How can a backward state in the country maximize its opportunity for transforming policymaking framework? Explain (200 Words)
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IAS Parliament 4 years
KEY POINTS
· In a pre-covid world, urbanization, as a process, was seen concentrated in economic centers, projected as hotspots for attracting capital and becoming destinations for exports. This generated employment, attracting millions to migrate to these places from far-away rural corners.
· This is critical at a time when supply-chains of commodities, and even labour movements, are likely to disengage from far metropolises, and move much closer for production-distribution-consumption needs, “Vocal for Local".
· There are at least five areas that states with low gross state domestic product and per capita incomes must focus on. Carry out deeper structural reforms in factor markets (land, labour, enterprise, capital, tech-penetration) to crowd-in private investors and bring long-term investments.
· At a time when almost 28-30% of the organized workforce is unemployed, and millions within the unorganized, contractual workforce have lost jobs and lack adequate social safety nets, a reorientation of existing labour laws needs to safeguard worker-interests as against abandoning them.
· For example, if a state produces the best quality textile-products in apparel, or manufactures the best quality carpets for exports and has micro, small and medium enterprises engaged in them, there is a strong case to be made for viable firms to provided more advantages of scale through targeted fiscal incentives and credit lines from financial institutions. This can help these firms scale up production as demand picks up.
· States need three-to-five-year employment policies to ensure that everyone within the respective states who wishes to work has a job with a basic social-safety net. This helps bring rates of involuntarily unemployment down.
· Imbibe lessons of effective decentralization and building social capital from Kerala. This is vital particularly for poorly-developed states that need sustained public investments in building their human capital through greater spending in healthcare, education, social service delivery.
· Decentralizing governance, allowing greater decision-making power and financial autonomy to local communities and women-led groups. States where this has been done have seen improvement in administrative governance at local levels, more efficient micro-finance institutions and self-help groups, among others.
Bhanu Tiwari 4 years
PR.
IAS Parliament 4 years
Try to include some specific schemes. Keep Writing.
aswin 4 years
Kindly give feedback
IAS Parliament 4 years
Try to include specific schemes in the answer. Keep Writing.
Sanjeev Kumar Singh 4 years
Kindly give feedback
IAS Parliament 4 years
Good attempt. Keep Writing.
