Note4Students
From UPSC perspective, the following things are important :
Mains level: Wealth tax;
Why in the News?
At a New Delhi panel, economist Thomas Piketty proposed taxing India’s super-rich to fund health and education, while Chief Economic Advisor Anantha Nageswaran cautioned against potential fund outflows from higher taxes.
What are the potential benefits of reinstating a wealth tax?
- Funding Public Services: A wealth tax could provide significant revenue that could be allocated to critical sectors such as health and education, addressing inequalities in access to these services. This funding could help create a more educated and healthier workforce, ultimately benefiting the economy.
- Addressing Wealth Inequality: With wealth concentration at historically high levels, a wealth tax could serve as a tool to mitigate inequality, which is increasingly viewed as a fundamental development issue that affects opportunities for many individuals.
- Encouraging Productive Investments: By taxing unproductive assets like real estate and gold while promoting investments in productive assets such as equities and bonds, a wealth tax could potentially shift capital towards more economically beneficial uses.
What challenges and criticisms exist regarding the implementation of a wealth tax?
- Measurement Difficulties: Accurately measuring wealth poses significant challenges. The complexities of defining what constitutes wealth and ownership can lead to loopholes and evasion, as individuals may shift their assets to avoid taxation.
- Capital Flight Concerns: There is apprehension that high taxation on the wealthy could lead to capital outflows, as individuals may relocate their assets or themselves to countries with lower tax burdens. This concern is particularly pronounced in India, where the public infrastructure may not be sufficient to retain high-net-worth individuals.
- Historical Ineffectiveness: Previous implementations of wealth tax in India resulted in low collection rates (less than 1% of gross tax collections). The high cost of collection and the challenges of enforcement contributed to its abolishment in 2016-17.
- Misallocation of Resources: Critics argue that simply imposing a wealth tax does not guarantee effective use of the revenue generated. There are concerns about whether additional funds would improve sectors like education, which already face management inefficiencies.
How would a wealth tax impact India’s economy and social structure?
- Economic Growth vs. Redistribution: Proponents argue that addressing inequality through a wealth tax can enhance overall economic growth by expanding opportunities for disadvantaged groups.
- However, opponents maintain that focusing on growth alone is more beneficial, suggesting that redistribution efforts may not lead to improved outcomes for the economy.
- Social Cohesion: A wealth tax could potentially foster greater social cohesion by addressing stark disparities in wealth and opportunity.
- However, if perceived as punitive or ineffective, it might exacerbate tensions between different socioeconomic groups.
- Investment Climate: A wealth tax could change how people invest in India. Some investors might hesitate because of higher costs, but if the money is used well for public services. It could improve living standards and infrastructure, making India a better place for investment over time.
Case study:
- Norway is often cited as a successful case study for wealth tax implementation. Norway imposes a wealth tax on individuals with a net worth exceeding a certain threshold, which includes various asset classes such as real estate, stocks, and bonds.
- For 2022, a new step for the state rate is introduced. For net wealth in excess of NOK 20 million (NOK 40 million for married couples), the rate is 0.4%. Thus, the maximum wealth tax rate is 1.1%.
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Way forward:
- Efficient Tax Design and Implementation: Develop a clear and transparent framework for wealth taxation to minimize evasion, ensure equitable enforcement, and balance revenue generation with economic growth.
- Focus on Public Infrastructure: Prioritize effective allocation of tax revenue to critical sectors like health and education, addressing inefficiencies to build trust and maximize social and economic benefits.
Mains question for practice:
Q “Reinstating a wealth tax in India could be a tool for reducing inequalities and funding critical public services. However, its implementation poses several economic and administrative challenges.” Critically analyse this statement in the context of India’s socio-economic landscape. (250 words) 15M
Mains PYQ:
Q Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC IAS/2019)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Wildlife protection;
Why in the News?
The Captive Elephant (Transfer or Transport) Rules contain ambiguities that could enable the illegal trade of elephants.
What are the current welfare standards for captive elephants?
- Legal Framework: Elephants are protected under the Wildlife (Protection) Act of 1972, but enforcement is weak.
- The Kerala High Court has issued directions to ensure compliance with the Kerala Captive Elephants (Management and Maintenance) Rules, 2012, yet many elephants lack proper ownership documentation, indicating illegal possession.
- Exploitation for Commercial Gain: Captive elephants are often used in religious festivals and tourism, which the Kerala High Court described as “commercial exploitation” devoid of concern for their well-being.
- This exploitation is exacerbated by the competitive nature of temple festivals where the number of elephants paraded is prioritized over their welfare.
- Physical and Psychological Impact: Captive elephants endure harsh conditions, including inadequate diets, lack of proper medical care, and exposure to stressful environments during festivals.
- Mortality rates among captive elephants due to these factors is approximately 33% of recorded captive elephants in Kerala died between 2018 and 2024.
What are the Kerala Captive Elephants (Management and Maintenance) Rules, 2012?
- The rules for captive elephants mandate age-based definitions, housing space standards, nutritional requirements (e.g., 250 kg fodder for adults), regular health monitoring, and restrictions on using elephants in the musth.
- A management committee oversees implementation, ensuring welfare through multi-department collaboration, including forestry, veterinary, and animal welfare representatives.
What are the ambiguities in the Captive Elephant (Transfer or Transport) Rules?
The Captive Elephant (Transfer or Transport) Rules, 2024, introduced by the Ministry of Environment, Forests and Climate Change (MoEFCC), aim to regulate the movement of captive elephants within and between states in India. However, these rules contain several ambiguities that raise concerns among animal rights activists and experts regarding their potential misuse
- Ambiguity in Transfer Rules: Vague criteria for elephant transfers, such as inadequate care or potential for better maintenance, risk enabling unauthorized sales disguised as legitimate transactions.
- Ownership Transfer Oversight: Shifting application responsibility to the deputy conservator of forests, instead of the CWW, weakens protections and facilitates improper transfers, potentially treating elephants as movable assets.
- Transport Justification Gap: The absence of a requirement to justify temporary interstate transport allows leasing or renting of elephants, further commodifying and jeopardizing their welfare.
- Weak Genetic Profiling: Despite mandates for recording genetic profiles, lax monitoring can enable illegal captures to be misrepresented as legitimate ownership.
- Database Deficiency: The lack of a national database tracking ownership and genetic details of captive elephants hampers regulation and increases the risk of illegal transfers.
- Inadequate Exploitation Safeguards: The rules fail to sufficiently prevent the commercial use of elephants in religious events or entertainment, incentivizing wild captures under false pretences.
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How do captivity conditions affect the physical and psychological well-being of elephants?
- Physical Health: Elephants in captivity often suffer from malnutrition due to a poor diet that lacks the variety available in the wild. For instance, some are only fed glucose-rich fodder instead of a balanced diet.
- Psychological Well-being: The social nature of elephants means that isolation and abusive training methods can lead to severe psychological distress. The use of capture belts and other coercive training devices has been criticized for causing both physical and emotional harm.
- High Incidence of Distress: Anecdotal evidence suggests that captive elephants frequently exhibit signs of distress, including aggressive behavior or attempts to escape, which can endanger both themselves and surrounding humans.
What reforms are necessary to improve the management and care of captive elephants? (Way forward)
- Strengthening Regulation: There is a need for clearer regulations to prevent the commercial exploitation of elephants. The current rules allow for ownership transfers without prohibiting commercial transactions, which could facilitate illegal wildlife trade.
- Implementation of Humane Practices: Mandating humane birth control measures and prohibiting the use of live elephants in entertainment could help reduce the number entering captivity.
- Alternatives like electronic simulations could replace live elephants in religious ceremonies.
- Monitoring and Accountability: The rules should require post-mortem examinations for deceased elephants during transfers to ensure accountability.
- Stakeholder Engagement: Collaborative efforts involving civil society, government bodies, and NGOs are essential to develop comprehensive guidelines that prioritize elephant welfare over commercial interests.
Mains question for practice:
Q Discuss the ambiguities in the Captive Elephant (Transfer or Transport) Rules, 2024 and suggest reforms needed to address these issues. (250 words) 15M
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Upper Siang; Brahmaputra River; Three Gorges Dam
Why in the News?
China has announced the construction of world’s largest dam on the Brahmaputra River (known as Yarlung Zangbo in Tibet), sparking concerns in India and Bangladesh, the lower riparian states.
About the Dam
- This project is part of China’s 14th Five-Year Plan (2021-2025) and its long-term development strategy through 2035.
- The dam will be constructed in the lower reaches of the Yarlung Zangbo River in Tibet, near the Indian border.
- It is situated at a massive gorge in the Himalayas, where the river takes a U-turn to flow into Arunachal Pradesh and then to Bangladesh.
- Its investment exceeds $137 billion, dwarfing any other infrastructure project, including China’s Three Gorges Dam.
| Three Gorges Dam: It is a hydroelectric gravity dam that spans the Yangtze River near Sandouping in Yiling District, Yichang, Hubei province, central China, downstream of the Three Gorges. |
What are the concerns associated with the Dam Construction?
- Geopolitical Control: China’s ability to regulate water flow raises fears of disruption and misuse during conflicts.
- Environmental Impact: Risks to biodiversity, sediment flow, and downstream ecosystems in a fragile Himalayan zone.
- Seismic Hazards: The dam’s location on a tectonic plate boundary increases earthquake risks.
- Livelihood Disruption: Potential harm to agriculture, fishing, and local communities dependent on the river.
- Transparency Issues: Limited data sharing and unilateral decisions heighten distrust among riparian states.
PYQ:
[2011] The Brahmaputra, Irrawady and Mekong rivers originate in Tibet and flow it through narrow and parallel mountain ranges in their upper reaches. Of these rivers, Brahmaputra makes a “U” turn in its course to flow into India. This “U” turn is due to:
(a) Uplift of folded Himalayan series
(b) Syntaxial bending of geologically young Himalayas
(c) Geo-tectonic disturbance in the tertiary folded mountain chains
(d) Both (A) and (B) above |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: LLDCs mapping
Why in the News?
The United Nations General Assembly (UNGA) adopted a 10-Year Action Plan for Landlocked Developing Countries (LLDCs), aiming to address their unique challenges.
Key Targets of the 10-Year Action Plan for LLDCs (2024–2034):
The Programme of Action for LLDCs aims to address their unique challenges through targeted actions across 5 priority areas:
- Structural Transformation and Innovation:
- Promote economic diversification and industrialization.
- Advance science, technology, and innovation to enhance productivity and competitiveness.
- Trade Facilitation and Regional Integration:
- Simplify and enhance trade processes to improve access to global markets.
- Strengthen participation in regional and global trade agreements.
- Reduce trade costs through better policies and infrastructure.
- Transit, Transport, and Connectivity:
- Develop and modernize transit infrastructure, such as roads, railways, and ports.
- Improve connectivity to reduce dependence on neighboring countries.
- Enhance customs procedures to ensure smoother transit of goods.
- Resilience to Climate Change and Disasters:
- Build adaptive capacities to address vulnerabilities caused by climate change.
- Develop strategies to reduce disaster risks and mitigate environmental challenges.
- Means of Implementation:
- Mobilize financial resources, technical assistance, and international support.
- Foster partnerships among governments, international organizations, and private sectors.
What Are Landlocked Developing Countries (LLDCs)?
- LLDCs are nations that lack access to a coastline and are surrounded by neighboring countries.
- Currently, there are 32 LLDCs, primarily in Africa, Asia, Europe, and South America.
- List of LLDCs:
- Africa: Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Eswatini, Ethiopia, Lesotho, Malawi, Mali, Niger, Rwanda, South Sudan, Uganda, Zambia, Zimbabwe.
- Asia: Afghanistan, Bhutan, Kazakhstan, Kyrgyzstan, Lao People’s Democratic Republic, Mongolia, Nepal, Tajikistan, Turkmenistan, Uzbekistan.
- Europe: Armenia, Azerbaijan, North Macedonia, Moldova, Serbia.
- South America: Bolivia, Paraguay.
- Challenges Faced by LLDCs:
- High Trade Costs: LLDCs face 1.4 times higher trade costs than coastal nations due to dependence on neighboring countries for transit and lengthy customs procedures.
- Limited Market Access: Lack of direct access to global markets restricts their ability to compete internationally and increases transportation costs.
- Infrastructure Deficits: Poor road, rail, and communication networks hinder connectivity and efficient trade operations.
- Climate Vulnerability: LLDCs are highly susceptible to climate change impacts like droughts and floods, with limited resources to mitigate risks.
- Economic and Political Dependence: Over-reliance on transit countries for trade routes leads to geopolitical challenges and limits economic diversification.
PYQ:
[2011] Regarding the International Monetary Fund, which one of the following statements is correct?
(a) It can grant loans to any country
(b) It can grant loans to only developed countries
(c) It grants loans to only member countries
(d) None of these |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UN Convention against Cybercrime
Why in the News?
The United Nations General Assembly (UNGA) has adopted a legally binding treaty on cybercrime, marking the culmination of a five-year effort by Member States. This is the first international criminal justice treaty negotiated in over 20 years.
UN Convention against Cybercrime: Important Facts
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Details |
| About |
- A legally binding treaty adopted by the United Nations General Assembly (UNGA) in December 2024 to combat cybercrime globally.
- Objective: Prevent and combat cybercrime, enhance international cooperation, and protect human rights in cyberspace.
- Adoption and Signing: Finalized after five years of negotiations and unanimously adopted by all 193 UN member states. The signing ceremony is scheduled for 2025 in Hanoi, Vietnam.
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| Key Provisions |
- Addressing Cybercrime: Targets crimes like terrorism, human trafficking, financial fraud, drug smuggling, and data theft via ICT platforms.
- Victim-Centric Approach: Focuses on protecting victims, particularly vulnerable groups, and ensuring justice.
- International Cooperation: Promotes evidence-sharing, joint investigations, and capacity-building among Member States.
- Safeguarding Human Rights: Balances cybersecurity needs with the protection of freedom of expression, privacy, and access to information.
- Adaptability: Allows for additional protocols to address emerging cyber threats.
- Capacity-Building: Provides support for developing cybercrime legislation, building infrastructure, and enhancing law enforcement capabilities.
- 7. Public Awareness: Encourages global education campaigns and proactive measures to prevent cyber offenses.
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| Significance |
- Landmark in International Law: The first international criminal justice treaty in over 20 years, symbolizing a universal commitment to cybersecurity..
- Strengthening Cybersecurity: Provides tools and mechanisms to mitigate ICT-enabled threats affecting global security and economies.
- Protecting Vulnerable Groups: Prioritizes justice and protection for marginalized communities impacted by online crimes.
- Economic and Social Benefits: Protects global economies, promotes investment in cybersecurity infrastructure, and safeguards individuals.
- Flexibility for Future Threats: Provisions for additional protocols to adapt to challenges like AI-driven cyber threats.
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PYQ:
[2022] What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Greenland
Why in the News?
US President-elect Donald Trump has once again expressed interest in buying Greenland, and Greenland has again stated it is not for sale.
Why is the US so much interested in Greenland?
- Greenland is strategically located in the North Atlantic Ocean, between Europe and North America, and across the Baffin Bay from Canada.
- The US maintains a large air base in Greenland, the Pituffik Space Base (formerly Thule Air Base).
- From here, the US can monitor and counter missile threats from Russia, China, and North Korea.
- Greenland is abundant in rare earth minerals, critical for manufacturing electronics, electric vehicles, and weapons.
- Melting ice caps due to global warming are opening new shipping routes in the Arctic.
- Greenland’s position is crucial for controlling these waterways, with the US seeking to limit Russian and Chinese influence in the region.
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Greenland: Everything you need to know
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Details |
| About |
- World’s largest island, located in the North Atlantic Ocean between Europe and North America; part of the Kingdom of Denmark.
- An autonomous territory within Denmark, managing domestic affairs, while Denmark oversees defense, foreign policy, and some economic matters.
- Population: ~57,000, primarily Inuit communities, concentrated along the coast.
- Transitioned from a Danish colony to self-rule in 1979, gaining further autonomy in 2009.
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| Geographical Features |
- Covers 2.16 million square kilometers, with ~80% under the Greenland Ice Sheet, a critical focus for studying climate change and sea-level rise.
- Predominantly Arctic climate, with freezing temperatures most of the year; milder summers in the southern coastal areas.
- Rich in rare earth minerals, iron ore, zinc, lead, and uranium, making it geopolitically significant.
- Banned uranium mining in 2021 for environmental reasons.
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| Political Features |
- Has its own parliament (Inatsisartut) and prime minister overseeing domestic policies; Denmark controls foreign relations and defense.
- Closely tied to Denmark, with Danish subsidies accounting for ~60% of Greenland’s budget.
- Some political groups advocate for full independence, though economic dependence complicates this goal.
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PYQ:
[2014] Consider the following countries :
- Denmark
- Japan
- Russian Federation
- United Kingdom
- United States of America
Which of the above are the members of the ‘Arctic Council ‘?
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 4 and 5
(d) 1, 3 and 5 |
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