1.

How to judge the judges

KP 21st Century IAS

GS2 - Judiciary
Issue
Recently, the law department in Gujarat, on the recommendation of the Gujarat High Court,
cracked the whip on 17 judges from various cadres in lower courts, ordering their retirement for
unsatisfactory performance. News reports suggest that these judges were issued notices to improve
their performance but their failure to heed to these warnings led to the government taking this
drastic step.

Assessing judges, India and abroad

Lower court judges in India are evaluated through a system of Annual Confidential Reports
(ACRs), which are completed by the senior-most judges of the lower court, and reviewed by the
State High Court.
But ACRs are neither filled up regularly nor is the evaluation process transparent. Concerns about
this lack of due process have even reached the Supreme Court, which early this month summoned
the Registrar General of the Delhi High Court to explain why a lower court judge was marked as
integrity doubtful without material basis.
Views
Almost all the individuals surveyed said that there should be a system of performance appraisal of
judges, particularly of the higher judiciary. Most survey respondents believed that such appraisal
would lead to greater accountability, transparency and better and efficient functioning of judges.

How it started?
In USA - Evaluating judges performance through periodic reviews and evaluations is a common
practice across jurisdictions. Formally known as Judicial Performance Evaluation (JPE), the
system of periodic assessment of judicial performance originated in the U.S. Sitting judges were
evaluated to inform voters about a judges performance record for retention elections. Retention
elections allow the public to vote for or against the continuing tenure of judges. JPEs became
institutionalised over time, and are now regularly followed across the U.S., with most States
incorporating provisions for evaluating judges in their constitutions.
In EU - In the European Union, the European Commission for the Efficiency of Justice conducts a
periodic performance review of court systems of different member states. This country-wise study
collects data on various parameters, including the efficiency of courts in justice disposal, the costs
per case, and the budget of courts. The outcome of this exercise is the EU Justice Scoreboard,
published annually, rating the working of justice systems across member states.
JPE programmes suggestion
Studies of JPE programmes suggest that parameters for evaluating judicial performance may be
qualitative as well as quantitative. These include

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the rate of disposal of cases by a judge,

the quality of judgments and legal reasoning,
knowledge of the law, behaviour towards lawyers in court proceedings,
Independence and transparency.

JPE programmes initially tend to use objective criteria to evaluate judges, eventually moving
towards more qualitative criteria when systems have evolved sufficiently to reduce likelihood of
bias and subjectivity in assessment processes.

In India - Judges in India are nominated or appointed through examination processes and not
elected as in the U.S. Therefore, JPE programmes here would not work the same way as in the
U.S., where they were formulated to give voters information on judges before retention elections.
However, studies of JPEs show that besides providing information to voters, these programmes
also serve the purpose of increased transparency and accountability of the judiciary.

Way Forward
While measuring judicial performance, a delicate balance needs to be struck. Scholars have
expressed reservations that performance evaluations could compromise the independence of the
judiciary. To avoid this, a JPE programme is best devised by the judiciary itself, instead of by the
government.
For e.g. The Madras High Court, for the first time, has come out with qualitative as well as
quantitative performance assessment of its judges this year. This exercise was met with mixed
reactions from lawyers, some of whom felt that this could unduly pressurise judges to dispose
of cases, and encourage indiscriminate disposal rather than delivering justice. Despite the
opposition from a section of lawyers, this is precisely the sort of performance evaluation courts
should start conversations about.
The first step towards such evaluation should be the objectives of such evaluation, such as
improving quality of justice, pendency rates, and so on. A joint consultation could be held with
stakeholders, including judges, lawyers, academics and members of civil society to understand
how best to initiate such a system in India. All these steps would help India work towards higher
standards and greater accountability in judicial functioning.

2. RBI allows startups to raise $3 million via ECBs annually

GS3 - Economy
Issue
The Reserve Bank of India (RBI) has permitted startups to raise external commercial borrowings
(ECBs) of up to $3 million in a financial year for three year tenure The new rules issued by RBI
aims at boosting innovation and promoting job creation in the country. It will apply to startups
looking to raise foreign borrowings and restrictions on such funds will be kept minimum.

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Facts
Under the ECB route, borrowing of start-ups should be denominated in any freely
convertible currency or in Indian Rupees (INR) or a combination thereof.
In case of borrowing in INR, the non-resident lender, should mobilise INR through
swaps/outright sale undertaken through bank in India.
Under this, Funds can be raised with a minimum maturity of 3 years. There will no costceiling or restriction on the end use of the funds raised.
The borrowing can be in form of loans or non-convertible, optionally convertible or
partially convertible preference shares and minimum average maturity period will be 3
years.
The ECBs can be raised from a country which is either a member of Financial Action Task
Force (FATF) or either through FATF-Style Regional Bodies.
Overseas branches and subsidiaries of Indian banks and overseas wholly-owned subsidiary
or joint venture of an Indian company will not be considered as recognised lender.

What is External Commercial Borrowings (ECBs)?

Any money borrowed from foreign sources for financing the commercial activities in India are
called ECBs. The Central Government permits ECBs as a source of finance for Indian Corporates
for expansion of existing capacity as well as for fresh investment. Thus, ECBs are defined as money
borrowed from foreign resources including the following: (i) Commercial bank loans (ii) Buyers
credit and suppliers credit (iii) Securitised instruments such as Floating Rate Notes and Fixed
Rate Bonds etc. (iv) Credit from official export credit agencies and commercial borrowings from
the private sector window of Multilateral Financial Institutions such as World Bank, ADB, AFIC,
CDC, etc.

3. Global wildlife population declines by 58% in 42 years since 1970:

WWF report
GS3- biodiversity and environment and prelims.
Global wildlife population have declined by 58% between 1970 and 2012 as a result of human
activities and the number could reach nearly two-third, or 67%, by 2020!!! said a World Wildlife
Fund (WWF) report.
About report
The Living Planet Report is published every two years by WWF and aims to provide an
assessment of the state of the worlds wildlife.
The Living Planet Report 2016 report highlights the magnitude of human impact on the
planet and highlights the changes needed in the way society is fed and fuelled.
Why To Pay Attention?
Because, in words of United Nations Secretary-General Ban Ki-moon "there can be no
Plan B, because there is no Planet B."
Researchers are already calling this period the Anthropocene, an era in which human
activities are influencing changes in the climate and the environment.

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The researchers conclude that vertebrate populations are declining by an average of 2%

each year.

Why Should We Bother About Wild Life

Biodiversity forms the foundation of healthy forests, rivers and oceans. Take away species,
and these ecosystems will collapse along with the clean air, water, food and climate services
that they provide us.
What Is Threatening Biodiversity
Top threats are human activities, including habitat loss, degradation and overexploitation of
wildlife.
The report states that food production to meet the complex demands of an expanding
human population is the primary factor responsible for the destruction of habitats and
overexploitation of wildlife. At present, agriculture occupies about one-third of the Earths
total land area and accounts for almost 70 % of water use.
The report stated that India ranks fifth in terms of bio-capacityan ecosystems capacity to
produce resources such as food, fibre and renewable raw materials and absorb carbon dioxide .
Indias carbon footprint currently makes up 53% of the countrys overall Ecological Footprint!! So
immediate action plans and reforms are required.
Way Forward
humans need to rethink how they produce, consume, and value the natural environment.
Paris climate deal will kick in from 2020 and international biodiversity targets set for 2020
must be met up to achieve the reforms
SDG plans are due and when started one must strive to achieve it.
SDG no 13-Climate Action - Take urgent action to combat climate change and its
impacts by regulating emissions and promoting developments in renewable energy

4. The case for gender diversity in Indias VC industry

Gender diversityThe lack of gender diversity in the venture capital business isnt a problem thats
restricted to the silicon Valley.Indias venture capital industry also follows in the tradition of being
a boys club. This isnt surprising given that much of the industry in India is largely an extension of
the one in the Valley.
Indias venture capital industrys lack of gender diversity is somewhat at odds with the overall
financial sector here.there are good number of women breaking the glass ceiling in the banking
sector.
India, according to a study by software industry lobby Nasscom and consulting firm Zinnov, is now
the worlds third largest hub for technology start-ups and There is no reason the ongoing start-up
wave cannot be more inclusive for women. I

5. Ways out of the GST maze

KP 21st Century IAS

GS3 - Economy
What is Laffer Curve?
Laffer's Curve establishes a relationship between Tax rates and the Government revenues. It says:
the government revenues would increase with increase in taxation up to a certain
point(threshold/maximum tax rate) beyond which it would start waning. But, it fails to explain
what the ideal tax rate would be. Similarly, there has been a dilemma in GST council over the
proposal of imposing 4 tax slabs(the ones that wont make GST regressive) in the GST regime- that,
if this would demean the very purpose of GST of having a Single tax rate; and if implemented what
would be the ideal rates.
The GST council is mulling to impose variety of cess on luxury goods with the main objectives as:
A. Mobilisation of Funds: The CA requires the centre to compensate for the loss in revenue of
states for 5 years. This might give a pressure on the national exchequer, government might get into
domestic or local borrowings- this, may result in loss of credibility, increase the cost of borrowing
by the centre. Increasing direct taxes isnt the way.
B. Constructive Activities: The application of cess would solve a dual purpose of not putting extra
pressure on the central government by giving it profit, plus, the extra revenue earned can be used
for constructive purposes like renewable energy. This would help us to reduce our carbon foot
print and contribute towards our INDCs.
C. Progressive Taxation: India has inequalities existing. Every items cant just be taxed at an
uniform rate. For example, An Audi and a Bata sleeper cant just be taxed at the same rate- for, the
former being afforded by well to do, and the latter a product for a common man. Thus, the wealth
cess, would be progressive and it would compensate for the proposed Wealth Tax. Many of the
luxurious items are exported- higher rates would discourage people from opting those over Indian
products and encourage the initiative of Make in India.
D. Demerit Cess- This would discourage people from using those products like tobacco, alcohol,
etc.
Why It Is Good For The Economy:
*Doesnt create extra pressure on either the Government or the customers.
*Increases the revenue of the government.
*Addresses the inequalities.
Why Isnt It Good:
* Makes the price higher- leads towards inflation.
*Verity of rates may affect the ease of doing business; seeing reduced demand for increased rates,
investors might change their locations- would affect employment.

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*There are much amount already there, obtained from cess like that of Education Cess, without
being properly utilised. Thus, would reduce the circulation of money in the economy.
*No clear definition of luxury goods- the one thats a luxury for some might be a necessity for the
other.
Cess may be a good way to compensate the states as per the amendment. But, this shouldnt be
made a long term strategy of mobilising the funds. Other alternative sources like bringing in FDI,
prudent taxation measures to avoid Tax evasion would go a long way to increase the revenue base
of the government.