SECURE SYNOPSIS: 26 FEBRUARY 2019
NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.
Topic– Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues
Key demand of the question
The question expects us to discuss the role played by foreigners who settled in India in the various social, political, cultural movements that took place in India. We have to discuss their contributions and examine its impact.
Directive word
Analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer
Introduction – Explain that a lot of foreigners throughout history have made India their home and contributed immensely to the nation including during the freedom struggle.
Body
- Discuss the contributions of some of the foreigners to the various movements that took place in the pre independence era
- The members of Asiatic Society of Bengal were well acquainted with Indian traditions and led the debate in favor of Eastern education in vernacular language. Though they could not succeed in their efforts, it highlights the respect and recognition to Indian tradition.
- The efforts of Annie Besant for Home Rule along the Irish lines in India denote the reach of the moral voice of the Indian National Movement against British exploitation. She not only led the Home Rule League but was also elected as first woman President of Indian National Congress.
- The most significant event perhaps was A.O Hume’s contribution towards founding of Indian National Congress, which spearheaded the freedom struggle. etc
Conclusion – Summarize your answer by examining the impact of these contributions.
Introduction:
Along with the hundreds and thousands of Indians who dedicated their lives for the cause of their motherland, there were a number of noble and courageous foreigners who stood shoulder to shoulder with their Indian counterparts in this struggle.
Body:
The contributions of some of the foreigners to the various movements that took place in the pre independence era are:
- William Jones & James Princep:
- The members of Asiatic Society of Bengal were well acquainted with Indian traditions and led the debate in favour of Eastern education in vernacular language. Though they could not succeed in their efforts, it highlights the respect and recognition to Indian tradition.
- Margaret Elizabeth Noble (Sister Nivedita)
- From Ireland. Joined Swami Vivekananda’s Ramakrishna Mission.
- Criticized the racial policies of the British, helped during Bengal famine and plague epidemics, worked for upliftment of Women.
- She attacked Lord Curzon for the Universities Act of 1904 and partition of Bengal in 1905.
- She held the British responsible for disastrous state of Indian economy; she attended the Benares Congress in 1905 and supported the Swadeshi Movement.
- She helped Nationalist groups like the Dawn Society and the Anusilan Samiti.
- She propagated for the cause of India throughout America and Europe. Swami Vivekananda described her as a real Lioness.
- Satyanand Stokes:
- Samuel Evans Stokes Jr. was scion of a Wealthy American family. Came to India to work in a leaper home in Himachal.
- fought relentlessly against labour exploitation in the Shimla hills
- Only American to attend Congress session in Nagpur (1920)
- Only foreigner to sign Congress manifesto in 1921 that called upon Indians to give up government service and join the freedom movement.
- Arrested on charges of Sedition, jailed for six months.
- Dr Annie Besant:
- A strong votary of truth, she came to India in 1893 at the age of 46, impressed as she was by its great religion and philosophy. On arrival, she found that the state of things in India were bad.
- She was watchful that Indian revival must be through Indian traditions and customs and not through any of the European concepts.
- As early as 1898 and later in 1902 she urged Indians to were native dress, use and develop Indian manufacturers and also develop a national language.
- Annie Besant entered active politics in 1914. She demanded Home Rule for India and suffered internment for it from June to September 1917. By then she had tried and achieved unification of the Congress and Hindus and Muslims in 1916.
- She fittingly became the president of Indian National Congress in 1917. Tilak declared that if we were nearer our goals, it was due to Dr. Annie Besant’s sincere efforts. Gokhale considered her a true daughter of Mother India.
- Charles Freer “Dinbandhu” Andrews
- English missionary philanthropist who extended his wholehearted support to the freedom struggle and criticized the British for their unjust and racial policies.
- Took part in political and social movements launched by Indian leaders.
- championed the rights of labourers, railway workers and cotton weavers
- actively worked with BR Ambedkar for Harijan demands, campaigned against untouchability
- Gandhiji gave the title of “Dinbandhu” for his compassion for poor.
- Advocated the rights of Indian settler in South Africa, East Africa, West Indies, Fiji and the English colonies in other parts of the world.
- He used his influence in England to arouse public opinion against colonial exploitation.
- Even negotiated with the government in England for Gandhi’s release from prison.
- O Hume:
- His most significant contribution was towards founding of Indian National Congress, which spearheaded the freedom struggle.
- Although there has been a debate of ‘safety value’ theory, historians have concluded that Hume’s genuine sympathies to the Indian miseries motivated him.
- Nellie Sengupta:
- Nellie joined Indian freedom struggle along with her husband by participating in non-cooperation movement in 1920.
- After her husband’s imprisonment during the Assam-Bengal Railwaymen’s strike, she forcefully protested against the District authorities’ imposition of a ban on assembly, addressed mass meetings and courted arrest.
- She defied the law by selling Khadi door to door.
- In 1931 she suffered four months’ imprisonment at Delhi for addressing an unlawful assembly.
- She was elected as the president of Indian national congress at its 47th annual session at Calcutta in 1933. She was also elected on a Congress ticket to the Bengal Legislative Assembly in 1940 and 1946.
- Mira Behn:
- Madeleine Slade known as Mira behn, who brought up in affluent environment of a proud aristocracy came to serve the cause of India’s freedom by identifying herself completely with the life and work of Gandhi.
- She tried to become a bridge between the East and the West.
- She renounced the life of luxury and worked in the service of India.
- She accompanied Gandhi to England in 1931 and undertook a tour of America and Britain in 1934 to enlist sympathy for the Indian cause. She suffered imprisonment in 1932-33 and 1942-44 for the cause of India’s Independence.
- Verrier Elwin
- British by birth, came to India in 1927.He was associated with Seva Sangh of Pune.
- On Gandhi’s advice, worked for tribal upliftment, setup Gond Seva Mandal.
Conclusion:
India’s unassailable position in peaceful assimilation and integration of cultures and her love to respect differences led to the numerous foreigners making India their homeland. It sheltered the persecuted populations, from Parsis to Jews. Those who made India their homeland contributed to its unique cultural heritage and development. They also actively participated in various movements when they sympathized with Indian causes.
Topic– Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues
Directive word
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the key similarities between the two kinds of revenue systems put in place in India by the British.
Structure of the answer
Introduction- write a few introductory lines about the British land revenue system. E.g After gaining full control over Bengal in 1765, Company followed traditional land assessment system in the starting but gradually modified the existing land settlement from time to time to collect maximum possible land revenue which was a need of colonial administration. They initiated auction based farming system as the first experiment in 1772, where land revenue collection rights had been allotted on contract basis. This farming system slowly developed into three major land settlements, viz., Zamindari in Bengal, Raiyatwari in Madras and Bombay, and Mahalwari in North Western Provinces
Body-
Discuss in points about the similarities between the two systems. E.g
- In both cases, the British had favored certain categories of right holders to the detriments of the others by conferring on them full and undivided ownership of the land.
- Owing to the practice of the judicial sale of the properties of defaulting tax payers, on the one hand the domains of Zamindar were divided into medium and small properties, and on the other, Raiyats became medium or big owners by successive acquisitions.
- The introduction of ownership- and of a judicial conception of agrarian relation on a contractual basis- initially only reinforced in the villages the local power of the already dominant individuals or groups, who were to became the first users or the principal beneficiaries of the colonial legislative and legal machinery.
- Both the systems were exploitative and aimed at securing maximum revenue at the cost of Indian farmers and agriculture etc.
Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.
Introduction:
The establishment of East India Company worked as the tool of colonial plunder which operated through monopoly of trade and realization of land revenue. They super-imposed a system over the existing land settlement pattern in tune with British customs and laws relating to land. After gaining full control over Bengal in 1765 (year of Diwani rights acquisition), Company followed traditional land assessment system in the starting but gradually modified the existing land settlement from time to time to collect maximum possible land revenue which was a need of colonial administration.
Body:
- Zamindari System:
- Also known as Permanent Settlement System, it was introduced by Cornwallis in 1793 through Permanent Settlement Act.
- It was introduced in provinces of Bengal, Bihar, Orissa and Varanasi.
- Zamindars were recognized as owner of the lands. Zamindars were given the rights to collect the rent from the peasants.
- The realized amount would be divided into 11 parts. 1/11 of the share belongs to Zamindars and 10/11 of the share belongs to East India Company
- Raiyatwari System:
- It was introduced by Thomas Munro in 1820.
- Major areas of introduction include Madras, Bombay, parts of Assam and Coorg provinces of British India.
- The ownership rights were handed over to the peasants. British Government collected taxes directly from the peasants.
- The revenue rates of Ryotwari System were 50% where the lands were dry and 60% in irrigated land.
The Raiyatwari and the Zamindari system shared certain fundamental similarities.
- In both cases, the British had favoured certain categories of right holders to the detriments of the others by conferring on them full and undivided ownership of the land.
- The group of powerful individuals who became full-fledged proprietors did not include all the cultivators. It consist of a peasant elite like intermediaries of others settlement area that employed agricultural labour, and whose land were often cultivated by tenants.
- Owing to the practice of the judicial sale of the properties of defaulting tax payers, on the one hand the domains of Zamindar were divided into medium and small properties, and on the other, Raiyats became medium or big owners by successive acquisitions.
- The introduction of ownership- and of a judicial conception of agrarian relation on a contractual basis- initially only reinforced in the villages the local power of the already dominant individuals or groups, who were to became the first users or the principal beneficiaries of the colonial legislative and legal machinery.
- Both the systems were exploitative and aimed at securing maximum revenue at the cost of Indian farmers and agriculture
Conclusion:
British revenue systems led to the impoverishment of peasantry by undermining the rights of peasants. Forcible growing of commercial crops led the peasants to buy food grains at high prices and sell crops at low prices. The stability of the Indian villages was shaken and the entire set up of the rural society began to break up. By making land a transferable property, the British facilitated rise of absentee landlords, oppressive moneylenders and pushed the peasant further into misery.
Topic-Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues
Directive word
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the Gurdwara reform movement of the Punjab and bring out its contribution towards Indian freedom struggle.
Structure of the answer
Introduction– write a few introductory lines about the Gurdwara reform movement. E.g The establishment of SGPC and Shiromani Akali Dal (SAD) proved to be a turning point in the history of the Sikhs. A new movement called Gurdwara Reform Movement was started against the Mahants and their mentor.
Body-
Discuss in points, the details of the movement and how it contributed towards Indian freedom struggle. E.g
- The SGPC sent many Akali jathas to various historical Gurdwaras to liberate them from the Mahants.
- Under these pressure many Mahants either surrendered to the Akalis or in many cases, agreed to work as employees of the SGPC.
- But the Mahants of prominent Gurdwaras like Panja Sahib, Taran-Taran, Nankana Sahib and Guru-Ka-Bagh did not agree to handover their Gurudwaras to the Akalis.
- They rather tried to resist them. In all these cases, the Akalis had to launch Morchas to get hold of these Gurudwaras.
- Discuss the Nankana Gurdwara tragedy and the role of the British in it.
- Discuss about the keys affairs of the Golden Temple.
- The Indian National Congress declared its support for the Akali agitation in the special congress session in Delhi.
- The Akali’s were the joined by several freedom fighters, including Jawaharlal Nehru and Kasturirangan Santhanam. Nehru and other were arrested during one such march etc.
Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.
Introduction:
The Akali Movement also known as Gurdwara Reform Movement came into full swing from the early 1920’s. Its aim was to bring reform in the working and management of Sikh Gurdwaras. The Akali Movement was created to free the Sikhs historic Gurdwaras from Mahants who were supported by the British rule. The Sikh Gurdwara Bill in 1925 placed all the historical Sikh shrines in India under the control of Shiromani Gurdwara Prabandhak Committee (SGPC).
Body:
Contribution towards India’s freedom struggle:
- The Akali Movement developed on a purely religious issue but ended up as a powerful episode of India’s freedom struggle.
- The movement arose with the objective of freeing the Gurdwaras (Sikh temples) from the control of ignorant and corrupt mahants (priests).
- Apart from the mahants, after the British annexation of Punjab in 1849, some control over the Gurdwaras was exercised by Government-nominated managers and custodians, who often collaborated with mahants.
- The Government gave full support to the mahants. It used them and the managers to preach loyalism to the Sikhs and to keep them away from the rising nationalist movement.
- The Sikh reformers and nationalists, on the other hand, wanted a thorough reformation of the Gurdwaras by taking them out of the control of the mahants and agents of the colonial regime.
- The nationalists were especially horrified by two incidents — when the priests of the Golden Temple at Amritsar issued a Hukamnama (directive from the Gurus or the holy seats of the Sikh authority) against the Ghadarites, declaring them renegades, and then honoured General Dyer, the butcher of Jallianwala massacre and declared him to be a Sikh.
- The reformers demanded that ‘this foremost seat of Sikh faith should be placed in the hands of a representative body of the Sikhs,’ and organized a series of public meetings in support of their demand.
- To control and manage the Golden Temple, the Akal Takht and other Gurdwaras, a representative assembly of nearly 10,000 reformers met in November 1920 and elected a committee of 175 to be known as the Shiromani Gurdwara Prabhandak Committee (SGPC). Shiromani Gurdwara Parbandhak Committee is also called Parliament of the sikh nation.
- Under the influence of the contemporary Non-Cooperation Movement — and many of the leaders were common to both the movements — the Akali Dal and the SGPC accepted complete non-violence as their creed.
- The Akali movement faced its first baptism by blood at Nankana, the birth place of Guru Nanak, in February 1921. The mahant of the Gurdwara there, Narain Das, was not willing to peacefully surrender his control to the Akalis. The Nankana tragedy was a landmark in the Akali struggle. Mahatma Gandhi, Maulana Shaukat Ali, Lala Lajpat Rai and other national leaders visited Nankana to show their solidarity.
- In May 1921, the SGPC passed a resolution in favour of non-cooperation, for the boycott of foreign goods and liquor, and for the substitution of panchayats for the British courts of law. The Akali leaders, arrested for the breaking of law, also refused to defend themselves, denying the jurisdiction of foreign-imposed courts.
- A major victory was won by the Akalis in the ‘Keys Affair’ in October 1921. The SGPC advised Sikhs to join the hartal on the day of the arrival of the Prince of Wales in India. The Non-Cooperation Movement was at its height in the rest of the country.
- The Government once again decided not to confront Sikhs on a religious issue. It released all those arrested in the ‘Keys Affair’ and surrendered the keys of the Toshakhana to Baba Kharak Singh, head of the SGPC. Mahatma Gandhi immediately sent a telegram to the Baba: ‘First battle for India’s freedom won. Congratulations.’
- The culmination of the movement to liberate the Gurdwaras came with the heroic non-violent struggle around Guru-Ka-Bagh Gurdwara which shook the whole of India. Guru ka Bagh excited religious fervour to a degree unapproached during the 70 years of British rule. The judicial trials of the volunteers were followed with close interest and, when those convicted were being removed to jails to serve their sentences, mammoth crowds greeted them en route
Conclusion:
But the Akalis could not achieve much success on the issue since it neither involved religion nor was there much support in the rest of the country. In the meanwhile, the Government had succeeded in winning over the moderate Akalis with the promise of legislation which was passed in July 1925 and which handed over control over all the Punjab Gurdwaras to an elected body of Sikhs which also came to be called the SGPC.
Topic– Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Why this question
President Ram Nath Kovind on Thursday promulgated the Banning of Unregulated Deposit Schemes Ordinance and the article discusses the details of the ordinance and its impact.
Key demand of the question
The question expects us to discuss in detail the key features of the ordinance and examine its impact in terms of how it protects small investors from frauds. We need to discuss any issues if there are in the ordinance and the way forward.
Directive word
Examine – When you are asked to examine, you have to probe deeper into the topic, get into details, and find out the causes or implications if any .
Structure of the answer
Introduction – Highlight that President Kovind promulgated the Banning of Unregulated Deposit Schemes Ordinance and state the purpose of yh ordinance.
Body
- Discuss the key provisions of the ordinance
- In a bid to protect gullible investors from ponzi schemes, Prime Minister Narendra Modi-led government last week came out with an ordinance that banned unregulated deposit schemes, which will help to tackle the menace of illicit deposit-taking activities.
- Banning of Unregulated Deposit Schemes Ordinance, 2019 does not ban small and medium enterprises (SMEs) from receiving loans in the course of, or for the purpose of, business, the government has clarified.
- The new law permits deposits from ‘relatives’, banks, financial institutions, property buyers, customers (extending an advance payment), and for other designated purposes. Similarly, a proprietor can borrow from a non-relative as long as it is strictly for business purposes.
- Discuss the impact of these measures
- Although the intent of the government behind bringing the ordinance is applaudable, experts believe this ordinance will have widespread ramification on some sectors and small traders.
- normal transactions like an individual reaching out to friends for a quick loan to tide over a crisis, a cash-strapped businessman borrowing from an acquaintance to meet a personal obligation; or, a charitable institution funding students and the ailing, cannot be done post this ordinance.
Conclusion – Give a fair and balanced view regarding the impact of the ordinance and discuss way forward.
Introduction:
The savings of low-income Indian households have traditionally remained unprotected by the government when compared to those of the more affluent economic groups. The President of India recently promulgated the Banning of Unregulated Deposit Schemes Ordinance, which bars all deposit schemes in the country that are not officially registered with the government from either seeking or accepting deposits from customers.
Body:
Rationale behind the ordinance:
- To deal with the menace of illicit deposit taking schemes, as in the recent past, there have been rising instances of people in various parts of the country being defrauded by illicit deposit taking schemes.
- The worst victims of these schemes are the poor and the financially illiterate, and the operations of such schemes are often spread over many States.
- Increasing scams:
- The CBI had lodged about 166 cases in the past four years related to chit funds and multi-crore scams, with the highest numbers in West Bengal and Odisha.
- As per information provided by the Reserve Bank of India, between July 2014 and May 2018, 978 cases of unauthorised schemes were discussed in state-level coordination committee (SLCC) meetings in various states and union territories, and were forwarded to the respective regulators or law enforcement agencies in the states.
Key features of the ordinance:
- The Ordinance provides for a mechanism to ban unregulated deposit schemes and protect the interests of depositors.
- It also seeks to amend three laws, i.e., the Reserve Bank of India Act, 1934, the Securities and Exchange Board of India Act, 1992 and the Multi-State Co-operative Societies Act, 2002.
- The ordinance allows for compensation to be offered to victims through the liquidation of the assets of those offering illegal deposit schemes.
- Deposit:The Ordinance defines a deposit as an amount of money received through an advance, a loan, or in any other form, with a promise to be returned with or without interest. Such deposit may be returned either in cash or as a service, and the time of return may or may not be specified.
- Unregulated deposit scheme:A deposit-taking scheme is defined as unregulated if it is taken for a business purpose and is not registered with the regulators listed in the Ordinance.
- Deposit taker:The Ordinance defines deposit takers as an individual, a group of individuals, or a company who asks for (solicits), or receives deposits. Banks and entities incorporated under any other law are not included as deposit takers.
- Competent Authority: The Ordinance provides for the appointment of one or more government officers, not below the rank of Secretary to the state or central government, as the Competent Authority. Police officers receiving information about offences committed under the Ordinance will report it to the Competent Authority.
- Designated Courts: The Ordinance provides for the constitution of one or more Designated Courts in specified areas.
- Central Database: The ordinance will help in the creation of a central repository of all deposit schemes under operation, thus making it easier for the Centre to regulate their activities and prevent fraud from being committed against ordinary people.
- Clear-cut time lines have been provided for attachment of property and restitution to depositors
- Attachment of properties / assets by the Competent Authority, and subsequent realization of assets for repayment to depositors.
- Severe punishment and heavy pecuniary fines to act as deterrent.
Impact of the ordinance:
- Popular deposit schemes such as chit funds and gold schemes, which as part of the huge shadow banking system usually do not come under the purview of government regulators, have served as important instruments of saving for people in the unorganised sector.
- The proposed Ordinance will immediately tackle the menace of illicit deposit-taking activities in the country launched by rapacious operators, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned savings.
- It will altogether ban unregulated deposit taking schemes, and the law has adequate provisions for punishment and disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally
- The Saradha chit fund scam in West Bengal is just one example of such a heinous financial crime against depositors.
- The ordinance reflects a timely recognition of the need for greater legal protection to be offered for those depositors with inadequate financial literacy.
Limitations:
- Unregulated Deposit Ordinance bans only Ponzi schemes not regulated deposits.
- It does not stop any entity from seeking funds for its business or an individual raising a quick loan from relatives to tide over a crisis.
- Charitable institutions will find it difficult to fund students or those seeking medical assistance.
Way forward:
- Policymakers will have to make sure that the bureaucrats responsible for the on-ground implementation of the ordinance are keen on protecting the savings of low-income households.
- There must also be checks against persons in power misusing the new rules to derecognise genuine deposit schemes that offer useful financial services to customers in the unorganised sector.
- In the past there have been several cases of politicians acting in cahoots with the operators of fraudulent deposit schemes to fleece depositors of their hard-earned money.
Conclusion:
While the intent of the ordinance, which is to protect small depositors, is indeed commendable, the benefits that depositors will eventually derive from the new legislation will depend largely on its proper implementation.
Topic– Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Why this question
The article digs deep into controversies and criticism faced by e-pharmacies and discusses at length as to how e-pharmacies will be beneficial for the Indian patients.
Directive word
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the e-pharmacies in India and bring out how they would help in increasing competition and lead to reduced prices of medicines for the customers.
Structure of the answer
Introduction– write a few introductory lines about the e-pharmacies in India. E.g Amid a slew of conflicting judicial decisions from different High Courts, the legality of e-pharmacies continues to be questioned and unclear.
Body-
Discuss in points as to how they would lead to lower prices of medicines for Indian patients. E.g
- The more prudent way of looking at the entry of e-pharmacies is competition and the resultant effect it will have on lowering the price of medicine for Indian patients.
- In a fully functional, competitive market, pharmacists would compete with each other for business. This competition could happen in the form of discounts or improving operational efficiency.
- Over the last decade, the Competition Commission of India (CCI) has had to deal with several complaints alleging that trade associations of pharmacists are providing platforms for cartelisation where pharmacists are basically rigging the market.
- The practice of requiring pharmaceutical companies to apply for a no-objection-certificate (NOC) from the regional trade association before they appoint new stockists in a region to sell a particular drug has the effect of artificially restricting competition in certain markets because more stockists mean more competition. By creating such artificial, extra-legal barriers to the free trade of medicines within India, these trade associations create huge distortions in the Indian market.
- It is suspected that these practices continue despite multiple restraining orders by the CCI.
- One major factor that contributes to high drug prices in India is the unreasonably high trade margins.”
- One of the culprits for this phenomenon identified by the CCI was “self-regulation by trade associations [which] also contributes towards high margins as these trade associations control the entire drug distribution system in a manner that mutes competition etc.
Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.
Introduction:
An online pharmacy, Internet pharmacy, or e-pharmacy is a pharmacy that operates over the Internet and sends the orders to customers through the mail or shipping companies. Amid a slew of conflicting judicial decisions from different High Courts, the legality of e-pharmacies continues to be questioned by various trade associations such as the All India Organisation of Chemists and Druggists (AIOCD).
Body:
E-pharmacies lead to lower prices of medicines for Indian patients:
- E-pharmacies, which operate through websites or smartphone apps on the Internet, offer medicines for sale at a discount of at least 20% when compared to traditional pharmacists, with the added convenience of home delivery of medicines to one’s doorstep.
- E-pharmacies offer the comfort of shopping from home, privacy, and price discounts. It also allows access to drugs, not available locally.
- The more prudent way of looking at the entry of e-pharmacies is competition and the resultant effect it will have on lowering the price of medicine for Indian patients.
- The history of India’s trade associations of pharmacists is one of rampant, unabashed cartelisation that has resulted in an artificial inflation of medicine prices.
- In simple terms, this means that pharmacists, who should otherwise be competing with each other to offer lower prices for their customers, prefer to enter into agreements with each other to fix the price at which they will sell medicines to patients.
- In a fully functional, competitive market, pharmacists would compete with each other for business. This competition could happen in the form of discounts or improving operational efficiency.
- The Competition Commission of India (CCI) has had to deal with several complaints alleging that trade associations of pharmacists are providing platforms for cartelisation where pharmacists are basically rigging the market.
- The practice of requiring pharmaceutical companies to apply for a no-objection-certificate (NOC) from the regional trade association before they appoint new stockists in a region to sell a particular drug. This has the effect of artificially restricting competition in certain markets because more stockists mean more competition.
- By creating such artificial, extra-legal barriers to the free trade of medicines within India, these trade associations create huge distortions in the Indian market. It is suspected that these practices continue despite multiple restraining orders by the CCI.
Risks Associated with E-Pharmacies:
- India’s pharmacy laws are derived from the Drugs and Cosmetics Act, 1940, Drugs and Cosmetics Rule, 1945, and the Pharmacy Act, 1948.
- These laws predate the advent of online commerce in India, leaving the business out of the purview.
- Unlike common items, drugs are highly potent and its misuse or abuse can have serious consequences on human health, not just for the one person consuming it but for humanity at large as some drugs can be addictive, habit-forming and harmful to the body.
- A large number of children/minor or people from uneducated rural background use the internet and can be victims of wrong medication while ordering medicines online.
- The risks exist in buying drugs online:
- Supply of fake and illegal drugs;
- Abuse on account of fake or forged or no prescriptions;
- Lack of verification of the ultimate user;
- Unhealthy competition;
- Abuse of critical health data generated online; and
- Mishandling during transport; are some of them.
Way Forward:
- Making draft guidelines is the need of the hour.
- E-pharmacies market is $18 billion and will grow to $55 billion by 2020.
- Industry experts estimate the market to be generating 3,000-4,000 orders on a daily basis.
- According to the draft guidelines that are yet to be formalised, e-pharmacies have to register for a licence with the Drug Controller General of India (DCGI), which will be valid for three years.
- They do not allow e-pharmacies to sell narcotic drugs, tranquilisers, and Schedule X drugs, and neither are they allowed to advertise.
- These draft guidelines are along the lines of laws in the US, where the regulators monitor e-drug sales.
- The National Association of Boards of Pharmacy (NABP), the apex pharmacy body in the US, gives registration and certification for e-pharmacies and they have to display the certification logo on their website.
Conclusion:
Specific and clear-cut rules should be made for selling, prescribing, dispensing, and delivering prescription drugs through e-pharmacies. In its recent policy note on “Making markets work for affordable healthcare”, the CCI noted, “One major factor that contributes to high drug prices in India is the unreasonably high trade margins.” One of the solutions proposed by the CCI was encouraging more e-pharmacies.
Topic– money-laundering and its prevention
Why this question
Recently in the wake of the Pulwama attack the FATF has criticized Pakistan for its role. In this context it is important to discuss about FATF, its mandate and its role.
Directive word
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the role of the FATF in preventing money laundering and terror financing across the world.
Structure of the answer
Introduction– write a few introductory lines about the FATF. E.g The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering. In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.
Body-
- Discuss about the objectives of the FATF. E.g
- The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- Discuss about the role played by FATF. E.g
- The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
- They form the basis for a co-ordinated response to these threats to the integrity of the financial system and help ensure a level playing field.
- First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
- The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.
- In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse etc.
Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.
Introduction:
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7 countries to develop policies to combat money laundering. In 2001, its mandate expanded to include terrorism financing. It monitors progress in implementing the FATF Recommendations through “peer reviews” (“mutual evaluations”) of member countries. The FATF Secretariat is housed at the OECD headquarters in Paris.
Body:
Objectives of the FATF:
- To set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing.
- To tackle other related threats to the integrity of the international financial system.
- Act against illegal money.
- Identify cash couriers.
- Financial sanctions against designated terrorists.
- Deprive designated persons of their resources.
Role of the FATF:
- The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.
- They form the basis for a co-ordinated response to these threats to the integrity of the financial system and help ensure a level playing field.
- First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.
- The 2003 Forty Recommendations require states, among other things, to:
- Implement relevant international conventions
- Criminalise money laundering and enable authorities to confiscate the proceeds of money laundering
- Implement customer due diligence (e.g., identity verification), record keeping and suspicious transaction reporting requirements for financial institutions and designated non-financial businesses and professions
- Establish a financial intelligence unit to receive and disseminate suspicious transaction reports, and
- Cooperate internationally in investigating and prosecuting money laundering
- The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.
- In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.
- The FATF’s decision making body, the FATF Plenary, meets three times per year.
Challenges faced by FATF:
- First, the task of establishing a world-wide anti-money laundering network. This strategy is designed to expand and strengthen the regional bodies of the FATF.
- The second major challenge confronting the FATF is how best to manage its agenda in order to ensure that its countermeasures remain up-to-date, comprehensive and effective. International co-operation between financial regulators and law enforcement has been identified as cardinal to this goal
FATF and India:
- Recent proposal that Pakistan put back in the greylist could affect Pakistan’s credit rating. This will adversely impact its ability to raise loans from major international financial institutions to service existing debt.
- This will become even more difficult as compared with the previous listing, given the adversarial relationship with the US and the latter’s influence in major financial institutions. Pakistan will not have adequate resources to fund terrorism
- The decisions of the United Nations Financial Action Task Force (FATF)are about using the threat of economic punishment to move Pakistan away from funding terrorists operating against Afghanistan and India
- Being on the grey list would mean that Pakistan’s transactions are closely monitored. This would further cripple the country’s economy as companies across the world would hesitate from doing business with Pakistan.
- The International Monetary Fund and the World Bank too would avoid giving loans to Pakistan.
Conclusion:
The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. As of now there are only two countries in the blacklist — Iran and North Korea — and seven on the grey list, including Pakistan, Sri Lanka, Syria and Yemen.
Topic – corporate governance
Why this question
The article discusses the recommendations of Uday Kotak committee on corporate governance and the impact that the implementation of the recommendations have had on the corporate sector in India and the ethical dilemmas that it presents before them. This question will be important for the corporate ethics of paper 4.
Key demand of the question
The question expects us to discuss the recommendations of the committee and thereafter, bring out what the impact of the reforms have been on corporate governance in India. Next, we need to discuss how the family run corporations in India are faced with certain ethical dilemmas and discuss the way forward.
Directive word
Examine – When you are asked to examine, you have to probe deeper into the topic, get into details, and find out the causes or implications if any .
Structure of the answer
Introduction – Highlight why corporate governance in India has been in focus because of certain scandals etc and how SEBI constituted the Uday Kotak committee.
Body
- Discuss the recommendations of the committee
- Reduction in the maximum number of listed entity directorships from 10 to 8 by April 01, 2019 and to 7 by April 1, 2020
- Expanding the eligibility criteria for independent directors
- Enhanced role of the Audit Committee, Nomination and Remuneration Committee and Risk Management Committee
- Disclosures of auditor credentials, audit fee, reasons for resignation of auditors, etc.
- Disclosure of expertise/skills of directors
- Enhanced disclosure of related party transactions (RPTs) and related parties to be permitted to vote against RPTs
- Mandatory disclosure of consolidated quarterly results with effect from FY 2019-20
- Enhanced obligations on the listed entities with respect to subsidiaries
- Discuss the reason why such reforms were necessitated and the impact that it’s implementation have had on corporate governance.
- Discuss the ethical dilemmas presented before family run businesses, higher level of accountability to stakeholders etc
Conclusion – Give your view and discuss way forward.
Introduction:
Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled. It essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.
A committee was set up chairmanship of Uday Kotak to recommend for improving standards concerning corporate governance of listed companies in India.
Body:
There has been a significant rise in its importance, owing to very public, messy scandals in blue chip companies such as Satyam, as well as efforts by regulators to ensure strict investor and minority protection.
Committees in the past, such as those led by Kumar Mangalam Birla and N.R. Narayana Murthy, contributed to the process. The Kotak committee has extensively examined the current state and has made recommendations that will help improve governance and enhance investor confidence. It aims to break the nexus between promoters and their companies.
- Independent Directors: At least half of board members to be independent directors at listed companies, while all directors must attend at least half of board meets. Public shareholders’ nod must be mandatory for non-executive directors over 75 years of age. more transparency on appointment of independent directors; wants them to play a more active role on the boards
- Separation of the roles: Roles of chairman and managing director at listed firms should be separated and chairmanship should be limited to only non- executive directors. Listed firms with more than 40% public shareholding should have separate roles of chairperson and MD/CEO with effect from April 1, 2020.
- Minimum number of board of directors: The Committee has proposed that now board of directors shall comprise not less than six directors. Appointment of female independent directors
- Minimum number of board meetings: The board shall meet at least 4-5 times a year, with a maximum time gap of one hundred and twenty days between any two meetings and at least once a year.
- Minimum compensation and remuneration: Top 500 listed entities by market capitalization shall pay compensation to each independent director as Rs 5 lakh per annum, whether through sitting fees or profit linked commissions.
- Credit ratings: Updated list of all credit ratings obtained by the listed entity must be made available at one place, which would be very helpful for investors and other stakeholders.
- Panel suggested no person to be appointed as alternate director for an independent director of a listed company
The ethical dilemma regarding the recommendations arises in case of board of a family business. In India, many family businesses have been inducting women from the promoter family into their business. Daughters, wives, sisters, sisters-in law etc. may not tick the box as being a suitable woman independent director, but can still be appointed as an executive director. Boards may face similar dilemmas between professionals and kinship.
Another significant change which will occur is the separation of the roles of the chairperson and CEO/MD for the top 500 listed companies. The chairperson, a non-executive director, can no longer be related to the MD or CEO as per the definition of “relative” under the Companies Act, 2013, leading to a conundrum in succession for family-run businesses.
The need of the hour is for families to start thinking about these changes and planning for their implementation.
Conclusion:
Currently, India accounts nearly 3% of world GDP and 2.5% of global stock market capitalisation – with 5,000 listed companies and more than 50 companies in the global Fortune list. Uday Kotak committee recommendations hold importance in growing concerns for corporate governance. The recommendations of the Kotak committee will enhance transparency and effectiveness in the way boards of listed companies function.
Topic- Contributions of moral thinkers and philosophers from India and world.
Directive word
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the seven deadly sins, expounded by Mahatma Gandhi and how they affect the society at large.
Structure of the answer
Introduction– write a few introductory lines about the Mahatma Gandhi. E.g mention about his role in freedom struggle vis a vis his policies of nonviolence and satyagraha.
Body-
Discuss in detail about the seven deadly sins, mentioned by M.K Gandhi. E.g
- Wealth Without Work
- Pleasure Without Conscience
- Knowledge Without Character
- Commerce (Business) Without Morality (Ethics)
- Science Without Humanity
- Religion Without Sacrifice
- Politics Without Principle
Discuss briefly about each principle and how it affects the society.
Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.
Introduction:
Seven Social Sins by Mahatma Gandhi were first published in his newspaper Young India in 1925. It refers to behaviours that go against the ethical code and thereby weaken society. When values are not strongly held, people respond weakly to crisis and difficulty.
Body:
The underlying principle behind all the seven sins is requirement of exercising responsibility before rights and never neglecting one’s moral duties and ethos.
- Wealth without Work: It depicts making wealth by unfair means, by taking short cuts. Example: Black Money, Tax evasion, scams, insider trading etc,
- Pleasure without Conscience: Happiness that is earned at the expense of others is no less than a sin. A person’s selfishness forces him to neglect the interests of others. It would encourage habits without moral reasoning. It would also result in the increased use of alcohols, drugs, mindless consumerism etc.
- Knowledge without character: Character imbibes qualities of integrity and honesty in a knowledgeable person. This sin can make a person like Osama Bin Laden and knowledge with character can make him like Swami Vivekananda.
- Business without morality: It would result in over–exploitation of one particular section of the community at the cost of another. This would result in increased tension among communities and social friction. Poor working conditions, adulteration, lack of security are examples of this sin.
- Science without humanity: The large pharmaceuticals keeping the prices of drugs high which is out of reach of the poor and the needy. Nuclear power, if used for electricity generation then it is fine but for ruining countries like Hiroshima and Nagasaki bombing is absolutely unethical .
- Religion without sacrifice: Religion today has been reduced to mere practices and rituals. Not bringing the religious teachings of compassion, affection and brotherhood in our lives is a sin.
- Politics without principle: Criminalization of politics, unaccounted money, use of muscle power shows the politics without principle.
Conclusion:
Mahatma Gandhi was not only a capable leader but a great thinker as well. These sins revolve around the principles of integrity, self-restraint, sacrifice, Humanism and mutual cooperation. The sins are of great importance in today’s situation mired with a lot of pains and conflicts. These principles are instrumental in holding the society together.
