PUBLIC POLICY NOTES

Unit-1
What is Public Policy?
Public Policy is a document that contains a broad outline as well as a detailed
description of the formulation as well as the implementation of various
government programs and plans that are taken out for the goal/objective of
public benefit.
• declaration of ideas and the goals of Govt.
• A declaration of the action path for the next few years of the government
agencies
• A declaration of social values to fulfil the poll promises
• A declaration of the government priorities for economic growth and
development
• A declaration of the government agenda

What is the importance of Public policy?

Public policy plays a crucial role in society and governance. Some of the key
points highlighting its importance are as follows:
1. Addressing societal challenges: Public policy provides a framework for
tackling complex societal issues, such as poverty, inequality, healthcare,
education, climate change, and public safety. It enables governments to
identify and respond to these challenges through systematic and organized
approaches.
2. Promoting the public interest: Public policy serves as a tool to promote
the collective well-being and interests of the general public. It ensures that
decision-making processes consider the broader societal impacts, rather
than just individual or special interest concerns.
3. Guiding resource allocation: Public policy determines how resources,
such as financial, human, and natural resources, are allocated and utilized.
It helps prioritize funding and efforts towards critical areas and initiatives
that align with the government's objectives and public needs.
4. Regulating and balancing interests: Public policy establishes rules,
regulations, and standards that govern various sectors of society. It seeks to
strike a balance between different interests, such as economic growth,

 environmental protection, consumer rights, and public safety, ensuring

fairness and preventing exploitation.
5. Enhancing accountability and transparency: Public policy promotes
accountability among public officials and institutions. It outlines the
responsibilities, obligations, and ethical standards that government actors
should adhere to.
6. Providing stability and predictability: Clear policies and regulations
create a favorable environment for investment, economic growth, and social
development, fostering stability and confidence in the society.

Types of Public policy

1. Substantive public policy - Substantive public policies address specific
social issues or problems and aim to bring about general welfare in society.
These policies often focus on achieving specific outcomes or goals, such as
reducing poverty, improving healthcare access, or promoting renewable
energy adoption.

2. Regulatory public policy - Regulatory policies involve the establishment

of rules, regulations, and standards to govern various sectors and activities
in society. They aim to ensure compliance, maintain order, and protect
public interest. Examples include environmental regulations, financial
regulations, consumer protection laws, and occupational health and safety
regulations.
3. Restrictive public policy - Restrictive policies are designed to limit or
control certain behaviors, practices, or activities in society. They aim to
mitigate potential harm, protect public safety, or maintain social order.
Examples include regulations on alcohol consumption, tobacco use, drug
control, firearms, or gambling.
4. Distributive Public Policy - Distributive policies involve the allocation
and distribution of resources, benefits, or services among different groups
or regions in society. These policies aim to address social and economic
inequalities, promote fairness, and reduce disparities. Examples include
social welfare programs, income redistribution policies, regional
development initiatives, and vaccination programs.
5. Redistributive public policy - Redistributive public policy refers to
policies that aim to reduce social and economic inequalities by allocating
resources, benefits, or opportunities more equitably among different
individuals or groups in society. The goal is to address disparities and
promote fairness by redirecting resources from those who have more to
those who have less.
6. Constituent Public Policy - Constituent policies are those that directly
impact the fundamental rights and responsibilities of citizens within a
democratic society. They include policies related to civil rights, freedom of
speech, voting rights, privacy protection, and access to justice. Constituent
policies safeguard and uphold democratic principles and individual
liberties.Take for example the NABARD that facilitates rural credit
policies. Another example is the EXIM Bank which implements policies
to increase the import-export industry in our country.

Steps in Policy-making process

1. Identification of Problem: This step involves recognizing and defining a
societal issue or problem that requires attention from the government. It

 involves research, data analysis, and consultation to understand the nature

and scope of the problem.
2. Agenda Setting: Agenda setting involves bringing the identified problem
to the attention of policymakers and the public. It involves prioritizing the
issue and placing it on the policy agenda for consideration and action.
3. Formulation of Policy: In this step, policymakers develop potential
solutions and policy options to address the identified problem. It involves
analyzing various approaches, considering costs, benefits, and feasibility,
and consulting with experts and stakeholders.
4. Policy Legitimation: Policy legitimation refers to the process of gaining
support and approval for the proposed policy. It involves debates,
negotiations, and decision-making within legislative bodies, executive
branches, or other relevant institutions. The policy is officially authorized
and adopted during this step.
5. Implementation of Policy: Once a policy is legitimized, it needs to be
implemented effectively. This step involves putting the policy into action,
allocating resources, establishing administrative structures, and enforcing
the policy. Implementation often requires coordination among different
government agencies, collaboration with non-governmental organizations,
and public engagement.
6. Evaluation of Policy: Policy evaluation is the final step in the process. It
involves assessing the effectiveness, efficiency, and impact of the policy
over time. Policymakers collect data, monitor progress, and analyze
outcomes to determine if the policy is achieving its intended goals.
Evaluation findings help inform potential policy adjustments, revisions, or
termination.

What are the reasons for Policy evaluation?

• Measure the government's results and resources required to achieve them
• Promote evidence-informed policymaking
• Improve transparency of the planning and allocation of public resources
• Improve the quality of public services
• Become a more responsive, performance-oriented government
• (Re-)formulate policies
• Support sound budgetary governance
• Improve trust in public institutions

• Improve policies’ value-for-money

Types of policy evaluation

1. Process evaluation - Process evaluation focuses on examining the
implementation and execution of a policy or program. It assesses how well
the policy was implemented, the adherence to the intended procedures and
guidelines, and the efficiency of the implementation process. Process
evaluation typically involves monitoring the activities, outputs, and
intermediate outcomes of the policy to understand the implementation
process and identify areas for improvement.
2. Impact Evaluation - Impact evaluation aims to assess the effectiveness and
impact of a policy or program on the intended outcomes or target
population. It examines the causal relationship between the policy and the
observed changes or impacts. Impact evaluation often involves comparing
outcomes between a group exposed to the policy (treatment group) and a
group not exposed to the policy (control group) to determine the policy's
attributable effects. It helps policymakers understand the extent to which
the policy has achieved its desired outcomes.
3. Comprehensive Evaluation - Comprehensive evaluation combines
elements of process and impact evaluation. It examines both the
implementation process and the impact of a policy or program. It provides a
holistic assessment of the policy, including its strengths, weaknesses,
unintended consequences, and recommendations for improvement.

Policy evaluation example

How public policy and government influence markets for businesses?

Public policy can have a significant impact on businesses in various ways. Here
are some key ways in which public policy influences businesses:
1. Policy as a Market Catalyst: Public policy can act as a catalyst for market
opportunities and growth. Policies that support innovation,
entrepreneurship, and market competition can create a conducive
environment for businesses to thrive. For example, policies promoting
renewable energy can stimulate the growth of clean energy businesses,
while policies promoting digital infrastructure can spur the development of
technology-driven industries.
2. Political Stability and Political Culture: A stable political environment
and a favorable political culture are crucial for businesses. Public policies
that promote political stability, rule of law, protection of property rights,
and a transparent regulatory framework instill confidence among businesses
and attract investments. On the other hand, political instability, corruption,
and inconsistent policy decisions can hamper business growth and
discourage investments.
3. Government Taxation and Spending: Taxation policies significantly
impact businesses. Tax rates, deductions, credits, and incentives can
influence business profitability, investment decisions, and competitiveness.
Government spending, particularly in infrastructure development and
public projects, can create business opportunities, increase market demand,
and stimulate economic growth.
4. Setting Interest Rates: Public policy plays a crucial role in setting interest
rates through central banks. Interest rates affect borrowing costs for
businesses, influencing their investment decisions, access to credit, and
overall financial health. Lower interest rates can encourage business
investments and expansion, while higher interest rates can constrain
borrowing and business growth.
5. Regulations and Permits: Public policies establish regulations and permit
requirements that businesses must comply with. These regulations cover
areas such as product safety, environmental protection, labor practices,
licensing, and permits. Compliance with regulations can impact business
operations, costs, and market access. Policies that promote streamlined
regulations, transparency, and efficient permit processes can reduce barriers
and facilitate business growth.

Tactics used by businesses to influence government regarding a policy

•Business Lobbying
–Direct lobbying: Involves direct interaction with key decision-makers and
politicians, for example, in the form of written letters, phone calls, and in-
person meetings.
–Indirect lobbying: Involves getting your message into the media and gaining
public support that will influence decision-makers.

Unit-2
What is Model?
A model is constructed to portray a simplified representation of the real-world
situations. To implement a programme aimed at the betterment of the lives of
the citizens, first a model or design is created.

What is the use of public policy models?

Models are valuable tools in the realm of public policy for various purposes:
1. Simplifying and Clarifying Thinking: Models help simplify complex
policy issues, providing a structured framework for understanding and
analyzing the problem at hand.
2. Identifying Important Aspects: Models aid in identifying the key factors
and variables that influence policy outcomes. They help policymakers
prioritize and focus on the most relevant aspects of the problem, ensuring
that policy interventions target the critical areas for effective change.
3. Communicating Essential Features: Models can visually represent the
interactions, trade-offs, and potential impacts of policies, facilitating
discussions and understanding among different actors.
4. Explanation and Prediction: They also allow policymakers to predict
potential consequences and outcomes of policy actions, helping to inform
decision-making and anticipate potential challenges or unintended effects.
5. Assessing Time Frames and Resources: Models assist in assessing the
time frames and resources required for policy implementation. By mapping
out the steps, activities, and resource allocation needed, models help
policymakers plan and allocate resources effectively, ensuring that policy
goals can be achieved within the available time and budget constraints.

 Types of Models
1. Systems Model: The systems model sees politics and policy as a big,
interconnected system. It looks at how different parts, like people,
institutions, and factors, all influence each other and affect the outcome of
policies.
2. Institutional Model: The institutional model focuses on the rules and
procedures of political institutions. It looks at how these rules shape
decision-making and how different parts of the government work together
to make policies.
3. Group Model: The group model focuses on interest groups and how they
influence policies. Interest groups are like clubs or organizations that
represent specific interests, and they use their power and resources to push
for policies that benefit their members.
4. Elite-Mass Model: The elite-mass model looks at the relationship between
political leaders and the general public. It says that a small group of
powerful people (the elites) make most of the decisions, and they may or
may not listen to the concerns and needs of the larger population (the
masses).
5. Rationalism Model: The rational model says that decision-makers are
logical and make choices based on what they think is best. They weigh the
pros and cons, look at the available information, and make decisions that
will help them achieve their goals.
6. Incrementalism Model: The incremental model suggests that policies
change slowly and in small steps. Instead of making big, sweeping changes,
policymakers make small adjustments over time, often building on existing
policies or making minor modifications.

Institutions for Development

• NITI Aayog (National Institution for Transforming India): NITI Aayog is
a policy think tank established by the Government of India in 2015 to replace
the Planning Commission. Its objective is to provide strategic and policy
inputs to the central and state governments in various areas, including
economic planning, sustainable development, and social welfare. NITI
Aayog aims to foster cooperative federalism and promote innovation and
entrepreneurship in India.

 • Planning Commission of India: The Planning Commission was a

government body that existed from 1950 to 2014. It was responsible for
formulating five-year plans and allocating resources for economic and social
development in India. The Planning Commission played a significant role in
setting development priorities, coordinating between the central and state
governments, and promoting equitable growth in different sectors of the
economy.
• RBI (Reserve Bank of India): The Reserve Bank of India is India's central
banking institution. It is responsible for the regulation and supervision of the
country's banking system, monetary policy formulation, issuance of currency,
and management of foreign exchange reserves. The RBI aims to maintain
price stability, promote economic growth, and ensure the stability and
integrity of the financial system in India.
• NABARD (National Bank for Agriculture and Rural Development):
NABARD is a development bank established by the Government of India to
promote sustainable agriculture and rural development. It provides financial
and technical support to agriculture and rural sectors through various
schemes, including credit facilities, rural infrastructure development,
agricultural research, and capacity building.
• NSDC (National Skill Development Corporation): NSDC is a public-
private partnership organization established to foster skill development
initiatives in India. It works towards bridging the skill gap in various sectors
by promoting skill training, creating industry-relevant training programs, and
facilitating the establishment of skill development centers across the country.
• ICAR (Indian Council of Agricultural Research): ICAR is an autonomous
organization under the Ministry of Agriculture and Farmers Welfare in India.
It serves as the apex body for coordinating, guiding, and managing
agricultural research and education in the country. ICAR conducts research,
develops technologies, and provides technical assistance to improve
agricultural productivity, enhance rural livelihoods, and ensure food security
in India.

Why the Planning Commission of India (5 year plans) was replaced by

NITI Aayog?
• Limitations of Centralized Planning: The feeling was that centralized
planning, which followed a uniform approach for the entire country, was not

 suitable for a diverse and large nation like India. The one-size-fits-all
approach was seen as inadequate in addressing the unique needs and
complexities of different states and regions.
• Political Bias in Resource Allocation: Since the Planning Commission was
controlled by the Central government, there were concerns that funds were
often allocated based on political considerations rather than the actual needs
of the states. Opposition-ruled states were perceived to be disadvantaged in
terms of resource allocation.
• Greater State Autonomy: There was a growing recognition of the need for
states to have more control over their own expenditure planning. The top-
down approach of centralized planning was seen as intrusive, and states were
believed to have a better understanding of their requirements and priorities.
• Imposition of Decisions: The Planning Commission was criticized for
imposing its decisions and directives on states without sufficient consultation
or consideration of their local conditions and preferences. There was a desire
for a more collaborative and participatory approach in the planning process.

Planning Commission vs NITI Aayog

 Lok Sabha Rajya Sabha

Compositi Lower House of Upper House of Parliament
on Parliament
Members 552 members 250 members (elected and
(maximum strength) nominated)
Method of Directly elected by Indirectly elected by members of
Election the people of India State Assemblies and Union
Territories
Term 5 years 6 years
Represent Represents the Represents the states and Union
ation people of India and Territories of India
their constituencies
Powers Has the power to Reviews and suggests
initiate and pass amendments to bills passed by
bills, approve the Lok Sabha, represents states'
budget, and control interests, and participates in the
the executive legislative process

Inter government relationships - Constitution has designed the relationship in

such a way that it is well integrated to an extent that they cannot work
individually
Example: FCI
The Food Corporation of India is one of the largest corporations started by the
government of India and likely one of the largest supply chain management in
India.
• Initially headquartered in Chennai, it was moved to New Delhi.
• The purchases are made as per the Minimum Support Price

Objectives:
- Proper price support for to protect the interests of poor farmers
- Effective distribution of foodgrains through a Public Distribution Systems
(PDS)
-Maintenance of operational and buffer stocks
-Regulation of market price for foodgrains














-affordable prices

Benefits of inter-government relationships:

• Less frictions between different levels of government \
• Effectiveness of Public Policy
• Free flow of communication
• Higher impact at grassroots levels
• Democracy and good governance

Union List:
- This list contains subjects like defence, foreign affairs, currency, union duties,
communication, etc.
- It originally had 97 subjects. Now, it has 100 subjects
- signifies the strong centre
- dominance of Union List over State List is secured by the Constitution of
India as in any conflict between the two or overlapping, the Union List prevails
-Law made by the Parliament on a subject of the Union List can confer powers
and impose duties on a state

State List:
-This list include education, forests, protection of wild animals and birds,
weights and measures, Administration of justice, constitution and organization
of all courts except supreme court and high court
-It has 61 subjects. Earlier, it had 66 items.
-Parliament has the power to legislate concerning a subject enumerated in state
list in national interest

Concurrent List:
-The matters on which uniformity of legislation throughout the country is
desirable but not essential - criminal law and procedure, marriage, contracts,
trust, social insurance etc.
-It has 52 subjects enumerated under it (Initially 47)
-Both the Union and the State Governments can legislate - in case of any
conflict, the law made by the Central Government prevails
-Concept borrowed from the Constitution of Australia


























Interstate council:
-Provision provided by constitution to ensure healthy relationships between
centre and state governments
-Acts as a platform for discussing polices aiming at the resolution of the issues
of national importance

Objectives:
A. Inquiring into and advising upon disputes between states or centre and state
B. Providing recommendations for the issues

Members:
• The Prime Minister is the chairman of the Council
• Members include the Chief Ministers of all states and UTs with legislative
assemblies.
• Administrators of other UTs.
• Six Ministers of Cabinet rank in the Centre’s Council of Ministers, nominated
by the Prime Minister, are also its members.

Zonal Councils:
- Idea given by JLN
-Entire country is divided into five zones, each having its own zonal council
-objectives:
• To provide a forum where states can resolve the inter- states disputes
• Create a health inter-state environment
• Foster balanced regional development
• Harness healthy inter-state relations
• To overcome the centrifugal forces that emerged in the wake of linguistic
reorganization of states

Significance of political parties:

-symbolizes democracy, liberty and rights of the people
-Transform aspirations of the people into public policy
-Gathers information from the Government and also provide information to
government on various issues
- accordingly PP are formulated and modified









































 Role of Political parties:
-Garner peoples' support in the conducting the affairs of the government in the
legitimate manner.
-Give an institutional and legal voice to people
-Act as a bridge between the government and the people
-Nurture and sustain democracy
-Act as a whistle-blower in case of anti-people practices
-Enable the government to hear the grievances of the people

Measures of economic development

•Real income per head – GDP per capita
•Human resource development
•Levels of literacy and education standards
•Levels of healthcare e.g. number of doctors per 1000 population
•Quality and availability of housing
•Levels of environmental standards
•Life expectancy.

What is human Development Index (HDI)?

•The Human Development Index (HDI) is a summary measure of average
achievement in key dimensions of human development: a long and healthy life,
being knowledgeable and having a decent standard of living.
•The health dimension is assessed by life expectancy at birth.
•The education dimension is measured by the mean of years of schooling for
adults aged 25 years and more and expected years of schooling for children of
school-entering age.
•The standard of living dimension is measured by gross national income per
capita.

What is Public-Private Partnership (PPP)?

Public-Private Partnership (PPP) is a collaborative arrangement between the
public sector (government) and the private sector (businesses or non-profit
organizations) to jointly undertake a project or provide a public service. It
involves a sharing of resources, expertise, and risks between the two sectors.








Why PPP’s?
PPPs, or Public-Private Partnerships, are used because they bring together the
government and private companies to work together on projects or services.
This collaboration is helpful for a few reasons:
• More Resources: By teaming up with private companies, the government
can access extra money, skills, and technology that they might not have on
their own. This means they can do more and achieve better results.
• Sharing Responsibilities: In PPPs, the government and private companies
share responsibilities and risks. This helps to spread the workload and make
sure that everyone is accountable for their part. It also encourages better
decision-making and problem-solving.
• Efficiency and Innovation: Private companies are often more efficient and
innovative in how they do things. By partnering with them, the government
can benefit from their fresh ideas, expertise, and experience. This can lead to
better services, cost savings, and improved outcomes.
• Flexibility and Adaptability: PPPs allow for more flexibility in project
design and implementation. Private companies bring their market-driven
approaches and can adapt quickly to changes, making projects more
responsive to the needs of the public.

What is Concession agreement?

A concession is a license awarded by the government authorities to a private
entity for execution and implementation of public service and for this purpose
grants some rights for a limited period that are exclusively held by the
government under law. In turn of granting such rights, the government transfers
certain operating risks to the private entity.

Commonly adopted forms of PPPs:

1. Management Contracts: In a management contract, the private sector
partner is responsible for managing and operating a public facility or
providing a public service. The government retains ownership of the asset,
but the private partner takes on the day-to-day management responsibilities.
2. Build-Operate-Transfer (BOT) and Variants: In a BOT arrangement, the
private sector partner finances, designs, constructs, and operates a public
infrastructure project for a specified period. After the agreed-upon period,
ownership and operation of the asset are transferred back to the

 government. Variants of BOT include BOOT (Build-Own-Operate-

Transfer) and BOO (Build-Own-Operate).
3. Build-Lease-Transfer (BLT): In a BLT model, the private sector partner
constructs a public asset and leases it to the government for a specific
period. The government pays rent to the private partner during the lease
period. At the end of the lease term, ownership of the asset is transferred to
the government.
4. Design-Build-Operate-Transfer (DBFOT): The DBFOT model involves
the private partner undertaking the design, construction, operation, and
maintenance of a public infrastructure project. Once the agreed-upon period
expires, ownership and operation of the asset are transferred back to the
government.
5. Operate-Maintain-Transfer (OMT): In an OMT arrangement, the private
partner is responsible for operating and maintaining a public facility for a
defined period. Afterward, ownership and operation are transferred back to
the government.

Government incentives for PPPs:

• Viability Gap Funding (VGF) : Viability Gap Funding of up to 40% of the
cost of the project can be accessed in the form of a capital grant.
• India Infrastructure Project Development Fund (IIPDF): The scheme
supports the Central and State Governments and local bodies through
financial support for project development activities (feasibility reports,
project structuring etc.) for PPP projects
• India Infrastructure Finance Company (IIFC): Long-term debt for
financing infrastructure projects that typically involve long gestation periods
since debt finance for such projects should be of a sufficient tenure.

Risks in PPPs
1. Financial Risks: PPP projects involve a significant amount of money.
There is a risk that the project costs may exceed the planned budget, leading
to financial difficulties. Additionally, if the expected revenues from the
project do not materialize as anticipated, it can impact the financial
sustainability of the partnership.
2. Operational Risks: The smooth operation of a PPP project can be affected
by various factors. This includes risks such as inadequate maintenance,

 technology issues, or problems with project management. These risks can

disrupt the project's performance and impact its ability to deliver the
intended outcomes.
3. Demand Risks: PPPs often involve providing public services or
infrastructure. There is a risk that the demand for these services may be
lower than expected, resulting in underutilization of the project. This can
affect the revenue generation and financial viability of the partnership.
4. Political and Regulatory Risks: Changes in government policies,
regulations, or political dynamics can impact the stability and continuity of
PPP projects. Political interference, delays in decision-making, or
unfavorable regulatory changes can introduce uncertainties and adversely
affect the project's success.
5. Legal and Contractual Risks: PPPs rely on complex legal agreements and
contracts. Risks can arise if there are ambiguities, disputes, or breaches of
contract. Properly defining the roles, responsibilities, and obligations of
each partner and having clear dispute resolution mechanisms in place can
help mitigate these risks

PPP examples
1. Delhi Metro: The Delhi Metro Rail Corporation is a successful PPP
project where the government of Delhi and the central government
partnered with private entities to develop and operate the metro rail
system in Delhi and its neighboring regions.
2. Mumbai-Pune Expressway: The construction and operation of the
Mumbai-Pune Expressway, a major highway connecting Mumbai and
Pune, involved a PPP model. The project was executed through a
concession agreement between the government and private companies.
3. Jaipur International Airport: The development and management of the
Jaipur International Airport in Rajasthan were carried out through a PPP
arrangement. A private consortium entered into a contract with the
Airports Authority of India to operate and maintain the airport.
4. Port of Mundra: The Port of Mundra in Gujarat is an example of a
successful PPP project in the maritime sector. It was developed and is
currently operated by the Adani Group in partnership with the Gujarat
Maritime Board.

 5. Delhi-Gurgaon Toll Plaza: The construction and operation of the Delhi-

Gurgaon Toll Plaza on the Delhi-Gurgaon Expressway involved a PPP
model. Private companies were granted the concession to collect tolls and
maintain the expressway.

Unit-4

Public policy during British-India

The public policies during British India were oriented towards exploiting India's
resources, maximizing revenue for the colonial power, and protecting British
economic interests.
1. Agriculture: British policies in agriculture were focused on maximizing
revenue extraction from Indian farmers. They introduced various land
revenue systems, such as the Zamindari system and Permanent Settlement,
which led to exploitative practices. The emphasis was on cash crop
cultivation, particularly indigo, opium, and cotton, to meet the demands of
British industries. Indian agriculture suffered from neglect, limited
investment, and lack of modernisation.
2. Industry: British policies in industry aimed at promoting and protecting
the interests of British manufacturers. They implemented tariff barriers and
restrictive measures that hindered the growth of Indian industries. Indian
manufacturers faced high tariffs on their products, making it difficult to
compete with British goods. British industries, on the other hand, enjoyed
preferential treatment and protection, which contributed to the
deindustrialization of India.
3. Foreign Trade: British policies in foreign trade were designed to benefit
British traders and industries at the expense of Indian interests. They
imposed heavy tariffs and duties on Indian goods, making them less
competitive in international markets. Meanwhile, British goods enjoyed
preferential access to Indian markets. The British monopoly over trade and
the destruction of indigenous industries further exacerbated India's
dependence on British imports.

 Indian economy at the eve of independence

• Very low level of economic growth
• Abject poverty
• Huge unemployment
• Agriculture sector was in a plightful situation. India was importing
foodgrains from America
• Industrial base was ruined and modern industries were inadequate
• Private entrepreneurs not willing to invest

Government reforms for agriculture sector:

1. Abolition of Intermediaries/Zamindars: The abolition of intermediaries,
such as zamindars, aimed to remove the exploitative system of
landownership and distribute land directly to the farmers. This policy
sought to empower small and marginal farmers, improve their access to
land, and enhance agricultural productivity.
2. Land Ceiling: Land ceiling laws were implemented to limit the maximum
amount of land an individual or family could own. The purpose was to
redistribute surplus land from large landowners to landless and

 marginalized farmers, promoting more equitable land distribution and

reducing socio-economic disparities.
3. Cooperative Farming: Cooperative farming encouraged farmers to come
together and pool their resources, land, and labor for collective farming.
This approach aimed to enhance agricultural productivity, improve access
to credit and technology, and empower farmers through collective decision-
making and joint marketing of agricultural produce.
4. Green Revolution: The Green Revolution was a transformative
agricultural policy initiative that introduced high-yielding variety (HYV)
seeds, chemical fertilizers, insecticides, and pesticides to increase crop
yields. This approach led to significant advancements in agricultural
productivity, particularly in wheat and rice production, and played a vital
role in ensuring food security and reducing dependence on imports.
5. Well-developed Irrigation System: The establishment of a well-developed
irrigation system was crucial for agricultural growth. Public policies
focused on the construction of dams, canals, and other irrigation
infrastructure to provide reliable water supply for farming, reduce
dependence on monsoons, and promote agricultural expansion.

Industrial Policy Resolution (IPR) 1956

The Industrial Policy Resolution of 1956 aimed to achieve a balanced industrial
development in India. It emphasized the role of the state in guiding and
controlling industrial growth, particularly in strategic sectors. The policy also
recognized the significance of small-scale industries in the overall industrial
landscape of the country.
1. Classification of Industries: Industries were categorized into three
schedules: Schedule-A, Schedule-B, and Schedule-C.
Schedule-A included 17 industries that were considered the responsibility
of the state for future development.
Schedule-B consisted of 12 industries where the private sector could
complement the efforts of the public sector, but the state had sole
responsibility for initiating new units.
Schedule-C comprised residual industries that were open to the private
sector.

 2. Industrial Licensing: The policy introduced a system of industrial

licensing. Private sector industries needed to obtain a license from the
government to establish and operate. This licensing system allowed the
government to regulate and control the establishment of industries in the
private sector.
3. Emphasis on Cottage and Small Scale Industries: The policy recognized
the importance of cottage and small-scale industries. It stressed their role in
employment generation, poverty alleviation, and promoting regional
development. Efforts were made to support and promote these industries
through various incentives, subsidies, and reserved product lines.

Economic crisis in India 1991

The economic crisis in India in 1991 was a significant turning point in the
country's economic history. Here are the indicators and actions related to the
crisis:
1. Forex left to fund imports for a fortnight: This indicates that the foreign
exchange reserves of the country were critically low, suggesting a severe
shortage of funds to finance imports for a two-week period.
2. BOP deficit: The Balance of Payments deficit indicates that the country's
payments to foreign countries exceeded its receipts. It reflected an
imbalance in international trade and financial flows.
3. Fiscal deficit: The fiscal deficit refers to the excess of government
expenditure over its revenue. A high fiscal deficit indicates that the
government was spending more than it was earning, which put pressure on
public finances.
4. High inflation: High inflation signifies a significant increase in the general
price level, eroding the purchasing power of the currency. It can negatively
impact consumers, leading to decreased consumption and economic
instability.

Immediate steps taken by the government to address the crisis:

1. Repayment of loans to creditors using 20 tons of gold: The government
repaid a portion of its outstanding debts to creditors by utilizing 20 tons of
gold reserves.

2. Devaluation of the Indian currency: The Indian currency was devalued,

meaning its value was reduced relative to other currencies. This measure
aimed to boost exports and improve the country's competitiveness.
3. Government of India took a loan from the IMF: The government sought
financial assistance from the International Monetary Fund (IMF) to address
the economic crisis. The loan was intended to provide short-term relief and
stabilize the economy.
4. Loan provided on the condition to adopt LPG policies: The IMF loan
came with conditions requiring the government to implement
Liberalization, Privatization, and Globalization (LPG) policies. These
policies involved market-oriented reforms to enhance efficiency, promote
private sector participation, and integrate the Indian economy into the
global market.

LPG Policy India, 1991

The LPG policy in India, introduced in 1991, refers to a set of economic
reforms aimed at liberalization, privatization, and globalization. It was a
response to the severe economic crisis faced by the country at that time.
1. Liberalization: The liberalization aspect of the policy focused on reducing
government control and intervention in various sectors of the economy. It
involved easing regulations, removing trade barriers, and promoting
competition to encourage market forces to play a greater role in economic
activities. The goal was to foster economic efficiency, stimulate investment,
and enhance productivity.
2. Privatization: The privatization component aimed to reduce the
government's ownership and control of businesses. It involved the sale or
transfer of state-owned enterprises to private entities, allowing them to
operate with greater autonomy and efficiency. Privatization aimed to
improve the performance of public sector enterprises, attract private
investment, and promote competition in the economy.
3. Globalization: The globalization aspect of the policy focused on
integrating the Indian economy with the global markets. It involved
opening up the economy to foreign trade, investment, and technology
transfer. The objective was to enhance export competitiveness, attract
foreign direct investment (FDI), and benefit from the global flow of capital,
technology, and knowledge.

Objectives of Privatization
• Improve the financial situation of the government;
• Reduce the workload of public sector companies;
• Raise funds from disinvestment;
• Increase the efficiency of government organisations;
• Provide better and improved goods and services to the consumer;
• Create healthy competition in the society; and
• Encourage foreign direct investments (FDIs) in India.

Centralization vs Decentralization

Pros of Centralization:
Pros Explanation
Efficient Centralization allows for better coordination and
resource allocation of resources, ensuring optimal use of available
allocation resources.

 Streamlined Centralization enables faster decision-making as the

decision- authority is concentrated at the top, reducing delays and
making bureaucratic processes.
Uniform Centralization helps in enforcing uniform policies,
policies and standards, and regulations across different regions,
standards ensuring consistency and fairness.
Economies Centralization can lead to cost savings through economies
of scale of scale, as it allows for bulk purchasing, centralized
procurement, and shared services.
Stronger Centralization provides greater control and coordination,
control and making it easier to implement and monitor policies and
coordination programs effectively.

Cons of Centralization:
Cons Explanation
Lack of Centralization may overlook the specific needs and
local preferences of local communities, resulting in less
responsiven responsive and relevant policies and services.
ess
Bureaucrat Centralization can lead to bureaucratic red tape and delays
ic in decision-making due to a hierarchical structure and
inefficienci multiple layers of approval.
es
Reduced Centralization can stifle innovation and creativity as
innovation decisions are made at the top, limiting the input and ideas
and from lower levels of the organization or local
creativity communities.
Lack of Centralization may lead to reduced accountability as
accountabil decision-makers are distant from the affected communities.
ity and It can also result in less transparency in decision-making
transparen processes.
cy

 Overburde Centralization can put excessive burden on the central

ned central authority to manage and oversee a wide range of
authority responsibilities, potentially leading to inefficiencies and
overwhelmed decision-makers.

Pros of Decentralization:
Pros Explanation
Local Decentralization allows decision-making authority to be
responsivenes closer to local communities, enabling a better
s understanding of their specific needs.
Flexibility Decentralization empowers local entities to make
and decisions based on their unique circumstances, leading to
adaptability more flexible and adaptable policies.
Enhanced Decentralization encourages innovation and creativity as
innovation it provides opportunities for diverse perspectives and
and local knowledge to contribute to decision-making.
creativity
Increased Decentralization promotes citizen participation and
participation engagement in decision-making processes, fostering a
and sense of ownership and accountability.
engagement
Better service Decentralization can result in improved service delivery
delivery as local authorities have a better understanding of local
conditions and can tailor services accordingly.

Cons of Decentralization:
Cons Explanation
Inconsiste Decentralization can lead to inconsistencies and
ncy and fragmentation in policies and regulations across different
fragmenta regions, creating challenges for coordination and
tion standardization.

 Potential Decentralization may result in duplication of efforts and

duplicatio resources as different local entities independently pursue
n of efforts similar objectives, leading to inefficiencies.
Lack of Decentralization may lead to disparities and inequities in
uniformity service delivery and resource allocation, as different regions
and equity may have varying capacities and resources.
Coordinati Decentralization can present coordination challenges,
on particularly when multiple local entities need to collaborate
challenges on complex issues or when conflicts arise between different
levels of authority.
Weaker Decentralization reduces the central authority's control and
central oversight, which can raise concerns about accountability
control and the ability to enforce uniform policies and standards.
and
oversight

What is Panchayati-Raj System?

The Panchayati Raj system in India refers to the decentralized system of local
self-government in rural areas. It was established through the 73rd
Constitutional Amendment Act of 1992, which aimed to empower local
communities and ensure their participation in decision-making processes. Here
are some key features of the Panchayati Raj system:
1. 3-Tier Structure: The Panchayati Raj system consists of three tiers of
local government:
a) Gram Panchayat at the village level.
b) Panchayat Samiti at the block or intermediate level, consisting of
several Gram Panchayats.
c) Zilla Parishad at the district level, which supervises and coordinates the
activities of Panchayat Samitis and Gram Panchayats.
2. Elections and Representation: Members of the Panchayati Raj
institutions are elected by the people through regular elections. There are
reserved seats for Scheduled Castes, Scheduled Tribes, and women to
ensure their representation and participation.
3. Functions and Powers: Panchayati Raj institutions have the authority to
plan, implement, and manage various development programs and services

 at the local level. They are responsible for areas such as agriculture, rural
development, health, education, infrastructure, and social welfare.
4. Decentralized Financial Powers: Panchayats have been granted
financial powers to levy and collect taxes, receive grants from the
government, and use these funds for local development activities. The
Finance Commission of India allocates funds to Panchayats based on
certain criteria.
5. Gram Sabha: The Gram Sabha is a general body consisting of all adult
members of a village. It is the foundation of the Panchayati Raj system,
where important decisions are made, and people can voice their opinions
and participate in local governance.
6. Committee Structure: Panchayats have various committees, such as the
Executive Committee, Standing Committees, and Ward Committees, to
ensure effective functioning and representation in decision-making.

What to led to formation of local government/ Panchayati-Raj system in

India?
•Federal governments have two or more tiers of governments.
•There is two-tiers of government in our country – Central and State.
•But a vast country like India cannot be run only through these two-tiers.
•States in India are as large as independent countries of Europe. In terms of
population, Uttar Pradesh is bigger than Russia, Maharashtra is about as big as
Germany.
•Many of these States are internally very diverse.
•There is thus a need for power sharing within these States.
•Federal power sharing in India needs another tier of government, below that of
the State governments.
•This is the rationale for decentralisation of power. Thus, resulted a third-tier of
government, called local government.
•The basic idea behind decentralisation is that there are a large number of
problems and issues which are best settled at the local level.
•People have better knowledge of problems in their localities.
•They also have better ideas on where to spend money and how to manage
things more efficiently.

 Unit-5

What is sustainable development?

Sustainable development refers to a holistic approach to development that seeks
to meet the needs of the present generation without compromising the ability of
future generations to meet their own needs. It involves balancing economic
growth, social well-being, and environmental protection to create a harmonious
and sustainable future.

Brief overview on SDG’s

The United Nations Sustainable Development Goals (SDGs) are a set of 17
interconnected global goals adopted by the United Nations General Assembly in
2015. They provide a framework for countries and stakeholders to work
together towards achieving a more sustainable and equitable world by 2030.
The SDGs address a wide range of economic, social, and environmental
challenges and aim to end poverty, protect the planet, and ensure prosperity for
all.
1. No Poverty:
• Eradicate extreme poverty (people living on less than $1.90 a day).
• Implement social protection systems to ensure access to basic
services and resources.
2. Zero Hunger:
• End hunger and ensure access to safe, nutritious, and sufficient food
for all.
• Double the agricultural productivity and incomes of small-scale
food producers.
3. Good Health and Well-being:
• Ensure healthy lives and promote well-being for all ages.
• Achieve universal health coverage, including access to quality
essential healthcare services and medicines.
4. Quality Education:
• Ensure inclusive and equitable quality education for all.
• Enhance skills for employment and sustainable development.
5. Gender Equality:
• End all forms of discrimination against women and girls.

 •Ensure women's full and effective participation and equal

opportunities for leadership.
6. Clean Water and Sanitation:
• Ensure access to clean water and sanitation for all.
• Improve water quality and increase water-use efficiency.
7. Affordable and Clean Energy:
• Ensure access to affordable, reliable, and modern energy for all.
• Increase the share of renewable energy and improve energy
efficiency.
8. Decent Work and Economic Growth:
• Promote inclusive and sustainable economic growth, employment,
and decent work for all.
• Enhance financial inclusion and access to financial services.
9. Industry, Innovation, and Infrastructure:
• Build resilient infrastructure, promote inclusive and sustainable
industrialization, and foster innovation.
• Enhance scientific research and upgrade industrial technology.
10. Reduced Inequalities:
• Reduce inequality within and among countries.
• Empower and promote the social, economic, and political inclusion
of all.
11. Sustainable Cities and Communities:
• Make cities and human settlements inclusive, safe, resilient, and
sustainable.
• Provide access to safe and affordable housing and sustainable
transport systems.
12. Responsible Consumption and Production:
• Ensure sustainable consumption and production patterns.
• Reduce waste generation and promote sustainable lifestyles.
13. Climate Action:
• Take urgent action to combat climate change and its impacts.
• Strengthen resilience and adaptive capacity to climate-related
hazards.
14. Life Below Water:
• Conserve and sustainably use the oceans, seas, and marine
resources.

 • Prevent and reduce marine pollution and protect marine and coastal
ecosystems.
15. Life on Land:
• Protect, restore, and promote sustainable use of terrestrial
ecosystems.
• Combat desertification, halt biodiversity loss, and promote
sustainable forest management.
16. Peace, Justice, and Strong Institutions:
• Promote peaceful and inclusive societies, provide access to justice
for all.
• Build effective, accountable, and inclusive institutions at all levels.
17. Partnerships for the Goals:
• Strengthen the means of implementation and revitalize the global
partnership for sustainable development.
• Enhance international cooperation and support to developing
countries.

What is linear economy?

The traditional model where raw materials are collected and transformed into
products that consumers use until discarding them as waste, with no concern for
their ecological footprint and consequences. It prioritizes profit
over sustainability, with products made to be thrown away once they’ve been
used.

What is Circular Economy?

•A circular economy entails markets that give incentives to reusing products,
rather than scrapping them and then extracting new resources.
•In such an economy, all forms of waste, such as clothes, scrap metal and
obsolete electronics, are returned to the economy or used more efficiently.
•Design, production and consumption are all based around sustainability.
•This can provide a way to not only protect the environment but use natural
resources more wisely, develop new sectors, create jobs and develop new
capabilities.

 What is Governance?
Governance refers to the overall system and processes through which decisions
are made, authority is exercised, and actions are taken to manage and control an
organization, institution, or society. It encompasses the structures, policies, and
practices that guide and regulate the behavior of individuals and institutions in
the pursuit of common goals.

What is Good Governance?

As per World Bank Good Governance focuses on four major components,
namely:
• Legitimacy: government should have the consent of the governed
• Accountability: ensuring transparency, being answerable for actions and
media freedom);
• Competence: effective policymaking, implementation and service delivery
• Respect for law and protection of human rights

What is Urban Governance?

Urban governance refers to how cities are managed and governed. It involves
making decisions, creating rules, and providing services to make cities work
well.
Urban governance includes things like planning how cities grow, making sure
basic needs like water and transportation are met, involving people in decision-
making, and being accountable and transparent in how cities are run. It's about
creating livable, sustainable, and inclusive cities where people can thrive.

What is E-Governance?
The “e” in e-Governance stands for ‘electronic’. Thus, e-Governance is
basically associated with carrying out the functions and achieving the results of
governance through the utilization of ICT (Information and Communications
Technology).

Features of E-Governance
1. Efficiency: E-governance with ICT helps make government processes
faster and smoother. It reduces paperwork and manual work, making things
more convenient and efficient.

2. Productivity: By using ICT tools, e-governance helps government

employees and departments work more effectively. It saves time and allows
them to get more work done in less time.
3. Reach: E-governance with ICT brings government services to more people,
even in remote or underserved areas. It ensures that everyone has access to
important services and information, regardless of their location.
4. Sharing of Information: E-governance promotes the sharing of
information among different government departments and with the public.
It ensures that information is easily accessible, transparent, and available to
those who need it.
5. Service Delivery: E-governance improves the delivery of government
services. It makes it easier for citizens to access services online, reducing
the need to visit government offices in person. This makes services more
convenient and accessible to people.
6. Welfare: E-governance with ICT aims to improve the overall well-being of
citizens. It ensures that government services and programs are designed to
meet the needs of the people and promote their welfare.

National E-Governance Plan 2.0 (E-Kranti)

• The NeGP 2.0 is a part of the government’s broader Digital India initiative
and aims to scale up and boost e-governance initiatives across the country.
• Introduced by the government in March 2015 under the Digital India
program to utilize emerging technologies such as the cloud, mobile platforms
(like smartphones and tablets), and geospatial information systems.
• It will help in moving all government-to-citizen transactions in the education,
health, banking, and public services sectors onto online platforms to digitally
empower citizens of all strata.
Problems in E-Governance

What is Environmental Governance?

Environmental governance comprises of rules, practices, policies, and
institutions that shape how humans interact with the environment. It is about
conserving the resources, preserving the ecosystems that support the resources
through time, and ensuring equity and social justice in the use of these
resources.

Top 10 Major Global Environmental Issues In The World

 Climate Change.
 Energy.
 Water.
 Biodiversity and Land Use.
 Chemicals, Toxics and Heavy Metals.
 Air Pollution.
 Waste Management.
 Ozone Layer Depletion.
 Oceans and Fisheries.
 Deforestation.

Role of Central Pollution Control Board (CPCB)

Advise the Central Government on any matter concerning prevention and

control of water and air pollution and improvement of the quality of air.
Plan and cause to be executed a nation-wide programme for the prevention,
control or abatement of water and air pollution;
Co-ordinate the activities of the State Board and resolve disputes among
them;
Provide technical assistance and guidance to the State Boards
Collect, compile and publish technical and statistical data relating to water
and air pollution and the measures devised for their effective prevention,
control or abatement;
Organise through mass media, a comprehensive mass awareness programme
on the prevention, control or abatement of water and air pollution

Role of National Green Tribunal (NGT)

The Tribunal is tasked with providing effective and expeditious remedy in cases
relating to environmental protection, conservation of forests and other natural
resources and enforcement of any legal right relating to environment.