Mentors Comments:
- Discuss the character of MNCs first with specific examples showing their disregard for human welfare.
- Then discuss various mechanisms at national and global level to address the deficiencies in policies and institutions.
Answer:
Developing countries are attracting a significant portion of global Foreign Direct Investments. Governments of such countries often compete fiercely for attracting Multinational Corporations (MNCs) in the expectation of the advantages they will bring to their economies, often prioritizing economic goals over fundamental human rights and environmental conservation. The fierce competition often leads to defective policies by these governments, which are the reason for disasters in many countries. The Bhopal Gas tragedy in 1984 was a consequence of defective policies of the government and exploitative character of the MNCs.
To prevent a “second Bhopal” from happening, developing countries need to rethink their strategy of economic development to balance the economic goals and its repercussions on the environment and human welfare. Strategies to control the exploitative character of MNCs can be classified under two broad categories namely at National and Global level.
National Measures:
National level measures require changes in the legislative, regulatory and administrative framework, which should ensure that not only adequate institutions are placed but have the necessary authority to balance the required of economic development and human welfare. Some of the measures required are:
- Corporate Governance norms should be strengthened and strictly monitored. Adequate regulatory complex mechanisms should be put in place along with enforcing accountability for any lapses.
- Regulatory institutions should be strengthened to address the concerns of people at large.
- In India, we have mandated corporations to spend a specific amount of profit as a corporate social responsibility (CSR). Institutional changes are required in this area to ensure compliance.
- Capacity building for environmental and social audit of the activities of the MNCs. Social Impact Assessment should be made mandatory of any major project. Further, adequate information about any project should be placed in the public domain and disseminated to the local population.
- Through tax inducements and non-monetary incentives, MNCs can be forced to self-regulate their functions.
- NGOs and community organizations can play an important role to ensure that MNC’s not only complied with the regulatory norms but also disseminate complete information to the local community about any danger.
- Mock drills could be organized to ensure adequate response in case of any industrial disaster.
- Government should ensure that any major project should undergo an Environmental and Social Impact Assessment and the report should be widely discussed with all stakeholders.
International:
On the global scene, the global industrial watchdog organization must be instituted, similar to an international environment protection act. The main objective for this organization would be to set standards for the operation and behaviour of multinational corporations. The Permanent People’s Tribunal has drafted a “Charter of Industrial Hazards and Human Rights.” The Charter draws together all of the lessons to be learned by the Bhopal disaster to emphasize the need to pay closer attention to industrial activity across the world. This charter should be put into action with the aforementioned regulatory body.
International best practices should be documented and widely disseminated. International bodies like WTO should draft adequate guidelines for the operationalization of MNC’s ensuring that the development dimension is adhered to in any major project balancing the interest of the MNC and the state.
The above measures though may help in creating a better world, but unless every citizen feels that he is a part of the global village and there is a global solidarity for creating a better world, there would always be questions pointing what is development and development for whom.
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What is the point of mentioning the Deo ad in this question? Please be mature with your content which should reflect the actual interrogation of the question.
In fact, the 2nd points is very good and it has ethical dimensions covered in it. That should be the kind of examples that you must quote.
The overall answer lacks content and depth.
The major talking points that you could have covered in the 1st part of the main body were prioritizing economic goals over fundamental human rights and environmental conservation, defective policies by governments, exploitative character of MNCs, disasters like Bhopal Tragedy.
Similarly, as mentioned in the question as well as the mentor comment, you have to provide solutions in two parts: way forward for India and way forward for the global system.
You failed to bring balance in the way forward.
Read the model answer for better points in your answer.
Avoid too much cutting in your answers.
@Parth Verma
Hello sir,
I was bit irregular last month but this month i am trying my fullest to improve my answers but still answers are getting deteriorated. For some question i use to get 5-6 marks but on the other facet i am getting 2 also. How should i do that? please get me the way out of it
parth sir?
Hi Deepanshu
First of all, understand the demands of questions. If they are of 10 marks then you should have 3 4 bullet points in each subheading and if its 15 marks then they should have minimum 6 points in each subheading. This is called the depth of the content. It is missing in your answer.
Secondly, avoid lengthy bullet points. The very purpose of bullet points is to shorten the points and explain in very less words. You are overexplaining a bit in your answers. Avoid it.
In terms of structure, you have improved a lot. To make it better, read the questions carefully and break them into pieces.
Whenever discussing any issue, try to give arguments from both sides, be it +ve or -ve.
But again, the major improvement needs to be in the depth of the content.
Sure sir, with your guidance this would be easier. Now i would work on your comments and everything would be improved shortly i guess.
Thank you
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Good intro.
All in all, a very good discussion.
The division of subheadings is very good which makes your structure very good.
The content and explanation have clarity.
The way forwards are very good.
The language is very good and the explanation is crisp
All in all a good answer
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No need to write full questions.
The 1st part of the answer is dealt with nicely.
But improvement is required in the 2nd part where you discussed the way forward.
You have to provide solutions in two parts: the way forward for India and way forward for the global system.
Your content is good in the way forward but then it needs to be discussed keeping these two subsects in mind.
Underline the imp stuff.
Good intro
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