Volume 09 Issue 09

OIDA International Journal of Sustainable Development
Open access peer-reviewed journal 

Looking at Regulatory Mechanism of India’s Public Distribution System through Food Security Lens
Padmaja Kaja a, Kiran Kumar Gellaboinab 
a,b Centre for Good Governance, Hyderabad, India. 

Volume 09, Issue 09, Pg. 11-19, 2016.

Abstract: India’s largest food security programme i.e. Public Distribution System (PDS) is being governed and regulated by Public Distribution System (Control) order, 2001 which was subsequently amended in the years 2004 and 2015.  In 2015 it transformed into Targeted Public Distribution System (Control) order. Providing legality to such a gigantic programme is intended for its effective implementation. Public Distribution System aims to provide food to the population below poverty line at highly subsidised prices. This Indian Government’s prestigious programme involves a massive population, highest food subsidy bills to country’s exchequer. This enforcement has a huge role in providing fair stake to food to every poor person in the country. This order has provisions for supply and distribution, price control and fair access to food grains. It resulted in availability of food grains to millions of poor people at an affordable price. However, there was a change in philosophy with respect to provisioning of food grains with the enactment of the National Food Security Act 2013, since before this Act the supply of food grains under PDS was treated as a welfare measure only. After this legislation, the beneficiaries secured a legal right to get the food at a fair price through the PDS. Presently in most of the states the PDS is being regulated by both TPDS (Control) Order, 2015 and National Food Security Act, 2013. However, it was criticised for its inefficient beneficiary identification like higher error of inclusion of ineligible beneficiaries and exclusion of eligible beneficiaries and leakages in the entire supply chain and quality of food grains. This paper examines different provisions of the regulatory mechanisms that are governing the PDS in food security angle. It relies on secondary research along with, focus group discussions with the stakeholders. It will be discussed in detail with case study of Indian state of Telangana. Section 3(1) of NFSA ensures five kilograms of food grains per person per month which definitely meet the carbohydrate requirement of the population. However, it may not ensure nutritional security because the poor are not entitled for the protein diet. It is statutory to cover up to 75% of rural population and 50% of urban population under NFSA.   In the instances like war, flood, severe drought where the states are not in a position to supply food grains, this act has a provision to provide food subsidy allowance which indirectly ensures food security to the poor. Digitization of all the PDS beneficiaries, “Aadhaar”seeding, end to end computerization of PDS would reduce the leakages in the system which indirectly benefits the poor in accessing the right amount of food to which they are entitled to. 

Key words: digitization; food security; public distribution; regulatory mechanism; supply chain

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The effect of conditional conservatism on cost of debt and mediation role of CSR disclosure:
Empirical evidences from IDX
Idrianita Anis a, Sidharta Utama b
a Accounting Department, Faculty of Economic and Business Trisakti University, Jakarta Indonesia.
b Faculty of Economic and Business, University of Indonesia, Depok, Indonesia.

Volume 09, Issue 09, Pg. 20-35, 2016.

Abstract: A number of previous studies have found evidences that corporate social responsibility disclosure (CSRD) are positively related corporate sustainable performance. These result indicate that socially responsible firms have good management system, more transparent, good reputation that will impact to financial outcomes. Other significant findings regarding CSR initiatives shown that CSR reporting has positive market consequences, where social responsible firms is likely to have ease of access to financing. A number of studies have been conducted with consistent result to consensus that the higher level of CSRD, the lower cost of  equity capital. However very limited studies have been conducted to study relation of CSRD and cost of debt. Further studies about this topic are important because debt financing play an important role as  external financing to enhance firms’ growth. Characteristics of debt market which is less risky and less volatile than  equity market, attract wider coverage of firms to implement CSR practices.  Under contracting theory, the banks as dominant lenders require borrowers to adopt accounting conservatism principle in their debt covenant. Accounting conservatism  is a mean of constraining moral hazard caused by parties of the firms having asymmetric information, asymmetric pay-off. Especially in the debt contract the existence of conservatism as stringent standard in revenue recognition largely derived from the need to protect the lenders. Scholars argue  CSRD that are prepared under spirit of conservatism could be perceived to give information to predict borrowers’ risk. This study aimed to find evidences how CSRD could effect in lower COD. This research is questioning “Do banks  give value on CSRD on their lending decision?” This study argue that quality of CSRD should be determined by level adoption of accounting conservatism adopted in firms accounting system. This research proposes to examine  direct effect of conditional conservatism (CONSV) on COD, and the indirect effect of CONSV on COD through mediation role of CSRD. In addition we propose to examine three links: 1) Whether CONSV have negative effect  on COD, 2) Whether CONSV have positif effect on CSRD, and 3) Whether CSRD have negative effect on COD. This study using sample manufacturing firms listed at Indonesia Stock Exchange (IDX) period 2011-2014. This research consider CSRD as endogenous variable that is predicted to have mediation role on the relation of CONSV and COD. Result of endogeneity test showed CONSV  and audit committee mechanism (ACM) are instrument variables for CSRD. Furthermore we use ordinary  least square (OLS) to examine link.1 and 2, and  two stages least square (TSLS) for link 3. The result show that: 1) CONSV  have no significant effect on COD directly, 2) CONSV have no significant effect on CSRD, while ACM have positive effect on CSRD, 3) CSRD have significant mediation role, where endogeneity variable CSRFITT have negative effect on COD. Result of examination led to conclusion that banks gave value to CSR disclosure in their lending decision. CSR disclosure is perceived to give additional information for bank in assessing borrowers’ risk, when there are no adequate conservatism level. CSRD could be perceived as representation of good management and good governance of the firm that can give assurance in bank lending decision.

Keyword: Audit committee mechanism, Borrowers’ risk, Conditional conservatism, CSR disclosure, Cost of debt, Estimation risk.

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Analysis about the Influences of Good Public Governance, Trust toward Tax Compliance on Public Companies that Listed in Indonesian Stock Exchange
Meco Sitardja a, Susi  Dwimulyani b
a,b Accounting Doctoral Program, Faculty of Economic and Business, Trisakti University, Jakarta, Indonesia.

Volume 09, Issue 09, Pg. 36-43, 2016.

Abstract: This study aimed to examine the influence of good public governance on tax compliance with trust as intervening in the non financial companies listed in Indonesian Stock Exchange (IDX). The data used was obtained using SEM-PLS of 87 years observation of non financial companies for the period 2014. Tax Fairness was evaluated using questionnaires based on Saad (2009); Tax transparency was evaluated using questionnaires based on Rawlins (2008); Trust was evaluated using questionnaires based on Mayer et al (1995) and Benk and Budak (2012); and Tax compliance was evaluated using questionnaires based on Jackson et al (1986). Model analysis of the data testing was performed by structural equation modeling with approach partial least squares (SEM-PLS) that supported by SmartPLS 3.0 as statistic tool.

The results showed a significant and positive relationship between two dimensions of good public governance (tax fairness, tax authority reputation and tax transparency) and trust. Then, this result also showed that a significant and positive influences of tax fairness, and trust to tax compliance. And, this result showed that a significant and positive indirect influences of tax fairness and tax transparency to tax compliance with trust as mediating variable. 

Keyword: Good public governance, trust, tax compliance

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The Freedom of Information Act: Creating a Template for Good Governance in Nigeria?
Charles  Olufemi Adekoya
  Department of Jurisprudence and International Law and   Faculty Clinical Legal Education Programme, 
Faculty of Law, Olabisi Onabanjo University, Ago-Iwoye, Nigeria.

Volume 09, Issue 09, Pg. 44-57, 2016.

Abstract: The paper examines Nigeria’s Freedom of Information Act, 2011 on access to information in the context of the entrenched culture of secrecy in the conduct of government business, the resultant exclusion, lack of responsible government, endemic corruption, massive infrastructural gaps, grim poverty, underdevelopment and growing insecurity in the country. The paper analysed the freedom of information legislation, the high expectation that greeted the coming into effect of the norm setting law and its potentials in serving as a template for fostering inclusion, transparency and accountability in public service towards the enthronement of good governance in Nigeria. The paper concludes that the freedom of information law has potential to foster inclusion and good governance in Nigeria if properly utilised. The paper however recommends, among others, that if freedom of information is to be taken seriously in Nigeria, there is need for government to deploy massive resources towards the promotion and education on freedom of information law in order to encourage its effective use and bring about the desired positive changes in public service and governance; and that judicial officers should be trained on access to information rights and implementation of the Nigerian legislation in order to build their capacity to efficiently adjudicate on cases that may be brought before them. 

Keywords: Access, Governance, Information, Transparency 

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Sustainable Development Governance of the Energy Sector in Malaysia
Marcus Lee
Northumbria Law School, Northumbria University, Newcastle City Campus, 
2 Ellison Place, Newcastle upon Tyne NE1 8ST, United Kingdom

Volume 09, Issue 09, Pg.58-69, 2016.

Abstract: The subject of this paper is about sustainable development governance, with a particular focus on the Malaysian energy sector.  This paper starts by delving into how sustainable development is defined and perceived.  The paper also discusses whether sustainable development is now ready to be considered a principle of law or whether it remains a concept.  The link between sustainable development and governance, in particular how governance contributes to the objectives of sustainable development is explored subsequent to the themes above.  Following a discussion exploring key principles, themes and concepts, a brief country profile is given to cast a picture of the stage of growth Malaysia is in and explain Malaysia’s development.  The energy sector is also then discussed along with the challenges of the key renewable energy sources utilised in Malaysia.  The penultimate discussion involves Malaysia’s strategy for the energy sector, including how it relates to the United Nation’s Sustainable Development Goals.  Malaysia’s Sustainable Consumption and Production initiative, which is part of Malaysia’s strategy for the energy sector, is also given focus.  Rounding off the considerations made in this paper is an evaluation of possible theoretical approaches that give a framework view and understanding of how Malaysia may address its sustainable development challenges of the energy sector.  

Keywords: Ecological Sustainability, Governance, Malaysia, Renewable Energy, Sustainable Development.

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