Democracy and Institutions

Jatayu and Ideas of Active Citizens for Good Governance

Leave a Comment / Cultural Economics, Democracy and Institutions, Public Policy /

Jatayu and Ideas of Active Citizens for Good Governance Jatayu and Ideas of Active Citizens for Good Governance Prayaga Venkata Rama Vinayak June 12, 2026 Cultural Economics, Democracy and Institutions, Public Policy As Public policy enthusiasts, we often discuss the role of the government and the kind of policies to be implemented. We focus more on the governance. We speak about the rights, but very few talks about the duties. I got a chance to read Aranya Kanda of Ramayan, in which one character inspired me, the most and also made me pause for a while to rethink about my responsibilities as a citizen. In this piece, I would like to discuss about the most iconic character of Ramayana, “Jatayu” and the things we as a citizen of this country can learn from this beautiful character. In the Valmiki Ramayana, Jatayu, the aged king of vultures and a trusted friend of King Dasharatha, witnessed Ravana abducting Maa Sita, carrying her away towards Lanka. Although old and aware of Ravana’s immense strength, Jatayu could not bear to see such an act of “adharma” unfold before his eyes. He confronted Ravana, appealed to him to release Maa Sita, and when his words were ignored, courageously engaged in a battle with the mighty demon king. Jatayu fought with remarkable determination, damaging Ravana’s chariot and attempting with all his strength to rescue Maa Sita despite the overwhelming odds against him. The battle eventually took its toll, and Ravana, enraged by the resistance, struck down Jatayu by severing his wings. Mortally wounded, Jatayu fell to the earth but remained alive long enough to meet Rama and Lakshmana, to whom he recounted the abduction and indicated the direction in which Ravana had fled. Having done everything within his power to protect Maa Sita and aid Rama’s search, Jatayu breathed his last in Rama’s presence, earning the Lord’s deepest respect and gratitude for his selfless sacrifice in the cause of righteousness. The significance of Jatayu’s action extends far beyond the Ramayana. His action offers profound lessons for modern citizens living in an age where many choose silence over responsibility. The old Jatayu had the option of remaining “neutral” and continuing his sleep even after witnessing such a heinous act unfold before him. However, he chose otherwise. He did everything within his capacity to stop the abduction of Maa Sita and, in that process, set a strong benchmark of civic courage. His actions demonstrate that one need not occupy the highest political office or hold a position in the civil services to stand up against injustice. Every citizen has the ability and responsibility to resist wrongdoing and contribute to the larger public good. We need not necessarily take part in a combat fight with the wrongdoers, like how Jatayu acted then. We have provisions in our country to be a responsible whistleblower, adhering to the rule of law and the constitution. In many ways, Jatayu represents the ideal citizen in a constitutional democracy. Democracies do not function merely because governments exist; they function because ordinary citizens remain vigilant, participate in public life, and refuse to be silent when faced with injustice. Whether it is reporting corruption, exposing abuse of power, assisting victims of crime, protecting public property, or standing up against discrimination, the strength of a society depends on the willingness of its citizens to act when circumstances demand it. Public institutions alone cannot ensure justice if citizens choose silence in the face of wrongdoing. The story of Jatayu is also a reminder that success should not be the sole measure of public action. Technically, Jatayu failed in his mission—he could not prevent Ravana from taking Maa Sita to Lanka. Yet, the Ramayana remembers him not for the outcome, but for the courage of his attempt. In public life too, individuals who expose corruption, challenge injustice, or defend constitutional principles may not always achieve immediate success. Nevertheless, their actions strengthen democratic values and inspire others to act with integrity. The moral worth of an action often lies not in its result, but in the commitment to do what is right despite adverse circumstances. At a time when societies across the world face challenges such as corruption, misinformation, declining civic participation, and growing public enthusiasm, the example of Jatayu remains remarkably relevant. His story teaches us that neutrality in the face of injustice is not always a solution. There are moments when silence indirectly benefits the offender and weakens the moral foundations of democracy. Responsible citizenship requires not only the enjoyment of rights but also the willingness to discharge duties towards fellow citizens and the nation. Jatayu’s sacrifice, therefore, deserves to be remembered not merely as an episode from an ancient epic but as a powerful lesson in public ethics. He reminds us that the defence of justice is not the exclusive responsibility of rulers, governments, or law enforcement agencies. It is a shared responsibility of every citizen. In choosing duty over silence and courage over comfort, Jatayu left behind a model of citizenship that continues to hold relevance even in the twenty-first century. The Author is a Public Policy Fellow at AgaPuram Policy Research Centre, Erode The views expressed by the author are personal and do not reflect or represent the views of the AgaPuram Policy Research Centre.  

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New Delimitation and Women’s Reservation Bill: Constitutional Interlinkages and Policy Challenges

Leave a Comment / Democracy and Institutions, Public Policy, Women Empowerment /

New Delimitation and Women’s Reservation Bill New Delimitation and Women’s Reservation Bill: Constitutional Interlinkages and Policy Challenges Prayaga Venkata Rama Vinayak May 12, 2026 Democracy and Institutions, Public Policy, Women Empowerment The defeated Delimitation Bill has been at the centre of political debates, since the last delimitation exercise, which was based on 1971 census, when the population was less by 39% than it is now. Delimitation is the process of redrawing the boundaries of parliamentary and assembly constituencies. This process is constitutionally mandated to ensure equal representation based on population. Article 82 clearly empowers parliament to enact the Delimitation Act to redefine constituency boundaries after every census. So far, the delimitation exercises have been conducted 4 times: 1952, 1963, 1973 and 2002. The delimitation processes have been relatively smooth in the past. In 1976, when the 42nd Constitution Amendment Act was passed, the total number of seats was frozen to the current number of seats, based on the 1971 census. This was done to encourage population control measures and was also brought about by keeping the interests of the southern states in mind, which have effectively implemented the population control measures among other factors like faster economic growth. This aimed to ensure the best performing states in terms of population control would not lose in terms of representation. Initially, this freeze was applicable until 2001 census. Subsequently, the Union Government had enacted the 84th Constitutional Amendment Act, which extended the freeze till 2026 census. It is pertinent to look at the long-overdue women’s reservation bill to critically analyse the delimitation bill, as both are inter-related. The current women’s reservation bill has been demanded for almost 30 years. The women reservation bill mandates 33% of total seats in Lok Sabha and state assemblies to women as their population have crossed over 50% in the country. The first women reservation bill was introduced in 1996 by HD Deva Gowda’s government. But this faced huge criticism from the opposition who demanded quota within the quota, and finally, the bill lapsed. Between the years of 1998 to 2004, there were several attempts made by Atal Bihari Vajpayee’s NDA Government to re-introduce the bill, but it did not materialise due to a lack of support in the parliament. In 2008, the UPA government tried to introduce the 108th Constitutional Amendment bill, which was passed by the Rajya Sabha but failed in the Lok Sabha. The final breakthrough was achieved by Modi’s government when 128th Constitutional Amendment Act was passed in 2023. This women’s reservation is applicable to the current SC/ST seats as well. The reserved constituencies change rotationally over a period of 15 years. But this Act was not immediately enforceable, as it depended on the 2026 census or after the completion of the delimitation process. Technically, after the 2026 census, both women’s reservation and delimitation are unavoidable. The reason for the current stalemate is the Modi government’s intention to implement the women’s reservation before 2029, which the opposition fears might generate some positive sentiments among women voters towards the ruling party. If political mileage is the main factor for derailing the implementation of women’s reservation now, women may be forced to wait till 2034 general election, when the next opportune moment would be available. In that context, the 131st Constitutional Amendment Bill to fast-track women’s reservation process by linking it with the delimitation based on the 2011 census data is timely and welcome. The opposition opposed delimitation based on 2011 census data, as they rightly worried about the decrease of the parliamentary representation of the southern states, where they are politically stronger comparatively. However, the Union Government assuaged the apprehensions by assuring that there will be no decrease in current representation in the parliament for the southern states, by proposing a proportionate 50% increase uniformly for all states. If the current 543 seats are to be increased to 850 seats as per the 50% formula, the individual state’s seats, including the southern states, will remain unchanged, as shown in the below table. The very slight deviation arises due to the rounding off, as decimal number of seats cannot be increased. Southern States Current No. of Seats in Lok Sabha Current % of Representation in Lok Sabha Proposed No. of Seats in Lok Sabha Proposed % of Representation in Lok Sabha   Andhra Pradesh 25 4.60 38 4.47 Telangana 17 3.13 26 3.06 Tamil Nadu 39 7.18 59 6.94 Karnataka 28 5.16 42 4.94 Kerala 20 3.68 30 3.53 Average Representation of Southern States   4.75   4.59 Total Representation of Southern States 129 23.76 195 22.94 Source: Authors Calculations Unfortunately, the delimitation bill introduced in April 2026 did not detail the methodology of delimitation. The verbal assurances do very little when it comes to enforcing. We have seen instances like the announcement of special status to Andhra Pradesh by then Prime Minister Dr.Manmohan Singh in Parliament, which never fructified on the ground. The ruling establishment also argues that the delimitation increases productivity of legislatures as they will have less average population they are representing. It also allows diverse people to have a voice in the parliament. Delimitation is very much essential which in turn triggers the much-awaited women reservation in Parliament. These historic and game changing moments can be achieved with consensus from all stakeholders. The recent rejection of the bill allows our policy makers to rethink and re work on the short comings in the current draft with wider consultations across the country. The Author is Public Policy Fellow at AgaPuram Policy Research Centre, Erode The views expressed by the author are personal and does not reflect or represent the views of the AgaPuram Policy Research Centre.  

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Moody’s Meaningless Downgrade of USA

Leave a Comment / Democracy and Institutions, Public Policy, World Economy /

Moody’s Meaningless Downgrade of USA Moody’s Meaningless Downgrade of USA by Shanmuganathan N June 5, 2025 Democracy and Institutions, Public Policy, World Economy Moody’s downgraded the US Government’s credit rating on May 16th from AAA to AA1, citing the uncontrolled increase in government debt over the years. Moody’s also forecasted the debt-to-GDP to rise to 134% (98% in 2024) and the annual deficits to widen to 9% (from 6.4% in 2024) by 2035 as the rationale for the downgrades. The specific numbers are not very important at this stage, and in any case, Moody’s estimates are massive underestimates even from a 2030 perspective, let alone 2035. But more importantly, the agencies are missing the “Forest For The Trees” in their analysis. If one understands the actual state of US Government finances, anything more than a JUNK rating would be an overvaluation. The only significance of the recent downgrade is that this is the first time in more than 100 years that all the major rating agencies have downgraded the top-tier credit status the US Government had hitherto enjoyed. Before the numbers, readers must understand the unique position of the US Government. It is the ONLY government in the world where the external debt can be denominated in the currency it can create out of thin air. No other government has this privilege. That said, this was essentially an “earned” privilege due to the record budget and trade surplus that the US was running under the Gold Standard for more than a century and a half before the formal Bretton Woods agreement in 1944. The US Dollar also maintained its purchasing power over the period: viewed in terms of gold prices, the US Dollar had declined in value from 1/20th an ounce of gold during 1800 to 1/35th an ounce of gold by 1971. That is about a 75% decline in purchasing power over 180 years – almost a steady-state condition in the context of what has happened after 1971. Now for some numbers used by Moody’s: The number almost always used in the context of debt is the National Debt and that is nearing $37 trillion. The US GDP in 2024 was about $29 trillion and so the debt-to-GDP is already at 127%. It is unclear why Moody’s is reporting a lower debt-to-GDP at 98%, but this is probably because of excluding specific categories of debt. It could also be the case that they are using nominal GDP and not real GDP. But as I said in the beginning the specific numbers are not relevant in the context of the US. Let us assume the debt-to-GDP is 200%. Will the US Government default under those conditions? Not in the traditional sense of the word “default” i.e. non-repayment of the US Dollars owed. The US government can always print; even if the debt-to-GDP is 1000%, it does not need to default. Greenspan summarized this best when he said “The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default” So, the debt-to-GDP condition reaching 134% or even 200% does not imply a default as it would for almost any other country. Now comes the critical question – if the probability of default by the US Government is ZERO under any debt condition, and it indeed appears to be the case, as Greenspan stated, then what are these rating agencies even measuring? – It is the default mechanism available to governments in general and, more specifically, to the government that owns the world’s reserve currency, “Default Through Monetary Inflation (DMI).” DMI is a mechanism in which lenders lose not the absolute amount of the currency they lent but the vastly decreased purchasing power of the currency they receive from the borrower. For example, if the borrower had been promised $100 at the end of 5 years during a time of stable prices (i.e., price inflation is zero or close to it) and if the government ran an annualized price inflation of 20% over the subsequent 5 years, then the lender would have lost almost 60% in terms of today’s purchasing power of the currency. The readers need to understand that the mechanism of DMI is an option specifically available only to governments and not to private borrowers. In practical terms, receiving the promised quantum currency that has lost 60% of its purchasing power is the equivalent of taking a 60% hair-cut on the debt with the currency retaining its purchasing power. The latter is indeed an honest default and a preferable option. Therefore, the PRIMARY RISK rating agencies have to measure the US Government against is DMI, not the normal default mechanism that they do for other countries/companies. From the perspective of DMI, the probability of losing substantive purchasing power of US Dollars over the next few years is 100%—maybe even near 100% of the purchasing power, i.e., hyperinflation, and that is increasingly looking like a probable scenario. The Numbers – Deep Dive Though Moody’s focussed on debt-to-GDP as well as deficit %, the latter is not a very meaningful indicator and can display wide fluctuations on an annual basis. The debt-to-GDP on the other hand, is a summary of the historical deficits to date and hence reflects the pattern of US Government spending over decades. Think of debt-to-GDP as the Balance Sheet and the deficit % as the Profit and Loss statement – it will be clear why we should focus on the former from a rating perspective. As one can observe, debt-to-GDP has been on an upward trajectory since 2000, and it has gone up from 55% to over 120% today. This has happened in the context of what is seen as spectacular prosperity – booming stock markets (Dow has gone from 11,000 to 42,000 in the last 25 years) and relatively stable prices (CRB Index has gone from 150 to 360 for a CAGR of 3.5%). This 120+% continues to increase as the annual

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Expansion of City Corporations and Municipalities Merely Does Not Guaranty Quality of Services and Facilities in Tamil Nadu

Leave a Comment / Democracy and Institutions, Public Policy, Tamilnadu Economy, Urban Development /

Expansion of City Corporations and Municipalities Merely Does Not Guaranty Quality of Services and Facilities in Tamil Nadu By B.Chandrasekaran Expansion of City Corporations and Municipalities Merely Does Not Guaranty Quality of Services and Facilities in Tamil Nadu By B.Chandrasekaran Chandrasekaran Balakrishnan January 28, 2025 Democracy and Institutions, Public Policy, Tamilnadu Economy, Urban Development As the nation embarks on Viksit Bharat@2047, its ambitious plan to make India a developed country by 2047, it is imperative that the country develops organically with the local bodies driving the economic development and also benefitting from it. If this opportunity is missed, the gains derived from the 73rd and 74th Constitutional amendments would dissipate. To this end, the second-generation institutional reforms of urban local bodies (ULBs) need to be taken up. Despite new initiatives like Smart City Mission, AMRUT, etc., the ULBs continue to face challenges in providing basic civic facilities like water supply, sanitation, urban public transport, all-weather road connectivity, stormwater and drainage, solid waste management, sewage, public sanitary facility, street lights, safety, and security, etc. Hamstrung by inadequate decentralisation, the local governments are unable to raise funds and channelise development projects to solve physical infrastructure facilities. Moreover, the funds allocated by the states are always disproportionate to the requirements and spending on developmental projects is scarce and riddled with quality issues. Status of Local Bodies in Tamil Nadu Take the case of Tamil Nadu, which envisions becoming a trillion-dollar economy by 2030. While the State is the most urbanised (53% population) in the country, the civic facilities that its cities and town offer to its residents are no different from any other poorly managed cities and towns in the country. The predominant reason is the lack of financial and administrative autonomy of the ULBs. The recent efforts to improve some of the services have also not yielded sustainable results. Given this background, the government of Tamil Nadu has recently announced proposals to expand the existing geographical coverage of urban ULBs limits by merging nearby municipalities into city corporations, town panchayats into municipalities, and village panchayats into town panchayats. Some of the major factors for the expansion of urban areas include increase in population, popular demand from people, and an increase in tax revenues. The following are the key announcements of the Government of Tamil Nadu’s Department of Municipal Administration through the issue of G.Os notified on 31st December 2024: Expansion of 16 municipal corporations including Greater Chennai, Coimbatore, Cuddalore, Dindigul, Erode, Karur, Hosur, Madurai, Salem, Tiruchirapalli, Tiruppur, Avadi, Kumbakonam, Thanjavur, Thoothukudi, and Sivakasi by annexing 4 municipalities, 5 town panchayats and 149 village panchayats; 41 municipalities including Tiruvarur, Tiruvallur, and Chidambaram, are to be expanded by annexing 1 town panchayats and 147 village panchayats; Formation of 13 new municipalities including Kanyakumari, Harur, and Perundurai; Formation of 25 new town panchayats including Yercaud, Kalayar Koil and Thirumayam; and Annexation of 29 village panchayats with 25 town panchayats. Advantages of Geographic Expansion Expansion through mergers increases land values thereby boosting the real estate and related sectors. The expanded city corporations and municipalities may get relatively higher fund allocation for improving the infrastructure development facilities and services. Decentralised regulation of planned development of the city at least on paper if not for implementation in letter and spirit. Disadvantages of Geographic Expansion The citizens of expanded ULBs may bear higher taxes for services like water, property tax, municipal waste disposal, etc. The expansion may result in parent ULBs being unable to cater to the needs of its newer territory. The newly added areas either continue with existing services or face neglect having lost its erstwhile independent identity. Incompatibility between the vision of the parent ULBs and the needs of the merging units. Issues with Expansion through Mergers Often ULBs are expanded for political reasons or to obtain approvals from the Centre for new projects, like metro train services, which require a particular size of population. Further, ULBs are already financially stressed and the state governments do not give adequate funds after the merger, aggravating their financial position. Furthermore, expansion through merger goes against the principle of local governance where small is considered beautiful. There is absolutely no need for mergers just to develop infrastructure, which may be developed as there are. Prerequisites for Expansion Any merger of ULBs should be done only after existing areas of an ULB achieve the desired levels of reasonable, minimum standards of urban infrastructure and quality of life. Further, a thorough study has to be made on the likely benefits and issues with prospective mergers from administrative, financial and other perspectives. If ULBs are really empowered through adequate decentralisation, mergers may be proposed by the ULBs themselves or, they may explore partnerships and sharing of resources without formal mergers. All the decision-making process has to be decentralised, moving closer to the local level and ward level for the participation of people. Only the technical aspects have to be decided at the state or regional level to support ULBs effectively and on timely. Anything on the contrary would create chaos as witnessed in big cities. like recent floods and inundations during regular monsoons. Several years ago, the scheme on Providing Urban Amenities to Rural Areas (PURA), a vision of Dr APJ Abdul Kalam, was implemented in a few states like Andhra Pradesh, Kerala, Maharashtra, Puducherry, Rajasthan, and Uttarakhand. It is a Public Private Partnership scheme with a clear framework for governments, state governments, the private sector, and local government to take advantage of improving facilities and services with 10 years of maintenance services. Why not try something like this new scheme to make our semi-urban and rural areas with all infrastructure facilities? B.Chandrasekaran is an Economist and Founder Chairman of the AgaPuram Policy Research Centre, Erode. Views expressed by the author are personal and need not reflect or represent the views of the AgaPuram Policy Research Centre.  

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State-Democracy-and-Development-Institutional-Perspectives

Leave a Comment / Democracy and Institutions /

Democracy and Development Democracy and Development Chandrasekaran Balakrishnan August 23, 2013 Democracy and Institutions The evolution of any civilisation depends on the formations and functioning of its institutional systems, the interplay of which allows the constituents of the society to pursue prosperity and happiness. The nature of these institutional systems and structures provide the fountainhead for ideas like democracy to germinate and flourish. However, as witnessed all over the world especially after the World War-II, preaching and eulogising about democracy as the ideal political system is much easier than practising and adopting it with all its limitations-political and otherwise. Most of the nations practise democracy in some form or the other and the differences exist only in the scale, times and methods employed. As the basic principles of democracy remain intact, the key question that emerges is which nation practices the most involved kind of democracy? In other words, in which nation has democracy attained its highest maturity? The answer would be relative and not absolute, as democracy like any other virtue would have a never-ending kind of perfection or maturity to be attained. The ingredients that make a nation democratic are so diverse and complex that the process or art of perfecting democracy would always be a work-in-progress. The nature of inclusive institutional systems, degree of economic and political freedom could always be refined and taken to the next level, where the benefits out of such evolution would be, at least, marginally higher than its previous level. The United States of America, which attained Independence way back in 1776, is believed to be having the most-evolved form of democracy. Comparatively, the World’s largest democracy, India has a system that is not as perfect or as evolved as the US. The U.S has a better and more inclusive democratic structure than India. This may be attributed to the high degree of political and economic freedom the US citizens enjoy compared to India, where citizens at best enjoy better political freedom than economic freedom. Nevertheless, both the nations may have to consider their respective democratic set-up as one that could still be substantially improved upon. While countries like the US could continue to work on the political, social and economic elements of democracy, nations like India would have to work on all the three main elements of democracy. The constitution of a country is the foundation for establishing the guiding principles for its inclusive institutional framework, which determines the endeavour of its citizens. As many nations have drafted their constitution based on the basic human values and principles practiced in other nations, inclusiveness has to be a definite outcome of a constitution. However, factors like ethos, history, cultural values of each nation also substantially decide the character of a nation. It is these basic yet significant elements that determine the nature, quality and direction of the democratic system practised in a nation. Making Democracy Work Better in India India, like other democracies, has come a long way during the last 65 years to make its democracy more inclusive. Unlike some of other nations, India has a strongly worded, well written and longest constitution in the world. As Dr.Pratap Bhanu Mehta rightly says that “the Indian constitution was self-consciously anti-revolutionary. This is manifest in all the debates in the Constituent Assembly at that time; its members knew very well that change would be slow and gradual. The political culture was one of democratic argument and decision-making based on consensus, initially embodied in the structure of the….practices of coalition politics”. Though the achievements in practising and perfecting democracy in India in the last 65 years may seem to be less satisfactory, the achievements in the three main spheres of democracy are worth cherishing. Improvements in the quality of freedom in the political and economic elements of the nation are considerable during this period. In a way, the relative success of Indian democracy is amazing considering the orderly interaction of the seemingly disorderly components of its society, polity and economy, primarily due to its cultural, linguistic and traditional complexities and diversities. Noted Indian historian Dr. Ramachandra Guha in his famous book “India After Gandhi: The History of the World’s Largest Democracy” describes at least five social forces which are of pre-eminence in the social landscape of contemporary India after Independence. All these complex elements of class, religion, language, caste and gender are highly interdependent and the interplay of these factors shapes the society and its democratic institutions. According to Dr. Guha, “contemporary India is a democracy based on adult suffrage, with a free press and a largely independent judiciary. At no other time or place in human history have social conflicts been so richly diverse, so vigorously articulated, so eloquently manifest in art and literature, or addressed with such directness by the political system and the media”. Besides these social elements, there are also other economic and political elements that eventually guide the formation and functioning of the institutional structure and systems of the democracy. The differences and incompatibilities between these elements create the intricacies and shortfalls in the constitutionally created democratic institutions, which determine the quality and extent of democracy that prevails in the country. Further, Dr. Guha goes on to say that “democracy in India will turn out to be ‘more significant’ than comparable experiments in West”. This kind of optimism and faith is based on the strength of some of the successful and independent democratic institutions like the Supreme Court, Election Commission, Comptroller and Auditor General, etc. According to Professor Ashima Goyal, “India started out with highly inclusive political institutions since it adopted democracy with universal suffrage at independence. But extractive economic institutions, inherited from the British, were made more so by economic controls.” It is because of the control raj in economic domain especially during the period 1966-1977, that the Western pundits painted a gloomy picture about democracy in India. As always in the past, Indian history disproved them once again. Indeed, the experiments with democracy in India have

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