GLOBAL GENDER GAP
The Global Gender Gap refers to the measurement of gender-based disparities across various aspects of life, including but not limited to economic participation and opportunity, educational attainment, political empowerment, and health and survival. It is commonly assessed and reported by the World Economic Forum (WEF) through its annual Global Gender Gap Report.
The Global Gender Gap Index ranks countries based on their progress towards gender parity. It measures the gap between women and men across four key areas:
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Economic Participation and Opportunity: This includes indicators such as labor force participation, wage equality for similar work, and the ratio of women to men in leadership positions and skilled roles.
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Educational Attainment: This assesses the gap in access to and completion of education between women and men at all levels, from primary to tertiary education.
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Health and Survival: This measures differences in life expectancy and sex ratio at birth, reflecting disparities in health outcomes between women and men.
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Political Empowerment: This evaluates the gap in political representation and participation between women and men, including the ratio of women to men in decision-making positions and parliamentary representation.
The Global Gender Gap Report serves as a tool to assess progress and identify areas where interventions are needed to address gender disparities. It highlights both achievements and challenges in achieving gender equality globally and provides policymakers, businesses, and civil society organizations with data-driven insights to inform their efforts toward gender equality and women's empowerment
3.What explains the gender pay gap?
The gender pay gap refers to the difference in average earnings between men and women in the workforce. Several factors contribute to the gender pay gap, including:
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Occupational Segregation: Women are often concentrated in lower-paying industries and occupations compared to men. This occupational segregation is influenced by various factors, including social norms, discrimination, and differences in educational and career choices.
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Unequal Pay for Equal Work: Even within the same occupation and industry, women may earn less than men for performing similar roles. This can be due to factors such as discrimination in hiring, promotion, and compensation decisions, as well as negotiation disparities.
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Motherhood Penalty: Women who become mothers often experience a reduction in earnings compared to women without children and men with children. This can be attributed to factors such as career interruptions, decreased work hours, and bias against working mothers in the workplace.
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Lack of Representation in Leadership Positions: Women are underrepresented in senior leadership roles and executive positions, which typically come with higher salaries and bonuses. This lack of representation contributes to the gender pay gap at the highest levels of organizations.
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Unpaid Care Work: Women are more likely to take on a disproportionate share of unpaid care work, such as childcare and eldercare responsibilities. This can limit their ability to work full-time or pursue higher-paying career opportunities.
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Gender Stereotypes and Bias: Societal stereotypes and biases about gender roles and capabilities can influence hiring, promotion, and compensation decisions, leading to disparities in pay between men and women
- The International Labour Organization (ILO) defines the gender pay gap as the disparity between the average wages of all women and all men in the labor market, regardless of whether they receive monthly salaries, hourly wages, or daily pay rates. It clarifies that this gap differs from the concept of "equal pay for equal work," which stipulates that individuals with the same qualifications and performing identical tasks should receive equivalent compensation.
- Moreover, there isn't a universally accepted method for calculating this discrepancy. For instance, while Pew Research found in 2012 that women earned 84% of men's earnings in the United States, the US Bureau of Labor Statistics reported a figure of 81 cents to the dollar shortly before that.
- Several factors contribute to this gap. Firstly, women's lower participation in paid employment compared to men, influenced by societal perceptions of gender roles, is a significant factor, as indicated by the labor force participation rate.
- The ILO states that globally, women's labor force participation rate stands at just under 47%, while for men, it is 72%. In India, according to the 2011 Census, only 25.51% of women participate in the workforce, compared to 53.26% of men.
- Secondly, the types of occupations women enter upon joining the workforce play a role. According to the ILO's Women in Business and Management report, women are underrepresented in managerial and leadership positions, especially at higher levels. Additionally, when women do hold managerial roles, they tend to be concentrated in support functions such as human resources and financial administration, which typically offer lower salaries compared to more strategic roles occupied by men.
- A survey conducted by Georgetown University in 2013 revealed that the top 10 highest-paying professions, predominantly in engineering and computer science, were dominated by men, whereas the 10 lowest-paying professions, primarily in fields like arts and education, were dominated by women.
- Furthermore, in 73 countries (based on 2018 data), women outnumber men as part-time workers. The ILO suggests that women's opportunities for full-time employment may be constrained compared to men's, leading them to opt for part-time work, which often comes with fewer benefits and lower remuneration over time.
- Institutional and socio-economic factors also contribute significantly to the gender pay gap, including the perception that men should be the primary breadwinners, unequal investments in women's education, and safety concerns during commute and in the workplace
The gender pay gap is typically calculated by comparing the average earnings of all women to the average earnings of all men within a specific workforce or labor market. Here's a basic outline of the calculation:
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Collect Data: Gather data on earnings for both men and women within the chosen population, whether it's a particular company, industry, region, or country. This data can be obtained from payroll records, government databases, surveys, or other sources.
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Calculate Average Earnings: Determine the average earnings for men and women separately by summing up the total earnings of each group and dividing by the number of individuals in that group.
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Calculate the Gap: Subtract the average earnings of women from the average earnings of men to find the absolute difference.
Gap = Average Earnings of Men - Average Earnings of Women
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Express the Gap as a Percentage: To express the gap as a percentage, divide the absolute difference by the average earnings of men and then multiply by 100.
Percentage Gap = (Gap / Average Earnings of Men) * 100
This percentage represents the gender pay gap, indicating the difference in average earnings between men and women as a proportion of men's average earnings
6.The Global Gender Gap Index and Gender Inequality Index (GII)
| Subject | Global Gender Gap Index (GGGI) | Gender Inequality Index (GII) |
|---|---|---|
| Measurement | Measures gender-based disparities across four key areas: Economic participation and opportunity, Educational attainment, Health and survival, Political empowerment. | Measures gender inequality in three dimensions: Reproductive health, Empowerment, Labor market participation. |
| Focus | Focuses on gender disparities and gender parity in various aspects of life, including economic, educational, health, and political participation. | Focuses specifically on gender inequality, highlighting disparities in reproductive health, empowerment, and labor market participation. |
| Components | Includes economic participation and opportunity, educational attainment, health and survival, political empowerment. | Includes maternal mortality ratio, adolescent birth rate, women in parliament, educational attainment, labor force participation. |
| Data Sources | Relies on data collected by the World Economic Forum (WEF) through its annual Global Gender Gap Report. | Utilizes data from various sources, including United Nations agencies and other international organizations. |
| Ranking Method | Ranks countries based on their progress towards gender parity in each component and overall. | Ranks countries based on a composite index that combines indicators from the three dimensions of reproductive health, empowerment, and labor market participation. |
| Scope | Covers a broad range of gender disparities and focuses on the gender gap within each country. | Specifically targets gender inequality and highlights countries where women face significant barriers to equal rights and opportunities. |
| Policy Implications | Provides policymakers with insights into areas where interventions are needed to address gender disparities and promote gender equality. | Helps policymakers identify areas where targeted interventions are required to address gender inequality and improve women's rights and opportunities. |
| Global Rankings | Provides a global ranking of countries based on their performance in closing the gender gap. | Provides a global ranking of countries based on their level of gender inequality, highlighting countries with the highest levels of disparity. |
| Publication Frequency | Published annually by the World Economic Forum (WEF). | Published annually by the United Nations Development Programme (UNDP). |
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For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains:
General Studies I: Social empowerment • General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections. • General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources |
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Previous Year Questions
1.Which of the following gives 'Global Gender Gap Index' ranking to the countries of the world? (UPSC CSE 2017)
A.World Economic Forum
B.UN Human Rights Council
C.UN Women
D.World Health Organization
Answer (A)
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CONSUMER PRICE INDEX (CPI)
1. Context
2. Consumer Price Index
- The Consumer Price Index (CPI) is a measure of the change in prices of a basket of goods and services that are commonly purchased by consumers. It is the most commonly used measure of inflation.
- The CPI is calculated by comparing the prices of the goods and services in the basket in a particular period to those of the same in a base period.
- The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
- The CPI is calculated for eight different categories of goods and services Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
- The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
- The CPI inflation rate is an important indicator of the cost of living.
- It is used by the government to set monetary policy and by businesses to make pricing decisions.
3. Wholesale Price Index
- The Wholesale Price Index (WPI) is a measure of the change in prices of goods and services at the wholesale level.
- It is calculated by comparing the prices of a basket of goods and services in a particular period to those of the same in a base period.
- The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the WPI inflation rate.
- The WPI is calculated for 67 groups of commodities, which are further divided into 225 subgroups.
- The weights of each group and subgroup in the WPI are determined by the value of the goods and services produced in each group and subgroup.
- The WPI inflation rate is an important indicator of inflation at the wholesale level.
- It is used by businesses to make pricing decisions and by the government to set monetary policy.
4. Findings of the Report
4.1. Food inflation
- Food inflation in India remained high in August, at 9.94%. This was driven by rising prices of essential food items, such as cereals, pulses, vegetables, and oils.
- Eleven of the 12 items on the heavyweight food and beverages group of the CPI logged price increases, with oils and fats, the sole item logging a year-on-year decline in prices, posting its first sequential increase in nine months.
- Vegetables provided some relief, with tomatoes leading an appreciable month-on-month deflation of 5.88% in the 19-member basket.
- However, the cooking staples of potatoes and onions were among the seven items that continued to log sequential inflation (2.3% and 12.3%, respectively).
4.2. Monsoon deficit and rising crude oil prices
- The near-term inflation outlook is also made more uncertain by other factors, including a distinct deficit in monsoon rainfall.
- Besides the overall 10% shortfall, sharp regional and temporal anomalies in rain distribution have impacted either the sowing or the quality of produce of several farm items.
- Kharif's sowing of pulses had, as of September 8, recorded an 8.6% shortfall compared with the year-earlier period.
- Another inflation driver, crude oil, has also seen a steady rise in prices as the output cuts by major oil producers of the OPEC+ grouping start to bite.
- The price of India's crude basket had, as of September 12, climbed 7.2% from the average in August to $92.65/barrel, according to official data.
4.3. RBI measures to control inflation
- For the RBI, the latest inflation data further roils its interest rate calculus.
- Unless CPI inflation decelerates by an incredible 250 basis points in September to a 4.33% pace, price gains are certain to substantially overshoot the monetary authority's 6.2% forecast for the July-September quarter, leaving it with few real options to achieve its medium-term price stability goal of 4% inflation.
- As the RBI has been at pains to stress, failure to anchor inflation expectations risks hurting growth.
5. About the sticky Consumer Price Index (CPI)
- The sticky Consumer Price Index (CPI) is a subset of the CPI that includes goods and services that change prices relatively infrequently.
- These goods and services are thought to incorporate expectations about future inflation to a greater degree than prices that change more frequently.
- Some of the items included in the sticky CPI are Rent, Housing costs, Utilities, Education, Healthcare, Transportation, Household furnishings and appliances, Personal insurance, Recreation, and Miscellaneous goods and services.
- The sticky CPI is often used by economists to measure inflation expectations.
- This is because prices of sticky goods and services are less likely to be affected by short-term changes in supply and demand, and are therefore more likely to reflect changes in inflation expectations.
- The sticky CPI is also used by central banks to set monetary policy.
- This is because the central bank wants to make sure that inflation expectations are anchored at a low level.
- If inflation expectations start to rise, the central bank may raise interest rates to bring them back down.
6. How India’s retail inflation is measured?
- India's retail inflation is measured by the Consumer Price Index (CPI), a basket of goods and services commonly purchased by urban households.
- The CPI is calculated by the National Statistical Office (NSO) every month.
- The CPI is calculated by comparing the prices of the goods and services in the basket in a particular month to those of the same in a base month.
- The base month is usually the previous year's corresponding month. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
- The CPI is calculated for eight different categories of goods and services, Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
- The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
- The CPI inflation rate is an important indicator of the cost of living in India.
- It is used by the government to set monetary policy and by businesses to make pricing decisions.
7. Calculation of Inflation
- Inflation is the rate at which the prices of goods and services increase over time.
- It is calculated by comparing the prices of a basket of goods and services in a particular period to the prices of the same basket of goods and services in a base period.
- The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the inflation rate.
There are two main ways to calculate inflation
The CPI is calculated by the following formula:
CPI = (Cost of a basket of goods and services in current period / Cost of a basket of goods and services in base period) * 100
The PPI is calculated by the following formula:
PPI = (Cost of a basket of goods and services at the wholesale level in the current period / Cost of a basket of goods and services at the wholesale level in the base period) * 100
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For Prelims: Consumer Price Index, Wholesale Price Index, Inflation, retail inflation, Producer Pirce Index, National Statistical Office, OPEC+, Crude oil, Kharif season, Monsoon,
For Mains:
1. Analyse the factors contributing to high food inflation in India in recent months. Discuss the impact of high food inflation on the Indian economy and suggest measures to mitigate it. (250 words)
2. Explain the concept of sticky inflation. What are the various factors that contribute to sticky inflation? Discuss the implications of sticky inflation for the Indian economy. (250 words)
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Previous Year Questions
1. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answer: C
2. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: C
3. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 only C. 3 only D. 1, 2 and 3
4. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
5. The Public Distribution System, which evolved as a system of management of food and distribution of food grains, was relaunched as _______ Public Distribution System in 1997. (SSC JE EE 2021)
A. Evolved B. Transformed C. Tested D. Targeted
Answer: D
6. Under the Antyodaya Anna Yojana, up to what quantity of rice and wheat can be purchased at a subsidised cost? (FCI AG III 2023)
A. 35 kg B. 40 kg C. 30 kg D. 25 kg E. 50 kg
Answer: A
7. As per the the National Statistical Office (NSO) report released on 7 January 2022, India's Gross domestic product (GDP) is expected to grow at ___________ per cent (in first advance estimates) in the fiscal year 2021-22? (ESIC UDC 2022)
A. 17.6 per cent B. 9.5 per cent C. 11 per cent D. 9.2 per cent E. None of the above
Answer: D
8. The main emphasis of OPEC (Organisation of the Petroleum Exporting Countries) is on which of the following? (UKPSC 2016)
A. The production of petroleum
B. Control over prices of petroleum
C. Both (a) and (b)
D. None of the above
Answer: C
9. In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply? (UPSC 2011)
1. It is a major classification of crude oil.
2. It is sourced from the North Sea.
3. It does not contain sulfur.
Which of the statements given above is/are correct?
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
10. The term 'West Texas Intermediate', sometimes found in news, refers to a grade of (UPSC 2020)
A. Crude oil B. Bullion C. Rare earth elements D. Uranium
Answer: C
11. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (UPSC 2019)
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct?
A. 1 and 3 only B. 2, 3 and 4 only C. 2 and 4 only D. 1, 2, 3 and 4
Answer: A
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MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)
1. Context
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)
1. Context
2. About the National Level Monitoring (NLM) report
- The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
- The report is based on field visits and interviews with stakeholders at the grassroots level.
- The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
- The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.
The NLM report typically identifies the following areas:
- The coverage of rural development programs
- The quality of implementation of rural development programs
- The impact of rural development programs on the lives of rural people
The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.
3. The findings of the NLM report
- In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
- In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
- In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
- The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
- The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.
4.1. Mandate and Goals
- The mandate of MGNREGA is to provide employment and ensure food security for rural households.
- The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
- The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity.
4.2. Core Objectives
- The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
- MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
- The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.
4.3. Key Stakeholders
- Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
- Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
- The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
- The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
- Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.
4.4. Role of Gram Sabha and Gram Panchayat
- The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
- The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.
4.5. Issues with MGNREGA
- Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
- There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
- Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
- Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
- Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
- Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.
5. Conclusion
MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.
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For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),
For Mains:
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
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Previous Year Questions
Prelims
1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: B 5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
Answer: A
Mains
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
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2. About the National Level Monitoring (NLM) report
- The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
- The report is based on field visits and interviews with stakeholders at the grassroots level.
- The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
- The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.
The NLM report typically identifies the following areas:
- The coverage of rural development programs
- The quality of implementation of rural development programs
- The impact of rural development programs on the lives of rural people
The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.
3. The findings of the NLM report
- In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
- In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
- In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
- The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
- The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.
4.1. Mandate and Goals
- The mandate of MGNREGA is to provide employment and ensure food security for rural households.
- The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
- The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity.
4.2. Core Objectives
- The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
- MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
- The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.
4.3. Key Stakeholders
- Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
- Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
- The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
- The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
- Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.
4.4. Role of Gram Sabha and Gram Panchayat
- The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
- The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.
4.5. Issues with MGNREGA
- Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
- There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
- Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
- Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
- Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
- Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.
5. Conclusion
MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.
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For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G),
For Mains:
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
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Previous Year Questions
Prelims
1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011) (a) Adult members of only the scheduled caste and scheduled tribe households Answer: D 2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: A 3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: C 4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: B 5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017) A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
Answer: A
Mains
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
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TOTAL FERTILITY RATE (TFR)
2. About the Total Fertility Rate (TFR)
The Total Fertility Rate (TFR) is a key demographic indicator that helps us understand the average number of children a woman in a specific population will have during her lifetime, assuming current birth patterns persist. It's different from the crude birth rate, which simply measures the number of births per 1,000 people in a population in a given year.
What it measures
- The average number of children a woman will have throughout her reproductive lifespan.
- It considers age-specific fertility rates, which means it takes into account the different birth rates at different ages within the population.
- Provides a longer-term perspective on population dynamics compared to the crude birth rate.
Significance
- Helps assess population growth trends and predict future population size.
- Informs policy decisions related to education, healthcare, social security, and economic development.
- Understanding TFR is crucial for analyzing the potential demographic dividend, which refers to the economic and social benefits that can arise from a large working-age population due to declining fertility rates.
Calculation
- Summing the age-specific fertility rates (ASFRs) for all fertile age groups (typically 15-49 years) and multiplying by five.
- ASFRs represent the average number of births per 1,000 women in a specific age group.
Key TFR levels
- Replacement fertility rate: Around 2.1 children per woman, ensures population stability without growth or decline due to births and deaths (excluding migration).
- TFR below replacement: Indicates a declining population, with potential implications for workforce size and economic growth.
- TFR above replacement: Leads to population growth, requiring investments in infrastructure and resources to support the growing population.
3. What does the Total Fertility Rate (TFR) of 2.0 mean?
A Total Fertility Rate (TFR) of 2.0 means that, on average, each woman in the population is expected to give birth to two children over her reproductive lifetime. This value represents the replacement level of fertility, where each generation replaces itself in the population. When the TFR is around 2.0, it indicates that the population is stable, with births balancing deaths over time.
A Total Fertility Rate (TFR) of 2.0 indicates several key things
- Average Children per Woman: In that specific population, on average, a woman will have two children during her lifetime, assuming current birth patterns remain unchanged. This means that each generation of women is replacing itself, without population growth or decline due solely to births and deaths (excluding migration).
- Replacement Fertility Rate: A TFR of 2.0 is often referred to as the replacement fertility rate. This is because it signifies the level of fertility needed to maintain a stable population size over time, considering only births and deaths. However, it's important to note that the exact replacement level can vary slightly depending on mortality rates, particularly child mortality.
- Demographic Transition: A TFR of 2.0 suggests that the population is likely in the later stages of the demographic transition. This transition involves a shift from high birth and death rates to low birth and death rates. In this stage, populations typically experience a decline in fertility, followed by a decline in mortality, leading to a stabilization of population size.
- Global Context: While 2.0 is the replacement fertility rate, the global average TFR is currently around 2.3, indicating slight population growth. However, many developed countries have TFRs below replacement level, which can lead to an ageing population and potential challenges for social security systems and workforce size.
- Policy Implications: Understanding the TFR is crucial for policymakers in various areas like education, healthcare, social security, and economic development. A TFR below replacement may necessitate policies encouraging childbirth or attracting immigration to address potential workforce shortages. Conversely, a high TFR might require investments in infrastructure and resources to support a growing population.
4. What is the Replacement Fertility Rate?
The Replacement Fertility Rate (RFR) is the level of fertility required to maintain a stable population size in a given area, considering only births and deaths (excluding migration). This means that each generation of women has just enough daughters to replace themselves and their mothers in the population.
Key Points about RFR
- Typically around 2.1 children per woman This number varies slightly depending on a country's mortality rates, especially child mortality rates. Higher child mortality necessitates slightly higher fertility to ensure replacement.
- When the TFR matches the RFR, the population neither grows nor declines due to births and deaths.
- Reaching RFR suggests a population in the later stages of the demographic transition, characterized by declining birth and death rates.
- Though the global average TFR is 2.3 (slightly above RFR), many developed countries have TFRs below RFR, leading to ageing populations.
Significance of RFR
- Understanding RFR helps policymakers formulate effective policies in areas like education, healthcare, social security, and economic development.
- TFR below RFR may require policies to encourage childbirth or attract immigration to address potential workforce shortages and support ageing populations. Conversely, a high TFR might necessitate investments in infrastructure and resources to sustain a growing population.
- Analyzing TFR about RFR offers insights into potential population growth or decline, aiding in planning and resource allocation.
5. How is the Total Fertility Rate calculated?
The Total Fertility Rate (TFR) is calculated by considering the age-specific fertility rates (ASFRs) of a population.
- Age-specific fertility Rates (ASFRs) represent the average number of births per 1,000 women within a specific age group. Typically, ASFRs are calculated for five-year age groups ranging from 15-49 years, covering the typical childbearing years for women. Data for calculating ASFRs usually comes from population censuses or demographic surveys.
- Once you have the ASFRs for each age group, you need to sum them all up. This gives you the total number of births expected per 1,000 women across all fertile age groups.
- Since age groups may have different sizes, simply summing ASFRs wouldn't be entirely accurate. To account for this, the sum is multiplied by the average number of women in each age group. This ensures the TFR reflects the fertility rates across all age groups proportionally.
- Often, instead of using the actual number of women in each age group, a standard factor of "5" is used for convenience. This assumes that each age group has roughly the same number of women, which is a reasonable approximation for many populations.
Therefore, the TFR formula becomes: TFR = (Sum of ASFRs across all age groups) * 5
Example:
Imagine a hypothetical population with the following ASFRs:
- 15-19 years: 30 births per 1,000 women
- 20-24 years: 80 births per 1,000 women
- 25-29 years: 120 births per 1,000 women
- 30-34 years: 90 births per 1,000 women
- 35-39 years: 50 births per 1,000 women
- 40-44 years: 20 births per 1,000 women
- 45-49 years: 10 births per 1,000 women
Using the formula:
- TFR = (30 + 80 + 120 + 90 + 50 + 20 + 10) * 5
- TFR = 400 * 5
- TFR = 2000 births per 1,000 women
Therefore, in this example, the TFR is 2.0, indicating that on average, a woman in this population would have 2 children during her lifetime based on the current age-specific fertility rates.
6. The difference between birth rate and Total Fertility Rate (TFR)
While both birth rate and Total Fertility Rate (TFR) measure fertility within a population, they have key differences that offer distinct insights:
| Features | Birth Rate | Total Fertility Rate (TFR) |
| Definition | Number of births per 1,000 people in a year | Average number of children per woman throughout her life |
| Focus | Current fertility level | Long-term fertility pattern |
| Data | Requires population size and number of births | Requires age-specific fertility rates |
| Calculation | Simple division | Summing and adjusting age-specific fertility rates |
| Advantages | Easy to understand, tracks short-term trends | Considers age structure, reflects future potential, informs policy |
| Limitations | Ignores age structure, limited future insight, misleading in fluctuating populations |
Requires complex data, less intuitive, may not perfectly predict future |
7. About demographic dividend
A demographic dividend refers to the potential economic and social benefits that can arise when a large share of the population is in the working-age (typically 15-64 years) compared to the dependent populations (children and elderly). This shift in population structure is often caused by a decline in fertility rates without a corresponding decline in mortality rates, leading to a "bulge" in the working-age population.
Key Features
- A larger working-age population translates to a larger pool of available labour, potentially boosting economic growth and productivity.
- The ratio of dependents (children and elderly) to the working-age population decreases, leading to increased savings and investment as fewer resources are needed to support dependents.
- The potential for increased investments in education and healthcare due to a smaller dependent population, leading to a more skilled and healthy workforce.
Conditions for a Dividend
- A significant and sustained decline in fertility rates is crucial for the demographic dividend to occur.
- The benefits of a demographic dividend can only be realized if the working-age population is adequately educated, skilled, and healthy.
- Expanding job opportunities is essential to absorb the growing workforce and prevent unemployment.
Challenges and Considerations
- The demographic dividend may not be evenly distributed across regions or social groups, potentially leading to inequalities.
- Governments and businesses need to adapt policies and infrastructure to accommodate the changing population structure.
- Ensuring social security and healthcare for the ageing population is crucial to sustain the benefits of the dividend.
Examples
- Several East Asian countries, like China and South Korea, experienced significant economic growth due to their demographic dividends in the latter half of the 20th century.
- India is currently experiencing a demographic transition with a declining fertility rate, creating the potential for a future dividend. However, realizing this potential requires investments in education, healthcare, and job creation.
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For Prelims: Viksit Bharat, Population control goal, Total Fertility Rate, Replacement Fertility Rate
For Mains:
1. Critically analyze the significance of Total Fertility Rate (TFR) in understanding population dynamics and formulating development policies in India. Discuss the potential challenges and opportunities associated with India's projected demographic transition. (250 Words)
2. What are the potential security implications of India's changing population structure? How can these be addressed through proactive policy measures? (250 Words)
3. Imagine you are part of the committee formed by the Finance Minister to study India's population growth. What key recommendations would you propose, considering both demographic trends and the aspirations of a Vikasit Bharat? (250 Words)
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Previous Year Questions
1. The total fertility rate is: (HPPSC GS 2018) (MPSC 2015)
A. The birth of women divided by the total female population
B. The number of births divided by the total population
C. The number of children a woman will likely bear in her lifetime
D. The births to women of a given age divided by the total number of women at that age
Answer: C
Mains
1. "Empowering women is the key to control the population growth.’’ Discuss. (UPSC 2019)
2. Critically examine the effect of globalization on the aged population in India. (UPSC 2013)
3. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (UPSC 2021)
4. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC 2020)
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WORLD BANK'S GLOBAL ECONOMIC PROSPECTS REPORT
- According to the World Bank, the global economy is projected to face a significant downturn by the end of 2024, potentially marking the slowest GDP growth in three decades, highlighting the urgent need for a major course correction.
- Increasing geopolitical tensions may introduce new short-term risks to the global economy, with the latest Global Economic Prospects report, released on January 9, 2024, indicating that this period could see the slowest five-year GDP growth rate in 30 years.
- A previous report by the World Bank in June 2023 indicated that the global economy was precariously positioned, with significant growth slowdowns anticipated due to sharp interest-rate hikes impacting economic activities and intensifying vulnerabilities in lower-income nations.
- This slowdown was linked to several factors, including overlapping negative impacts from the COVID-19 pandemic, Russia's invasion of Ukraine, and stringent monetary policies to combat high inflation.
- While the global economic situation has improved compared to the previous year, reducing the risk of a global recession primarily due to the robust performance of the United States' economy, the medium-term outlook for many developing countries has worsened. Most major economies are experiencing decelerating growth, weak global trade, and the tightest financial conditions in decades, the report noted.
- Global trade growth in 2024 is forecasted to be half of what it was in the decade before the pandemic. Developing economies, particularly those with low credit ratings, are expected to continue facing high borrowing costs, with global interest rates at their highest levels in four decades when adjusted for inflation.
- Global growth is anticipated to decelerate for the third consecutive year, decreasing from 2.6 percent last year to 2.4 percent in 2024, which is nearly three-quarters of a percentage point below the average growth rate of the 2010s. Developing economies are projected to grow at 3.9 percent, over a percentage point less than their average growth in the previous decade.
- Low-income countries, following a disappointing performance last year, are expected to grow by 5.5 percent, lower than earlier projections. By the end of 2024, roughly one-fourth of developing nations and about 40 percent of low-income countries will remain poorer than they were before the COVID-19 pandemic in 2019. Growth in advanced economies is expected to decline to 1.2 percent this year from 1.5 percent in 2023
- According to the World Bank’s latest Global Economic Prospects report, India's growth for the fiscal year 2023/24 (April 2023 to March 2024) is estimated to have risen to 8.2 percent, which is 1.9 percentage points higher than the January estimate.
- The report also indicates that global growth is expected to remain steady at 2.6 percent in 2024 and slightly increase to an average of 2.7 percent in 2025-26, which is significantly lower than the pre-COVID-19 average of 3.1 percent.
- "India is projected to continue as the fastest-growing among the world's largest economies, though its growth rate is expected to slow. Following a robust performance in FY2023/24, an average growth rate of 6.7 percent per year is anticipated for the three fiscal years starting in FY2024/25," the report states. This slowdown is primarily attributed to a decrease in investment from a high baseline
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What is the World Bank?
The World Bank is an international financial institution that provides financial and technical assistance to developing countries around the world. Its primary goal is to reduce poverty and support development by providing loans, grants, and expertise for projects that can improve infrastructure, education, health, and other critical areas. Here are some key points about the World Bank:
The main mission of the World Bank is to reduce poverty and improve living standards by promoting sustainable development. This includes funding projects that can lead to economic development, such as building infrastructure, improving education systems, and supporting agricultural development
The World Bank provides loans and grants to the governments of poorer countries to help them carry out development projects. These projects can range from building schools and hospitals to providing clean drinking water and improving roads and transportation systems
The World Bank is also a leading source of research and data on global development. It publishes numerous reports and datasets on economic trends, poverty, and development challenges, which are used by policymakers, researchers, and the public
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For Prelims: Indian Economy, International reports, World Bank
For Mains: GS-III: Indian Economy
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Previous Year Questions
1.‘Global Financial Stability Report’ is prepared by the (UPSC CSE 2016) (a) European Central Bank (b) International Monetary Fund (c) International Bank for Reconstruction and Development (d) Organization for Economic Cooperation and Development Answer (b) The 'Global Financial Stability Report' is prepared by the International Monetary Fund (IMF). This report provides comprehensive assessments of global financial markets, identifies potential vulnerabilities, and offers policy recommendations to foster financial stability. It is published twice a year, typically in April and October |
