editor’s messagegs1: important geophysical phenomena and changes in critical geographical features...

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Editor’s MessageThis is not a journalistic venture but an academic one designed to handhold keen and sincere UPSC aspirants. We do not claim this to be yet another surrogate window to the world. We are sure, nevertheless, that you would find this venture novel as well as useful.

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In This Issue

Sl.No.

Topics GSPaper

Page No.

1 Monsoon Deficit and Water Stress in India GS I 4

2 Sustainable Development Goal - Gender Index and Equal Measures 2030

GS I 9

3 Significance of BIMSTEC GS II 154 Draft National Education Policy 2019 and Issues around GS II 205 Sudan Crisis and Ouster of Bashir GS II 256 Shanta Kumar Committee GS II 297 Hong Kong Protests and related issues GS II 368 Code on Wages Bill GS II 419 India’s Foreign Policy Challenges and Prospects GS II 4710 Need for the Simultaneous Election GS II 5211 A High Powered Committee to be set up for Agriculture GS II 58

12Issues with the Civil Service – Selection, Training and Periodical assessment

GS II 63

13 Libyan Crisis and the aftermath GS II 6914 Acute Encephalitis Syndrome in Bihar and Malnutrition GS II 7415 NCRB’s Prison Statistics India 2016 GS II 8016 NITI Aayog’s Health Index 2019 GS II 8717 National Registry of Citizen and the Mohammad Sanaullah’s Case GS II&III 9218 Blacklisting Pakistan under FATF GS II&III 9819 Liquidity Risk Management Framework for NBFCs and CICs - RBI GS III 10320 Why India needs a Solar Manufacturing Strategy? GS III 10921 Impact of Air Pollution on Human Health GS III 11522 St. Petersburg International Economic Forum GS III 12123 Need for a Legal Framework for Artificial Intelligence in India GS III 12624 SEBI Norms for Credit Rating Agencies GS III 13225 Agricultural Credit in India and issues around GS III 13826 India as an Innovation Economy GS III 14427 Report Card on Left Wing Extremist Hit States GS III 14928 U.K. Sinha Committee on MSMEs Sector GS III 153

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Monsoon Deficit anD Water stress in inDia1

GS1: Important Geophysical phenomena and changes in critical geographical features

What is the Issue?

• Apparently,about40%ofthecountryisfacinganacutepaucityofpre-monsoonrain,causingseverewaterdistressinscorchingheat.

BACKGROUND

• Rainfedagriculturecontributesto60percentofthevalueofagricultureGDPofIndia.

• About61percentofIndia’sfarmersrelyonrain-fedagricultureand 55 per cent of the gross cropped area is under rain-fedfarming.

• Rainfedcropsaccount for48percentareaunder foodcropsand68percentundernon-foodcrops.

• Indiaranksfirstamongtherainfedagriculturalcountriesoftheworldintermsofbothextentandvalueofproduce.

• Duetopopulationpressureonagriculturallands,thepovertyisconcentratedinrainfedregions.

• Despiteallthese,rain-fedareascontributedsignificantlytothecountry’sfoodproduction.

• Theyaccountfor89percentofmilletsproduction,88percentofpulses,73percentofcotton,69percentofoilseedsand40percentriceproductioninthecountry.

Water Scarcity Profile of India

• Indiaissufferingfromtheworstwatercrisis initshistoryandmillionsoflivesandlivelihoodsareunderthreat.

• Currently,600millionIndiansfacehightoextremewaterstress

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andabout two lakhpeopledieeveryyeardue to inadequateaccesstosafewater.

• By2030,thecountry’swaterdemandisprojectedtobetwicetheavailablesupply,implyingseverewaterscarcityforhundredsofmillionsofpeopleandaneventual~6%lossinthecountry’sGDP.

DISCUSSION

Rain Deficit Scenario in India

• Though summer droughts are very common, the extent andintensityofariditywitnessedthisyeararerare.

• Theraindeficithasbeenashighas48%inthesouthernpeninsula,especiallyTamilNaduandcoastalKarnataka.

• Itisnearly30%inwesternIndia,notablyGujaratandlargepartsofMaharashtra,and17%and12%intheCentralandnorth-eastregionrespectively.

• Shortfalls of 70 to 80% have also been reported from someplaces.

• The overall countrywide average rainfall between March andMay,2019remained23%belownormal.

Monsoon Forecasts Indications

• Theraindeficitconditionsacrossthecountryareamatterofgraveconcern.

• Buttheredeemingfactor isthattheonsetofthemonsoonisroundthecorner.

• The rain during the 4-month monsoon season (June toSeptember)isanticipatedtobewellspreadout.

• It is also expected to be quantitatively normal or somewhatbelownormal.

• The India Meteorological Department (IMD) forecast hassuggested rainfall tobe likelyaround96%of the long-periodaverage(LPA).

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• Ontheotherhand,privateweatherforecasterSkymethasputitat91%.

Persisting Concerns

• Theproblem is thatboth IMDandSkymethaveforecast thatthemonsoonwouldbesluggish/slowtobeginwith.

• Thereasoncitedforthis istheexistenceofElNino(warmingup of the Pacific Ocean), which often impairs the monsoonperformance.

• Also,IMDandSkymetdifferontheprogressionofElNino.

• TheIMDexpectsElNinoconditionstoturnneutralinthesecondhalfoftherainyseason.

• But Skymet reckons it to last thewhole season, even if in aweakerform.

• So clearly, there is apossibledelay in relief from the currentwatercrisisinsomeareas.

Government Initiatives Against Erratic Monsoon

• NITI Aayog’s compositewatermanagement Index (CWMI) isamajorsteptowardscreatingacultureofdatabasedecision-making forwater in India,which can encourage ‘competitiveandcooperativefederalism’inthecountry’swatergovernanceandmanagement.

• TheNDMAguidelinesonmanagementofdroughtareissuedin2010.

• NationalRiver linkingprogrammes isalsogivean impetus tothegovernmentplantofightagainsterraticmonsoon.

• There was a policy bias against farmers working in rain-fedsystems,thelatestmoveofgivingincomesupporttofarmers,howeverlittleitmaybe,isaprogressivestep.

Favourable Factors

• Ofthethreemainfacetsofdrought(meteorological,hydrological,agricultural), the present conditions conform chiefly to the

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meteorologicaldrought(rainfallinadequacy).

• Onlyinsomeareas,aridityhasaccentuatedtocausehydrologicaldrought,reflectedinexhaustionofthesurfaceandgroundwaterresources.

• Theoverallhydrologicalprofileofthecountryisstillpositive.

• Thetotalwaterstock in91majorreservoirsmonitoredbytheCentralWaterCommissionisaround14%abovethelastyear’scorrespondinglevel.

• Itis3%higherthanthelong-periodaverage(May,2019data).

• Agriculturaldroughthas,byandlarge,beenavertedastherabicropshavemostlybeenharvestedandthekharifonesareyettobeplanted.

Issues with the Rain Fed Agriculture in India

• Aclear-cutbiastowardsirrigatedareaswhenitcomestopublicinvestmentinagricultureinthecountry.

• Unsuitable programme design has ensured that potential ofrain-fedareasremainsunrealised.

• Rainfallishighlyunreliable,bothintimeandspace,withstrongrisksofdryspellsatcriticalgrowthstagesevenduringgoodrainfallyears.

• RainfedareasinIndiaarehighlydiverse,rangingfromresourcerichareastoresource-constrainedareas.

• growingfarmsuicidesinrainfedareas.

• Green Revolution bypassed the less-favored rainfed areaswhich were not the partners in this process of agriculturaltransformation.

Way forward

• Anenduringsolutiontotherecurringwatercrisislargelyliesindrought-proofingthevulnerableareas.

• In-situconservationofrainwatershouldbeakeypriorityinthisregard.

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• Theneedistoconstructrainwater-harvestingstructuresatthefield,villageandwatershedlevels.

• Eitherdiggingpondsorputtingupcheckdamsatsuitablesitesonthenaturalwaterdrainageroutesshouldbetakenup.

• Thisisatime-testedwatermanagementpracticethathashelpedpeoplesurviveeveninthechronicallyaridareas.

• Piecemeal measures as isolated water conservation worksunder the rural employment programmes can, at best, offeronlylimitedgains.

• Sowhatisneededisabroad-basedplanning,keepinginviewthewholewatershed,transgressingvillage,districtorevenstateboundaries.

#Practice Question

1. Doyou thinkRain fed farmersare themostneglected in thecountry?Analysethereasonsforthisneglecttowardsfarmersthroughouttheages.(200words)

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sustainable DevelopMent Goal - GenDer inDex anD equal Measures 2030

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GS1: Role of women and women’s organization, population and associated issues

What is the Issue?

• TheSDGGenderIndex,anewindextomeasureglobalgenderequality,waslaunchedrecently.

BACKGROUND

• TheSDGGenderIndexhasbeendevelopedbyEqualMeasures2030,ajointeffortofregionalandglobalorganisationsincluding:

• AfricanWomen’sDevelopmentandCommunicationNetwork

• Asian-PacificResourceandResearchCentreforWomen

• BillandMelindaGatesFoundation

• InternationalWomen’sHealthCoalition

• The index accounts for 14 out of 17 SDGs (sustainabledevelopmentgoals).

• The goals cover aspects such as poverty, health, education,literacy,politicalrepresentationandequalityattheworkplace.

• Ascoreof100reflectstheachievementofgenderequality inrelationtothetargetssetforeachindicator.

• Ascoreof50signifiesthatacountryisabouthalfwaytomeetingagoal.

DISCUSSION

Need for gender equality

• Gender equality has been conclusively shown to stimulateeconomic growth, which is crucial for so-called developingcountries.

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• When women are excluded from working, economies arerestrictedandpovertycontinuesitscycle.

• Womenandyounggirlsbearthebruntofpoverty.Globally,60percent of people suffering from chronic hunger arewomenstatestheUN.

Reasons for the Inequality of Gender in India

• Cultural institutions in India,particularly thoseofpatrilineality(inheritance through male descendants) and patrilocality(married couples living with or near the husband’s parents),playacrucialroleinperpetuatinggenderinequality.

• Aculturallyingrainedparentalpreferenceforsons-emanatingfromtheirimportanceascaregiversforparentsinoldage-islinkedtopoorerconsequencesfordaughters.

• Thedowrysystem,involvingacashorin-kindpaymentfromthebride’sfamilytothegroom’satthetimeofmarriage,isanotherinstitutionthatdisempowerswomen.

• Patriarchyisasocialsystemofprivilegeinwhichmenaretheprimaryauthorityfigures,occupyingrolesofpoliticalleadership,moralauthority,controlofprosperityandauthorityoverwomenandchildren.

• Extremepoverty and lackof education are also someof thereasonsforwomen’slowstatusinsociety.

Legal and Constitutional Safeguards Against Gender Inequality

• Indian Constitution provides for positive efforts to eliminategenderinequality.

• ThePreambletotheConstitutiontalksaboutgoalsofachievingsocial,economicandpoliticaljusticetoeveryoneandtoprovideequalityofstatusandofopportunitytoallitscitizens.

• Article 15 of the Constitution provides for prohibition ofdiscriminationongroundsofsexalsoapartfromothergroundssuchasreligion,race,casteorplaceofbirth.

• Article15(3)authorizestheSatetomakeanyspecialprovision

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forwomenandchildren.

• TheDirective Principles of State Policy also provides variousprovisionswhich are for the benefit of women and providessafeguardsagainstdiscrimination.

• TheSati(Prevention)Act,1987wasenactedtoabolishandmakepunishabletheinhumancustomofSati.

• The Dowry Prohibition Act, 1961 to eliminate the practice ofdowry.

• TheSpecialMarriageAct,1954togiverightfulstatustomarriedcoupleswhomarryinter-casteorinter-religion.

• Pre-NatalDiagnosticTechniques(RegulationandPreventionofMisuse)Bill(introducedinParliamentin1991,passedin1994tostopfemaleinfanticideandmanymoresuchActs.

• Section304-BwasaddedtotheIndianPenalCode,1860tomakedowry-death or bride-burning a specific offence punishablewithmaximumpunishmentoflifeimprisonment.

Gender Equity and Equality

• Genderequality“doesnotmeanthatwomenandmenwillbecomethe same,but thatwomen’sandmen’s rights, responsibilitiesandopportunitieswill not dependonwhether they arebornmaleorfemale.

• Genderequitymeansfairnessoftreatmentforwomenandmen,accordingtotheirrespectiveneeds.

• Thismayincludeequaltreatmentortreatmentthatisdifferent,butwhichisconsideredequivalentintermsofrights,benefits,obligations,andopportunities.

• WorldEconomicForumprojectsitwilltake170yearstoreachgenderequalityglobally,and158yearsinNorthAmerica.Thatmeans itwill takefivemoregenerations forustoseegenderequality.

• Itisconcerningmanyasgenderequalityimpactstheeconomicpieforall.

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Key findings of the Index

• Theglobalaveragescoreofthe129countries(with95%oftheworld’sgirlsandwomen)is65.7outof100(“poor”intheindex).

• Nearly1.4billiongirlsandwomenarelivingincountriesthatgeta“verypoor”grade.

• Altogether,2.8billiongirlsandwomenliveincountriesthatgeteithera“verypoor”(59andbelow)or“poor”score(60-69).

• Just 8%of theworld’s populationof girls andwomen live incountriesthatreceiveda“good”genderequalityscore(80-89).

• Notably,nocountryachievedan“excellent”overallscoreof90oraboveingenderequality.

• Besides, not all countries’ scores on the index correlatewithnationalincome.

• SomecountriesperformbetterthanwhatwouldbeexpectedbasedontheirGDPpercapita,andothersunderperform.

• Withall these, itwashighlightedthattheworldwasfar fromachievinggenderequality.

India’s Performance

• Indiawasrankedat95thamong129countries.

• India’shighestgoalscoresareonhealth(79.9),hunger&nutrition(76.2),andenergy(71.8).

• Itslowestgoalscoresareonpartnerships(18.3,inthebottom10countries),industry,infrastructureandinnovation(38.1),andclimate(43.4).

• On indicators thatdefine thegoals, India scored95.3on thepercentage of female students enrolled in primary educationwhoareoverage.

• Intheproportionofseatsheldbywomeninnationalparliament,Indiascored23.6;womenmadeup11.8%ofParliamentin2018.

• OnseatsheldbywomenintheSupremeCourt(4%),Indiahasascoreof18.2.

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• Ongender-basedviolence,indicatorsinclude-

• Proportionofwomenaged20-24yearswhoweremarriedorinaunionbeforeage18(27.3%)

• Womenwhoagreedthatahusband/partnerisjustifiedinbeatinghiswife/partnerundercertaincircumstances(47.0%)

• Womenaged15+whoreportedthattheyfeelsafewalkingaloneatnightinthecityorareawheretheylive(69.1%)

• Overall, India largelyperformsasexpectedbasedon itsGDPpercapita.

UNICEF Gender Action Plan, 2018–2021

• Integratinggenderequalityinallprogrammeresults.

• Genderequalityincareandsupportforallchildren

• Adolescentgirls’well-beingandempowerment

• Genderinprogrammestrategiesandinstitutionalsystems

• Capacityandaccountabilityongenderresults

Way forwards

• India is still a laggingwhen it comes togender equality, andchangingthissituationisanurgenttask.

• Need for policy initiatives to empower women as genderdisparitiesinIndiapersistevenagainstthebackdropofeconomicgrowth.

• Improvementsinlabourmarketprospectsalsohavethepotentialtoempowerwomen.Thiswillalsoleadtoincreaseinmarriageageandschoolenrolmentofyoungergirls.

• Feminism could be a powerful tool that lets children shedstereotypesthattheymayholdandquestionthoseofothers.

• Aworldfreeofprejudiceandgeneralisationwouldbeamenabletoprogressinthetruestsense.

• Theneedofthehouristointroducefeminisminschools,bothintermsofcurriculumandpractice.

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• Sessionsonprinciplesofmutualrespectandequalitymustbemadearegularaffairinschools.

• Inculcating gender equality in children could go a long waytowardsriddingsocietyofregressivemindsets,attitudes,andbehaviours.

• EducatingIndianchildrenfromanearlyageabouttheimportanceofgenderequalitycouldbeameaningfulstartinthatdirection.

# Practice Question

1. “If gender equality is the end, gender equity is the means”Elucidate.(200words)

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siGnificance of biMstec3

GS2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What is the Issue?

• LeadersfromtheBIMSTEC,KyrgyzRepublicandMauritiusareinvitedfortheswearing-inceremonyofnewIndiangovernment.

BACKGROUND

• BIST-EC(Bangladesh,India,SriLanka,andThailand-EconomicCooperation)wasformedatameetinginJun1997inBangkok.

• MyanMarchwasadmittedinDec1997andtheorganizationwasrenamedasBIMST-EC.ThegroupingexpandedwhenNepalandBhutanwereadmittedinFebruary2004.

• Thegrouping’snamewaschangedtoBIMSTEC(BayofBengalInitiativeforMulti-SectoralTechnicalandEconomicCooperation)at1stSummitMeetingheldinBangkokinJul2004.

• BayofBengalInitiativeforMulti-SectoralTechnicalandEconomicCooperation(BIMSTEC)comprisingBangladesh,Bhutan,India,MyanMarch,Nepal,SriLankaandThailand.

• Itbringstogether1.5billionpeople–21%oftheworldpopulation,andacombinedGDPofoverUS$2.5trillion.

• BIMSTEC organizes inter-governmental interactions throughSummits, Ministerial Meetings, Senior Officials Meetings andExpertGroupMeetingsandthroughBIMSTECWorkingGroup(BWG)basedinBangkok.

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Importance of the Present move

• BIMSTEC(BayofBengal InitiativeforMulti-SectoralTechnicalandEconomicCooperation)-TheinvitesignalsamajoroutreachtoIndia’sneighbourhoodintheBayofBengal.

• Last time, the PM had invited the SAARC leaders. The thenPakistanPrimeMinisterNawazSharif’sattendancehadraisedhopesofanewbeginninginthebilateralties.

• Thistime,SAARC’sexclusionisclearlyaimedatkeepingPakistanoutofNewDelhi’sengagementwithitsneighbours.

• AsIndiabecameamemberinSCOalongwithPakistanin2017,by inviting the Kyrgyz Republic leader, India is displaying anoutreachtotheShanghaiCooperationOrganisation(SCO).

• India thus wants to leverage its membership to advance itsstrategicobjectivesinCentralAsia.

• Further,MauritiusPrimeMinisterPravindJugnauthisoneofthe

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well-placedPeopleofIndianOriginintheworld.

• SinceIndianPMhasinvesteddiplomaticcapitalinoutreachtothe IndianDiasporasince2014,this invite isseenasanaturalchoice and extension of the foreign policies of the previousgovernment.

DISCUSSION

Areas of Cooperation

• BIMSTEC has identified 14 priority areas where a membercountrytakeslead.

• IndiaisleadcountryforTransport&Communication,Tourism,Environment&DisasterManagementandCounterTerrorism&TransnationalCrime.

• A BIMSTEC Information Centre has been established in Jul2007inNewDelhi.MinistryofTourismorganizedameetingonBIMSTECInformationCentreandcontributiontoTourismFund.

• Counter-Terrorism and Transnational Crime (CTTC) has beendivided into 4 sub-groupswith lead shepherds - IntelligenceSharing(SriLanka);CombatingFinancingofTerrorism(Thailand),Legal and LawEnforcement Issues (India) and Prevention ofIllicitTraffickinginNarcoticsDrugs,sychotropicSubstancesandPrecursors(MyanMarch).

• UndertheEnvironmentandDisasterManagementtheme,IndiaisestablishingBIMSTECWeatherandClimateCentreatNationalWeatherForecastingCentreatNOIDA.

• A Framework Agreement for BIMSTEC Free Trade Area wassignedinPhuket,ThailandinFebruary2004.

• Theculturalcooperation:ThefirstBIMSTECMinisterialmeetingonCulturewasheldinParo,BhutaninMay2006.

• Cooperationinenergyfields,especiallyatMyanMarch.

• Nepal hosted the 2nd Ministerial Meeting in January 2012 inKathmanduwherePlanofPovertyAlleviationwasadopted.

• SriLankahostedthe3rdmeetingonMay9-10,2011inColombo

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on establishment of BIMSTECTechnology Transfer ExchangeFacility.

Significance of BIMSTEC

• NewDelhi’sengagementwithBIMSTECrosefromthebacklashesatSAARCduetothepresenceofPakistananditsdemandfortheinclusionofChina.

• InOctober2016,followingtheUriattack,IndiagavearenewedfunctionsatBIMSTEC,although ithadexistedforalmosttwodecades.

• IndiahadlongfeltthatthevastpotentialofSAARCwasbeingunder-utilised.Opportunitieswerebeinglostduetoeitheralackofresponseand/oranobstructionistapproachfromPakistan.

• Moreover, BIMSTEC had emerged as an alternative regionalplatform. With 5 five countries from SAARC and two fromASEAN,BIMSTECisabridgebetweenSouthAsiaandSoutheastAsia.

• Itthusoffersscopefordiscussionsonsub-regionalcooperationacrossdifferentgeographies.

• Nevertheless, SAARC summit has only been postponed, andnotcancelled.

• Thepossibilityofrevivalremains,andso,thesuccessofBIMSTECdoesnotrenderSAARCpointless.

Importance of the Region

• TheBayofBengalisthelargestbayintheworldandoneofthebusiestofthesouthAsia.

• Overone-fifth(22%)oftheworld’spopulationliveinthesevencountriesaroundit.

• ThesecountrieshaveacombinedGDPofcloseto$2.7trillion.

• Despiteeconomicchallenges, theyhavebeenable to sustainaverageannualeconomicgrowthratesof3.4%-7.5%from2012to2016.

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• TheBayalsohasvastuntappednaturalresourcesthatcancaterthedevelopmentoftheregion.

• One-fourth of theworld’s traded goods cross the Bay everyyear.

Way forward

• As the region’s largest economy, India has a lot at stake inBIMSTEC.

• ItisanaturalplatformtofulfilIndia’skeyforeignpolicyprioritiesof‘NeighbourhoodFirst’and‘ActEast’.

• AkeyreasonforIndia’sengagementisthevastpotentialthatisunlockedwithstrongerconnectivity.

• About45millionpeopleliveinlandlockedNorth-easternstates.

• TheywillhavetheopportunitytoconnectviatheBayofBengaltoBangladesh,MyanMarchandThailand.

• Thisopensupnewpossibilitiesintermsofdevelopment.

• Fromthestrategicperspective,theBayofBengalisafunneltotheMalaccastraits.

• In this context, the Bay has emerged a key theatre for anincreasinglyassertiveChina inmaintaining itsaccessroutetotheIndianOcean.

• Given these, it is in India’s interest to consolidate its internalengagementamongtheBIMSTECcountries.

• TheBIMSTECinviteisanefforttoreachoutdiplomaticallytotheneighbourhood,diasporaandtheChina-Russia-ledregionalgroupingofCentralAsiancountries.

• ThefuturecourseofthemovedependsontheprogressNewDelhimakeswiththesegroupings.

#Practice Question

1. For India’s “neighbourhood first policy”, BIMSTEC is moreconducivethanSAARC.Criticallyevaluate.(200Words)

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Draft national eDucation policy 2019 anD issues arounD4

GS2: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

What is the Issue?

• SubsequenttothesubmissionofthedraftNationalEducationPolicy 2019, there were protests against the three languageformula.

• ThecontroversialprovisionwasthusrevisedbyDr.Kasturirangan-ledcommitteethatsubmittedit.

BACKGROUND

• EducationplaysapivotalroleinthesociallifeofIndiansocietysinceitsinception.

• In ancient India, religion played a vital role in spreading anddecemberemberidingeducationinthesociety.

• Modern education in India was introduced by British in 18thcentury.MacaulayminutesandWood’sDespatchgavefurtherimpetustothemoderneducationinIndia.

• After independence, Radhakrishnan commission, in 1948appointedtostudyabouttheUniversityeducation.

• The D.S. Kothari Education Commission was appointed todealwith all aspects and sectorsof education and to adviseGovernmentontheevolutionofaNationalSysteminofEducationforthecountry.

• Based on this Commission’s report, the National Policy onEducation1968wasformulated.

• Majorrecommendationssuchas10+2+3Pattern,Useofregionallanguage,EducationforthepeopleandTheCommonSchoolSystem.

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Major proposals in old and new policies

• Earlierprovision-StudentswhowishtochangeoneofthethreelanguagestheyarestudyingmaydosoinGrade6.

• Butthisisonlyaslongasthestudyof3languagesbystudentsin the Hindi-speaking stateswould continue to include HindiandEnglishandoneofthemodernIndianlanguagesfromotherpartsofIndia.

• Likewise, study of languages by students in the non-Hindi-speakingstateswouldincludetheregionallanguage,HindiandEnglish.

• Newchange-Studentswhowishtochangeoneormoreofthe3languagestheyarestudyingmaydosoinGrade6orGrade7.

• Thisisonlyaslongastheyareabletostilldemonstrateproficiencyinthreelanguages(onelanguageattheliteraturelevel).

• This will be as per their modular Board Examinations heldsometimeduringsecondaryschool.

DISCUSSION

Issues persisting in the primary education

• ThedraftNEPacknowledgesa“severelearningcrisis”inIndia,wherechildreninprimaryschoolfailtoattainbasicmathandreadingskills.

• A largenumberof children currently in elementary school—perhapsover5crore—cannotreadandunderstandbasictextandsolvesimpleadditionandsubtractionproblems,thereportstates.Manyofthemeventuallydropout.

• Attributingamajorpartofthiscrisistoa“tragicdeficiency”inearlychildhoodcareandeducation(ECCE)ofchildren intheagegroup3-6years.

• Thedraftrecommendsthatearlychildhoodcareandeducation(ECCE) be made an integral part of the Right to Education(RTE)Act.

• Toensurecontinuityfrompre-primarytoprimaryschools,the

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draftadvocatesbringingallaspectsofECCEunderthepurviewoftheHumanResourceDevelopmentMinistry.

Major Recommendations of the Draft Policy

• Whilethe1986educationpolicypushforauniform10+2structure,the 2018 draft pitches for reconfiguration of curriculum andpedagogyina“5+3+3+4”design.

• Italsorecognisesdifferentstagesofdevelopmentofcognitiveabilitiesinchildren.

• This corresponds to the age groups 3-8 years (foundationalstage),8-11(preparatorystage),11-14(middlestage),and14-18(secondarystage).

• RedesigningofschoolcurriculumforGrades1to5to includededicatedmathematicsandreadinghourseveryday.

• Inadditiontothat,activitiesthatrelateclassroommathstoreal-lifemaths,weeklypuzzle-solvingsessions to inculcate logicalthinking,andlanguageandmaths-focusedmorningassemblies.

• A‘NationalTutorsProgramme’thatwillenrolthebestperformersofeachschoolforuptofivehoursaweekastutorsforstudentswhohavefallenbehind.

• A‘RemedialInstructionalAidesProgramme’todrawinstructorsfromthe

• Localcommunitytoholdremedialclassesduringschoolshours,afterschoolhoursandduringsummervacationsforstudentswhoneedhelp.

• AschoolpreparationmoduletobepreparedbyNCERTforallGrade1studentstoensuretheyhavetherequiredlearninglevels(letters,shapes,colours,numbers)beforestartingtheGrade1syllabus.

• Vacanciestobefilledurgentlytoensureapupil-teacherratioof30:1.

• A nutritious breakfast, in addition to the midday meal, forimprovedlearning.

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Persisting Contentions

• Aspertheearlierversion,thecommitteestipulatedthelanguagesthatstudentsmustchoosetostudyfromGrade6.

• In the revised draft, the committee has merely omitted thereferencestothelanguagethatstudentsmaychoose.

• However, the broader recommendation regarding theimplementationofathree-languageformularemains.

• Inotherwords,thereviseddraftretainstherecommendationtointroduceathree-languageformulafromClass1onwards.

• ItsimplyremovestheclausestipulatingthespecificlanguagesthatstudentsmustchooseinGrade6.

• Also,therevisionwasnotdonebytheCentralgovernmentbutbythecommitteethatdraftedthepolicy.

Centre’s Rationale on the Issue

• The draft policy’s push for Hindi seems to be based on thepremisethat54%ofIndiansspeakHindi.

• However, according to the 2001 Census, 52 crore out of 121crorepeopleidentifiedHindiastheirlanguage.

• About 32 crore people december emberlared Hindi as theirmothertongue.

• ThismeansthatHindiisthelanguageoflessthan44%Indiansandmothertongueofonlylittleover25%peopleinIndia.

• ButtherehasbeengreaterpushformakingHindiapan-Indialanguage,whichisseenasimpositionofHindibymanystates,especiallythatoftheSouthIndia.

Evolution of Hindi as an Official Language

• ConstituentAssembly-ThedebateoverHindihasbeenragingsinceIndependence.

• The Constituent Assemblywitnessed heated exchanges overtheuseandscopeofHindi.

• TheSub-CommitteeonFundamentalRightsoftheConstituent

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Assemblyrecommendedthefollowing:

• Hindustani,writteneitherinDevanagariorthePersianscriptattheoptionofthecitizen,shall,asthenationallanguage,bethefirstofficiallanguageoftheUnion.

• EnglishshallbethesecondofficiallanguageforsuchperiodastheUnionmay,bylaw,determine.

• Constitution-Article343oftheConstitutionprescribesHindiaswritten inDevanagariscriptastheofficial languageofthegovernmentalongwithEnglishfor15yearsinitially.

• However, it has been extended subsequently without anyscientificconsiderations.

• Clearly, theConstitutiondidnotdecemberemberlareHindiasthe‘nationallanguage’.

• ItratheraccordedHindithestatusof ‘official language’alongwithEnglish.

Way forward

• Languageisprimarilyautilitariantoolthanapoliticalplank.

• Whileacquisitionofadditionaltoolscan indeedbebeneficial,compulsorylearningshouldbelimitedtoone’smothertongue.

• Besides,English,asthelanguagethatprovidesaccesstoglobalknowledge and as a link language within India, could be asupportivelanguage.

• Giventhis,noteveryoneissatisfiedbythechanges,andthethree-languageformulaitselfisseenasanunnecessaryimposition.

# Practice Question

1. WhatarethechallengesfacedbytheeducationsectorinIndia?Do you think the present educational policies are capableenoughtoaddressthesechallenges?(250Words)

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suDan crisis anD ouster of bashir5

GS2: Effect of policies and politics of developed and developing countries on India’s interests, Indian Diaspora.

What is the Issue?

• ThepowertransitioncrisisinSudanhasledtoaviolentcrackdownonpro-democracyprotests.

BACKGROUND

• Sudanhasbeenengulfedbyviolenceformorethanacentury,evenwhileitwasundertheBritish-Egyptiancolonialrule.

• Sinceindependencein1956,thisNorthAfricannationhasseensectarianviolence,faminesandpoliticalinstability.

• ThelatestcoupoustingBashiristhefifthsuchforcibletakeover.

• Minorities’resentment(insouthernpartsofthecountry)since1983ledtoabittercivilwarthatlastedfor22yearsandclaimedover20lakhlives.

• Theregionfinallysecededin2011toformthenewcountryofSouthSudan,takingawaymorethantwo-thirdsofSudan’soilreserves.

• Bashir also pitilessly cracked down on the insurgency in thegold-richDarfurregion.

• ItsMuslimbutnon-ArabpeopleaccusedBashirofonlyfavouringArabMuslims.

• AsavagemilitiabackedbyBashirusedsexualviolence,torture,andstarvationasmethodstosuppressdissent.

• During his three-decade rule, Bashir had outlawed severalorganisationsopposedtohisrulesuchastradeunions.

• Healsojailedormurderedpoliticalopponentsandjournalists.

• TheUSdesignatedtherepressionas‘genocide’in2004.

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• The International Court of Justice in 2009 issued a warrantagainstBashir.

DISCUSSION

Ongoing Crisis in Sudan

• Sudanese dictatorOmar al-Bashirwas toppled inApril, 2019afteramonths-longpopularuprising.

• Military interventionejectedBashir frompower,and inturn,aTransitionalMilitaryCouncil(TMC)tookpower.

• Currently, the protesters are demanding a transfer of powertoatransitionalciviliangovernment,followedbyfreeandfairelections.

• But themilitarygeneralsused thecrisis toconcentratemorepowersintheirownhands.

• Angry protesters continued a sit-in in front of the DefenceMinistryinKhartoum,Sudanesecapital.

• The talks between pro-democracy activists and the militaryrulerscollapsed.

• Soparamilitarygroup’sunleasheddeadlyviolencetobreakthesit-in,killingatleast100peopleandinjuringhundreds.

• TheRapidSupportForces(RSF)threwthedeadintotheRiverNileandreportedly,40bodieshavebeenpulledfromtheriverinKhartoum.

• The RSF are the paramilitary troops notorious for atrocitiescommitted in the impoverishedwesternprovinceofDarfur intheearly2000s.

Future Prospects of Sudan

• After thecrackdown,Lt.GeneralAbdelFattahal-Burhan, themilitaryruler,hasofferedtoholdelectionsin9months,upturninganearlierplanofa2-yeartransition.

• Butthere isno immediateplantotransferpowertoaciviliantransitionalgovernment,akeydemandoftheprotesters.

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• Sounsurprisingly,protestershaverejectedthemilitary’soffer.

• At present, Sudan’s generals enjoy regional and internationalsupporttoo.

• TheUNSecurityCouncilcouldnotevencondemntheviolenceasChina,backedbyRussia,blockedthemove.

• Saudi Arabia and the United Arab Emirates, which offeredfinancialaidtothepeopleassoonasMr.Bashirwasremovedfrompower,alsosupportthegeneralsnow.

• This gives themilitary rulers a sense of impunity evenwhentheyunleashmurderousparamilitariesonpeacefulprotesters.

• Soitisevidentthatthemilitarywillnoteasilygiveuppoweranytimesoon.

India – Sudan Relations

• India-SudanrelationsgobackinhistorytothetimeoftheNiloticandIndusValleyCivilizations(about5000yearsago).

• ThefirstSudaneseParliamentaryelectionsin1953wereconductedbyShriSukumarSen,India’sChiefElectionCommissioner.

• TheSudanBlockofIndia’sNationalDefenceAcademywaspartlyfundedwithagiftofonehundredthousandpoundsfromtheSudaneseGovernmentinrecognitionofthesacrificesofIndiantroopsintheliberationofSudanintheNorthAfricanCampaignduringWorldWarII).

• India continuously offered humanitarian assistance to theSudaneespeople.

• Capacity building programmes includes specialized trainingcourses inAgriculture, Irrigation,Water resources,Renewableenergy,InformationTechnologyetc.

• IndiaisthethirdlargestexportertoSudanafterChinaandUAE.Itprimarilyexportsfoodstuffs,manufacturedgoods,machineryand equipment, chemicals including pharmaceuticals, textilesandtransportequipmenttoSudan.

• IndiahasinvestedhugesumsintheoilfieldsofSudan.

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• FurtherIndiaextendedalineofcreditforthedevelopmentofnonconventionalenergysources.

Way forward

• Themilitary rulersmust climbdownand transferpower to aciviliangovernment.

• Ifthemilitarywantstokeepitsgriponpower,therecouldbemorebloodshedastheprotestersaredefiant.

• Itwillhavetonecessarilybuildamoreoppressiveregime,asinEgyptafterthe2013coup.

• Sotheother,wiseroptionistocompromise,resumetalkswiththeprotesters and facilitate aquick andorderly transition tocivilianrule.

• ArabcountriesaswellastheUNshouldputmeaningfulpressureonthemilitarycounciltopayheedtopopulardemands.

• Theyshouldalsoholdthoseresponsiblefortherecentmassacreaccountable.

# Practice Question

1. What are thepossible challenges for Indiadue to theSudancrisis?Doyou thing the relationswith thisAfricancountry isvitalforourenergysecurity?(200Words)

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shanta KuMar coMMittee6

GS 2: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources, issues relating to poverty and hunger.

What is the Issue?

• UnionMinisterofConsumerAffairs,FoodandPublicDistribution,ShriRamVilasPaswanlaysdownthefutureroadmapforFoodCorporationofIndia(FCI).

• B He stated that primacy will be given to ensuring thatthe functioning of FCI is streamlined and fast paced as perrecommendationsoftheShantaKumarCommittee.

BACKGROUND:

• Thegovernment,in2014,hadconstitutedahighlevelcommitteechairedbyShantaKumar,whohadgivenseveralrecommendationsashowtomaketheentirefoodgrainmanagementsystemmoreefficient.

• ThecommitteesuggestedthereorientingoftheroleofFCIinMSPoperations,procurement,storageanddistributionofgrainsunderTargetedPublicDistributionSystem(TPDS).

• TheHLChadwideconsultationswithvarious stakeholders inits several meetings in different parts of the country. It alsoinvitedcommentsthroughadvertisementsinnewspapersandelectronicmedia.

• HLCwouldliketogratefullyacknowledgethatithasbenefittedimmensely from this consultative process, and many of itsrecommendationsarebasedonveryintensivediscussionswithstakeholders.

• Article47oftheConstitutionofIndiastatesthatitisthedutyoftheStatetoraisethelevelofnutritionandthestandardoflivingandtoimprovepublichealthPercapitafoodavailability.

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• Asof2017,thepercapitanetavailabilityoffoodgrainsis190.5grams/ day Per capita calorie intake: according to a OECDReport,thepercapitacalorieintakeinIndiais2445kcal(2011-12)–oneofthelowestintheworldPoverty:

• 25.7and13.7percentofthepopulationwerepoorinruralandurbanIndia,respectively,in2011-12.

• Poverty-line:972 INR(Rs32perday) in ruralareasand 1407INR(Rs47perday)inurbanareas-basedonmonthlyminimumconsumption expenditure(food and non-food) per person orperhousehold.

• AccordingtoMulti-dimensionalPovertyIndex,2016,nearly54%oftheIndianpopulationismulti-dimensionallypoor-indicatingextentofdeprivation in termsof livingstandards,health,andeducation.

DISCUSSION

• Leakages inPDS: Leakagesrefertofoodgrainsnotreachingintendedbeneficiaries.Accordingto2011data,leakagesinPDSwereestimatedtobe46.7%.

• Qualityoffoodgrains:Asurveyconductedin2011hadnotedthatpeoplecomplainedaboutreceivingpoorqualityfoodgrainwhichhadtobemixedwithothergrainstobeedible.

Need for the Revamp in Food Management in India

• TostoptheleakagesinthePDSsystem:Leakageanddiversionoffoodgrainsduringtransportation.

• Open-endedProcurement:Allincominggrainsacceptedevenifbufferstockisfilledcreatingashortageintheopenmarket.TherecentimplementationofNationfoodsecurityactwouldonlyincreasethequantumofprocurementresultinginhigherpricesforgrains.

• Identification of poor people- The onus is on the stateGovernmenttoidentifytheeligiblehouseholdsineachstate.Itisstillamurkyissue.

• Inaccurateidentificationofbeneficiaries.

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• IllicitFairPrice shops:Theshopownershavecreateda largenumber of bogus cardsor ghost cards(cards for nonexistentpeople)tosellfoodgrainsintheopenmarket.

• In order to augment the human resources, food security isinevitableinIndia.

• Inadequate storagecapacitywithFCI. Foodgrains rottingordamagingontheCAPorCover&Plinthstorage.

Measures taken for Food Security

• Traditionally, India’s approach to food securitywas based onthe‘availability’dimensionoffoodsecurity-lookingatonlythequantitativeaspect

• TheGreenrevolutionwhichwaslaunchedaftertwoconsecutivedroughtsinmid1960sincreasedtheproductionoffoodgrains(mostly rice and wheat) by providing farmers an improvedtechnologypackageconsistingofhighyieldingseedvarieties,modernfarminputsandcredit,andassuranceofaremunerativeandfixedprice.

• Since 1980’s there was an increasing acknowledgement thatphysicalandfinancialaccesstofoodhadadeterminingroleinachievingfoodsecurityinthecountry.

• Inspiteofenoughfoodbeingavailable inthecountrypeoplesuffered from hunger and starvation because they werephysicallyorfinanciallyunabletoreachtofood.

• Theapproachshiftedfromfoodproductiontoaccesstofoodandfromcharitytoarights-basedapproach.

• NationalFoodSecurityAct,2013Objective:Toprovideforfoodandnutritionalsecurityinhumanlifecycleapproach,byensuringaccesstoadequatequantityofqualityfoodataffordableprices.

• Nationalnutritionmission,2018aimstoacievenutritionalstatusofchildrenfrom0-6years,Adolosecntgirls,pregnantwomenandlactatingmothers.

• MidDaymealschemeaimstothefoodaccsibilityofstudentsfromclass1to8th.

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Challenges with food Security in India

• TheNSFAdoesnotguaranteeuniversalrighttofood:Targeted–Restrictstherighttofoodtoonly755ofruraland50%ofurbanpopulationinIndia

• Actwouldnotapplyintimesof“war,flood,drought,fire,cycloneorearthquake”.Thisahighlyproblematicclausegiventhatfoodisbecomesutmostnecessaryduringthesecircumstances

• The Act focuses primarily on distribution of rice and wheatandfailstoaddressthe‘utilization’dimensionoffoodsecurity.GiventhatamajorreasonformicronutrientdeficiencyinIndiaisbecauseofacereal-baseddiet;theNSFAdoesnotaddresstheissueofmalnutritionandnutrionaldeficiencyadequately

• TheActmentionsthatCentralandStategovernmentsshouldrealize certain objectives ‘progressively’- agrarian reforms,publichealth,sanitationetc.Itfailstoprovideacomprehensiveframeworkwhichunderminesfoodsecurityefforts.

• The Act does not address the ‘stability’ dimension of foodsecurity- excludes the impact of climate change on Indianagricultureandmeasurestoovercomeit.

• Inadequate distribution of food through public distributionmechanism,foodadulterationsindistributedfood

• Unmonitored, improper implementation of nutritionalprogrammes

• Lackofintersectoralcoordination;lackofcomprehensivepolicy

• Agrarian crisis, especially in rain fed agriculture areas of thecountry.

• Environmental issues: degradation of soil, water stress anddrought-affectingagriculturalproduce

Best Practices by other Country

• Brazil-FomeZero(Zerohunger)strategy:BrazilhadstartedtheZeroHungerstrategyin2003

• Under this strategy various initiatives have been taken: food

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banks, cash transfer topoor families, national school feedingprogramme

• Thestrategyhashelpedtoachievesignificantreductionsinchildmortality,levelsofmalnutrition,andpovertysinceitsinception

Important Recommendations made by the Committee:

• Reduce thenumberofbeneficiariesunder theFoodSecurityAct—fromthecurrent67percentto40percent.

• Allowprivateplayerstoprocureandstorefoodgrains.

• Stopbonusesonminimumsupportprice(MSP)paidbystatestofarmers,andadoptcashtransfersystemsothatMSPandfoodsubsidyamountscanbedirectlytransferredtotheaccountsoffarmers.

• FCIshouldinvolveitselfinfull-fledgedgrainsprocurementonlyinthosestateswhicharepoorinprocurement.

• Inthecaseofthosestateswhichareperformingwell,likeHaryana,Punjab, Andhra Pradesh, Chhattisgarh, Madhya Pradesh andOdisha,thestatesshoulddotheprocurement.

• Abolishing levy rice:Under levy ricepolicy,governmentbuyscertain percentage of rice (varies from 25 to 75 per cent instates)fromthemillscompulsorily,whichiscalledlevyrice.

• Millsareallowedtosellonlytheremainderintheopenmarket.

• DeregulatefertilisersectorandprovidecashfertilisersubsidyofRs7,000perhectaretofarmers.

• Outsourceofstockingofgrains:Thecommitteecallsforsettingupofnegotiablewarehousereceipt(NWR)system.

• Inthenewsystem,farmerscandeposittheirproduceintheseregisteredwarehousesandget80percentoftheadvancefrombankagainsttheirproduceonthebasisofMSP.

• Clear and transparent liquidation policy for buffer stock: FCIshouldbegivengreaterflexibility indoingbusiness; itshouldoffloadsurplusstockinopenmarketorexport,asperneed.

• FCIneedstobepro-active,mobilizingstateandotheragencies

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toprovidebenefitsofMSPandprocurementtolargernumberoffarmers,especiallysmallandmarginalones,”thecommitteehadrecommended

Loop Holes in the Report

• Committee recommends FCI to hire contractual staff, closeregionalofficesandgiveVRStoemployees.Tradeunionleadersdon’tlikeit.

• Reportsaysonly6%farmersbenefitedfromMSPprocurementregimeandnearly50%ofthefoodgrainsaresiphonedofffromPDSsystem(NSSO,2011).

• Itistruethatlargenumbersoffarmersarenotbenefitedfrompublicprocurement,butFCIhasnotopenedbranchesoutsideselectedregions.So,insteadofprivatizingtheoperations,FCIshouldopenmoreofficesatsubdistrictlevel.

• Committeewantstoreducethecoverageoffoodsecurityactfrom67%populationtoonly40%population.Heprescribesthatpriorityhouseholdsshouldnotbegivencheapgrainsat1/2/3rupees.

• ItseemsShantaKumarhastailoredhisnumberstopacifythefood-subsidyquotarequirementsunderWTO’sagreementonAgriculture(AoA).

• Reportrecommendscentralgovernmentnottodo“openendedprocurement”fromsuchstates,abovebufferstocklimits.Thiswillcatalyzedistresssellsandfarmersuicides

Way forward

• Adhaar Linked and digitized ration cards: This allows onlineentryandverificationofbeneficiarydata.Italsoenablesonlinetrackingofmonthlyentitlementsandoff-takeoffoodgrainsbybeneficiaries.

• Computerized Fair Price Shops: FPS automated by installing‘PointofSale’device to swap the rationcard. It authenticatesthebeneficiariesandrecordsthequantityofsubsidizedgrainsgiventoafamily.

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• DBT: Under the Direct Benefit Transfer scheme, cash istransferred to the beneficiaries’ account in lieu of foodgrainssubsidycomponent.Theywillbefreetobuyfoodgrainsfromanywhereinthemarket.

• UseofGPStechnology:UseofGlobalPositioningSystem(GPS)technologytotrackthemovementoftruckscarryingfoodgrainsfromstatedepotstoFPSwhichcanhelptopreventdiversion.

• SMS-basedmonitoring:Allowsmonitoringbycitizenssotheycanregistertheirmobilenumbersandsend/receiveSMSalertsduringdispatchandarrivalofTPDScommodities

• Useofweb-basedcitizen’sportal:PublicGrievanceRedressalMachineries,suchasatoll-freenumberforcallcenterstoregistercomplaintsorsuggestions.

# Practice Question

1. ExplainneedforreformsinFCI.AnalysetheserecommendationsofSantakumarcommitteeinthisregard.(250words)

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honG KonG protests anD relateD issues 7

What is the Issue?

• Protest erupted after the controversial extradition law pushforwarded on Hong Kong. Lakhs of protesters marched thestreetsofHongKonginthebiggestprotestsincetheUmbrellaRevolutionofSeptember-December2014.

BACKGROUND

• HongKongusedtobeaBritishcolony,butsincethehandoverof1997itisacityofChina.

• OneCountry,TwoSystems,theChineseCommunistGovernmentensured Hong Kong will retain its own currency, legal andparliamentary systems, people’s existing rights and freedomsforfiftyyears.

• However,criticalvoiceshaveemergedinHongKongtoprotestagainst actionsby thegovernmentwhichhavebeen seenasprioritizingtheinterestsoftheChineseCommunistGovernment

• Forinstancethroughthespendingofpublicfundsforpro-Chinawhiteelephantprojects.

• The Umbrella Movement started as a spontaneous socialmovement for democratic development in Hong Kong inSeptember2014.

• Itwasalargemovementintermsofduration,locationandreachandalsoverymuchempoweredbydigitalmedia.

• ItsnamearosefromtheuseofumbrellasasatoolforpassiveresistancetotheHongKongPoliceduringa79-dayoccupationofthecity.Theumbrellaswereusedfordefenceagainstpolicepepperspray.

• ThepresentTheextraditionbill,whichwouldcoverHongKong’s7millionresidentsaswellas foreignandChinesenationals inthecity,wasseenbymanyasathreattotheruleoflawinthe

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formerBritishcolony.

• Duetothepublicuproar,thebillpostponedindefinitely.

Political Status of Hong Kong

• HongKong,atroughly1,100sqkm,issmallerinsizethanDelhi,andishometoanestimated7.4millionpeople.

• ItwasaBritishcolonyfrom1841untilsovereigntywasreturnedtoChinain1997.

• HongKongisnowpartofChinaunderthe“onecountry,twosystems”principle.

• Underthis,thecityofHongKongremainsasemi-autonomousregionwiththeBasicLaw(thecity’smini-constitution)for50years.

• ThisensuresthatHongKongkeepsitsownjudicialindependence,itsownlegislatureandeconomicsystem.

• Ithasitsownlawsandcourts,andallowsitsresidentsarangeofcivilliberties.

• The Umbrella Revolution/Umbrella Movement/OccupyMovement refers to a series of sit-in street protests in HongKonginSep-Dec2014.

• ItwastriggeredoveradecisionregardingproposedreformstotheHongKongelectoralsystem,andislargelyamovementfordemocracyandautonomy.

Extradition Agreement

• Extradition agreement refers to arrangement in regards tosurrenderofperson(s)accusedofacrime.

• HongKong has entered into extradition agreementswith 20countries,includingtheUKandtheUS.

• WhentheextraditionagreementsforHongKongwasfinalised,TaiwanandmainlandChinawereexcluded.

• Thiswasbecauseofthedifferentcriminaljusticesystemsthatexistedinthoseregions.

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• Chinahassteadilytriedtodeepenits influenceinthisregard,butanextraditionagreementwithithasneverbeenreached.

• Imageresultforhongkongtaiwanmacaumap

• TheFugitiveOffendersandMutualLegalAssistanceinCriminalMatters Legislation (Amendment) Bill 2019was proposed byHongKong’sgovernmentinFebruary,2019.

• Carrie Lam, who became Chief Executive of Hong Kong in2017as thecandidate favouredbyBeijing, ispushing for theamendments.

• TheBillwillallowthelocalgovernmenttoextraditeasuspecttoplaceswithwhichthecityhasnoformalextraditionaccord.

• Ineffect,thiswouldallowsuspectsaccusedofcrimessuchasmurderandrapetobeextraditedtomainlandChinatofacetrial.

• Oncethelawischanged,HongKongwillalsohandovertoChinaindividualsaccusedofcrimesinTaiwanandMacau.

• Macau,likeHongKong,isaChinesespecialadministrativeregionwithsignificantautonomy.

• Taiwanisseenasasovereignstatebutitssovereigntyishighlycontended,andithasatenserelationshipwithChina.

• The government says that the proposed amendmentswouldplugloopholesinthecriminaljusticesystem.

• Thecurrentshortfallsallowcriminalsevadetrialelsewherebytakingrefuge inHongKongandallowthecitytobeusedbycriminals.

• Thegovernmenthasassuredthat,underthebill,thecourtsinHongKongwouldmakethefinaldecisiononextradition.

• Courts can specify that only certain categories of suspectswouldbeliable.

• Theycanalsolaydownthatindividualsaccusedofpoliticalandreligiousoffenceswouldnotbeextradited.

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Concerns of the Protesters

• Despite government assurances, there is a firm concern thatChinawouldusethechangedlawtotargetpoliticalopponentsinHongKong.

• ProtestorshighlightChina’sflawedjusticesystemandthusthereisafearthatextraditedsuspectswouldlikelyfacetorture.

• Also,thereisaconcernthattheprovisionwoulddealanotherblowtoHongKong’salreadydecliningautonomy.

• Itwould further erode the freedoms people enjoy under theBasicLaw.

• Therearealreadyinstancesofdisqualifyingelectedlawmakers,banning activists from running for office, prohibiting politicalpartiesandexpellingforeignjournalists.

• Therecentmarchincludedpeoplefromthebusinesscommunity,lawyers, students, members of religious groups, and evenhousewives.

• The issuethusbringsto lightthetensionsbetweentheHongKong’sBeijing-appointedeliterule,andtheexpectationsofcivilsocietyandpro-democracymovement.

• In all, the Bill could affect Hong Kong’s reputation as aninternationalfinancecentreandalsoitsjudicialsystem.

International Reaction on the Issue

• The Human RightsWatch and the International Chamber ofCommercehavewarnedagainstchangingthelaw.

• AbodyoftheUSCongresshassaidthattheamendmentwouldmakeHongKongvulnerabletoChinese“politicalcoercion”.

• TheUKandCanadaaswellhaveexpressedconcernoverthepotentialimpactontheircitizensinHongKong.

• TheEUhasalsosentadiplomaticnoteinthisregard.

• ButChinahascriticisedthealleged“politicisation”oftheHongKongproposal,andthe“interference”inChina’sinternalaffairs.

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• Movingforward,BeijingshouldreachouttothepeopleofHongKong, alleviate their fears and concerns, and assure them oftheirguaranteedrights.

Way forward

• Thegovernmenthassaidthattheproposedamendmentswould“plugloopholes”thatallowthecitytobeusedbycriminals.

• IthasassuredthatcourtsinHongKongwouldmakethefinaldecisiononextradition,thatonlycertaincategoriesofsuspectswouldbe liable, and that individuals accusedof political andreligiousoffenceswouldnotbeextradited.

• ManyaccuseBeijingofextensivemeddlingsincethen,includingobstructionofdemocraticreforms,interferencewithelectionsandofbeingbehindthedisappearanceoffiveHongKong-basedbooksellers,startingin2015,whospecialisedinworkscriticalofChineseleaders.

#Practice Question

1. Movements for the protection of the democratic values areinvariable.DoyouthinkthatthepresentdemocraticmovementinHonKonghasgotitsobjectivesfulfilled?(200words)

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coDe on WaGes bill8

GS2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What is the Issue?

• In executing its plans on converting 35-odd labour laws into4 codes, the government plans to first take up theCode onWagesBill.

BACKGROUND

• The present law mentions 13 most vulnerable categories ofemployment.

• In this, the minimum wages are fixed by both the stategovernmentsandtheCentre.

• The Centre can notify the minimum wage rate for railway,agriculture,miningorcentralgovernmententities.

• Theratesvaryinaccordancewithskillsets,sectorsandlocation.

Constitutional Provisions for Employees

• Article21and21Aensurerighttomeaningfullifewithminimumeducationforall.

• Article 24 No child below the age fourteen years shall beemployed inwork in any factory ormine or engaged in anyotherhazardousemployment.

• Article 38That thehealth and strengthofworkers,menandwomen, and the tender age of children are not abused andthat citizens are not forced by economic necessity to enteravocationsunsuitedtotheirageorstrength.

• Article43AensuresParticipationofworkersinmanagementofindustries.

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DISCUSSION

NITI Aayog on Labour Reforms

• Codifyinglabourlaws-In2016,therewere44labourlawsunderthestatuteoftheCentralgovernment.

• Keepingwomenintheworkforce-ThegovernmentshouldensurethatemployersadheretotheMaternityBenefit(Amendment)Act,2017,andtheSexualHarassmentofWomenatWorkPlace(Prevention,ProhibitionandRedressal)Act.

• Employmentdata-DatacollectionforthePeriodicLabourForceSurvey(PFLS)ofhouseholdsmustbecompletedonscheduleanddataisdisseminatedby2019.

• Workers’welfare-Thegovernmentmustmandatorilycomplywiththenationalfloor-levelminimumwage.

• Social security and working conditions – There must be acompulsoryregistrationofallestablishmentstoensurebettermonitoringofoccupationalsafety.

• Skillsandapprenticeships-AccordingtotheIndiaSkillReport2018, only 47% of those coming out of higher educationalinstitutionsareemployable.

Major Problems Faced by Indian Labour Market

• LabourmarketinIndiaissufferingfromsurpluslabourforce.

• Thereareagrowingnumberofunskilledlabourersinthecountry.

• InIndiatheabsorptionrateofskilledlabourforceisalsoverypoor.

• LabourmarketinIndiaisalsosufferingfromsomeimperfectionssuch as lack of adequate information regarding jobs, lack ofsuitableagencyfortheproperutilisationoflabourforce,childlabourpracticesetc.

• Workculture among the Indian labour force is not along theinternationalstandards.

• Labourmarket in India is also facing theproblemofmilitantunionism.

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• Labourmarketisalsofacingaseriousproblemofunemployment.

• LabourmarketinIndiaisalsosufferingfromlackofadequatelabourreformsprovision.

Existing Concerns

• Theexistingsystemhasledtoover1,700minimumwagerates,fixedbybothstatesandtheCentre.

• The varied rates turn out as a huge compliance burden onindustry.

• Ithasthepotentialofunleashinginspectorraj,andlargelyworksagainstthewelfareofworkers.

• Notably, theCentre startednotifyingauniformnationalfloorlevelminimumwagefrom1996,whichisnon-bindingonstates.

• Thenationalfloorlevelwaslastrevisedby10%toRs176adayinJuly2017.

• But to date, even business-friendly states such as AndhraPradeshandGujarathavefixedtheirminimumwagebelowthenationalfloor.

• Otherstatesarecompliantwiththeabovenon-statutorynationalfloor.

• SotheminimumwageratevariesfromRs69toRs538acrossstates (with the lowest inAndhraPradeshand thehighest inDelhi).

• ItisRs321fortheindustriesfallinginthecentralsphere,asofNovember2018.

• Thevariationscallforastatutoryflooracrossthecountry.

Issues with Existing Employment Law

• Non-competition restrictions are deemed restraint in tradeandthereforeunenforceablepost terminationofemploymentirrespective of the covenants contained in the employmentagreements.

• CurrentlyundertheIndustrialDisputesAct1947(“IDAct”),incase

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ofterminationofworkmenbyorganisations,theorganisationsarerequiredtofollowthelast-infirstout(“LIFO”)rule.Itisoutdated.

• Challengesinenforcingrecoveryoftrainingcostsandgardenleaveclausespostterminationofemployment;assuchclausesareagaindeemedasrestraintintradeundertheContractAct.

• Present labour laws like the Factories Act 1948 (“FactoriesAct”)andtheshopandestablishmentlawslimitedflexibilitytoemployerinmanagingtheirworkforcetoachieveefficiency.

• Employees usually receive legal notices from their previousemployersregardingallegedviolationofnon-competeclausesandtherefore,needtospendtheirresourcesinsuchlegalbattles.

• Other issues includemultiple laws and regulations governinglabourmatters.

Sectors Facing Crisis

• SectorslikeITandprojectsarepronetovariouschallengesunderIndian labour laws, particularly in more difficult times wheresuchcompaniesmayneedtoreducetheirexcessworkforce.

• Manufacturingconcernsandlargecorporatesusuallyhavetradeunions,which are usually backed by political parties and areseldominterestedinprotectionofinterestsofworkers.

• Companies that have a presence in several states have theherculeantaskofcomplyingwithseveralcentrallawsaswellaslawsofrespectivestates.

Advantages of the Wage Code Bill

• TheCodeonWagesBillwas introduced in theLokSabha inAugust2017.[Clickheretoknowmoreontheprovisions.]

• Undertheproposedlaw,theminimumwagelawwillbeextendedtoallsectors,insteadofthecurrent13categoriesofwork.

• This move is expected to ensure universal wage protectionagainstexploitation.

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Challenges on the Present Bill

• The proposed Bill empowers the Centre to fix a statutoryminimumwage.

• But notably, thismay differ from state to state or from onegeographicalareatoanother.

• This ideaofadifferentiatednationalminimumwageratewastakenforwardbyagovernment-appointedcommittee.

• Thecommitteehassuggestedanationalminimumwagelevelforfivedifferentzones.

• Fouroftheseweregroupedusingvariedsocio-economicandlabourmarketfactors.

• ThefifthgroupincludedallNorth-easternstatesexceptAssam.

• Despitethegrouping,aregional-levelminimumwageratecanleadtodisparityamongvariousregionswithvaryingeconomicprofiles.

• Thisisboundtomakethesystemcomplexandconfusinganddifficulttoenforce.

Various Programmes Under Labour Ministry

• NationalChildLabourProjectScheme:Thepolicywasformulatedwith thebasicobjectiveofsuitably rehabilitatingthechildrenwithdrawnfromemploymenttherebyreducingtheincidenceofchildlabourinareasofknownconcentrationofchildlabour.

• Government of India has introduced a pension scheme forunorganisedworkersnamelyPradhanMantriShramYogiMaan-dhan(PM-SYM)toensureoldageprotectionforUnorganisedWorkers.

• AamAdmiBeemaYojana:Theworkersintheunorganizedsectorconstituteabout93%ofthetotalworkforceinthecountry.

• GrantinAidonChildLabour:FundsunderGrants-in-AidSchemearesanctioneddirectlytoNGOforeliminationofChildLabourindistrictsnotcoveredbyNCLPScheme.

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Way forward

• TheCentreshouldfixasinglenationalfloorforminimumwagesforallworkers.

• Itshouldletthestatesfixtheirownrates,butthestatesshoulddosokeepinginmindthenationalfloor.

• Suchasimplerstructurewouldbeeasytoenforceandimplement.

• Withoutaddressingthesegaps,passinglegislationonminimumwagesmayhaveadirectbearingonjobsandindustrialrelations.

• Under the LIFO rule increase the requirement of payingretrenchmentcompensationmaybecomeabottleneckinsuchaprocess.

#Practice Question

1. Labour issues in India needs a systemic solution. Criticallyanalyse(200words)

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inDia’s foreiGn policy challenGes anD prospects

9

GS2: India’s neighbourhood and bilateral relations.

What is the Issue?

• Prime Minister Narendra Modi’s massive electoral mandateshouldaddtoIndia’smuscleashestridesontotheworldstageinhissecondterm.

• Buttheworld’sabad-temperedplacethesedaysandhis—andIndia’s—diplomaticoutreachesfaceanewsetofchallenges.

BACKGROUND

• Thepast five yearswere years of lost opportunity – of Indiamissingthebus;ofroadsandreformspromised,butnottaken.

• U.S.PresidentDonaldTrump’selectionandtheunpredictabilityinU.S.policypronouncements.

• ThetradewarbetweentheU.S.andChinawhichisbecomingatechnologywar.

• Brexit and the European Union’s internal priorities andpreoccupations.

• ErosionofU.S.-Russiaarmscontrolagreementsandthelikelihoodofanewarmsracecoveringnuclear,spaceandcyberdomains.

• TheU.S.’swithdrawal fromthe IrannucleardealandgrowingtensionsbetweenSaudiArabiaandIran.

• BesidesalltheseisIndia’sprincipalforeignpolicychallengeofdealingwiththeriseofChina.

• Theinternaldivisivenessofthelastfouryearsaffectsbothoursecurityandourabilitytorunasuccessfulforeignpolicyintheneighbourhood.

• India’sstrategicshrinkinginfluenceinSouthAsiaandtheIndianOceanregioninthelastdecade.

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DISCUSSION

India’s Imminent Foreign Policy Challenges

• Insuchanunpredictableglobalenvironmentandwithresourceconstraints,Indianeedstorealignitsforeignpolicypriorities.

• India’sinthebadbooksoftheUSandasofJune5,Washington’sendingIndia’spreferentialtradestatusovertariffsonUSgoods.

• AnotherfocusareawherethechallengeslieinforeignpoliciesisSouthAsianneighbourhoodi.e.theSAARCcountries.

• PakistanwhichishistoricallyaproblematicareaduetoKashmirconflictandcross-borderterrorism.

• The energy security is another domain which requires aptattentionandfinediplomacyinthewakeofIran-USAescalations.

• India’srelationswithUSAwillcomplicatedbyitsengagementswithTurkey,Iran,RussiaandChina.

• IndiaalsofearsapossiblenexusbetweenChina,Iran,PakistanandRussia against the so calledUSA allies groupings in theregion.

Redefine India’s Neighbourhood

• Asin2014,in2019tooIndianPMModibeganhistermwithaneighbourhoodfocus,butredefinedit.

• In2014,allSouthAsianAssociationforRegionalCooperation(SAARC)leadershadbeeninvitedforhisswearing-in.

• AftertheUriattackin2016,India’sstanceaffectedtheconveningoftheSAARCsummitinIslamabad.

• Forthesecondterm,leadersfromtheBayofBengalInitiativeforMulti-SectoralTechnicalandEconomicCooperation(BIMSTEC)countriesalongwithKyrgyzstanwereinvited.

• Thisshifthighlightedanewneighbourhoodemphasis.

Approach Towards Pakistan

• Aterroristattack(Uri)cannotberuledoutanditwoulddefinitelyattractretaliation.

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• Butdespitegoodplanningthereisalwaystheriskofunintendedescalationaftersuchattacks.

• E.g.therecentBalakotstrikeandthedowningofanIndianAirForce(IAF)MiG-21

• IntheabsenceofcommunicationchannelsbetweenIndiaandPakistan,theU.S.,SaudiArabiaandtheUAEplayedaroleinthisregard.

• TheyensuredthequickreleaseoftheIAFpilot,WingCommanderAbhinandanVarthaman,therebydefusingthesituation.

• Clearly,theturnofeventssuggeststhatitwouldbebettertohavesomekindofdialoguewithPakistanthanoutsourcingcrisismanagementtoexternalplayers.

• Inotherwords,itisnotawiseoptionforIndiatoignorePakistanaltogether.

Probable Priorities for India

• TranslatingIndia’snaturalweightintheregionintoinfluencewaseasierinapre-globalisedworldandbeforeChina’sassertiveness.

• Buttoday,theprocessismorecomplex.

• Relations with countries in India’s periphery will always becomplexandneedcalculatedpoliticalmanagement.

• ThisisirrespectiveofhowIndiadefinesitsneighbourhood.

• Given all, it is preferable towork on the basis of generatingbroad-basedconsentratherthandominance.

• This necessitates usingmulti-pronged diplomatic efforts andbeinggenerousasthelargereconomy.

• Indiaalsoneedsamoreconfidentandcoordinatedapproachinhandlingneighbourhoodorganisationsincluding–

» SAARC

» BIMSTEC

» The Bangladesh-China-India-Myanmar Forum for Regional Cooperation

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» The Bangladesh, Bhutan, India, Nepal Initiative

» The Indian Ocean Rim Association

• Thisstrategyshouldpreferablybeintandemwithbilateralism,asIndia’sbilateralrelationscomeswithsignificantadvantages.

India vs China in the Future

• India largely followed the old policy since the Rajiv Gandhiperiod,inthecontextofrelationswithChina.

• This largely focusses on growing economic, commercial andculturalrelations.

• On the other hand, differences on the boundary dispute aredealtthroughdialogueandconfidence-buildingmeasures.

• It was believed that such measures would create a moreconduciveenvironmentforeventualnegotiations.

• Theunderlyingassumptionwasthatwithtime,Indiawouldbebetterplacedtosecureasatisfactoryoutcome.

• Butapparently, the realityhasprovedotherwiseand thegapbetweenthetwocountrywaswidening.

• ThiswasevidentintheDoklamstand-offwheretheassumptionbehind thepolicy followed for3decadescouldno longerbesustained.

• TheinformalsummitinWuhanseemedtohaverestoredcalmbutdidnotaddressthelong-termimplicationsofthegrowinggap.

• Meanwhile, there is thegrowingstrategic rivalrybetween theU.S.andChina.

• Indianolongerhastheluxuryofdistancetobenon-aligned.

• Atthesametime,theU.S.isaninconsistentpartnerandneverhasitbeenmoreunpredictablethanatpresent.

• Giventhese,howIndiamanagesitsrelationswiththeU.S.willbecloselywatchedbyChinaandRussia.

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Way forward

• TheharshrealityisthatIndialackstheabilitytoshapeeventsarounditonaccountofresourcelimitations.

• So,employingexternalbalancingtocreateaconduciveregionalenvironmentwillalsorequirebuildinganewdomesticconsensus.

• The new challenges require domestic decisions in terms ofexpandingtheforeignpolicyestablishment.

• Indianeedstoensurefarmorecoordinationamongthedifferentministriesandagenciesthanhasbeenthecasesofar.

• The focus on the neighbourhood and shaping events here iscertainlydesirableforIndiatolookbeyond.

• However,thefactsthatChinatooispartoftheneighbourhoodaddtoIndia’sforeignpolicychallenges.

• Pakistan shouldonlybe considered as a strategicdistractionbutchinaasarealthreattoIndia’sambitions.

• Noestablishedpowerlikestoseepotentialcompetitorsrising,andthereisthereforealimittowhatwecanexpectfromotherpowers.

• Indiacannotrelyonanyotherpower–nottheUS,notChina,oranyoneelsetosecureusortopromoteourprosperity.Truestrategicautonomyisourwayforward.

#Practice Question

1. DoyouthinkthatthepossibleforeignpolicychallengesawaitsIndiaarecapableenoughtoslowdownitseconomicprospects?Elucidate(250words)

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neeD for the siMultaneous election

10GS2: Structure, organization and functioning of the Executive

What is the Issue?

• TheCentrehasdecidedto formacommitteetoexaminetheissueofconductingthesimultaneouselections.

BACKGROUND

• The“OneNation,OneElection”ideaenvisagesasystemwhereelectionstoallstateassembliesandtheLokSabhawillhavetobeheldsimultaneously.

• ThiswillinvolvetherestructuringoftheIndianelectioncycleinamannerthatelectionstothestatesandthecentresynchronise.

• ThiswouldmeanthatthevoterswillcasttheirvoteforelectingmembersoftheLSandthestateassembliesonasingleday,atthesametimeorinaphasedmannerasthecasemaybe.

• Currently,electionstothestateassembliesandtheLokSabhaareheldseparatelythatiswhenevertheincumbentgovernment’sfive-yeartermendsorwheneveritisdissolvedduetovariousreasons.

• ThisappliestoboththestatelegislaturesandtheLokSabha.

• ThetermsofLegislativeAssembliesandtheLokSabhamaynotsynchronisewithoneanother.

Historical Background

• Simultaneouselectionswerethenormuntil1967.

• ButfollowingdissolutionofsomeLegislativeAssembliesin1968and1969andthatoftheLokSabhainDecember1970,electionstoStateAssembliesandParliamenthavebeenheldseparately.

• TheideaofrevertingtosimultaneouspollswasmootedintheannualreportoftheElectionCommissionin1983andalsointhereportofLawCommissionintheyear1999.

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• Therecentpushcameaheadofthe2014LokSabhapollsintheBhartiyaJanataParty(BJP)manifesto.

• NITIAayogpreparedaworkingpaperonthesubjectinJanuary2017.

• In the Law Commission’s working paper that was broughtout in April 2018, it said that at least “five Constitutionalrecommendations”wouldberequiredtogetthisofftheground.

DISCUSSION

Constitutional and Statutory Provisions

• Article83(2)oftheConstitutionprovidesforanormaltermoffiveyearsfortheHouseofPeople(LokSabha).

• Article172(1)providesforasimilartenurefortheStateLegislativeAssemblyfromthedateofitsfirstsitting.TenureoftheHousecannot be extended beyond five years except in emergencysituations.

• Implementingthismeasurewill requiremultipleconstitutionalamendments, amendments to theRepresentationofPeople’sAct, and other such laws. It will also require a great deal ofpoliticalsupportandunderstanding.

• TheElectionCommissionhassuggestedthatthetermofLokSabhacouldcommenceandendonpredetermineddates,andtoavoidprematuredissolution,no-confidencemotionsshouldbe moved simultaneously with a confidence motion for theindividualhopingtobethenextPM.

• If the House is still dissolved, the President can run thegovernmentfortherestoftheterm—or,ifthatperiodislong,freshelectionscanbeheldforaHousethatwouldlastonlyfortheremaininglengthoftime.

• Assembliescan,asaone-timemeasure,beextendedorcurtailedtoaligntheirelectionswiththeLokSabhacycle.

• RecentLawCommissionrecommendationsalsofeaturesomeof these suggestions (seebox:How toRestoreSimultaneousElections).

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Recommendations of Standing Committee

• TheCommitteenotedthattheholdingofsimultaneouselectionstoLokSabhaandstateassemblieswouldreduce:

» themassiveexpenditurethat iscurrently incurredfortheconductofseparateelections;

» thepolicyparalysisthatresultsfromtheimpositionoftheModelCodeofConductduringelectiontime;and

» impactondeliveryofessentialservicesand

» Burden on crucial manpower that is deployed duringelectiontime.

• Holdingofelectionsintwophases:TheCommitteerecommendedthatelectionscouldbeheldintwophases.

• ItstatedthatelectionstosomeLegislativeAssembliescouldbeheldduringthemidtermofLokSabha.

• ElectionstotheremaininglegislativeassembliescouldbeheldwiththeendofLokSabha’sterm.

• The elections of legislative assemblies whose term ends sixmonthsafterthegeneralelectionstoLokSabhacanbeclubbedtogether.

• However, theresultsofsuchelectionscanbedeclaredattheendoftheassembly’stenure.

Recommendations from Law Commission’s Working Paper

• Simultaneouselectionsmayberestoredthroughanamendmentof the Constitution, Representation of the People Act, 1951and Rules of Procedure of Lok Sabha and State LegislativeAssemblies.Adefinitionmaybeaddedtosection2ofthe1951Act.

• Theno-confidencemotionmaybereplacedwithaconstructivevoteofno-confidencethroughamendmentsinLokSabhaandStateAssembliesrulesofbusiness.

• Anti-DefectionlawmaybesuitablydilutedtopreventstalemateincaseofahungAssemblyorParliament

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• Statutory limit of six months for issuance of notification ofgeneralelectionsmaybeextendedforsecuringflexibilityasaone-timemeasure.

Advantages of Simultaneous Election

• Itwillreduceenormouscostsinvolvedinseparateelections.

• Itwillreducetheburdenonthemanpowerdeployed.

• Thesystemwillhelprulingpartiesfocusongovernance,insteadofbeingconstantlyinelectionmode.

• Itreducesthedistractionsfromlong-termplanningandpolicygoals.

• Itwillboostvoterturnout,accordingtotheLawCommission.

Disadvantages of Simultaneous Election

• Holdingsimultaneouselectionsislikelytoaffectthejudgmentofvotersasthenationalandstateissuesaredifferent.

• Itwillreducetheaccountabilityofthegovernmenttothepeopleastheelectionswillbeheldonceinfiveyears.

• But repeated elections keep legislators on their toes andincreasesaccountability.

• ItmaycurtailorextendthetenureofStatelegislaturestobringtheirelectionsinlinewiththeLokSabhapolldates.

• ThereisaseriousquestionofwhathappensifthegovernmentattheCentrefalls.

• There will be a blow to democracy and federalism whenPresident’srulewillhavetobeimposedintheinterimperiodinastate.

• Thismaybedue to thepostponementof election in aStateuntilthesynchronisedphasearrives.

• Itwill,inallprobability,benefitthedominantnationalpartyortheincumbentattheCentrewhiledisadvantagingthesmallerregionalpartyandissue.

• In a parliamentary democracy, the legitimacy of executive is

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responsibletothe legislaturewouldbeunderminedbytakingawaythelegislature’spowertobringdownaminorityregimebymandatingafixedtenure.

Experience of Other Countries

• In South Africa, elections to national as well as provinciallegislaturesareheldsimultaneouslyforfiveyearsandmunicipalelectionsareheldtwoyearslater.

• In Sweden election to national legislature and provinciallegislature/countycouncilandlocalbodies/municipalAssembliesareheldonafixeddate i.e. secondSunday inSeptember forfouryears.

• Butmostotherlargedemocraciesdonothaveanysuchsystemofsimultaneouselections.

• In Britain, the Fixed-term Parliaments Act, 2011 was passedtoprovideasenseofstabilityandpredictabilitytotheBritishParliamentanditstenure.

• It provided that the first electionswould be held on the 7thofMay,2015andonthefirstThursdayofMayeveryfifthyearthereafter.

• Article67ofBasiclawforFederalRepublicofGermanyproposesa constructive vote of non-confidence (electing a successorwhiledismissingtheincumbent).

• InIndia,theLawCommissioninitsreport(1999)hadsuggesteda simultaneous motion of non-confidence in the incumbentgovernment as well as the confidence in an alternativegovernmentby insertingRule 198A intheRulesofProcedureandConductofBusinessintheLokSabhatoeliminatetheneedformidtermelectionandensurestabilityofgovernment.

Way forward

• Holding simultaneous electionsgoes against the spirit of theConstitutionandagainstthespiritoffederalism.

• Nationalandlocalissuesaredifferent,andholdingsimultaneouselectionsislikelytodistortthejudgmentofthepeople.

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• There is apprehension that whenever there is a majoritariangovernmentattheCentre,anyanti-incumbencyintheStatesislikelytogetneutralisedifsimultaneouselectionsareheld.

• Implementing simultaneous polls would require a substantialshiftfromthestatusquoandwouldinvolveamendmentstotheConstitutionandelection-relatedlaws.

• Decisions taken at the local level are driven by local levelconsiderations. Holding simultaneous elections even for localbodiesalongwithLokSabhaelections isproblematic for thesimplereasonthateveryelectionhasitsowndynamicsanditsownissues.

#Practice Question

1. Simultaneous elections for Parliament and state legislatureswillensureconsistency,continuityandgovernance,whichareintegraltodemocracy.CriticallyAnalyse.(200words)

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a hiGh poWereD coMMittee to be set up for aGriculture 11

GS2: Agriculture reforms, issues and related constraints.

What is the Issue?

• Prime Minister announced a high powered committee torecommendstructuralreformsinagriculture,atthe5thmeetingoftheGoverningCouncilofNITIAayog.

BACKGROND

• Indianagriculturehasbeenaparadoxforsometimes.

• Whileproductionisgrowingupandalsoexportsaregrowing,thereisalsogrowingdistrustamongthefarmers.

• Farmersareaffectedbyvaryingweatherconditions,droughtsandfloods.Soilfertilityisanotherissue.

• Policies regarding agriculture and investments in it have alsobeenaconstantsourceofconcern.

• WithhugepressurefromvarioussourcestoshifttoGMcrops,ithasalsoremainedasanunresolvedissue.

• Agricultureaccountsfor54.6%oftotalemployment.

• Agriculture production has consistently been rising. From 51milliontonsin1951ithastodayreached271milliontons.Indiahasalsobeenanexportingcountry.

• AgriculturalproductioninIndiaisdiverse.

• Themostnotableamongpanelsinthisregardare-

» the M S Swaminathan-headed National Commission onFarmers

» the Shanta Kumar-chaired committee on food sectorreforms

» theAshokDalwai-ledempoweredcommitteeondoublingfarmers’income

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• The Swaminathan commission’s report (2006) had soughta paradigm shift in the focus of agricultural developmentprogrammes.

• Itcalledforshiftinfocusfromincreasingproductiontoraisingfarmers’income.

• Butthistookoveradecadeforthegovernmenttorealizetheimportanceofthiscounselandbeginactingonit.

• However,manyotherequallysensiblerecommendationsofthiscommissionstillremainunattended.

• TheDalwaicommittee’sreport(2018)hadakeyfocusonthestructuralreformsandgovernanceframeworkforagriculture.

• Beingthelatest,itsrecommendationweremostrelevanttotheprevailing agrarian situation marked by widespread farmers’distress.

• Besides,thereisthegovernment’sownthinktank,theNationalInstitutionforTransformingIndia(NITI)Aayog.

• Thethree-yearactionplanforagriculturecraftedbyNITIAayogalsoaddressedcurrentchallengesintheagriculturesector.

Reforms Needed in Agriculture

• Overhaulingofmarketingsystemisalsonecessary.

• For decades, Indian governments have largely failed in theirattempt to improve agricultural productivity and providealternativeoccupationalpathsforruralhouseholds.

• Withhiselectoralmandate,Modicanfocusonstructuralfixesthatincludeaccesstobetterseedsandtechnology,dripirrigationandcropplanningforthefarmer,aneasierpathfromfarmstomarketsforproducts,asteadierofftakeoffarmproductsandareductioninmiddlemancosts.

• As already envisaged, a direct cash transfer to themarginalfarmercanandshouldcushionthisreformprocess.

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DISCUSSION

Dimensions of Agrarian Distress

• Inputcostshavegoneupsignificantlyrecentlywhilethefarmgatepricesof agriculturalproducehavecontinued to remainsubdued.

• ThebulkoffarmingactivitiesinIndiaisundertakenbymarginalfarmers,share-croppersorlandlessagriculturallabourerswithlimitedaccesstoinstitutionalfinance.

• Thevaluechainintheagriculturalsectorhasbeenexploitativeasonlyone-thirdof the retail pricespaidbyfinal consumersreachtheproducers,unliketwo-thirdsincaseofmilk.

• The public distribution system does not have the capacityto undertakeprocurement operations for 24 crops forwhichminimumsupportprice(MSP)isannounced.

• AlthoughPDSisinefficient,analternativemechanismisyettoemerge,whichcanensureMSPtofarmersduringaperiodofbumperharvest.

• Post-harvest technology is underdeveloped and farmers’participationinsuchactivitiesislimited.

• Monsoondependencyisveryhigh,limitingcropdiversificationtoagreatextent.

Objective of the Committee

• TheproposedcommitteewouldincludesomeChiefMinisters.

• Itwouldtakeaholisticapproachonthesubject,includingalliedactivitiesofagriculture.

• The key issues marked out for reference to the proposedcommitteeinclude-

» privateinvestmentinagriculture

» logistics

» value-addition

» marketingsupport

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» irrigation,especiallydripandothermeansofmicro-irrigation

» legislativechangesrequiredtorevampagricultureanditsalliedactivities

Challenges for the New Committee

• Mostof the issuesmarkedout for reference to theproposedcommittee have been dealt comprehensively before by theabovepanels.

• Theyhavecomeoutwithsomewell-judgedinputsforreformingthekeysegmentsofthefarmsector.

• Butinvariably,manyoftheworkableandwiserecommendationsinthesereportsremainunimplemented.

• Given this, the real need for the new committee is highlycontentious.

Challenges Before

• In recent years, the Centre has taken several initiatives suchasthePradhanMantriFasalBimaYojana(PMFBY),electronicNationalAgriculturalMarket (e-NAM), soilhealthcard,neem-coatedureaandsoontoreduceagrariandistress.

• However, these have not been adequate to yield the desiredresultinashortspanoftime.

• Agriculture,accordingtotheConstitution,isastatesubject.

• Sothetruth isthattheCentrehasavery limitedauthoritytointerveneinmattersrelatedtoagriculture.

• Itcandolittlewithoutthecooperationofthestateswhich,often,isunavailableinadequatemeasure.

• ThemeagersuccessofsomeoftheCentre’skey initiatives inagriculturestandsasproof.

• E.g. the efforts at reformingagriculturalmarketing, legalizinglandleasingandregularizingcontractfarming

• ThemodelBillsdraftedtoserveastheguidesfortheamendmentofthestatelawshavefailedtodeliverthedesiredresults.

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Way forward

• Thekeytodoublingfarmers’incomeistoinvolvetheminpost-harvesttechnologythroughinnovativeprogrammes.

• TheSwaminathancommissionchosetorecommendshiftingofagriculturefromtheStateListtotheConcurrentList.

• ThiscouldbefirmlyconsideredasthiswouldallowtheCentretoplayamoremeaningfulroleintheagriculturalsector.

• Atthesametime,itwouldnotsignificantlydilutethepowersofthestategovernments.

• Ifthegovernmentistrulyseriousinreformingthefarmsector,itcanjustexaminetheearlierreportsandpickuptheappropriatesuggestions.

• Significantly,concertedeffortsatimplementingtheminatime-boundmannershouldbetakenup.

• TheCentre’sabilitytotakethestatesonboardthroughstatutorymeansorpersuasionisessentialformeaningfulreformationofthefarmsector.

#Practice Question

1. 1. Structural reforms in agriculture can rejuvenate agriculturesectorinIndia.Criticallyexamine(150words)

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issues With the civil service – selection, traininG anD perioDical assessMent

12

GS2: Role of civil services in a democracy.

What is the Issue?

• Senior civil servants assume leadership positions right aftertheyjoin,butthetestingcriteriaisfarfromassessingtheskillrequiredfortherole.

• In this context, here is an assessment of the priorities andchallenges in the civil services at the selection and trainingphases.

BACKGROUND

• Therehassofarbeennoconcertedorsustainedefforttomanageseniorcivilserviceinacomprehensivemanner.

• Thestepshavebeenonlyadhocinnature;thelateralrecruitmentisalsoonesucheffort.

• Whatreallyneedstobedoneistolookat-

» themannerinwhichrecruitmenttakesplace

» thein-servicetraining,transfers,assessmentofofficers

» incentivesanddisincentives

Administrative Reform Since Independence

• The A.D. Gorwala Committee appointed in 1951 by thePlanning Commission and in 1953 the Appleby Commissionwassetupaswelltoanalysetheadministrativemachineryforimplementingplanneddevelopmentsubmitted itsreportwiththe recommendation to introduceO&Mprocedures ingovt.departmentsaswellassettingupofIIPAforadvancementofadministrativeknowledge.

• In 1956, the Planning Commission again constituted theCommittee on Plan Projects to carry out studies in the

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field of projects,with a view of evolving suitable forms oforganisation,methods,standards and techniques for avoidingwasteandensuringefficientexecutionofprojects.

• The Second Pay Commission in 1959 recommended thepoolingoftheSecretariatandtheattachedofficesintoasingleHeadquarterorganisation.

• FirstAdministrativeReformscommissionwassetupin1966-1970withMorarjiDesaias itsChairmanandonhisbecomingDeputyPrimeMinister,K.Hanumanthaiyatookover.

• The Jha Commission on Economic Administrative reformsadvocated the need to move towards accountability in thepositive sense so that greater importance was given toperformanceinsteadofrulesandregulations/procedures.

• ThearrivaloftheNewIndustrialPolicyandLPGbrought inalotofmajorreforms,liketheintroductionofICTtechnologyinadministration(E-Governance)andPublic-Privatepartnership,aswellasdisinvestmentsinPSUs.

DISCUSSION

Constitutional provisions

• Articles315to323oftheConstitutiondealwithPublicServiceCommissionsoftheUnionandtheStates.

• Article320(1)says:“ItshallbethedutyoftheUnionandtheStatePublicServiceCommissiontoconductexaminationsforappointmentstotheservicesoftheUnionandtheservicesoftheStaterespectively.”

• Article316providesforsecurityoftheirtenureandunchangeableconditionsof serviceandArticle319bars them fromholdingfurtherofficeonceasingtobemembers.Theseconstitutionalsafeguardsenablethemtofunctionindependentlywithoutfearorfavour.

Recommendations by Various Committees

• The Constitution Review Commission (2002), the SecondAdministrative Reforms Commission (2008) and the NITI

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Aayog’s3YearActionAgenda(2017)haveallnotedthat therisingcomplexityofmoderndaypolicymaking is increasinglyshiftingthependuluminfavorofdomainspecializationinsteadofgeneralizedcompetence.

• Eachhassupportedlateralentryintothecivilservices.

Issues with the Selection of Civil Servants

• Awidelyprevalentcriticismisthepushingupoftheagelimitandthenumberoftimesacandidatemaytaketheexamination.Recent years have seen older candidates succeed. This hascertainlyhadanegativeimpactontheutilityoftraining.

• Hereisacertainlackofsensitivitytotheneedsofthecommonman,evenamongrecruitsfromthelowereconomicstratumandthosewhohavearuralupbringing.

• Corruptionisstillaharshrealityinurbanandruralsettings.

• Thereareseveralstructuralproblemsthathavecreptupintheadministrativeservices,suchasdisproportionaterepresentation.

• Indiancivilserviceisturningintoarepresentativeorganisationfromcasteandcommunitypointofview,atthesametimeitisgettingconfinedtoasmallsectionofthesociety.

Issues Associated with the Training of Civil Servants

• Thefaultismorewithourvaguetraininginputsandtheleadership.

• Permanency of cadre of civil servant is liable to result ininefficiencyandineffectivenessintheworkingofcivilservices.

• Thetrainingacademyhasfacilitiestohandlenotmorethan400candidatesforthefoundationcourse.

• While about 1,000candidates are selectedevery year, nearly60-70% of the candidates qualifying for the IPS and CentralServicesGroupAdonotjointhefoundationcourseinMussoorieastheyprepareforthecivilservices(main)examinationagaintoimprovetheirprospects.

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Issues Associated with Assessment of Civil Servants

• There are fewer avenues to share best practices along withcollusionofprofessionalswith localpoliticiansas theircareerprospectsareinthehand.

• Periodicalassessmentisdoneasfornamesakeonly.

• Thebureaucraticmachinerywasnolongerservingitspurposebecauseofaseverelapseindisciplineandethics.

• An immediatetransferaffectsboththeworkingontheARCsandtheeffectivenessofjobathand.

• Newrecruitscanlosetheirbearingsinasystemthatplacesapremiumonloyalty,politicalconnectionsandcommunity/castecloutratherthanonmerit;inwhichindecisionandinactionareseldompunished.

Required Selection Priorities

• Almost all the IAS officers occupy leadership positions rightfromthebeginningoftheircareers.

• EvenintheSecretariatjobs,eachofficerhastoleadateam.

• Hence,theobjectiveshouldbetoselectsuchpersonswhohaveleadershipqualitiesorhavethepotentialtobecomeleaders.

• Aleader,inthiscontext,hastobeabletobuildateamandcarryitalongwithher/himbymotivatingthoseworkingwithhim.

• S/hehas toexcel incommunicationskillsbeyondthewrittenone.

• S/hehastobeethicalinbehaviourwithapositiveattitude.

Present Selection

• Mostoftheaboverequirementsarenottestedatthetimeofrecruitment.

• The entrance exams primarily select brilliant individuals bytestingwrittencommunicationskills,someanalyticalskillsandgeneralawareness.

• Itteststheexamineescapabilityto“crack”theexam,andvarious

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coachinginstitutesassistthemindoingso.

• Butaleaderrequiresmuchmorethanthat.

Recent Developments

• Aradicalproposalforallocatingservicesandcadresbasedonthecombinedmarksobtained intheCSEandthefoundationcourse.Butthenewproposalislegallyunsound,administrativelyunfeasibleandhasnotbeenthoughtthroughproperly.

• Central government’s apex recruitment agency UPSC Fridaycleared the names of nine private sector professionals forinductioninthegovernmentasjointsecretariesthroughlateralentryforafixedtermofthreeyears.

Way forward

• Recruitment - The tools to assess the above discussed skillswhichareinuseintheprivatesectorandelsewhereintheworldshouldbeadopted.

• Training-Theofficershaveknowledgeandtheyarecapableofacquiringmoreofit.

• Whatisrequiredisthetransformationofattitudeasanofficer,thenecessityandutilityofethicalbehaviour.

• Giventhehighmaximumageofentryintothecivilservice,thisprocessbecomesdifficultandchallenging.

• Inthisline,thetrainingshouldbecenteredaroundinculcatingleadershipskills.

• Ithastobefocusedonimpartingskillsandattitudethatwouldenabletheofficertoevolveasaleader.

• Periodic upgradation of skills and learning from each othershouldbethefocusofin-servicetraining.

• Thisisimperativeinthecontextofafast-changingworldbothintermsoftechnologyandmanagement.

• Certainty-Theinclinationandaptitudeoftheofficerneedstobemonitoredtodeterminehis/herpostingsandassignments.

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• Onceassignedatask,he/sheshouldbelefttodeliver.

• Frequent transfers interrupt the implementation process andleaveswayforpoliticisationofbureaucracy.

• Anagency,liketheUPSC,canbeassignedtoprepareapanelfromwhichthegovernmentcanselectanofficer.

• There should be flexibility in hiring and attracting the bestpossibletalenttogovernmentalpositionssothatthecauseofgrowthanddevelopmentisbestserved.

• amandatory “district immersion” for a stipulated number ofyearsoutofthetotalperiodoftheiremployment.

#Practice Question

1. Indiancivilservicesrequirecomprehensivereformsinselection,trainingandperiodicassessmentratherthancosmeticefforts.CriticallyAnalyse(250words)

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libyan crisis anD the afterMath13

GS2: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

What is the Issue?

• TheTripolibasedgovernmentofLibyahasdecidedtolaunchapeaceinitiative.

• PrimeMinisterFayezal-SarrajoftheTripoli-basedgovernmenthas proposed setting up a national peace forum with helpfromtheUN,tobefollowedbysimultaneouspresidentialandparliamentaryelections.

BACKGROUND

• Libyaismostlydesertandoil-richcountryinnorthernAfrica.

• Libyagainedindependencein1951.

• ColonelGaddafiseizedpowerin1969andruledforfourdecadesuntilhewastoppledin2011followinganarmedrebellionassistedbyWesternmilitaryintervention.

• The civilwar in Libyamay lead to a newmigrant crisis fromAfrica.

• LibyahasthelargestoilreserveinAfricaandoneofthelargestoilproducersintheworld.

• InstabilityinLibyamayincreaseoilpricesglobally.

• Anti-governmentprotestsbeganonFebruary15,2011, leadingtocivilwarbetweenoppositionforcesandMuammarGaddafiloyalists.

• Thecapitalcity,Tripoliwascapturedandthegovernmentwasoverthrownaftermilitaryinterventionbywesternpowers.

• InLibya, aUN-backed internationally recognizedgovernmentwas put in place called the Government of National Accord(GNA).

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• Libyahasnosinglegovernmentcurrently,withLNAbackingtheTobruk-basedparliamentwhichgovernstheEastofLibya,andtheGNAwhichcontrolsLibya’swesternpartsfromTripoli.

• TheUN-backedgovernmentfailedtoprovidestabilitytoLibya.WestLibyawhichwasunderGNAcontrolwasrepletewithinter-militiabattlesandkidnappings.

• TheGNAcommandsnosecurityforces,publicadministrationscarcelyexists,water,petrolandpowershortagesabound,andfewbanksoperate.

• TheruleofthegunprevailsinLibyaeversincewesternforcesoverthrewQaddafi.

• The oil-rich country, now a departure point for thousands ofmigrantstravellingtoEurope,oncehadoneofAfrica’shigheststandardsof living, freehealthcareandeducation,withhighfemaleliteracyandpercentageofwomenintheworkplace.

• Itsinlandwaterwaytogreentheeasterndesertwascalledtheworld’slargestirrigationproject.

Present Political Status of Libya

• Libyahasbeen tornbyviolenceandpolitical instability sincelong-time rulerMuammarGaddafiwas toppled and killed byrebelsin2011..

• TodaytherearetwogovernmentsinLibya,onebasedatTobrukandtheotherinthecapitalTripoli.

• ThecapitalcityTripoliwascapturedbythePrimeMinisterFayezal-SarrajiscalledtheGovernmentofNationalAccord(GNA).Ithasinternationalrecognition.

• The self-styled LibyanNationalArmy (LNA), commandedbyMr.Haftar,backstheTobrukgovernment.

• Egypt,SaudiArabiaandtheUAEarebackingMr.Haftar’sforces.

• TurkeyandQatarbackstheTripolibasedgovernment.

• UnitedNationshas issuedapleaforatemporaryceasefiretoallowthewoundedtobeevacuated.

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• ManyEuropeancountries,theUShasaskedtoceasehostilitiesandde-escalationoftension.

• TheUShasorderedevacuationofitstroopsstationedinTripoli.

• India also evacuated its contingent of peacekeeping forcescomprisingof15CRPFpersonnelfromTripoli.

• Indiahasalsoaskeditscitizenstoexerciseextremecaution.

Need for the Peace Talk in Libya

• TherecenttippingpointofthecrisiswastheattemptsbyMrHaftarledLNAtooustthegovernmentofMr.al-Sarraj(GNA)andtocaptureTripoli.

• TheU.S.hadalsotakenafavorableview.

• Hundreds of people have alreadybeen killed, but both sideshaverefusedtoagreetoaceasefiredespiteinternationalcalls.

• So the UN recognized Tripoli based government (GNA) hasdecidedtolaunchapeaceinitiativeaimedatstabilizingthewartorncountry.

• The Tripoli based government has proposed setting up anationalpeaceforumwithhelpfromtheUN,tobefollowedbysimultaneouspresidentialandparliamentaryelections.

• Mr.al-Sarrajmadetheofferatatimewhentherebelarmyofwarlord Khalifa Haftar was fighting the Tripoli governmenttroopsontheoutskirtsofthecapital.

• Butanofferforpeacealonewon’tmakeanydifferenceinthecomplex, war-torn polity. The country descended into chaosafterprotestsagainstDictatorMuammarQadhafiin2011.

• Mr.HaftarclaimsheisfightingterrorgroupsandwantstounifyLibyaunderhisleadership,whileMr.al-Sarrajsayshisgovernmentislegitimate.

India - Libya Relations

• Indiaestablished itsMission inTripoli in 1969.ThehighwatermarkofIndo-LibyarelationswasthevisitofLatePrimeMinister

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Smt.IndiraGandhitoLibyain1984.

• IndiawelcomedtheUNSecurityCouncilresolution1506adoptedonSeptember12,2003,liftingsanctionsimposedonLibya.Sincethen,therehasbeenaseriesofhigh-levelvisitsbetweenIndiaandLibya.

• The economic cooperationbetween the two countries spansthe entire spectrum of commercial activities, especially inHydrocarbon,Power,Constructionand IT sectorhave severalongoingprojectsinLibya.

• WhilemostofthemleftLibyaduringthepresentconflict,afewhundredIndiansstillremaininLibya,mainlyworkinginvariousuniversitiesandhospitals.

Important Bilateral Treaties and Agreements

• AvoidanceofDoubleTaxationandPreventionofFiscalEvasion(1981),

• AgreementforCooperationinthefieldofHealthandMedicalSciences(1983)

• AgreementonEconomicCooperation(1985),

• CulturalAgreement(1985)

• Bilateral Investment Promotion and Protection Agreement(BIPPA)(2007)

• CulturalCooperationAgreement(2007).

Way forward

• PrimeMinisteral-Sarraj’speaceplancanworkonly if thebigpowershelpenforceaceasefire.

• The civilwar in Libyamay lead to a newmigrant crisis fromAfricaintoEurope.

• LibyahasthelargestoilreserveinAfricaandoneofthelargestoilproducer in theworld. Instability inLibyamay increaseoilpricesglobally.ThiswillimpactIndiadirectly.

• Theworldpowers,includingtheU.S.,BritainandtheirGulfallies

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shouldlookbeyondtheirnarrowgeopoliticalinterestsandusetheirinfluencetoestablishorderinthecountry.

• PrimeMinisteral-Sarraj’soffercouldbeanewbeginningonlyifaceasefireisreached,andrespected,byallsides.

• Libyaillustrateswhatregimechangewarscoulddotoacountry.ChangingaregimeusingforcecouldbeeasyastheexamplesofIraqandLibyasuggest,butrebuildinganewstateisnot,anditcan’tbedonewiththeaidofmilitarypower.

• Allthecountriesthatinvadedtheoil-richNorthAfricannationandbacked itsparamilitarygroups, including theU.S.,BritainandtheirGulfallies,shouldsharesomeresponsibilityforLibya’scrisistoday.

#Practice Question

1. AcalmandsettledNorthAfricaisinevitableforthemigrationembattledEurope.Explain(200words)

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acute encephalitis synDroMe in bihar anD Malnutrition

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What is the Issue?

• The outbreak of acute encephalitis syndrome (AES) in Biharhasledtocloseto350casesandaround100deaths.

• While the causes ofAES are still researched, the associationwithhypoglycaemiaandlitchifruithasdrawnattention.

BACKGROUND

Acute Encephalitis Syndrome (AES)

• AcuteEncephalitisSyndrome(AES)isabroadterminvolvingseveralinfections,anditaffectsyoungchildren.

• AESisnotadisease;itisasyndrome.

• Under its umbrella comes the hypoglycaemia, JapaneseEncephalitis, Herpes meningitis, Race syndrome, cerebralmalaria,scrubtyphus,etc.

• AllofthemaregroupedunderAESastheyhaveaclassicaltriadofsuddenonsetoffever,convulsionsandlossofconsciousness.

• Imageresultforacuteencephalitissyndrome

Spread of the AES in Areas

• ThefirstAEScasewasrecordedin1995inMuzaffarpur,Bihar.

• EasternUttarPradeshtooseesfrequentoutbreaks.

• Thereisnofixedpattern,butayearwithhightemperatureandscantyrainusuallywitnesseshighcases.

• Last year, there had been very few cases (in Muzaffarpur)becausethegeneralpatternofafewdaysofhightemperaturefollowedbyrainshowerswasthere.

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• Therewere143deathsin2013and355in2014,whichdroppedto11in2017and7in2018.

• Butthisyear,theheathasbeenprolongedwithnospellsofrain.

Causes AES

• Thesyndromecanbecausedbyviruses,bacteriaorfungi.

• In India, the most common cause is the virus that causesJapaneseencephalitis(JE).

• HealthMinistryestimatesattribute5-35%ofAEScasestotheJEvirus.

• InBihar,theDirectorateofHealthServicesclaimedthattheJEvirushadcausedonlytwoofthetotal342AEScasesthisyear.

• Thesyndromeisalsocausedbyinfectionssuchasscrubtyphus,dengue,mumps,measles,andevenNipahorZikavirus.

• In the latest outbreak in Muzaffarpur, the cause is yet to beclinicallyidentifiedinmostofthechildren.

DISCUSSION

Hypoglycaemia and AES

• Hypoglycaemia (low blood sugar) is a commonly seen signamong AES patients, and the link has been the subject ofresearchforlong.

• The combination of AES with hypoglycaemia is unique toMuzaffarpur,VietnamandBangladesh.

• A2014studyinMuzaffarpursuggestedthathypoglycaemiawasthetriggerthatledtodiagnosisofencephalitis.

• So,HypoglycaemiaisnotasymptombutasignofAES.

• With98%ofAESpatientsinBiharalsosufferinghypoglycaemia,doctorsareattributingdeathstothelatter.

• In Bihar, convulsions in children (which is AES) are found incombinationwithhypoglycaemia.

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Issues with Litchi fruit

• EarlyresearcheshavedrawnparallelbetweencasesinBihar’sMuzaffarpurandinVietnam’sBacGiangprovince.

• Inbothplaces,therewerelitchiorchardsintheneighbourhood.

• Methylenecyclopropylglycine(MCPG),alsoknownashypoglycinA,isknowntobeacontentoflitchifruit.

• Undernourishedchildrenwhoatelitchiduringthedayandwenttobedonanemptystomachpresentedwithseriousillnessearlythenextmorning.

• WhenlitchiharvestingstartsinMay,severalworkersspendtimeinthefields.

• There, it is common for children to feed on fallen litchis andsleepwithoutfood.

• Thetoxininlitchi(MPCG)lowersbloodsugarlevelduringnight,andthesechildrenarefoundunconsciousinthemorning.

• Blood glucose falls sharply causing severe brainmalfunction(encephalopathy),leadingtoseizuresandcoma,anddeathinmanycases.

• However, this remains a subject of debate, and the possibleassociationneedstobedocumented.

Role of Malnutrition in these Deaths

• If toxins from litchi were causing hypoglycaemia, then thesecasesshouldhaveremainedconsistenteachyear.

• Also, it should have affected children of all socio-economicstrata.

• Butincontrast,thisyear,alldeathshavebeenrecordedinthelowerincomegroups.

• While well-nourished children eating litchi remain unaffectedeveniftheygotobedonanemptystomach,theunder-nourishedoneswereatgraverisk.

• Thisisbecauseunder-nourishedchildrenlacksufficientglucose

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reserveintheformofglycogen.

• Also,theproductionofglucosefromnon-carbohydratesourceisunsafeasitisunsustainableandthusstoppedmidway.

• Thisleadstolowbloodsugarlevel,givingwayforfurtherhealthcomplications.

• Inall,eveniflitchiisatriggeringfactor,therealcauseforadverseeffectsissaidtobemalnutrition.

• So,whilethecauseofAESisstillbeingresearched,hypoglycaemicAES may be caused by malnutrition, heat, lack of rain, andentero-virus.

Geographical Extend of the Disease

• Malnutrition ishigh inbothstates,andmalnourishedchildrenarepronetoinfection.

• AsperHealthMinistrydata,UPandBihartogetheraccountforover35%ofchilddeathsinthecountry.

• NationalFamilyHealthSurvey-4datashowthatin2015-16,48%childrenaged less than5 inBiharwere stunted,which is thehighestinIndia.

• Also, heat, humidity, unhygienic conditions and malnutritionwhichareuniquetotheseareas,togethercontributetotheriseinAES.

• Incidence ishigher in litchi fieldsaroundwhichmalnourishedchildrenlive.

Measures taken so far

• In 2014, 74% of sick children were saved through a simpleintervention by infusing 10% dextrose within 4 hours of theonsetofillness.

• Infusingdextroseisnecessarytocompletelystoptheattemptbythebodytoproduceglucosefromnon-carbohydratesource.

• Also,thepreventionstrategyofensuringthatnochildgoestobedwithouteatingamealwasadoptedfrom2015.Thisensured

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asharpdropinthenumberofchildrenfallingsick.

• TheBihargovernment introducedfreevaccinesatallprimaryhealthcentres.Thecurrentcoverageis70%.

• The central and state governments have also conductedawarenesscampaignaskingpeoplenottoexposetheirchildrentosun.

• Also, ensuring a proper diet and increased fluid intake wereinsisted.

• Besidesthese,earlyhospitalreferralandstandardtreatmentforconvulsions,highfeverandvomitingcansavelives.

Way forward

• The basic rights to food and nutrition must be viewed as aprimaryresponsibilityofastategovernment.

• Asthehealth isaconcurrentsubjectcentreandstateshouldsharetheresponsibilitytoeradicatethemenaceofAES.

• Strengthening thePDS systems in the regions andprovidingtargetedfoodsupplementscouldreducethenumbersofhumanloss.

• There need to be a thorough study to be conducted in thediseasehitregionsofBiharandUP.

• Research institutionsmustmakeavailableof the internationalhelpifnecessaryinthisregard.

• Just as individuals are punished for legal violations, thegovernmentmustbeheldlegallyaccountablefortheviolationofthesebasicrightsofchildrenduetothisdisease.

• Thesystematicviolationofbasic rightsmustbetreatedonaparwiththebreakdownofconstitutionalmachinery.

• Tosumup,rightto life isafundamentalright.Hence it isthedutyodanydemocraticstatetoensureitsfulfilment.

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#Practice Question

1. WhatisAcuteEncephalitisSyndrome(AES)?ExplainthecauseandremediesofAES.(200words)

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ncrb’s prison statistics inDia 2016 15

GS2: powers, functions and responsibilities of various Statutory, regulatory and various quasi-judicial bodies

What is the Issue?

• The Prison Statistics India 2016 reportwas published by theNationalCrimeRecordsBureau(NCRB)sometimeback.

• ThelackofcertaincategoriesofinformationinthereportcallsfortheNCRBtobemorepromptandopeninreleasingdata.

BACKGROUND

• Overcrowding : According to Centre’s reply in response to aquestion intheLokSabha in2017, 149 jails inthecountryareovercrowdedbymorethan100%andthat8areovercrowdedbymarginsofa500%.

• Under-trials-Morethan65%of theprisonpopulation in Indiaareundertrials.

• Legalaidlawyersarepoorlypaid,andoftenover-burdenedwithcases.Further, there isnomonitoringmechanism toevaluatethequalityoflegalaidrepresentationinmoststates.

• PrisonstructuresinIndiaareindilapidatedcondition.Further,lack of space, poor ventilation, poor sanitation and hygienemakelivingconditionsdeplorableinIndianprisons.

• The ratiobetween theprison staffand theprisonpopulationis approximately 1:7. In the absence of adequate prison staff,overcrowdingofprisons leadsto rampantviolenceandothercriminalactivitiesinsidethejails.

• Prisonersaresubjectedtoinhumanpsychologicalandphysicaltorture.Sexualabuseofpersonsincustodyisalsopartofthebroaderpatternoftortureincustody.

• In2015,atotalof1,584prisonersdiedinjails.Alargeproportionofthedeathsincustodywerefromnaturalandeasilycurable

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causesaggravatedbypoorprisonconditions.

• Labourisextractedfromprisonerswithoutpayingproperwages.

• AccordingtoHumansRightsWatch,a“rigid”classsystemexistsintheIndianprisons.Thereisrampantcorruptionintheprisonsystemandthosewhocanaffordtobribe,oftenenjoyluxuriesinprison.

• Poorsecuritymeasuresandprisonmanagementoftenleadstoviolenceamonginmatesandresultantinjuryandinsomecasesdeath.

• In theprison theproblemof theovercrowding,poorsanitaryfacilities, lackofphysicalandmentalactivities, lackofdecenthealthcare,increasethelikelihoodofhealthproblems.

• Women prisoners face number of challenges including poornutrional intake,poorhealth and lackofbasic sanitationandhygiene.

• Absenceofreformativeapproach in IndianprisonsystemhasnotonlyresultedinineffectiveintegrationwithsocietybutalsohasfailedtoprovideproductiveengagementopportunitiesforprisonersaftertheirreleaseSCJudgements.

Prisons and Prison Laws in India:

• PrisonisaStatesubjectunderList-IIoftheSeventhScheduleintheConstitution.

• ThemanagementandadministrationofPrisonsfallsexclusivelyinthedomainoftheStateGovernments,andisgovernedbythePrisonsAct,1894andthePrisonManualsoftherespectiveStateGovernments.

• Thus,Stateshavetheprimaryrole,responsibilityandpowertochangethecurrentprisonlaws,rulesandregulations.

• ThePrisonsAct,1894:Itcontainsvariousprovisionsrelatingtohealth,employment,dutiesofjailofficers,medicalexaminationofprisoners,prisonoffencesetc.

• TransferofPrisonersAct,1950-TheActdealswithtransferofprisonerfromstatetoanotherstate

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• RepatriationofPrisonersAct,2003:Theactenablesthetransferofforeignprisonerstothecountryoftheirorigintoservetheremainingpartoftheirsentence.ItalsoenablesthetransferofprisonersofIndianoriginconvictedbyaforeigncourttoservetheirsentenceinIndia

• ModelPrisonManual2016:Itaimsatbringinginbasicuniformityin laws, rulesand regulationsgoverning theadministrationofprisonsandthemanagementofprisonersacrossallthestatesandUTsinIndia

• LegalserviceAuthorityAct,1987:Accordingtothelaw,apersonincustodyisentitledtofreelegalaid.

Recommendations of the Mulla Committee (1980-83)

• Improving prison condition bymaking available proper food,clothing,sanitation;

• The prison staff to be properly trained and organized intodifferentcadres.

• Setting up an All India Service called the Indian Prisons &CorrectionalService.

• After-care,rehabilitationandprobationtobeanintegralpartofprisonservice.

• The press and public to be allowed inside prisons and alliedcorrectional institutions periodically, so that the public mayhavefirst-handinformationabouttheconditionsofprisonsandbewillingtoco-operateinrehabilitationwork.

• Undertrialsinjailstobereducedtobareminimumandtheybekeptawayfromconvicts.

• Undertrials constitute a sizable portion of prison population.Theirnumbertobereducedbyspeedytrialandliberalizationofbailprovisions.

• The Government may make an effort to provide adequatefinancialresources.

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Krishna Iyer Committee, 1987

• The committee mandated to study the condition of womenprisoners in the country, recommended induction of morewomeninthepoliceforceinviewoftheirspecialroleintacklingwomenandchildoffenders.

DISCUSSION

Highlights NCRB Report

• Prisonpopulation-Thereportnotes thatat theendof2016,therewerecloseto4,33,000peopleinprison.

• Of these, 68%wereundertrials, orpeoplewhoare yet tobefoundguiltyofthecrimestheyareaccusedof.

• India’sunder-trialpopulationremainsamongthehighestintheworld.

• Morethanhalfofallundertrialsweredetainedfor lessthan6monthsin2016.

• Thissuggeststhatthehighproportionofundertrialsintheoverallprisonpopulationmaybetheresultofunnecessaryarrestsandineffectivelegalaidduringremandhearings.

• Preventivedetention-Anotherconcernistheriseinthenumberofpeopleheldunderadministrative(or‘preventive’)detentionlawsinJammuandKashmir.

• Therehasbeena300% increase,with431detainees in 2016,comparedto90in2015.

• Administrative, or ‘preventive’, detention is being used byauthoritiestounfairlydetainpersonswithoutchargeortrialandcircumventregularcriminaljusticeprocedures.

• Prisonerrelease-Anewandimportantadditiontothereportisthedataonnumberofprisonerseligibletobereleasedandactuallyreleased.

• In 2016, out of the nearly 1,500 undertrials found eligible forreleaseunderSection436A,only929werereleased.

• [Section 436A of the Code of Criminal Procedure allows

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undertrialstobereleasedonapersonalbond.

• This ispossible if theyhaveundergonehalf of themaximumtermofimprisonmenttheywouldhavefacedifconvicted.]

• ResearchbyAmnestyIndiahasfoundthatprisonofficialsarefrequentlyunawareofthissectionandunwillingtoapplyit.

• In2017, theLawCommissionof Indiahadrecommendedthatundertrials who have completed a third of their maximumsentenceforoffencesattractingupto7yearsofimprisonmentbereleasedonbail.

• The NCRB could consider including the number of suchundertrials in itsupcomingreport for informingthepolicyontheuseofundertrialdetention.]

• Unnaturaldeaths-Unnaturaldeathsdoubledbetween2015and2016,from115to231.

• Mentalhealthconcerns-About6,000individualswithmentalillnesswereinjailin2016.

• Therateofsuicideamongprisonershasalsoincreasedby28%,from77in2015to102in2016.

• TheNationalHumanRightsCommissionin2014statedthatonaverage,apersonisone-and-a-halftimesmorelikelytocommitsuicideinprisonthanoutside.

• Thisisanindicatorofthemagnitudeofmentalhealthconcernswithinprisons.

• Moreover,thereportmentionsthattherewasonlyonementalhealthprofessionalforevery21,650prisoners,in2016.

• Only 6 States and one Union Territory had psychologists/psychiatrists.

• Odisha,U.P.andM.P.,the3Stateswiththemostprisonerswithmentalillness,didnothaveasinglepsychologistorpsychiatrist.

Shortcomings in the Report

• Demographicdetails-TheNCRBfailedtoincludedemographicdetailsofreligion,andtheScheduledCasteandScheduledTribe

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statusofprisoners.

• But these demographic details, which were consistentlypublishedforthelast20years,arecrucialtounderstandIndia’sprisonpopulation.

• It had, notably, been instrumental in revealing theoverrepresentation of Muslims, Dalits and Adivasis amongunder-trialsinprisons.

• [The 2015 report noted that Muslims, Dalits and Adivasisaccountedfor55%oftheunder-trialpopulation.

• Thiswasdespitethefactthattheymadeuponly50%oftheconvictpopulationand38%ofthetotalIndianpopulation.]

• Prison visits - The 2016 prison statistics do notmention thenumberofprisonvisitsbyofficialandnon-officialvisitors.

• [Thenon-officialvisitorsincludedistrictmagistratesandjudges,socialworkersandresearchers.]

• The number of “unnatural” deaths in prisons underlines therelevanceofprisonvisits.

• The details on this aspect can be used to provide someinformationonindependentmonitoringofprisons.

• This is essential to uncover torture and other forms of ill-treatment, increase transparency and balance the powerasymmetryinprisons.

• Mentalhealthconcerns-Thereportdoesnotprovideinformationon whether the reported mentally affected prisoners werediagnosedwithmentalillnessbeforeenteringprison.

• Theresultantlackofclaritythusmakesitdifficulttodeterminewhetherprisonconditionsworsenedtheirplight.

Steps taken so far

• ModernizationofPrisonsscheme:Theschemeformodernisationof prisons was launched in 2002-03 with the objective ofimproving the condition of prisons, prisoners and prisonpersonnel.Variouscomponents includedconstructionofnew

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jails, repair and renovation of existing jails, improvement insanitationandwatersupplyetc.

• E-Prisons Project: It aims to introduce efficiency in prisonmanagementthroughdigitization

• Draft National Policy on Prison Reforms and CorrectionalAdministration

Way forward

• This present report is different from its earlier versions onaccountofitsomissionofcertainkeydata.

• However,despite thesegaps, the reportbrings to light someconcernsinvolvedinIndia’sprisonsystem.

• The important information in the reporthas tobeutilised, tofacilitateadialogueonimprovingprisonpolicies.

• Goingforward,theNCRBshouldalsoaddresstheshortcomingsandopenaboutitsprisonstatisticsforappreciabledemocraticdiscourseinIndia.

#Practice Question

1. Dataoncriminalactivitiesarethefoundationstoneforanypolicyin this regard.Do you think that theNationalCrimeRecordsBureau(NCRB)serveitspurposeinpolicymakinginIndia.(200words)

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niti aayoG’s health inDex 201916


What is the Issue?

• ThesecondeditionofNITIAayog’sHealthIndexwasrecentlyreleased in its report titled ‘HealthyStates, Progressive India:ReportonRankofStatesandUTs’.

BACKGROUND

• ThereporthasbeendevelopedbyNITIAayog,withtechnicalassistance fromtheWorldBank,and inconsultationwith theMinistryofHealthandFamilyWelfare(MoHFW).

• The report ranks states and Union territories innovatively ontheiryear-on-year incrementalchange inhealthoutcomes,aswellas,theiroverallperformancewithrespecttoeachother.

• Itaimstoestablishanannualsystematictooltomeasureandunderstand the heterogeneity and complexity of the nation’sperformanceinHealth.

• The IndexrankstheStatesandUnionTerritoriesbasedon23health-relatedindicatorswhichinclude–

» neonatalmortalityrate

» under-fivemortalityrate

» proportionoflowbirthweightamongnew-borns

» progressintreatingtuberculosisandHIV

» fullimmunisationcoverage

» improvementstoadministrativecapabilityandpublichealthinfrastructure

» proportionofdistrictswithfunctionalCardiacCareUnits

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» proportionofspecialistpositionsvacantatdistricthospitals

• Thereporthasrankinginthreecategories-largerStates,smallerStates and Union Territories, to ensure comparison amongsimilarentities.

• TheHealth Indexdoesnot captureother relateddimensions,such as non-communicable diseases, infectious diseases andmentalhealth.

• Italsodoesnotgetuniformlyreliabledata,especiallyfromthegrowingprivatesector.

DISCUSSION

Need for the Health Index

• Health Index has been developed as a tool to leverage co-operativeandcompetitivefederalismtoacceleratethepaceofachievinghealthoutcomes.

• Itwouldalsoserveasaninstrumentfor“nudging”States&UnionTerritories (UTs)and theCentralMinistries toamuchgreaterfocusonoutputandoutcome-basedmeasurementof annualperformancethaniscurrentlythepractice.

• WiththeannualpublicationoftheIndexanditsavailabilityonpublicdomainonadynamicbasis,itisexpectedtokeepeverystakeholderalerttotheachievementofSustainableDevelopmentGoals(SDGs)Goalnumber3.

Highlights of the Report

• KeralacontinuedtotopthelistforthebestperformingStateinthehealthsectoramongthe21largeStates.

• KeralawasfollowedbyAndhraPradesh,Maharashtra,GujaratandPunjab,HimachalPradesh,JammuandKashmir,KarnatakaandTamilNadu.

• Andhra Pradesh and Maharashtra have had the additionaldistinctionofmakingincrementalprogressfromthebaseyear.

• UttarPradeshretainstheworstperformertagintheindex.

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• UttarPradeshcontinuedtobeatthebottomofthelistwithitsscorefallingto28.61;Keralagotascoreof74.01.

• OtherStatesatthebottomofthelistareBihar(32.11),Odisha(35.97)andMadhyaPradesh(38.39).

• Among theUTs,Chandigarh jumpedone spot to top the listwithascoreof(63.62).

• •It is followed by Dadra and Nagar Haveli, Lakshadweep,Puducherry,Delhi,AndamanandNicobarandDamanandDiu(41.66).

• Overall, only about half the States and UTs showed animprovementintheoverallscorebetween2015-16(baseyear)and2017-18(referenceyear).

• Amongthe8EmpoweredActionGroupStates,only3States(Rajasthan,JharkhandandChhattisgarh)showedimprovementintheoverallperformance.

Concerning Issues on Health

• EventhoughKeralaisthetopper,itsperformancehasslumpedformthelastyear.

• SomeStatesandUnionTerritoriesaredoingbetteronhealthandwell-beingevenwithalowereconomicoutput.

• Incontrast,othersarenotimprovinguponhighstandards,andsomeareactuallyslippingintheirperformance.

• In the assessment during 2017-18, a few large States showedlessencouragingprogress.

• Thisreflectsthelowprioritytheirgovernmentshaveaccordedtohealthandhumandevelopmentsincethefirsteditionoftherankingfor2015-16.

• Thedisparitiesareveryevidentintherankings,withthepopulousandpoliticallyimportantUttarPradeshbeinginthebottomofthelist.

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Criticism over the Index

• StateslikeTamilNadupointstotheinherentinconsistenciesandcontradictionsintheNITIAayog’shealthindex.

• Some of the methodologies used in the Health Index arequestionedforitsparitywithothersimilartools.

• ThereisalsocriticismoverthepurposefuldegradingofcertainstatesbytheNITIAayoginthecurrentindex.

• NitiAayog’shealthindexislesshelpfulforstategovernments,thanitshouldhavebeen.

• Asinglesetofindicatorsusedforcomparisonacrossallstatesisaverysimplisticpropositionconsideringthevastdifferencesinsocioeconomiccontexts,historiesandcomplexitiesacrossstates.

• someofthemostvitalgoalsofhealthsystems,likethereductionofcatastrophichealthexpendituresandimpoverishmentduetohealthcare,whichhavebeenaddressedthroughveryhighprofileinitiatives,arenotincludedinthelistthoughdataisavailable.

Way forward

• FortheHealthIndexconcepttoencourageStatesintoaction,publichealthmustbecomepartofthemainstreampolitics.

• TheCentre has paid attention to tertiary care and reductionof out-of-pocket expenses through financial risk protectioninitiativessuchasAyushmanBharat.

• But several States lag behind when it comes to creating aprimaryhealthcaresystemwithwell-equippedPHCs(PrimaryHealthCentres)astheunit.

• NeglectofsuchareliableprimarycareapproachaffectsStatessuchasBiharwhereinfantandneonatalmortalityandlowbirthweightarehigh.

• Special attention isneeded to raise the standardsofprimarycareinlowperformingstatessuchasOdisha,MadhyaPradesh,Uttarakhand,Rajasthan,AssamandJharkhand.

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• Stategovernmentsnowhavegreaterresourcesattheircommandunderthenewschemeoffinancialdevolution.

• SoStates,inpartnershipwiththeCentre,mustusethefundstoupgradeandtransformtheprimaryhealthcare.

#Practice Question

1. Niti Aayog’s health index is found less helpful for stategovernments,thanitshouldhavebeen.Explain(150words)

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national reGistry of citizen anD the MohaMMaD sanaullah’s case17

GS2&3: Government policies and interventions for development in various sectors and issues arising out of their design and implementation & Challenges to internal security

What is the Issue?

• UpontheordersoftheGauhatiHighCourt,MohammadSanaullahwasrecentlyreleasedonbailfromadetentioncampinAssam.

BACKGROUND

• AccordingtotheAssamAccord,individualswhoenteredAssamafterMarch24,1971areillegalimmigrants.

• Therearetwoparallelprocessestoestablishcitizenship:

» TheForeigners Tribunals operating under the ForeignersAct

» The National Register of Citizens (NRC), which is underpreparation

• Thesetwoprocessesarenominallyandformallyindependent.Butinpractice,thesetwosystemsinfluenceeachother.

• People,whohavebeendeclaredasforeignersbytheForeignersTribunals,andeventheirfamilies,weredroppedfromthedraftNRC.

• MohammadSanaullahhadbeendetainedfewdaysbackafteraForeignersTribunalhaddeclaredhimanillegalimmigrant.

• ItwaslearntthatMr.SanaullahhadservedforthreedecadesintheIndianArmy.

• Following this, after aweekof sustainedpublicpressure, theGauhatiHighCourt’sbailorderhascome.

• TheregisterismeanttobealistofIndiancitizenslivinginAssam.Itwasfirstcompiled in 1951,after theCensuscompletedthat

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year,acrude,approximatedocumentwithseveralirregularitiesinit.

• Oneofthestatedaimsoftheupdatingexerciseistoidentifyso-called“illegalimmigrants”inthestate.

• As per Assam accord, thosewho entered on or after March25, 1971, the eve of the BangladeshWar, would be declaredforeignersanddeported.

• The National Register of Citizens now takes its definition ofillegalimmigrantsfromtheAssamAccord–anyonewhocannotprovethattheyortheirancestorsenteredthecountrybeforethemidnightofMarch24,1971,wouldbedeclaredaforeignerand,presumably,facedeportation.

DISCUSSION

Issues with the Procedural

• In the intervening period of Sanaullah’s release, a shockingnumberofirregularitiessurfaced.

• Initsinquiryreport,theAssamborderpolicehadwrittenthatMr.Sanaullahwasa‘labourer’.

• The threemenwho signed the case report claimed that theinvestigatingofficerhadfabricatedtheirsignatures.

• The investigating officer himself admitted that itmight havebeenan“administrativemix-up”.

• Yet, itwas on the basis of such disputablematerial that theForeigners Tribunal concluded that Mr. Sanaullah was a“foreigner”andsenthimofftoadetentioncamp.

• [TheForeignersTribunal is aquasi-judicial body expected tofollowtheruleoflaw.]

Real issue Behind

• Investigative journalistshave revealedover the last fewyearsthat‘administrativeerrors’ofthiskindaretheruleratherthantheexception.

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• Sometimes, such disputable materials lead to people beingdetainedfor10yearsormore.

• For these individuals, without the benefit of media scrutiny,theremaybenobail;inotherwords,anendlessdetention.

• In most cases, the legally mandated initial inquiry before anindividualisbroughtbeforeatribunalasasuspected“foreigner”doesnothappen;itdidnothappenforMr.Sanaullah.

• ForeignersTribunalsthemselvesareonlyconstrainedbyaverylimitednumberofproceduralsafeguards.

• ThishasledtosituationswhereTribunalshaveissuednoticestoentirefamilies,insteadofjustthesuspected“foreigner”.

• Additionally,reportsshowthatForeignersTribunalshabituallydeclare individuals to be “foreigners” on the basis of clericalerrorsindocuments.

• These may include as small things as a spelling mistake, aninconsistencyinage,andsoon.

• Thehardesthitbysuchirregularitiesarethevulnerableandthemarginalised,whohave limiteddocumentationat thebestoftime.

• Theyarerarelyinapositiontocorrecterrorsacrossdocuments.

• Onoccasion,ordersdeterminingcitizenshiphavebeenpassedbytribunalswithoutevenassigningreasons,abasicelementoftheruleoflaw.

• In addition, a substantial number of individuals are sent todetentioncampswithoutbeingheard.

• Indetentioncentresfamiliesareseparated,andpeoplearenotallowedtomovebeyondnarrowconfinedspacesforyearsonend.

• DrivenbytheSupremeCourt,theNRCprocesshasbeendefinedbysealedcoversandopaqueproceedings.

• TheSupremeCourtdevelopedanewmethodofascertainingcitizenshipknownasthe“familytreemethod”.

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• This method was not debated or scrutinised publicly, and itisfoundthatpeoplefromthehinterlandwereunawareofthemethod.

• Also,thosewhowereawarehadparticulardifficultiesinputtingtogether“familytrees”ofthekindthatwererequired;theburdenfelldisproportionatelyuponwomen.

• Recently,aprocessallowedfor individuals tofile “objections”againstpeoplewhosenameshadappearedinthedraftNRC.

• Onthebasisofthis,suchpeoplewouldbeforcedtoonceagainprovetheircitizenship.

• This had resulted in thousands of indiscriminate objectionsbeing filed, on a seemingly randombasis, causing significanthardshipandtraumatocountlessindividuals.

• Thebi-annual talksbetweentheBorderSecurityForce(BSF)andBorderGuardsBangladeshhavenotflaggedthe issueofundocumentedmigration fromacross theborderbeyond theangleofnarcoticsandcattlesmuggling.

• Possiblesolutionwill lead toadiplomaticcrisis,not justwithBangladesh,butwithothernationstoo.ItalsoquestionsIndia’smoralauthorityontheinternationalarena.

Fate of Non-citizens in Future

• In2014,theSupremeCourthadaskedtheCentralgovernmentto enter into necessary discussions with the government ofBangladesh to streamline the process of deporting illegalBangladeshiimmigrants.

• AlthoughIndiaandBangladeshenteredintoanextraditiontreatyduringtheUPAIIregimein2013,theexpulsionofundocumentedimmigrants from Bangladesh allegedly residing in Assam, asensitiveissue.

• Those deemed to be foreigners are transferred to detentioncentres.Tilldate,therearesixacrossAssam,carvedoutoflocalprisons.

• Thereisnorepatriationtreatyunderwhichtheycanbedeported

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toBangladesh.

What is the Significance of Sanuallah’s Case?

• Citizenshipissuesareveryelementalandimportantdemandingcarefulimplementationandnecessaryproceduralsafeguards.

• Thisisespeciallytrueastheconsequencesofbeingdeclaredanon-citizenaregrave.

• Thesemay includedisenfranchisement, exclusion frompublicservices, incarceration in detention camps, statelessness, anddeportation.

• Ensuringruleoflawinsuchcasesisofutmostimportance.

• Giventhis,Mr.Sanuallah’scasehasbroughtthecitizenshipissueinAssamtothecentrestage.

• It can prompt some urgent national introspection about asituation inwhich thousands of people languish in detentioncampsforyears.

• ItmustserveasanurgentcallforrethinkingtheNationalRegisterofCitizens.

Role of Judiciary

• Inaprocesswithsuchflaws,andwheretheconsequencesaresodrastic,judiciaryinterventioniscrucial.

• Itisexpectedtofulfilitsroleofbeingtheguardianoffundamentalrightsandtheguarantoroftheruleoflaw.

• Incaseswherethecostoferrorissohigh,thesupremecourtshould realize that it is not “speed” that matters, but theprotectionofrights.

Way forward

• TheAssamesewouldliketoprotecttheirancestralland,cultureandidentity,aswellasapoliticalmajorityinthestate.

• ThosewhodonotmakeittothefinallistwillhavetofightcasesintheForeigners’TribunalsofAssam.

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• Indianeedstofindawayouttotheissuekeepinginmindthehumanrightsdimensions.

• Some experts and political scientists suggest issuing workpermitstothosewhoareprovednon-citizensasasolutiontotheproblem.

• The Assam Accord provides for granting citizenship to‘foreigners’throughnaturalisation.AsperitsClause5(4),namesofforeignerssodetectedwillbedeletedfromtheelectoralrollsinforce.

• Section3of theCitizenshipActasoriginallyenacted in 1950definedcitizenshipbybirthbysayingthatallpersonsborninIndia automatically become Indian citizens (whatever be thenationalityofhis/herparents).

• Hence,evenifbothparentswereforeigners,thepersonbecameanIndiancitizenifborninIndia.

• Many of the migrants lost their valid documents in naturalcalamities such as floodand landslides.Hence some formofamnestyshouldbegiventothegenuinecases.

• Even though it is a securityproblem, thehumanitarian angleshouldnotbeforgottenforthemerepoliticalconvenience.

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blacKlistinG paKistan unDer fatf18GS2&3: Important International institutions, agencies and fora, their structure, mandate Role of external state and non-state actors in creating challenges to internal security.

What is the Issue?

• TheFinancialActionTaskForce (FATF) is tohold itsPlenaryandWorkingGroupmeetinginOrlando,Florida.

• ItislikelytotakeupaproposaltodowngradePakistantotheblacklistonterroristfinancingfromitscurrentgreyliststatus.

BACKGROUND

• TheFinancialActionTaskForce(FATF)wassetupin1989bythewesternG7countries,withheadquartersinParis.

• It acts as an ‘international watchdog’ on issues of money-launderingandfinancingofterrorism.

• FATFhas37membersthat includeall5permanentmembersof the Security Council, and other countries with economicinfluence.

• Tworegionalorganisations,theGulfCooperationCouncil(GCC)andtheEuropeanCommission(EC)arealsoitsmembers.

• Saudi Arabia and Israel are “observer countries” (partialmembership).

• Indiabecameafullmemberin2010.

• Pakistanwasplacedon thegrey listby theFATF inJune forfailingtocurbanti-terrorfinancing.

• Ithasbeenscramblinginrecentmonthstoavoidbeingaddedtoa listofcountriesdeemednon-compliantwithanti-moneylaundering and terrorist financing regulations by the Paris-basedFATF,ameasurethatofficialsherefearcouldfurtherhurtitseconomy.

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Present status of Pakistan

• PakistanhasbeenundertheFATF’sscannersinceJune,2018.

• Itwas put under the greylist for terror financing andmoneylaunderingrisks.

• Thiswasdoneafteranassessmentofitsfinancialsystemandlawenforcementmechanisms.

• FATF and its partners such as theAsia PacificGroup (APG)reviewPakistan’sprocesses,systems,andweaknesses.

• Thisisdoneonthebasisofastandardmatrixforanti-moneylaundering (AML) and combating the financing of terrorism(CFT)regime.

Pakistan’s Subsequent Commitment

• InJune2018,Pakistangaveahigh-levelpoliticalcommitmenttoworkwiththeFATFandAPG.

• ItpromisedtostrengthenitsAML/CFTregime,andtoaddressitsstrategiccounter-terrorismfinancing-relateddeficiencies.

• Basedonthiscommitment,PakistanandtheFATFagreedonthemonitoringof 27 indicators under a 10-point actionplan,withdeadlines.

• Successful implementationof theactionplanand itsphysicalverificationbytheAPGwillleadtheFATFtomovePakistanoutofthegreylist.

• But failure in implementation and in meeting the deadlineswouldresultinPakistan’sblacklistingbySeptember2019.

FATF’s Current Stance on Pakistan

• TherewasonlylimitedprogressbyPakistanonactionplanitemsdueinJanuary2019.

• SoFATF,inFebruary,2019,urgedPakistantoswiftlycompleteitsactionplan,particularlythosewithtimelinesofMay2019.

• Pakistan,recently,presenteditsprogressonthe27indicatorsinameetingwiththeJointGroupoftheAPG.

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• ItwasagreedthattherehavebeenimprovementsintheAML/CFTregimeandtheintegrateddatabaseforcurrencydeclarationarrangements.

• ButtheJointGroupinformedPakistanthatitscomplianceon18ofthe27indicatorswasunsatisfactory.

• Theothergapsinprogressincludethefollowing:

• contradictory situations and poor coordination amongstakeholders

• lackofcooperationamonglawenforcementagenciesatvarioustiersofPakistan’sgovernment

• insufficientphysicalactionagainstproscribedorganisationstoblocktheflowoffunds

• Pakistanwasthusaskedtodomoretodemonstratestrictactionagainst8terroristgroups,andincombatingmoneylaundering.

• Itmustshowthatterrorfinancingprosecutionsresultineffective,proportionateandrestrictivesanctions.

Possible Action on Pakistan

• Pakistanfacesanestimatedannuallossof$10billionifitstaysinthegreylist.

• Ifblacklisted,itsalreadyfragileeconomywillgetevenweaker.

• Its $6billion loan agreementwith the InternationalMonetaryFund(IMF)couldbethreatened.

• Notably, the IMF has asked Pakistan to show commitmentagainstmoneylaunderingandterrorfinancing.

India’s Role in the Process

• IndiaisavotingmemberoftheFATFandAPG,andco-chairoftheJointGroup.

• [IndiaisrepresentedbytheDirectorGeneralofIndia’sFinancialIntelligenceUnit(FIU)intheJointGroup.]

• Pakistanhadasked for India’s removal fromthegroup,citingbiasandmotivatedaction,butthatdemandhasbeenrejected.

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• ButIndiawasnotpartofthegroupthatmovedtheresolutiontogreylistPakistanin2018inParis.

• ThemoversweretheUS,UK,France,andGermany;Chinadidnotopposeit.

Legal Framework in India to Contain Financial Crimes

• UnlawfulActivities(Prevention)Act,1967(UAPA):providedforthepreventionofcertainunlawfulactivitiesof individualsandassociationsandformattersconnectedtherewith.

• Itwasamendedin2004tocriminaliseterroristfinancing.

• Itwasfurtheramendedin2008tobroadenitsscopeandconfirmwiththerequirementsoftheUnitedNationsConventionontheSuppressionoftheFinancingofTerrorism.

• ConservationofForeignExchangeandPreventionofSmugglingActivitiesAct, 1974was introducedtopreventsmugglingandtheSmugglers.

• Foreign Exchange Manipulators Act,1976 provided for theforfeiture of illegally acquired properties of smugglers andforeignexchangemanipulators.

• ForeignContribution(Regulation)Act,1976dealtwithregulatingthe acceptance and utilization of foreign contribution andforeignhospitality.

• NarcoticDrugsandPsychotropicSubstancesAct, 1985madestringentprovisionsforthecontrolandregulationsofoperationsrelatingtonarcoticdrugsandpsychotropicsubstances.

• Prevention of Money Laundering Act, 2002 (PMLA) whichcameintoforcein2005andamendedin2009and2012wasintroducedtocounterthetrendofmoneylaundering.

• ForeignExchangeManagementAct(FEMA),1999wasenforcedto regulate the development and maintenance of foreignexchangemarket

Asia Pacific Group of FATF

• In 1995 an Asia-Pacific regional office called the “FATF-Asia

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Secretariat”wasestablishedandfundedbythegovernmentofAustralia.

• Itworkedwithcountries in theAsia-Pacific togeneratewideregional commitment to implement anti-money launderingpolicies.

• In1997,theAsia/PacificGrouponMoneyLaundering(APG)wasofficially established as an autonomous regional anti-moneylaunderingbody.

• It was set up by unanimous agreement among 13 originalfoundingmembers.

• A new secretariatwas also established to serve as the focalpointforAPGactivities,inSydney,Australia.

Way forward

• India’scompliancewithglobalstandardsincounteringmoneylaunderingandterrorfundingisontherighttrack,howeverthegapsneedtobeaddressedandworkedupon.

• Indiahasadopteditsownmodeltofightmoneylaunderingandterroristfinancingbasedonitsspecificdomesticandregionalconsiderations.

• ToenhancethefunctionalityoftheFATFinIndia,governmentagencies have launched aNational RiskAssessment exerciseon January 2016 so as to identify the sectors that aremostsusceptible to money laundering and terror funding andtherebyplugdeficiencies, ifany.ThisconformswiththeFATFrecommendations.

#Practice Question

1. WhatyoumeanbyFATFgreylist?DoyouthinkthatthepresentdevelopmentatFATFonPakistanwillhelpincontainterroristfinancinginIndia?(200words)

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liquiDity risK ManaGeMent fraMeWorK for nbfcs anD cics - rbi19

GS3: Indian Economy and issues relating to planning, mobilization of resources, growth, development

What is the Issue?

• RBI hasput up thedraft circular, LiquidityRiskManagementFramework for Non-Banking Financial Companies and CoreInvestmentCompanies.

BACKGROUND

Existing Liquidity risk management Mechanisms

• RBInotifyRiskManagementSystemsinBankswhichincludesthemultiplestepsindifferentverticalsofthebanking.

• Banksintheprocessoffinancialintermediationareconfrontedwithvariouskindsoffinancialandnon-financialrisksviz.,credit,interest rate, foreign exchange rate, liquidity, equity price,commodity price, legal, regulatory, reputational, operational,etc.

• These risks are highly interdependent and events that affectoneareaofriskcanhaveramificationsforarangeofotherriskcategories.

• Thus, top management of banks should attach considerableimportancetoimprovetheabilitytoidentify,measure,monitorandcontroltheoveralllevelofrisksundertaken.

• Theprimaryresponsibilityofunderstandingtherisksrunbythebank and ensuring that the risks are appropriatelymanagedshouldclearlybevestedwiththeBoardofDirectors.

• TheBoardshouldsetrisklimitsbyassessingthebank’sriskandrisk-bearingcapacity.

• At organisational level, overall risk management should beassigned to an independentRiskManagementCommitteeorExecutiveCommitteeofthetopExecutivesthatreportsdirectly

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totheBoardofDirectors.

DISCUSSION

Need for Present Regulations

• The recent incidentof IL&FShas triggered theRBI to takeafreshlookattheliquidityriskmanagementatTheNBFCsandCoreInvestmentcompanies.

• ManylargeNBFCshavecomeundersevereliquiditypressure,compelling them tobringdown their relianceon commercialpapersfollowingseriesofdefaultbygroupcompaniesofIL&FSbeginningSeptemberlastyear.

• EversincetheIL&FScrisiserupted,bankshavebeenaversetolendingtothesector,whichhasputtheminatightspot.ThereareconcernsthatNBFCsmayrunoutofmoney,whichwillleadtodefaults.

• According to estimates, aboutRs 1 lakh crore of commercialpapers(CPs)raisedbyNBFCsfrominvestorswillcomeupforredemptioninthenextthreemonths.

• Recently, DHFLwas downgraded on a concern of default inpaymentobligationtowardsCPs.

• Further,RBIintendstoprescribestringentrulesforliquidityriskmanagementasmanyNBFCswerehitbyasevereassetliabilitymismatch.

• India’sshadowlendershavebeenunderpressuresincelastyear,whenaseriesofdefaultsbyInfrastructureLeasing&FinancialServices forced the government to intervene and exposedweaknessesinthesector.

• Sincethen,thebanksandmutualfundswhichprovidedfundingto the NBFCs have reduced their exposure, creating a cashcrunch which caused the shadow lenders to sell assets andrestrictnewloans.

• Theyrantheirbusinessusingshorttermfundstogivelongtermloans.

• MostoftheNBFCsworkingundertheradaroftheRBItendto

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evadetheirliquiditypositionwiththem.

• Itfurthercomplicatestheriskinthefinancialsystem,whichisalreadystrainedbybadloans.

• HencetheNBFCs,mostofwhomarecashstrapped,wanttheRBItoimplementliquidityriskmanagementrulesonlyintandemwithanarrangementformakingavailablemuchneededfunds.

What are the New Rules?

• LCR - Non-Banking Financial Companies (NBFCs) shouldmaintainaliquiditycoverageratio(LCR)inlinewithbanks.

• [The LCR requires banks to hold enough high-quality liquidassets(HQLA)thatcanbesoldtofundbanksduringastressscenario.]

• TheLCRrequirementshallbebindingonNBFCsfromApril01,2020.

• TheliquidityruleswereproposedforallNBFCs.

• ButforNBFCswithassetsaboveRs5,000croreanddeposit-takingNBFCs,theLCRismandatory.

• HQLA-RBIhasaskedthefirmstohavesufficientHighQualityLiquidAsset(HQLA)thatwouldkeepthemliquidforat least30days.

• HQLAsaregenerallycashorgovernmentsecuritiesthatcanbequicklysoldinthemarkettoraisecash.

• TheminimumHQLAstobeheldfromApril1,2020willbe60%oftheLCR.

• But byApril 1, 2024, large and deposit-takingNBFCs shouldhaveHQLAsofaminimumof100%ofnetcashoutflowsoverthenext30calendardays.

• Collaterals-AnNBFCmustactivelymanageitscollateralpositions,differentiatingbetweenencumberedandunencumbered(freeofliabilities)assets.

• NBFCsshouldmonitorsuchassetssothattheycanbemobilisedinatimelymanner.

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• AllNBFCsmusthavecontingencyfundingplansforrespondingtoseveredisruptions.

• Liquidity position - Firms are to measure their liquidity in agranularmanner,measuringasminutelyas1-7days’,8-14days’,and15-30days’period.

• Asset-liability mismatches should not exceed 10-20% in thetimeframesrunninguptoayear.

• LiquiditypositionhastobereportedtotheRBI,alongwiththeinterestratesensitivitystatement.

• Liquiditypositions should alsobedisclosed to thepublic forinvestors.

• Inadditiontothestructuralanddynamicliquidityneeds,astockapproach will also have to be maintained to gauge liquidityneeds.

• NBFCswerethusaskedtomaintaintoolsthatwouldgenerateearlywarningonrisksituations.

• Under the revised framework, even if a borrower pays to anNBFCbut has defaultedwith a bank/small finance bank, theNBFCgetsropedinsigningtheInterCreditorAgreementandbecomespartoftheresolutionplan.

Issues with the Present Guidelines

• NBFCsmayseeprofitmarginssqueezingfromRBIdraftliquiditynorms.

• Insteadofprovidingamuch-expectedliquiditywindowtonon-bankfinancecompaniesviatheregularlenders,thecentralbanktookatougherstance

• The proposed guidelines should be made concomitant withprovisionofamechanismofliquiditysupportforNBFCs.

• Currently,withthetightliquidityconditionsintheindustryhavemadegenerationoffundsaverydifficulttask.

• NBFCs request the RBI to kindly consider putting in place asuitablemechanismforsuchliquiditysupport.

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• Currently, tight liquidityconditions inthe industryhavemadegenerationoffundsaverydifficulttask,andwerequesttheRBIto kindly consider putting in place a suitablemechanism forsuchliquiditysupport.

• Alternatively,theimplementationoftheseguidelinesmaykindlybedeferreduntil returnofnormal liquidityconditions for thesector.

• Creditgrowthisunlikelytopickupdespitethethreesuccessiverate cuts by the central bank due to the capital constraintsatbanksandthedeepeningcrisis inthenon-banking lenderssector.

RBI’s Proposal to Introduce LCR for large NBFCs

• ThefrequentincidentsofthefailuresamongthesytemeticallyimportantNBFCstriggeredRBItointervineewithanewproposaltolargeNBFCs.

• RBIproposed introducinga liquiditycoverageratio(LCR)forlarge non-banking finance companies (NBFC) to help tackleliquidityproblemsinthesector.

• • ThecentralbanksaiditplannedtoimplementLCR,aliquiditybuffer, “in a calibratedmanner”over four years starting fromApril2020.

• The LCR is proposed for all deposit-takingNBFCs, and non-deposittakingNBFCswithanassetsizeofRs5,000crore($720million)andabove.

• NBFCswillhavetomaintainminimumhigh-qualityliquidassetsof100percentoftotalnetcashoutflowsoverthefollowing30calendardays.

Way forward

• The regulatorwon’t bail out any particular company butwillensuretheNBFCsaremoredisciplinedandstrongatthecostofsomeshort-termpain.

• Ifimplemented,thedraftguidelinescouldhittheNBFCs’marginsandbusinessgrowth.

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• Imminent crisis” in NBFCs sector asmisadventures by somelargeentitiesandcredit squeezepresentaperfect recipe fordisaster.

• SincetheIL&FScrisis,therehasbeennotableuncertaintyintheNBFCmarket.

• Overthepastfewmonths,manyNBFCshavenotbeenabletoborrowfrommarkets,includingbanks.

• Inthisbackdrop,theregulatorynormsaregoodforthelong-termsustainabilityoftheNBFCsector.

• WiththeRBIbringingintheguidelinestomanageasset-liabilitymismatches,lenderswillgetmoreconfidence.

• ItensuresthatanNBFChassufficientcollateraltomeetexpectedandunexpectedborrowingneeds.

• Thisisanewrequirementwherethedecision-makingisnotonlylinkedtothequantumofloanextendedbythelendersbutalsothenumberoflenders.

#Practice Questions

1. NBFCsareinevitablefortheeconomicgrowthinthecountry.Doyouthinkthepresentcreditriskmanagementsystemsaresupportiveoftheseobjectives?(200words)

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Why inDia neeDs a solar ManufacturinG strateGy?20

GS3: Infrastructure: Energy, Ports, Roads, Airports, And Railways etc.

What is the Issue?

• IndiahasmadeanambitioustargetforitsNationalsolarmissionandco-authoredtostarttheInternationalSolaralliance.

• Despitemakingsignificantprogressinsolarpowergeneration,IndiastillreliesonChinaforequipment.Inthiscontext,hereisanoverviewofIndia’ssolarmanufacturingpotentialsandshortfalls.

BACKGROUND

• ThePrimeMinister’semphasissince2014hasgivenanewfilliptosolarpowerinstallationinIndia.

• Indiahasmadesignificantprogressincreatingcapacityforsolarenergygenerationinthelastfewyears.

• Theunitcostsofsolarpowerhavefallen,andsolarenergyhasbecome increasingly competitive with alternative sources ofenergy.

• Indiaexpandeditssolargenerationcapacity8timesfrom2,650MWinMay,2014toover20GWinJanuary,2018,and28.18GWinMarch,2019.

• Thegovernmenthadaninitialtargetof20GWofsolarcapacityby2022,whichwasachieved4yearsaheadofschedule.

• In2015,thetargetwasraisedto100GWofsolarcapacityby2022.

India’s Solar Manufacturing Potential at Present

• Thesupplychainofsolarphotovoltaic(PV)panelmanufacturingis as follows: silicon production from silicates, production ofsolar grade silicon ingots, solarwafermanufacturing and PV

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moduleassembly.

• The capital expenditure and technical know-how needed fortheseprocessesdecreasesfromthefirstitemtothelast.

• Moreover, silicon production is more capital-intensive thanmoduleassembly.

• MostIndiancompaniesareengagedinonlymoduleassemblyorwafermanufacturingandmoduleassembly.

• NoIndiancompanyisinvolvedinsiliconproduction,althoughafewaremakingstridestowardsit.

• Finally,Indiamaynotseedomesticplayers,intheshorttermatleast,replacingimportedones.

Requirement of Solar cells

• AccordingtotheMinistryofNewandRenewableEnergy(2018),Indiahasanannualsolarcellmanufacturingcapacityofabout3GW.Butmarkedly,theaverageannualdemandis20GW.

• Theshortfallismetbyimportsofsolarpanels.Thegovernmentisanearmonopsonisticbuyer(themarketconditionthatexistswhenthereisonebuyer)insolarsector.

• Indiaisregardedbytheglobalsolarindustryasoneofthemostpromisingmarkets.

• Butthelow-costChineseimportshaveundercutIndia’sambitionstodevelopitsownsolartechnologysuppliers.

• Imports,mostlyfromChina,accountedfor90%of2017sales,upfrom86%in2014.

Reasons for the Skewed Growth of its Solar Industry

• Indiaisenergydeficient,yetblessedwithplentyofsunlightformostoftheyear.

• Ideallyspeaking,Indiashouldhavetakenaleadinsolarpanelmanufacturetogeneratesolarenergylongago,butitdidnot.

• Sodespitethenewpolicyfocusonsolarplantinstallation,Indiaisstillnotasolarpanelmanufacturer.

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• Indiahasnorealplaninplacetoensuresolarpanelmanufacture,muchlikealackofadedicatedIndustrialPolicy.

• [The share of all manufacturing in GDP was 16% in 1991; itremainedthesamein2017.

• Thesolarpowerpotentialoffersamanufacturingopportunity.]

China’s Advantage over India

• China’scostadvantagederivesfromcapabilitiesonthreefronts.

• Corecompetence-Ittakestimeforcompaniestolearnandputinactionnewtechnologies.

• When the solar industry in China began to grow, Chinesecompaniesalreadypossessedtheknow-how.

• The 6 largest Chinese manufacturers had core technicalcompetenceinsemiconductorswellbeforestartingsolarcellsmanufacturing.

• In contrast, Indian companies hadno learningbackground insemiconductorswhenthesolarindustryinIndiabegantogrowfrom2011.

• Stategovernmentsneedtosupportsemiconductorproductionaspartofadeterminedindustrialpolicytodevelopthiscapacity.

• Governmentpolicy-TheChinesegovernmenthassubsidisedlandacquisition,rawmaterial,labourandexport,amongothers.

• NoneofthisismatchedbytheIndiangovernment.

• Perhapsevenmoreimportantiscommitmentbythegovernmenttoprocureoverthelongrun.

• This is crucial for investment in building up the design andmanufacturingforeachofthe4stagesofproductionofsolarpowerequipment.

• Costofcapital-CostofcapitalisanotheradvantageforChinainthisregard.

• The cost of debt in India (11%) is highest in the Asia-Pacificregion,whileinChinaitisabout5%.

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• Sustaining exports - In 2018, China cut financial support todevelopersandhaltedapprovalfornewsolarprojects.

• Asa result,Chineseproducerswill cutprices to sustain theirmanufacturingplantcapacityutilisationbysustainingexportstoIndia.

• Inotherwords,theChinesestrategyistoundercutanyplannedeffortbyIndiatodeveloptheentiresupplychaincapacitywithinIndia.

• It thereby ensures that dependence on imports from Chinacontinues.

India’s Efforts in this Regard

• Inthesolarpanelmanufacturingsector,theIndiangovernmentallows100%foreigninvestmentasequity.

• Thesectoralsoqualifiesforautomaticapproval.

• Thegovernmentisalsoencouragingforeigninvestorstosetuprenewableenergy-basedpowergenerationprojectsonbuild-own-operatebasis.

• ButtheChinesegovernmentisclearlyadoptinganaggressivestance,exploitingIndia’sgrowingdemandforsolarpower.

• Thesafeguarddutyonsolarcellsnowputslocallymadepanelsonparwithimportedonesintermsofcost.

• Butthedomesticsectorneedstodoalotmoretobeeffective.

Government Initiatives

• The ISA’smajorobjectives includeglobaldeploymentofover1,000GW of solar generation capacity and mobilisation ofinvestmentofoverUS$1000billionintosolarenergyby2030.

• TheNationalSolarMission isoneoftheeightmissionsoftheNationalActionPlanonClimateChange(NAPCC).ItwillmakeIndiaoneofthelargestGreenEnergyproducersintheworld.

Areas to be Focused in near Future

• Remaining dependent on imports only leads to short-term

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benefitsforIndia.

• Substituting for imports requires human capabilities,technologicalcapabilitiesandcapitalintheformoffinance.

• Makinginputcomponentslocallyinsteadofimportingthemandputting themodules together here are essential for coveringtheentiresupplychain.

• Publicprocurementshouldbepromotedwithhighpriority.

• ThegovernmentisstillfreetocalloutbidsforsolarpowerplantswiththerequirementthatthesebemadefullyinIndia.

• This will not violate any World Trade Organization (WTO)commitment.

• However,nobidswillbereceivedasmanufacturingfacilitiesforthesedonotexistinthecountry.

• If thebidsare largeenoughwith supplies spreadoveryears,thenbidderswillemergeandlocalmanufacturingcanbegin.

• ThisisbecauseitwillgiveenoughtimeforagreenfieldinvestmenttobemadeformanufacturinginIndia.

• Inall, Indianeedsasolarmanufacturingstrategy,perhapsliketheAutomotiveMissionPlan(2006-2016).

• [The Plan is credited with making India one of the largestmanufacturersoftwo-wheelers,three-wheelers,four-wheelersandlorriesintheworld.]

• MostIndiancompaniesareengagedinonlymoduleassemblyorwafermanufacturingandmoduleassembly.NoIndiancompanyis involved in silicon production, although a few are makingstridestowardsit.

Way forward

• Indiaisregardedbytheglobalsolarindustryasoneofthemostpromisingmarkets,butlow-costChineseimportshaveundercutitsambitionstodevelopitsownsolartechnologysuppliers.

• Imports,mostlyfromChina,accountedfor90%of2017sales,upfrom86%in2014.

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• Substituting for imports requires human capabilities,technologicalcapabilitiesandcapitalintheformoffinance.

• Onthefirsttwocapabilities,thesupplychainofsolarphotovoltaicpanel manufacturing is as follows: silicon production fromsilicates(sand);productionofsolargradesilicon ingots;solarwafermanufacturing;andPVmoduleassembly.

• The capital expenditure and technical know-how needed fortheseprocessesdecreasesfromthefirstitemtothelast,i.e.siliconproductionismorecapital-intensivethanmoduleassembly.

• Whilethesafeguarddutynowputslocallymadepanelsonparwithimportedonesintermsofcost,thedomesticsectorneedstodoalotmoretobeeffective.

• Publicprocurementisthewayforward.ThegovernmentisstillfreetocalloutbidsforsolarpowerplantswiththerequirementthatthesebemadefullyinIndia.

# Practice Question

1. Despitemakingsignificantprogressinsolarpowergeneration,Indiastill reliesonChina forequipment.Criticallyanalyse thereasonsforthestagnationofsolarmanufacturinginIndia.(250words)

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iMpact of air pollution on huMan health 21

GS3: Conservation, environmental pollution and degradation, environmental impact assessment

What is the Issue?

• TheUnitedNationshaswarnedthat9outof10peopleontheplanetarenowbreathingpollutedairandnobodyissafefromairpollution,inareportontheeveoftheWorldEnvironmentDay.

BACKGROUND

• Thefivemainsourcesofairpollutionare-

• Indoorburningoffossilfuels,woodsandotherbiomasstocook,heatandlighthomes

• Industry, includingpowergenerationsuchascoal-firedplantsanddieselgenerators

• Transport,especiallyvehicleswithdieselengines

• Agriculture, including livestock,whichproducesmethaneandammonia,ricepaddies,whichproducemethane,andtheburningofagriculturalwaste

• Openwasteburningandorganicwasteinlandfills

• Burningfossilfuelsforpower,transportandindustryisamajorcontributortoairpollution.

• Someofthesamepollutantscontributetobothclimatechangeand local air pollution, including black carbon or soot andmethane.

• Miningoperationsinlargescale

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Major air Pollutants

• Particlepollutants

• Ground-levelozone

• Blackcarbon&Carbonmonoxide

• Sulfurdioxide

• Nitrogenoxides

• Lead

DISCUSSION

Possible Health Hazards

• Respiratorydisorders

• Cardiovasculardysfunctions

• Neuropsychiatriccomplications

• Fatigue,headachesandanxietyIrritationoftheeyes,

• noseandthroatDamagetoreproductiveorgansHarmtotheliver,

• spleenandblood

Air Pollution and its Impact

• Air pollution has led to a growing global health crisis,whichalready causes about 7million deaths per year according toWHO.

• Itisaswellthemainsourceofplanet-warmingcarbonemissions.

• In the 15countries thatemit themostplanet-warminggases,thecostofairpollutionforpublichealthisestimatedatmorethan4%ofGDP.

• Incomparison,keepingheattotheParisAgreementtemperaturelimitswouldrequireinvestingabout1%ofglobalGDP.

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Human Impacts of air Pollution

• Airpollutionkills800peopleeveryhouror13everyminute.

• Thisaccountsformorethan3timestheamountofpeoplewhodiefrommalaria,tuberculosisandAIDScombinedeachyear.

• Air pollution is responsible for 26% of deaths from ischemicheartdisease, 24%ofdeaths fromstrokes,43% fromchronicobstructivepulmonarydiseaseand29%fromlungcancer.

• Household air pollution causes about 3.8 million prematuredeathseachyear.

• Thevastmajorityofthemareinthedevelopingworld,andabout60%ofthesedeathsareamongwomenandchildren.

• 93% of children worldwide live in areas where air pollutionexceedsWHOguidelines.

• 600,000childrenbelowtheageof15diedfromrespiratorytractinfectionsin2016.

• In children, it is associated with low birth weight, asthma,childhoodcancers,obesity,poorlungdevelopmentandautism,amongothers.

• Asmanyas97%ofcitiesinlow-andmiddle-incomecountrieswith more than 100,000 inhabitants do not meet theWHOminimumairqualitylevels.

• Inhigh-incomecountries,29%ofcitiesfallshortofguidelines.

• Amongurbanambientairpollutionfactorsfromfineparticulatematter,-

• about25%iscontributedbytraffic

• 20%iscontributedbydomesticfuelburning

• 15% is contributedby industrial activities including electricitygeneration

• Keepingglobalwarmingwellbelow2°Ccouldsaveaboutonemillionlivesayearby2050throughreducingairpollutionalone.

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India’s Effort to Contain Air Pollution

• TheAir(PreventionandControlofPollution)Act,1981:Itprovidesfortheprevention,controlandabatementofairpollutionandfortheestablishmentofBoardsattheCentralandStatelevelswithaviewtocarryingouttheaforesaidpurposes.

• The Environment (Protection) Act,1986 (Air Act): It is anumbrella legislationdesigned toprovide a framework for theco-ordinationofcentralandstateauthoritiesestablishedundertheWaterAct,1974andAirAct,1981.

• NationalCleanAirProgramme:Itaimstomeetprescribedannualaverageambientstandardsatall locations inthecountry inastipulatedtimeframe.

• LaunchofNationalAirQualityindex(AQI):

• DustMitigationPlan:CentrehasnotifiedDustMitigationPlanunderEnvironment(Protection)Act,1986toarrestdustpollution.

• IndianGovernmentplanstohaveanall-electricfleetofvehiclesby 2030. For promotion of electric vehicles FAME (FasterAdoption and Manufacturing of (hybrid &) Electric vehiclesschemehasbeenlaunched.

• Measurestocurbindoorairpollution:ThegovernmentlaunchedPradhanMantriUjjwalaYojnatoreplaceuncleancookingfuelsused in themost underprivileged householdswith clean andmoreefficientLPG(LiquefiedPetroleumGas).

• Graded Response Action Plan (GRAP) for Delhi-NCR: UnderGRAP,thereare4stagesofpollution–ModeratetoPoor,VeryPoor,SevereandSevere+orEmergencyandactionare listedthatneedtobeundertakenasthelevelsarebreached.

International Efforts to Tackle Air Pollution

• To alleviate the negative effects of atmospheric pollution onhealth,theWorldHealthOrganization(WHO)andtheClimateandCleanAirCoalition(CCAC)–madeupoftheUnitedNationsEnvironmentProgramme(UNEP)and54nations,amongother

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agencies–launchedtheBreatheLifeinitiative.

• This is a program that aims to “aims to mobilize cities andindividualstoprotectourhealthandourplanetfromtheeffectsofairpollution”andwhichhasfixedtheobjectiveofcuttingbyhalfthenumberofdeathslinkedtoairpollutionbefore2030.

• Actionswillbelocalandfocusedonimprovingtransport,wastemanagement, indoorairquality,energysupply, industry, foodandagriculture.

Poverty and Air Pollution

• Amajorhurdle inaddressingairpollution ispoverty.Povertyriddenhouseholdsarestilldependentoncookstoves,heatingfuel, and kerosene lightingwhich are all common sources ofpollution.

• Further, though air pollution affects all, but the poorest andmostmarginalizedpeopleareworstaffectedandairpollutionrelateddeathsoccurmostlyinpooresthouseholds.

• Governance: Poor governance is also a major challenge incurbingairpollutionsincelaxenforcementofstandardsforcarexhausts,cropburning,ordustfromconstructionsitesleadstomoreparticulatesintheair.

• Technological challenges: major technological challengesinclude Old technology and High average age of vehicles,obsoletetechnologyusedinindustriesetc.

Way forward

• Airpollutionshavemajorimpactsonhumanhealth,triggering,and inducingmany diseases leading to highmorbidities andmortalities,particularlyinthedevelopingcountriessuchasIran.

• Therefore,airpollutionscontrolisvitalandshouldbeonthetopofprioritylistofthegovernments.

• Thepolicymakersandlegislatorsinthesecountriesmustupdatealllawsandregulationsrelatedtoairpollutions.

• Coordination between different departments involving in

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air pollutions must be leaded by a powerful environmentalprotectionorganization.

• Aneffectiveenvironmentalprotectionorganizationshouldhaveenough budgets for administration, research, development,monitoring, and full control of the environment including airpollution.

• It is important to strengthenpublic transport and encouragepeopletousepublictransport.

• Emphasis shouldbe laidon reducingemissions from thermalpower plants and industry by instituting strong emissionsstandards.

• Both in-situ crop residue management and creation ofinfrastructure and market for the use and management ofstubble outside of the field (ex-situmanagement) should beused.

• Measures shouldbe taken for building and improvingproperwaste management systems and efforts should be made toreduce,reuseandrecyclewaste.

• Massive thrust should be provided to mass awarenesscampaignsinvolvingcommunityorganisationssuchasresident’sassociations,students,voluntarybodiesandNGOs.

• Thereisadireneedforpoliticalwillforeffectiveimplementationof environmental regulations andensure coordination amongallstakeholders.

• Researchanddevelopmentbackedwithadequatefundingshouldbeencouragedtodevelopandpromotegreentechnologies.

# Practice Question

1. Analysethehumancostofairpollution?Suggestsomemeasurestotackleitsimpactonhumanlife.(200words)

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st. petersburG international econoMic foruM

22

What is the Issue?

• The23rdSt.PetersburgInternationalEconomicForum(SPIEF)wasrecentlyheldinSt.Petersburg,Russia.

BACKGROUND

• ThefirstSPIEFwasheldin1997.Nowoverpasttwodecades,ithasbecomeoneofleadingglobalplatformsforcommunicationbetween business representatives and discussion of crucialglobaleconomicissues.

• Since2006ithasbeenheldunderauspicesandparticipationforRussianPresidentVladimirPutin.

• The SPIEF 2018 edition brought together around 17,000participantsfrommorethan140countries.

• At the event Russia tries to boost its appeal to internationalbusinessesandinvestors.

• St. Petersburg International Economic Forum 2019: broughttogether high-profile politicians, leaders from participatingcountries,leadersofInternationalorganisation,representativesofmajor internationalcompaniesandorganisationsaswellasexpertsfromvariousfields.

Russia’s Relation with the U.S.

• St.PetersburgInternationalEconomicForumisRussia’sannualinvestmentgathering.

• Themeet tookplace in thebackdropofheightened tensionsbetweentheU.S.andRussiaandChina.

• Unsurprisingly, it was boycotted by the U.S. Ambassador toRussia,JonHuntsman.

• HisabsencewasascribedtotheprevailingenvironmentinRussiaforforeignentrepreneurs.

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• ThisisparticularlyinregardswiththedetentionofU.S.privateequityinvestorMichaelCalveyonallegationsoffraud.

• Conversely, the Chinese telecommunications equipmentmanufacturer Huawei signed an agreement with Russia’sprincipalmobileoperatortostart5Gnetworks.

• ThiscameafterWashingtonblacklistedHuawei,prohibiting itfromsellingtechnologytotheU.S.

• The U.S. also barred domestic firms from supplyingsemiconductorstoBeijing.

DISCUSSION

Geopolitical Irritants Developed

• The rift between theWest and Russia beganwithMoscow’sannexation of Crimea in 2014 and the stand-off in easternUkrainethatcontinues.

• Russia’stensionswiththeU.S.andsomeEUcountriesarealsoduetotheiroppositiontothe1,200-km-longNordStream2gaspipelinefromRussiatoGermany.

• U.S.plans toexport liquefiednaturalgas toEurope,which ispartlythereasonwhyitobjectsRussia’sinitiative.

• ThwartingRussia’s ambition to dominate the region’s energymarketisalsooneofU.S.’sobjectives.

• Another more sensitive issue is U.S. Special Counsel RobertMueller’sinquiryintopossibleRussianmeddlinginthe2016U.S.presidentialelection.

Relevance of the Current Engagement

• Amidmounting tensionswith theUnitedStates, longChina’stop single trading partner, Beijing is now especially keen toemphasizetheeconomicsideofitsrelationshipwithRussia.

• There are some early signs that relationship is benefitting asChinamovesawayfromimportingU.S.energyandagriculturalproducts.

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• AstheMiddleEastheatsupwithIran-USAissues,theenergysecurityoftheChinahangsontheRussiansupport.

• AclearfocusongeopoliticsinChina-Russiarelation.

• MoscowandBeijing,hostilerivalsoftheColdWarera,haveforawhilebeenadoptingcommonpositionsat theUNSecurityCounciloncriticalinternationalissues.

• ChinesecooperationwouldmoreoverprovecriticalforRussia’selaborate plans to exploit theNorthern Sea Route along theArcticasanalternativetransportationhub.

• Equally, President Donald Trump’s “America first” policy iscompellingpotentialrivalstomakecommoncause.

• Russiaproposedmassiveinvestmentsininfrastructure,includingupgradingthetrans-SiberianrailwaytobetterlinkhiscountrytothePacific.

Russia-China Relations in New ways

• RussianPresidentPutinandhisChinesecounterpartXiJinpingmadeitclearthatthetensionswiththeWesthadonlydrawnthemcloser.

• Amid the tensions, both leaders emphasised that bilateralrelationswereatahistorichigh,markedbyincreaseddiplomaticandstrategiccooperation.

• Notably,ChinaparticipatedinRussianmilitaryexercisesonitseasternborderrecently,markingawatershed.

• Also,Moscow andBeijing, hostile rivals of theColdWar era,have forawhilebeenadoptingcommonpositionsat theUNSecurityCounciloncriticalinternationalissues.

• Bilateralrelationsarealsoguidedbypragmatism.

• RussiaappearsrealisticaboutthegrowingChineseeconomicinfluenceinCentralAsia.

• This is primarily driven by China’s massive infrastructureinvestmentsundertheBeltandRoadInitiative.

• ForRussia,Chinesecooperationwouldalsoprovecriticalforits

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planstoexploittheNorthernSeaRoutealongtheArcticasanalternativetransportationhub.

• Besides,internationalsanctionshavenotbeenveryeffectiveinisolatingRussia.

• Europeanstates,notablyGermany,recognisetheimportanceofengagingwithRussiatocontainMr.Putin’sexpansionistaims.

• Equally, President Donald Trump’s “America first” policy iscompellingpotentialrivalstomakecommoncause.

Role of India in this Pivot

• TheRussia-China-IndiacurrentlyhasengagementsatSCOandBRICS.

• Internationalpoliticsischangingsofastthatitrequiresadegreeofhumaningenuitytograpplewithgeopoliticaldynamicsonacontinuousandconcurrentbasis,andregionalandsub-regionalgroupingsarerequiredtore-positionandaddressthemselvestoemergingrealitiesthoughtfullyandimaginatively.

• TheIndia-China-Russiatrilateralisstillatanascentstage.

• China and India had reservations at being identified withthe grouping, as their relationship with the USA was quitecomfortable.

• Theconvergenceofeconomic interestsandtheimperativeofmutualcooperation,however,providedthegluetoputupthenomenclatureinaproperperspective.

• India,RussiaandChina,ascountrieswithgrowinginternationalinfluence,canmakesubstantivecontributionstoglobalpeace,securityandstability.

• Thethreecountriesupholdtheconceptofamulti-polarworldand frequently takesimilar standsatmultilateralbodies, theycouldutilisethesynergytopromotetheirdomesticeconomicdevelopment.

• Chinahasbeenarticulating theview that the threecountriescould joinhands inseveralfields, includingtrade,energy,andscience and technology to broaden strategic ties with each

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other.

Way forward

• Intheincreasingvolatileglobalenergymarket,theStPetersburgeconomicformatisanopportunityforIndiatoleverageitsbestinterest.

• Widen scopeof their economicpartnership in the sectorsofenergy,Arcticregion,transferoftechnology,jointprojectsunderMakeinIndiainitiativeandmanpower.

• RussiaisanageoldfriendofIndia;hencethevitalrelationswithRussiaforenergy,geopolitical,economicandsecurityfrontsareimportanttobecontinuedinahealthyform.

• IndiacanalsobenefitfromSBEF,Russiantransferoftechnologyincluding in railway sector.Defence tieswasdiscussed in thecontextofMakeinIndiainitiativeandthetwoleadersreferredtoAK-203riflesfactoryinAmethiasJointVenture.

• Pharmaceuticals have been one of the traditional industrieswhere IndiaandRussiahavedevelopedstrong ties.But IndiaandRussiashouldchangethemodelofcooperation.

• Russia is interested in developing cooperation in thetransportationsector,includingRailways.

• Currently,severalRussia-basedITcompaniesandventurefundsareexploringinvestmentopportunitiesinIndia.

#Practice Question

1. InwhatwaystheongoingRussia–ChinarelationsaffectthenationalinterestofIndia?HowshoulIndiarespondtothissituation?(250words)

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neeD for a leGal fraMeWorK for artificial intelliGence in inDia23

GS3: Science and Technology- developments and their applications and effects in everyday life.

What is the Issue?

• Artificial Intelligence-/AI-driven tech will become counterproductiveifalegalframeworkisnotdevisedtoregulateit.

BACKGROUND

• Tomakeitsimple–ArtificialIntelligenceisintelligenceexhibitedbymachines.

• It isabranchofcomputer sciencewhichdealswithcreatingcomputersormachinesasintelligentashumanbeings.

• Thetermwascoinedin1956byJohnMcCarthyattheDartmouthconference,MassachusettsInstituteofTechnology.

• It is a simulation of human intelligence processes such aslearning(theacquisitionofinformationandrulesforusingtheinformation),reasoning(usingtherulestoreachapproximateordefiniteconclusions).

• Further it supports self-correction by machines, especiallycomputersystems.

• Nowadaysithasbecomeanumbrellatermwhichencompasseseverythingfromroboticprocessautomationtoactualrobotics.

• Recentlyithasbecomewidelypopularandgainedprominenceduetoitsmultifacetedapplicationrangingfromhealthcaretomilitarydevices.

• China and U.K. estimate that 26% and 10% of their GDPsrespectively in2030willbe sourced fromAIrelatedactivitiesandbusinesses.

• There has been tremendous activity concerning AI policypositionsandthedevelopmentofanAIecosystemindifferent

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countriesoverthelast18to24months.

• Infrastructural supply side interventions have been plannedby various countries for creating a larger ecosystem of AIdevelopment.

• Notjustnationalgovernments,butevenlocalcitygovernmentshave become increasingly aware about the importance andpotentialofAIandhavecommittedpublicinvestments.

DISCUSSION

Recent developments in AI

• Recently,theKeralapoliceinductedarobotforpolicework.

• Aroundthesametime,Chennaigot itssecondrobot-themedrestaurant.

• Here, robots not only serve aswaiters but also interactwithcustomersinEnglishandTamil.

• In Ahmedabad, a cardiologist performed theworld’s first in-humanteleroboticcoronaryinterventiononapatientnearly32kmaway.

• AlltheseexamplessymbolisethearrivalofArtificialIntelligence(AI)ineverydaylivesofhumanbeings.

Global Efforts to Regulate AI

• Tillrecentlytherehasbeeninterestacrosstheworldtodevelopalawonsmarttechnologies.

• IntheU.S.,discussionsarebeingtakenupaboutregulationofAI.

• Germanyhascomeupwithethicalrulesforautonomousvehicles.

• It stipulates that human life should always have priority overpropertyoranimallife.

• China,JapanandKoreaarefollowingGermanyindevelopingalawonself-drivencars.

• Indiaisyettomakeacomprehensivepolicyandregulationofsuchpathbreakingtechnologies.CurrentlyITactgovernsthe

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AItoo.

Advantages of AI

• Noleisuretimerequired

• Lower error rate compared to humans. Better precision andaccuracy.Eg:Roboticradiosurgery

• Betterspeed

• Notaffectedbysurroundingenvironment

• Replacehumansinrepetitive,tedioustasks

• Betteruserexperiencethroughpredictivetechnologye.g.Helpinpredictingwhatauserwilltype,ask,search,anddo.Caneasilyactasassistantsandrecommendactions.

• Interactwithhumans forentertainmentora task.E.g.Sophiarobot

• Logical–devoidofemotions.Canmakerationaldecisionswithlessornomistakes.

Disadvantages of AI

• Buildingtrust:AIisallrelatedtoscienceandalgorithms,whichliesonthetechnicalside.PeoplewhoarecompletelyunawareofthesealgorithmsandtechnologythatliesbehindtheworkingofArtificialintelligencefinditdifficulttounderstanditsfunctioning.

• Thechallengehereistheshortageofdatascienceskillswithinhumanstogetmaximumoutputfromartificialintelligence.

• Anotherchallengeofartificialintelligenceisthatnotallbusinessownersormanagersarewillingtoinvestinit.

• No technology or human is perfect. In case of software orhardware crashes, it is difficult toput a fingeronwhatwentwrong.Ontheotherhand,tasksperformedbyhumanscanbetraced.

• EversinceAImadeitswayintoourlives,wehaveanotionthatall tasks, minute or a gigantic, can be managed by artificialintelligence.However,thiscanbetruetoacertainextent.ButnotallthetaskscanbeundertakenbyAI.

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• AIcouldhaveseriousissueswiththeexpectationsofthepeoplearound.People,ingeneral,don’thaveadetailedunderstandingofhowAIworksandhencetheyhaveextremelyhighexpectations;someofwhicharenotevenpossible.

• Itmayleadtomoraldegradationinsocietyduetodecreasedhumantohumaninteractions.

Challenges India’s Artificial Intelligence Development is facing

• Lackofenablingdataecosystems

• LowintensityofAIresearch

• InadequateavailabilityofAIexpertise,manpowerandskillingopportunities

• HighresourcecostandlowawarenessforadoptingAIinbusinessprocesses

• Unclearprivacy,securityandethicalregulations

• UnattractiveIntellectualPropertyregimetoincentiviseresearchandadoptionofAI.

India’s need in AI

• Trafficaccidentsleadtoabout400deathsadayinIndia,90%ofwhicharecausedbypreventablehumanerrors.

• AutonomousvehiclesthatrelyonAIcanreducethissignificantly,throughsmartwarningsandpreventiveanddefensivetechniques.

• Patientsdyingduetonon-availabilityofspecialiseddoctorscanbepreventedwithAIreducingthedistancebetweenpatientsanddoctors.

• AI has several positive applications, as seen in the aboveexamples.

• AIsystemshavethecapabilitytolearnfromexperienceandtoperformautonomouslyforhumans.

• ThisalsomakesAIthemostdisruptiveandself-transformativetechnologyofthe21stcentury.

• So,ifAIisnotregulatedproperly,itisboundtohaveunmanageable

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implications.

• E.g.theconsequenceifelectricitysupplysuddenlystopswhilearobotisperformingasurgeryandaccesstoadoctorislost

• ThesequestionshavealreadyconfrontedcourtsintheU.S.andGermany.

• Allcountries,includingIndia,needtobelegallypreparedtofacesuchkindofdisruptivetechnology.

The challenges Involved

• PredictingandanalysinglegalissuesinregardswithAIuseandtheirsolutionsarenotthatsimple.

• E.g. an AI-based driverless car getting into an accident thatcausesharmtohumansordamagesproperty

• Insuchcases,criminal lawmayfacedrasticchallengesasthepartytobeheldliableisdisputable.

• InIndia,NITIAayogreleasedapolicypaper,‘NationalStrategyforArtificialIntelligence’,inJune2018.

• ThepaperconsideredtheimportanceofAIindifferentsectors.

• TheBudget2019alsoproposedtolaunchanationalprogrammeonAI.

• But notably, all these developments are taking place on thetechnologicalfront.

• NocomprehensivelegislationtoregulatethisgrowingindustryhasbeenformulatedinIndiatilldate.

Way forward

• ThefirstneedistohavealegaldefinitionofAIinplace.

• ItisessentialtoestablishthelegalpersonalityofAIwhichmeansAIwillhaveabundleofrightsandobligations,inthecontextofIndia’scriminallawjurisprudence.

• SinceAI isconsideredtobeinanimate,a liabilityschemethatholds theproducerormanufacturerof theproduct liable forharmmustbeconsidered.

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• Moreover,sinceprivacyisafundamentalright,certainrulestoregulatetheusageofdatapossessedbyanAIentityshouldbeframed.

• ThisshouldbeapartofthePersonalDataProtectionBill,2018.

• Incentivising creation of jobs that could constitute the newserviceindustry

• Recognitionandstandardisationofinformaltraininginstitutions

• Creationofopenplatformsforlearningandfinancialincentivesforre-skillingofemployees

• Lackof qualified faculty that poses a seriousproblem in thepresentscenariocanbeaddressedthroughinnovativeinitiativeslikecreditbearingMOOCs(MassiveOpenOnlineCourses).

• Acceptability and adoption of these decentralised teachingmechanismscanbeensuredthroughprescribedcertificationincollaborationwiththeprivatesectorandeducationalinstitutions.

• Additionalinvestmentandcollaborationwiththeprivatesectorandeducationalinstitutionsinordertomeetthemarketdemand.

#Practice Question

1. Do you think that the Artificial Intelligence (AI) is poised todisruptoursociety?CriticallyanalysethepossibledisadvantagesofArtificialIntelligenceinourdailylives.(250words)

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sebi norMs for creDit ratinG aGencies

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What is the Issue?

• SecuritiesandExchangeBoardof India(SEBI)hasreleasedanewframeworkforfinancialdisclosurebycreditratingagencies(CRAs).

BACKGROUND

• CreditRatingAgencies(CRAs)arecompaniesthatevaluatethefinancialconditionofissuersofdebtinstruments.

• CRAsassignaratingthatreflectsitsassessmentoftheissuer’sabilitytomakethedebtpayments.

• Ratingisdenotedbyasimplealphanumericsymbol.E.g.AA+,A-,etc.

• InIndia,CRAsareregulatedbySEBI(CreditRatingAgencies)Regulations,1999oftheSecuritiesandExchangeBoardofIndiaAct,1992.

• Theentitiesthatareratedbycreditratingagenciescomprisecompanies, state governments, non-profit organisations,countries, securities, special purpose entities, and localgovernmentalbodies.

• SomeofthekeyCRAsinIndiainclude-

• CreditRatingInformationServicesofIndiaLimited(CRISIL)

• ICRALimited

• CreditAnalysisandResearchlimited(CARE)

DISCUSSION

Issues Related to Credit Rating Agencies

• Ideologicalbiases:CRAsmightfavourcertainpoliticalideologiesto limitnegativepolicyandmarketsurprisesastheystriveto

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keepratingsstableoverthemediumterm.

• ApanelanalysisofStandard&Poor’s,Moody’s,andFitch’sratingactions for23OECDcountries from 1995 to2014showsthatleftexecutivesandtheelectoralvictoryofnon-incumbentleftexecutivesareassociatedwithsignificantlyhigherprobabilitiesofnegativeratingchanges.

• Conflictof interests:CRAsarefundedbytheverycompaniestheyrate.

• Lackofabilitytopredict:CRAsfollowthemarket,sothemarketsalerttheagenciesoftrouble.Thishappenspost-marketandaftersomethinghashappened.ThisisthereasonforCRAsinabilitytopredictfrequentneardefault,default,andfinancialdisasters.

• Negligence & incompetence: Methodology of CRAs hascomeunderquestion.Forexample,evenafterusingdifferentmethodologies,theresultforsovereigndebtscomesthesame.It is also alleged that, CRAs canmake sound judgement onrating,buttheydidn’tmakeanefforttodoit.

• Fore.g.Moodyacceptedthatitdidnothaveagoodmodelonwhichitcouldhaveestimatedacorrelationbetweenmortgagesbackedsecurities,sotheymadethemup.

• Politically motivated: It has also been alleged that CRAs,throughtheir ratingmechanismforces thegovt to followthepathprescribedbythem.

• Fore.g.duringtheturmoilinTunisia,S&Pissuedareportwarningof“downwardratingspressures”onneighbouringgovernmentsif they tried to calm social unrestwith “populist” tax cuts orspendingincreases.

• Further,afterCrimeaannexationratingagenciesdowngradedtheratingofRussia.

• Policymeddling: In 2003, to stoppredatory lending, stateofGeorgiabroughtalaw.OtherstatesofUSAweretofollowthesuit,untilS&Pretaliated.

• And it iswellknownthatpredatory lending isresponsibleforfinancialcrisisof2008-09.

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New Norms in this Regard

• Ratingagencieshavetoclearlystatethe“probabilityofdefault”oftheinstrumentstheyrateforthebenefitofinvestors.

• Probabilityofdefaultdescribesthelikelihoodofadefaultoveraparticularperiod.

• Itprovidesthelikelihoodthataborrowerwillbeunabletomeetitsdebtobligations.

• SEBIwillprepareandsharestandardisedanduniformprobabilityofdefaultbenchmarks.

• Thiswillbefixedforeachratingcategoryforone-year,two-yearandthree-yearcumulativedefaultrates-bothfortheshortrunandlongrun.

• Probabilitywillbebasedona10-yearmarginaldefaultrateandtheeconomiccycle.

• The agencies will also have to publish information on theirperformance intheratingofdebt instruments, incomparisonwithabenchmarkcreatedinconsultationwithSEBI.

• Thiswillhelpinvestorstobetterjudgetheperformanceofcreditratingagencies.

• SEBIalsointroduceddisclosureoffactorstowhichtheratingissensitive.

• RatingagencieswillhaveaspecificsectiononratingsensitivitiesineachSEBI’spressrelease.

• Thiswould explain thebroad level of operating andfinancialperformancelevelsthatcouldtriggeraratingchange-upwardanddownward.

• Thisiscriticalfortheend-userstounderstandthefactorsthatwouldhavethepotentialtoimpactthecreditworthinessoftheentity.

• Besides, SEBI expects rating agencies to make meaningfuldisclosuresonclient’sliquiditypositionusingsimpleterms.

• Thismay includetermssuchassuperiororstrong,adequate,

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stretchedorpoor.

• This shouldalsocomewithappropriateexplanations, tohelptheendusersunderstandthembetterandavoidanyambiguity.

Issues the Credit Agencies

• The credibilityof rating agencies hasbeeneroding since theglobalfinancialcrisisin2008.

• Thisisprimarilybecauseoftheconflictofinterestarisingfromissuer-paysmodel.

• Under this, the ratings agency is paid by the issuer of theinstrumentthatitrates.

• Soagenciesare found tobemore loyal tocompanieswhoseinstruments they rate rather than to investors who providepreciouscapital.

• Ineffect,agenciesfail todowngradetroubledfirmsuntil theyareonthevergeofbankruptcy.

• The defaults at Infrastructure Leasing and Financial Services(IL&FS)in2018thatledtoaliquiditycrisisamongnon-banklendersinIndiahasbroughtthefocusbacktoCRAs.

• CRAsasSEBI-registered intermediaryaresupposedtobeanalertsystemofaninstrumentbeforetheactualdefault.

• But after failing to detect early signs of the crisis, credibilityofCRAsasaninstitutionandtheirutilityundertheregulatorysystemwerequestioned.

• Giventheimpactofthisoverthelargereconomy,SEBIaimedattighteningthedisclosureguideline.

• This is believed to enhance the quality of informationmadeavailabletoinvestorsbytheratingagencies.

• Overall,SEBI’sattemptseemstobetoalignratingsmethodologieswithglobalbestpractices.

• Butitisnotclearhowthenewframeworkwilleffectivelyresolvetheconflictofinterestissuethatforlongdeterioratestheratingindustry.

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National Credit Rating in India

• No uniformity among rating companies in India: An averageinvestor in India isnotabletounderstandthedifferentcreditratingsprevailinginIndiaasthereisnouniformityamongthecreditratingagencies.

• NostandardizationinratingandnostandardizedfeestructureforratingagenciesinIndiaisoneoftheotherissues.

Need for Credit Rating Agencies

• Fromthe80sonwards,as thefinancialsystembecamemorederegulated,companiesstartedborrowingmoreandmorefromtheglobaliseddebtmarkets,andsotheopinionofthecreditratingsagenciesbecamemoreandmorerelevant.

• Reduceinformationasymmetry:SinceCRAsgetaccesstothemanagement of the company, and confidential informationaboutitsworking,theycangiveaninformedopinionabouttheabilityofaninstrumenttomeetitsobligations.

• RAsprovidetangiblebenefitstofinancialmarketregulatorsbyreducingthecostsofregulation.

• Some financial regulators mandate that certain instrumentsmustberatedmandatorilybeforetheyareissued.

• Itcompelsdevelopingcountries topursuemoreprudentandsensiblemonetaryandfiscalpolicies.

Need for CRAs Regulation

• Ratingshopping: Ithasoftenbeenseenthatboth issuerandinvestorareinvolvedinratingshopping.

• OligopolisticTendencies:Around95%ofmarketiscontrolledbyonly3CRAsVIZ.S&P,MOODY’SandFITCH.Furthertheyuseexpansionistmarketing.

• HegemonicControl:AsthebigthreeCRAsarelocatedinNorthAmerica,AmericaexertsagreatcontrolonthefunctioningofCRAs.

• CRAshavegreatcontrolontheworldeconomyastheirratings

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canresultintheflightofcapitalfromanygivencountry.

• CRAsarenotaccountabletoanycountryandmoreovertheirfunctioningisnottransparent.

Way forward

• Rotationofcreditratingagencies:Underthecurrentframework,thereisnoprovisionfortherotationofcreditratingagencies.

• RegulatorsinIndiamayconsiderotheroptionsaswell,suchas‘investorpaysmodel’or‘regulatorpaysmodel’afterweighingtherelevantprosandcons.

• Forresolvingconflictofinterestdisclosuresbeingmadebycreditratingagenciesshouldalsoincludeimportantdeterminantssuchas:Extentofpromotersupport,LinkageswithsubsidiariesandLiquiditypositionformeetingnear-termpaymentobligations.

• With the help of technology, open source models, such asCredit Risk Initiative ofNational University of SingaporeRiskManagementInstitute,withfullytransparentinputsandoutputsshouldbecreatedandpromoted.

• Legalliabilityofcreditratingagenciesshouldbeincreased.

• Useofcreditratingsinregulationsthatsetcapitalrequirementsand restrictassetholdings forfinancial institutions shouldberemovedorreplaced

#Practice Question

1. “Strict enforcementmaywork better than higher disclosuresin disciplining rating agencies”. Critically examine the shortcomingsinthefunctioningofthecreditratingagenciesinIndia.(200words)

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aGricultural creDit in inDia anD issues arounD

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GS3: agricultural produce and issues and related constraints

What is the Issue?

• Recently,thereisanintensediscussiononthestrategiesneededforaddressingfarmerdistressinIndia.Amongothers,assuredandgreateraccesstoinstitutionalcredithasbeenproposedasawayforward.

BACKGROUND

• Thepoliticiansbelievethattheremovalofcreditconstraintsisnecessaryto improve farmerwelfareandsupportagriculturalgrowth.

• But, the academic studies state that in India, the correlationbetweentheinstitutionalagriculturecreditandtheagriculturalgrowthisweak.

• And no enough attention is given to a key policy question- Whether agriculture credit of such size contributescommensuratelytoagriculturalgrowth.

Credit Intensity

• Reasontomeasureit-Toassesstheproductivityofinstitutionalcredittotheagriculturesector.

• CreditintensityofAgriculturesector=Agriculturalcredit/

• ThereisastrikingincreaseintheratioofagriculturalcredittoagriculturalGVAsince2005-06.

• Thisrevealsthattheagriculturalcreditintensityhasincreasedtremendouslyovertheyears.

• Calculatingagricultural credit implies that ithasbecome lessefficientindeliveringagriculturalgrowth.

DISCUSSION

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Consequences of Rural Indebtedness

• Ruralindebtednessisalsolikelytohavesomeundesirablesocialconsequences.Duetoever-growingdebtthereemergesintheruraleconomyofIndiaaclassoflandlesslabourersandtenants.

• Consequently independentorself-sufficientfarmersgraduallylosetheiridentity.

• Thelandlessworkershavenothingtoofferassecurityinordertoobtainloansfrommoneylenders,excepttheirlabourpower.

• theacquisitionof landby the tradersandmoneylendersandtheconsequentdeprivationofthepoorfarmersoftheirmeagerlandedpropertywastherootcauseoftheNaxalitemovement.

RBI on Agricultural Credits

• RBI’sstudy:ThereisnostatisticallysignificantcausalrelationshipbetweenagriculturalgrowthandcreditcyclesinIndia.

• SeminalstudyusingState-leveldata:

• Agricultural credit plays a role in influencing thepurchaseofagriculturalinputsbyfarmers.

• ButithasaweakimpactonagriculturalGDP.

• Instead,theperformanceofagriculturalGDPisdeterminedbysectoral composition, output prices, the area under irrigationandpublicexpenditure.

• Studies suggest that there is a weak relationship betweenthe flow of institutional credit to the agriculture sector andagriculturalgrowthintheIndiancontext.

• TheabilityofcredittoinduceagriculturalGDPgrowthislimited.

• Adequateattentionshouldbegiventobuildingothercapabilitiesornon-creditgrowthingredientsrequiredtopromoteagriculturalgrowth.

• Emphasisestheneedforpropertargetingofagriculturalcredittoachievethedesiredimpactonagriculturalgrowth.

What is the Current Scenario?

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• A substantial part of subsidised agricultural loans has beendivertedfornon-agriculturalpurposes.

• Categorisationofgoldloansasfarmcreditbybanksaddstotheproblembecausesuchloansaremostlyusedforconsumptionpurposes.

• NoconcreteactionsbyRBItoensureproperuseofagriculturalcredit are not forthcoming even though it investigated thediversionoffarmloansfornon-agriculturaluses.

• AnotificationissuedbytheRBIinthisregardtopublicsectorbankshadadvisedthelattertoensurethatallfarmloansmeetcertaincriteria.

Advantages of Farm Credits

• Institutionalcreditwillleadtotheincreaseincroppingintensity,irrigatedareaandparticularlylabourintensivehighyieldveritiesofcrops.

• Previouseffortstoinfusefarmcreditsshowapositiveproductionoutputintheagriculturaleconomy.

• Increasedagriculturalactivitiesledtotheincreasedincomefortheagriculturelaboursnotnecessarilytothefarmers.

• Italsohelpstoavoidthelocalmoneylendersandtherebyendthedebttrap.

Disadvantages of Farm Credit

• Itneeds tobe recognisedthatcreditschemes foragriculturearenotscientificallydesigned.

• Further, as institutional lenderswithdraw from thearea, afteraloanwaiver,borrowersarepushedtohigh-costunorganisedchannels,likemoneylenders.

• Also,giventhelife-cycleandshelflifeofcrops,intheabsenceof warehouses and agro-processing units, price and marketinsuranceiscompletelyabsent.

Farm loan waiver pros and cons

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• States’debt-to-GSDPratiowillworsenbyaverage4percentagepointsifallstateswaiveoff50%offarmdebt.

• Farmloanwaiverswillincreasestates’interestpayments.

• NPAs(non-performingassets)inagriculturerosequicklyafterthelarge-scaledebtwaiverin2008.

• Suchwaiversareunlikelytohelpthecauseofeitherdistressedfarmersortroubledbanksoverthelongrun.

• And theymaywell impair the quality of public spending bystates,asthecentralbankfears.

Non - credit Growth Ingredients or Capabilities:

• Productivityincreases,

• expansionofinfrastructure,

• higherpublicexpenditureonagricultureandalliedservices,

• effectiveextensionservices,

• soundinstitutions,

• exportcompetitiveness.

• GrossDomesticProduct(GDP):

• GrossDomesticProduct (GDP) is abroadmeasurementofanation’soveralleconomicactivity.

• Itisthemonetaryvalueofallthefinishedgoodsandservicesproducedwithinacountry’sbordersinaspecifictimeperiod.

• Itiscalculatedwithinadomesticterritorywhichinlaymantermsmaymeanpoliticalfrontiersofacountry.

• It includes all private and public consumption, governmentoutlays, investments, additions to private inventories, paid-inconstructioncostsandtheforeignbalanceoftrade.

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Way forward

Ensure crop insurance penetration across the country and extend reach of minimum support price, which has, for too long, been dedicated to few crops and in a narrow geographical area.

• Theagro-processingindustryandwarehousingneedstoexpandsothatagriculturalproducecanbestoredwhenpricesplunge.

• Creditproducts foragricultureneed tobe tailor-madebasedoncroppingandraincycle,specifictoaparticularregion.Theregionalofficesofcommercialbanksshouldcontributeinthisexercise.

• The period of crop loan should be extendable to four years,giventhat,onaverage,everysecondor thirdyear thespatialdistributionofrainpatterniserraticinIndia.

• Monitoringofagriculturalcreditutilisationatthegroundlevelistheneedofthetime.

• TheRBIandcommercialbanksareawareofthegroundreality.

• Actions shouldbe taken to ensureproper use of agriculturalcreditbyensuringthattheloanisusedforthestatedpurpose.

• PublicSectorBanks(PSBs)toensurethatallfarmloansmeetcertaincriteriaasperRBI’snotificationtoPSBs

• Limitingthedisbursementoffarmloansonlytoanagriculturist,

• Ensuringthattheloanisusedforthestatedpurpose,

• Verifying that disbursal and recovery of farm loans followseasonalitypattern.

• To a larger extent, these tasks could be carried out usingtechnologysuchasanalyticsoftware,which ismadepossibletodayasallmajorbanksinIndiafollowtheCoreBankingSolutionsystem.

• Since the problem of rural indebtedness has two majordimensions,tosolvetheproblemwehavetoadoptatwo-foldstrategy.

• Sincethemagnitudeofdebtisquitehigh,stepsmaybetaken

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to cancel old debts. There is a strong case for reduction ofancestraldebtandevenfortheirliquidation.

#Practice Question

1. Thereisagrowingdemandtotreatfarmloansinasimilarwayas loans to industry.Doyouthink thatsuchanapproachwillhelp to solveagricultural credit issuesandfinancial stressonBanks?(200words)

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inDia as an innovation econoMy26

GS3: Indian Economy and issues around it

What is the Issue?

• The gravity of business growth is shifting from capital tocreativity,andinthis,themarketbelongstothemostvigorousinnovator.

• In this context, here is an assessment on the challenges andprioritiesforthebusinesscommunityintheinnovationeconomy.

BACKGROUND

• EversincetheintroductionoftheLPGreforminIndia,theneedforaninnovationbasedeconomyisstartedtofelt.

• Modern industrial economies are based on the scientific andtechnologicalinnovationsinthe21stcentury.

• HenceIndiaisalsoaimtomakeitasoneoftheleadinginnovationeconomieswithnewstartupcompanies.

• Innovation economy is based upon the idea that knowledge,entrepreneurship,innovation,technologyandcollaborationfueleconomicgrowth.

• In2016,thecountrylauncheditsflagshipinnovationprogramme,AtalInnovationMission,focusedonscalingstart-upincubationcentresandpromotinginnovationcultureamongschoolchildrenbyprovidingthemwithhands-onexperiencein3Dprinting,theinternetofthings(IOT)androbotics.

Requirements of an Innovation Economy

• Strengthen the IPR policies of the country to meet theinternationalstandards.

• SetupanenablingITinfrastructureforthesmoothfunctioningoftheinnovationandnewlydevelopingcompanies.

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• Cronyunionismhastobeavoidedtostrengthentheworkingconditions.

• Improve the ease of doing business to facilitate the start upcompanies.

• Ensure the adequate physical infrastructure and financialsupporttothenewbusinessventures.

• Digitaleconomyisagoodboostertotheinnovationeconomy.

DISCUSSION

Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme

• Tocatertotheneedsandaspirationsoftheyouth,theNationalCooperative Development Corporation (NCDC) has comeup with a youth-friendly this scheme for attracting them tocooperativebusinessventures.

• Thenewlylaunchedschemewouldencouragecooperativestoventureintonewandinnovativeareas.

• TheschemewillbelinkedtoRs1000crore‘CooperativeStart-upandInnovationFund(CSIF)’createdbytheNCDC.

• ItwouldhavemoreincentivesforcooperativesofNorthEasternregion,AspirationalDistrictsandcooperativeswithwomenorSCorSTorPwDmembers.

• Alltypesofcooperativesinoperationforatleastoneyearareeligible.

Institution’s Innovation Council (IIC)

• UnionHRDMinistry has launched the ‘Institution’s InnovationCouncil (IIC)programunder Innovationcell ofMHRD inNewDelhi.

• Aim:TofosterthecultureofInnovationinallHigherEducationInstitutions(HEIs)acrossthecountry.

• It is a significant step in institutionalizing innovation anddevelopingascientifictemperamentinthecountry.

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• More than 1000 Higher Education Institutions (HEIs) havealreadyformedIICsintheircampusesandenrolledfortheIICnetworkmanagedbyMHRD’sInnovationcell.

• Indian universities are setting up research centers through‘Institution’sInnovationCouncil(IIC)programtoimproveglobalinnovationrankinginnext2-3yearsthroughthisinitiative.

Emerging in Economy and Business

• Innovationeconomyisthatwhichislightonassetsandheavyonknowledge.

• Dataisovertakingexperienceinmakingdecisionsanddirectingstrategy.

• ML(MachineLearning),IoT(InternetofThings),andblockchainarebecomingvitalforproducinginnovations.

• Businesseswillhavetobeequippedwiththetoolsforacquiring,analyzingandapplyingdataintelligence.

• Skilling every employee to work in a highly automatedenvironmentisalsoessential.

• Theinnovationeconomytakesawaysecurityfrombusinesses.

• But itoffersunprecedentedrewards in the formof lightning-fastgrowthandgreatmarketdominance.

• In the innovationeconomy,anunconventionalandrisk-takingmindsetisthekeytobusinessleadership.

• Itisalsoessentialtobreakawayfromthebusinessmodelsthatcannotkeepupwiththemarket’sevolution.

• Amodernbusinessleadermusthaveastrategytoreinventevenasuccessfulbusiness.

• Thefirst-moveradvantage(gainedbyacompanyfrombeingthefirsttoestablishitselfinagivenmarket)isbrief.

• Thisisbecausecapitalandtechnologyarenoweasilyaccessibletoanyone.

• Soitismucheasiertoimitateandenhanceasuccessfulproduct

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intheneweconomythanitusedtobe.

• Therefore,besidesbeingquickwithinnovations,companiesalsohavetocontinuously listentotheuserandupgradeproductsfrequently.

• Themainfeatureofinnovationintheneweconomyisthedeliveryoftotalsolutiontothecustomer.

• Aggregationand intermediationarecentral to innovationanddeliveringconvenience,efficiencyandeconomytothecustomer.

• Innovation,inthiscontext,ismoreofacollaborativeventure.

• Business leaders have to persuade investors, employees,suppliers, customers and even regulators to back disruptiveinnovations.

• Regulators are increasingly playing a critical role in bringinginnovationstomarket.

• Bringingan innovationtocustomerscantakea lotofmoneyandworkhourswithoutanyguaranteesofreturns.

• Businessheadsthusneedtobedeterminedandresilient,andtheyhavetokeepbettingoncrazyideas.

• Italsorequiresthemtobeintouchwiththegroundrealitiesasinnovationisoftenabottom-upprocess.

• Maintaining direct communication with customer-facingemployeesisessentialtoensurethatmiddlemanagementdoesnotblockeitherinformationorideas.

• Leadersofconventionalbusinessesfacethechallengeofinsuringthefuturewithinnovationswhilepreservingexistingrevenues.

• Onewayofpreservingasuccessfulbusinessandreinventingitatthesametimeistosandboxinnovations.

• A parallel organisation may be set up to experiment withdisruptiveproductsandmodels.

• If the alternate venture succeeds in taking the market awayfromconventionalcompetitors,themothercompanycouldbeabsorbedinit.

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Way forward

• Innovationeconomyshouldbesupportedbytheenvironmentforinnovationandtheexecutionofinnovativeideas.

• Asupportsystemfor thenewagecompanies like incubatorsin district level is also feasible to support innovation basedeconomy.

• India’s ongoing efforts in promoting bilateral investment andcooperationintheareaofinnovationhadastrongimpact.

• Amicably settling trade and technology transfer disputesbetweendevelopedeconomiesare importantforthebuildingofastronginnovationeconomy.

• RevampinghigherandresearcheducationinIndiacanalsogiveanimpetustotheinnovationecosystem.

• Linkageofvarious innovationschemesundera singlecentralandsatelevelagenciesarehelpfultoensuretheeffectivenessofitsfunctioning.

#Practice Question

1. Innovation economy is the solution for India to achieve itseconomicgoals.Discuss(200words)

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report carD on left WinG extreMist hit states27

GS3: Role of external state and non-state actors in creating challenges to internal security.

What is the Issue?

• GovernmentactionsonNaxalhitareashaveresultedinshrinkageofviolenceinagreatgeographicalspread.

BACKGROUND

• ThetermNaxalderivesfromthenameofthevillageNaxalbariinWestBengal,wheretheNaxalitepeasantrevolttookplacein1967.

• Naxalitesareconsideredfar-leftradicalcommunists,supportiveofMaoZedong’spoliticalideology.

• Theirorigincanbetracedtothesplitin1967oftheCommunistPartyofIndia(Marxist)followingtheNaxalbaripeasantuprising,leading to the formation of the Communist Party of India(Marxist–Leninist)twoyearslater.

• Initially,themovementhaditsepicenterinWestBengal,inlateryears,itspreadintolessdevelopedareasofruralsouthernandeasternIndia,suchasChhattisgarh,Odisha,AndhraPradeshandTelanganathroughtheactivitiesofundergroundgroupsliketheCommunistPartyofIndia(Maoist).

• Some Naxalite groups have become legal organizationsparticipatinginparliamentaryelections,suchastheCommunistPartyofIndia(Marxist-Leninist)LiberationandtheCommunistPartyofIndia(Marxist-Leninist)Janashakti.

• AsofApril2018,theareaswhereNaxalitesaremostvisibleare:AndhraPradesh,Bihar,Chhattisgarh, Jharkhand,Maharashtra,OdishaandTelangana

DISCUSSION

Causes of Naxalism

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• Tribal discontent over The Forest (Conservation) Act, 1980deprivestribals,whodependonforestproducefortheirliving,fromevencuttingabark.

• Massive displacement of tribal population in the naxalism-affectedstatesduetodevelopmentprojects,miningoperationsandotherreasons.

• Gapsinthesocio-economicsystemofthecountrytosupportpeopleintheseforestedareasofEasternIndia.

• It isseenthatthereis littlefollowupaction,evenafterpolicetakesholdofaregion,administrationfailstoprovideessentialservicestothepeopleofthatregion.

• Confusionovertacklingnaxalismasasocialissueorasasecuritythreat.

• CriminalNaxalnexushasgrownovertheyearssuchascultivatingGnajaforthembyNaxalsinreturnofmoney.

• Naxals are functioningnotonly for the ideologybut also forvestedinterestoffewleadersincertainregion.

• Activesupportofexternalandinstateinsurgencygroupsandasectionofthesocialintelligentsiacalledurbannaxalnow.

Measures taken to Develop Naxal hit Areas

• TheGovernmentiscommittedforholisticdevelopmentofLWEaffectedareasatparwithotherareasofthecountry.

• Apartfromflagship/developmentalSchemesbeingimplementedbythelineMinistries/Departments,somespecificschemesarealsobeingimplementedinLWEaffectedareas.

• ActionPlan2015-TheGovernmentofIndiahasaholistic,multi-pronged strategy envisaged in Action Plan-2015 to combatLWE,whichincludedevelopmentasanimportantprong.

• Apartfromflagship/developmentalSchemesbeingimplementedbythelineMinistries/Departments,somespecificschemesarealsobeing implemented inLWEaffectedareas.Detailsareasfollows:

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• Special Central Assistance (SCA) – This scheme aims to fillcriticalgaps inpublic infrastructureandservicesofemergentnatureinthemostLWEaffecteddistricts.

• This Scheme is for 3 years i.e. from 2017-18 to 2019-20withan outlay of Rs.3000 crore. Rs.163.33 crore was released toGovernmentofBihartillnow.

• Security Related Expenditure Scheme - To assist the StatestocombatLWE, support isbeinggiven to90districtsunderSecurityRelatedExpenditure(SRE)scheme.

• GovernmentofIndiaprovidesfundsforPoliceModernizationtoalltheStates.

• Funds are also being provided under ‘Special InfrastructureScheme(SIS)’forstrengtheningtheSpecialForcesoftheStatesandStateIntelligenceBranches(SIBs)toLWEaffectedstates.

• Constructionof250FortifiedPoliceStations inLWEaffectedStatesisalsoenvisagedunderthescheme.

• Road connectivity Plans - Road Requirement Plan-I schemeenvisages construction of 5,422 km roads for LWE affectedareas,ofwhich4,809kmhavebeenconstructed,including674kminBihar.

• Road Connectivity Project for LWE affected Areas schemeenvisagesforimprovingroadconnectivityin44LWEaffecteddistrictsof10States.

• Itaimsforconstructionof5,412kmroadsincluding1050kmforBihar,ofwhich644kmhavebeencompletedasawholeinthenation.

• SkilldevelopmentandEducationInitiatives-Uniongovernmenthassanctioned7NewKendriyaVidyalayasand6newJawaharNavodayaVidyalayasinthemostLWEaffecteddistricts.

• UnderRMSA,1590new/upgradedSchoolsand349girl’shostelshavebeensanctionedinmostLWEaffecteddistricts.

• SkillDevelopmentinLWEaffecteddistrictsisbeingimplementedbytheMoSDEin47LWEaffecteddistrictsof10States.

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• The Scheme envisages construction of 01 ITI in each of 47districtsand02SkillDevelopmentCenters(SDCs)ineachof34districts

• OtherInfradevelopments-InstallationofMobileTowersintheLWEaffecteddistrictsisbeingimplementedbytheDepartmentofTelecom.

• Financial Inclusion-627newbankbranches&947ATMshavebeenopenedin30mostLWEaffectedDistrictsinlast4yearsbetween.Inaddition1759BranchPostOfficeshavebeenopenedsince2017.

Way forward

• SteadfastimplementationoftheActionPlan-2015hasresultedinconsistentdeclineinLWErelatedviolenceandconsiderableshrinkageingeographicalspread.

• In2018LWErelatedviolencewasreportedin60districts intheyear2018with10districtsaccountingfor2/3rdviolence.

• Government needs innovative solutions for locating armedgroupsinthethickforestsofthenaxalism-affectedregions.

• LocalPoliceknowsthelanguageandtopographyofaregion;itcanfightnaxalismbetterthanthearmedforces.AndhraPolicerose ‘Greyhounds’; special forces todealwithnaxalism in thestate.

• Governmentneedstoensuretwothings;securityofthepeace-loving people and the development of the naxalism-affectedregions.

• Stategovernmentsneed tounderstand thatnaxalism is theirproblemalsoandonlytheycantackle iteffectively.Theycantakehelpfromcentralgovernmentifrequired.

#Practice Question

• 1.Indiahasmadesomesuccessincontainingnaxalismbuttherootcauseshavenotbeenaddressedyet.Illustrate(200words)

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u.K. sinha coMMittee on MsMes sector28

GS3: Indian Economy and issues relating to planning, mobilization of resources

What is the Issue?

• TheRBI-appointedU.K.Sinha-ledcommittee,setuptostudytheproblemsfacedbyMSMEs,submitteditsrecommendationsrecently.

BACKGROUND

• MSMEsarethebackbornoftheIndianjobmarket.Mostoftheinformaljobsarecreatedinthelastdecadewereinthissector.

• However,variouspoliciessuchasDemonetisation,GST,sluggishglobaldemand,poorrejuvenationofMSMEsitselfhascausednegativelyonthem.

• Around63millionMSMEsinIndiacontributesignificantlytothecountry’seconomicgrowth;theyaccountfor-

» about45%ofmanufacturingoutput

» morethan40%ofexports

» over28%ofgrossdomesticproduct

» More importantly, the MSME sector employs about 111millionpeople.

» Worldwide,smallbusinessesaccountformorethan50%ofemployment.

• Theyarekeyenginesofjobcreationandeconomicgrowthindevelopingcountries.

• Besides these, the MSME sector is also a true reflection ofeconomicswherepeoplereallymatter.

• Givenitsemploymentshare,thesector’shealthiscrucialtotheeconomy’svitalityandsociety’swell-being.

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DISCUSSION

Challenges faced by MSME sector

• FiscalindisciplinecombinedwithbankcreditgoingfromRs18lakhcrorein2008toRs54lakhcrorein2014convertedIndiafromhighgrowth, low inflationeconomyto lowgrowth,highinflation economy and createdourRs 14-lakh-crore bad-loanproblem.

• MSMEsectorisfacingchallengesanddoesnotgettherequiredsupportfromtheconcernedGovernmentDepartments,Banks,Financial InstitutionsandCorporateswhichisprovingtobeahurdleinthegrowthpathoftheMSMEs.

• LimitedcapitalandknowledgeandNon-availabilityofsuitabletechnologyarefewcriticalissuesinthissector.

• Ineffectivemarketingstrategy,Constraintsonmodernization&expansionsandNon-availabilityofskilled labourataffordablecostarefewotherconcernssurroundingthesector.

• India’s formalMSMEinvolvesaregulatoryburdenof60,000+compliance items, 3,300+ annual filings, and 6,000 changeseveryyear.

• Thissubjectsthemtocorruption,grovellingandmentaltorturefrom a high-handed, poorly structured and weakly-managedcivilservice.

• The average employer in India is not a formal MSME but aninformalMSME,fewerthan2percentofour63millionMSME’sareformal.

• Due to this fact,most of theMSMEworkers are oneway orthe other connected with Agro-related business and expectbenefitsfromthegovernment.

Need for the Present Committee

• InIndia,smallbusinesseshavebeenfacingarangeofdisruptionssincethedemonetisationdecisionin2016.

• Thisdisruptivemovewasfollowedbythehastyimplementationofthegoodsandservicestaxin2017.

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• Now,thereisalsotheliquiditycrunchissuetriggeredbyaseriesofdebtdefaultsbygroupcompaniesofInfrastructureLeasingandFinancialServicesLtdin2018.

• AllthesehavemadethesmoothfunctioninganddevelopmentoftheMSMEsectorverychallenging.

• Given this, in January 2019, the RBI constituted the expertcommitteeonMSMEstoundertakeacomprehensivereviewoftheMSMEsector.

• ItwastaskedtostudytheproblemsfacedbyMSMEs,identifythecauses,andproposelong-termsolutions.

Key Recommendations

• Distressed Asset Fund - The committee has suggested aRs.5,000 crore stressed asset fund for domesticmicro, smallandmediumenterprises(MSMEs).

• The creation of a distressed asset fundwill be structured toassistunitsinclusters.

• This is intended as a relief to small businesses hurt bydemonetization,GSTandanongoingliquiditycrunch.

• ThefundwouldgointorevivingMSMEsinwhichachangeintheexternalenvironmenthasledtothembecomingnon-performingasset(NPA).

• ThefundcouldworkintandemwithRBI-mandatedrestructuringschemesorbank-ledNPArevivalsolutionsforMSMEs.

• Theonusofcreatingthisfundwouldliewiththegovernment.

• FundofFunds-Thecommitteesuggestedformingagovernment-sponsoredFundofFundsofRs.10,000crore.

• This is to support venture capital and private equity firmsinvestinginMSMEs.

• MSMEAct-Thecommitteeobservedthatsmallindustriesfaceproblemsofdelayedpayments.

• TheyhesitatetoenforcelegalprovisionsavailabletothemundertheMSMEDevelopmentAct,2006duetotheirweakbargaining

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power.

• ThecommitteethusrecommendedanamendmenttotheAct.

• Under this, it calls for allMSMEs tomandatorily upload fromtimetotimealltheirinvoicesaboveanamount(tobespecifiedbythegovernment)toaninformationutility.

• Thismechanismwillentailautomaticdisplayof thenamesofdefaultingbuyers.

• Thiswillalsoactasmoralsuasiononthemtoreleasepaymenttothesesuppliers.

• Also,manyIndianstart-upsthatareattheforefrontofinnovationaredrawntolookoverseas.

• Sothenewlawoughttoaddressthesector’sbiggestbottlenecks,includingaccesstocreditandriskcapital.

• Thiswill go a longway in prioritizingmarket facilitation andeaseofdoingbusiness.

• SIDBI-ThecommitteehasrecommendedexpandingtheroleoftheSmallIndustriesDevelopmentBankofIndia(SIDBI).

• It called for SIDBI to deepen credit markets for MSMEs inunderserveddistrictsandregions.

• Itemphasisedontheroleofprivatelenderssuchasnon-bankingfinancialcompaniesandmicrofinanceinstitutionsinthisregard.

• Further,SIDBIwassuggestedtodevelopadditionalinstrumentsfordebtandequity.

• ThiswouldhelpcrystallizenewsourcesoffundingforMSMEsandMSMElenders.

• Loan portal - New entrepreneurs may not necessarily haveinformationlikeGSTIN,income-taxreturnsandbankstatement.

• Thecommitteethussuggestedthatthe‘PSBLoansIn59Minutes.com’portalalsocatertosuchnewentrepreneurs.

• Besides, obtaining regular sanctions from the banks post in-principleapprovalhadnotbeensmoothforentrepreneurs.

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• Itwasthussuggestedtofixatimelineof7-10daysfordisposalofapplications,whichhavereceivedin-principleapproval.

• ThecommitteealsorecommendedenhancingthethresholdofloanuptoRs.5crore.

• Technology – The committee acknowledged the fact thattechnology, especially digital platforms, having becomeinevitable.

• Itthusmadeacaseforgreateradoptionoftechnology-facilitatedsolutionstomanyoftheproblemsencounteredbytheMSMEsector.

Other Suggestions Include -

• introductionofadjustedpriority sector lendingguidelines forbankstospecializeinlendingtoaspecificsector

• doublingthecollateral-freeloanlimittoRs.20lakh

• providing insurance coverage to MSME employees by thegovernment

• The committee also suggested to develop grouppolicies fordeathandaccidentcoverforMSMEentrepreneurs.

• This, it said, should be significantly higher than the covercurrentlyofferedbythePradhanMantriSurakshaBimaYojanaandPradhanMantriJeevanJyotiBimaYojana.

• Another suggestion entails expediting the integration ofinformationontheGovernmente-Marketplace(GeM)platformwiththeTradeReceivablesDiscountingSystem.

• TheobjectiveistoboostliquidityatMSMEs.

• Goingforward,thetaskisnowfortheRBIandtheCentretoactontheserecommendationstohelpactualizethesector’strueeconomicpotential.

Way forward

• It isvery importanttoempowertheSMEsectortoutilizethelimitedresources(human&economic)theyhaveinanoptimum

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manner.

• The SMEs need to be educated and informed of the latestdevelopmentstakingplacegloballyandhelpedtoacquireskillsnecessarytokeeppacewiththeglobaldevelopments.

• TocounterthechallengesfacedbytheSMEsectorandgrabtheopportunitiesinthemarket,variouskeystrategiesneedtobeadoptedtopromoteandsupporttheSMEsector.

• Thustheonlywaytocreatemillionsofjobswithdecentwagesisapolicyre-imaginationoftherights,needs,andtreatmentofformalMSMEentrepreneurs.

#Practice Question

1. DiscussthepotentialandchallengesassociatedwiththegrowthofMSMEsectorinIndia.Suggestsomemeasurestorevampthesector.(250words)

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Geography Psychology History

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editor’s messagegs1: important geophysical phenomena and changes in critical geographical features...

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