Note4Students
From UPSC perspective, the following things are important :
Prelims level: Credit Rating Agencies
Mains level: Paper 3- Issue of rating given to India by global credit rating agencies
The Economic Survey-2020-21 highlights the issue of the adverse rating given to emerging economies by global credit rating agencies. This article suggests using our flawless repayment record as the basis of argument.
Prejudice against emerging economies
- The Economic Survey for 2020-21, charged international credit rating agencies with prejudice against emerging economies such as India and China.
- The Survey has used economic size as an argument.
- The economy that is the world’s fifth-largest has predominantly been rated AAA, S&P’s top rating.
- By contrast, India, which displaced the UK in 2019 as the world’s fifth-largest, has been rated BBB-, the lowest investment grade.
- The Survey points out that since 1994, only twice has the credit rating (as assigned by S&P and Moody’s) of the fifth-largest economy in US dollar terms been poor.
- This was when China and India rose to that rank, in 2005 and 2019 respectively.
Issues with Credit Rating
- Rating agencies rarely get credit quality right and they have been found to be well behind the curve in almost every default crisis.
- The behavior of these agencies has been pro-cyclical, which is often seen to aggravate crises and fuel bubbles.
- They are too lenient when the times are good, and too harsh when economic conditions worsen, making booms and busts that much more dramatic.
What should be the basis of India’s argument
- Unless the country has the privilege of printing the world’s reserve currency, as the US has, there is nothing special that ensures a large economy will always repay what it owes.
- India’s argument should revolve around the country’s flawless repayment record.
- The last time we were on the verge of a sovereign default, in 1991, we reformed our economy.
- Today, the country has foreign exchange reserves in excess of $584 billion, while its total external debt, including that of the private sector, is a shade over $556 billion.
Consider the question “The Economic Survey of 2020-21 point to the adverse rating of India economy by the global rating agencies. What is the significance of such ratings for the economy. What should be the basis of the argument against India’s adverse rating by the agencies?”
Conclusion
Despite the above-mentioned factors, we still find that Indian borrowers must pay higher rates of interest overseas than they would have to with a better rating. Global rating agencies need to overhaul their methodology to better reflect reality.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PFMS
Mains level: Paper 2- Role of PFMS in improving governance
The article highlights the role played by the Public Financial Management System (PFMS) in promoting the good governance.
About PFMS
- With the objective of bringing in transformational accountability and transparency and to further promote good governance, the Indian government envisioned Public Financial Management System (PFMS).
- PFMS has evolved as an end to end solution for Processing, Monitoring, and reconciling financial flows of Central Govt.
- Today, PFMS has empowered governance to become more responsive, accountable, and transparent.
Mandate of PFMS
- Through Cabinet decision, PFMS has been mandated the following:
- It acts as a financial management platform for all plan schemes and allows for efficient and effective tracking of fund flow to the lowest level of implementation for the planning scheme of the Government.
- It is mandated to provide information on fund utilization leading to better monitoring, review, and decision support system to enhance public accountability in the implementation of plan schemes.
- To result in effectiveness and economy in Public Finance Management through better cash management for Government transparency in public expenditure and real-time information on resource availability and utilization across schemes.
Achievements of PFMS
- PFMS can be credited to the transformation of Direct beneficiary transfers space in financial governance in India.
- An estimated 102 crore DBT transactions were done through PFMS in FY 19-20 amounting to about ₹2.67 lakh crore.
- Through efficient use of technology, PFMS is estimated to have saved about ₹1 lakh crore in direct beneficiary transfers.
4 Factors that could determine the successful evolution of PFMS in future
- Agility in terms of Onboarding/Integrating all Govt. accounts: Only after ensuring significant coverage, the true execution of the concept will take place.
- Effective data management capabilities: PFMS will have to add significant data management capabilities in order to ensure better monitoring/review to deliver on the idea of a decision support system for effective cash management or management of idle float in the system.
- Constantly upgrading: Adaption to rapid changes in technology is another key area that would call for a considerable amount of focus both in terms of gradation and monitoring.
- Collaboration with the banking system: Lastly, one of the most critical factors for the successful execution of PFMS is its integration with the banking systems.
- The Banks and PFMS will have to actively partner to ensure faster coverage/integration of all the Govt. entities.
Consider the question “Governance in India has long been marred with structural challenges like transparency, lack of accountability and sustainable and inclusive growth. In light of this, discuss the role played by the Public Financial Management System in tackling these challenges.”
Conclusion
The PFMS has revolutionized the ways public finances are managed in the country. With constant improvement and increasing coverage, the scope of PFMS is ever-increasing. Going ahead, PFMS will not only be seen as a tool for managing planned expenditure but will also add new meanings to Direct Beneficiary transfers, data-driven cash management, and e-Governance in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Terms used in Economic Survey
Mains level: Paper 3- Overview of the Economic Survey 2020-21
The pandemic has been leaving its imprint various aspects of our lives and Economic Survey is no different. This year’s Economic Survey focuses on the recovery path of the economy disrupted by the pandemic. The article takes an overview of the survey and also mentions the missing areas.
Focus on a recovery path
- The Economic Survey analyses the broad trends at the macro level and the profiling of the initiatives across various economic activities.
- This year, the Economic Survey focuses on the recovery path after initial derailment and the losses suffered by the Indian economy due to the pandemic.
- The recovery is expected to follow a V-shaped path.
- The Survey advocates countercyclical fiscal policies based on the premise that growth leads to debt sustainability.
- The Survey brings together various relevant factors that have both a short and long-term impact on the economy and the budget.
- This year’s Survey focuses on enhanced public healthcare spending and demonstrates how effective it has been in slashing out-of-pocket expenditures in the recent past.
- It also shows the brilliant performance under the Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the improved outcomes in states that have implemented the programme.
- With focus on basic needs, the Survey has brought back national attention on the fundamental developmental paradigm.
- The idea of analysing inequalities in times of recovery is a reassuring premise to move on with.
Comparison with past Economic Surveys
- If we consider the last two Economic Surveys, the introduction of new concepts and approaches has been quite evident.
- In the Survey for 2018-19, the idea of “nudge” helped provide recognition of the importance of social behaviour change for any policy to succeed.
- This led to the adoption of transformative approach in the Swachh Bharat Mission and Beti Bachao Beti Padhao initiative that integrated behavioural insights.
- Another powerful idea has been using technology to run and monitor welfare schemes.
- The Economic Survey 2019-20 talked overwhelmingly about the importance of wealth creation, entrepreneurship, and financial markets in the economic development.
What the Survey misses
- The Survey should have focussed on a new narrative for trade.
- Apart from explaining the missing value chains and integration with South and Southeast Asia, the survey should have analysed the high cost of tariffs when 38 per cent of our exports are import-dependent.
Consider the question “In the wake of economic disruption caused by the pandemic, India needs a new narrative for trade. However, India faces the challenge of missing value chains and lack of integration with South and Southeast Asia. In light of this, suggest the policies India should adopt as new narrative for trade.“
Conclusion
Besides trade, FDI inflows and the accumulation of foreign exchange reserves has been remarkable this year. It is expected that India will emerge as an important link in the global value chain sector which has been visibly disrupted by the pandemic
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Red Fort
Mains level: Red Fort and its symbolic significance for the nation
Newsfeeds on Republic Day were dominated by scenes of protests on the ramparts of the Red Fort.
Mob stormed and vandalized the national flag and the mast of Red Fort in guise of peaceful farmers protest! What did this act signify?
To unravel some of these strands of meaning, one must go back in history, to a time centuries before the Red Fort was even constructed.
The History of Capital
- Before the 13th century, Delhi — or ‘Dilli’ — was, politically speaking, a moderately significant town.
- It was for long the capital of the modestly sized kingdom of the Rajput Tomar dynasty.
- By the mid 12th century it was conquered by the Rajput Chauhans who, however, ruled from Ajmer.
- It was the conquest by Ghurid Turks in the late 12th century that put Delhi on the map as a centre of power.
- As the capital of the Sultanate, Delhi gradually developed an aura of power — in the popular imagination, it came to be associated with a dominant power in the subcontinent.
- Babur, having defeated Ibrahim Lodi at Panipat in 1526, headed for Delhi, which he described as “the capital of all Hindustan”, even though the Lodis had ruled from Agra for the previous two decades.
Sultanate period
- There was another important feature of the Delhi of these two centuries.
- From the 13th century, the capital had been located at a number of different sites – Mehrauli, Kilugarhi, Siri, Tughlaqabad, Jahanpanah, Firozabad, and Dinpanah.
- Now it came to be settled permanently in Shahjahanabad, with the emperor’s seat being in the Red Fort.
Seat of the Mughal power
- During the first century or so of Mughal rule, Agra was the capital for longer than Delhi.
- Still, the Mughals continued to be seen as rulers of Delhi.
- A Sanskrit inscription from 1607 refers to Akbar as “Dillishvara”, the lord of Delhi, though he had ruled from Delhi for a very short time.
- In a Persian inscription dated 1621 on the Salimgarh Bridge adjoining the Red Fort, Jahangir, who never reigned from Delhi, was described as “Shahanshah e Dehli”, the emperor of Delhi.
Construction of Red Fort
- It was only in the reign of Shah Jahan (1628-58) that the Mughal connection to Delhi was given concrete form, with the founding of the city of Shahjahanabad and the inauguration of its palace citadel, the Red Fort, in 1648.
- From that date to the end of Mughal rule in 1857, Delhi would be the formal capital of the Mughal Empire.
Fading centre
- The significance of Delhi and the Red Fort was thrown into sharp relief by political developments in the 18th century, once the Mughal Empire started on the long road to decline.
- Erstwhile Mughal provinces such as Bengal, Awadh, and Hyderabad broke away, and new forces like the Sikhs and the Marathas arose.
- Not only did the Mughal territories shrink, but the Mughal emperor also became increasingly ineffectual even within them.
A takeover by the East India Company
- The control over the emperor and of Delhi was, therefore, a prize worth fighting for.
- Safdar Jang, the Nawab of Awadh, fought a civil war in an attempt to keep his position as PM of the Mughal emperor.
- The Sikhs had their ambitions and came up to the walls of the city in 1783 before retreating.
- The Marathas met with greater success the following year when Mahadji Sindhia became the power behind the throne.
- Finally, the East India Company defeated the Maratha forces in 1803 and went on to control Delhi and the emperor for the next 54 years.
Shifting of capital
- Delhi was officially announced as the capital of British Raj by the then-Emperor George V, on December 12, 1911.
- The capital was shifted from Calcutta as Delhi was the financial and political seat of many earlier empires and was located closer to the geographical centre of India.
- The rising nationalist movement in Calcutta was also responsible for the shift.
Symbolic importance then
- In the popular imagination, the legitimate rule was associated with the Mughal emperor to the extent that when the country broke out in revolt in 1857, the mutinous soldiers made their way to Delhi, seeking his leadership.
- When the revolt in Delhi had been crushed, the British army occupied the Red Fort and the officers drank to their Queen’s health in the Diwan-e-Khas, where the Mughal emperors had held court.
- It was in this same hall that Bahadur Shah was put on trial, convicted, and exiled.
- Nearly ninety years later, in 1945-46, the memory of that trial foreshadowed another historic trial in the fort.
- The personnel of the Indian National Army were tried there, which generated an immense wave of nationalist sentiment in the run-up to Independence.
Symbol of the nation, now
- With the coming of Independence, it was necessary that the site of the Red Fort, over which the British colonial government had sought to inscribe its power and might, be symbolically reclaimed for the Indian people.
- It was for this reason, that after the first hoisting of the national flag at India Gate on August 15, 1947, the next day, the PM hoisted it on the ramparts of the Red Fort.
- This was to then become India’s lasting Independence Day tradition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Way ahead for India-China relations
External Affairs Minister S. Jaishankar has given useful insight on the future of India-China ties amid heating border tensions and has suggested the best way forward.
Statements made by EAM are major breakthrough in itself. They are the most logical and amply reflect his perfect statesmanship.
We can imbibe such statements in our answers as they hold extraordinary significance like any gospel.
Key takeaways from EAM’s speech
- 2020 was a year of exceptional stress in a relationship profoundly disturbed by the border crisis.
- China’s actions last year had not only signaled a disregard of commitments to reduce troop levels” but also “a willingness” to breach the peace and tranquillity on the border.
- For all the disagreements we had, the fact is the border areas still remained fundamentally peaceful with the last incident of a loss of life in 1975, prior to 2020.
- Until now, India is yet to receive a credible explanation for the change in China’s stance or reasons for its amassing of troops.
- Any expectation that can be brushed aside and life can carry on undisturbed despite the situation in the border is simply not realistic.
China’s contentious moves
- China did a unilateral attempt to redraw the LAC in several areas in eastern Ladakh
- China’s issuing of stapled visas to Indian citizens from Jammu and Kashmir in 2010
- Reluctance from China to deal with some of India’s military commands, Beijing had that same year refused to host the Northern Army Commander
- China’s opposition to India’s membership of the Nuclear Suppliers Group and the U.N. Security Council as a permanent member
- Blocking of U.N. listings of Pakistani terrorists, and
- China Pakistan Economic Corridor, a flagship project under China’s Belt and Road Initiative, violating India’s sovereignty
Gone is the past
- Both sides had “painstakingly” worked to normalize relations after the post-1962 war freeze and the first prime ministerial visit in 1988.
- For the border areas, he said, both had agreed a complete and practical set of understandings and agreements focused on border management, while negotiations were being conducted on the boundary dispute.
- The advancement of ties, he said, was predicated on ensuring that peace and tranquillity were not disturbed, and the LAC was both observed and respected by both sides.
- For this reason, it was explicitly agreed the two countries would refrain from massing troops on their common border, along with a detailed understanding of handling frictions that would arise.
No progress over the years
- Over the years, he said, there was no sign of progress of arriving at a common understanding of the LAC, while there was increasing construction of border infrastructure, especially in the Chinese side.
- India had made efforts to reduce the considerable infrastructure gap since 2014, including through greater budgetary commitments and border road building.
Way forward
The External Affairs Minister suggested “three mutuals” and “eight broad propositions” as a way forward for the relationship.
#Three mutuals
Mutual respect, mutual sensitivities and mutual interests are the “determining factors”.
#Major propositions
(1) Adhering to commitment
- The first proposition was that agreements already reached must be adhered to in their entirety, both in letter and in spirit.
(2) Respect for LAC
- Both sides also needed to strictly observe and respect the LAC, and any attempt to unilaterally change the status quo was completely unacceptable.
(3) Maintaining peace and tranquillity
- Peace and tranquillity in border areas was the basis for the development of the relationship in other domains. If that was disturbed, he said, the rest of the relationship would be too.
(4) Broader partnership
- The fourth proposition was that while both remain committed to a multipolar world, they should recognise that a multipolar Asia was one of its essential constituents.
(5) Reciprocity
- While each state had its interests, concerns and priorities, sensitivities to them could not be one-sided and relations were reciprocal in nature. As rising powers, neither should ignore the other’s set of aspirations.
(6) Divergences management
- While both sides had made a common cause on development and economic issues and common membership of plurilateral groups was a meeting point, there were divergences when it came to interests and aspirations.
(7) Civilizational ties
- The last proposition was that as civilizational states, India and China must always take the long view.
(8) Cooperation and competition
- Even before the events of 2020, the relationship had reflected a duality of cooperation and competition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green India Mission
Mains level: Success of afforestation measures
The central government’s afforestation scheme, Green India Mission (GIM), was able to only achieve 2.8 per cent of its plantation target, according to the Economic Survey 2021.
Try this PYQ:
Q.Consider the following statements:
- As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.
- People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Green India Mission
- GIM is one of the eight Missions outlined under India’s action plan for addressing the challenge of climate change -the National Action Plan on Climate Change (NAPCC).
- Launched in February 2014, it is aimed at protecting; restoring and enhancing India’s diminishing forest cover and responding to climate change by a combination of adaptation and mitigation measures.
- The mission has the broad objective of both increasing the forest and tree cover by 5 million ha, as well as increasing the quality of the existing forest and tree cover in 10 years.
- The Mission proposes a holistic view of greening and focuses not on carbon sequestration targets alone, but also, on multiple ecosystem services, especially, biodiversity, water, biomass etc., along with provisioning services like fuel, fodder, timber and non-timber forest produces.
- It will also increase options of forest-based livelihood of households living in the fringe of those landscapes where the Mission is implemented.
Limited success of the scheme
- As of March 2020, plantation under the scheme was undertaken only over 0.14 m ha land.
- A 2018 parliamentary committee report on GIM found that the scheme was grossly underfunded.
- The report found that the scheme had also missed its targets by 34 per cent in both 2015-16 and 2016-17 financial years.
- The committee also pointed out that the afforestation done under the mission was only aimed at increasing tree count without considering the soil and weather conditions.
- Trees like eucalyptus were planted which make environmental problems worse rather than solving it.
- Planting of unsuitable trees may cause drought and prevent biodiversity in the regions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Doomsday Clock
Mains level: Various existential threat to mankind
The hands of the ‘Doomsday Clock’, a visual depiction of how vulnerable the world is to a climate or nuclear catastrophe, remained at ‘100 seconds to midnight’ for the second consecutive year — the closest it has been to the symbolic annihilation of humanity.
Q.The ‘Doomsday Clock’ represents the hypothetical countdown to raise human consciousness against mutually assured destruction. In this light, discuss various existential threats to humanity and action taken so far.
What is the ‘Doomsday Clock’?
- The Bulletin of the Atomic Scientists, founded by Albert Einstein and students from the University of Chicago in 1945, created the ‘Doomsday Clock’.
- It is held as a symbol to represent how close the world is to a possible apocalypse.
- It is set annually by a panel of scientists, including 13 Nobel laureates, based on the threats — old and new — that the world faced in that year.
- When it was first created in 1947, the hands of the clock were placed based on the threat posed by nuclear weapons, which the scientists then perceived to be the greatest threat to humanity.
- Over the years, they have included other existential threats, such as climate change and disruptive technologies like artificial intelligence.
Significance of such clock
- The reason the scientists selected a clock is twofold — they wanted to use the imagery of an apocalypse (midnight) as well as the “contemporary idiom of a nuclear explosion” (zero countdowns) to illustrate the threats to humanity.
- The clock was originally set to seven minutes to midnight and has since moved closer or further away from the dreaded 12 o’clock position.
- The furthest it has been being 17 minutes after the end of the Cold War in 1991.
Why was the clock set at ‘100 seconds from midnight’?
- It was set at the ‘100 seconds from midnight’ position due to the prevailing climate conditions, “cyber-based disinformation”, nuclear risk and the pandemic.
- It is the closest to Doomsday we have ever been in the history of the Clock.
- We now face a true emergency – an absolutely unacceptable state of world affairs that has eliminated any margin for error or further delay.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ULBs in India
Mains level: ULB reforms
Rajasthan has become the 5thState in the country to successfully undertake Urban Local Bodies (ULB) reforms stipulated by the Department of Expenditure, Ministry of Finance and has thus become eligible for additional reform linked to borrowing.
Which are the four other States?
: They are Andhra Pradesh, Madhya Pradesh, Manipur and Telangana, who have completed ULB reforms.
Now try this PYQ:
Q.The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?
- Constitution of District Planning Committees.
- State Election Commissions to conduct all panchayat elections.
- Establishment of State Finance Commissions.
Select the correct answer using the codes given below:
(a) Only 1
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
What are the ULB reforms?
The four citizen-centric areas identified for reforms are:
- Implementation of One Nation One Ration Card System
- Ease of doing business reform
- Urban Local body/ utility reforms
- Power Sector reforms.
The set of reforms stipulated by the Department of Expenditure are:
(a) The State will notify:
- Floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions) and;
- Floor rates of user charges in respect of the provision of water supply, drainage, and sewerage which reflect current costs/past inflation.
(b) The State will put in place a system of periodic increases in floor rates of property tax/ user charges in line with price increases.
Why need such reforms?
- Reforms in ULBs and the urban utility reforms are aimed at the financial strengthening of ULBs to enable them to provide better public health and sanitation services to citizens.
- Economically rejuvenated ULBs will also be able to create good civic infrastructure.
Back2Basics: Municipal Governance in India
- Municipal or local governance refers to the third tier of governance in India, at the level of the municipality or urban local body.
- Urban Local Bodies (ULBs) are small local bodies that administer or govern a city or a town of a specified population.
- They are vested with a long list of functions delegated to them by the state governments.
- These functions broadly relate to public health, welfare, regulatory functions, public safety, public infrastructure works, and development activities.
- There are several types of Urban Local Bodies in India such as Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee, Special Purpose Agency, Township, Port Trust, Cantonment Board, etc.
Development through history
- It has existed since the year 1687, with the formation of Madras Municipal Corporation, and then Calcutta and Bombay Municipal Corporation in 1726.
- In the early part of the nineteenth century, almost all towns in India had experienced some form of municipal governance.
- In 1882 the then Viceroy of India, Lord Ripon, known as the Father of Local Self Government, passed a resolution of local self-government which lead to the democratic forms of municipal governance in India.
- In 1919, a Government of India Act incorporated the need of the resolution and the powers of democratically elected government were formulated.
- In 1935 another Government of India act brought local government under the preview of the state or provincial government and specific powers were given.
Changes after the 74th Amendment (1992)
- It was the 74th amendment to the Constitution that brought constitutional validity to municipal or local governments.
- Until amendments were made in respective state legislation on an ultra vires (beyond the authority) basis and the state governments were free to extend or control the functional sphere.
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From UPSC perspective, the following things are important :
Prelims level: Prabuddha Bharat
Mains level: Not Much
PM will address the 125th-anniversary celebrations of ‘Prabuddha Bharata’, a monthly journal of the Ramakrishna Order, started by Swami Vivekananda in 1896.
Try this PYQ:
Q.Which one of the following pairs does not form part of the six systems of Indian Philosophy?
(a) Mimamsa and Vedanta
(b) Nyaya and Vaisheshika
(c) Lokayata and Kapalika
(d) Sankhya and Yoga
Prabuddha Bharata
- The journal ‘Prabuddha Bharata’ has been an important medium for spreading the message of India’s ancient spiritual wisdom.
- It is India’s longest-running English language journal (wiki).
- Its publication was started from Chennai (erstwhile Madras), where it continued to be published for two years, after which it was published from Almora.
- Later, in April 1899, the place of publication of the Journal was shifted to Advaita Ashrama and it has been continuously published from there since then.
- Some of the greatest personalities have left their imprint on the pages of ‘Prabuddha Bharata’ through their writings on Indian culture, spirituality, philosophy, history, psychology, art, and other social issues.
- Luminaries like Netaji SC Bose, Bal Gangadhar Tilak, Sister Nivedita, Sri Aurobindo, Former President Sarvepalli Radhakrishnan, among others, have contributed to the Journal over the years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: India-Myanmar relations
Myanmar’s military staged a coup detaining de facto leader Aung San Suu Kyi and declaring it had taken control of the country for one year under a state of emergency.
Q.Despite its military coup, Myanmar is the key in linking South Asia to Southeast Asia and the eastern periphery becomes the focal point for New Delhi’s regional outreach. Analyse.
What is the news?
- The intervention came with rising tensions between the military, which ruled the country for nearly five decades, and the civilian government over allegations of fraud in November’s elections.
- The military had signaled its intentions to seize power to settle its claims of irregularities in the polls, which Suu Kyi’s party won easily.
How was the coup carried out?
- The military detained the leaders of the governing NLD party and Myanmar’s civilian leadership, including Suu Kyi and President Win Myint, along with various ministers and even the opposition.
- The military quickly seized control of the country’s infrastructure, suspending most television broadcasts and canceling all domestic and international flights, according to reports.
- Telephone and internet access was suspended in major cities.
- The stock market and commercial banks were closed, and long lines were seen outside ATMs in some places.
- In Yangon, the country’s largest city and former capital, residents ran to markets to stock up on food and other supplies.
Who is Aung San Suu Kyi?
- Suu Kyi came to power as state councilor in 2016 after the country’s first fully democratic vote in decades.
- Her ascension to leadership was seen as a critical moment in the transition of Myanmar, formerly known as Burma, to democracy from military dictatorship.
- Suu Kyi, the daughter of the country’s independence hero General Aung San, spent more than 15 years under house arrest.
- Her time in detention made her an international icon, and she was awarded the Nobel Peace Prize in 1991.
- Since her release, her reputation has been tarnished by her cooperation with the military and her deadly campaign against the Rohingya, a Muslim ethnic minority group.
India’s response to the takeover
- India is “deeply concerned” with the return to military rule, which is a repeat of events thirty years ago.
- It sees only option to engage, building on its outreach in recent years via the security and defence establishment.
- India seeks a more pragmatic approach, engaging the military while pushing for more freedoms and democracy in Myanmar.
Various issues concerning India
- One important reason for the change is that India’s security relationship with the Myanmar military.
- These days, it has become extremely close, and it would be difficult to “burn bridges” with them given their assistance in securing the North East frontiers from insurgent groups.
- Apart from strategic concerns, India has cultivated several infrastructure and development projects with Myanmar, which it sees as the “gateway to the East” and ASEAN countries.
- These include the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-modal transit transport network, as well as a plan for a Special Economic Zone at the Sittwe deep-water port.
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