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Economics

RASHTRIYA SWASTHYA BIMA YOJANA

  Rashtriya Swasthya Bima Yojana (RSBY) was launched by Ministry of Labour and Employment, Government of India in 2008 to provide health insurance cover to Below Poverty Line population and informal sector workers of India. In 2013-14 budget, the benfits of RSBY is extended to few other categories like the rickshaw pullers, auto taxi drivers, and it budget allocation has been increased to 1137 Cr. The scheme is today the world’s largest medical insurance programme covering over 120 million poor people in the country. The objective of the scheme is to protect these families from shocks related to catastrophic expenditures on health by improving access to health and reducing out of pocket expenditure. Main Features of RSBY: • This is a Smart Card based cashless and paperless social health insurance scheme.• It provides annual hospitalisation cover up to Rs. 30,000 for a family of five members through health insurance companies. Families pay only a registration fee of Rs. 30 and get a RSBY smart card which helps in accessing empaneled hospitals across the country for in-patient treatment.• Transportation expenses up to Rs. 1,000 per year are provided in cash for travelling to the hospital.• All pre-existing diseases are covered from day one. There is no age limit to enrol in the scheme.• 75 % of the cost (premium) of the scheme is borne by Central Government (90% in case of Jammu & Kashmir and North-Eastern States) and the rest is borne out by respective State government. • State Governments can top-up the coverage amount beyond Rs. 30,000.• Started in few districts in 2008, the scheme has spread into 486 districts across 28 States and Union Territories as of December 2012.• The premium charged by insurance companies has large variations ranging from Rs. 224 to Rs. 745 per family per year in a district. The average premium which was Rs. 600 in 2008 has come down to Rs. 350 in 2012.• Around 12,000 hospitals are empanelled under RSBY to provide hospitalisation benefits to the enrolled members in RSBY – 70 per cent are private hospitals and 30 per cent are public hospitals.• Though almost all cases of hospitalization are covered, package rates have been fixed for around 1,100 procedures. RSBY has garnered an enviable position in India’s policy space. The United Nations Development Programme (UNDP) and International Labour Organization (ILO) picked it up as one of the top 18 social security schemes in the world.In June 2011, the World Bank came out with its first-ever review of social welfare policies in India. For most part, the review panned the policies for their faulty design and sloppy implementation. However, there was one exception—the Rashtriya Swasthya Bima Yojna (RSBY), or the national health insurance scheme. The RSBY has received rave reviews even from international organisations. The GIZ (or the German Agency for International Cooperation that, along with the World Bank, was involved in designing the scheme) in its January 2013 report has found that based on data from three states—Bihar, Uttarakhand and Andhra Pradesh—90 percent of the respondents were satisfied with the scheme. The criticism against RSBY is at two broad levels: • The first concern is that, in the absence of a strong primary and secondary health infrastructure, it increases the tendency among patients to get hospitalised at the first instance. As an off-shoot, it leads to increased frauds. Various studies and reports have shown how empanelled hospitals did not have adequate facilities, or how hospitals conducted unnecessary hysterectomies on patients to make easy money through the cashless insurance schemes.• Second, as more and more people use insurance to pay their bills, insurance companies will ask for higher premiums from the government. In time, this trend could make the scheme unviable. Should health care be provided through government channels or through giving out medical insurance? One public health expert says that while you could combine both approaches, it would be better if the government manages the demand. India has failed miserably in managing supply since its independence. Providing insurance not only gives the poor a chance to access private care but also provides a business case for private players to service remote areas.    

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GATT

GATT    There were 8 rounds of negotiations between participating countries between 1947 and last year of GATT(1995). The first 6 rounds were related to curtailing tariff rates and 7th round included non tariff obstacles. 8th round in 1994 also known as Uruguay Round included a number of new subjects for consideration which also became most controversial. WTO was culmination of Urugway round. WTO was constituted on Jan 1, 1995. GATT was signed in 1947 by 23 countries in Geneva in wake of reducing international trade due to tariff restriction imposed by various countries during great depression of 1930s. Following were main objects of GATT • To provide equal opportunities to all countries in international market for trading purpose without any favor• To increase the effective demand for real income growth and goods• To minimize tariffs and other restrictions on trade for ensuring mutual benefits and to eliminate favours from international trade.• To provide amicable solutions to international trade related disputes by giving advices to member countries• To ensure better living standard in the world as a whole. GATT also contained MFN(Most favored Nation) clause that is any concession given to any nation was automatically given to all the member countries.Urugway round was started in 1986 and a detailed document known as Dunkel Proposal, was prepared after extensive discussion on various matters related to trade, which culminated into Final act in 1993. India signed this proposal on 1994. GATT had only dealt with international trade in goods whereas, WTO also deals with trade in services, free foreign investment regimes in different countries, adoption of IPR, quota free trading in textiles and also free trading in agriculture. WTO is watchdog of International trade. WTO has provisions for anti-dumping duty and also prevention of non tariff barriers. The highest decision making body of WTO is ” the trade policy review committee” consisting of trade ministers of member countries. This committee meets once in 2 years to address various problems/items related to implementation of agenda of WTO. So far 8 ministrial conferences have been held at Singapore(1996), Seattle(1999), Doha(2001), Cancun(2003), Hongkong(2005) and Geneva(1998,2008, 2011).WTO has so far conducted following agreements: • Extension of GATT that is reduction of cusom duty on industrial goods to make world free trade zone. Under this agreement, peak rate of custom duty is reduced in phased manner to boost trade volume among member countries. The basic objective of this agreement is to reduce custom duty at 0%.• Abolishment of multifibre agreement(MFA) – MFA was imposed by developed countries in 1974 under which they fixed quota of textile, fabrics, garments to import from developing countries. The purpose was to protect their textile industries gainst comptition from cheap textitles coming from developing countries. WTO decided to dismantle MFA by end of 2004 and to create a quota free world trade in textile and as a result it was dismantled on 31st Dec, 2004. China was late entrant in WTO so quota for China was abolished in 2008. • TRIPS• General agreement on trade in services(GATS)• AOA- Agreement on Agriculture• TRIMS – Trade related Investment measures• NAMA- Non agricultural market access. TRIPS : This agreement pertains to trade related Intellectual Property Rights like trademark, industrial design, copyright, patents etc. India was having process patent regime since 1972 under Indian Patent Act 1970, whereby Indian drug companies could manufacture a patented drug by adopting different process thereby violating the product patent and not giving royalty to product patent holder and it was known as ‘patent piracy’ by developed countries. Process patenting came to an end after 3rd amendment of Indian Patent Act, 1970 in 2005 and product patenting was adopted to comply with TRIPS agreement of WTO. Introduction of product patenting implies that thereafter the tenure of patented drug shall be 20 years over which the patent holder will enjoy royalty as against common fear that drug prices could escalate after product patent. What has actually happened is that barring few drugs, there has not been any escalation in prices because 95% of drugs are off-patent and many of them are rotated through WTO beside product patenting of drugs does not apply to existing drugs. There are three important regulatory provisions embedded in Indian Patent Act within WTO 1. Drug Price Control Order: Indian Government can invoke an order if it finds that a patented drug is too high priced and unaffordable by the masses.2. Provision for compulsory Licensing: It empowers government to provide license to any firm to manufacture a patented drug if the patented drug is sold in India at very high price3. Provision for Parallel Import: Cheap substitute of high price patented drug can be imported for masses. Indian Government also enjoys right to cancel the license of a patentee in the event of requisite conditions of a patented act not being fulfilled. Introduction of drug patenting is expected to do away with spurious drugs in India.    

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MID DAY MEAL SCHEME

Mid Day Meal Scheme   • Covers all children studying in Classes I-VIII in govt, govt aided local body, EGS and AIE centers including Madarasas supported under SSA.• Addresses hunger and education of majority of children in India• The Working Group on Elementary Education & Literacy for the 12th Plan has recommended coverage of private unaided schools located in the SC, ST and minority concentration districts, under the MDMS, in a phased manner, during the 12th Plan.• The Government has provided Rs.11937 crores for the Mid Day Meal Scheme (MDMS) scheme in the current year. Object of MDM 1. Improve nutritional status of children2. Encouraging poor children, belonging to disadvantaged sections to attend school more regularly and help them concentrate on classroom activities3. Providing nutritional support to children of primary stage in drought affected areas during summer vacation.      

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EDUCATION

EDUCATION    Before 1976, Education was state subject and Constitutional amendment of 1976 shifted it to concurrent list. It provided central government following responsibilities• Reinforce the national and integral character of education• Maintaining quality and standard including those of the teaching profession at all levels, • the study and monitoring of the educational requirements of the country. National Education policy (NPE) 1986 and Program of Action (POA), 1986 as updated in 1992 are most notable policies and programs of government. NPE envisages • A national system of education to bring about uniformity in education• Making adult education programs a mass movement• Providing universal access, retention and quality in elementary education• Special emphasis on education of girls• Establishment of pace settign schools like navodaya Vidyalaya in each district• Vocationalisation of secondary education• synthesis of knowledge and inter-disciplinary research in higher education• starting more open universities in the states• strenghening the AICTE• Encouraging sports, physical education, Yoga and• adoption of an effective evaluation method.    

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ASHA

ASHA- Accredited Social Health Activist   • It works as an interface Between community and public health system.• They are central feature of NHRM community based health care delivery• They are accountable to panchayats.• Their work involves counselling on improved health practices, prevention of illness and complications and appropriate curative care or referral for pregnant women, newborn or ill children as also malaria, TB and other conditions. They r also involved in social marketing of sanitary napkins and spacing contraceptives. • ASHAs are reaching around 70% of population so 30% still remain unattended.• Over 7.99 lakh ASHAs provided drug kits so far.These kits contain generic AYUSH and alopathic medicines for common ailments. Many state are also providing equipment kits for home based new born care. Impact of ASHA as per study done by planning commission:1. 65% beneficiaries r visited by ASHA once in 15 -30 days .2. 80% beneficiaries confirmed delivery of free drugs by ASHA3. 65% opted for institutional delivery. 60% opted for antenatal care in govt facility.4. 56% couples reported use of contraceptives of which 88 % availed it from govt health counters.    

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POVERTY

POVERTY   Poverty is a situation where the the individual or communities lack the resources, ability and environment to meet the basic need of life. Poverty can be defined as a social phenomenon in which a section of population is unable to meet even its basic neccessities of life. Though this minimum neccessity depends on level of development in country. It depends on average level of living in a society. In india, the generally accepted definition of poverty emphasis minimum level of living rather than a reawonable level of living.Absolute poverty is destitution wherein one lacks basic human needs including clean water, food , clothing and shelter, health and education. Extreme poverty is called penury. Relative poverty refers to lacking a usual or socially acceptable level of resource or income as compared with others in society. “In human society too much wealth and too much poverty is a great impediment to the higher development of the soul. It is from the middle classes that the greate ones of the world come. Here the forces are very equally adjusted and balamced.”- Swami Vivekanand. Poverty and unemployment are considered as the biggest challenge to deveolpment planning in India.Multidimension poverty Index: MPI indicates the share of population that is multidimensionally poor adjusted by the intensity of deprivation in terms of living standard, health and education. HDR 2010 now measures poverty in MPI. India has MPI of 0.296 and poverty ratio 41% considering PPP $1.25 a day. About 1.4 bn people in world are estimated to live in absolute poverty today. Estimation of poverty at national and state level is carried out by planning commission where as BPL census to identify households below PL in rural areas is conducted by Ministry of rural develpment. Tendulkar committee and NC Saxena committee has given methodology of estimation of poverty and BPL census in rur areas and SR Hasim committtee isnset up to recommend methodolgy of identifying BPL in urban areas. Presently planning commission uses methodolgy recommended by Tendulkar committee. As per this method, estimated population below poverty line was 37.5 % in 2004- 05 considering poverty line at Rs 446 per month in rural and Rs 578 per month in urban areas at 2004-05 price levels. In 2011-12, according to tendulkar methodology, poverty line is at Rs 33.3 in urban and Rs 27.2 in urban areas in a day. Recent estimates of planning commision based on nsso 68th round of survey on household consumer expenditure shows that population below poverty line is 21.9% in 2011-12 that is annual drop of 2.2%. If this trend is sustained, it would be an end to official poverty in India. As per 2009-10 data nsso 66th round household consumption survey, planning commission estimated poverty at 29.8%. Now despite slacking growth rate in last 2 years, as per planning commission, poverty reduced by 8 percentage point in last 2 years. Though for all practical purposes, actual figure of poverty could be as high as 65%. Even government is not considering this data for identifying poors for its food security initiative. PC must rethink its formal methodology.    

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UNEMPLOYMENT

UNEMPLOYMENT    An unemployed person is one who have potentialities and willingness to earn is unable to find a remunerative work. Sociologically it is defined as “forced or involuntary separation from remunerative work of a number of normal working force that is , 15-59 age group during normal working time at normal wages and under normal crcumstances.” Planning commision has defined a person marginally unemployed when it remains without work for 6 months. International labor organization assumes a person employed if it gets 15 hours work in a week. Types of unemployment: There are many ways in which unemployment can be classified. One is Seasonal unemployment, cyclical and technological unemployment. Seasonal unemployment is when person is unemployed in some seasons of year. It generally happen in agriculture based sectors like in sugar factories and in agriculture itself.Cyclical unemplyment happen due to voltality in trade and business. When businessmen earns higher profits, they invest it in business which increases employment but when profit goes down or loss comes in, they start firing workers as we have seen it happen in 2009 recession.Techonological unemployment is caused when there is decrease in number of available jobs due to automation or mechinzation. Advancement of techonolgy generally causes displacement of human labour. In fact some new inventions do more than displacing human labor. They causes damage to old investments and that exacerbates poverty and thus restrict market for new investments. Thusnwe see a vicious circle created.Educational unemployment is created when the system of education can not produce employable persons. One of UGC reports stated that present system of education is generating much waste and stagnation. A large number of graduates remain unemployed because industry does not find them suitable for existing jobs. Education seems to be of little relevance to the needs of nation. Some concepts related to labor force All perons who are working and though not working, are seeking and available for work, are deemed to be in lobor force. Hence all those who are not working and neither seek8ng nor available for work are jot considered part of labor force and does not figure in unemployment data.Labor force participation rate (LFPR)is ratio of number of persons in labor force by total population.Work participation ratio is ratio of number of persons in workforce and total population.Unemployment rate is ratio of number of people unemplyed and number of persons in labor force.Usual principal status of labor force It is status of individual during a reference period of one year. According to this concept if a person is either working or looking to work during longer part of a year ie more than half of year will be part of labor force. Therefore usual status measure reflect only lang unemployment spells. For example a male would be unemplyed on usual status only when unemployed spell during reference year is longer than emploed period.Usual principal and subsidiary status This concept was introduced to widen the UPS concept to include even those who r outside labor force on basis of majority time criteria but had been employed for some part of year( nsso 61st round assumed this period 30 days) on the usual basis. Therefor it is a hybrid concept incorporating both major time criteria and priority to work status.Current weekly status Under this concept if a person is employed or seeking to work or available for work at least one hour during a reference period of one week, then it will be part ot labor force.Current daily status This concept was recommended by dantewala committee. This concept is used too determine intensity of work. A reference week is divided in 14 half days. If a person is employed for. If a person is employed or seeking to be employed for 1 hr or more upto 4 hrs in half day will be part of labor force. Employment status is recorded during 7 daye of week in terms of half or full intensities.Largely CDS is used as basis of estimation of unemployment and uemployment in country. It is the most inclusive rate of unemployment giving average level of unemployment on a day during the survey year. Attempt to deal with unemployment hitherto have ben two pronged: 1. To alleviate status of the unemployer eg giving it vocational education or providing loan for income generating asset. 2. To abolish unemployment itself by increasing number of jobs.Lord keynes said that in advanced economies unemployment was due to deficiency in effectivemdemand. Thus kenesian remedies for unemployment concentrated on measures to keep level of demand sufficiently high so that economic machine does not slacken the production of goods and services. It was applied after great depression of 1930s and second world war to alleviate messy economic situations.      

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State Human Rights Commission

State Human Rights Commission    Justice A K Ganguly is chairperson of West Bengal Human Rights Commission and is retired judge of SC.He is now facing charges of an act of “unwelcome verbal/non-verbal conduct of sexual nature” alleged by a law intern.The government would take a decision on sending a Presidential reference to Supreme Court seeking opinion on the allegations.Protection of the Human Rights Act, 1993 defines procedure of appointment and removal of members and chairperson of National and State Human Rights Commission.Human rights means, the rights relating life, liberty, equality and dignity of the individual, guaranteed by the constitution or embodied in the international covenants and enforceable by courts in India. STATE HUMAN RIGHTS COMMISSION Constitution of State Human Rights Commission (1) The State Commission shall consist of(a) a Chairperson who has been a Chief Justice of a High Court;(b) one Member who is, or has been, a Judge of a High Court;(c) one Member who is, or has been, a district judge in that State;(d) two Members to be appointed from amongst persons having knowledge of, or practical experience in, matters relating to human rights.(2) There shall be a Secretary who shall be the Chief Executive Officer of the State Commission and shall exercise such powers and discharge such functions of the State Commission as it may delegate to him. (3) The headquarters of the State Commission shall be at such place as the State Government may, by notification, specify. (4) A State Commission may inquire into violation of human rights only in respect of matters relatable to any of the entries enumerated in List II and List lll in the Seventh Schedule to the Constitution:Provided that if any such matter is already being inquired into by the Commission or any other Commission duly constituted under any law for the time being in force, the State Commission shall not inquire into the said matter: Provided further that in relation to the Jammu and Kashmir Human Rights Commission, this sub-section shall have effect as if for the words and figures “List ll and List lll in the Seventh Schedule to the Constitution”, the words and figures “List lll in the Seventh Schedule to the Constitution as applicable to the State of Jammu and Kashmir and in respect of matters in relation to which the Legislature of that State has power to make laws” had been substituted. Appointment of Chairperson and other Members of State Commission (1) The Chairperson and other Members shall be appointed by the Governor by warrant under his hand and seal:Provided that every appointment under this sub-section shall be made after obtaining the recommendation of a Committee consisting of (a) the Chief Minister — Chairperson(b) Speaker of the Legislative Assembly — Member(c) Minister in-charge of the Department of Home, in that State — Member(d) Leader of the Opposition in the Legislative Assembly — MemberProvided further that where there is a Legislative Council in a State, the Chairman of that Council and the Leader of the Opposition in that Council shall also be members of the Committee.Provided also that no sitting Judge of a High Court or a sitting District Judge shall be appointed except after consultation with the Chief Justice of the High Court of the concerned State. (2) No appointment of a Chairperson or a Member of the State Commission shall be invalid merely by reason of any vacancy in the Committee.Removal of a Member of the State Commission (1) Subject to the provisions of sub-section (2), the Chairperson or any other member of the State Commission shall only be removed from his office by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf by the Supreme Court, reported that the Chairperson or such other Member, as the case may be, ought on any such ground to be removed. (2) Notwithstanding anything in sub-section (1), the President may by order remove from office the Chairperson or any other Member if the Chairperson or such other Member, as the case may be –(a) is adjudged an insolvent; OR(b) engages during his term of office in any paid employment outside the duties of his office; OR(c) is unfit to continue in office by reason of infirmity of mind or body; OR(d) is of unsound mind and stands so declared by a competent court; OR(e) is convicted and sentenced to imprisonment for an offence which in the opinion of the President involves moral turpitude. Removal of a Member of the State Commission : (1) Subject to the provisions of sub-section (2), the Chairperson or any other member of the State Commission shall only be removed from his office by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf by the Supreme Court, reported that the Chairperson or such other Member, as the case may be, ought on any such ground to be removed.(2) Notwithstanding anything in sub-section (1), the President may by order remove from office the Chairperson or any other Member if the Chairperson or such other Member, as the case may be –(a) is adjudged an insolvent; OR(b) engages during his term of office in any paid employment outside the duties of his office; OR(c) is unfit to continue in office by reason of infirmity of mind or body; OR(d) is of unsound mind and stands so declared by a competent court; OR(e) is convicted and sentenced to imprisonment for an offence which in the opinion of the President involves moral turpitude.      

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Judicial Standard and Accountability Bill 2010

Also Judges (Inquiry) Bill, 2006 seeks to establish the National Judicial Council to undertake preliminary investigation and inquire into allegations of misbehaviour or incapacity of a Judge of the Supreme Court or of a High Court and to regulate the procedure for such investigation, inquiry and proof, and for imposing minor measures and for the presentation of an address by Parliament to the President of India.Judicial Standard and Accountability Bill 2010 was introduced in Lok Sabha in 2012. This is one of bills relating to address problem of corruptionand accountability in Judiciary. It is important to note that Judiciary is out of purview of Lakpal. • The key issue is whether the balance between independence and accountability is maintained by the proposed mechanism in the Bill. The Oversight Committee has non-judicial members which might impinge on the independence of the judiciary.• The Bill penalises anyone who breaches the confidentiality of complaints. It is questionable whether a penalty is needed for a frivolous complaint that remains confidential.• The Scrutiny Panel has judges from the same High Court. This is different from the in-house procedure of the Supreme Court.• The Oversight Committee has non-judicial members. The procedure of the Committee is not an in-house procedure of the judiciary. It is not clear whether the power of the Oversight Committee to impose minor measures is constitutionally valid.• The Bill does not mention whether a judge has the right to appeal to the Supreme Court against an order of removal issued by the President after Parliament finds him guilty of ‘misbehaviour’.    

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