Context:

• Are all efforts worth becoming a good human being, or a good civil servant? Particularly when war, violence, bombs, and missiles are guiding the world, where does goodness stand? How convinced are you about the values of goodness?

What is the concept of being good?

Ethics is a system of moral principles and a branch of philosophy that defines what is good for individuals and society.

• Lack of Universal Definition: There is no single, universally accepted definition of what it means to be good, as different cultures and individuals have different values and beliefs. However, there is a common thread running through the concept of goodness.
• Goodness according to some famous individuals:
  • As Vivekananda said, “Do good, be good.” The good of an individual is contained in the goodness of all.
  • As Steve Jobs had emphasized on connecting the dots. The welfare of the individual is inextricably connected with the welfare of all, i.e. the common good. Hence, it is right that the good of an individual is intimately related to the good of others. 
• How does being good lead to ethical action?
• •  Gradually, the right act of an individual will only lead to sustainable happiness. However, it is mutually fulfilling and results in a win-win situation with the other person. And this is how the good of an individual will conform and not conflict with the good of others. It is this principle which leads to ethical actions. .

Value Of Goodness

• Kindness and compassion: These Values involve being empathetic and caring towards others, putting their needs before our own, and being willing to help those who are less fortunate.
• Honesty and integrity: These Values involve being truthful and trustworthy, acting with integrity, and being willing to stand up for what is right, even when it is difficult.
• Justice and fairness: These values are important for creating a society where everyone has equal opportunity to succeed. These qualities involve treating everyone with respect, regardless of their background or circumstances, and upholding the law fairly.
• Selflessness and benevolence: These are Values that involve putting the needs of others before our own. These qualities are often seen as the highest form of goodness, as they require us to sacrifice our own interests for the sake of others.
• Resilience and forgiveness are also important qualities for a good person. These qualities involve being able to cope with adversity, forgiving those who have wronged us, and learning from our mistakes.

Self-interest as a narrow view of Goodness:

• However, In the post-pandemic world, it is usually observed that one’s self-interest tends to take priority and sometimes seems to conflict with the good of others. 
• Thus, a person or a bureaucrat who has a narrow approach to being good succumbs to one’s narrow selfish interests (Corruption, Abuse of Power, etc,) harming the interest of others and in the longer run, even harming one’s interest as well.
• Effect of narrow interpretation: Pursuing one’s selfish interests and ignoring the good of others leads to exploitation, aggression, unhealthy competition in society, and finally leading to all sorts of corrupt practices, crime, and violence. 
• As Mahatma Gandhi said “An eye for an eye will make the whole world blind.’’ We all are witnessing the global crisis. And such a situation has never been conducive to anybody’s happiness in the long run.

We can only grow if others are also growing. Here are some examples of how people have demonstrated goodness in the world:

• Nelson Mandela spent 27 years in prison for fighting against apartheid in South Africa. After his release, he became the first black president of South Africa and worked to heal the wounds of the country.
• Mother Teresa dedicated her life to helping the poor and sick in Calcutta, India. She founded the Missionaries of Charity, a religious order that provided care for the dying, the homeless, and the orphaned.

Conclusion:

Being good is not always easy. If we strive to live by the principles of kindness, compassion, honesty, integrity, justice, fairness, selflessness, benevolence, resilience, and forgiveness, we can make a positive difference in the world and become the best versions of ourselves.

Source: Indian Express

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About: The Klyuchevskoy volcano, one of the highest active stratovolcanoes volcanoes in the world erupts in Russia’s northern Kamchatka Peninsula, Russia.

The 4,650-meter (15,255-foot) volcano has been active in recent years and released lava in June 2023.

About Stratovolcanoes: They have relatively steep sides and are more cone-shaped than shield volcanoes. They are formed from viscous, sticky lava that does not flow easily.

The characteristics of a stratovolcano are as follows: 

• The eruptions are very violent and explosive, hurling volcanic bombs due to gas building up in the viscous magma.
• The lava builds up around the vent, forming a volcano with steep sides as high as 7,000 feet, and the shape is a symmetrical cone.
• It consists of alternating layers of lava and ash.

Kamchatka Peninsula:

• The Kamchatka Peninsula lies between the Bering Sea and the Pacific Ocean, and the Sea of Okhotsk.
• It is part of the Kamchatka Krai. Kamchatka, also known as a land of fire and ice, sits on the Pacific Ring of Fire and is home to over 150 volcanoes,

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Context:

• The Centre for Advanced Financial Research and Learning (CAFRAL), set up by the RBI, has raised concern over the rise in bank financing for non-banking finance companies.

Key Highlights of India Finance Report

• Following the market correction prompted by a brief pause due to the COVID-19 pandemic, bank financing for NBFCs has risen again.
• Banks’ exposure to NBFCs rose by 25.8 percent to Rs 13.83 lakh crore as of August 2023 as against Rs 10.99 lakh crore a year ago, the latest RBI data showed.
• There is also a significant fall in reserves and surplus indicating that buffers grow thinner.

• CAFRAL also warned against the many fake/ illegal lending apps in the marketplace, stating that these apps pose legal and collect information they could use maliciously.

FinTech lending is projected to exceed traditional bank lending by 2030:

• FinTech has widened the range of products available to customers and expanded its distribution channels.
  • For example: Across 80 application stores, nearly 1100 lending apps were available for Indian Android users.
• Focus of Fintech: Non-bank lenders, given their access to novel credit delivery methods, provide credit to underserved borrower segments that are left behind in the credit access network by traditional banking.
• For Example A large increase in the size of the retail lending loan books of NBFCs and FinTech lenders (2.75 times and 124.5 times, respectively, from 2014 to 2019), much larger than the loan growth for traditional banks.”
• Risk of digital lending: It is important to assess the potential stability risks digital lending would pose to the larger economy as it grows.
  • The poor and the marginalized are an important market segment that digital lending targets; any losses in digital lending have important implications for credit availability and financial inclusion for this group. 
• Predatory lending through deceptive lending practices or onerous loan terms can have detrimental consequences, especially for disadvantaged households.

Source: Indian Express

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Context:

• On October 30, the UN International Organization of Migration (IOM) reported that the number of people internally displaced in the Democratic Republic of Congo (DRC) has risen to 6.9 million.

Record High Displacement in the Democratic Republic of Congo 

• In the eastern province of North Kivu, nearly a million people have been displaced due to the ongoing conflict with the rebel group, Mouvement du 23 Mars (M23).
• According to the World Food Programme (WFP), the crisis has left more than 1.1 million people in need of food support across North Kivu, Ituri, and South Kivu.

What is the conflict in the Democratic Republic of Congo?

• Origin of the Democratic Republic of Congo Conflict: The conflict in the DRC dates back to the 1990s when it went through two civil wars in 1996 and 1998. 
• Rwanda Genocide: The conflict erupted in the wake of the Rwandan genocide in 1994 where ethnic Hutu extremists killed nearly one million minority ethnic Tutsis and non-extremist Hutus.
• Since then, the eastern DRC, bordering Rwanda, has been facing insurgency perpetrated by several rebel militant groups.
• Violence by several militant groups over territory and natural resources, extrajudicial killings by security forces, and rising tensions with neighbouring countries have killed thousands.
• Tensions between the Democratic Republic of Congo and neighbouring Rwanda continue to increase as both countries accuse each other of supporting ethnic Tutsi and Hutu-led rebel groups respectively.

Reasons for displacement: The multiple rebel groups and several actors fighting in the region have carried out widespread killing, sexual violence, and massive human rights atrocities.

• Ethnic intolerance: Tensions intensified as Rwandan Tutsis organized militias against the Hutus who fled to the DRC. Subsequently, several ethnic and inter-ethnic groups who felt threatened started organizing their militias against each other.
• The political uncertainty  President Felix Tsikedi came to power in 2019 through democratic elections. The country is to hold elections on December 20. However, the electoral commission has said that continuing insecurity in parts of the country would pose a challenge to a “free, democratic and transparent” vote. 
• Lack of Inclusive Governance: The peripheries of the Democratic Republic of Congo are ruled by numerous ethnic chiefdoms that the government recognizes. The grievances of these peripheries are not met inclusively as struggles for representation, power, territory, and resources are being ignored.
• Lack of Funding: According to organisations such as WFP and the Norwegian Refugee Council, funding is a major challenge in assisting Congolese people facing hunger, starvation, and humanitarian crises.
• Regional Tensions: The armed groups have been supported by the governments of Rwanda, Uganda, and Burundi at various points, acting as proxies for each country’s interests in the region. All of these have led to the fourth factor which is a humanitarian crisis.
  • Then there is Rwanda, which the DRC accuses of supporting the Tutsi-led M23 group. In contrast, Rwanda claims the DRC supports the Hutu militias who carried out the Rwandan genocide in 1994 and fled to eastern DRC. Both countries deny the other’s allegations.
• Feeble International Response: International actors have failed to make a considerable effort to address the crisis. However, since August, widespread protests have been ongoing demanding the withdrawal of the EAC and UN peacekeeping forces. Protesters accuse the regional and international forces of failing to address the insurgency.

Source: The Hindu

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About the Campaign: The Ministry of Housing and Urban Affairs (MoHUA) is all set to unveil a progressive initiative “Women for Water, Water for Women Campaign” under its flagship scheme – Atal Mission for Rejuvenation and Urban Transformation (AMRUT), in partnership with National Urban Livelihood Mission (NULM).

• This campaign celebrates “Jal Diwali” and commences on 7th November, 2023. It will continue till 9th November, 2023.
• Phase I – shall witness participation from all States/ UTs (barring the 5 States under the Model Code of Conduct), with an expected participation of more than 15,000 SHG women, nationwide. 

Aims: It will provide a platform for the inclusion of women in water governance. 

• Visits to Water Treatment Plants (WTPs): first-hand knowledge about water treatment processes through visits to Water Treatment Plants (WTPs) in their respective cities. 

The focus areas of the campaign include:

• Familiarizing the women with the functioning of Water Treatment Plants & water testing facilities.
• Promote inclusivity & involvement through souvenirs & articles created by Women SHGs
• Familiarizing & educating the women about the AMRUT scheme & its impact on water infrastructure

Significance of the campaign: Women play a significant role in household water management. 

• Knowledge Empowerment: By empowering women with knowledge about water treatment processes and infrastructure, women will gain insight into water quality testing protocols, which ensure that citizens get water of the required quality. 
• Accessibility: MoHUA aims to enhance their ability to ensure access to safe and clean drinking water for their households. 
• Gender Equality: It helps address issues of gender equality by promoting inclusivity and diversity in sectors traditionally dominated by men.
• Sense of ownership: The campaign is to instill a sense of ownership and belonging among women towards water infrastructure.

Water treatment Infrastructure:

• India has more than 3,000 Water treatment plants, with a designed water treatment capacity of more than 65,000 MLD and an operational capacity of more than 55,000 MLD. 
• Women Self-Help Groups (SHGs) will visit more than 550 water treatment plants, with a combined operational capacity of more than 20,000 MLD (more than 35% of the country’s total).

Conclusion: 

The anticipated Outcomes of the Jal Diwali campaign include increased awareness and knowledge on water treatment, a sense of ownership and responsibility, promotion of inclusivity, empowerment of SHGs, positive community impact, and a model for future initiatives.

Source: PIB

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Context:

• NATO has formally suspended the Treaty of Conventional Armed Forces in Europe.

About Treaty of Conventional Armed Forces

• The treaty, signed in 1990 and aimed to prevent massing of forces near mutual borders.
• Most of NATO’s 31 allies had signed this treaty, with the goal of fostering stability.
• The treaty was one of several major Cold War-era treaties involving Russia and the United States that have ceased to be in force in recent years. 
• Russia suspended its participation in 2007, and in 2015 announced its intention to completely withdraw from the agreement.

Response to Russia’s Withdrawal:

• NATO’s decision comes in response to Russia’s withdrawal from the treaty.
• NATO states that an unsustainable situation arises when Russia does not comply with the treaty while its members do.

News Source: Indian Express

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Context:

• Recently, the Subansiri Lower Hydroelectric Project suffered a setback after a large part of the hill on the left side of the dam collapsed into its reservoir.

More on News

• The deposit blocked the only working diversion tunnel, halting water flow downstream into the Subansiri River, a major Brahmaputra tributary.

About Subansiri Lower Hydroelectric Project

• It is an under-construction gravity dam located on the Arunachal Pradesh and Assam border.
  • Gravity dams are massive structure dams that are constructed of concrete or stone masonry.
• It has a total capacity of 2000 MW, consisting of 8 units, each with a capacity of 250 MW.
• This project is the largest hydroelectric venture ever undertaken in India.
• It is a run-of-river scheme.
  • Run-of-river hydro projects use the natural downward flow of rivers and microturbine generators to capture the kinetic energy carried by water. Typically water is taken from the river at a high point and diverted to a channel, pipeline, or pressurised pipeline (or penstock). 
• Implementing Agency: National Hydroelectric Power Corporation (NHPC) Limited.
• Construction History:
  • Construction commenced in 2005.
  • Multiple deadline extensions for commissioning of the project’s first two 250-MW units followed: March 2021, August 2022, March 2023, June 2023, and now March 2024.
• Beneficiary states:
  • Arunachal Pradesh has been allocated 274 MW of power from Subansiri Lower, out of which 240 MW is free power. 
  • Assam has been allocated with 533 MW power which includes 25 MW free power. 
  • All seven North-Eastern States and five northern States/UTs (Haryana, Punjab, Rajasthan, Uttar Pradesh, and Chandigarh) and five western States (Gujarat, Madhya Pradesh, Chhattisgarh, Maharashtra, and Goa) will be benefited from the power generated from this project.

Subansiri River

• Subansiri River, also known as the “Gold River,” is the largest tributary of the Upper Brahmaputra River.
• Originating from the Tibetan Himalayas, it flows into India through Arunachal Pradesh’s Miri Hills.

News Source: The Indian Express

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Context:

• India accounted for the highest number of tuberculosis (TB) cases in the world in 2022, as revealed by the new World Health Organization (WHO) Global TB Report 2023.

Global TB Report 2023: Key Findings

• India’s Alarming TB Burden: TB Cases in India
  • India accounts for 27% of the world’s TB burden.
  • Recorded 2.8 million TB cases with a 12% case fatality ratio, estimating 342,000 TB-related deaths.
  • MDR-TB Crisis: India recorded 1.1 lakh cases of multidrug-resistant TB (MDR-TB) in 2022.
    • Multidrug-resistant TB (MDR TB) is caused by an organism that is resistant to at least isoniazid and rifampin, the two most potent TB drugs. 
    • These drugs are used to treat all persons with TB disease.
• High-Burden TB Countries
  • A total of 30 high-burden TB countries contributed to 87% of the global TB cases in 2022.
  • Top eight high-burden countries included Indonesia (10%), China (7.1%), the Philippines (7.0%), Pakistan (5.7%), Nigeria (4.5%), Bangladesh (3.6%), and the Democratic Republic of Congo (3.0%).
• Global Recovery in TB Services
  • A record-high 7.5 million people were diagnosed with TB in 2022, marking the highest number since WHO began global TB monitoring in 1995.
  • TB incidence rate increased by 3.9% between 2020 and 2022, reversing previous declines.

News Source: The Indian Express

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Context:

• A controversy has erupted in Telangana over alleged engineering lapses in the Rs 1.5 lakh crore Kaleshwaram project. 

About Kaleshwaram Lift Irrigation Project 

• The Kaleshwaram Lift Irrigation Project on the Godavari River is considered to be one of the world’s largest multi-purpose projects.
• Aims to provide water for irrigation and drinking across 45 lakh acres in 20 out of 31 districts in Telangana, including Hyderabad and Secunderabad.
• The first phase was inaugurated in June 2019.
• Initial cost estimated at Rs 80,000 crores, expected to rise to Rs 1 lakh crore upon completion.
• Project Details:
  • Key Barrages: Medigadda, Annaram and Sundilla

Uniqueness of Kaleshwaram Lift Irrigation Project

• This project is unique because:
  • Telangana will harness water at the confluence of two rivers with Godavari by constructing a barrage at Medigadda in Jayashankar Bhupalpally district and;
  • reverse pump the water into the main Godavari River and divert it through lifts and pumps into a huge and complex system of reservoirs, water tunnels, pipelines and canals.

News Source: The Indian Express

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Context:

• Recently, the Food and Agriculture Organization (FAO) of the United Nations has released the State of Food and Agriculture Report 2023.

What are the key findings of the State of Food and Agriculture Report 2023?

• Hidden Costs of Agrifood Systems: India’s hidden agrifood costs reached approximately $1.1 trillion, making it the world’s third-largest contributor after China and the United States.
  • Hidden costs comprise environmental expenses (greenhouse gas emissions, nitrogen emissions), land-use changes, water usage, health-related losses due to unhealthy dietary patterns, and social costs linked to poverty and undernourishment.
  • India accounted for 8.8% of the global quantified hidden costs totaling $12.7 trillion.

• Major Contributors in India:
  • The largest share (60%) of hidden costs in India stems from the burden of disease, mainly productivity losses due to dietary patterns.
  • Social costs associated with agri-food worker poverty contributed 14% of the hidden costs.
  • Environmental costs related to nitrogen emissions represented 13% of India’s hidden costs.
• Global Overview:
  • China contributed 20% of the global hidden costs, and the United States contributed 12.3%.
  • The hidden costs for China and the US were $2.5 trillion and $1.5 trillion, respectively.
• Income-Level Variation:
  • The majority of hidden costs originated in upper-middle-income countries (39%) and high-income countries (36%).
  • Environmental costs constituted about 20% of the global hidden costs, primarily from nitrogen emissions, greenhouse gas emissions, land-use changes, and water use.

News Source: DTE

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Context: 

• The Aditya L1 solar probe mission by ISRO has captured its first high-energy solar flare in X-ray.

Aditya L1 Captures Solar Flare

• During its first observation period on October 29, 2023, the High Energy L1 Orbiting X-ray Spectrometer (HEL1OS) on board Aditya-L1 recorded the impulsive phase of solar flares. 
• Consistency with NOAA’s Data:
• • The data obtained from Aditya L1’s HEL1OS instrument is consistent with X-ray light curves provided by NOAA’s GOES satellite.
  • GOES, the “Geostationary Operational Environmental Satellite,” is operated by the United States National Oceanic and Atmospheric Administration (NOAA) and supports various applications, including weather forecasting and storm tracking.
• HEL1OS Instrument:
  • HEL1OS is the hard X-ray spectrometer on the Aditya L1 mission.
  • It operates in the wide X-ray energy band between 10 and 150 keV, enabling the study of solar flare activities on the Sun.

What are solar flares?

• A solar flare is a tremendous explosion on the Sun that happens when energy stored in ‘twisted’ magnetic fields (usually above sunspots) is suddenly released.
• Impact: 
• • Solar flares produce high-energy particles and radiation dangerous to living organisms. 
  • The most dangerous emissions from flares are energetic charged particles (primarily high-energy protons) and electromagnetic radiation (primarily x-rays).

To read more about the Aditya-L1 Mission, refer to the embedded link Aditya-L1 Mission.

News Source: Indian Express

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Context:

• Recent analysis of National Family Health Survey data in JAMA Network Journal reveals stark disparities in hypertension care across Indian states and districts. 

Hypertension in India

• According to a recent WHO report, 188.3 million people in India suffer from hypertension but only 37% get diagnosed, only 30% start treatment, and only 15% manage to keep their blood pressure under control.
• Nearly 4.6 million deaths can be prevented in India by 2040 if half of the hypertensive individuals can control their blood pressure. This underscores the importance of improving blood pressure control rates.

Hypertension in India: State of Hypertension Care in India

• Diagnosis and Treatment Gaps: A significant proportion of people with hypertension remain undiagnosed, and many diagnosed individuals do not initiate treatment. 
  • For Example: Only one in three receives a diagnosis, and one in five gets treated.
• Poor Blood Pressure Control: Even among those who initiate treatment, just one in twelve achieves blood pressure control.
• Inter-State Variation: Southern states have a higher prevalence of hypertension (29.9%) compared to the national average (26.8%). Diagnosis rates are similar, but the proportion of treatment with controlled hypertension is higher in the southern states.
• Intra-District Variation: Within districts, significant disparities exist. For instance, in Meghalaya, the proportion of diagnosed individuals varies across districts with similar prevalence. Similarly, in Karnataka, districts with similar prevalence show differences in treatment and control rates.

Age, gender, and education impact hypertension care in India

• Gender: Women are more likely to be diagnosed, treated, and have controlled blood pressure, despite men having a higher prevalence of hypertension.
• Age: Those over 65 years have higher rates of prevalence, diagnosis, treatment, and control compared to younger individuals.
• Socio-economic Status: The wealthiest fifth of the population has the highest levels of hypertension prevalence, diagnosis, treatment, and control.
• Education: Those with higher education levels are more likely to be diagnosed, treated, and achieve blood pressure control, regardless of hypertension prevalence.

What initiatives have been implemented to control hypertension in India?

• Indian Hypertension Control Initiative (IHCI): It is a 5-year initiative involving the Ministry of Health & Family Welfare, the Indian Council of Medical Research, State Governments, and WHO-India.
  • IHCI aims to accelerate progress towards the Government of India’s NCD target by supplementing and intensifying evidence-based strategies to strengthen the building blocks of hypertension management and control.
  • The Government of India has adopted the “25 by 25” goal, which aims to reduce premature mortality due to non-communicable diseases (NCDs) by 25% by 2025. One of the nine voluntary targets includes reducing the prevalence of high BP by 25% by 2025.
  • India has won a UN award for its “Indian Hypertension Control Initiative (IHCI)”, a large-scale hypertension intervention under the National Health Mission.
• Government Initiative: The government has launched an ambitious initiative to treat 75 million people with hypertension or diabetes by 2025. 
  • This program aims to increase access to treatment and improve hypertension management.

News Source: Indian Express

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Context:

• This article is based on the news “It is time for India’s 97% to speak up against the Old Pension Scheme” Which was published in the Live Mint. 
• The ongoing state elections have intensified the political conflict surrounding the choice between maintaining the National Pension System (NPS) and returning to the Old Pension Scheme (OPS).

States Reverting From New Pension Scheme to Old Pension Scheme

• Recently, states including Rajasthan, Jharkhand, Chhattisgarh, Himachal Pradesh, and Punjab have opted to move back to the old pension system.
• The government is planning to amend the NPS so that employees get an assured 40%-45% of their last drawn salary as a pension.
• The National Democratic Alliance (NDA) government discontinued the OPS in 2004 and introduced the National Pension Scheme (NPS) for government employees. 

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Comparing and Contrasting the Old Pension Scheme and the New Pension Scheme 

• Advantages of OPS over NPS/ Disadvantages of NPS: 
  • It ensures a consistent source of income throughout an individual’s retirement years.
  • This is because their pensions are calculated based on their final salary along with the DA.
  • Thus, their pensions increase whenever the DA is revised semi-annually. The OPS income that the recipient gets is not subject to tax.
  • The pension of employees increases when the DA is revised semi-annually.
  • No deductions are made from employees’ salaries for pension contributions.
  • The government bears the costs associated with pension expenditure.
• Advantages of NPS over OPS/ Disadvantages of OPS:
  • It enables subscribers to choose their preferred fund manager and investment choice, including a 100% government bond option. 
  • The lowering of government retirement obligations.
  • Greater returns than traditional instruments like the Public Provident Fund (PPF).

What are the challenges associated with the Old Pension Scheme?

• Pension liabilities: There continue to be concerns that the OPS will soon become financially unsustainable because there is no means to fund the growing pension liability with the existing tax buoyancy. 
  • As of 2021-22, state pension liabilities represent 1.2% of GDP.
  • In the 10 States, pension spending alone amounts to 12.4% of total revenue expenditures (on average from 2017-18 to 2021-22) and it is predicted that the pension outlay will remain between 0.7% and 3% of GSDP through 2030-31.
  • The NPS replaced the OPS which encouraged early retirement and underutilization of personnel resources. 
• Demographic changes in the Indian Population: Governments are expected to face increasing pension obligations in the future, driven by factors like rising life expectancy, periodic DA increases, and salary-linked pensions.
  • The increase in the elderly population and their life span means an increase in liabilities. 
  • The increase is two-fold, as the pensioners’ benefits also increase every year, like the salaries of existing employees, because they are indexed for dearness relief. 
• Fiscal implications: The government is already heavily burdened with non-discretionary expenditures towards interest payments, salaries, and administrative expenses. 
  • Indexed pensions for government employees can significantly add to this bill, crowding out productive spending and welfare schemes for the wider population.
  • According to a recent study by the RBI, the burden of switching back would be roughly 4.5 times that of the NPS, “with the additional burden reaching 0.9 per cent of GDP annually by 2060”.
• Impact on social sector expenditure: With India’s median age rising and an older population structure in many states, public education, and healthcare are vital to harnessing the demographic dividend.
  • This reduces the fiscal resources required to undertake developmental expenditure.
  • OPS-based recruitment poses expenditure challenges, leading to reduced social sector spending and worsening poverty among the marginalized.
• Deepening Intergenerational Equities: It negatively impacts fairness between generations as it places the burden of funding pensions for retirees on future workers through taxes.
  • Currently, the bottom 50% of the population bears the burden of indirect taxation six times more than their income. 
  • The OPS can be seen as a redistribution mechanism that benefits those who are already in a better financial position.
  • Government employees receive a minimum pension of ₹9,000 based on the Sixth pay norms. 
  • On the other hand, the social security pension for the poor does not exceed ₹500 in 14 States and is only ₹2,000 in a few other States.
  • This means that a government employee’s salary is higher than the income of over 90% of the population. 
  • Intergenerational equity refers to fairness or justice in relationships between children, youth, adults, and seniors, particularly in terms of treatment and interactions.

What are the concerns associated with the New Pension Scheme?

• Pension Unpredictability: The pension payout depends on the market returns on the corpus, which is mostly invested in federal debt.
  • It also leaves the employees with less disposable income as they too have to contribute under this scheme.
  • Given the growth in salary and other advantages accorded by the private sector, in the future, the unpredictability of the NPS may dissuade many talented individuals from entering the government sector.
• Fund management: The public is of the view that their fund would not be secure in the hands of fund managers, and their pensions may be reduced. 
• Lack of flexibility of contributions: In contrast to private sector employees who have the flexibility to adjust their NPS contributions, government employees are obligated to contribute 10 percent of their monthly pay.
• Investment in annuity plans: The NPS requires a mandatory 40% allocation of maturity proceeds to purchase an approved annuity plan, which entails locking in hefty premiums for life and yielding meager returns of 5-5.5%, subject to taxation.

Way forward 

• Participatory pension system: By maintaining the employees’ contribution component, the scheme can incorporate increased government contributions.
  • It should include a commitment to step in when returns fall short of ensuring the mandated minimum pension.
  • A similar proposal was put forth by Andhra Pradesh which upholds the contributory nature of the NPS while guaranteeing a minimum of 33% of the basic pay.
  • This could be adapted to the needs of other States.
• Guaranteed monthly return: To shield employees from the uncertainties of the market, the government should modify the NPS to offer a guaranteed monthly return. 
  • Current returns show employees get around 38% of their last salary as a pension.
• Optional government contributions:  The employee contributions should be made optional even as the government continues its 14 per cent contribution to the scheme. 
• Guaranteed pension:  This should be similar to the OPS which is 50% of your last pay drawn, which is inflation indexed, but with contributions from the employees. 
• Fixed return scheme for NPS subscribers: The government can consider offering a fixed return scheme for NPS subscribers to park their money at maturity. 
  • The scheme can offer an inflation-plus fixed return. This will address the concerns related to the unpredictability of pension amounts.
• Administrative reforms: They are needed to address disparities in pay among different employee ranks.
  • Government employees with access to decision-making processes should advocate for rationalizing the pension plans and excessive spending of political executives.
  • They should advocate for a fairer allocation of resources and the broadening of universal access to public services. 
  •  They should promote progressive taxation for the top 10% of wealth holders to address poverty and the widening wealth gap. 

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Conclusion:

The ongoing discussion about whether to stick with the old pension system or adopt the new one in India boils down to ensuring retirees have a steady income versus managing the government’s financial burden, with a need for a balanced solution that addresses both concerns.

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Context:

• This article is based on the news “Lateral entry and exits will help infuse fresh blood in India’s administration” Which was published in the Live Mint. Among the advocacy of institutional reforms in India, one key area of administrative reform is the introduction of lateral-entry appointments in the country’s civil services system of administrators. 

What is the Lateral Entry in administration?

• NITI Aayog, in its three-year Action Agenda, and the Sectoral Group of Secretaries (SGoS) on Governance in its report submitted in February 2017, recommended the induction of lateral entrants.
• Lateral Entry: It refers to the induction of individuals from outside the traditional recruitment process.
  • Candidates from private sector and public sector undertakings for an appointment at senior and mid-level positions in various Union Ministries under the “lateral entry” programme on a contract basis.
  • For instance, Amber Dubey joined as a lateral entrant in 2019 as secretary in the civil aviation ministry.

• Process of Lateral Entry: On the Department of Personnel and Training (DoP&T) request, UPSC invites recruitment applications from Indian nationals willing to join the Government at senior and mid-level positions in different Ministries/Departments on Contract Basis for a period of three years (extendable to five years depending upon performance). 
  • Comprehensive details and job descriptions are mentioned in the notification released by the Government.
• Aim: It allows individuals with specialized skills, expertise, and experience in specific domains to join the bureaucracy at higher levels. 
  • By bringing in professionals from diverse backgrounds, it intends to inject fresh perspectives, innovative ideas, and specialized expertise into the administrative system.
• The idea of lateral entry has been advocated by: 
  • Sixth central pay commission: Recommended lateral entry at higher ranks in the Government to ensure the availability of the best possible talent from within and outside the Government with performance contracts.
  • Second Administrative Reforms Commission (ARC): Recommended an institutionalized, transparent process for lateral entry at both the Central and state levels.
  • Surinder Nath Committee and the Hota Committee also supported the idea in 2003 and 2004

What is the need for lateral entries in the Indian Administrative Services?

• More Flexible Steel Frame: Sardar Patel hailed the bureaucratic structure as the steel frame of India, however inefficiency and corruption have corroded India’s bureaucracy which needs to be made more efficient and accountable to people.
  • Bringing in talent from diverse backgrounds can potentially enhance the efficiency and performance of government departments, introducing best practices and management strategies from other sectors.
• Innovation and Reforms: Those recruited laterally may bring in experiences from the private sector, NGOs, or other organizations, which could aid in reforming and improving the administrative processes and governance. 
  • For example, under Nandan Nilekani’s innovative approach, Aadhaar became the world’s largest biometric ID system.
• Specialised Skill And Expertise: The traditional recruitment process for civil services primarily focuses on generalist knowledge. 
  • Lateral entry allows the government to bring in individuals with specialized skills and expertise, particularly in areas such as technology, management, finance, and other domains where the government might lack expertise.
  • For instance, the appointments of economists like Manmohan Singh, Vijay Kelkar, and Bimal Jalan were lateral in nature. 

• Shortage of Bureaucrat at Center: The lateral entry can fill the talent gap at the upper ranks of the IAS by recruiting experts from the private sector. 
  • The Department of Personnel and Training (DoPT) has mentioned in the 2023-24 Demands for Grants report that only 442 IAS officers are working with the Centre, against the required strength of 1,469 officers.
• Bridge the Gap Between the Public and Private Sectors: The idea of ‘lateral exits’ has made advances, involving the reverse migration of all types of civil servants to the private sector for a limited period. 
  • For example, Railway Minister Ashwini Vaishnaw a civil servant-turned-businessman-turned-politician, took up senior management positions in multinational corporations, including General Electric (GE) and Siemens after he quit the civil service.

What challenges are associated with lateral entries in the Indian Administrative Services?

• Short Tenure: The Central government has fixed the tenure of joint secretaries at three years. This is not a sufficient span of time for newcomers to get well-inculcated with the complex governance systems and be able to contribute meaningfully.
• Maintaining Objectivity and Neutrality: Preserving objectivity and neutrality while bringing in individuals from various backgrounds and industries can be challenging. 
  • There might be concerns about conflicts of interest, loyalty, and impartiality, especially if the lateral recruits have had associations with private companies or interest groups.
• May Hamper the Morale of Permanent Officers: With increased lateral entrants over time, the political leadership may end up creating a ‘divide’ that would hamper the morale of permanent officers. 
• Potential Dilution of Merit-Based Recruitment: The introduction of lateral entries might dilute the merit-based recruitment system that has been the foundation of the civil services. 
  • If not executed transparently, this could lead to perceptions of favoritism or nepotism in the selection process.
• Outsider Syndrome: Traditional bureaucrats might resist the induction of lateral entrants due to concerns about hierarchy, power dynamics, and a potential disruption to the existing administrative structure. 
  • According to a lateral entrant, the bureaucracy is hostile towards the laterals and they are treated as outsiders. 
• Experience Requirement for Senior Positions: In the permanent system, IAS officers get promoted to joint secretary level after 17 years of service with an average age of a joint secretary of around 45 years and remain at that level for ten years, if similar experience requirements are used for lateral entry, it is unlikely that the best will join because, in the private sector, they rise to the top of their profession at that age.

Way Forward

• Prevent Misuse: Reforms are needed to minimize the potential misuse of this system by recruiting politically indoctrinated individuals in the name of recruiting specialists and experts. 
  • For example, give a constitutional body like the UPSC the authority to conduct the recruitment process and have well-defined job requirements. 
• Benefiting from Competition: Increasing competition in any sphere is a good thing, but serious thinking is required on entry requirements, job assignments, number of personnel, and training to make it a force for positive change. 
• Transparent Selection Process: Ensure a transparent and merit-based selection process for lateral entries. This process should emphasize the expertise, experience, and skills required while maintaining a fair and impartial evaluation to avoid perceptions of favoritism or bias. 
  • United Kingdom (UK): In the UK, the Civil Service Fast Stream program allows for direct recruitment into the civil service at various levels based on specialized skills and expertise. 
• Gradual Integration: Implement a phased approach to integrate lateral entrants into the bureaucracy. 
  • For example, pairing them with experienced civil servants as mentors can help navigate the bureaucratic environment and effectively contribute to the system.
• Clear Expectations and Role Definition: Clearly define the roles, responsibilities, and expectations and establish specific performance indicators and objectives to gauge their contributions and align them with organizational goals.

Also Read: Role of Civil Servants in Civil Services

Conclusion:

It would be in the best interest of India if administrative reforms are implemented with more rigor while infusing fresh blood in our administration to allow us to grow faster in our Amrit Kaal phase and achieve our goal of reaching $30 trillion in GDP by 2047 and becoming a developed country.

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