The late scientist **M. S. Swaminathan**believed that agriculture must be handled as an industry. - He believed that agriculture pricing must be decided by the producers, and not the product consumers, like every other sector. - Whenever agricultural commodities get costlier, the government imposes laws like the **Essential Commodities Act of 1955,** export restrictions, etc. - The three farm bills were brought with the intention of globalizing and liberalizing the agriculture sector. - Despite the pious intentions, the bills faced high resistance because the government could not bring consensus in their favor. |
- Government with an absolute majority on the floor of the house use their numerical strength to get crucial bills passed.
- Once the time for their implementation comes, they face severe resistance from the stakeholders.
- We saw that when the three farm bills were introduced, forcing the government to withdraw the critical legislation.
- Good governance demands that decisions should be made through consensus so that their implementation can be smooth and efficient.

## RULE OF LAW (5:30 PM):

- Constitutionalism demands that there should be a strict implementation of the rule of law in both letter and spirit.
- Democracies that are not fully developed are characterized by "constitutional formalism".
- The basic difference between a developed and developing country lies in the implementation of the rule of law.
- Developed countries and established democracies ensure strict implementation of the rule of law irrespective of the persons involved.
- On the other hand, in evolving democracies, the rule of law is mostly seen in the constitution than in reality.
- A delay in delivering justice, and failure to implement laws, rules & regulations ensure that the rule of law is only implemented partially.

## Economy & Efficiency:

- |  |  |
  | --- | --- |
  | **Term** | **Meaning** |
  | Economy | Expenditure |
  | Efficiency | Output |
  | Effectiveness | Outcome |
  | Equity | Quality of outcomes |
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)
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  | - **For example,**if the government wishes to improve education in an area, it will sanction a project to build schools. - The economy is the funds available for any project. - The output is the physical results achieved from utilizing the capital. - The outcome will be the achievement of the desired results. - Construction of schools will be the output, while improvement in efficiency levels for children will be the outcome. - Equity will be achieved when the beneficiaries are from all sections of society, and not only the affluent section. |
- In a developed country like India, the availability of resources is a major problem while formulating and implementing policies.
- Optimum utilization of resources would be necessary for rapid economic growth and development.
- As rightly recognized, it is possible only when administrators ensure economy and efficiency.
- The economy is defined in terms of reducing expenditure.
- It can be done by eliminating unproductive and wasteful expenditures.
- Efficiency is all about the optimum utilization of existing resources to maximize outputs.
- Efficiency can also automatically ensure the economy.

## INCLUSIVENESS & EQUITY (6:00 PM):

- Macroeconomic parameters like GDP growth rates can only partially reveal the conditions of the economic system.
- But as pointed out by the United Nations and World Bank, what is important is the quality of development rather than the quantity of growth.
- In the Indian context, we must evaluate the development in terms of:
- I. Reduction in poverty.
- II. Providing employment to people( job-led growth).
- III. Eliminating inequalities in the distribution of income and wealth.
- IV. Realizing the objectives of inclusive and equitable growth.

## Dimensions of inclusive & equitable growth:

- All sections of the society must benefit from the growth.
- The weaker sections must benefit more from the growth.
- Upliftment of the agricultural sector.
- Development of manufacturing sectors, especially the MSMEs.

## 1. Job-Led growth:

- The employment elasticity of the growth should be very high.
- **For example-** for a 1% increase in GDP, employment must increase by more than 1%.
- |  |
  | --- |
  | - As the share of the services sector in the Indian GDP is increasing, we are seeing a reduction in employment elasticity. - This is because the services sector has higher entry barriers so that fewer people can enter into it and benefit. - Higher qualifications are required to become a software engineer than to be a farm laborer. |
- Development of social & human capital.

## 2. VICIOUS CYCLE OF POVERTY (6:30 PM):

- If a large part of the population resides in poverty, the government incurs large costs in giving subsidies.
- Increased revenue expenditure of the government will lead to a larger fiscal deficit.
- To overcome the large fiscal deficit, the government will borrow more.
- A large part of the borrowing and income from other sources will go to reducing the fiscal deficit.
- This will reduce the funds available to the government for undertaking capital investments.
- Without capital investments, there will be no building of quality infrastructure.
- The lack of infrastructure would mean a lack of industrialization, which would further mean a lack of employment opportunities.
- This will ensure that a portion of the population remains in poverty, which will need subsidies.
- This is how the vicious cycle of poverty-subsidy works.
- We are seeing many governments engaging in **competitive populism** by promising and providing more and more things for free, including non-essential items.
- Such actions will certainly have long-term economic repercussions which will ultimately be borne by the population.
- The solution to this problem can be better investment in infrastructure which will encourage private industries to set up and expand.
- To ensure that the private industries get sufficient skilled labor, our education system must be re-oriented from rot learning to practical skilling.
- There is a limit to which any government can give employment, so private participation is necessary.
- If the government assumes all the responsibility of providing employment,  its expenditures and deficits will rise, which will in turn affect the population.

## 3. Gender empowerment:

- Women who constitute 50% of the population, must get equal opportunities for growth.

## 4. BALANCED REGIONAL DEVELOPMENT (6:30 PM):

- Economic liberalization has only resulted in the "creation of islands of prosperity in an ocean of poverty".
- Very few states and regions in India are developed at the cost of the rest of the country.
- This results in widening regional inequalities.
- Inclusive growth is possible only with balanced regional development.

## 5. Development of socially & educationally backward sections of society:

- Equitable growth emphasizes empowering people at the bottom of the pyramid.
- More opportunities should be provided to socially and educationally backward sections so that it can result in inclusive growth and development.

## 6. Sustainable development:

- Economic growth & development can be sustained for a longer period of time only when it is in complete harmony with the ecological systems.
- Recent events all over the globe have proved beyond doubt the significance of sustainable development for inclusive & equitable growth.
- As estimated by multilateral institutions like the United Nations & World Bank,  more than one billion people went below the poverty line due to ecological disasters.

## The last feature of Good Governance:

## Responsiveness:

- The essence of any democratic system is the responsiveness of the administration to the problems faced by the citizens of the country.
- **For example-**after the second wave of Covid-19, the government successfully implemented a vaccination program.
- The program ultimately helped in preventing the death of millions of people.
- On the other hand, dictatorial nations like China have not taken any effective measures to prevent the spread of the virus.

## CORRUPTION (7:15 PM):

- As per the **World Bank,**corruption refers to the use of public office for private gains.
- As per the 2nd ARC, Corruption = Monopoly of the State + Discretion + Secrecy - Accountability.
- Systemic corruption involves a political system, economic system, administrative system, and socio-economic system.
- Systematic corruption takes place in a highly organized manner.
- Such corruption is not a one-time event done by any single individual but continues as per the normal functioning of the public system.
- Before the 1991 reforms, due to the **License-Quota-Permit Raj,**we saw **Crony Socialism** under which large government control gave avenues for corruption.
- After the 1991 reforms, due to the government's control over the allocation of natural resources, we saw a rise in **Crony Capitalism.**
- True capitalism will see people getting rich because of sincere hard work and innovation like Mark Zuckerberg, and Bill Gates. etc.
- Crony capitalism will see people get rich because of proximity to positions of power.
- Crony capitalism reduces the motivation to innovate.
- **Economic Survey** pointed out that a minor private company based in New York has more patents than 1.4 billion people.
- **Materialism** is another reason for an increase in corruption, as materialism associates the value of an individual with only possessions.

## THE TOPIC FOR THE NEXT CLASS IS

the Continuation of corruption.