2nd week, march 2015 - eca 2015 (1)
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2ND WEEK, MARCH 2015 - ECA 2015 (1)TRANSCRIPT
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CIVIL SERVICES EXAM 2015
MAINS 2015 Q & A - CURRENT AFFAIRS
SECOND WEEK - MARCH 2015
08-03-2015 - HOLIDAY
09-03-2015
Q1- THE SELMA-TO-MONTGOMERY MARCH FOR VOTING RIGHTS ENDED
THREE WEEKS AND THREE EVENTS-THAT REPRESENTED THE POLITICAL AND
EMOTIONAL PEAK OF THE MODERN CIVIL RIGHTS MOVEMENT IN THE US.
WRITE A SHORT NOTE ON “BLOODY SUNDAY”. WHAT WAS THE OUTCOME OF
THIS HISTORIC CIVIL RIGHTS MOVEMENT.
GS PAPER-I WORLD HISTORY
BLOODY SUNDAY- CIVIL RIGHTS MOVEMENT IN U.S.A
Between 1961 and 1964, the Student Nonviolent Coordinating Committee (SNCC) had led a
voting registration campaign in Selma, Alabama, a small town with a record of consistent
resistance to black voting.
When SNCC’s efforts were frustrated by stiff resistance from the county law enforcement
officials, Martin Luther King, Jr. and theSouthern Christian Leadership Conference
(SCLC) were persuaded by local activists to make Selma’s intransigence toblack voting a
national concern.
SCLC also hoped to use the momentum of the 1964 Civil Rights Act to win federal protection for
a voting rights statute. During January and February, 1965, King and SCLC led a series of
demonstrations to the Dallas County Courthouse.
On February 17, protester Jimmy Lee Jackson was fatally shot by an Alabama state trooper. In
response, a protest march from Selma to Montgomery was scheduled for March 7. Six hundredmarchers assembled in Selma on Sunday, March 7,1965 and, led by John Lewis and other SNCC
and SCLC activists, crossed theEdmund Pettus Bridge over the Alabama River en route to
Montgomery. Just short of the bridge, they found their way blocked by Alabama State troopers
and local police who ordered them to turn around. When the protesters refused, the officers shot
teargas and waded into the crowd, beating the nonviolent protesters with billy clubs and ultimately
hospitalizing over fifty people.
“Bloody Sunday” was televised around the world. Martin Luther King called for civil rights
supporters to come to Selma for a second march. When members of Congress pressured him to
restrain the march until a court could rule on whether the protesters deserved federal protection,
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King found himself torn between their requests for patience and demands of the movement
activists pouring into Selma. King, still conflicted, led the second protest on March 9 but turned it
around at the same bridge. King’s actions exacerbated the tension between SCLC and the more
militant SNCC, who were pushing for more radical tactics that would move from nonviolent
protest to win reforms to active opposition to racist institutions.
On March 21, the final successful march began with federal protection, and on August 6, 1965, the
federal Voting Rights Actwas passed, completing the process that King had hoped for. Yet
Bloody Sunday was about more than winning a federal act; it highlighted the political pressures
King was negotiating at the time, between movement radicalism and federal calls for restraint, as
well as the tensions between SCLC and SNCC.
Why recently in news?
President Barack Obama, former President George W. Bush and other luminaries converged on
Selma, Ala., Saturday for the 50th anniversary of ‘Bloody Sunday’. The president paid tribute to
the marchers who were beaten by state troopers on March 7, 1965, as they sought to cross the
bridge toward Montgomery, an event that came to be known as Bloody Sunday. The clash, along
with subsequent marches, helped pave the way for passage of the 1965 Voting Rights Act.
Q2- WHAT IS MARSHALL PLAN? WHAT WAS THE MAIN REASON BEHIND TO
AID EUROPE BY THE U.S.A DURING POST WORLD WAR-II. WHAT WERE THE
OUTCOME OF THIS PLAN?
GS PAPER-I WORD HISTORY
Marshall Plan, 1948
In the immediate post-World War II period, Europe remained ravaged by war and thus susceptible
to exploitation by an internal and external Communist threat. In a June 5, 1947, speech to the
graduating class at Harvard University, Secretary of State George C. Marshall issued a call for a
comprehensive program to rebuild Europe.
REASON: Fanned by the fear of Communist expansion and the rapid deterioration of
European economies in the winter of 1946 – 1947, Congress passed the Economic Cooperation
Act in March 1948 and approved funding that would eventually rise to over $12 billion for the
rebuilding of Western Europe.
Aid to Europe
From 1945 through 1947, the United States was already assisting European economic recovery
with direct financial aid. Military assistance to Greece and Turkey was being given. The newly
formed United Nations was providing humanitarian assistance.
The Marshall Plan significantly magnified their own efforts and reduced the suffering and time
West Europe took to recover from the war. Officially known as the European Recovery
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Program (ERP), the Marshall Plan was intended to rebuild the economies and spirits of western
Europe, primarily.
Marshall was convinced the key to restoration of political stability lay in the revitalization of
national economies. Further he saw political stability in Western Europe as a key to blunting the
advances of communism in that region.
The program – whose official title was “European Recovery Program“– aimed at:
(1) increasing production;
(2) expanding European foreign trade;
(3) facilitating European economic cooperation and integration; and
(4) controlling inflation.
Results:
Marshall Plan nations were assisted greatly in western Europe economic recovery. From 1948
through 1952 European economies grew at an unprecedented rate.The Marshall Plan was very
successful. The western European countries involved experienced a rise in their gross national
products of 15 to 25 percent during this period. The plan contributed greatly to the rapid renewal
of the western European chemical, engineering, and steel industries.
Trade relations led to the formation of the North Atlantic alliance.
Economic prosperity led by coal and steel industries helped to shape what we know now as the
European Union.
10-03-2015
Q1: DISCUSS BRIEFLY THE FUNCTIONS AND IMPORTANT PROVISIONS OF THE
GRAM NYAYALAYAS.
GS PAPER-II INDIAN POLITY
Gram Nyayalayas:
Gram Nyayalayas or village courts are established under theGram Nyayalayas Act,
2008 for speedy and easy access to justice system in the rural areas of India. The Act came
into force from 2 October 2009.
However, the Act has not been enforced properly, with only 194 functional Gram Nyayalayas in
the country against a target of 5000 such courts.
The major reason behind the non-enforcement includes financial constraints, reluctance of
lawyers, police and other government officials.
Important provisions of Gram Nyayalayas:
Gram Nyayalaya are established generally at headquarter of every Panchayat at intermediate level
or a group of contiguous panchayat in a district where there is no panchayat at intermediate level.
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The Gram Nyayalayas are presided over by a Nyayadhikari, who will have the same power, enjoy
same salary and benefits of a Judicial Magistrate of First Class. Such Nyayadhikari are to
beappointed by the State Government in consultation with the respective High Court.
A Gram Nyayalaya have jurisdiction over an area specified by a notification by the State
Government in consultation with the respective High Court. The Court can function as a mobile
courtat any place within the jurisdiction of such Gram Nyayalaya, after giving wide publicity to
that regards.
The Gram Nyayalayas have both civil and criminal jurisdictionover the offences. The pecuniary
jurisdiction of the Nyayalayas are fixed by the respective High Courts.
Both the Central and the State Government can add or remove items in the Schedule. While the
Central Government can amend the list in Schedule I and II, by notifying them and thereafter
laying it in the Parliament, the State Government can amend the items in Part III of Schedule I or
II, in the areas of law which the state is competent to enact law after due consultation with the
respective High Court and notifying it. Such notification has to be laid in the State Legislature.
Gram Nyayalayas can follow special procedures in civil matters, in a manner it deem just and
reasonable in the interest of justice.
Gram Nyayalayas allow for conciliation of the dispute and settlement of the same in the first
instance.
Gram Nyayalayas has been given power to accept certain evidences which would otherwise not be
acceptable under Indian Evidence Act.
Appeals in criminal matter can be made to the Sessions Court in the respective jurisdiction and incivil matters to the District Court within a period of one month from the date of judgment.
Q2: REFORMS IN BANKRUPTCY LAWS CAN PLAY AN EXTREMELY CRUCIAL
ROLE IN ECONOMIC GROWTH AND FINANCIAL STABILITY. CRITICALLY
EXAMINE WHY BANKRUPTCY LAW REFORM IS REQUIRED. HOW IT WILL
STIMULATE THE ECONOMY? GIVE ANY RECENT EXAMPLE IN BANKRUPTCY
CASE.
GS PAPER-III ECONOMIC ISSUE- BANKRUPTCY LAWS
BACKGROUND:
India has often been in the limelight for archaic laws in relation to bankruptcy and the processes
involved in the same. The special legislation entitled Sick Industrial Companies (Special
Provisions) Act, 1985 (‘SICA’) was enacted to take preventive or remedial measures for sick
companies.
The Board for Industrial and Financial Reconstruction was set up under SICA to deal with revival
and rehabilitation of sick industrial companies. However, the whole process was lengthy with poorenforcement mechanism. SICA was increasingly used as a shelter by defaulting borrowers who did
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not want to pay the legitimate dues of the creditors.
This had a great impact on the economy, credit processes, rates of interest and credibility of
companies.
Bankruptcy laws outside India focus on the revival of a business. The idea is to provide the debtor
with various mechanisms to restructure and revive its business, be it acquiring finance on
favorable terms or providing a stay on litigation.
Why Bankruptcy law reform required in India?
Economic policies overwhelmingly focus on fiscal measures, monetary interventions and welfare
programmes to aid businesses, but the legal processes that underlie commerce are often ignored.
Laws that are concerned with starting businesses, enforcing contracts, ensuring debt repayments
and exiting businesses, play a critical role and can thwart growth, rendering even good policies
ineffective.
Bankruptcy law reform, that brings about legal certainty and speed, has been identified as a key
priority for improving the ease of doing business. India will have a comprehensive bankruptcy
code making it easier for entrepreneurs to exit unviable ventures on the lines prevailing in the US,
towards improving the ease of doing business.
The new code will essentially help banks recover dues in case promoters default.
It will replace the Sick Industrial Companies Act (SICA) as well as the Board for Industrial
and Finance reconstruction (BIFR) Actwhich have failed in achieving the objective of
bankruptcy law reform.
How Bankruptcy law will stimulate the economy? The connection between better insolvency laws and economic growth is straightforward: stronger
bankruptcy laws protect the rights of borrowers and lenders, promote predictability, clarify the
risks associated with lending, and make the collection of debt through bankruptcy proceedings
more attractive. These factors ultimately facilitate credit and thus a higher flow of capital in the
economy.
Example for Bankruptcy case:
A recent celebrated case of corporate default is that of the grounded Kingfisher Airlines, which
owes over Rs.7,000 crore to a consortium of banks. The airlines owes the state-run State Bank ofIndia Rs.2,000 crore, while the bank took possession of Kingfisher House in Mumbai recently in a
bid to recover some part of its money.
Why recently in news?
Finance Minister Arun Jaitley said in his Budget 2015-16 speech “We will bring a comprehensive
bankruptcy code in the fiscal 2015-16, that will meet global standards and provide necessary
judicial capacity.”
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Q3: WHAT IS SOCIAL AUDIT? WHAT ARE THE BASIC PRINCIPLES OF SOCIAL
AUDIT? WHAT IS THE ROLE OF GRAM PANCHAYAT IN SOCIAL AUDIT?
BENEFITS OF SOCIAL AUDIT?
GS PAPER-II INDIAN POLITY- SOCIAL AUDIT
What is a social audit?
A social audit is a process by which the people, the final beneficiaries of any scheme, programme,
policy or law, are empowered to audit such schemes, programmes, policies and laws.
A social audit is an ongoing process by which the potential beneficiaries and other stakeholders of
an activity or project are involved from the planning to the monitoring and evaluation of that
activity or project. It thereby tries to ensure that the activity or project is designed and
implemented in a manner that is most suited for the prevailing (local) conditions, appropriately
reflects the priorities and preferences of those affected by it, and most effectively serves public
interest.
What are the basic principles of a social audit?
The basic principles of social audit include:
Transparency : Complete transparency in the process of administration and decision-making,
with an obligation on the government to suo moto (voluntary disclosure of information) give the
people full access to all relevant information.
Participation: A right based entitlement for all the affected persons (and not just their
representatives) to participate in the process of decision making and validation; Representative participation : In those rare cases where options are predetermined out of
necessity, the right of the affected persons to give informed consent, as a group or as individuals,
as appropriate.
Accountability: Immediate and public answerability of elected representatives and government
functionaries, to a ll the concerned and affected people, on relevant actions or inactions.
Who will carry out Social Audit?
Social Audit, by definition, is carried out by the community of stakeholders. This will include
beneficiaries / participants, implementing agency, Gram Panchayat representatives etc. The entireGram Sabha is expected to participate in Social Audit.
What is the role of gram panchayat and gram sabha in social audit?
Gram Panchayat (GP) is the lowest planning and administrative unit for development programmes
and schemes. The scheme guidelines specify that GPs should organise social audit (eg: NREGS).
The procedures of planning and executing schemes/ works at GP levels prescribed in the various
guidelines have inbuilt processes for social audit.
Some of them are:
-Wide publicity for schemes/ programmes among local community,
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-placing the GP plans, list of beneficiaries, plan estimates, funds receipts and
expenditure etc. in the gram sabha are part of the social audit process.
Instead of making this as a routine stipulation adhering to mechanical exercise, encouraging
the community members to discuss and seek clarifications at the gram sabha itself can turn
out to be a sort of social audit. Social animators and activists should facilitate this.
Formation of Village level Monitoring Committees (VMC) with genuinely interested members
than vested interests, allowing them to perform their assigned functions and requesting them to
present their findings and observations in Gram Sabha is also a form of social audit.
Keeping all relevant records, registers, documents etc. in proper and updated manner and making
it available for anyone who wants to check and scrutinise is one of the functions of GP. This is all
the more important and mandatory in the context of Right to Information Act and programmes like
NREGS.
What are the benefits of Social Audit?
Social Audit helps in
– Awareness generation
-Monitoring the implementation
-Impact in processes
– Grievances Redressal & follow-up of corrective actions.
Q1 – THE POLICY DISCOURSE AROUND BANKING IN INDIA HAS THROWN UP
MANY SPECIFIC IDEAS AND CHALLENGES RECENTLY. ECONOMIC SURVEY 2014-15 ADVOCATES 4-D MODEL FOR MEETING THE CHALLENGES FACED BY
INDIAN BANKING SECTOR. CRITICALLY EXAMINE THE 4-D MODEL & ITS
IMPLICATIONS [250 WORDS]
GS PAPER 3 – BANKING SECTOR
4D MODEL
According to Economic Survey 2015-16, The Indian banking industry must follow the “4D
model” — deregulation, differentiation, diversification and disinterring to manage the tough
challenges being faced by it.
Deregulation and differentiation because of the high level of inconsistency in operation and
performance of public sector banks, diversification and disinterring implying stricter bankruptcy
laws and exit options.
Deregulation
Banking sector slowly exits from the problem of Financial Repression on liab ility side.
There is a fall in Inflation in the last couple of months. So it is an ideal time to deregulate Banking
sector.
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Statutory Liquidity Ratio requirements can be gradually relaxed. This will provide liquidity to the
banks, depth to the government bond market, and encourage the development of the corporate
bond market.
Incentives should be provided for a deeper bond market.
Sectors under Priority sector lending norms should be re-defined to slowly make priority sector
more targeted, smaller, and need-driven.
Differentiation
Public sector banks are not performing equally. Some PSBs are performing well and earning huge
profits and some PSBs are incurring losses. So there is a need to differentiate them based on their
functioning [ profitability]
The policy implication is that a one size-fits-all approaches to governance reforms, public
ownership, exit and recapitalisation should cede to a more selective approach.Diversification
There is a need for healthy competition within and outside the banking system.
More banks and more kinds of banks must be encouraged. For example, recently RBI announced
the norms for payment banks and small banks. [ it will increase healthy competit ion]
Disinter
Bankruptcy procedures are complicated in nature in India. Debt Recovery Tribunals are over-
burdened and underresourced, leading to tardy turnaround times and delayed justice.
The SARFAESI act seems to work more against the smallest borrowers and medium
sector enterprises.
When the next boom and bust comes around, India needs to be better prepared to distribute
pain between promoters, creditors, consumers, and taxpayers. Being prepared for the cleanup is as
important as the being prudent in the run-up. So Better bankruptcy procedures for the future is
essential.
Q2 – WHAT DO YOU MEAN BY ‘STATUTORY LIQUIDITY RATIO’? WHAT IS THE
RATIONALE BEHIND IT? HOW SLR DIFFERS FROM CRR? EXPERTS CALL MONEY
HELD UNDER STATUTORY LIQUIDITY RATIO AS DEAD MONEY. SO SLR SHOULD
BE ABOLISHED GRADUALLY TO MEET THE GROWING REQUIREMENTS OF
CREDIT TO FUND INFRASTRUCTURE DEVELOPMENT ACTIVITIES IN INDIA.
CRITICALLY EXAMINE THE STATEMENT? [250 WORDS]
GS PAPER 3
Introduction to Statutory Liquidity Ratio?
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Statutory Liquidity Ratio is the amount of liquid assets [ like cash, precious metals] or other short-
term securities, that a financial institution must maintain in its reserves.
It indicates the minimum percentage of deposits that the bank has to maintain in form of gold,
cash or other approved securities.
It regulates the credit growth in India.
The main objectives for maintaining the SLR ratio are the following:
1.
to control the expansion of bank credit. By changing the level of SLR, the Reserve Bank of India
can increase or decrease bank credit expansion.
2.
to ensure the solvency of commercial banks.
3.
to compel the commercial banks to invest in government securities like government bonds.
4.
The SLR is commonly used to control inflation and fuel growth, by increasing or decreasing it
respectively.Difference between Cash Reserve Ratio [CRR] and Statutory Liquidity Ratio [SLR]
CRR is a portion of the banks’ NDTL or deposits that need to be kept in their specif ied current
accounts maintained with RBI. This money earns no interest.
The important difference between CRR and SLR is that CRR has to be maintained in cash while
SLR can be maintained either in cash or in assets that RBI suggests. Banks don’t earn any re turns
from the money parked in the form of CRR. However, banks can earn returns from SLR.
Reducing SLR on a gradual basis would be healthy for the financial sector and this would allow
banks to direct their resources to a more productive use Such a large scale preemption of savings by the government through SLR fundamentally distorts
the interest rate structure in the economy by artificially depressing the yield curve. This
complicates the pricing of all assets in the economy.
Why SLR should not be abolished?
Banks raise public deposits with a promise to redeem them at par or more. To reduce the risk of
the portfolio of the bank, the regulator[RBI] ensures through SLR that at least some part is
deployed in the safest assets available.
Nachiket Mor committee recommendation on SLR Recently RBI appointed panel headed by Nachiket Mor recommended t slowly abolish the SLR.
According to the panel, SLR requirement has outlived its utility.
Q3 – ECONOMIC SURVEY 2014 – 15 – HOW WILL YOU DEFINE A ‘SICK PSU’?
GIVE AN ACCOUNT ON VARIOUS INTERNAL AND EXTERNAL FACTORS WHICH
LEAD TO INDUSTRIAL SICKNESS? ALL LOSS MAKING PUBLIC SECTOR
UNDERTAKINGS [PSU] SHOULD BE CLOSED TO MAINTAIN FISCAL PRUDENCE.
DO YOU AGREE WITH THE STATEMENT. COMMENT? [250 WORDS]
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GS PAPER 3
Sick PSUs [Public Sector Undertakings]
According to Sick Industrial Companies Act (SICA), Sick industrial unit is defined as a unit or a
company (having been in existence for not less than five years) which is found at the end of any
financial year to have incurred accumulated losses equal to or exceeding its ent ire net worth.
An industrial unit is also regarded as potentially sick or weak unit if at the end of any financial
year, it has accumulated losses equal to or exceeding 50 per cent of its average net worth in the
immediately preceding four financial years and has failed to repay debts to its creditor(s) in three
consecutive quarters on demand made in writing for such repayment.
What is Fiscal Prudence?
Fiscal prudence means to use financial resources wisely and not spend more than you can take in.
Good judgment or wisdom gained from experience and knowledge, expressed in a realistic and
frugal attitude.
Why recently in news
According to government, there are 65 Public Sector Undertakings declared sick which include
Air India, MTNL, Hindustan Shipyard and others.
Reasons for Industrial Sickness
Many factors [Internal and External] are responsible for Industrial sickness
Internal factors are those which arise within an organisation. They include:-
Mismanagement in various functional areas of a company like finance, production, marketing and
personnel;
Wrong location of a unit;
Overestimation of demand and wrong dividend policy;
Poor implementation of projects which may be due to improper planning or managerial
inefficiency;
Poor inventory management in respect of finished goods as well as inputs;
Unwarranted expansion and diversion of resources such as personal extravagances,excessive
overheads, acquisition of unproductive fixed assets,etc.;
Failure to modernise the productive apparatus, change the product mix and other elements of
marketing mix to suit the changing environment;
Poor labour-management relationship and associated low workers’ morale and low
productivity,strikes,lockouts, etc.
External factors are those which take place outside an organisation. They include:
Energy crisis arising out of power cuts or shortage of coal or oil;
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Failure to achieve optimum capacity due to shortage of raw materials as a result of production set-
backs in the supply industries, poor agricultural output because of natural reasons,changes in the
import conditions,etc.
Infrastructural problems like transport bottlenecks;
Credit squeeze;
Situations like market recession, changes in technology,etc;
International pressures or circumstances, etc.
Consequences of Industrial Sickness
Industrial sickness may be caused by a combination of all such factors. It has several adverse
consequences on the economy as a whole. Some of which may be enumerated as follows:-
It leads to loss of substantial revenue to the Government and enhances its public expenditure;
It locks up necessary resources and funds in the sick unit. This also increases the non-performing
assets (NPAs) of banks and financial institutions;
It leads to loss of production and productivity in the economy;
It aggravates the problem of unemployment in the economy;
It vitiates the industrial atmosphere and leads to worker-management disputes,strikes,lock-
outs,etc;
It undermines the public confidence in the functioning of the organised sector in the country which
in turn affects the overall investment climate of the economy.
Critical Analysis
There is no need to close all loss making PSUs. Government may opt to close PSUs which are
declared as sick PSUs.
Because a PSU is declared as sick when it incurred losses worth 50 per cent or more of their
average net worth during four preceding years. [ means we are waiting for 4 years before declaring
it as sick and there is no reason to wait beyond this reasonable time]
Loss making PSUs should be analyzed. If it has the potential for revival with financial support
from the government, then it should not be closed.
Q4 – HOW WILL YOU DEFINE THE FOLLOWING TERMS – ‘FINANCIAL
REPRESSION’ & ‘DOUBLE FINANCIAL REPRESSION’? ECONOMIC SURVEY
2014-15 POINTS OUT THAT ‘DOUBLE FINANCIAL REPRESSION’ IMPEDES THE
GROWTH OF BANKING SECTOR IN INDIA. IN THIS BACKGROUND, DISCUSS
THE REASONS AND IMPACTS OF DOUBLE FINANCIAL REPRESSION ON INDIAN
BANKING SYSTEM? GIVE YOUR SUGGESTIONS TO ADDRESS THESE
PROBLEMS? [250 WORDS]
GS PAPER 3
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What is Financial Repression?
Financial repression is a term used to describe measures sometimes used by governments to boost
their coffers and/or reduce debt.
These measures include the deliberate attempt to hold down interest rates to below inflation,representing a tax on savers and a transfer of benefits from lenders to borrowers.
Financial repression is also used to describe measures to facilitate a domestic market for
government debt and the imposition of capital controls.
What is ‘Double Financial Repression’?
According to Economic Survey 2014-15, Indian banking sector is hobbled by policy, which has
created “double financial repression” reducing returns to depositors and mis-allocating capital to
investors due to depressed returns on assets.
Impacts of Double Financial Repress ion
This has led to a reduction in household savings.
It impacts the healthy competition among banks. Because private sector become the driver of
economic growth engine for last two decades. But Private sector banks could not increase their
presence while there is wide variation in the performance of the public sector banks measured in
terms of prudence and profitability.
Reasons for Double Financial Repression
Financial repression on the asset side of the balance sheet is created by the statutory liquidity ratio(SLR) requirement that forces banks to hold government securities, and priority sector
lending (PSL) that forces resource deployment in less than-fully efficient ways.
Financial repression on the liability side has arisen from high inflation since 2007, leading to
negative real interest rates, and a sharp reduction in households’ financial savings.
The way Forward
Banking is hobbled by policy, which creates double financial repression, and by structural factors,
which impede competition.
The solution lies in the 4 Ds of deregulation (addressing the statutory liquidity ratio (SLR) and priority sector lending (PSL)), differentiation (within the public sector banks in relation to
recapitalisation, shrinking balance sheets, and ownership), diversification (of source of funding
within and outside banking), and disinterring (by improving exit mechanisms).
Q5 – CRITICALLY EXAMINE THE NATURE OF INDIA – SEYCHELLES RELATIONS?
EXAMINE WHY SEYCHELLES IS VITAL FOR OUR SECURITY AND PROGRESS?
[200 WORDS]
GS 2 – INDIA’S FOREIGN POLICY
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Introduction
Indo-Seychelles relations have been characterised by close friendship, understanding and
cooperation. Diplomatic ties were established with Seychelles after its independence in 1976.
Seychelles is our important partner and immediate neighbourhood in Indian Ocean Region. India looks to counter the increasing chinese influence in Indian Ocean Region. So Our Prime
Minister’s visit to three Indian ocean economies namely, Seychelles, Mauritius and Sri lanka is
vital to counter the growing chinese influence in IOR or simply String of pearls.
Historical Background to India – Seychelles relations
India has an important link with Seychelles in the form of Indian nationals who have been among
the earliest inhabitants of this island, mostly from Tamil Nadu and of late from Gujarat, who came
as labour, petty traders, construction workers and more recently as professionals. Together they
constitute around 7% of the total population.
Important agreements signed earlier – Air services agreement, Agreement on Tourism, Cultural
Exchange programme and Trade agreement etc..
Why recently in news
Indira Gandhi had visited the country in 1981. Recently Our Prime minister visited
Seychelles. Modi became the first Prime Minister to visit Seychelles in the last 34 years.
Recent developments in India – Seychelles
1.
Recently India signed four agreements with seychelles during our prime minister’s visit [ march2015] to Seychelles. They are - four agreements: cooperation in hydrography, renewable energy,
infrastructure development and sale of navigation charts and electronic navigational charts.
2.
India will gift a second Dronier aircraft to Seychelles.
3.
India launched a new project called ‘Coastal Surveillance Radar Project’ to strengthen security and
maritime partnership.
4.
India calls Seychelles as a trusted friend and strategic partner.
5.
India announced to grant free visas for three months to the citizens of Seychelles.
6.
India also announced to extend Visa-on-Arrival scheme to Seychelles.
7.
India will be leasing the Assumption Island, one of the 115 islands that constitute the Seychelles.
8.
India also expressed hope that Seychelles will soon be a full partner in the maritime security
cooperation between India, Maldives and Sri Lanka.
9.
India and Seychelles are also working on maritime security, better cooperation in anti-piracy
measures and are engaged in working towards renewable energy
12-03-2015
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Q1 – EXAMINE THE GEOSTRATEGIC SIGNIFICANCE OF INDIAN OCEAN REGION
ESPECIALLY TO INDIA? EXAMINE WHAT ARE THE MARITIME SECURITY
CHALLENGES THAT ARE EMERGING IN INDIAN OCEAN REGION? HOW TO
ADDRESS THESE CHALLENGES? [250 WORDS]
GS PAPER 2 – INDIA AND NEIGHBOURS
Why recently in news?
Recently Our Prime minister is on three-nation tour to Indian Ocean nations [Seychelles, Mauritius
and Sri Lanka]. Close cooperation with Indian Ocean nations is vital for maritime security and
progress of our nation.
After reading this article, you can answer the following questions
1.
What is the geostrategic significance of Indian ocean?
2.
Why Indian ocean plays major role in global trade?
3.
What are the major maritime challenges emerging in Indian ocean region?
4.
String of pearls strategy & Indian ocean region? [ covered in earlier articles]
Geostrategic significance of Indian Ocean
The Indian Ocean was called as the ‘Bowl of the British Empire.’ During the period of
Imperialism, the British could rule the whole world because they were the strongest navy in the
Indian Ocean.
The Indian Ocean is the third largest ocean in the world (after the Pacific and the Atlantic) Indian ocean occupies approximately 20 percent of the Earth’s sea surface, covering a total area of
73.56 million square miles. It is bounded to the north by the Indian subcontinent; to the west and
northwest by the east African coast and Arabian Peninsula, respectively; to the east by Thailand,
the Malay Peninsula, Indonesia, and Australia; and to the south by the oceanic margin with the
Southern Ocean
IOR is inhabited by some 2.49 billion people, representing 35.7 percent of the world’s population
in 2010
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Choke points in Indian Ocean
Choke point is a narrow passage, such as strait, through which ship must pass. Choke points
remain a prominent issue today in the global economy and shipments of goods, part icularly oil.
Travel across the Indian Ocean and passage from its waters into neighboring seas is both
facilitated and potentially constrained by chokepoints. The seven key chokepoints in the IOR are
the Mozambique Channel, the Bab el Mandeb, the Suez Canal, the Strait of Hormuz, the Malacca
Straits, the Sunda Strait, and the Lombok Strait.
Maritime challenges emerging in Indian ocean
Today, the IOR has risen to the forefront of world geopolitics. Propelled by the world’s continuing
reliance on Persian Gulf hydrocarbon r esources, the growing significance of the Indian Ocean’s
sea lanes of communication and chokepoints, as well as the turbulent regional socio-political
environment and the rise of China and India as global powers, the region is increasingly
considered an area of crucial geostrategic importance
Multiple sources of insecurity afflict many of the countries that rim the Indian Ocean. These
challenges include simmering conflicts between Persian Gulf states; terrorism in Pakistan, Sri
Lanka, India, and Saudi Arabia; insurgency in Yemen and Iraq; state failure, civil war, and famine
in Somalia; high-volume trafficking of drugs from Afghanistan via Pakistan and Iran; and piracy
and armed robbery at sea
While piracy has earned the greatest share of headlines in terms of security threats in the Indian
Ocean, other security issues abound. Trafficking of illicit narcotics, weapons, and people within
and via the Indian Ocean will likely continue in the medium- to long term
Maritime terrorism also poses a potentially serious danger to the region
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Oil experts increasingly view the waters off the eastern African coast as one of the world’s last
remaining major petroleum frontiers, stretching from Somalia in the north to Mozambique in the
south.
Why Indian ocean is very important to India
For India, an increasing reliance on imported oil and natural gas to fuel its economic expansion
has led the government to view the Indian Ocean as New Delhi’s backyard, and as a maritime
territory for the Indian navy to dominate and police. India’s dependence on the security of the
Indian Ocean, combined with its need to monitor and, if necessary, check the naval activity of
other powers, means that the country is compelled to reach out deep into the ocean — far beyond its
own littoral — to enable more expansive maritime domain awareness.
India’s big strategic concern in the Indian Ocean is China, and India has been watching with great
suspicion China’s growing presence. This includes not just the “string of pearls” – places along the
littoral where China is arranging for preferential access (including the new ports of Gwadar in
Pakistan and Hambantota in Sri Lanka, both being built with Chinese financial help, and China’s
role in Sittwe, where India is also involved), but also the political links that China is building with
these three countries and with Bangladesh
India imports some 70 percent of its oil and gas, and some two-thirds of this travels through the
Indian Ocean
The Indian Ocean holds 65 per cent of strategic raw minerals and 31 per cent of gas, comprises 30
per cent of the world population and is characterised by fast-growing economies and a large
consumer market. This necessitates a collective desire for security and stability in the region
Q2 – WHAT DO YOU MEAN BY ‘MILANKOVITCH CYCLES’ & ‘ORBITAL
FORCING’? HOW THESE CONCEPTS EXPLAIN THE PHENOMENON OF CLIMATE
CHANGE? [200 WORDS]
GS 3 – ENVIRONMENT & ECOLOGY
Introduction to Milankovitch cycles
Milankovitch cycles refer to long term variations in the orbit of the Earth which result in changes
in climate over periods hundred of thousands of years and are related to ice age cycles.
The shape of the Earth’s orbit [eccentricity], the tilt of its axis [obliquity] and the direction of its
axis [ precession] change over time. Serbian Mathematician, Milutin Milankovitch used these
factors to explain the advance and retreat of the polar ice caps. So these cycles are referred as
‘Milankovitch cycles’
Eccentricity, Obliquity, Precession & Milankovitch cycles
They take account of three variations in the orbit of the earth around the sun.
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1.
The earth’s orbit changes from being nearly circular to slightly elliptical (eccentricity). This cycle
is affected by other planets in the solar system and has a period of around 100,000 years.
2.
The angle of tilt of the earth’s axis changes from 22.1° to 24.5° (obliquity). This cycle has a period
of 41,000 years.
3.
The direction of the tilt of the axis changes (precession) on a cycle of 26,000 years.
These changes influence the length of the seasons and the amount of solar radiation received
by the earth
What is Orbital Forcing?
Orbital forcing is the effect on climate of slow changes in the tilt of the Earth’s axis and shape of
the orbit
These orbital changes change the total amount of sunlight reaching the Earth by up to 25% at mid-latitudes
In this context, the term “forcing” signifies a physical process that affects the Earth’s climate. This
mechanism is believed to be responsible for the timing of the ice age cycles.
Why recently in news?
A new study has found geological evidence that some of the very same forces today caused
climate change 1.4 billion years ago.
Fluctuating climate is a hallmark of Earth, and the present greenhouse effect is by far the only
force affecting today’s climate. On a larger scale the Earth’s climate is also strongly affected byhow the Earth orbits around the sun; this is called orbital forcing of climate change. These changes
happen over thousands of years and they bring ice ages and warming periods.
Today Earth is affected by fluctuations called the Milankovich cycles. There are three different
Milankovich cycles, and they occur each 20,000, 40,000 and 100,000 years. Over the last one
million years these cycles have caused ice ages every 100,000 years, and right now we are in the
middle of a warming period that has so far lasted 11,000 years.
13-03-2015
Q1: WHAT DO YOU MEAN BY ETHICAL LEADERSHIP? WHAT ARE THE
COMPONENTS OF ETHICAL LEADERSHIP? WHY PRACTICE ETHICAL
LEADERSHIP IS CONSIDERED AS GOOD HUMANISTIC TENDENCY IN PUBLIC
LIFE?
GS PAPER-IV Eth ics, Integrity, and Aptitude- ETHICAL LEADERSHIP
Ethical Leadership:
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Ethical behavior, in its simplest terms, is knowing and doing what is right. The difficulty is in
defining “right.” Different individuals, different cultures, and different religions define it in
different ways. The accepted treatment of women and attitudes toward slavery in different cultures
and at different times in history provide prime examples of how what’s “right” can vary.
Ethical leadership really has two elements. First, ethical leaders must act and make decisions
ethically, as must ethical people in general. But, secondly, ethical leaders must
also lead ethically – in the ways they treat people in everyday interaction, in their attitudes, in the
ways they encourage, and in the directions in which they steer their organizations or institutions or
initiatives.
Ethica l leadership is both visible and invisible. The visible part is in the way the leader works
with and treats others, in his behavior in public, in his statements and his actions. The invisible
aspects of ethical leadership lie in the leader’s character, in his decision-making process, in his
mindset, in the set of values and principles on which he draws, and in his courage to make ethical
decisions in tough situations.
Ethical leaders are ethical al l the time, not just when someone’s looking; and they’re
ethical over time, proving again and again that ethics are an integral part of the intellectual and
philosophical framework they use to understand and relate to the world.
Some important components of ethical leadership:
The ability to put aside your ego and personal interests for the sake of the cause you support, the
organization you lead, the needs of the people you serve, and/or the greater good of the community
or the world. The willingness to encourage and take seriously feedback, opinions different from your own, and
challenges to your ideas and proposed actions.
The encouragement of leadership in others.
Making the consideration and discussion of ethics and ethical quest ions and issues part of the
culture of the group, organization, or initiative.
Maintaining and expanding the competence that you owe those who trust you to lead the
organization in the right direction and by the best and most effective methods.
Accepting responsibility and being accountable. Perhaps most important, understanding the power of leadership and using it well – sharing it as
much as possible, never abusing it, and exercising it only when it will benefit the individuals or
organization you work with, the community, or the society.
WHY PRACTICE ETHICAL LEADERSHIP?
Most people would probably agree that leaders ought to be ethical (although there might be a
lot of disagreement about what that means), but there are a number o f good reasons why
ethical leadership makes sense.
Ethical leadership models ethical behavior to the organization and the community. Leaders
are role models. If you want your organization or initiative – and those who work in it – to behave
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ethically, then it’s up to you to model ethical behavior. A leader – and an organization – that has a
reputation for ethical behavior can provide a model for other organizations and the community, as
well.
Ethical leadership builds trust. Leadership – except leadership gained and maintained through
the use of force and intimidation – is based on trust. People will follow an ethical leader because
they know they can trust him to do the right thing as he sees it.
Ethical leadership brings credibility and respect, both for you and the organization. If you’ve
established yourself as an ethical leader, individuals and groups within and outside the
organization, will respect you and your organization for your integrity.
Ethical leadership can lead to collaboration. Other organizations will be much more willing to
collaborate with you if they know that you’ll always deal with them ethically.
Ethical leadership creates a good climate within the organization. If everyone in the
organization knows that power will be shared and not abused, that they’ll be dealt with
respectfully and straightforwardly, that they’ll have the power to do their jobs, and that the
organization as a whole will operate ethically in the community, they’re likely to feel more secure,
to work well together, and to be dedicated to the organization and its work.
If you have opposition, or are strongly supporting a position, ethical leadership allows you to
occupy the moral high ground. This is especially important if your opposition is ethical as well.
You can look very small in comparison if your ethical standards are not up to theirs, discrediting
your cause and alienat ing your allies.
Ethical leadership is s imply the right way to go. Everyone has an obligation to themselves, totheir organization, to the community, and to society to develop a coherent ethical system that seeks
to make the world a better place. Leaders, for the reasons already stated, and because of the
responsibilities of leadership, have a particular obligation in this respect.
Ethical leadership affords self-respect. Because you know that you consistently consider the
ethics of your decisions, actions, and interactions, you can sleep at night and face yourself in the
morning without questioning your own integrity.
Q2: LEADERSHIP- CHARACTER MODEL- WHAT DO YOU MEAN BY GOODLEADERSHIP QUALITIES? HOW THESE QUALITIES MAKES A PERSON ETHICALLY
RESPONSIBLE TO THEIR SUBJECTS?
GS PAPER-IV Eth ics, Integrity, and Aptitude- LEADERSHI P- CHARACTER MODEL
LEADERSHIP CHARACTER MODEL
Leadership is about character – who you are not what you do. And today when leadership is
needed at all organizational levels, it is critical that leadership character be developed and
enhanced in all individuals. It is those with leadership character who will contribute to others in powerful ways and help their organizations achieve bottom line results and long-lasting success.
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But today’s leadership is hard work. Even those accustomed to power and responsibility will have
to lead in ways that support and bring forth leadership from all employees. And those who have
not yet accepted the challenge of leadership will have to assume a higher level of responsibility for
their company’s success. Those who succeed at leadership, whatever their level, will have
developed strong leadership character.
As an aid to leadership development, this guide outlines the core qualities that create the kind of
underlying character all leaders need. Notice that integrity is the foundation of
leadership. Without integrity, leadership behavior rings hollow. Also notice that the leadership
scale is balanced between the qualities of respect and responsibility. When there is respect in an
organization, everyone feels a sense of partnership, equality and fairness. When responsibility is
prevalent, each person is willing to take initiative and act for the good of the entire organization.
Integrity
Character is grounded in integrity. Leaders must be honest, credible and completely trustworthy. A
person with integrity doesn’t twist facts for personal advantage, is willing to stand up for what is
right, keeps all promises, and can be counted on to always tell the truth. A person with integrity
makes sound decisions, especially when faced with moments of indecision, temptation and
conflict. Without integrity, no leader can be successful.
Respect
Respect helps create a culture of partnership and teamwork. Leaders who demonstrate respect
show an unconditional high regard for others, acknowledging their values and people, regardless
of their behaviors. Respect comes through in all situations, even during times of conflict orcriticism. Leaders must develop and refine the following qualities of respect: Empathy, Lack of
Blame, Humility, and Emotional Mastery.
Empathy
Leaders earn trust by relating to everyone in the organization with understanding. Empathetic
leaders create strong bonds and are seen as less political. A person who demonstrates the core
quality of empathy:
Understands others’ points of view including those that are different from his or her own.
Shows genuine concern for others. Listens with understanding.
Exhibits respect even when he or she has nothing to gain from the relationship.
Lack of Blame
Good leaders reflect honestly on their own behavior and can admit their mistakes. They don’t
become defensive and blame others when things go wrong. Rather than spending time
assigning blame, leaders spend time fixing problems. A person who demonstrates the core
quality of lack of blame:
Admits fault when appropriate.
Doesn’t look for a scapegoat in a crisis.
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Spends time fixing problems, not assigning blame.
Avoids “us vs. them” thinking.
Humility
Leaders with humility shun pompous and arrogant behavior. They realize that we are all
fallible – a combination of strengths and weaknesses. People who demonstrate humility don’t
think less of themselves; they just think more of others. A person with the core quality of
humility:
Listens to others with an open mind.
Doesn’t brag or name-drop.
Clearly sees and admits his or her limitations and failings.
Shows vulnerability without fear.
Emotional Mastery
More than 2000 years ago, Epictetus said, “It is not the facts and events that upset man but the
view he takes of them.” Leaders who have developed emotional mastery recognize that.
Controlling anger may be the most important aspect of emotional mastery for those in powerful
positions. Outbursts of anger can quickly destroy a sense of organizational equity and partnership.
A person with the core quality of emotional mastery:
Says what he or she thinks but never berates others.
Stays calm even in cr isis s ituations.
Doesn’t let anxiety interfere with public speaking or other critical tasks.
Reflects before reacting and consciously chooses an appropriate response. Responsibility
Great leaders accept full responsibility for personal success and for the success of projects, teams,
and the entire organization. Becoming responsible requires developing and refining the following
core qualities of Accountability, Self Confidence, Courage, and Focus on the Whole.
Accountability
Leaders who are accountable do what needs to be done, no matter where in the organization they
have to go. They never say, “It’s not my job.” They hold themselves 100% accountable for making
relationships work. They don’t say, “Well, I’ll go halfway if they will.” Accountable leaders ask,“What can I do?” not, “Why don’t they…” A person with the core quality of accountability:
Takes the initiative to get things done.
Is not afraid to hold others accountable.
Crosses departmental boundaries to help with important projects.
Self-Confidence
Self-confidence allows people to feel that they are equal to others, even when others are in
positions of much greater formal power. Self-confident leaders recognize the value of building that
same self-confidence in others throughout their organizations and aren’t threatened by confident
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followers. This widespread self-confidence builds a sense of partnership and helps to maximize
energy and efforts at all levels. A person with the core quality of self-confidence:
Has a self-assured bearing.
Exhibits flexibility and a willingness to change.
Gives credit to others easily.
Tells the truth without fear.
Courage
Leaders with courage assert themselves and take risks. They ask forgiveness rather than
permission and try even though they might fail. These leaders risk conflict to air their ideas but
balance that with respect, which makes constructive conflict possible. A person with the core
quality of courage:
Champions new or unpopular ideas.
Talks to others, not about them, when there is a problem.
Accepts feedback and truly hears what others say.
Takes the ball and runs with it, even when there are obstacles.
Focus on the whole
Leaders who focus on the big picture think in terms of what’s good for the entire organization, not
in terms of what’s good for their own team or department. They have an understanding of and
enthusiasm for the business as well as an understanding of their industry. They consider the
implications of entire projects and commit to outcomes that work best for their customers rather
than just focusing on their piece of the project a person who demonstrates the core quality of focuson the whole:
Realizes he or she represents the company to its customers.
Understands how work in individual areas affects the entire project and the whole organization.
Gathers information from all stakeholders when making decisions.
Shares information throughout the company and understands the value of a knowledgeable
workforce.
14-03-2015
Q1: PARLIAMENT RECENTLY PASSED INSURANCE LAWS(AMENDMENT) BILL
TO HIKE THE FDI CAP IN INSURANCE FROM 26% TO 49%. WHAT ARE THE
LIKELY BENEFITS OF FDI IN INSURANCE FOR THE INDIAN ECONOMY? WHAT
ARE THE CHALLENGES THAT STILL REMAIN TO INCREASE THE INSURANCE
PENETRATION IN THE COUNTRY?
GS APER-III ECONOMY- FDI- INSURANCE
Introduction:
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Government of India announced in its budget for 2014 that FDI limit in Insurance will be hiked to
49% from the current 26%.
The 49% is a composite cap which will include FDI, FII, QFI and other foreign investments.
Recently Parliament passed an Insurance Laws(amendment)bill to hike the FDI from 26% to 49%.
What are the likely benefits of the raising of the cap?
Access to insurance is one of the aspects of financial inclusion. But India is one of the least
insured countries where only 6% of population has any kind of insurance cover. Only 4.4% have
life insurance cover and 5% have any kind of health insurance cover. As public sector insurance
companies have failed to provide widespread insurance coverage, hence there is a need for private
companies to step in.
More insurance coverage will mean that the savings rate in the economy will go up substantially.
This will mean that more funds will be available for investment in building infrastructure projects
like roads, hospitals, schools etc.
According to estimates, the sector needs Rs. 50,000 crore over the next 5 years to break-even. The
recent FDI limit hike will bring in the required capital.
Increasing the FDI in insurance will mean that more private companies will come in to set-up
shop in India. This will in turn lead to innovation, better products and better deal for the
consumers.
Challenges that need to be addressed to increase insurance penetration:
Better marketing of products and availability of skilled professionals who could drive the industry
to higher growth are also needed to increase insurance penetration. Initiatives like sale ofinsurance products on Common Service Centre (CSC) platform need to be emulated.
Indian insurance market has enormous potential which needs to be tapped. Insurance needs more
competitive and innovative products so that every household and individual is insured against bad
times.
Hence the hike in the FDI cap should be supplemented with other reforms like skill development
of the insurance professionals and better marketing so as to make it really effective in increasing
insurance penetration in the country.
According to The Insurance Laws (Amendment) Bill, -The cap on foreign investment will include all forms of foreign direct investment (FDI),
foreign institutional investment (FII) and foreign portfolio investment.
-The Bill also proposes Indian management control of companies in the sector.
-Insurers can approach the Securities Appellate Tribunal for redressal of Grievances against
the IRDA.
-IRDA will have to bring out fresh norms for agent commission and caps thereof.
Q2: LEADERSHIP IS ABOUT CHARACTER – WHO YOU ARE NOT WHAT YOU DO.LEADING WITH INTEGRITY IS ONE OF THE GREAT CHALLENGES OF
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LEADERSHIP. EXPLAIN WHAT DO YOU MEAN BY “INTEGRITY”? DISCUSS HOW
INTEGRITY PLAYS A TOP ATTRIBUTES OF A GREAT LEADER.
GS PAPER-IV ETHICS IN HUMAN VALUES- INTEGRITY,LEADERSHIP
The word integrity comes from the same Latin root as “integer,”or whole number. Like a whole
number, a person of integrity is undivided and complete. This means that the ethical person acts
according to his/her beliefs, not according to expediency.He/She is also consistent. There is no
difference in the way he/she makes decisions from situation to situation, his/her principles don’t
vary at work or at home, in public or alone.
People without integrity are called “hypocrites” or “two-faced.”
Abraham Lincoln said: “Great leadership is a product of great character. And that is why
character matters.”
Integrity is one of the top attributes of a great leader. It is a concept of consistency of actions,
values, methods, measures, principles, expectations and outcomes. It connotes a deep
commitment to do the right thing for the right reason, regardless of the circumstances. People who
live with integrity are incorruptible and incapable of breaking the trust of those who have confided
in them. Every human is born with a conscience and therefore the ability to know right from
wrong. Choosing the right, regardless of the consequence, is the hallmark of integrity.
There are four components to integrity: personal convictions (what we believe), stated values
(what we say we believe), operational values (what we actually do), and ethical principles (what
we should do). Integrity is a quality of character demonstrated by the moral commitment and
courage necessary to maintain consistency between what we believe, what we say, what we do,
and what we are morally obliged to do.
A critical aspect of integrity, then, is the idea of a moral wholeness, or oneness, demonstrated by a
consistency of thoughts, words, deeds, and duties.
A venerated diplomat, was asked how he was able to maintain his integrity in the world of
international relations where duplicity, deception, and outright lying were so common. He
answered that integrity requires one to live according to principle. He had no trouble doing that, he
said, because in politics the primary principle is expediency. This verbal manipulation won’t
do.People of integrity are trustworthy because they base their decisions on moral and ethical
principles , not on expediency. They elevate convictions about right and wrong over self-interest,
and they resist the impulse to recast their principles simply to achieve a result they want.
Though living up to one’s personal values is an important aspect of integrity, it is not enough. If it
were, some pretty disreputable people could qualify. A person of integrity must also honor
universal moral values. Integrity as we have come to use the term, has a moral dimension, that
includes, but goes beyond, being true to oneself. When used in a moral sense, integrity has an
objective dimension that requires us to have values worthy of a person of good character.
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Character strengths are an important contributor to leader effectiveness. As leaders move up the
organizational ladder, they may become unaware of the repercussions of the outward display of
their character. This is one reason why self-awareness is so important to effective leadership.
Leadership development initiatives are important for all leaders at all the time. Character and
integrity are more often demonstrated by the way we handle day-to-day relationship questions than
by heroic acts of courage.
Q3: WHAT ARE THE SIX PILLARS OF CHARACTER ?EXPLAIN EACH
CHARACTERS? HOW THESE EACH CHARACTER PLAYES IMPORTANT ROLE TO
MAKE ETHICAL DECISIONS IN PUBLIC LIFE?
GS PAPER-IV Ethi cs, Integrity, and Aptitude- FOUNDATI ONAL VALUES OF CIV I L
SERVICE
The Six Pillars of Character - Tru stwor th iness. Respect. Responsibil ity. Fai rness. Caring.
Citizenship.
The Six Pillars of Character are ethical values to guide our choices. The standards of conduct that
arise out of those values constitute the ground rules of ethics, and therefore of ethical decision-
making.
The Six Pillars act as a multi-level filter through which to process decisions. So, being trustworthy
is not enough — we must also be caring. Adhering to the letter of the law is not enough — we
must accept responsibility for our action or inaction. In short, the Six Pillars can dramatically improve the ethical quality of our decisions , and
thus our character and lives.
1. TRUSTWORTHINESS
Trustworthiness is the most complicated of the six core ethical values and concerns a variety of
qualities like honesty, integrity, reliability and loyalty.
Honesty
There is no more fundamental ethical value than honesty. We associate honesty with people of
honor, and we admire and rely on those who are honest. But honesty is a broader concept than
many may realize. It involves both communications and conduct.
Honesty in communications is expressing the truth as best we know it and not conveying it in a
way likely to mislead or deceive. There are three dimensions:
Truthfulness . Truthfulness is presenting the facts to the best of our knowledge. Intent is the
crucial distinction between truthfulness and truth itself. Being wrong is not the same thing as
lying, although honest mistakes can still damage trust insofar as they may show sloppy judgment.
Sincerity - Sincerity is genuineness, being without trickery or duplicity. It precludes all acts,
including half-truths, out-of-context statements, and even silence, that are intended to create
beliefs or leave impressions that are untrue or misleading.
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Integrity
Invariably, people who are highly trusted are believed to have unshakable integrity. The term is
used in many different ways. In some contexts, it is a synonym for ethics or character. In this
sense, it embraces all the other ethical principles (as when we say that a person or company has
great integrity).
Integrity is also frequently used interchangeably with honesty. The problem is that if we use the
term in these ways we deprive the concept of its unique meaning. Integrity needs and deserves its
very own domain.
Rel iabi lit y (Promise-Keeping)
When we make promises or other commitments that create a legitimate basis for another person to
rely upon us, we undertake special moral duties. We accept the responsibility of making all
reasonable efforts to fulfill our commitments. Because promise-keeping is such an important
aspect of trustworthiness, it is important to:
Avoid bad-fai th excuses - Interpret your promises fairly and honestly. Don’t try to
rationalize noncompliance.
Avoid unwise commitments - Before making a promise consider carefully whether
you are willing and likely to keep it. Think about unknown or future events that could make
it difficult, undesirable or impossible. Sometimes, all we can promise is to do our best.
Avoid unclear commitments. Be sure that, when you make a promise, the other
person understands what you are committing to do.
Loyalty Loyalty is a responsibility to promote the interests of certain people, organizations or affiliations.
This duty goes beyond the normal obligation we all share to care for others.
Prioriti zing loyalties- So many individuals and groups make loyalty claims on us that we must
rank our loyalty obligations in some rational fashion. For example, it’s perfectly reasonable, and
ethical, to look out for the interests of our children, parents and spouses even if we have to
subordinate our obligations to other children, neighbors or co-workers in doing so.
Safeguarding confidential inf ormation - Loyalty requires us to keep some information
confidential. When keeping a secret breaks the law or threatens others, however, we may have aresponsibility to “blow the whistle.”
Avoiding conf li cting interest- Employees and public servants have a duty to make all professional
decisions on merit, unimpeded by conflicting personal interests. They owe ultimate loyalty to the
public.
2. RESPECT
People are not things, and everyone has a right to be treated with dignity. We certainly have no
ethical duty to hold all people in high esteem, but we should treat everyone with respect,
regardless of who they are and what they have done. We have a responsibility to be the best we
can be in all situations, even when dealing with unpleasant people.
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The Golden Rule — do unto others as you would have them do unto you — nicely illustrates
the Pillar of respect. Respect prohibits violence, humiliation, manipulation and exploitation. It
reflects notions such as civility, courtesy, decency, dignity, autonomy, tolerance and acceptance.
3. RESPONSIBILITY
Life is full of choices. Being responsible means being in charge of our choices and, thus, our lives.
It means being accountable for what we do and who we are. It also means recognizing that our
actions matter and we are morally on the hook for the consequences. Our capacity to reason and
our freedom to choose make us morally autonomous and, therefore, answerable for whether we
honor or degrade the ethical principles that give life meaning and purpose.
Ethical people show responsibility by being accountable, pursuing excellence and exercising self-
restraint. They exhibit the ability to respond to expectations.
Accountability – An accountable person is not a victim and doesn’t shift blame or claim credit for
the work of others. He considers the likely consequences of his behavior and associations. He
recognizes the common complicity in the triumph of evil when nothing is done to stop it. He leads
by example.
Pursuit of Excellence – The pursuit of excellence has an ethical dimension when others rely upon
our knowledge, ability or willingness to perform tasks safely and effectively.
Diligence - It is hardly unethical to make mistakes or to be less than “excellent,” but there is a
moral obligation to do one’s best, to be diligent, reliable, careful, prepared and informed.
Perseverance- Responsible people finish what they start, overcoming rather than surrendering to
obstacles. They avoid excuses such as, “That’s just the way I am,” or “It’s not my job,” or “It waslegal.”
Continuous Impr ovement - Responsible people always look for ways to do their work better.
Self-Restraint- Responsible people exercise self-control, restraining passions and appetites (such
as lust, hatred, gluttony, greed and fear) for the sake of longer-term vision and better judgment.
They delay gratification if necessary and never feel it’s necessary to “win at any cost.” They
realize they are as they choose to be, every day.
4. FAIRNESS
Fairness is another tricky concept, probably more subject to legitimate debate and interpretationthan any other ethical value. Disagreeing parties tend to maintain that there is only one fair
position (their own, naturally). But essentially fairness implies adherence to a balanced standard of
justice without relevance to one’s own feelings or inclinations.
Process – Process is crucial in settling disputes, both to reach the fairest results and to minimize
complaints. A fair person scrupulously employs open and impartial processes for gathering and
evaluating information necessary to make decisions. Fair people do not wait for the truth to come
to them; they seek out relevant information and conflicting perspectives before making important
judgments.
Impartiali ty – Decisions should be made without favoritism or prejudice.
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Equity – An individual, company or society should correct mistakes, promptly and voluntarily. It
is improper to take advantage of the weakness or ignorance of others.
5. CARING
If you existed alone in the universe, there would be no need for ethics and your heart could be a
cold, hard stone. Caring is the heart of ethics, and ethical decision-making. It is scarcely
possible to be truly ethical and yet unconcerned with the welfare of others. That is because ethics
is ultimate ly about good relations with other people.
The highest form of caring is the honest expression of benevolence, or altruism. This is not to be
confused with strategic charity. Gifts to charities to advance personal interests are a fraud. That is,
they aren’t gifts at all. They’re investments or tax write-offs.
6. CITIZENSHIP
Citizenship includes civic virtues and duties that prescribe how we ought to behave as part of a
community. The good citizen knows the laws and obeys them, yes, but that’s not all. He/She
volunteers and stays informed on the issues of the day, the better to execute his/her duties and
privileges as a member of a self-governing democratic society. he/She does more than his/her
“fair” share to make society work, now and for future generations. Such a commitment to the
public sphere can have many expressions, such as conserving resources, recycling, using public
transportation and cleaning up litter. The good citizen gives more than he/she takes.