UPSC Mains Daily Answer Writing (19-08-2022)

GS 4 - Ethics, Integrity and Aptitude | Theory and Case Studies

Week 8 Day 5


Solve following case study based questions

Case study 1:

You are a professor as well as a social activist. There is an educated and well employed couple in your vicinity who often fight on their personal issues. One day they started fighting as usual, starting from arguments, turning loud, slamming doors and finally the male partner resorting to physical violence, the cry of wife and children started coming out. People come out, but do not dare to go to them citing that it is their personal matter, so any interference would be unethical and uncalled for. Answer the following questions based on the above case:

  1. Would you agree to be a bystander on the advice of the people that it is a personal matter of the couple? Give reasons.
  2. Suppose you go to the flat of the couple and enquire what is wrong but the male member insists that they be left on their own as it is their personal matter and you should mind your own business. What would be your reaction?
  3. Can police help in curbing this social malady by using legal authority and provisions?
  4. What is your moral and ethical locus standi on intervention of neighbours to stop the domestic violence?

Case Study 2:

Recently in India, a business firm with undischarged debt of Rs. 4623 crores has been asked to pay just Rs. 323 crores by the banks. The settlement occurred since these debts have become NPAs long back. From the financial year 2003-04 India continued to grow at a rapid pace which was the cumulative effect of liberalisation of economy and giving freedom to market. The LPG reforms were made with a rationale that State control of the economy leads to obstructing the market forces leading to inefficiency and lack of innovation. A free-market economy is driven by the urge for profit. The participants take risk to earn profit and the process in total generates huge wealth which is called national income or GDP. Such GDP growth is aspired by poverty-ridden nations like India so that her poorest sections can secure a livelihood and meet subsistence needs.

It is this worldview that lied under the drastic rise in loans given to industrialists who wanted to take risk during the boom period. For various reasons, including causes that are attributable to the government like land acquisition challenges, environmental clearance, skill shortage, corruption, etc. The projects failed and the loans turned into NPAs (Non-Performing Assets).

While NPAs are undesirable and we should strive to prevent them, they are part and parcel of the market-led economy model which we deliberately chose. And we chose this model in the belief that the risk-taking behaviour of industrialists will boost the nation's wealth and further human development in India. But there is a consensus amongst people that NPAs are the result of an industrialist's mistake. The increasing blame, depravation, bullying, censuring and condemning overall lead to stigmatising businessmen. Experts term this as ‘stigmatised capitalism’. This trend is expected to discourage desirable market behaviour from the private sector and has consequences for growth, employment and development.

Answer the following:

  1. Is it right to blame industrialists when we chose a free-market model aiming to uplift the downtrodden?
  2. Should the government waive NPAs and encourage risk-taking behaviour of capitalists which is fruitful for the common good? (250 words) 20


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