GOVERNANCE
1. Welfare schemes for vulnerable sections of the
population by the Centre and States and the
performance of these schemes; mechanisms, laws,
institutions and bodies constituted for the protection
and betterment of these vulnerable sections.
VULNERABILITY
Vulnerability refers to a situation of an individual or a group to be in a weak position or diminished capacity. It is a state of
being highly exposed to the possibility of physical or emotional harm caused due to various reasons.
A section of population becoming vulnerable:
Physical vulnerability:
Children: due to the age factor and dependency being vulnerable to issues like child trafficking, child
labour etc.,
due to birth defects, handicaps or children with a feature than normal creating a children with
disabilities/special abilities requiring special treatment. E.g. Blind, Polio affected children, children born
with Dyslexia and so on.
Economic vulnerability: Poverty, low income which creates a vicious cycle of poverty which leads to less
opportunity in education and employment which makes them vulnerable E.g. Farmers with small returns, informal
workers, daily wage labourers etc.
Social vulnerability: is causes vulnerable sections like
LGBT community: due to inadequate understanding or the orthodox mindset against accepting the
change. E.g. LGBT community.
patriarchal mindset with gender stereotyping, narrow thinking making the women vulnerable to
exploitation, harassment and taking away of life opportunities.
Exploitation and ostracisation based on caste leading to socially vulnerable sections like Dalits.
Political vulnerability: sections of society becomes vulnerable due to political crisis like civil war, extremism etc.,
E.g. Illegal migrants entering Europe, Naxal affected population.
Numerical factor: section with distinctive religion or race or language become vulnerable when there is a
imposition by majority or inadequate protection by government. E.g. minority population suffering from majority
like Tamils in Srilanka, Rohingyas in Myanmar.
Environment vulnerability: due to disaster prone geography E.g. people living in coastal regions, earthquake prone
regions etc., The on-set of disaster also created a section of climate refugees as well.
Inadequate implementation of laws which results in exploitation/ vulnerable treatment creating a separate
vulnerable section. E.g. Safai kamacharis in spite of ban, child labour etc.,
Development vulnerability: the displacement of a section of people from their habitats due to developmental
, activities like mining, infrastructure development, dam construction etc.E.g. villagers near forests or river (Narmada
bachao andolan).
Inadequate knowledge and isolation: due to lack of integration with the mainstream society, some of the sections
like tribal population becomes vulnerable to exploitation. Also, inadequate knowledge in health makes tribal
population to morality and malnutrition.
Vulnerabilities due to decline in economic growth
The slowing growth of GDP is the major indicator of slowdown.
“GDP can be thought of as a measure not so much of size…It measures the movement of money through and
around the economy; it measure the activity.”- John Lanchester.
Drop in automobile sales- the production in top 5 firms in India has dropped by about 30% compared to 2018.
Drop in Fast moving Consumer Goods sector: Compared to 2018, the sectors growth fell by about 9.7% in the
rural areas. This is the sector which has demand even during the poor economic performance as this constitutes basic
necessities like toiletries, OTC medicines etc.
Consumption: Private consumption, which contributes nearly 55-60% to India’s GDP, has been slowing down.
While the reduced income growth of households has reduced urban consumption, drought/near-drought conditions in
three of the past five years coupled with the collapse of food prices have taken a heavy toll on rural consumption.
Savings: Savings by household sector – which are used to extend loans for investment — have gone down from
35% (FY12) to 17.2% (FY18).
Investment: Gross Fixed Capital Formation (GFCF), a metric to gauge investment in the economy, too has declined
from 34.3 per cent in 2011 to 28.8 per cent in 2018, government data show. Similarly, in the private sector, it has
declined from 26.9% in 2011 to 21.4% in 2018.
NBFC crisis triggered by IL&FS default led to a liquidity crunch in the economy.
RBI’s Annual report highlighted that there are still structural issues in land, labour, agricultural marketing and the
like that need to be addressed.
Most vulnerable groups of population
Farmers: Price of agricultural products is stagnant, resulting in farm distress and fall in income and consequent fall
in purchasing power—which is directly related to lack of demand.
Consumers: Increased cost of Living ,The rising costs of fuel, food and basic daily items further cause consumer
difficulties. it leaves less money for them to pour into the economy to help counterbalance an economic slowdown
Entrepreneur: While start-ups dealing with sectors impacted directly by slowdown will have a large effect on their
business growth.
Exporters: Net exports, this figure for April to June 2019 stood at -$46 billion. This was almost similar to the net
exports for April to June 2018 at -$46.6 billion.This low sale make them export more which further hike up prices in
domestic market.
Investors: The value of new projects announced during April to June 2019 fell by 79.5% year on year. This is the
highest fall since September 2004. This is a great indicator of the fact that businesses really do not have faith in the
economic future of India.
Measures
RBI, in its annual report, called for counter-cyclical actions in terms of monetary and fiscal policies, along with deep-
, seated reforms for the structural slowdown
Economic Survey 2018-19 asked for taking measures to boost investment, especially private investment, that is the
‘key driver’ that drives demand, creates capacity, increases labour productivity, introduces new technology, allows
creative destruction, and generates jobs.
The Economic Survey of 2018-19 had suggested making the MGNREGS more efficient in targeting areas of low
consumption expenditure where demand for such work is higher.
The ILO’s 2018 report had suggested policies to enhance wages and collective bargaining power so that wages grow
in tandem with labour productivity, more so since India relies on progressive increase of domestic consumption by
lower and middle income groups as a key factor in overall aggregate demand.
Investors;
Enhanced surcharge on FPIs and surcharge on domestic investors in equity markets withdrawn.
Aadhaar-based KYC for opening demat accounts and investment in mutual fund.
Govt to consult with RBI to enhance Credit default swap options.
Industry:
CSR violation would be treated as a civil offence, not a criminal offence.
All pending GST refunds till now shall be paid in 30 days. Future GST refunds to be paid in 60 days
GST system to be simplified further.
Auto sector;
BS-IV cars purchased till March 2020 to remain operational for the entire period of registration.
Govt asks its departments to replace old vehicles.
Higher vehicle registration fee putoff to June next year.
Scrappage policy to be announced soon.
MSMEs:
Govt withdraws angle tax provision for startups and their investors.
Laws to be amended to ensure one MSME definition.
For NBFCs:
NBFC can now use Aadhaar-based KYC.
Additional liquidity to support Housing Finance Companies by National Housing Board increased to Rs 30,000
crore
Govt to release Rs 70,000 crore upfront for PSBs recapitalisation.
Home, auto loans:
Banks to make home, auto loans cheaper. Banks have agreed to pass on the rate cut announced by RBI to
customers.
Online tracking system for home, auto loans.
Income Tax:
From October 1, all Income Tax notices must be disposed off within 3 months.
1. How does structural discrimination lead to vulnerability? Illustrate.
, Approach – You need to highlight what is structural discrimination and show its linkages to vulnerability with the
help of suitable examples.
Introduction
Discrimination is a multifaceted phenomenon, it is in particular about social exclusion as a process. Structural
discrimination refers to rules, norms, routines, patterns of attitudes and behavior in institutions and other societal
structures that represent obstacles to groups or individuals in achieving the same rights and opportunities that are
available to the majority of the population.
Body
It is also important to recognize that the consequences of rules, norms and behaviors are that some are
affected negatively and others positively. Such discrimination may be either open or hidden, and it could
occur intentionally or unintentionally. Structural discrimination is about “them” and “us”.
Discrimination on the grounds of people’s ideas of ethnicity, religion, gender, race, culture, age, sexual
orientation, etc. must be seen from a structural perspective.
Vulnerable group simply means the group of people who could easily be harmed physically, mentally or
emotionally. According to World Bank “one that has some specific characteristics that make it at higher risk
of falling into poverty than others” are said to be as vulnerable groups.
Vulnerable Groups are groups of persons that experience a higher risk of poverty, social exclusion,
discrimination and violence than the general population, including, but not limited to, ethnic minorities,
migrants, and people with disabilities, isolated elderly people and children.
Structural discrimination can be hidden in what is perceived as “normal” or “natural”. In this way it helps to
influence how practices are established and reproduced – often the aim is to be inclusive or well-meaning. It
is therefore not just about ethnicity, religion or the idea of race, but also about other minority positions, such
as gender or sexuality.
In India, members of gender, caste, class, and ethnic identity experience structural discrimination that impact
their health and access to healthcare.
Women face double discrimination being members of specific caste, class or ethnic group apart from
experiencing gendered vulnerabilities.For example, one of the key indicators of maternal mortality is the
MMR, defined as the number of maternal deaths per 1,00,000 live births. In India, this is around 113 in 2016-
17.
Dalits suggests a group who, historically are in a state of oppression, social disability due to the
discrimination based on their low status on the caste hierarchy. This kind of structural discrimination has led
to SC’s having lowest indicators on all aspects where their vulnerability further increases.
The Scheduled Tribes are landless and usually face discrimination. In India, their population is around 84.3
million and is considered to be socially and economically disadvantaged. They are socially, economically &
fundamentally isolated. This structural isolation led to their present vulnerability.
1. Welfare schemes for vulnerable sections of the
population by the Centre and States and the
performance of these schemes; mechanisms, laws,
institutions and bodies constituted for the protection
and betterment of these vulnerable sections.
VULNERABILITY
Vulnerability refers to a situation of an individual or a group to be in a weak position or diminished capacity. It is a state of
being highly exposed to the possibility of physical or emotional harm caused due to various reasons.
A section of population becoming vulnerable:
Physical vulnerability:
Children: due to the age factor and dependency being vulnerable to issues like child trafficking, child
labour etc.,
due to birth defects, handicaps or children with a feature than normal creating a children with
disabilities/special abilities requiring special treatment. E.g. Blind, Polio affected children, children born
with Dyslexia and so on.
Economic vulnerability: Poverty, low income which creates a vicious cycle of poverty which leads to less
opportunity in education and employment which makes them vulnerable E.g. Farmers with small returns, informal
workers, daily wage labourers etc.
Social vulnerability: is causes vulnerable sections like
LGBT community: due to inadequate understanding or the orthodox mindset against accepting the
change. E.g. LGBT community.
patriarchal mindset with gender stereotyping, narrow thinking making the women vulnerable to
exploitation, harassment and taking away of life opportunities.
Exploitation and ostracisation based on caste leading to socially vulnerable sections like Dalits.
Political vulnerability: sections of society becomes vulnerable due to political crisis like civil war, extremism etc.,
E.g. Illegal migrants entering Europe, Naxal affected population.
Numerical factor: section with distinctive religion or race or language become vulnerable when there is a
imposition by majority or inadequate protection by government. E.g. minority population suffering from majority
like Tamils in Srilanka, Rohingyas in Myanmar.
Environment vulnerability: due to disaster prone geography E.g. people living in coastal regions, earthquake prone
regions etc., The on-set of disaster also created a section of climate refugees as well.
Inadequate implementation of laws which results in exploitation/ vulnerable treatment creating a separate
vulnerable section. E.g. Safai kamacharis in spite of ban, child labour etc.,
Development vulnerability: the displacement of a section of people from their habitats due to developmental
, activities like mining, infrastructure development, dam construction etc.E.g. villagers near forests or river (Narmada
bachao andolan).
Inadequate knowledge and isolation: due to lack of integration with the mainstream society, some of the sections
like tribal population becomes vulnerable to exploitation. Also, inadequate knowledge in health makes tribal
population to morality and malnutrition.
Vulnerabilities due to decline in economic growth
The slowing growth of GDP is the major indicator of slowdown.
“GDP can be thought of as a measure not so much of size…It measures the movement of money through and
around the economy; it measure the activity.”- John Lanchester.
Drop in automobile sales- the production in top 5 firms in India has dropped by about 30% compared to 2018.
Drop in Fast moving Consumer Goods sector: Compared to 2018, the sectors growth fell by about 9.7% in the
rural areas. This is the sector which has demand even during the poor economic performance as this constitutes basic
necessities like toiletries, OTC medicines etc.
Consumption: Private consumption, which contributes nearly 55-60% to India’s GDP, has been slowing down.
While the reduced income growth of households has reduced urban consumption, drought/near-drought conditions in
three of the past five years coupled with the collapse of food prices have taken a heavy toll on rural consumption.
Savings: Savings by household sector – which are used to extend loans for investment — have gone down from
35% (FY12) to 17.2% (FY18).
Investment: Gross Fixed Capital Formation (GFCF), a metric to gauge investment in the economy, too has declined
from 34.3 per cent in 2011 to 28.8 per cent in 2018, government data show. Similarly, in the private sector, it has
declined from 26.9% in 2011 to 21.4% in 2018.
NBFC crisis triggered by IL&FS default led to a liquidity crunch in the economy.
RBI’s Annual report highlighted that there are still structural issues in land, labour, agricultural marketing and the
like that need to be addressed.
Most vulnerable groups of population
Farmers: Price of agricultural products is stagnant, resulting in farm distress and fall in income and consequent fall
in purchasing power—which is directly related to lack of demand.
Consumers: Increased cost of Living ,The rising costs of fuel, food and basic daily items further cause consumer
difficulties. it leaves less money for them to pour into the economy to help counterbalance an economic slowdown
Entrepreneur: While start-ups dealing with sectors impacted directly by slowdown will have a large effect on their
business growth.
Exporters: Net exports, this figure for April to June 2019 stood at -$46 billion. This was almost similar to the net
exports for April to June 2018 at -$46.6 billion.This low sale make them export more which further hike up prices in
domestic market.
Investors: The value of new projects announced during April to June 2019 fell by 79.5% year on year. This is the
highest fall since September 2004. This is a great indicator of the fact that businesses really do not have faith in the
economic future of India.
Measures
RBI, in its annual report, called for counter-cyclical actions in terms of monetary and fiscal policies, along with deep-
, seated reforms for the structural slowdown
Economic Survey 2018-19 asked for taking measures to boost investment, especially private investment, that is the
‘key driver’ that drives demand, creates capacity, increases labour productivity, introduces new technology, allows
creative destruction, and generates jobs.
The Economic Survey of 2018-19 had suggested making the MGNREGS more efficient in targeting areas of low
consumption expenditure where demand for such work is higher.
The ILO’s 2018 report had suggested policies to enhance wages and collective bargaining power so that wages grow
in tandem with labour productivity, more so since India relies on progressive increase of domestic consumption by
lower and middle income groups as a key factor in overall aggregate demand.
Investors;
Enhanced surcharge on FPIs and surcharge on domestic investors in equity markets withdrawn.
Aadhaar-based KYC for opening demat accounts and investment in mutual fund.
Govt to consult with RBI to enhance Credit default swap options.
Industry:
CSR violation would be treated as a civil offence, not a criminal offence.
All pending GST refunds till now shall be paid in 30 days. Future GST refunds to be paid in 60 days
GST system to be simplified further.
Auto sector;
BS-IV cars purchased till March 2020 to remain operational for the entire period of registration.
Govt asks its departments to replace old vehicles.
Higher vehicle registration fee putoff to June next year.
Scrappage policy to be announced soon.
MSMEs:
Govt withdraws angle tax provision for startups and their investors.
Laws to be amended to ensure one MSME definition.
For NBFCs:
NBFC can now use Aadhaar-based KYC.
Additional liquidity to support Housing Finance Companies by National Housing Board increased to Rs 30,000
crore
Govt to release Rs 70,000 crore upfront for PSBs recapitalisation.
Home, auto loans:
Banks to make home, auto loans cheaper. Banks have agreed to pass on the rate cut announced by RBI to
customers.
Online tracking system for home, auto loans.
Income Tax:
From October 1, all Income Tax notices must be disposed off within 3 months.
1. How does structural discrimination lead to vulnerability? Illustrate.
, Approach – You need to highlight what is structural discrimination and show its linkages to vulnerability with the
help of suitable examples.
Introduction
Discrimination is a multifaceted phenomenon, it is in particular about social exclusion as a process. Structural
discrimination refers to rules, norms, routines, patterns of attitudes and behavior in institutions and other societal
structures that represent obstacles to groups or individuals in achieving the same rights and opportunities that are
available to the majority of the population.
Body
It is also important to recognize that the consequences of rules, norms and behaviors are that some are
affected negatively and others positively. Such discrimination may be either open or hidden, and it could
occur intentionally or unintentionally. Structural discrimination is about “them” and “us”.
Discrimination on the grounds of people’s ideas of ethnicity, religion, gender, race, culture, age, sexual
orientation, etc. must be seen from a structural perspective.
Vulnerable group simply means the group of people who could easily be harmed physically, mentally or
emotionally. According to World Bank “one that has some specific characteristics that make it at higher risk
of falling into poverty than others” are said to be as vulnerable groups.
Vulnerable Groups are groups of persons that experience a higher risk of poverty, social exclusion,
discrimination and violence than the general population, including, but not limited to, ethnic minorities,
migrants, and people with disabilities, isolated elderly people and children.
Structural discrimination can be hidden in what is perceived as “normal” or “natural”. In this way it helps to
influence how practices are established and reproduced – often the aim is to be inclusive or well-meaning. It
is therefore not just about ethnicity, religion or the idea of race, but also about other minority positions, such
as gender or sexuality.
In India, members of gender, caste, class, and ethnic identity experience structural discrimination that impact
their health and access to healthcare.
Women face double discrimination being members of specific caste, class or ethnic group apart from
experiencing gendered vulnerabilities.For example, one of the key indicators of maternal mortality is the
MMR, defined as the number of maternal deaths per 1,00,000 live births. In India, this is around 113 in 2016-
17.
Dalits suggests a group who, historically are in a state of oppression, social disability due to the
discrimination based on their low status on the caste hierarchy. This kind of structural discrimination has led
to SC’s having lowest indicators on all aspects where their vulnerability further increases.
The Scheduled Tribes are landless and usually face discrimination. In India, their population is around 84.3
million and is considered to be socially and economically disadvantaged. They are socially, economically &
fundamentally isolated. This structural isolation led to their present vulnerability.
