Model Answer

Panchayati Raj Institutions (PRIs) are crucial in managing disasters at the grassroots level due to their proximity to the local population. However, they face several challenges in performing effective disaster management:

1. Lack of Clarity in Roles and Responsibilities: According to the National Disaster Management Act (2005), the roles and responsibilities of PRIs in disaster management are not clearly defined. These are often left to the discretion of state governments, causing confusion and inefficiencies.
2. Inadequate Devolution of Powers: Many states fail to devolve sufficient powers to PRIs, which results in a lack of autonomy and resources for disaster management. Without necessary authority, PRIs struggle to execute disaster relief operations effectively.
3. Insufficient Funding: PRIs often face budgetary constraints as they do not receive enough financial resources. They are also bypassed by state-controlled departments during disaster response, limiting their capacity to mobilize resources.
4. Lack of Training and Preparedness: Elected representatives and PRI functionaries often lack training in disaster management techniques, reducing their ability to handle crises efficiently.

How the Ministry of Panchayati Raj’s Disaster Management Plan Can Help

The Ministry of Panchayati Raj’s Disaster Management Plan aims to address these challenges by strengthening the role of PRIs in disaster management:

1. Institutional Arrangements: The plan calls for establishing village committees and Panchayat-level working groups for planning, implementation, and monitoring disaster management activities.
2. Mainstreaming Community-Based Disaster Management Plans: Each village will have its own Village Disaster Management Plan (VDMP), which will be integrated into the Gram Panchayat Development Plan (GPDP) and further linked to Block and District Development Plans.
3. Hazard Risk and Vulnerability Mapping: The plan advocates for mapping vulnerabilities and risks, helping PRIs to prepare for natural disasters like floods, cyclones, and earthquakes in their respective areas.
4. Social Inclusion: The plan emphasizes the inclusion of vulnerable groups, such as children, the disabled, and marginalized communities, ensuring that disaster management strategies are inclusive.
5. Capacity Building: The plan includes competence-based training for PRI members to equip them with disaster management skills and knowledge.
6. Coordination and Convergence: It proposes coordinated efforts with various government agencies and the National Disaster Management Authority (NDMA) to ensure a more structured and unified approach to disaster response.

By addressing these issues, the Ministry’s Disaster Management Plan empowers PRIs, enabling them to play a more proactive and efficient role in disaster management at the grassroots level.

Model Answer

What is Land Pooling?

Land pooling is a strategic approach to land acquisition where a single agency or government body consolidates smaller land parcels into a larger one. This process includes developing necessary infrastructure and returning a significant portion of the redeveloped land to the original landowners after deducting costs for the infrastructure development. Currently, this strategy is being implemented in regions like Delhi and Andhra Pradesh.

Advantages of Land Pooling

For Landowners:

1. Increased Land Value: Landowners benefit from substantial increases in land value compared to their original holdings, resulting in better financial returns.
2. Improved Infrastructure: They gain access to enhanced infrastructure, including roads, schools, and hospitals, which improves their quality of life.
3. Regularization of Land: The pooling process transforms irregular land parcels into regular plots, making them suitable for further development.
4. Sense of Belonging: By not displacing original owners, the strategy fosters a sense of attachment to their land.

For the Government:

1. No Initial Cost: The government avoids upfront payments for land acquisition, making the process economically viable.
2. Reduced Resistance: Treating landowners as stakeholders reduces resistance to land acquisition efforts.
3. Faster Development: It accelerates the traditional land acquisition process while addressing social concerns.
4. Higher Tax Revenue: Increased property values lead to a larger tax base for the government.
5. Public-Private Collaboration: The approach enhances cooperation between private developers and the government, benefiting all parties involved.

Challenges of Land Pooling

1. Consent Issues: There are ongoing debates regarding whether proper consent has been obtained from landowners, as development pressures may lead to compulsory pooling.
2. Compensation Gaps: Compensation and resettlement provisions often overlook tenant farmers and agricultural laborers, leaving them inadequately supported.
3. Legal Complexities: Inconsistencies in the legal framework complicate the acquisition process, especially in densely populated urban areas.
4. Restarting Agriculture: High costs are associated with re-establishing farming on reconstituted plots, including the need for new equipment.

Given these challenges, addressing the legal and social implications of land pooling is crucial for its success, especially in light of the provisions set forth in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement (RFCTLARR) Act, 2013 (source: Ministry of Rural Development). This act adds complexity through requirements like social impact assessments and mandatory consents, which must be effectively navigated for successful implementation.

Model Answer

Introduction

Planned development became a cornerstone of India’s economic strategy post-independence, addressing numerous challenges such as poverty, unemployment, and underdeveloped industries. Among the various phases of this strategy, the Second Five-Year Plan (1956-1961) stands out as a significant milestone.

Foundation of the Plan

The Second Five-Year Plan was based on the Nehru-Mahalanobis strategy, emphasizing industrialization, particularly in capital goods. This approach shaped India’s planning practices for over three decades, succeeding the First Five-Year Plan that primarily dealt with immediate post-partition challenges.

Key Contributions

1. Industrial Growth: The Plan prioritized public investment in industries, particularly capital goods, leading to rapid industrialization. This shift laid the groundwork for a robust industrial sector, enhancing productive capacity .
2. Infrastructure Development: It contributed significantly to the development of both physical and human infrastructure. Establishing institutions of higher learning in scientific fields played a crucial role in enhancing human capital.
3. Increased Investment: The Plan raised investment rates, fostering both domestic and foreign savings. This surge in investment facilitated economic growth, with savings rates rising substantially during this period (Source: Planning Commission Reports).
4. Agricultural Progress: Initiatives like land reforms and the Community Development Programme bolstered agricultural production, while also promoting small-scale industries, thus expanding employment opportunities.
5. Public Sector Growth: The Plan enhanced the public sector’s role, allowing it to dominate capital goods industries and shape the economic landscape.

Criticism and Challenges

Despite its achievements, the Second Five-Year Plan faced criticism for prioritizing industrialization over agriculture, resulting in unequal wealth distribution and unemployment. Critics argued that mere economic growth would not eradicate poverty .

Conclusion

In summary, the Second Five-Year Plan was a transformative phase in India’s planned development, establishing essential infrastructure and promoting industrial growth. Its legacy continues to influence India’s economic policies today.

Model Answer

Capital account convertibility (CAC) refers to the ability to convert local currency into foreign currency freely for investment transactions. It allows for unrestricted capital inflows and outflows, making it a form of Capital Asset Liberalisation. Currently, India practices full convertibility in the current account but maintains partial convertibility in the capital account. The Tarapore Committee Reports of 1997 and 2006 outlined a gradual approach toward achieving full CAC.

Advantages of Full Capital Account Convertibility

1. Improved Access to International Markets: Full CAC encourages foreign investment, leading to enhanced economic growth and liberalization. This would attract global investors looking for opportunities in India.
2. Financial Efficiency: An open capital account exposes the financial sector to global competition, fostering specialization and innovation. This can potentially reduce the cost of capital for businesses.
3. Increased Investment Choices: Indian residents would have the flexibility to base their investment decisions on global interest rates, allowing them to invest in foreign securities and assets, thereby enhancing their financial well-being.
4. Risk Hedging: Full CAC enables diversification of investment portfolios, allowing investors to protect the real value of their assets against domestic economic fluctuations.

Disadvantages of Full Capital Account Convertibility

1. Outflow of Domestic Savings: The risk of capital flight increases, as seen during the 1997-98 Asian financial crisis, when speculative activities led to significant capital outflows from several countries.
2. Tax Evasion: Full CAC could diminish the government’s ability to effectively tax domestic financial activities, thereby reducing public revenue.
3. Cost-Push Inflation: Market-determined exchange rates may exceed official rates, potentially raising import prices and contributing to inflation.
4. Economic Disruptions: Poor management of CAC could result in currency depreciation, affecting trade and capital flows negatively.

Preconditions for Full Convertibility

The Tarapore Committee set preconditions for full CAC, such as maintaining a fiscal deficit below 3.5% of GDP and an inflation rate between 3-5% over three years. These conditions need to be met for the potential benefits of CAC to be realized.

Conclusion

While full capital account convertibility presents significant advantages in terms of financial access and efficiency, it also poses substantial risks that must be managed carefully. India must address the outlined preconditions to harness the benefits of CAC effectively.