Published on Dec 24, 2024
Daily Editorials Analysis
Editorials/Opinions Analysis For UPSC 24 December 2024
Editorials/Opinions Analysis For UPSC 24 December 2024

Content:

  1. India’s ‘steel frame’ does need a check
  2. The GATT-ification of the World Trade Organization
  3. Selective indecision
  4. Canary in the canopy

India’s ‘Steel Frame’ Does Need A Check


The IAS, inheriting its framework from the colonial Indian Civil Service (ICS), has been the backbone of Indian administration post-independence.

Relevance : GS 2 (Governance )

Practice Question : Examine the major challenges faced by the Indian Administrative Service (IAS) and suggest key reforms to address them. (250 words)

Challenges of the IAS

  • Politicisation: Frequent transfers, promotions based on political loyalty, and suspensions have eroded professionalism and morale.
  • Lack of Specialisation: Rotational postings prevent domain expertise, weakening officers’ ability to handle complex governance challenges effectively.
  • Corruption and Inefficiency:
    • Reflected in moderate rankings in the World Bank’s government effectiveness index.
    • Hinders policy implementation and administrative independence.

Mixed Outcomes:

  • Enabled rapid reforms and infrastructure development.
    • Created bottlenecks in policy execution and sidelined bureaucratic expertise.

Reform Recommendations Over the Years

  • First Administrative Reforms Commission (1966):
    • Highlighted the need for accountability, merit-based promotions, and specialisation.
  • Second Administrative Reforms Commission (2005):
    • Proposed lowering the age of civil service entry, lateral entry, and safeguards against arbitrary transfers.
    • Recommendations largely unimplemented due to political resistance and bureaucratic inertia.

Lateral Entry as a Reform Initiative

  • Objective: Diversify governance by integrating domain experts from private sectors and other services.
  • Implementation:
    • Since 201857 lateral entrants appointed to senior roles.
    • UPSC recently advertised 45 lateral entry positions.
  • Impact: Reduced IAS dominance in senior roles (33% of Joint Secretaries now from the IAS).

International Models and Lessons

  • U.S. Department of Government Efficiency (DOGE):
    • Focus on streamlining operations, reducing inefficiency, and leveraging expert leadership.
    • Provides a template for creating an advisory body in India to identify inefficiencies and track bureaucratic performance.

Challenges to Reform

  • Resistance Within the IAS:
    • Institutionalised senioritybased progression and generalist approaches impede adoption of reforms.
  • Political Interference:
    • Reform bills like the Civil Services StandardsPerformanceand Accountability Bill (2010) remain stalled.
  • Judicial Limitations:
    • Supreme Court’s 2013 directive for civil services boards has seen poor implementation.

Recommendations for Multifaceted Reform

  • Merit-Based Recruitment and Promotions:
    • Align recruitment with domain expertise and tie promotions to performance metrics.
  • Protection from Political Influence:
    • Implement safeguards against arbitrary transfers to ensure bureaucratic independence.
  • Specialisation in Roles:
    • Foster domain expertise through long-term assignments.
  • Data-Driven Performance Monitoring:
    • Build robust data systems to track and evaluate bureaucratic performance.
  • Lateral Entry Expansion:
    • Address concerns of equity while leveraging external expertise.

The GATT-Ification of the World Trade Organization


The WTO’s transition from a rulebased legal order to a GATT-like diplomacy highlights its struggle to balance multilateralism and rising unilateral trade policies.

Relevance : GS 2( International Relations )

Practice Question : Examine the challenges faced by the World Trade Organization (WTO) in maintaining a rule-based global trading system and discuss the implications of its “GATT-ification” on international trade governance. (250 words)

WTO Dispute Settlement System

  • Two-Tier System:
    • Comprises the Panels (first stage) and the Appellate Body (AB).
    • AB’s role is crucial for ensuring binding and enforceable dispute resolution.
  • Crisis of the Appellate Body:
    • Non-operational since 2019 due to the U.S.’s consistent blocking of member appointments.
    • Stalemate persists across successive U.S. administrations (Obama, Trump, Biden).
    • Losing countries exploit the right to appeal to the non-functional AB, stalling dispute resolution.

Underlying Causes of the Crisis

  • U.S. Resistance to WTOs Appellate Body:
    • Stemming from bipartisan consensus, driven by protectionist tendencies.
    • Escalation anticipated under a possible Trump 2.0 administration.
  • China’s Role in the Unraveling:
    • Post-2001 WTO accession, China retained stateled industrial policies, contrary to U.S. expectations of free-market reforms.
    • Perception in the U.S.: WTO framework enabled China to leverage trade rules for its advantage while limiting U.S. responses.

The Promise of the WTO

  • Evolution from GATT to WTO (1995):
    • Shift from diplomacy-based trade multilateralism to a rule-based legal system.
    • Comprehensive coverage: Trade in goods, services, intellectual property.
    • Binding jurisdiction and enforcement mechanisms signified a thickening of legality in global trade.
  • Neoliberal Triumph:
    • Hailed as a constitutional project of international law, ensuring the dominance of law over politics.

The WTO’s Institutional Erosion

  • Regime Change:
    • Scholars argue the WTO is experiencing a “thinning of legality,” reversing the progress of rule-based governance.
    • Countries reclaim autonomy, reducing reliance on WTO mechanisms, akin to GATT-era diplomacy.
  • Examples of U.S. Actions:
    • 2018: Trump imposed a 25% tariff on Chinese imports, disregarding WTO rules.
    • Future: Promises of additional tariffs highlight a shift towards unilateralism.

Key Concepts in the Current Context

  • GATT-ification:
    • Prof. Geraldo Vidigal describes the rollback of WTO’s legal revolution as a return to GATT-style diplomacy.
    • Trade relations increasingly influenced by international politics rather than international law.
  • Impact on Global Trade Governance:
    • Legal multilateralism paused, and deference to state sovereignty amplified.

Challenges and Implications

  • WTO’s Existential Crisis:
    • The AB stalemate highlights broader questions about the WTO’s relevance in global trade.
    • Efforts to restore the AB seen as insufficient to address the systemic issues.
  • Shifting Trade Dynamics:
    • Countries increasingly employ unilateral trade measures and industrial policies outside WTO frameworks.
    • Weak enforcement of WTO rules undermines its credibility.

Future of the WTO

  • Relevance vs. Obsolescence:
    • WTO needs structural reforms to adapt to changing geopolitical and economic realities.
    • Mere technical negotiations are unlikely to restore its earlier influence.
  • Towards a New Multilateralism:
    • The international trading order must reconcile the tensions between national interests and global trade governance.

Selective Indecision


Context : The GST Council took its 55th meeting to clarify basic ambiguities

Relevance : GS 2 (Governance ), GS 3(Economic Development )

Practice Question :Examine the impact of delays and clarifications in the GST Council’s decision-making process on India’s tax system.(250 Words )

  • Farmers’ supplies of pepper and raisins deemed non-taxable.
    • Gift vouchers and penalties by banks/NBFCs clarified as outside GST scope.
  • Implications:
    • Such delays undermine the efficiency of GST, a system marketed as a “Good and Simple Tax.”
    • Highlights a reactive rather than proactive policy-making approach.

Complicated Tax Adjustments

Three-tiered GST levy on popcorn introduced:
  • Rationale: Higher taxes on sweetenedvarieties for healthconsiderations.
    • Concerns:
      • Adds complexity to an already convoluted GST structure.
      • Distracts from the need for comprehensive rate rationalisation, delayed for over three years.

Failure to Act on Key Recommendations

  • The Council did not address crucial reports and panels’ suggestions:
    • Ministerial panel on GST rate rejigging: Initial recommendations ignored.
    • Panel on insurance policy taxation: Proposals deferred despite long-standing government promises.
  • Industry Impact:
    • Life insurance sales dipped in November 2024 due to consumer anticipation of GST cuts.
    • Prolonged indecision affects consumption trends and industry planning.

Impact on Broader Economic Objectives

  • Rate Rationalisation Stalled:
    • Uncertainty discourages consumption, already weak in India’s economic recovery phase.
    • Private investment dampened due to lack of tax certainty.
  • Consumption-Linked Investment Plans:
    • Delay in reforms affects industries relying on predictable taxation to forecast demand.

Retroactive Legal Reversals

  • Supreme Court ruling (October 2024):
    • Allowed realty players to claim input tax credits (ITCs) for commercial construction meant for leasing/renting.
  • GST Councils Decision:
    • Reversed this ruling with retrospective effect from July 2017.
  • Investor Implications:
    • Retroactive tax changes evoke memories of past taxation misadventures (e.g., Vodafone tax cases).
    • Dents India’s investment climate by increasing unpredictability.

Perceived Governance Issues

  • The casual handling of critical matters:
    • Panel chair leaving the meeting early signifies a lack of urgency.
    • Promises made during the Budget session remain unfulfilled.
  • Questions Raised:
    • Does the GST Council have a robust framework for prioritizing key reforms?
    • Are state and central governments aligned on long-term GST rationalisation?

Economic and Policy Implications

  • Consumption Impact:
    • Rising ambiguities and delays discourage discretionary spending.
    • Erosion of trust in policy predictability among businesses and consumers alike.
  • Global and Domestic Investment:
    • Investors increasingly wary of inconsistent tax policies.
    • Retroactive changes risk scaring away foreign direct investment (FDI).

Way Forward

  • Urgent Rate Rationalisation:
    • Simplify GST structure by reducing slabs and clarifying ambiguities.
    • Prioritise recommendations from expert panels to address structural issues.
  • Tax Certainty:
    • Avoid retrospective changes to boost investor confidence.
    • Provide clear timelines for decisions on pending reforms to instill confidence in the system.
  • Coordination Between Stakeholders:
    • Ensure better alignment between Centre and States for smoother decision-making.

Canary In The Canopy


The balance between ecological conservation and economic growth is at stake as India faces challenges in forest governance and management.

Relevance :GS 3( Environment )

Practice Question : Discuss the impact of weakened environmental safeguards on India’s forest conservation efforts and the trade-off between economic growth and ecological preservation.(250 Words )

Current Coverage of Forest :

  • According to the India State of Forest Report 2023:25% of India’s land is under forest or tree cover.This aligns with the National Forest Policy’s goals but masks underlying issues.

Post-Independence Forest Governance

  • Shift from colonial timber-centric policies:
    • Introduction of the Forest (Conservation) Act, 1980: Focused on conservation.
    • Enactment of the Forest (Rights) Act, 2006: Recognized community rights over forests.
  • Challenges in implementation:
    • Industrial development pressures.
    • Climate change exacerbating stress on ecosystems.

Flawed Definitions of Forests

  • Ambiguities in Definitions:
    • Conservationists and courts advocate a strict definition, while the government adopts broader terms.
    • Issues:
      • Excludes “community forests.”
      • Includes plantations and orchards with limited ecological benefits.
  • Policy Implications:
    • Boosts claims of expanding carbon sinks to meet climate goals.
    • Facilitates developmental activities, often at the cost of biodiverse areas.

Hidden Losses in Forest Cover

  • Regions Impacted:
    • Decline in forest cover in the Western GhatsNilgirisNortheastKutch, and Andamans.
    • Shrinking of mangroves and moderately dense forests.
  • Mismatch in Accounting:
    • Replacement of natural forests with commercial plantations:
      • Lower carbon sequestration.
      • Reduced ecological value.
    • Use of the Compensatory Afforestation Fund Act exacerbates these issues.

Challenges in Fire Management

  • Rising Forest Fires:
    • Northern districts show exponential increases in fire-affected forest areas over two years.
  • Resource Shortages:
    • Ground reports highlight:
      • Lack of human resources and training.
      • Insufficient equipment for fire control.
  • Impact:
    • Increases pressure on already degraded forests.

Weakening of Environmental Safeguards

  • Forest (Conservation) Amendment Act, 2023:
    • Further narrowed the scope of the 1980 Act, reducing protections.
  • Distortion of Data:
    • Inflated inventory of forest cover masks ecological degradation.
  • Implications:
    • Undermines the friction that environmental laws should impose on unregulated growth.
    • Facilitates unchecked economic development at ecological costs.

Ecological vs. Economic Growth Trade-offs

  • Economic Reality:
    • Growth inevitably leads to some forest loss.
  • Role of Laws:
    • Environmental laws provide necessary friction to balance development and conservation.
  • Government Actions:
    • Weakening safeguards undermines the ability to manage this balance effectively.

Broader Implications

  • Carbon Sequestration Gaps:
    • Reports lack clarity on whether degraded land’s current usage is factored into carbon sink estimates.
  • Biodiversity at Risk:
    • Natural ecosystems cannot be replaced by plantations.
  • No Winners:
    • The current trajectory may lead to long-term ecological and economic losses.

Way Forward

  • Policy Reform:
    • Strengthen environmental laws rather than diluting them.
    • Define forests clearly to prioritize natural ecosystems.
  • Fire Management:
    • Invest in resources, training, and equipment to combat forest fires.
  • Sustainable Development:
    • Ensure economic growth aligns with ecological conservation.
  • Transparent Reporting:
    • Avoid inflating forest cover data; focus on quality rather than quantity.