Essay: September UPSC Current Affairs 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

Cooperative Federalism: Myth or Reality

Federalism is an Intrinsic Part of Our Constitutional Set-up. 

— Naveen Patnaik

India's system of federalism, as outlined in the Constitution, combines both central authority and state autonomy. The idea of cooperative federalism is key to this system, emphasizing teamwork between the central and state governments to ensure good governance and effective public services. The roots of federalism in India go back to the colonial period, specifically the Government of India Act of 1935, which introduced some level of autonomy for provinces. However, it also kept many powers with the central government, setting a precedent for how the centre and states would interact in the future.
After gaining independence, the creators of the Indian Constitution chose a quasi-federal structure, giving more power to the central government. This choice was made to maintain unity and integrity in a diverse nation. Nonetheless, they included the principle of cooperative federalism in the Constitution, promoting a collaborative approach to governance. The Constitution lays out how cooperative federalism works through various provisions. The Seventh Schedule specifies the powers of both the central and state governments across three lists: the Union List for central powers, the State List for state powers, and the Concurrent List where both can legislate. In case of a disagreement, the central law takes precedence.
Article 263 allows for the formation of an Inter-State Council, which helps improve cooperation and coordination between states and the central government. This council plays a vital role in resolving conflicts and encouraging discussions on important national issues.
The National Institute for Transforming India (NITI Aayog) and the Finance Commission are key organizations that help ensure fair distribution of resources between the central and state governments. They play an important role in promoting cooperative federalism by encouraging communication and teamwork on economic and development issues.
However, the practice of cooperative federalism in India has faced challenges. One major issue is the centralization of power, where the central government often oversteps its boundaries and infringes on state powers. A particular concern is the misuse of Article 356, which allows the central government to impose President's Rule in states, leading to tensions and undermining cooperative federalism.
Another challenge is the uneven distribution of resources. The central government controls most revenue sources, leaving states reliant on financial support from the centre, which can create an imbalance of power. 
The introduction of the Goods and Services Tax (GST) in 2017 aimed to create a unified tax system, but it raised concerns among states about losing their financial independence. The GST Council operates on cooperative principles, yet the central government has considerable influence, raising questions about genuine cooperation. In recent times, there have been efforts to enhance cooperative federalism. NITI Aayog has replaced the Planning Commission and promotes collaboration rather than a top-down approach. It encourages states to take charge of their development plans, fostering a "Team India" spirit where both the centre and states work together. The 15th Finance Commission has also tried to balance fiscal resources by suggesting a larger share of tax revenues for states, which helps empower them and reduce their dependence on the centre. 
The Covid-19 pandemic highlighted the necessity for cooperation between the central and state governments. Managing the crisis required close coordination, and while there were some disagreements over vaccine distribution and lockdown measures, it emphasized the need for a united approach in addressing significant challenges. Political dynamics significantly influence cooperative federalism in India. Relations between the centre and states often depend on whether the ruling parties align politically. Cooperation tends to be smoother when the same party governs both levels, but tensions can arise when different parties are in power, especially if they oppose each other ideologically. 
For example, during the Emergency period from 1975 to 1977, the Congress-led central government exerted tight control over states, using Article 356 to dismiss many state governments, which is seen as a breakdown of cooperative federalism. In contrast, during coalition governments in the 1990s and early 2000s, there was more emphasis on dialogue and cooperation, as the central government needed to consider the interests of various regional parties. Currently, the dominance of a single party at the centre brings both challenges and opportunities for cooperative federalism. While the central government seeks reforms requiring state cooperation, like the GST and changes to labor laws, conflicts have also emerged with opposition-ruled states on issues like pandemic management and agricultural laws.
The judiciary has played an important role in shaping cooperative federalism in India. 
The Supreme Court, through key rulings, has stressed the need to balance power between the centre and states. In the S.R. Bommai case in 1994, the Court established strict guidelines for imposing President's Rule, limiting the central government's arbitrary use of this power and marking a significant moment for federalism in India. In the case of State of West Bengal v. Union of India (1962), the Supreme Court emphasized the independence of states, asserting that the Constitution views them as entities with their own powers and responsibilities, not just as administrative divisions. 
This ruling reinforced the concept of cooperative federalism by recognizing the significance of state autonomy. The judiciary has also been vital in settling disputes between the central government and states, as well as among states themselves. For instance, the Inter-State River Water Disputes Tribunal illustrates how the judiciary fosters cooperative federalism by providing a forum for dialogue and conflict resolution. The journey of cooperative federalism in India is an ongoing and evolving process influenced by historical events, constitutional guidelines, political relationships, and judicial interpretations. It reflects the need for collaboration between the central and state governments, balancing national unity with the diverse needs of India's states.
As India continues to navigate its complex federal structure, the effectiveness of cooperative federalism will rely on both the central and state governments' commitment to work together for the common good and adapt to the country's changing demands. By fostering a spirit of partnership and mutual respect, India can achieve inclusive development while maintaining the balance between central authority and state autonomy.

Competitive Cooperative Federalism is the Key to India's Rising Investments.

— Narendra Modi

Cyberspace and Internet : Blessing or Curse to the Human Civilization in the Long Run

Done is Better Than Perfect. Taking Action in Cybersecurity is Crucial, Even If It's not Perfect.
Sheryl Sandberg

The rise of cyberspace and the Internet has been one of the most significant changes in human history. Since the late 20th century, these technologies have changed how we communicate, work, learn, and interact with the world. They have made distances less important, created new economic opportunities, and transformed various industries. However, as we progress in the 21st century, it's important to consider whether the Internet is ultimately good or bad for humanity in the long run. 
One clear advantage of the Internet is the incredible level of connectivity it provides. For the first time, people from different parts of the world can talk to each other instantly. Social media, messaging apps, and video calls have allowed families, friends, and coworkers to stay in touch, no matter how far apart they are. This has not only strengthened personal bonds but also helped in international business and diplomacy.
The Internet has sparked economic growth and innovation, leading to the creation of entirely new industries like e-commerce, digital marketing, and online education. Major companies like Amazon, Google, and Facebook have become some of the biggest and most powerful in the world, boosting the economy and creating millions of jobs. The growth of remote work, made possible by the Internet, has also had significant economic effects. Companies can now hire talent from around the world, which helps reduce costs and improve productivity. For workers, this has meant more flexibility and a better work-life balance, leading to increased job satisfaction and better mental health.
In education, the Internet's impact has been profound. 
Online courses, webinars, and educational platforms have made quality education available to millions, especially in remote or underserved areas where traditional schools might not exist. Additionally, the Internet has made it easier for researchers and academics to share knowledge and collaborate. Scientific papers, research data, and educational resources are now easily accessible online, allowing researchers to work together across different countries and fields. This has sped up scientific discoveries and innovations, leading to breakthroughs in medicine, technology, and environmental science.
The Internet has also greatly encouraged social and cultural exchange. Through social media, blogs, and online communities, people from various cultures can share their experiences and viewpoints. This sharing has increased cultural awareness and understanding, leading to a more connected and tolerant global community. Additionally, the Internet has empowered marginalized and underrepresented groups. Activists and social movements can use online platforms to raise awareness, gather support, and advocate for change, resulting in significant social and political movements around the world, like the Arab Spring and the MeToo movement. However, along with these advantages come serious challenges, especially regarding privacy and security. As more personal information is shared online, risks like data breaches, identity theft, and cyberattacks have increased. These incidents highlight weaknesses in digital security, emphasizing the need for better data protection.
The rise of surveillance technologies from both governments and companies has also raised alarms about privacy and civil liberties. With tools like data tracking and facial recognition, there's a growing concern about a "Big Brother" scenario where every move is monitored. This creates fears of a future where privacy might no longer exist. While the Internet has many benefits, it has also worsened existing inequalities. The digital divide refers to the gap between those who have Internet access and those who do not, often influenced by socioeconomic, geographic, and demographic factors. In developing countries, barriers like poor infrastructure, high costs, and lack of digital skills limit Internet access, leaving many unable to fully participate in the digital economy or access vital educational and healthcare resources. Moreover, the Internet has become a breeding ground for misinformation and fake news. The ease of sharing information online has led to the rapid spread of false content, which can have serious repercussions. Misinformation undermines public trust in institutions, media, and science.
Algorithms used by social media platforms often create echo chambers, exposing users only to content that confirms their beliefs. This can increase polarization and division, making people less willing to engage with differing viewpoints. The impact of the Internet on mental health is another concern. While it offers new ways to connect, it can also contribute to anxiety, depression, and loneliness. Constant connectivity and the pressure to present a perfect online image can cause stress and burnout, especially among younger users.
Social media is linked to negative effects on self-esteem and body image, as users face unrealistic standards of beauty and success. Issues like cyberbullying and online harassment further harm the mental well-being of victims.
Cyberspace and the Internet have certainly transformed human civilization, bringing both significant benefits and serious challenges. As we continue into the digital age, determining whether these technologies are a blessing or a curse will depend on how we handle their opportunities and risks. To ensure the Internet remains a positive force, we need to address privacy and security issues, close the digital divide, promote critical thinking and digital literacy, and consider the ethical implications of new technologies. By doing so, we can leverage the Internet's power to foster progress and enhance life for everyone while reducing potential downsides.
Ultimately, the long-term impact of cyberspace and the Internet on humanity will depend on the choices we make today. It is our responsibility to decide whether these technologies will be a blessing or a curse.

One of The Only Ways To Get Out of a Tight Box is to Invent Your Way Out." Innovate In Your Approach To Cybersecurity
Jeff Bezos

Near Jobless Growth in India: An Anomaly or An Outcome of Economic Reforms

Unemployment is No Longer Just A Statistic; It's A Reality That Affects People From All Walks of Life.
— Barack Obama

India, one of the fastest-growing economies in the world, has faced the challenge of "jobless growth" for several decades. While the economy has seen strong growth rates, job creation has not kept up. This situation raises important questions about the impact of India's economic reforms on the job market and the overall structure of the economy. Whether this jobless growth is an exception or a result of the reforms introduced in the 1990s is a matter of much discussion. Jobless growth means that the economy can grow significantly, as measured by GDP, but without a corresponding increase in jobs. In India, this issue has become more noticeable since the 1990s, after liberalization, privatization, and globalization reforms were put in place. Despite high GDP growth, the unemployment rate has remained elevated, and many workers are still in the informal sector, which typically offers low wages, little job security, and few benefits.
A large portion of India's workforce is in the informal sector, where jobs are often unstable and poorly paid. 
Certain sectors, especially services and capital-intensive industries, have contributed to economic growth without creating many new jobs.
India's economic reforms began in 1991, moving away from protectionist policies. These reforms aimed to open the economy to market forces, boost efficiency, and attract foreign investment. The government reduced its control over industries, deregulated key sectors, and sold state-owned companies to private entities. The goal was to integrate India into the global economy by promoting exports, lowering tariffs, and encouraging foreign direct investment. While these changes spurred economic growth, their effects on job creation were uneven. The service sector benefited the most from globalization, growing quickly, but this growth was mainly in high-skilled areas like information technology and finance. Manufacturing, which could create more jobs, did not grow as expected. Traditional sectors like agriculture, which employ many people, saw little improvement.
There are several reasons for India’s jobless growth, stemming from both structural issues and the nature of its economic reforms. Economic reforms have mainly favored the service sector, which is not as labor-intensive as agriculture or manufacturing. While industries like IT and finance grew quickly, they do not provide many jobs for those without advanced skills. Manufacturing, which could employ many semi-skilled workers, has struggled due to poor infrastructure, complicated labor laws, and competition from countries like China and Vietnam. Agriculture, which employs about half of the workforce, still suffers from low productivity and a lack of investment. Technological advancements and automation, which have increased productivity, have also reduced the need for workers. In manufacturing, the move toward automation and capital-intensive methods has limited job growth, even as production increases. 
Similarly, in the services sector, the IT boom has created fewer high-paying, specialized jobs, leaving many unskilled and semi-skilled workers behind. Labor laws meant to protect workers can make companies hesitant to hire, as it becomes difficult to lay off workers during tough times. As a result, many businesses choose to invest in machines instead of hiring more people or rely on temporary and contract workers, worsening the jobless growth situation. India's labor laws, especially in the formal sector, remain very strict despite economic reforms. These laws, which aim to protect workers, make it hard for companies to lay off employees or cut staff during tough times. As a result, many businesses choose to use machines or hire temporary workers, leading to fewer permanent jobs and contributing to jobless growth.
The education system in India has also struggled to meet the needs of a modern economy. Although there are more graduates now, many lack the skills that fast-growing industries require. This mismatch between available workers and the skills needed has led to high unemployment rates among young people, even as some sectors have a shortage of qualified workers. India has a large and growing youth population that could provide a demographic advantage. However, without enough job opportunities, particularly for young people entering the workforce, this potential benefit can turn into a problem. Many young people end up underemployed, working in informal jobs, or migrating to other countries in search of work.The concept of jobless growth seems unusual, especially in a developing economy where growth is expected to create jobs. Historically, many developing nations have moved from agriculture to industry, creating jobs in the process. In India, this shift has not been fully realized.
The reasons for this unusual situation are tied to the specifics of India's economic reforms and the global context in which they occurred. While the reforms aimed at market efficiency, attracting foreign investment, and technological advancement, they didn't focus enough on labor-intensive growth. The growth in services and high-tech industries has been good for GDP but has not led to enough job creation.Jobless growth may seem surprising, but it can actually be seen as a predictable result of India's economic reforms. The emphasis on liberalization and globalization opened the economy to market forces, but there weren't enough changes in manufacturing and agriculture to create many jobs. Additionally, the focus on capital-intensive industries and high-tech services, combined with rigid labor markets, led to growth in sectors that don’t need a large workforce. This means the benefits of growth have mainly gone to a small part of the population, increasing income inequality and underemployment. To tackle the issue of jobless growth, India needs to rethink its growth approach and focus on inclusive development. Programs like "Make in India" should be strengthened to boost labor-intensive industries. Improving infrastructure, simplifying labor laws, and offering incentives for small and medium enterprises can help create more manufacturing jobs.
Reforming the education system is also urgent so that graduates have the skills industries need. Expanding vocational training and apprenticeships and aligning education with market needs will be essential. Since a large part of the workforce relies on agriculture, improving productivity through technology, irrigation, and rural infrastructure is crucial. Providing alternative job opportunities in rural areas through industrial development can help ease the pressure on agriculture. India also needs to address informal employment by creating a more flexible labor market that encourages businesses to hire workers formally. Making labor regulations simpler and reducing compliance costs can motivate companies to create formal jobs. While automation is often seen as a job threat, it can also lead to new opportunities in fields like renewable energy, healthcare, and digital services. By focusing on these areas, India can create new job prospects.
Overall, India's jobless growth is linked to economic reforms that prioritized capital-intensive sectors and services, overlooking industries with higher job potential. To overcome this, the country must aim for inclusive development by creating a more dynamic labor market, improving skills training, and investing in infrastructure. By promoting growth in manufacturing and agriculture, alongside enhancing education and rural job opportunities, India can better utilize its workforce and support economic progress.

We Need to Give Importance to Skill Development Because This Way We Can End Unemployment.
—Narendra Modi

Digital Economy: A Leveller or A Source of Economic Inequality

India will be a Global Player in The Digital Economy.
— Sunder Pichai

The digital economy, defined by the pervasive use of digital technologies to deliver goods and services, has revolutionised the global economic landscape. It offers transformative potential for innovation, productivity, and inclusivity. On one hand, it provides new opportunities for wealth creation and democratises access to information and markets. On the other hand, concerns have emerged about its role in exacerbating economic inequality. Whether the digital economy acts as a leveller or as a source of economic inequality depends on several factors, including access to technology, skills, policy interventions, and market dynamics. The digital economy, in many ways, has the potential to act as a powerful equaliser. It reduces the significance of geographic location and physical infrastructure, allowing businesses and individuals to engage in the global marketplace from virtually anywhere. This democratisation of access to markets and information enables small businesses and entrepreneurs in developing regions to compete with larger, more established companies, thereby levelling the playing field. For example, e-commerce platforms such as Amazon, Alibaba, and Etsy have allowed small businesses to access global customers, bypassing traditional market barriers.
India’s digital identity program, Aadhaar, and the Unified Payments Interface (UPI) have revolutionised access to financial services. Aadhaar has enabled millions of Indians to open bank accounts and access government services, while UPI has made digital payments seamless and accessible, even in rural areas. Indian e-commerce giants like Flipkart and Snapdeal have empowered small businesses to reach a national audience. These platforms provide sellers with the tools and infrastructure needed to compete with larger companies. Digital Education Platforms like digital websites and learning apps have transformed the education sector and made education affordable and accessible for the students who live in remote areas. Digital education industry has made quality education accessible to students across the country, regardless of their location.
Several companies are leveraging digital technologies to connect farmers directly with markets, reducing intermediaries and ensuring better prices for their produce. Open Network for Digital Commerce (ONDC) is the government initiative aimed to democratise digital commerce by providing an open network for all stakeholders, including small retailers, to participate in the digital economy. Digital platforms also foster inclusivity in the labour market. Several freelancing platforms have made it easier for individuals with digital skills to find work, regardless of their location. This phenomenon has particularly benefited people in developing countries, where high unemployment rates and limited local opportunities exist. By enabling people to participate in the global economy from their own homes, the digital economy creates new opportunities for economic mobility. Despite its potential as a leveller, the digital economy can also exacerbate economic inequality, especially when access to digital resources is unevenly distributed. The "digital divide" , the gap between those who have access to the internet and digital technologies and those who do not, is a significant driver of inequality in the digital economy. 
In many parts of the world, particularly in rural and low-income areas, access to high-speed internet remains limited. This lack of access prevents individuals and businesses from taking full advantage of digital opportunities, thus reinforcing existing economic disparities. Furthermore, the digital economy has given rise to a winner-takes-all dynamic in certain industries. Tech giants like Google, Amazon, Facebook, and Apple dominate their respective markets, amassing vast amounts of wealth and power. This concentration of wealth among a few major players contributes to the widening gap between the rich and the poor. Smaller companies and startups find it challenging to compete with these digital giants, leading to reduced competition and fewer opportunities for smaller players to thrive. Another factor exacerbating inequality is the polarisation of the labour market. While the digital economy creates high-paying jobs for highly skilled workers in technology and data science, it often leaves low-skilled workers behind. 
Automation and artificial intelligence (AI) are replacing many low- and medium-skilled jobs, particularly in manufacturing, retail, and transportation. Workers without the skills to transition into the digital economy face unemployment or underemployment, exacerbating economic inequality. Moreover, the gig economy, a prominent feature of the digital economy, presents mixed outcomes for workers. While gig platforms like Uber, and DoorDash etc. offer flexible work opportunities, they often come with low wages, job insecurity, and a lack of benefits. Workers in these sectors, particularly in developing economies, are vulnerable to exploitation and economic instability, further entrenching inequality.  To ensure that the digital economy acts as a leveller rather than a source of inequality, governments and institutions must implement targeted policy interventions. Bridging the digital divide is essential. Investments in digital infrastructure, particularly in underserved regions, are crucial to ensuring that everyone can participate in the digital economy. This includes expanding access to affordable high-speed internet, providing digital literacy training, and ensuring that marginalised communities have the necessary tools to benefit from digital opportunities.
Moreover, policies aimed at regulating the dominance of tech giants are necessary to foster a competitive digital economy. Regulations that promote fair competition can help create a more level playing field for smaller businesses and startups. Additionally, labour laws that protect gig economy workers and ensure fair wages, job security, and access to benefits are crucial to preventing exploitation and reducing economic inequality. Educational reforms are also needed to equip workers with the skills required to succeed in the digital economy. Governments should prioritise STEM education and vocational training, particularly in areas related to technology and data science, to prepare the workforce for the jobs of the future. Lifelong learning programs and reskilling initiatives are also essential for helping workers adapt to the rapidly changing economic landscape.
The digital economy holds immense potential to act as a leveller by democratising access to information, markets, and opportunities. However, without proactive measures to address the digital divide, market concentration, and labour market polarisation, it risks exacerbating economic inequality. The challenge for policymakers, businesses, and societies is to ensure that the benefits of the digital economy are broadly shared, and that no one is left behind in this digital transformation. Through targeted interventions and inclusive policies, the digital economy can become a force for equality, rather than a source of division.

Digital Transformation is a Fundamental Reality for Businesses Today.
— Warren Buffett