Note4Students
From UPSC perspective, the following things are important :
Prelims level: G20 and disaster management initiatives and finance mechanism
Mains level: G20's Role in Driving Global Goals and India's leadership in disaster risk management
Central Idea
- The G20 nations, representing a population of 4.7 billion people, are exposed to significant risks from natural disasters and face substantial vulnerabilities. In the World Risk Index, four G20 countries are among the top 10 most vulnerable nations. The economic impact of disasters in the G20 countries alone amounts to an estimated annual average loss of $218 billion. It is imperative to prioritize disaster risk reduction measures to mitigate these losses and protect development gains.
G20’s Role in Driving Global Goals
- Platform for International Cooperation: The G20 provides a platform for international cooperation and collaboration among the world’s major economies. It brings together leaders from diverse nations to discuss global challenges, share best practices, and coordinate efforts to address common goals.
- Influence and Economic Power: The G20 nations represent a significant share of the global economy, accounting for approximately 85% of global GDP and two-thirds of the world’s population. Their collective influence and economic power give them the capacity to drive global initiatives and mobilize resources to address pressing issues.
- Promoting Policy Coherence: The G20 promotes policy coherence by fostering dialogue and coordination among its member nations. Through discussions, agreements, and joint statements, the G20 seeks to align policies and actions to address global challenges, including those related to disaster risk reduction.
- Innovative Financing Mechanisms: The G20 has the ability to explore and promote innovative financing mechanisms for global goals. This includes mobilizing financial resources from governments, multilateral institutions, capital markets, insurance companies, philanthropies, and communities. By maximizing the impact of financial resources, the G20 can support initiatives related to disaster risk reduction and other priority areas.
- Advancing International Frameworks and Agreements: The G20 plays a vital role in advancing international frameworks and agreements related to disaster risk reduction. For instance, the G20 can support the implementation of the Sendai Framework for Disaster Risk Reduction, which provides a global roadmap for reducing disaster risks and enhancing resilience.
- Sharing Best Practices and Lessons Learned: Through the G20 platform, member countries can share best practices, experiences, and lessons learned in disaster risk reduction. This exchange of knowledge and expertise contributes to the development of effective strategies, policies, and approaches that can be replicated and scaled up globally.
- Driving Innovation and Research: The G20 can drive innovation and research by promoting investment in research and development related to disaster risk reduction. This includes supporting scientific advancements, technological innovations, and data-driven approaches that enhance understanding, preparedness, and response to disasters.
- Influencing Global Agendas: As major economies, the G20 nations have significant influence on global agendas. By prioritizing and advocating for specific issues, such as disaster risk reduction, the G20 can shape global discourse, policies, and actions, mobilizing international attention and resources towards addressing these challenges
The vulnerability of G20 countries to disasters
- Geographic Location: Several G20 countries are located in regions prone to specific hazards. For instance, countries like Japan, Indonesia, Mexico, and Turkey are situated in seismically active zones, making them vulnerable to earthquakes and tsunamis. Coastal nations, including the United States, China, India, Brazil, and Australia, face the risks of tropical cyclones, storm surges, and coastal flooding.
- Climate Extremes: G20 countries experience a wide range of climate-related hazards. For instance, Canada and Russia face risks associated with extreme cold, while Australia and Brazil are susceptible to wildfires and droughts. Heatwaves and heavy rainfall leading to floods pose significant risks in countries like India, Germany, and South Korea.
- Population Density: Several G20 countries have high population densities, increasing their vulnerability to disasters. The concentration of people and infrastructure in urban areas amplifies the potential impacts of hazards such as earthquakes, floods, and storms. Cities like Tokyo, Mexico City, Mumbai, Istanbul, and Shanghai face unique challenges due to their large populations and exposure to multiple hazards.
- Infrastructure and Urbanization: Rapid urbanization and inadequate infrastructure planning can exacerbate vulnerability to disasters. Poorly constructed buildings, inadequate drainage systems, and improper land use practices can heighten the impacts of hazards. G20 countries with rapid urban growth, such as China and India, face challenges related to resilient urban development.
- Socioeconomic Factors: Socioeconomic factors such as poverty, inequality, and limited access to resources can increase vulnerability to disasters. Countries with significant disparities in wealth distribution, such as India, Brazil, and South Africa, often face challenges in adequately addressing disaster risks and providing timely response and recovery.
- Environmental Degradation: G20 countries also grapple with environmental degradation, which can exacerbate vulnerability to disasters. Deforestation, soil erosion, and loss of wetlands and natural buffers diminish the ability of ecosystems to mitigate and absorb the impacts of hazards. This is particularly relevant for countries like Brazil, Indonesia, and Russia, which are home to ecologically sensitive regions
India’s Leadership in Disaster Risk Reduction (DRR)
- Initiating a New Workstream in G20: India has taken a proactive step by initiating a new workstream within the G20 focused on disaster risk reduction. This highlights India’s recognition of the importance of international collaboration and concerted efforts to address disaster risks at a global level.
- Five Priorities Outlined in the Working Group: In the first meeting of the G20 working group on disaster risk reduction, India put forth five priorities to guide the group’s efforts. These priorities include universal coverage of early warning systems, emphasis on disaster and climate-resilient infrastructure, improving financing frameworks, enhancing response capabilities, and applying ecosystem-based approaches to disaster risk.
- Transforming Disaster Financing: India has spearheaded efforts to transform the way governments finance disaster risk reduction. Recognizing the limitations of traditional budget allocations, India has explored innovative financing tools and mechanisms. This includes creating reserve funds, dedicated lines of credit, and leveraging global resources to support disaster-resilient infrastructure development.
- Targeted Efforts to Reduce Losses: India has made targeted efforts to reduce losses from disasters through comprehensive risk management strategies. By focusing on areas such as flood risk management, India has implemented measures to minimize the impacts of extreme weather conditions, protect lives, and enhance disaster preparedness.
- Coalition for Disaster Resilient Infrastructure (CDRI): India and the United States currently co-chair the Coalition for Disaster Resilient Infrastructure. The CDRI aims to promote investments in resilient infrastructure and foster international collaboration to enhance disaster resilience globally. India’s leadership in this coalition reflects its commitment to driving resilience-building efforts.
- Implementation of Sendai Framework: India has aligned its disaster risk reduction efforts with the Sendai Framework, a global framework for DRR. The 10-point agenda outlined by India’s Prime Minister after the adoption of the Sendai Framework guides the country in the implementation of comprehensive DRR strategies.
Key Themes for Future Action
- Reimagining Financing for Disaster Risk Reduction: Explore innovative financing tools, including reserve funds, dedicated lines of credit, and global resource mobilization. While green financing has gained momentum, greater attention should be given to disaster risk financing, especially for countries like India with increasing capital expenditure.
- Differential Strategies for Extensive and Intensive Risks: Develop targeted approaches to reduce losses from frequent but moderate impact events (extensive risks) such as heatwaves, lightning, floods, and landslides. These events accumulate significant losses and necessitate specific risk reduction measures.
- Convergence of Disaster Risk Reduction and Climate Change Adaptation: Integrate efforts to address both disaster risk reduction and climate change adaptation. Analytical and implementation capacities for disaster risk reduction should support climate change adaptation, ensuring synergies between flood management structures and adaptation efforts.
- Priority Access to Early Warning Systems: Early warning systems, such as cyclone early warnings, should be treated as global public goods, accessible to all populations irrespective of their economic strength. The G20 can lead by example, setting up mechanisms to ensure universal access to early warning systems in line with the UN Secretary General’s initiative.
- Multi-tiered and Multi-sectoral Effort: Disaster risk reduction requires an integrated approach across levels and sectors. Integration from local to global levels and horizontal collaboration across sectors will enhance readiness to manage unknown risks, considering the interlinkages and interdependence of the world
Need for Convergence of Disaster Risk Reduction and Climate Change Adaptation
- Shared Risks and Drivers: Both DRR and CCA address risks associated with natural hazards and climate change impacts. Disasters are often exacerbated by climate change, while climate change can intensify the frequency and severity of disasters. Converging efforts allows for a comprehensive and integrated approach to address these shared risks and underlying drivers.
- Synergies in Solutions: DRR and CCA strategies share common elements and can leverage synergies in their solutions. For example, building disaster-resilient infrastructure can contribute to climate change adaptation by considering future climate scenarios. Similarly, nature-based solutions, such as protecting and restoring ecosystems, can provide benefits for both disaster risk reduction and climate resilience.
- Efficiency and Resource Optimization: Converging DRR and CCA efforts allows for the efficient use of resources, avoiding duplication and maximizing the effectiveness of interventions. Instead of implementing separate and parallel initiatives, integrated approaches can streamline efforts, optimize funding, and improve overall outcomes.
- Integrated Risk Management: Combining DRR and CCA enables a holistic approach to risk management. By integrating climate projections, vulnerability assessments, and disaster risk assessments, decision-makers can develop comprehensive risk management strategies that address both current and future risks.
- Co-benefits for Sustainable Development: Integrating DRR and CCA contributes to sustainable development goals. By reducing disaster risks and enhancing climate resilience, communities can protect livelihoods, preserve ecosystems, ensure food security, and promote social well-being. This integrated approach aligns with the broader agenda of sustainable development.
- Policy and Institutional Integration: Convergence of DRR and CCA necessitates policy coherence and institutional coordination. Aligning strategies, frameworks, and institutions responsible for DRR and CCA facilitates better integration of risk reduction and adaptation measures. This coordination strengthens governance structures and enhances implementation effectiveness.
- Adaptive Capacity Building: Addressing the interconnected challenges of disasters and climate change requires enhancing adaptive capacities at various levels. By combining efforts, stakeholders can work collaboratively to build capacities for disaster response, early warning systems, community engagement, and climate-resilient practices, thereby enhancing overall resilience.
Conclusion
- Disaster preparedness has been a priority of India for last few years. India has taken significant steps in transforming disaster risk reduction financing and targeted loss reduction efforts. Chairing the Coalition for Disaster Resilient Infrastructure alongside the United States, India’s commitment to disaster preparedness is reflected in the creation of a new workstream under the G20. By leveraging their economic power, promoting policy coherence, and fostering international cooperation, the G20 can contribute to building a safer, more resilient, and sustainable world.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Demonetization, Basics over the role of central bank
Mains level: Demonetization, recent withdrawal of the ₹2,000 notes, rationale behind, impact and concerns
Central Idea
- When discussing the value of a currency, the focus often revolves around its exchange rate and purchasing power. However, there is a more fundamental aspect to consider is the confidence citizens have in its acceptance and stability as a medium of exchange and store of value. This confidence is deeply rooted in the trust placed in the central bank, such as the Reserve Bank of India (RBI).
Rationale behind the decision to withdraw ₹2,000 notes from circulation while keeping them legal tender
- Promoting Clean Note Policy: The withdrawal is part of the RBI’s initiative to promote a cleaner currency system. By encouraging the exchange of soiled or damaged notes, the RBI aims to improve the overall quality of currency in circulation.
- Curbing Black Money: The decision is aimed at curbing the hoarding of black money, as higher denomination notes are often associated with illicit activities. By limiting the usage of ₹2,000 notes, the RBI intends to discourage the accumulation of unaccounted wealth.
- Enhancing Transparency: The withdrawal is expected to increase transparency in financial transactions. By reducing the availability of high-value currency, the RBI aims to encourage a shift towards digital payments and traceable transactions.
- Addressing Counterfeit Concerns: The withdrawal may help mitigate the risks associated with counterfeit currency. High-denomination notes are often targeted by counterfeiters, and by withdrawing ₹2,000 notes, the RBI aims to combat counterfeiting and maintain the integrity of the currency.
- Managing Currency Supply: The withdrawal allows the RBI to better manage the supply and circulation of currency. By gradually replacing ₹2,000 notes with lower denomination currency, the RBI can ensure an adequate availability of notes for day-to-day transactions.
- Aligning with Majority Usage: The decision is based on the observation that a significant majority of transactions in India involve lower monetary values. By withdrawing ₹2,000 notes, which are predominantly used for high-value transactions, the RBI aims to align the currency with the needs of the majority of the population.
Potential Impact of this move on Business and Economy
- Uncertainty and Business Sentiment: The move to withdraw ₹2,000 notes may create uncertainty among businesses, as sudden changes in the currency system can disrupt economic activities. This uncertainty can affect business sentiment and decision-making, potentially leading to a cautious approach in investments and expansion plans.
- Cash-dependent Sectors: Certain sectors that heavily rely on cash transactions, such as small businesses, informal sectors, and rural areas, may face challenges in adjusting to the withdrawal. The availability of lower denomination notes to replace ₹2,000 notes and the need for individuals to exchange their existing notes can temporarily disrupt cash flow in these sectors.
- Digital Payment Adoption: With the reduction in the availability of high-value currency, there may be a push for increased adoption of digital payment methods. The withdrawal can potentially accelerate the ongoing shift towards digital transactions, as individuals and businesses seek alternatives to cash transactions.
- Impact on Consumption: The withdrawal can have implications for consumer spending patterns. If individuals perceive a scarcity of high-value currency, it may affect their spending behavior, particularly for larger purchases. This could lead to a short-term dampening of consumer demand and impact certain sectors of the economy, such as real estate and luxury goods.
- Counterfeit and Black Money: The withdrawal of ₹2,000 notes aims to combat counterfeiting and curb the hoarding of black money. If successful, it can contribute to enhancing the integrity of the currency and promoting a more transparent financial system. However, the actual impact on eliminating black money and counterfeit currency will depend on the effectiveness of enforcement measures and the adoption of alternative means for illicit transactions.
- Financial Inclusion: The withdrawal may pose challenges for individuals who have limited access to banking services or digital payment infrastructure. Efforts will be needed to ensure that the transition does not hinder financial inclusion and that adequate support is provided to vulnerable segments of the population.
Concerns and arguments over the central bank’s reputation
- Demonetization Fallout: The implementation of demonetization in 2016, where high-value currency notes were invalidated, received mixed reactions. Critics argue that the RBI’s involvement in the decision-making process and its execution raised questions about the central bank’s independence and its ability to manage the country’s monetary policies effectively.
- Inflation Management: The RBI’s primary mandate is to maintain price stability and control inflation. However, the central bank has faced challenges in achieving its inflation targets consistently. Critics contend that the RBI’s monetary policy framework and communication strategies could be improved to ensure better alignment with its objectives and boost its reputation in inflation management.
- Banking Sector Oversight: The RBI is responsible for overseeing the banking sector and maintaining financial stability. Some argue that the central bank could have been more proactive in detecting and addressing issues related to non-performing assets (NPAs) and the overall health of banks. The perceived delays in taking corrective measures and addressing governance issues have raised concerns about the effectiveness of the RBI’s regulatory oversight.
- Communication and Transparency: The RBI’s communication and transparency have been points of discussion. Critics argue that the central bank could enhance its communication strategies, ensuring clearer and more consistent messaging about policy decisions and their objectives.
- Autonomy and Independence: The reputation of the RBI rests heavily on its autonomy and independence from external influences. Concerns have been raised over potential encroachments on the central bank’s independence, such as the invocation of certain provisions of the RBI Act and debates around the RBI’s relationship with the government. Preserving the RBI’s autonomy is seen as crucial for maintaining its reputation as a credible and independent institution.
What measures RBI must take to restore and maintain its reputation?
- Transparency and Communication: The RBI should prioritize transparency in its operations and decision-making process. It should provide clear and timely communication regarding policy decisions, objectives, and the rationale behind its actions. Regular and effective communication can help build public trust and enhance understanding of the RBI’s role in maintaining a stable and resilient financial system.
- Independence and Autonomy: The RBI should emphasize its independence from political interference. It should ensure that its decision-making process remains free from external pressures and is based on sound economic principles. Upholding its autonomy strengthens the perception of the RBI as a credible and reliable institution.
- Consistency and Predictability: A clear and consistent approach to monetary policy, regulation, and supervision fosters stability and confidence in the financial system. Avoiding abrupt shifts or reversals in policy direction can enhance the RBI’s reputation for sound decision-making.
- Accountability and Oversight: The RBI should establish robust mechanisms for accountability and oversight. This includes effective internal controls, external audits, and appropriate checks and balances to ensure that the RBI’s policies and actions align with its mandate and serve the best interests of the economy. Accountability helps maintain public confidence in the RBI’s operations.
- Economic Stability and Financial Inclusion: The RBI should prioritize its mandate of maintaining economic stability while promoting financial inclusion. By implementing effective monetary policies, managing inflation, and ensuring a resilient financial system, the RBI can contribute to sustainable economic growth and reduce income disparities.
- Continuous Learning and Adaptation: The RBI should emphasize continuous learning, research, and adaptation to evolving economic and financial challenges. Staying informed about global best practices, monitoring emerging risks, and proactively addressing new challenges will enable the RBI to enhance its effectiveness and reputation as a forward-looking institution.
Conclusion
- The recent actions of the Reserve Bank of India (RBI), including the withdrawal of the ₹2,000 note and the aftermath of the 2016 demonetization, have cast doubt on the RBI’s judgment and ability to uphold public trust. By aligning its actions with the long-term interests of the Indian economy, the RBI can preserve the value of the currency and ensure stability in the financial system. Only then can the RBI regain its reputation and fulfill its role as a trustworthy and effective central bank
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GANHRI, NHRC
Mains level: Alleged HR violations in India, Western propaganda behind
Central Idea
The Global Alliance of National Human Rights Institutions (GANHRI), a UN-recognized organization, has deferred the accreditation of India’s National Human Rights Commission (NHRC-India) for the second time in a decade.
GANHRI (Global Alliance of National Human Rights Institutions)
|
| Purpose |
Promote and protect human rights globally |
| Year Established |
1993 |
| Headquarters |
Geneva, Switzerland |
| Members |
National Human Rights Institutions (NHRIs) from various countries |
| Key Functions |
– Promoting and strengthening NHRIs worldwide
– Advocating for human rights at national, regional, and global levels
– Facilitating cooperation and sharing of best practices among NHRIs
– Providing capacity-building support to NHRIs etc. |
| Organizational Structure |
– President: Elected from GANHRI members for a specified term
– Bureau: Assists the President in overseeing GANHRI’s work
– Sub-Committees: Focused on specific thematic or regional issues |
| Key Documents |
– Paris Principles: Provide guidance for the establishment and operation of NHRIs
– GANHRI Strategy: Outlines the organization’s strategic objectives and actions |
Reasons for India’s Deferment
The GANHRI’s letter to the NHRC cited several reasons for the deferment of accreditation, including:
- Political Interference: The NHRC-India faced objections related to political interference in appointments, compromising its independence.
- Police Involvement: Involving the police in probes into human rights violations raised concerns about impartiality and fair investigations.
- Lack of Cooperation: The NHRC’s poor cooperation with civil society was criticized, hindering its effectiveness in protecting human rights.
- Lack of Diversity: The GANHRI highlighted the lack of diversity in staff and leadership positions within the NHRC.
- Insufficient Protection of Marginalized Groups: The NHRC was found to have taken insufficient action to protect marginalized groups, contrary to the U.N.’s principles on national institutions (the ‘Paris Principles).
Concerns highlighted against India
- Many NGOs such as Amnesty International, Front Line Defenders etc. wrote a joint letter to GANHRI expressing their objections to NHRC India’s ‘A’ rank.
- They highlighted the commission’s failure to protect marginalized communities, religious minorities, and human rights defenders.
- The letter emphasized that the NHRC’s functioning has regressed since 2017, undermining its independence and adherence to the Paris Principles.
Paris Principles and Accreditation Criteria
The United Nations’ Paris Principles, adopted in 1993, serve as international benchmarks for accrediting National Human Rights Institutions (NHRIs). The Paris Principles outline six main criteria that NHRIs must meet:
- Mandate and Competence: NHRIs should have a clear mandate and the necessary expertise to protect human rights effectively.
- Autonomy from Government: NHRIs must operate independently from government influence or control.
- Independence: NHRIs should have their independence guaranteed by a statute or constitution.
- Pluralism: NHRIs should ensure diversity and inclusivity in their staffing and leadership positions.
- Adequate Resources: NHRIs should have sufficient resources to carry out their mandated functions effectively.
- Powers of Investigation: NHRIs should possess adequate investigative powers to address human rights violations.
Background of NHRC-India
- The NHRC-India was established under the Protection of Human Rights Act enacted by Parliament in 1993.
- It has held ‘A’ status accreditation since the beginning of the NHRI accreditation process in 1999, which it retained in 2006, 2011, and 2017, despite a previous deferment.
- This status allows participation in the work and decision-making of GANHRI, the Human Rights Council, and other U.N. mechanisms
Response from India
- The NHRC clarified that the deferment by the Sub Committee on Accreditation (SCA) does not affect its current ‘A’ status accreditation and associated privileges.
- The reaccreditation process is still ongoing, and the SCA has recommended advocating with the government and Parliamentarians for legislative amendments to improve compliance with the Paris Principles.
- The NHRC assured that they have addressed most of the issues raised by the SCA and will submit a response shortly as part of the ongoing process.
Way Forward
To address the concerns raised by GANHRI and human rights organizations, the NHRC-India should take the following steps:
- Strengthen Independence: Ensure that the NHRC operates independently without political interference, safeguarding its credibility and effectiveness.
- Promote Diversity: Take measures to enhance diversity in staffing and leadership positions within the NHRC to ensure a broader representation of society.
- Improve Protection of Marginalized Groups: Develop comprehensive strategies and policies to provide effective protection and support to marginalized communities, religious minorities, and human rights defenders.
- Address Legislative Amendments: Actively engage with the government and Parliamentarians to advocate for necessary legislative amendments that align with the Paris Principles and enhance compliance with international human rights standards.
Conclusion
- By implementing these measures, the NHRC-India can strengthen its functioning, regain the confidence of GANHRI and human rights organizations, and ensure the effective protection of human rights in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: WTO
Mains level: Reforms in multilateral institutions
Central Idea
- India has stressed the urgent need for prioritizing reforms within the World Trade Organisation (WTO).
- India has been advocating for WTO reforms and improved dispute settlement mechanisms during G20 discussions.
About WTO
|
Functions and Principles |
| Establishment |
1 January 1995 |
| Functions |
- Negotiating trade agreements
- Enforcing trade rules
- Providing technical assistance and capacity building
- Sharing trade-related information and conducting research
|
| Fundamental principles |
- Non-discrimination
- Reciprocity
- Transparency
- Predictability and stability
|
| Membership |
164 member countries representing over 98% of global trade |
| Decision-making |
- Decisions made by consensus among member countries
- General Council is the highest decision-making body
|
Prioritizing WTO Reforms
- India’s Push for Reforms: India has been actively advocating for reforms within the World Trade Organisation.
- Better Dispute Settlement Mechanisms: Alongside reforms, India is pushing for improved dispute settlement mechanisms within the WTO.
- Reaffirming Foundational Principles: The discussions aim to reaffirm the principles enshrined in the Marrakesh Agreement and the multilateral trade agreements, emphasizing the importance of an open, fair, inclusive, and transparent WTO.
Reforms that India is seeking
- Structural Reforms: There is an urgent need for reforms within the WTO to address issues such as transparency, shorter time frames, the establishment of a permanent panel body, and special and differential treatment for developing countries.
- Benefit for Developing Countries: Developing countries, including India, can benefit from these reforms if proposals specific to their needs are accepted.
- Trade Facilitation for Services: While the WTO has made progress with the Trade Facilitation Agreement (TFA) concerning goods, there is a need for reforms in trade facilitation for services. India, as a major service provider, stands to benefit from improved cross-border movement of people.
- Inclusivity: It is crucial to establish procedures and practices that are more inclusive, particularly for developing countries.
- Peace Clauses: Adoption of “peace clauses” for developing countries’ implementation of current agreements can formalize commitments by major trading powers to allow grace periods and exercise due restraint.
- Evolving Negotiation Modes: The single package approach used in the Uruguay Round is not effective in the Doha Round, necessitating the exploration of new negotiation modes.
- Strengthened Dispute Settlement Mechanism: The dispute settlement mechanism within the WTO requires strengthening and expediting to enhance its effectiveness.
- Separation of Political and Human Rights Issues: There is a need to separate political and human rights issues from trade disputes under Sanitary and Phytosanitary (SPS) norms.
Crossroads for WTO
- Stalled Multilateral Trade Negotiations: The multilateral trade negotiations, including the Doha Round, have reached an impasse, with limited progress in overall rule-making.
- Challenges from Alternative Trade Pacts: Alternative trade pacts, such as mega-regional arrangements, have emerged and posed challenges to the position of trade multilateralism.
- Disagreements on Market Access and Protection: The impasse in the Doha Round primarily stems from differences between highly industrialized countries and large developing countries regarding market access and protection of vulnerable economic sectors.
Importance of Addressing WTO Reforms
- Vital Role of WTO: The Minister emphasized that addressing WTO reforms is of utmost importance as the organization plays a crucial role in ensuring fairness and transparency in global trade.
- Backbone of Multilateral Trading System: The WTO forms the backbone of the multilateral trading system and its reforms are necessary to strengthen its functioning.
India’s Aspirations in International Trade
- Global Leadership Ambition: India has expressed India’s aspiration to emerge as a global leader in the international trade landscape.
- E-commerce Market Potential: India is poised to become the world’s second-largest e-commerce market, reflecting its transformation driven by open markets, global integration, and a strong entrepreneurial spirit.
Way Forward
- The urgent need for WTO reforms necessitates concerted efforts and global attention to ensure the fairness, transparency, and effectiveness of the multilateral trading system.
- India’s active participation in advocating for reforms, along with its ambition to become a global leader in international trade, reflects its commitment to fostering a thriving and inclusive global trade environment.
- It is essential for countries to collaborate and engage in constructive dialogue to address the challenges and opportunities in the evolving global trade landscape.
Back2Basics: WTO Agreements and Accords
- General Agreement on Tariffs and Trade (GATT): The GATT is the predecessor to the WTO and was in effect from 1948 to 1994. It aimed to reduce trade barriers and promote international trade through negotiations and tariff concessions.
- Agreement on Agriculture (AoA): This agreement aims to establish fair and market-oriented agricultural trading systems. It addresses issues such as market access, domestic support, and export subsidies related to agricultural products.
- Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): The TRIPS agreement sets minimum standards for protecting intellectual property rights, including patents, copyrights, trademarks, and trade secrets.
- Agreement on Trade-Related Investment Measures (TRIMs): This agreement prohibits certain investment measures that restrict trade or are inconsistent with the GATT’s principles.
- Agreement on Sanitary and Phytosanitary Measures (SPS): The SPS agreement sets out rules for food safety and animal and plant health standards to ensure that countries do not use sanitary and phytosanitary measures as unjustified trade barriers.
- Agreement on Technical Barriers to Trade (TBT): The TBT agreement aims to ensure that technical regulations, standards, and conformity assessment procedures do not create unnecessary obstacles to trade.
- Agreement on Subsidies and Countervailing Measures (SCM): The SCM agreement regulates the use of subsidies and provides a framework for countervailing measures to address unfair trade practices arising from the use of subsidies.
- Trade Facilitation Agreement (TFA): The TFA aims to simplify and streamline customs procedures, enhance transparency, and improve efficiency in international trade, with a focus on reducing trade costs and facilitating cross-border trade.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Forum Shopping
Mains level: Ethics in judicial conduct
Central Idea
- The CJI, DY Chandrachud expressed his disapproval of forum shopping, a practice in which litigants or lawyers deliberately choose a specific judge or court that they believe will provide a more favorable judgment.
Understanding Forum Shopping
- Forum shopping refers to the intentional selection of a court or judge by litigants or lawyers with the expectation of obtaining a favourable outcome.
- It involves strategically moving a case to a particular jurisdiction based on a perception of better judgment.
- Lawyers consider the appropriate forum as part of their litigation strategy, sometimes opting for higher courts like the Supreme Court to gain wider attention for their case.
- However, deliberately avoiding a specific judge or manipulating the process to obtain favourable treatment is generally discouraged.
Concerns and Criticisms
The practice of forum shopping raises several concerns, including:
- Injustice to the Other Party: Forum shopping can result in unfair treatment and injustice to the opposing party, as it undermines the principle of impartiality and equal access to justice.
- Overburdening Certain Courts: Concentrating cases before specific judges or courts can overload their workload, causing delays and hindering the judicial process.
- Interference with Judicial Process: Forum shopping interferes with the smooth functioning of the judicial system, as cases may be filed and refiled in multiple jurisdictions, leading to unnecessary duplication of efforts.
Approaches in Common Law Countries
- Countries following the common law tradition, including the US and UK, have criticized forum shopping and adopted measures to discourage or prohibit the practice.
- One such measure is the principle of “forum non-conveniens,” which grants courts discretionary powers to refuse jurisdiction when another court or forum would be more appropriate to hear the case.
- This allows the court to dismiss a case in the interest of justice and fairness, redirecting it to the appropriate venue.
- The Supreme Court, in its ruling in ‘Chetak Construction Ltd. vs. Om Prakash (1988),’ emphasized that a litigant should not be allowed to choose the forum and called for stern action against any attempt at forum shopping.
Supreme Court’s View on Forum Shopping
- In a 2022 ruling, the Supreme Court reiterated its condemnation of forum shopping, citing its previous 2017 ruling in ‘Union of India & Ors. vs. Cipla Ltd.’
- The court established a “functional test” to determine whether forum shopping is occurring.
- The test considers the functional similarity between different courts or whether a litigant is employing subterfuge to manipulate the system.
Way Forward
To address the issue of forum shopping, it is essential to:
- Create Awareness: Raise awareness among litigants, lawyers, and the general public about the negative consequences of forum shopping and the importance of upholding judicial integrity and fairness.
- Strengthen Ethical Standards: Emphasize the ethical obligations of lawyers to uphold the integrity of the legal profession and discourage forum shopping practices.
- Streamline Jurisdictional Rules: Develop clear guidelines and rules regarding jurisdictional issues to prevent unnecessary disputes and ensure cases are heard by the appropriate courts.
- Judicial Training and Monitoring: Provide training and guidance to judges on identifying and addressing instances of forum shopping, while also monitoring court proceedings to detect any potential manipulation.
Conclusion
- By implementing these measures, the legal system can discourage forum shopping, uphold the principles of justice and fairness, and maintain the integrity of the judicial process.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sengol
Mains level: Not Much
Central Idea
- Prime Minister is set to install the ‘Sengol,’ a historical sceptre from Tamil Nadu, in the new Parliament building, which will be inaugurated on May 28, 2023.
What is Sengol?
- Sengol is a historical sceptre that holds significant cultural and historical value in Tamil Nadu.
- Derived from the Tamil word “Semmai,” meaning “Righteousness,” Sengol represents a symbol of justice and good governance.
- In the Chola era, the transfer of power from one king to another was sanctified with the sceptre being handed over as a symbol of authority and the responsibility to rule with fairness and justice.
- It gained prominence during the transfer of power from the British to the Indian people at the time of India’s independence.
History: Traditional Chola Practice and Symbolism
- Historical Practice: The presentation of the Sengol aligns with a traditional Chola practice where Samayacharyas (spiritual leaders) led the coronation of kings, sanctifying the transfer of power and symbolically recognizing the ruler.
- Symbol of Justice and Good Governance: The Sengol, a symbol of justice and good governance, holds cultural significance as recorded in ancient Tamil texts like Silapathikaram and Manimekalai.
Sengol’s recent context and creation
- Lord Mountbatten’s Question: Prior to Independence, Lord Mountbatten, the last Viceroy of India, asked Nehru about the ceremony that should symbolize the transfer of power.
- Inspiration from Chola Dynasty: Rajagopalachari, the last Governor-General of India, suggested a ceremony from the Chola dynasty, where the transfer of power was sanctified and blessed by high priests.
- Manufacturing the Sengol: Rajagopalachari approached Thiruvaduthurai Atheenam, a renowned Shaivite mutt in Tamil Nadu’s Tanjore district, which commissioned the creation of the Sengol from Chennai-based jewellers, “Vummidi Bangaru Chetty.”
- Craftsmanship: Vummidi Ethirajulu and Vummidi Sudhakar skillfully crafted the five-foot-long Sengol, featuring a symbolic ‘Nandi’ bull representing justice.
Significance of the ‘Sengol’
- Symbolic importance: Derived from the Tamil word “Semmai,” meaning “Righteousness,” the ‘Sengol’ represents a significant historical symbol of Independence.
- Marks Transfer of Power: On August 14, 1947, Pandit Nehru, the first PM, received the ‘Sengol’ from the Adhinam of Tamil Nadu, marking the shift of power from the British to the Indian people.
The Handover Ceremony
- Arrival of the Sengol: Three individuals, including the deputy high priest of the Adheenam, a Nadaswaram player, and an Oduvar (singer), brought the newly made Sengol from Tamil Nadu.
- The Ceremony: On August 14, 1947, the Sengol was handed over to Lord Mountbatten during a procession, and later taken to Jawaharlal Nehru’s house, where it was officially presented to him.
- Sacred Song and Attendees: A special song composed by the 7th-century Tamil saint Tirugnana Sambandar, as specified by the high priest, accompanied the ceremony. Dr. Rajendra Prasad, India’s first president, and other dignitaries were present during the event.
Ceremonial Procession and Tamil Traditions
- Grand Procession: The Sengol will be ceremoniously transported to the House in a grand procession.
- Musical Ensemble: Traditional Nadaswaram musicians, playing Tamil Nadu’s iconic instrument, will lead the procession, and PM is expected to walk alongside them, embracing Tamil culture.
- Adheenams and Sanctification: Adheenams, priests from Shaivite mutts in Tamil Nadu, will be present in the Lok Sabha’s Well. They will sanctify the Sengol with holy water after Prime Minister Modi greets them, honoring Tamil traditions.
- Oduvars and Sacred Recitation: Tamil temple singers known as Oduvars will recite the “Kolaru Padhigam” lyrically, while the Nadaswaram musicians enchant with their soulful music.
Conclusion
- The Sengol continues to be revered as a representation of India’s independence and serves as a tangible reminder of the country’s rich cultural heritage and the values it upholds.
- Its installation in the new Parliament building further emphasizes its importance and aims to educate and inspire people about this historical event and the principles it embodies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Supercomputing
Mains level: National Supercomputing Mission
Central Idea
- India is set to significantly enhance its supercomputing capabilities by installing an 18-petaflop system this year.
- This development aims to improve complex mathematical calculations, particularly in weather forecasting, by providing greater processing power and accuracy.
Understanding Supercomputers
- A supercomputer is a high-performance computer capable of processing massive amounts of data at extraordinary speeds.
- Performance is measured in floating-point operations per second (FLOPS) rather than million instructions per second (MIPS).
- Supercomputers have the ability to perform trillions (peta) of FLOPS.
India’s Journey in Supercomputing
- India’s supercomputing journey began in the late 1980s when the Centre for Development of Advanced Computing (C-DAC) was established in response to technology embargoes imposed by the United States.
- Since then, India has steadily progressed, unveiling the PARAM 800 in 1991, which was the world’s second-fastest supercomputer at the time.
- The National Supercomputing Mission (NSM), launched in 2015 with a budget of ₹4,500 crore, has been instrumental in propelling India’s supercomputing capabilities.
- The mission aims to create a network of supercomputers across academic and research institutions in the country, supporting academia, researchers, MSMEs, and startups.
Current Supercomputing Infrastructure
- India’s most powerful civilian supercomputers, Pratyush and Mihir, have a combined capacity of 6.8 petaflops.
- Pratyush is located at the Indian Institute of Tropical Meteorology (IITM) in Pune, while Mihir is housed at the National Centre for Medium Range Weather Forecasting (NCMRWF) in Noida.
- These supercomputers became operational in 2018 after an investment of ₹438 crore.
- Both institutions are affiliated with the MoES.
Acquisition of New Supercomputers
- The new supercomputers, sourced from French corporation ATOS, were procured as part of a deal signed between the Indian and French governments in December 2018.
- The Government aims to acquire high-performance computers worth ₹4,500 crore by 2025, with an estimated cost of ₹900 crore for the new earth-sciences Ministry computers.
Enhanced Capabilities and Future Outlook
- Upgrading the supercomputing systems every 4-5 years is essential to improve performance.
- The new system will enhance resolution from the current 12×12 km to 6×6 km, providing greater clarity and accuracy in local weather forecasts.
- The ultimate goal is to represent areas using 1 km-square grids, enabling the prediction of rapidly evolving weather phenomena such as cloudbursts.
- The current fastest high-performance computing system in the world is the Frontier-Cray system at Oakridge National Laboratory in the United States, with a peak speed of 1 exa-flop (equivalent to 1,000 petaflops).
Way forward
To further enhance India’s supercomputing capabilities and maintain technological advancements, the following steps can be considered:
- Continued investment in research and development to stay at the forefront of supercomputing technology.
- Collaboration with international partners and organizations to leverage global expertise.
- Encouraging academia, researchers, MSMEs, and startups to utilize the supercomputing infrastructure for scientific breakthroughs and innovation.
- Strengthening the National Supercomputing Mission (NSM) by expanding its network and providing adequate resources.
- Regularly upgrading supercomputing systems to keep up with evolving computational demands and maintain competitiveness on a global scale.
Also in news
Recently, India’s AI Supercomputer ‘AIRAWAT’ has been ranked at No. 75 in the world at the International Supercomputing Conference (ISC 2023) in Germany.
About Airawat
- The supercomputer ‘AIRAWAT’ has recently been named in the 61st edition of the Top 500 Global Supercomputing List.
- Installed at C-DAC in Pune, ‘AIRAWAT’ is an AI supercomputer implemented under the National Program on AI by the Government of India.
- The manufacturer of ‘AIRAWAT’ is Netweb Technologies.
- ‘AIRAWAT’ PSAI stands out as India’s largest and fastest AI supercomputing system, boasting an impressive speed of 13,170 teraflops.
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