17. Governance Notes 02

Elaborate Notes

FEATURES OF GOOD GOVERNANCE

PARTICIPATION Participation is a cornerstone of good governance, implying that all members of society, particularly the most vulnerable, have a direct or representative voice in decision-making.

• Critique of Representative Democracy: Traditional representative democracies often confine citizen participation to periodic elections. Scholars like Jürgen Habermas in his work “The Theory of Communicative Action” (1981) have argued for a more deliberative public sphere where citizens can rationally discuss and influence policy. The limitation of just ‘voting’ is that it fails to capture the nuanced preferences of citizens and does not hold representatives continuously accountable.
• Contrast with Authoritarian Regimes: In dictatorial or authoritarian systems, citizen participation is non-existent or suppressed. Governance is a top-down exercise, leading to policies disconnected from public needs, as seen in the initial handling of the COVID-19 crisis in China where citizen voices were censored.
• Importance of Stakeholder Involvement: Good governance necessitates the inclusion of all stakeholders (citizens, civil society, private sector, etc.). This ensures that policies are grounded in reality. The failure of many top-down poverty alleviation programs in the past, as documented by economists like Esther Duflo through randomized controlled trials, underscores the need for bottom-up participation.
• Instruments for Participation:
  • Constitutional Mechanisms: The 73rd and 74th Constitutional Amendment Acts (1992) in India institutionalized local self-government, empowering Gram Sabhas and Ward Committees as platforms for direct citizen participation in local planning and resource allocation.
  • Legislative Tools: The Right to Information Act (2005) has been a transformative tool, enabling citizens to demand transparency and hold public authorities accountable, thereby participating in the monitoring of governance.
  • Administrative Tools: Citizen’s Charters are documents that outline the commitment of a public service organization towards standards, quality, and time frames of service delivery, grievance redressal mechanisms, etc., empowering the citizen as a consumer of services.
  • Technological Tools: E-governance platforms like the MyGov.in portal in India provide a digital space for citizens to contribute ideas and feedback on policy matters, theoretically enhancing participation.

Consensus oriented This principle ensures that while decisions need to be made, the process considers the diverse and often conflicting interests of all stakeholders to reach a broad agreement on what is in the best interest of the whole community.

• The M.S. Swaminathan Perspective: The late agricultural scientist M.S. Swaminathan, through the National Commission on Farmers (NCF) report (2006), advocated for a paradigm shift in agricultural policy. He argued that farmers, as producers, should have a decisive say in pricing, similar to industrial producers. His recommendation of “C2+50%” (cost of production plus 50% profit) as the Minimum Support Price (MSP) was a move to empower the producer. Government interventions like invoking the Essential Commodities Act of 1955 or imposing export bans to control food price inflation often prioritize consumer interests over producer welfare, creating a fundamental conflict.
• The Case of the Three Farm Bills (2020): The Indian government, using its legislative majority, passed three contentious farm laws: The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, and The Essential Commodities (Amendment) Act. Despite the stated intention of liberalizing the agricultural sector, the bills were enacted with minimal consultation with farmer unions. This lack of consensus-building led to year-long protests, forcing the government to repeal the laws in 2021. This case serves as a powerful example of how a lack of consensus can derail even well-intentioned reforms.
• Majoritarianism vs. Consensus: Good governance avoids the “tyranny of the majority”. It seeks to mediate differing interests to protect the fundamental welfare of minorities and vulnerable sections. Decisions made through broad consensus are more sustainable and easier to implement as they foster a sense of ownership among stakeholders.

RULE OF LAW This principle demands a framework of fair, impartial, and predictable legal rules, where no one is above the law.

• Dicey’s Concept: The modern understanding of the Rule of Law is heavily influenced by A.V. Dicey’s work, “Introduction to the Study of the Law of the Constitution” (1885), which posits three pillars: 1) Supremacy of law (no arbitrary power), 2) Equality before the law, and 3) Predominance of legal spirit (rights are protected by courts).
• Constitutionalism vs. Constitutional Formalism: Constitutionalism means that the government is limited by the constitution and must adhere to the rule of law. However, many developing democracies suffer from “constitutional formalism,” a term describing a situation where a country has a progressive constitution and laws on paper, but they are not implemented in practice. The gap between law in text and law in action is a defining feature.
• Developed vs. Developing Nations: In established democracies, institutions are strong enough to enforce the rule of law even against the powerful. In contrast, in many developing countries, the powerful often subvert the legal system. According to the World Justice Project’s Rule of Law Index 2023, countries like Denmark and Norway consistently rank high, while many South Asian and African nations struggle with factors like corruption and weak enforcement.
• Challenges in India: In India, challenges to the rule of law include significant delays in justice delivery (as per the National Judicial Data Grid, over 4 crore cases are pending), allegations of police and prosecutorial misconduct, and the continued existence of colonial-era laws that grant wide discretionary powers to the executive.

Economy & Efficiency These principles relate to the optimal use of resources to achieve desired societal outcomes, a critical aspect of governance in resource-scarce countries.

Term	Meaning	Elaboration
Economy	Minimizing the cost of resources used for an activity (prudent expenditure).	This involves eliminating wasteful and unproductive expenditure. For instance, plugging leakages in the Public Distribution System (PDS) through Aadhaar-based authentication enhances the economy of the food subsidy program.
Efficiency	The relationship between the output, in terms of goods, services, or other results, and the resources used to produce them (maximizing output from a given input).	In building a highway, efficiency would be measured by the cost per kilometer and the time taken for construction compared to set benchmarks. It is about “doing things right.”
Effectiveness	The extent to which the intended outcomes of a policy or program are achieved.	The outcome of building schools is not the buildings themselves (output), but the improvement in literacy rates and learning levels among children. Effectiveness is about “doing the right things.”
Equity	The quality and fairness of outcomes, ensuring that benefits reach all sections of society, especially the vulnerable.	A new metro line is effective if it reduces travel time. It achieves equity only if it is accessible and affordable for low-income groups and persons with disabilities, and not just the affluent.

The Comptroller and Auditor General (CAG) of India increasingly conducts ‘Performance Audits’ which evaluate government schemes not just on financial compliance but on these parameters of Economy, Efficiency, and Effectiveness.

INCLUSIVENESS & EQUITY Good governance ensures that the fruits of development reach all sections of society and that no one is left behind.

• Beyond GDP: Macroeconomic indicators like GDP growth are insufficient to measure well-being. Economists like Amartya Sen, through his “Capability Approach,” argued that development should be assessed in terms of enhancing individual freedoms and capabilities. The United Nations’ Human Development Index (HDI) is a practical application of this, combining measures of life expectancy, education, and per capita income.
• Dimensions of Inclusive & Equitable Growth:
  1. Job-Led Growth: Growth must create sufficient employment. The ratio of employment growth to GDP growth is measured by “employment elasticity.” In India, the post-1991 growth has often been characterized as “jobless growth,” particularly as the services sector (which has lower employment elasticity compared to manufacturing) has grown faster. Periodic Labour Force Survey (PLFS) data often points to high unemployment rates, especially among the youth.
  2. Vicious Cycle of Poverty: This concept, elaborated by economists like Ragnar Nurkse in “Problems of Capital Formation in Underdeveloped Countries” (1953), explains how poverty perpetuates itself. High poverty necessitates high subsidy expenditure, leading to a high fiscal deficit. This forces government borrowing, crowding out private investment and reducing funds for capital expenditure (e.g., on infrastructure), which in turn hinders job creation, thus keeping people in poverty. The recent trend of “competitive populism” or offering “freebies” by state governments exacerbates this cycle.
  3. Gender Empowerment: With women constituting nearly 50% of the population, their exclusion from economic and political life is a major barrier to development. Inclusive growth mandates equal opportunities. Global studies by the IMF have shown that increasing female workforce participation can significantly boost a country’s GDP.
  4. Balanced Regional Development: Economic liberalization in India has led to concentrated development in a few states (e.g., Maharashtra, Gujarat, Tamil Nadu), creating “islands of prosperity in an ocean of poverty.” This widens regional inequalities, fuels migration, and can lead to political instability. Good governance requires policies that promote investment and development in backward regions.
  5. Development of Socially Backward Sections: Equity demands affirmative action and targeted programs to empower marginalized communities (SCs, STs, OBCs, minorities) who have historically been excluded, ensuring they become equal partners in the growth process.
  6. Sustainable Development: Defined by the Brundtland Commission Report “Our Common Future” (1987) as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Ecological degradation disproportionately affects the poor. The World Bank estimates that climate change could push millions into poverty. Hence, sustainable practices are a prerequisite for long-term inclusive growth.

Responsiveness This principle dictates that institutions and processes must serve all stakeholders within a reasonable timeframe.

• Essence of Democracy: A responsive government listens to its citizens and acts on their problems and grievances in a timely manner. The effectiveness of grievance redressal mechanisms like the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) is a measure of responsiveness.
• Example of COVID-19 Vaccination: India’s rapid development and implementation of a massive vaccination program, managed through the digital CoWIN platform, after the devastating second wave of COVID-19, is a prime example of responsive governance. This program was credited with saving millions of lives and enabling economic recovery. This stands in contrast to the prolonged and stringent “Zero-COVID” policy in China, which faced significant public backlash for its lack of adaptability and responsiveness to citizen needs.

CORRUPTION Corruption undermines all other principles of good governance by diverting resources, weakening institutions, and eroding public trust.

• Definitions:
  • World Bank: “The use of public office for private gain.”
  • 2nd Administrative Reforms Commission (ARC) Report, “Ethics in Governance”: Conceptualized corruption through the formula: Corruption = Monopoly + Discretion - Accountability. This implies that corruption thrives where officials have a monopoly over a service, possess high discretion in decision-making, and face low levels of accountability.
• Systemic Corruption: This is not an isolated act but is embedded within the political, economic, and administrative systems. It becomes a normalized part of operations.
• Evolution of Corruption in India:
  • Pre-1991 (Crony Socialism): The “License-Quota-Permit Raj” created an economy of scarcity. Government had immense control over industrial licensing and foreign exchange, creating opportunities for politicians and bureaucrats to extract rents in exchange for permits.
  • Post-1991 (Crony Capitalism): After liberalization, the nature of corruption shifted. With the state’s role in licensing reduced, corruption moved to areas where the government still held significant discretionary power, such as the allocation of natural resources (e.g., coal blocks, 2G spectrum), land acquisition, and large government contracts.
• Crony Capitalism vs. True Capitalism: True capitalism, as envisioned by Adam Smith, rewards innovation and efficiency. Entrepreneurs like Bill Gates became wealthy by creating valuable products. Crony capitalism, however, allows individuals to get rich primarily through their proximity to political power, securing favorable policies, contracts, or resource allocations. This stifles competition and innovation. The Economic Survey of India (2019-20) highlighted this issue, noting how cronyism can lead to a misallocation of capital and lower productivity.
• Socio-Cultural Factors: The rise of a materialistic culture, which equates an individual’s worth with their wealth and possessions, can create societal pressure and justification for engaging in corrupt practices to acquire wealth quickly.

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Prelims Pointers

• Participation Instruments: 73rd & 74th Constitutional Amendment Acts (1992), Right to Information Act (2005), Citizen’s Charters, MyGov.in.
• Agricultural Policy: M.S. Swaminathan chaired the National Commission on Farmers (NCF).
• Essential Commodities Act: Enacted in 1955.
• Rule of Law: Concept famously elaborated by A.V. Dicey.
• World Justice Project: Publishes the Rule of Law Index.
• ‘4Es’ of Governance: Economy, Efficiency, Effectiveness, and Equity.
• Development Indices: Human Development Index (HDI) was co-developed by Mahbub ul Haq and Amartya Sen.
• Poverty Theory: The concept of the ‘Vicious Cycle of Poverty’ is associated with economist Ragnar Nurkse.
• Sustainable Development: The term was defined by the Brundtland Commission Report “Our Common Future” (1987).
• Corruption Definition (World Bank): The use of public office for private gain.
• 2nd ARC Formula for Corruption: Corruption = Monopoly + Discretion - Accountability.
• Historical Economic Systems: License-Quota-Permit Raj (pre-1991), associated with Crony Socialism.
• Post-Reform Phenomenon: Crony Capitalism is linked to corruption in the allocation of natural resources after 1991.
• Transparency International: Publishes the Corruption Perception Index (CPI).

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Mains Insights

• GS Paper II (Governance): The Tension between Decisive and Participatory Governance.

  • Cause-Effect: A government with a strong majority can act decisively and push through reforms quickly. However, as seen with the farm laws, this speed can come at the cost of stakeholder consultation and consensus-building, leading to implementation hurdles and social unrest.
  • Debate: The core debate is balancing efficiency with legitimacy. While participatory processes can be slow and cumbersome, they generate greater public acceptance and long-term sustainability for policies. The challenge for modern governance is to devise mechanisms (like pre-legislative consultation policies) that are both participatory and efficient.

• GS Paper IV (Ethics): Rule of Law vs. Rule by Law.

  • Conceptual Distinction: ‘Rule of Law’ is a normative concept where laws are just, fair, and apply equally to everyone, limiting the power of the state. ‘Rule by Law’ is a system where the government uses law as a mere tool to exercise its power and control society, even if the laws themselves are oppressive or arbitrarily applied.
  • Ethical Dimension: A public servant’s commitment to the ‘Rule of Law’ requires them to act with impartiality and uphold constitutional values, even when faced with political pressure to bend the rules (‘Rule by Law’). This forms the basis of probity in governance.

• GS Paper III (Indian Economy): The Challenge of Jobless Growth and Competitive Populism.

  • Structural Issue: India’s economic trajectory, with a leap from agriculture to services without a robust manufacturing boom, is a primary cause of jobless growth. This creates a large pool of underemployed or unemployed youth, making them susceptible to populist promises.
  • Vicious Cycle: Competitive populism (offering subsidies and freebies for electoral gain) strains state finances, reduces capital expenditure on infrastructure and human capital, which in turn stifles the creation of quality jobs. This is a critical threat to India’s long-term economic stability and demographic dividend. The solution lies in a strategic focus on job-creating sectors (like manufacturing and construction) and fiscally responsible policies.

• GS Paper I (Society) & III (Economy): Inclusiveness as a Multi-dimensional Concept.

  • Interlinkages: Inclusive growth cannot be seen purely through an economic lens. It is deeply interconnected with social dimensions. For instance, balanced regional development (economic) is essential to curb distress migration (social). Gender empowerment (social) is proven to have significant positive impacts on GDP growth (economic). Sustainable development (environmental) is crucial for protecting the livelihoods of the poor (socio-economic).
  • Policy Implication: This necessitates a holistic and integrated approach to policymaking, breaking down ministerial silos. Policies must be designed with an ‘equity’ lens, assessing their differential impact on various social groups.

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Previous Year Questions

Prelims

1. Which one of the following best reflects the most logical and rational message conveyed by the passage? (UPSC CSE Prelims 2023) (Passage context: The passage discussed that Rule of Law is not merely about having laws but ensuring they are based on reason, equality, and justice, and that state power is not exercised arbitrarily.) (a) We need a modern, progressive and liberal system of laws. (b) Having a written Constitution is not enough to ensure the Rule of Law. (c) Rule of Law is a safeguard against the tyranny of the majority. (d) Law must be based on reason and not on the arbitrary power of the State. Answer: (d) The core message was that the essence of the Rule of Law is the supremacy of reason over arbitrary will.

2. In essence, what does ‘Due Process of Law’ mean? (UPSC CSE Prelims 2020) (a) The principle of natural justice. (b) The procedure established by law. (c) Fair application of law. (d) Equality before law. Answer: (a) ‘Due Process of Law’ includes not just following procedure but also ensuring that the law itself is fair, just, and reasonable, which is the essence of the principle of natural justice.

3. The main objective of the ‘Janani Suraksha Yojana’ (JSY) is (UPSC CSE Prelims 2019 - relating to Inclusiveness)

   1. to provide financial assistance to pregnant women
   2. to promote institutional deliveries
   3. to provide nutritional support to pregnant women Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3 Answer: (a) The primary objectives were to reduce maternal and neonatal mortality by promoting institutional delivery among poor pregnant women through conditional cash assistance. While nutrition is a broader goal, JSY’s direct mechanism was financial aid for institutional delivery.

4. The Ninth Schedule was introduced in the Constitution of India during the prime ministership of (UPSC CSE Prelims 2019 - relating to Rule of Law) (a) Jawaharlal Nehru (b) Lal Bahadur Shastri (c) Indira Gandhi (d) Morarji Desai Answer: (a) The Ninth Schedule was added by the First Amendment Act, 1951, when Jawaharlal Nehru was the Prime Minister, to protect land reform laws from judicial review.

5. Which of the following are the two most important features of ‘good governance’? (UP PCS Exam, relevant for UPSC) (a) Transparency and Accountability (b) Participation and Rule of law (c) Responsiveness and Inclusiveness (d) All of the above Answer: (d) While all are features, questions often probe for the most critical ones. However, typically all listed options are core tenets. In the context of the UN’s definition, all these features are considered central to good governance. (Note: UPSC rarely asks such direct “choose two” questions, but this illustrates the concepts). A more likely UPSC question would be application-based. A hypothetical UPSC version could be: “Which of the following actions best exemplifies the principle of ‘Responsiveness’ in good governance?”

Mains

1. “The performance of welfare schemes that are implemented for vulnerable sections is not so effective due to the absence of their awareness and active involvement at all stages of the policy process.” Discuss. (UPSC CSE Mains 2019, GS-II) Answer Framework:

   • Introduction: Briefly define welfare schemes and their importance for vulnerable sections. State that their effectiveness is indeed hampered by a lack of participation and awareness.
   • How lack of awareness hinders performance: Mention issues like low uptake of schemes (e.g., insurance schemes), inability to access entitlements, and vulnerability to exploitation by middlemen.
   • How lack of active involvement hinders performance: Explain that without participation in planning, schemes may not reflect ground realities (top-down approach). Lack of involvement in implementation and monitoring leads to corruption, leakages (as highlighted by the Social Audit mechanism in MGNREGA), and a lack of ownership by the community.
   • Measures to improve awareness and involvement: Suggest using local languages for information dissemination, leveraging Self-Help Groups (SHGs) and Panchayati Raj Institutions (PRIs), using technology (mobile apps, community radio), and strengthening mechanisms like Social Audits and Gram Sabhas.
   • Conclusion: Conclude by stating that a paradigm shift from a top-down, welfare-based approach to a bottom-up, rights-based, and participatory approach is essential for the success of these schemes.

2. “Institutional quality is a crucial driver of economic performance”. In this context, suggest reforms in the Civil Service for strengthening democracy. (UPSC CSE Mains 2020, GS-II) Answer Framework:

   • Introduction: Explain the link between institutional quality (rule of law, low corruption, efficient bureaucracy) and economic performance, citing examples or reports (e.g., World Bank’s Governance Indicators).
   • Role of Civil Service in Strengthening Democracy: Mention its role in policy implementation, ensuring rule of law, maintaining political neutrality, and acting as a link between the government and citizens.
   • Needed Reforms in Civil Service:
     • Recruitment & Training: Shift from generalist to specialist roles, continuous mid-career training (Mission Karmayogi).
     • Accountability & Performance: Implement performance-based incentives and promotions, strengthen accountability mechanisms, and ensure political neutrality by securing tenure.
     • Efficiency & Integrity: Use of technology (e-governance) to reduce discretion and corruption, robust whistleblower protection.
     • Citizen-centricity: Promote responsiveness through mechanisms like Citizen’s Charters and effective grievance redressal.
   • Conclusion: Conclude that these reforms are vital not just for economic growth but for deepening the roots of democracy by making governance more accountable, transparent, and citizen-centric.

3. There is a need for simplification of procedure for disqualification of persons found guilty of corrupt practices under the Representation of the People Act. Comment. (UPSC CSE Mains 2020, GS-II) Answer Framework:

   • Introduction: Briefly explain the provisions for disqualification for corrupt practices under the RPA, 1951, and state the problem of long, complex procedures that allow corrupt individuals to continue in power.
   • Current Procedure and its Complexities: Detail the process – election petition in High Court, appeals to Supreme Court, long judicial delays which often exceed the term of the office itself.
   • Why Simplification is Needed: Argue that this delay undermines the rule of law, erodes public trust in democracy, and fails to deter corrupt practices. It allows a mockery of the legal process.
   • Suggestions for Simplification: Propose measures like special courts or tribunals for time-bound disposal of election petitions (e.g., within 6-12 months), stricter limits on adjournments, and automatic disqualification upon conviction by a trial court (pending appeal). Reference recommendations from Law Commission reports.
   • Conclusion: Conclude that while procedural fairness is important, simplifying and expediting the disqualification process is crucial to cleanse politics and uphold the principles of probity and good governance.

4. What are the main components of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (UPSC CSE Mains 2017, GS-III) Answer Framework:

   • Introduction: Define inclusive growth as broad-based, shared growth that creates opportunities for all and reduces poverty and inequality.
   • Components of Inclusive Growth: Mention key dimensions: Poverty reduction, employment generation, agricultural development, social inclusion (gender, caste), regional balance, and access to essential services like health and education.
   • Analysis of India’s Growth Process:
     • Successes: High GDP growth, significant poverty reduction in absolute numbers, expansion of social safety nets (MGNREGA, NFSA).
     • Failures/Challenges: Jobless growth, rising inequality (Oxfam reports), agrarian distress, persistent regional and social disparities, and gaps in health/education outcomes.
   • Measures for More Inclusive Growth:
     • Economic: Focus on MSMEs and labor-intensive manufacturing, agricultural reforms focusing on farmer income, investing in infrastructure in backward regions.
     • Social: Increase public spending on health and education, focus on skill development (Skill India Mission), and ensure effective implementation of affirmative action policies.
     • Governance: Improve targeting of subsidies, curb corruption, and empower local governments to deliver last-mile services.
   • Conclusion: Conclude that while India’s growth has had some inclusive elements, it has not been sufficiently broad-based. A concerted policy push focusing on quality job creation and human capital development is needed.

5. “Initial success in controlling the weeds of corruption is not sustainable in the long run.” Discuss with special emphasis on the need to plug loopholes in the institutional structure for a long-term solution. (UPSC CSE Mains 2017, GS-IV) Answer Framework:

   • Introduction: Agree with the statement that reactive, event-based anti-corruption drives provide temporary relief but are not sustainable. A long-term solution requires systemic, institutional reforms.
   • Why Initial Success is Not Sustainable: Explain that ad-hoc measures (like sudden crackdowns) fail because corruption is systemic. Once the pressure eases, the “weeds” grow back because the underlying “soil” (institutional loopholes) remains fertile.
   • Institutional Loopholes to be Plugged:
     • Lack of Transparency: Opaque government contracts, discretionary powers. Solution: E-procurement, implementation of RTI in letter and spirit.
     • Weak Accountability: Ineffective vigilance bodies, lack of independent investigation (CBI’s dependence). Solution: Strengthen Lokpal and Lokayuktas, ensure CBI’s autonomy.
     • Electoral System: Opaque political funding. Solution: Electoral reforms as suggested by various committees.
     • Slow Judicial Process: Delays in corruption cases. Solution: Special courts and time-bound trials.
     • Lack of Citizen Engagement: Low public participation in monitoring. Solution: Empower social audits, protect whistleblowers (Whistle Blowers Protection Act).
   • Conclusion: Conclude that a durable anti-corruption strategy must focus on prevention by strengthening institutions, reducing discretion, increasing transparency, and fostering a culture of integrity, rather than just on punitive post-corruption measures.