April 2022
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A fatal friendship with Beijing

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BRI

Mains level: Paper 2- Debt trap diplomacy

Context

China’s intervention has proved disastrous for the economies of Myanmar, Sri Lanka and Pakistan.

China-Myanmar relations and its implications

  • Myanmar, China’s closest neighbour with a long history of cross border trade, was the first country to voluntarily turn towards Beijing, from 1988, when the State Law and Order Restoration Council (SLORC) took over the reins of government.
  • World sanctions followed, but Beijing reassured the generals of its continued support and in 1989, signed a treaty of trade and cooperation that made China the sole supporter of the illegitimate military government.
  • The strong western sanctions after 2007, made China virtually its sole trading partner.
  • The link with China became essential for the regime’s survival but did little to increase economic prosperity.
  • Wood alone accounts for about 70 per cent of Myanmar’s exports to China.
  • It’s clear that China is stripping bare Myanmar’s centuries-old teak forests.

Implications for Pakistan

  • In 2012,  Pakistan signed on to the China Pakistan Economic Corridor.
  • New Delhi and Washington imagined wrongly that the CPEC would lead to a major People’s Liberation Army-Navy (PLAN) expansion into the Indian Ocean through Gwadar, which even now is a largely disused port.
  •  As a conservative IMF estimate put it, Islamabad’s poor management of the economy and reckless borrowing has put its immediate financial needs (2022) at $51 billion.
  • Projects chosen are unviable like the Gwadar port and the Lahore Metro and attracted huge public criticism. The CPEC was put on hold and rebooted.
  • The IMF warned Islamabad of the CPEC repayment boosting the current account deficit, forcing Pakistan to cut Chinese interest payments for 10 years.
  • The CPEC has been a humbling experience for China and an economic disaster for Pakistan.

Implications for Sri Lanka

  • Against all economic surveys and advice, the Hambantota port was built, it floundered and Sri Lanka transferred the land as equity to China for 99 years.
  • From 2012 to 2016, China accounted for 30 per cent of all FDI to Sri Lanka, becoming the top source of foreign investment
  • Today China is funding 50 projects in the country, involving more than $1 billion, including the Colombo Port and the Lakvijaya thermal power plant.
  • Today, the Sri Lankan economy is in complete meltdown, with China holding the largest amount of Sri Lankan debt.
  • Private banks have run out of funds to finance imports. Its main sources of revenue, tourism and remittances, have dried up, and the government is in a crisis.

Conclusion

The recourse to availing Chinese money by Myanmar, Pakistan and Sri Lanka has led to a feeling of hubris among the leaders, inducing them to take bad economic decisions in the perception that Beijing is footing the bills.

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Cyber Security – CERTs, Policy, etc

Status of India’s National Cyber Security Strategy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Read the attached story

Recently, Chinese state-sponsored hackers targeted Indian electricity distribution centres near Ladakh.

Amid a surge in cyberattacks on India’s networks, the Centre is yet to implement the National Cyber Security Strategy which has been in the works since 2020.

Recent trends of Cyber-attacks in India

  • As per American cybersecurity firm Palo Alto Networks’ 2021 report, Maharashtra was the most targeted State in India — facing 42% of all ransomware attacks.
  • India is among the more economically profitable regions for hacker groups and hence these hackers ask Indian firms to pay a ransom, usually using cryptocurrencies, in order to regain access to the data.
  • One in four Indian organisations suffered a ransomware attack in 2021.
  • Indian organisations witnessed a 218% increase in ransomware — higher than the global average of 21%.
  • Software and services (26%), capital goods (14%) and the public sector (9%) were among the most targeted sectors.

Increase in such attacks has brought to light the urgent need for strengthening India’s cybersecurity.

What is the National Cyber Security Strategy?

Conceptualised by the Data Security Council of India (DSCI), the report focuses on 21 areas to ensure a safe, secure, trusted, resilient, and vibrant cyberspace for India.

The main sectors of focus of the report are:

  • Large scale digitisation of public services: There needs to be a focus on security in the early stages of design in all digitisation initiatives and for developing institutional capability for assessment, evaluation, certification, and rating of core devices.
  • Supply chain security: There should be robust monitoring and mapping of the supply chain of the Integrated circuits (ICT) and electronics products. Product testing and certification needs to be scaled up, and the country’s semiconductor design capabilities must be leveraged globally.
  • Critical information infrastructure protection: The supervisory control and data acquisition (SCADA) security should be integrated with enterprise security. A repository of vulnerabilities should also be maintained.
  • Digital payments: There should be mapping and modelling of devices and platform deployed, transacting entities, payment flows, interfaces and data exchange as well as threat research and sharing of threat intelligence.
  • State-level cyber security: State-level cybersecurity policies and guidelines for security architecture, operations, and governance need to be developed.

What steps does the report suggest?

To implement cybersecurity in the above-listed focus areas, the report lists the following recommendations:

  • Budgetary provisions: A minimum allocation of 0.25% of the annual budget, which can be raised up to 1% has been recommended to be set aside for cyber security.
  • Ministry-wise allocation: In terms of separate ministries and agencies, 15-20% of the IT/technology expenditure should be earmarked for cybersecurity.
  • Setting up a Fund of Funds: The report also suggests setting up a Fund of Funds for cybersecurity and to provide central funding to States to build capabilities in the same field.
  • R&D, skill-building and technology development: The report suggests investing in modernisation and digitisation of ICTs, setting up a short and long term agenda for cyber security via outcome-based programs and providing investments in deep-tech cyber security innovation.
  • National framework for certifications: Furthermore, a national framework should be devised in collaboration with institutions like the National Skill Development Corporation (NSDC) and ISEA (Information Security Education and Awareness) to provide global professional certifications in security.
  • Creating a ‘cyber security services’: The DSCI further recommends creating a ‘cyber security services’ with cadre chosen from the Indian Engineering Services.
  • Crisis management: For adequate preparation to handle crisis, the DSCI recommends holding cybersecurity drills which include real-life scenarios with their ramifications. In critical sectors, simulation exercises for cross-border scenarios must be held on an inter-country basis.
  • Cyber insurance: Cyber insurance being a yet to be researched field, must have an actuarial science to address cybersecurity risks in business and technology scenarios as well as calculate threat exposures.
  • Cyber diplomacy: Cyber diplomacy plays a huge role in shaping India’s global relations. To further better diplomacy, the government should promote brand India as a responsible player in cyber security and also create ‘cyber envoys’ for the key countries/regions.
  • Cybercrime investigation: It also suggests charting a five-year roadmap factoring possible technology transformation, setting up exclusive courts to deal with cybercrimes and remove backlog of cybercrimes by increasing centres providing opinion related to digital evidence under section 79A of the IT act.
  • Advanced forensic training: Moreover, the DSCI suggests advanced forensic training for agencies to keep up in the age of AI/ML, blockchain, IoT, cloud, automation.
  • Cooperation among agencies: Law enforcement and other agencies should partner with their counterparts abroad to seek information of service providers overseas.

Progress in its implementation

  • The Centre has formulated a draft National Cyber Security Strategy 2021 which holistically looks at addressing the issues of security of national cyberspace.
  • Without mentioning a deadline for its implementation, the Centre added that it had no plans as of yet to coordinate with other countries to develop a global legal framework on cyber terrorism.

Way forward

  • India has to contend with the importance and necessity of cyber offence as much as cyber defence.
  • As of today, India’s primary or possibly only response measures appear to be defensive.
  • India has to also invest in more offensive cyber means as a response.

 

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Black Money – Domestic and International Efforts

The Functioning of the Enforcement Directorate (ED)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Enforcement Directorate, PMLA

Mains level: Read the attached story

The Enforcement Directorate (ED) is in the news now and often.

About Enforcement Directorate (ED)

  • It goes back to May 1, 1956, when an ‘Enforcement Unit was formed in the Department of Economic Affairs.
  • It then aimed for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
  • The ED today is a multi-dimensional organisation investigating economic offences under the Prevention of Money Laundering Act (PMLA), Fugitive Economic Offenders Act, Foreign Exchange Management Act and FERA.

From where does the ED get its powers?

  • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
  • Therefore, there was a need to control and prevent the laundering of money.
  • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
  • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
  • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

At what stage does the ED step in when a crime is committed?

  • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
  • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
  • This will be done to find out if any laundering has taken place.

What differentiates the probe between the local police and officers of the ED?

Case study:

  • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
  • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
  • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
  • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
  • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
  • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

What are the other roles and functions of the ED?

  • The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
  • On the basis of that, the authorities will decide if arrest is needed as per Section 19 (power of arrest).
  • Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning.
  • It is not necessary to summon the person first and then start with the search and seizure.
  • If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
  • If no one is arrested and only the property is attached, then the prosecution complaint along with attachment order is to be submitted before the adjudicating authority within 60 days.

Can the ED investigate cases of money laundering retrospectively?

  • If an ill-gotten property is acquired before the year 2005 (when the law was brought in) and disposed off, then there is no case under PMLA.
  • But if proceeds of the crime were possessed before 2005, kept in storage, and used after 2005 by buying properties, the colour of the money is still black and the person is liable to be prosecuted under PMLA.
  • Under Section 3 of PMLA, a person shall be guilty of money-laundering, if such person is found to have directly or indirectly attempted to indulge or knowingly assist a party involved in one or more of the following activities:
  • Concealment; possession; acquisition; use; or projecting as untainted property; or claiming as untainted property in any manner etc.

 

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Judicial Pendency

Retirement spree in SC may affect efforts to scale down pendency

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Resolving judicial pendency

The retirements in the topmost rung of the judiciary in 2022 will encompass changes in the powerful Supreme Court Collegium and see two new Chief Justices in a span of months.

Why in news?

  • The retirements come at a time when the court is in the process of steadying itself after particularly brutal waves of the pandemic.

Pendency in Supreme Court

  • The Supreme Court’s statistics show that 70,362 cases are pending with it as on April 1, 2022.
  • Over 19% of them are not ready to be placed before a Bench for judicial hearing as they have not completed the required preliminaries.
  • While 52,110 are admission matters, 18,522 are regular hearing cases.
  • The number of Constitution Bench cases (both main and connected matters) totals 422.

General scenario: Pendency of Cases

  • India’s legal system has the largest backlog of pending cases in the world – as many as 30 million pending cases.
  • This number is continuously increasing and this itself shows the inadequacy of the legal system.
  • And also due to this backlog, most of the prisoners in India’s prisons are detainees awaiting trial.

Factors leading to under-performance of Indian Judiciary

  • The issue of heavy arrears pending in the various courts of the country has been a matter of concern since the time of independence.
  • The primary factors contributing to docket explosion and arrears as highlighted by Justice Malimath Committee report are as follows:
  1. Population explosion
  2. Litigation explosion
  3. Hasty and imperfect drafting of legislation
  4. Plurality and accumulation of appeals (Multiple appeals for the same issue)
  5. Inadequacy of judge strength
  6. Failure to provide adequate forums of appeal against quasi-judicial orders
  7. Lack of priority for disposal of old cases (due to the improper constitution of benches)
  8. Issue of appointment in Quasi-Judicial Bodies

Way ahead

  • For pendency, time limits should be prescribed for all cases based on priorities.
  • So setting time standards is essential and it will vary for different cases, and also for different courts depending on their disposal capacity.
  • Alternative disputes resolution (ADR) mechanisms should be promoted for out-of-court settlements.

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

What is Parboiled Rice, and why Centre wants to stop purchasing it?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Parboiled Rice

Mains level: Not Much

Recently, Telangana CM and members of his Cabinet staged a protest demanding a uniform paddy procurement policy. The protest came after the Centre said it was stopping the purchase of excess parboiled rice, of which Telangana is a major producer.

What is Parboiled Rice?

  • The dictionary meaning of ‘parboil’ is ‘partly cooked by boiling’.
  • Thus, the expression parboiled rice refers to rice that has been partially boiled at the paddy stage, before milling.
  • Parboiling of rice is not a new practice, and has been followed in India since ancient times.
  • However, there is no specific definition of parboiled rice of the Food Corporation of India or the Food Ministry.

How is it prepared?

  • There are several processes for parboiling rice.
  • The Central Food Technological Research Institute (CFTRI), Mysuru, uses a method in which the paddy is soaked in hot water for three hours, in contrast to the more common method in which paddy is soaked for 8 hours.
  • The water is then drained and the paddy steamed for 20 minutes.
  • Also, the paddy is dried in the shade in the method used by the CFTRI, but is sun-dried in the common method.
  • The Paddy Processing Research Centre (PPRC), Thanjavur follows a method known as the chromate soaking process.
  • It uses chromate, a family of salt in which the anion contains both chromium and oxygen, which removes the odour from the wet rice.
  • All processes generally involve three stages—soaking, steaming and drying. After passing through these stages, the paddy goes for milling.

Are all rice varieties suitable for parboiling?

  • Generally, all varieties can be processed into parboiled rice, but it is ideal to use long slender varieties to prevent breakage during milling.
  • However, aromatic varieties should not be parboiled because the process can make it can lose its aroma.

What are the benefits?

  • Parboiling makes rice tougher. This reduces the chances of the rice kernel breaking during milling.
  • It also increases the nutrient value of the rice.
  • It has a higher resistance to insects and fungi.

Certain disadvantages

  • The rice becomes darker and may smell unpleasant due to prolonged soaking.
  • Besides, setting up a parboiling rice milling unit requires a higher investment than a raw rice milling unit.

How much is the stock of parboiled rice in the country?

  • According to the Food Ministry, the total stock of parboiled rice is 40.58 lakh metric tonnes (LMT) as on April 1, 2022.
  • Out of this, the highest stock is in Telangana at 16.52 LMT, followed by Tamil Nadu (12.09 LMT) and Kerala (3 LMT).
  • The stock was in the range 0.04–2.92 LMT in 10 other states —Andhra Pradesh, Chhattisgarh, Odisha, Jharkhand, West Bengal, Karnataka, Bihar, Punjab and Haryana.
  • From the other 10 rice-producing states, including Telangana, the Ministry has no plan to procure parboiled rice.
  • In the coming days, the total parboiled rice stock will increase to 47.76 LMT.

How high is the demand?

  • The Food Ministry pegs the parboiled rice demand at 20 LMT per annum for distribution under the National Food Security Act, 2013.
  • According to the Ministry, the demand for parboiled rice has come down in recent years.
  • In the last few years, production in parboiled rice-consuming states such as Jharkhand, Kerala and Tamil Nadu has increased, resulting in less movement to the deficit states.
  • Earlier, the Food Corporation of India (FCI) used to procure parboiled rice from states such as Telangana to supply to these states.
  • But in recent years, parboiled rice production has increased in these states.
  • The current stock is sufficient to meet the demand for the next two years.

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Places in news: Gulf of Gabes

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gulf of Gabes

Mains level: Not Much

A Fuel Ship with 750 tons of diesel sinks off the Gulf Of Gabes in Tunisia.

Gulf of Gabes

  • The Gulf of Gabes also known as Lesser Syrtis contrasting with the Greater Syrtis in Libya, is a gulf on Tunisia’s east coast in the Mediterranean Sea, off North Africa.
  • The gulf roughly spans the coast from Sfax to Djerba.
  • At the head of the gulf is the city of Gabès (Ghannouche) where the tides have a large range of up to 2.1 m at spring tides.
  • Both Gabès and Sfax are major ports on the gulf, supporting sponge and tuna fisheries, with Gabès being the economic and administrative centre.
  • It is 60 miles (100 km) long and 60 miles wide and is bounded by the Qarqannah (Kerkena) Islands on the northeast and by Jarbah (Djerba) Island on the southeast.

Regional economy of the gulf

  • Except for the Strait of Gibraltar and the Gulf of Venice, it is the only part of the Mediterranean with a substantial tidal range, causing the uncovering of extensive sandbanks at low water.
  • Sponge and tuna fisheries are located at the main ports of Qābis (Gabès) and Ṣafāqis (Sfax).
  • Oil and natural-gas deposits have been found in the gulf, east of Ṣafāqis.

 

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