Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sarayu River
Mains level: River interlinking and associated issues
PM will inaugurate the Saryu Nahar National Project.
Saryu Nahar National Project
- The Project involves the interlinking of five rivers – Ghaghara, Saryu, Rapti, Banganga and Rohini to ensure optimum usage of water resources of the region.
- It will benefit nine districts of Eastern Uttar Pradesh namely – Bahraich, Shravasti, Balrampur, Gonda, Siddharthnagar, Basti, Sant Kabir Nagar, Gorakhpur and Maharajganj.
- The sub canals with a length of 6,600km have been linked to the 318km main canal.
- The work on the project started in 1978 but due to lack of continuity, it got delayed and was not completed even after nearly four decades.
Benefits offered
- The project will provide assured water for irrigation of over 14 lakh hectares of land and benefit about 29 lakh farmers of over 6200 villages.
- The farmers of the region, who were the worst sufferers of the inordinate delay in the project, will now immensely benefit from the upgraded irrigation potential.
- They will now be able to grow crops on a larger scale and maximize the agri-potential of the region.
Back2Basics: Sarayu River
- The Sarayu is a river that originates at a ridge south of Nanda Kot mountain in Bageshwar district in Uttarakhand.
- It flows through Kapkot, Bageshwar, and Seraghat towns before discharging into the Sharda River at Pancheshwar at the India—Nepal border.
- Lower Ghaghara is also popularly known as Sarayu in India.
- Especially while it flows through the city of Ayodhya, the birthplace of legendary Rama.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Issues related to use of AFSPA
Context
The death of civilians in Nagaland in a security operation has revived the debate about AFSPA.
Demand for repeal of AFSPA
- Some years ago, all the northeastern states had come together to demand the annulment of this Act.
- That remained in the realm of yet another “demand”.
- In 1997, after Nagaland’s most enduring insurgent outfit, the National Socialist Council of Nagalim (NSCN), led by Isak Swu and T H Muivah, first decided to talk peace with the Indian government, the Naga Peoples’ Movement for Human Rights (NPMHR) had approached the Supreme Court for revocation of the Act.
- Enabling legislation: The apex court had then upheld its constitutionality and said it was an enabling legislation that confers minimum powers on the army to operate in situations of widespread internal disorder.
Way forward
- Talk to the other groups: Many are wondering if the peace talks between the NSCN (IM) and the government of India now lie in tatters.
- The media has focussed exclusively on the NSCN (IM) and ignored the other Naga National Political Groups (NNPGs), who have been brought on board because they are Nagaland-based and speak exclusively for Nagaland.
- The NNPGs and the Gaon Bura Association of Nagaland doubt NSCN(IM)’s ability to bring lasting peace in Nagaland.
- Since 2015, the Nagaland Gaon Bura Association, the apex body of Nagas which includes all the 16 recognised tribes and the NNPGs barring the NSCN (IM), have sent several memorandums to the government.
- These representatives of the Naga people do not demand a separate flag or constitution because they understand these are tenuous demands.
- These groups have also never raised the sovereignty issue.
- The working committee of the seven NNPGs, roped in to join the peace talks, are also opposed to the idea of changing interlocutors as and when the NSCN (IM) decides.
- Reconsider use of AFSPA: There is a need to reconsider the use of the army and AFSPA when killings have reduced considerably.
- The apex body has specifically mentioned that they want to be delivered from the gun culture.
- Check the misuse of FMR: Countering insurgency in the Northeast is fraught also because of the Free Movement Regime (FMR) between India and Myanmar.
Conclusion
The government need to reconsider the use of AFSPA and also focus on other measures to ensure peace and stability in these regions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Suspension of MPs
Context
Twelve members of the Rajya Sabha were suspended for their alleged involvement in the grave disorder in the House on the last day of the previous session.
What do Rajya Sabha’s rules of procedure say about the suspension of a member?
- Rule 256 of Rajya Sabha’s rules of procedure provides for the suspension of a member who disregards the authority of the chair or abuses the rules of the council by persistently and willfully obstructing the business of the House.
- Persistent and willful obstruction of the business of the House is the crux of the offence.
- What is the maximum period of suspension? Suspension can be for a period not exceeding the remainder of the session.
- This would mean that if the member is suspended on the last day of the session, the period of suspension will be only a day.
- So, even if a government would like to suspend such a member for a longer period. it would not be possible under the present rule.
- Unless the House itself revokes the suspension nothing can be done about it.
- The decision of the House is final.
- Every legislature has the power to suspend its members if they cause disorder and obstruct the business of the House.
- But the rule of suspension is rarely invoked in parliaments in mature democracies.
Whether the existing rules permit such a course of action?
- Rule 256 says that the chairman may, if he deems it necessary, name a member who either disregards the authority of the chair or abuses the rules of the House by persistently and willfully obstructing the business of the House.
- Sub Rule 2 of this rule is of very great importance in the context of the main question, namely, whether a member can be suspended in the next session for creating disorder in the previous session.
- No adjournment is allowed: It clearly says no adjournment is allowed, which means the matter of suspension cannot be adjourned to a later period.
- It needs to be decided then and there.
- A member who abuses the rules of the House by persistently and willfully obstructing its business needs to be punished swiftly.
- No adjournment is allowed at all.
The powers of the House to regulate its internal matters
- It can be said that the rule under which the members were suspended does not actually permit it.
- Absolute power to interpret rule: The House is supreme in these matters and the chair has absolute powers to interpret the rules.
- The judiciary has time and again clarified that the House has absolute powers to regulate its internal matters.
- Suspension of a member is such a matter.
- The judiciary will intervene only when a patently unconstitutional act is done by the House.
Conclusion
The solution to disruptions does not lie in suspension. That is the lesson we should learn from past experience.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Cancer related fatality in India
Tobacco use is known to be a major risk factor for several non-communicable diseases in India.
Tobacco abuse in India
- In India, 28.6% of adults above 15 years and 8.5% of students aged 13-15 years use tobacco in some form or the other.
- This makes the country the second-largest consumer of tobacco in the world.
Concern: No action against Tobacco
- India bears an annual economic burden of over ₹1, 77,340 crores on account of tobacco use.
- There has been no major increase in taxation of tobacco products to discourage the consumption of tobacco in the past four years since the introduction of GST.
- Only in 2020-21, the Union Budget had the effect of increasing the average price of cigarettes by about 5%.
- Yet, the excise duty on tobacco in India continues to remain extremely low.
A worrying trend
- No increase in tax: The absence of an increase in tax means more profits for the tobacco industry and more tax revenue foregone for the government.
- Revenue losses: This revenue could have easily been utilized during the COVID-19 pandemic.
- Losses due to GST: There has been a 3% real decline in GST revenues from tobacco products in each of the past two financial years.
Present governance of Tobacco
- GST slab: Tobacco at present is a highly taxed commodity. It is kept in the 28% GST slab (other than for tobacco leaves which is taxed at 5%).
- Heavy cess: Tobacco and its various forms are also subject to a heavy burden of cess, given that the commodity is seen as a sin good.
- Statutory warning: The government also uses pictures of cancer patients on the packages of cigarettes to discourage its use.
Federal issues
- Excise taxes on many tobacco products used to be regularly raised in the annual Union Budgets before the GST.
- Similarly, several State governments used to regularly raise value-added tax (VAT) on tobacco products.
- During the five years before the introduction of the GST, most State governments had moved from having a low VAT regime on tobacco products to having a high VAT regime.
Implication of such policies
- Increased consumption: The lack of tax increases in post-GST years might mean that some current smokers smoke more now and some non-smokers have started smoking.
- Reverse trend in decline: This could potentially lead to a reversal of the declining trend in prevalence.
- Affordability: Tobacco products are more affordable post-GST as shown in recent literature from India.
- Missing up national target: This might jeopardise India’s commitment to achieving 30% tobacco use prevalence reduction by 2025 as envisaged in the National Health Policy of 2017.
Way forward
- Several countries in the world have high excise taxes along with GST or sales tax and they are continuously being revised.
- We must adhere to the WHO recommendation for a uniform tax burden of at least 75% for each tobacco product.
- The Union government should take a considerate view of public health and significantly increase excise taxes — either basic excise duty or NCCD — on all tobacco products.
- Taxation should achieve a significant reduction in the affordability of tobacco products to reduce tobacco use prevalence and facilitate India’s march towards sustainable development goals.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: US-China Rivalry
The US Government has decided not send any official representation to the Winter Olympic Games in Beijing announcing what is being called a “diplomatic boycott” of the games.
What is a ‘diplomatic boycott’?
- A “diplomatic boycott” means no US official will be present at the Winter Olympics in Beijing.
- This stops short of a complete boycott, which would have meant the non-participation by US athletes.
- As such, the absence of official representation will not impact the games as much as an athletic boycott would have.
What led to the US boycott?
Ans. Uyghurs Genocide
- The decision was taken because of China’s gross human rights abuses and atrocities in Xinjiang.
- This is the latest clash adding to a long list of differences on trade, Taiwan, human rights and the South China Sea.
- Xinjiang Uyghurs have been sent by Chinese authorities to “re-education” camps, a network of which were constructed beginning in 2016 to house thousands of detainees.
- Beijing initially denied the existence of the camps, but subsequently claimed the centres were for “vocational training”.
Who else is ‘diplomatically boycotting’ the games?
- So far, Australia, Canada, and New Zealand have also announced that their officials will not be present at the games.
- None, however, has said their athletes will not attend, which means the games themselves are unlikely to be impacted.
- It remains to be seen if the boycott will gain traction beyond US allies and partners.
- Russian President Vladimir Putin will travel to Beijing for the opening of the Winter Olympics.
- China has been garnering support from countries in Asia, Africa and Latin America.
How is China reacting to the boycott?
- Beyond the statements decrying the “politicization” of sports, there is certainly a domestic political undercurrent to the games.
- China’s media, meanwhile, has been largely playing down the reports of the boycotts, underlining how the authorities are going all-out to ensure the games are conducted without a hurdle.
What will be the impact on US-China relations?
- Much recently, the US and Chinese Presidents committed to “responsibly” managing their growing competition amid increasing conflicts.
- Both nations called common-sense guardrails to ensure that competition does not veer into conflict.
- China emphasized the “need to treat each other as equals” and warned against “drawing ideological lines”, calling on the US “to meet its word of not seeking a ‘new Cold War’”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAA
Mains level: CAA debate
This newscard is an excerpt from the ‘Letter and Spirit’ section in the print edition of TH, which is a new column that will focus on explaining and understanding basic Acts and Articles enshrined in our Constitution.
Context
- With the contentious farm laws repealed, the discussions turn to the second most politically and legally resisted legislation of recent times, The Citizenship (Amendment) Act, 2019.
- The citizenship question finds its retro-reflection in the Constituent Assembly debates which serve as the undeniable autobiography of India’s basic law.
Debate over CAA, yet again
- CAA asserts that only people belonging to some faiths are victims of persecution and violence and the doors of the country can be legitimately shut to any other instance of persecution and ethnic violence.
A ‘headache’ for the Drafting Committee
- The citizenship question had been one of the most difficult tasks confronted by the drafting committee as admitted by Dr B.R.Ambedkar.
- He moved a set of consolidated amendments to the citizenship provisions of the original draft.
- He said that the task had given the drafting committee “such a headache” and multiple “drafts were prepared” and “destroyed” before arriving at a consensus.
The critics
- The draft did not satisfy all but to the most due to its secular and liberal provisions.
- It was fiercely contested on the floor of the Constituent Assembly on religious, ethnic and hyper-nationalistic considerations.
- The Article 5 of the draft constitution was criticized for its lack of exclusive and preferential provisions on religious lines regarding the declaration as to who shall be the citizen of India during commencement of the Constitution.
- Then Article 5A (today’s Article 7 of the Constitution) sought to grant citizenship rights to the migrants of Pakistan who had returned to India under a permit for resettlement granted by Indian authorities.
The ‘Jus Soli’ Principle
- This principle is premised on the automatic grant of citizenship based on the place of birth provided the person is domiciled in India, qualifying it with religious identity.
- It was in fact a proposal to ingrain religion into the bedrock of the Constitution.
- Dr P.S.Deshmukh from the Central Provinces and Berar proposed changes to Article 5 of the draft by proposing to replace the universally honoured “jus soli” principle by qualifying it with a religion.
- He went on to state that every person who is a Hindu or a Sikh by religion and is not a citizen of any other State, wherever he resides shall be entitled to be a citizen of India.
Issue over indiscriminate grant of citizenship
- The concern of Dr. Deshmukh justifying the exclusion of people belonging to other religions, as echoed in his question- Is it then wise that we should throw opens our citizenship so indiscriminately?
- It found fraternal support from members who opined that Hindus and Sikhs have no other home but India.
- This finds its resonance today in the presumptive base of the CAA.
The defenders
- Some highlighted the fact of panic driven migration without certain intention to settle down in Pakistan was left unanswered with precision.
- Some retorted that mentioning the name of some communities will make other communities feel that they were being ignored.
What did Nehru opine?
- Nehru stated that we cannot have rules for Hindus, for Muslims and for Christians only.
- He stressed upon the possibility of the second wave of migration including non-Hindus and non-Sikhs who were part of the first wave influx.
- Hence, in his view, foreclosing the doors fearing the influx of some may deprive others of exercising their choice.
Ambedkar on Pakistan returnees
- Ambedkar clarified that the principal thrust of Article 5A was to declare that persons who migrated to Pakistan after 1st of March 1947 due to internal disturbances.
- He declared that some migrants from Pakistan were allowed to return on the basis of the agreements between both the Governments and on the basis of an ordinance promulgated.
Conclusion
- The Constituent Assembly debates on citizenship showed that in the rousing of sentiments of ethnicity and distrust, sagacity had an upper hand, leading to the saner denouement of toleration.
- History is known to set examples.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Non-convertible Debentures
Mains level: Not Much
Several companies have announced public issues to raise funds through non-convertible debentures.
What are Debentures?
- Debentures are long-term financial instruments issued by a company for specified tenure with a promise to pay fixed interest to the investor.
- They can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.
- Their types include:
- Convertible debentures (CDs): They are a type of debentures that can be converted into equity shares of the company.
- Non-convertible debentures (NCDs): They are defined as the type of debentures that cannot be converted into equity shares of the company.
What are NCDs?
- Some debentures have a feature of convertibility into shares after a certain point of time at the discretion of the owner.
- The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).
- They are debt financial instruments that companies use to raise medium- to long-term capital.
Benefits offered by NCDs
- At a time when fixed deposit rates are in low single digits, these NCD offerings look lucrative.
- NCDs offer interest rates between 8.25–9.7%.
Risks posed
- Although NCDs are generally considered safe fixed-income instruments, some recent defaults have made investors cautious.
- NCDs can be either secured by the issuer company’s assets, or unsecured.
- Certain issuers, with credit rating below investment grade, had in the past issued both a secured NCD and another unsecured one through the same offer document, with different credit ratings.
- The risk is high in the case of unsecured NCDs, even though they offer high-interest rates.
- Credit rating of the issuer is a key factor to consider before investing in any NCD.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Health Security Index, 2021
Mains level: Health security
Countries across all income levels remain dangerously unprepared to meet future epidemic and pandemic threats, according to the new 2021 Global Health Security (GHS) Index.
About GHS Index
- The GHS Index is the first comprehensive assessment and benchmarking of health security and related capabilities across the 195 countries that make up the States Parties to the International Health Regulations.
- It is a project of the Johns Hopkins Centre for Health Security, the Nuclear Threat Initiative (NTI) and the Economist Intelligence Unit (EIU) and was first launched in October 2019.
- It assesses countries across 6 categories, 37 indicators, and 171 questions using publicly available information.
- It benchmarks health security in the context of other factors critical to fighting outbreaks, such as political and security risks, the broader strength of the health system, and country adherence to global norms.
Parameters assessed
The report is based on a questionnaire of 140 questions, organized across 6 categories, 34 indicators, and 85 sub-indicators. The six categories are:
- Prevention: Prevention of the emergence or release of pathogens
- Detection and Reporting: Early detection and reporting for epidemics of potential international concern
- Rapid Response: Rapid response to and mitigation of the spread of an epidemic
- Health System: Sufficient and robust health system to treat the sick and protect health workers
- Compliance with International Norms: Commitments to improving national capacity, financing plans to address gaps, and adhering to global norms
- Risk Environment: Overall risk environment and country vulnerability to biological threats
Global performance
- In 2021, no country scored in the top tier of rankings and no country scored above 75.9, the report showed.
- The world’s overall performance on the GHS Index score slipped to 38.9 (out of 100) in 2021, from a score of 40.2 in the GHS Index, 2019.
- This, even as infectious diseases are expected to have the greatest impact on the global economy in the next decade.
- Some 101 countries high-, middle- and low-income countries, including India, have slipped in performance since 2019.
Indian scenario
- India, with a score of 42.8 (out of 100) too, has slipped by 0.8 points since 2019.
- Three neighboring countries — Bangladesh, Sri Lanka and Maldives — have improved their score by 1-1.2 points.
Conclusion
- Health emergencies demand a robust public health infrastructure with effective governance.
- The trust in government, which has been a key factor associated with success in countries’ responses to COVID-19, is low and decreasing, the index noted.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: AFSPA
Mains level: Paper 2- Repealing AFSPA
Context
The killing of 14 civilians in Nagaland in a security operation has sparked debate over the Armed Forces Special Powers Act (AFSPA).
Case for repeal of AFSPA
- The repeal of AFSPA is necessary not just for restoring constitutional sanity, but also as a way of acknowledging dark history of our conduct in Nagaland.
- If the moral case for repealing AFSPA is strong, the political case points in the same direction as well.
- Need for ensuring individual dignity: The political incorporation of Nagaland (and all other areas where this law applies) will be set back if the guarantees of individual dignity of the Indian Constitution are not extended.
- Not state of exception: We often describe AFSPA in terms of a “state of exception”.
- But this theoretical term is misleading. How can a law that has been in virtually continuous existence since 1958 be described as an “exception”.
Why AFSPA is counterproductive to Army
- Distortion of choice: First, giving wide immunity to the forces can distort the choice of strategy in counter insurgency operations.
- Reduce professionalism: Second, wider immunity can often reduce rather than increase the professionalism of the forces.
- Against federalism: Third, we are constantly in the vicious circle that leads to central dominance in a way that undermines both Indian federalism and operational efficiency.
Powers and limits under AFSPA
- The Act grants extraordinarily sweeping powers to the armed forces of search, seizure, arrest, the right to shoot to kill.
- No blanket immunity: It is true that AFSPA does not grant blanket immunity.
- The SC guidelines: The Supreme Court laid down guidelines for the use of AFSPA in 1997; and in principle, unprofessional conduct, crimes and atrocities can still be prosecuted.
- But this will run into two difficulties.
- Lack of accountability mechanism: As the Jeevan Reddy Committee that advocated the repeal of AFSPA pointed out, the accountability mechanisms internal to AFSPA have not worked.
- In 2017, the Supreme Court ordered a probe into 1,528 extra-judicial killings in Manipur.
- At the least, this order seemed to suggest the problems with AFSPA were systemic.
- But there have apparently been no hearings in this case for three years.
- Lack of human empathy: At the heart of AFSPA is a profound mutilation of human empathy.
- Our discourse is a rather abstract one, balancing concepts of human rights and national security.
Conclusion
It is high time that all parties come together to repeal AFSPA. It will also be in the fitness of things if all parties got together to acknowledge the trauma in Nagaland and elsewhere. This will strengthen, not weaken, the comatose Indian constitutional project.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Monetary policy corridor
Mains level: Paper 3- Monetary policy normalisation and challenges involved in it
Context
Monetary Policy Committee (MPC) voted to maintain status quo on policy rates, with one member continuing to dissent on the “accommodative” stance of policy.
What is accommodative stance of policy?
Accommodative monetary policy is when central banks expand the money supply to boost the economy. Monetary policies that are considered accommodative include lowering the Federal funds rate. These measures are meant to make money less expensive to borrow and encourage more spending.
Overview of RBI policy measures during Covid-related lockdown
- Cut in policy rates and injection of liquidity: The RBI had moved proactively to cut the repo and reverse repo rate and inject unprecedented amounts of funds into banks and other intermediaries.
- The short-term interest rate at reverse repo level: a combination of the lower reverse repo rate and the large liquidity injection had resulted in a drop in various short-term rates down to (and occasionally below) the reverse repo rate, making it the effective operating rate of monetary policy.
- Gap between repo and reverse repo increased to 65 bps: In addition, both the repo and reverse repo rates had been cut to 4.0 and 3.35 per cent, respectively, with the gap – the “corridor” – between the rates widening from the usual 25 basis points to 65 bps.
Central bank’s role in modern monetary policy
- Determining basic overnight interest rate: A central bank’s main role in modern monetary policy operating procedures is to determine the basic overnight interest rate, deemed to be consistent with prevailing macroeconomic conditions and their economic policy objectives, in balancing the ecosystem for sustained growth together with moderate inflation.
- This is achieved through buying and selling very short-term (predominantly overnight) funds (mainly) from banks to keep a specified operating rate (the weighted average call rate in our case) very close to the policy rate.
Liquidity management: Key pillar of monetary policy normalisation
- Liquidity management: Liquidity management in the extended banking and financial system (which includes non-banking intermediaries like NBFCs, mutual funds and others) will now be the key pillar of normalisation.
- This process is the domain of RBI and not MPC.
- These operations will be conducted within RBI’s liquidity management framework.
- There are two sources of liquidity additions:
- (i) Exogenous: which are largely due to inflows of foreign currency funds and outflows of currency in circulation (cash) from the banking sector.
- (ii) Voluntary or endogenous: which is the result of the creation of base money by RBI through buying and selling of bonds, thereby injecting or extracting rupee funds.
How RBI is managing liquidity surplus?
- Stopped GSAP and OMOs: Post the October review, RBI had stopped buying bonds under the Govt Securities Asset Purchase (GSAP) and done negligible Open Market Operations (OMOs), thereby stopping addition of voluntary liquidity injection into the system, our own version of “tapering”.
- Union government balances with RBI, arising from cash flow mismatches between receipts and expenditures, has hybrid characteristics and also impacts liquidity.
- Use of reverse repo window: RBI has used the reverse repo window to absorb almost all this liquidity surplus from banks.
- Allowed repaying TLRTOs: It has again allowed banks the option to prepay the outstanding borrowings from the Targeted Long Term Repo Operations (TLTROs), thereby potentially extracting another Rs 70,000 crores.
How RBI is managing interest rate in the policy normalisation process
- Increased rates and closed the gap between repo and reverse repo: RBI – post the October review – has gradually guided short-term rates up with a sure hand from near the reverse repo rate to close to the repo rate.
- It has shifted its liquidity absorption operations from the predominant use of fixed rate reverse repos (FRRR) into (largely) 14-day variable rate reverse repo (VRRR) auctions to guide a rise in interest rates.
- Since early October, these rates had steadily moved up in a smooth and orderly fashion up to 3.75-3.9 per cent.
- The VRRR rates moving up have also resulted in various short-term funding interest rates like 90-day Treasury Bills, Commercial Papers (CP) and banks’ Certificates of Deposits (CD) moving up from the reverse repo rate or below in September to 3.5 per cent and higher since December.
- The OMO and GSAP operations have also helped in managing medium- and longer-term interest rates in the yield curve.
Way forward
- There is a likelihood of further additions to exogenous system liquidity.
- Other instruments to absorb surpluses: There might consequently be a need for other instruments to absorb these surpluses apart from VRRR auctions.
- Liquidity surplus of non-banking intermediaries: Managing liquidity surpluses of the non-banking intermediaries, especially mutual funds, will be another challenge since they do not have direct access to VRRR operations.
Consider the question “Since the onset of the Covid-related lockdowns, RBI had moved proactively to cut the repo and reverse repo rate and inject unprecedented amounts of funds into banks and other intermediaries. In this context, what are the challenges in monetary policy normalisation as RBI plans to absorb the excess liquidity and increase the interest rates ?”
Conclusion
The shift to the tightening phase, with hikes in the repo rate, is likely towards the late months of FY23, with shifts “if warranted by changes in the economic outlook”.
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Back2Basics: Monetary Policy Corridor
- The Corridor in monetary policy of the RBI refers to the area between the reverse repo rate and the MSF rate.
- Reverse repo rate will be the lowest of the policy rates whereas Marginal Standing Facility is something like an upper ceiling with a higher rate than the repo rate.
- The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ken-Betwa Interlinking Project
Mains level: River interlinking and associated issues
The Union Cabinet has approved the funding and implementation of the Ken-Betwa river interlinking project at the 2020-21 price level.
Ken-Betwa Interlinking Project
- The Ken-Betwa Link Project is the first project under the National Perspective Plan for the interlinking of rivers.
- Under this project, water from the Ken River will be transferred to the Betwa River. Both these rivers are tributaries of the river Yamuna.
- The project is being managed by India’s National Water Development Agency (NWDA), under the Ministry of Jal Shakti.
- Implementation of the project
- Phase-I: Daudhan dam complex and its appurtenances like Low Level Tunnel, High Level Tunnel, Ken-Betwa link canal and Power houses
- Phase-II: Lower Orr dam, Bina complex project and Kotha Barrage
Utility of the Project
- Irrigation: The project is slated to irrigate 10.62 lakh hectares annually, provide drinking water supply to 62 lakh people and generate 103 MW of hydropower and 27 MW of solar power.
- Water supply: The project will be of immense benefit to the water-starved Bundelkhand region, spread across Madhya Pradesh and Uttar Pradesh.
- Agricultural boost: The project is expected to boost socio-economic prosperity in the backward Bundelkhand region on account of increased agricultural activities and employment generation.
- Addressing Rural Distress: It would also help in arresting distress migration from this region.
Many hurdles
- Submergence of critical wildlife habitat: The project will partly submerge the Panna Tiger Reserve in Madhya Pradesh and affect the habitat of vultures and jackals.
- Clearance: After years of protests, it was finally cleared by the apex wildlife regulator, the National Board for Wildlife, in 2016.
- Water sharing disputes: Then UP and MP could not agree on how water would be shared, particularly in the non-monsoonal months.
Back2Basics: River Interlinking in India
History
- The idea of interlinking of rivers in the Indian subcontinent is atleast 150 years old.
- During the British Raj in India, Sir Arthur Cotton, a British general and irrigation engineer, first suggested linking the Ganga and the Cauvery for navigational purposes.
- K.L. Rao’s Proposal (1972), which had 2640 km long Ganga – Cauvery link as its main component involved large scale pumping over a head of 550 m.
- The Central Water Commission, which examined the proposal, found it to be grossly under estimated and economically prohibitive.
Capt. Dastur Proposal (1977)
It envisaged the construction of two canals:
- 4200 km Himalayan Canal at the foot of Himalayan slopes running from the Ravi in the West to the Brahmaputra and beyond in the east
- 9300 km Garland Canal covering the central and southern parts
Beginning of implementation
- The Indian Rivers Inter-link aims to link India’s rivers by a network of reservoirs and canals and so reduce persistent floods in some parts and water shortages in other parts of India.
- The idea to link rivers got a shot in the arm with the establishment of the National Water Development Agency in 1982 by then PM Indira Gandhi.
- The Inter-link project was split into three parts:
- Northern Himalayan rivers inter-link component
- Southern Peninsular component
- Intrastate rivers linking component
Objectives of inter-linking
- Connect the Himalayan and peninsular rivers via a network of canals so that
- Excess water from one channel can be diverted to another which has an inadequate flow
- Flood moderation in the Ganga-Brahmaputra system
- Hydropower generation through excess water
Prospects of River inter-linking
- Engineering challenges: This is one of the most daring feats of engineering attempted in the history of mankind.
- Ecosystem challenges: It is a reimagining of the entire aquatic ecosystem of a country as large and diverse as India.
Advantages offered by river inter-linking
- Flood control and mitigation: Problems related to flood control, irrigation, limiting droughts and boosting farm output—can be sorted out by linking the country’s rivers.
- Economic boost: Potential benefits to transport infrastructure through navigation, as well as to broadening income sources in rural areas through fish farming.
Issues with such projects
- Migration: It will lead to massive displacement of people
- Topography change: Since the Ganga basin topography is flat, building dams would not substantially add to river flows.
- Inundation: The transfer of such enormous amounts of water will inundate forests and land for reservoirs.
- Seismic hazards: The weight of billions of liters of water can have seismic implications in the Himalayan region.
- Financial expense: River inter-linking is an expensive business from building the link canals to the monitoring and maintenance infrastructure.
- Political will: Implementation of the project not only needs a huge financial capital but also political support both is scarce commodities as of now.
- Consensus building for land acquisition: Another important issue is building consensus among states and Land acquisition.
- Ecological feasibility: Once the project is implemented it would lead to large-scale displacement of people and animals.
Criticisms of such projects
- Bad Science: Such projects are built on bad science and an outdated understanding of water systems and water management.
- Human determinism: Such projects go in contravention with natural process thereby generating more scope for threat than any opportunity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Law Commission of India
Mains level: Role of Law Commission in Legal Reforms
The Government has informed the Supreme Court that the appointment of Chairperson and Members of the 22nd Law Commission of India is under consideration.
Why in news?
- The setting up of the 22nd Law Commission was constituted by the Government on February 21, 2020.
- However, no progress has been made in the appointments till date.
- The Government invoked the ‘doctrine of separation of power’, which says that one arm of governance should not encroach into that of another.
Issues over appointment
- The last chairman of the law commission was retired Supreme Court judge, Justice B.S. Chauhan, who completed his tenure on 31 August 2018.
- Subsequently, the Commission has not been reconstituted.
- In February 2020, the Government of India announced its intention to reconstitute the Commission with no visible progress.
About Law Commission
- Law Commission of India is a currently-defunct executive body established by an order of the Government of India.
- The Commission’s function is to research and advise the GoI on legal reform, and is composed of legal experts, and headed by a retired judge.
- The commission is established for a fixed tenure and works as an advisory body to the Ministry of Law and Justice.
- The last chairman of the Commission retired in August 2018, and since then, it has not been reconstituted.
Colonial Background
- The first Law Commission was established during colonial rule in India, by the East India Company under the Charter Act of 1833.
- It was then presided by Lord Macaulay.
- After that, three more Commissions were established in pre-independent India.
Post-Independence functioning
- The first Law Commission of independent India was established in 1955 for a three-year term.
- Since then, twenty-one more Commissions have been established.
Major reforms undertaken
- The First Law Commission under Macaulay Itsuggested various enactments to the British Government, most of which were passed and enacted and are still in force in India.
- These include the Indian Penal Code (first submitted in 1837 but enacted in 1860 and still in force), Criminal Procedure Code (enacted in 1898, repealed and succeeded by the Criminal Procedure Code of 1973), etc.
- Thereafter three more Law Commissions were established which made a number of other recommendations the Indian Evidence Act (1872) and Indian Contract Act (1872), etc. being some of the significant ones.
Role in legal reforms
The Law Commission has been a key to law reform in India.
- Its role has been both advisory and critical of the government’s policies
- In a number of decisions, the Supreme Court has referred to the work done by the commission and followed its recommendations.
- The Commission seeks to simplify procedures to curb delays and improve standards of justice.
- It also strives to promote an accountable and citizen-friendly government that is transparent and ensures the people’s right to information.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Theory of Justice
Mains level: Principle of Justice
This newscard is an excerpt of the original article published in TH.
Note: This article is of extreme theoretical nature. But it leaves scope for many vague questions for prelims as well as mains where most of us go clueless.
Two principles of Justice
- The concept, so-called, of “two principles of justice”, is synonymous with the name of John Rawls, a highly influential American liberal political philosopher of the last century.
- The concept of two principles forms an encapsulation of the core principles of:
- Freedom and equality embodied in the constitutions of any contemporary liberal democratic society
- As such, they have acquired pre-eminence in a wide range of academic disciplines and in the arena of public policymaking.
What are the two principles?
- The first of Rawls’ two principles says that every citizen has the same claim to a scheme of equal basic liberties, which must also be compatible with those of every other citizen.
- It enumerates an extensive list of basic civil and political rights, including a person’s freedom of conscience, expression and association; the right to a basic income; and the right to exercise the franchise.
- Their resonance with the practical world of politics needs no emphasis; consider the chapter on fundamental rights in any constitution.
- The second of Rawls’ two principles grapples with the underlying inequalities of social and economic institutions.
How can these be reasonably justified to free and equal citizens?
- In order to be morally defensible, the institutions must satisfy two conditions.
- First, they must guarantee fair equality of opportunities for competition to positions of public office and employment.
- Second, social and economic inequalities must be arranged in a manner that they work to the greatest benefit of the least advantaged members of society.
- This latter postulate is Rawls’ famous “difference principle”.
Significance of this principle
- The political significance of Rawls’ two principles of justice obtains equally in the relative weight and primacy he assigns to their different components.
- Between them, the first principle is accorded absolute priority over the second.
- That is to say, the primacy of the equal basic liberties of citizens is non-negotiable in a democratic society.
- The entitlement of each to the various liberties is as critical as they are universal and non-discriminatory.
- Within the second principle, the first part takes precedence over the second.
- In other words, public institutions could not appear legitimate in the eyes of citizens unless everybody could reasonably expect to enjoy the fruits of fair equality of opportunities.
Try this question from CSP 2020:
Q. One common agreement between Gandhism and Marxism is
(a) The final goal of a stateless society
(b) Class struggle
(c) Abolition of private property
(d) Economic determinism
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ambergris
Mains level: Not Much
The Crime Branch in Pune and seized 550 grams of ambergris, also known as ‘floating gold’.
What is Ambergris?
- Ambergris, which means gray amber in French, is a waxy substance that originates from the digestive system of the protected sperm whales.
- It is incorrectly referred to as ‘whale vomit’.
- It is produced in the gastrointestinal tract of some of the sperm whales for the passage of hard, sharp objects that are ingested when the whale eats large quantities of marine animals.
Why is it so expensive?
- Investigating agencies from across India who have seized ambergris in the recent past estimate its value to be somewhere between Rs 1 to 2 crores per kilogram, depending on the purity and quality.
- Being extremely rare contributes to its high demand and high price in the international market.
Its uses
- Traditionally, ambergris is used to produce perfumes that have notes of musk.
- While there are records of it being used to flavor food, alcoholic beverages and tobacco in some cultures in the past, it is rarely used for these purposes presently.
Legalities and recent cases of seizure in India
- While there is a ban on possession and trade of ambergris in countries like the USA, Australia and India, in several other countries it is a tradable commodity.
- In the Indian context, the sperm whales are a protected species under Schedule 2 of the Wildlife Protection Act, 1972 and possession or trade of any of its by-products, including Ambergris is illegal.
- It has been observed that the gangs smuggling the ambergris procure it from coastal areas and ship it to destination countries via some other countries with whom India has comparatively less stringent sea trade.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Scrutinising reduced out-of-pocket expenditure on health
Context
The National Health Accounts (NHA) report for 2017-18 is being celebrated widely as it shows that total public spending on health as a percentage of GDP has increased to a historic high of 1.35% of GDP.
India’s total public spending on health
- One of the lowest in the world: India’s total public spending on health as a percentage of GDP or in per capita terms has been one of the lowest in the world.
- Majority spent by the States: The Union government traditionally spends around a third of the total government spending whereas the majority is borne by the States.
- There has been a policy consensus for more than a decade now that public spending has to increase to at least 2.5% of GDP.
- However, there has not been any significant increase so far.
- Despite several pronouncements, it has continued to hover around 1%-1.2% of GDP.
Why NHA report is being celebrated?
- The National Health Accounts (NHA) report capture spending on health by various sources, and track the schemes through which these funds are channelised to various providers in a given time period for a given geography.
- The National Health Accounts (NHA) report for 2017-18 is being celebrated widely as it shows that total public spending on health as a percentage of GDP has increased to a historic high of 1.35% of GDP.
- The increase shown in NHA 2017-18 is largely due to increase in Union government expenditure.
- Increase in Centre’s share: For 2017-18, the Centre’s share in total public spending on health has jumped to 40.8%.
- However, if we study the spending pattern of the Ministry of Health and Family Welfare and the Ministry of AYUSH, we see that expenditure increased to 0.32% of GDP from 0.27% in 2016-17 — insufficient to explain the overall jump.
Issues with NHA report
- Expenditure of DMS included: Much of this increase has actually happened on account of a tripling of expenditure of the Defence Medical Services (DMS).
- Compared to an expenditure of ₹10,485 in 2016-17, it increased to ₹32,118 crore.
- Though the increasing spending for the health of defence personnel is a good thing, such spending does not benefit the general population.
- Within government expenditure, the share of current health expenditure has come down to 71.9% compared to 77.9% a year ago.
- Capital expenditure included: This essentially means, capital expenditure has increased, and specifically in defence.
- There is a problem in accounting capital expenditure within the NHA framework.
- Why capital expenditure needs to be left out: Equipment brought or a hospital that is built serves people for many years, so the expenditure incurred is used for the lifetime of the capital created and use does not get limited to that particular year in which expenditure is incurred.
- The World Health Organization proposes to leave out capital expenditure from health accounts estimates, instead focus on current health expenditure.
- Incomparable to other countries: In NHA estimates in India, in order to show higher public investment, capital expenditure is included; thus, Indian estimates become incomparable to other countries.
- The NHA estimate also shows that out-of-pocket expenditure as a share of GDP has reduced to less than half of the total health expenditure.
- NSSO 2017-18 data suggest that during this time period, utilisation of hospitalisation care has declined compared to 2014 NSSO estimates for almost all States and for various sections of society.
- Sign of distress: The decline in out-of-pocket expenditure is essentially due to a decline in utilisation of care rather than greater financial protection.
- Actually, the NSSO survey happened just after six months of demonetisation and almost at the same time when the Goods and Services Tax was introduced.
- The disastrous consequences of the dual blow of demonetisation and GST on the purchasing power of people are quite well documented.
- Another plausible explanation is linked to limitations in NSSO estimates. The NSSO fails to capture the spending pattern of the richest 5% of the population (who incur a large part of the health expenditure).
- Thus, out-of-pocket expenditure measured from the NSSO could be an under-estimate as it fails to take into account the expenditure of the richest sections.
Conclusion
The reduction of out-of-pocket expenditure is a sign of distress and a result of methodological limitations of the NSSO, rather than a sign of increased financial protection.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Impact of stubble burning
Mains level: Paper 3- Measures to stop stubble burning
Context
Every October and November, parts of north India are engulfed by a dense fog. Farmers resort to the practice due to the limited time they have between the harvesting of kharif paddy and sowing of the rabi wheat.
Government initiatives to stop the stubble burning
- Policy measures: In 2014, the Ministry of Agriculture and Farmers Welfare developed a National Policy for the Management of Crop Residue.
- Ban by NGT: In 2015, the National Green Tribunal banned stubble burning in Rajasthan, Uttar Pradesh, Delhi, Haryana and Punjab.
- Weak enforcement: The enforcement of the ban has, however, been weak, largely due to inadequate political will.
- Legal measures: Stubble burning was considered an offence under Section 188 of the Indian Penal Code and in the Air and Pollution Control Act, 1981.
- However, it has now been decriminalised as per a recent government announcement.
- The Central Scheme on Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue was introduced in 2018-19.
- Over 1.5 lakh crop residue management machineries have been supplied to farmers and custom hiring centres between 2018-19 to 2020-21.
How successful were the measures?
- As a result of these efforts, the number of crop residue burning events declined from 2016 to 2019.
- This year satellite data did show an almost 50 per cent decline in the number of stubble burning events in Punjab, Haryana and UP in October.
- However, after including burning events till November 21, the decline reduced to about 8 per cent.
- Experts suggest that the respite in October was temporary as the initial decline can be attributed to the delayed withdrawal of monsoon.
- It is thus evident that despite various government initiatives, substantial stubble burning continues in several states.
Suggestions
- Subsidise operational cost for crop residue management: To ease farmers’ financial burden, the government could consider subsidising operational costs along with providing farmers capital subsidy on crop residue management equipment.
- Ex-situ management of crop residue: Ex-situ management of crop residue can also be explored under the schemes covering products such as bales and pellets for biomass power generation and supplementary feedstock in coal-fired power plants.
- Awareness generation: Awareness generation and trust building exercises should be undertaken with the support of local civil society organisations.
- Adopt targeted and cluster-based approach: Stubble burning is fairly concentrated in regions within states.
- A targeted and cluster-based approach can be undertaken by identifying districts with a higher number of stubble burning incidents.
- Central and state government interventions can then be concentrated in these districts.
- Monitoring system at local level: To make these interventions effective, there is a requirement for formulating a robust monitoring system at the local level to track the progress of different activities.
Consider the question “Stubble burning by farmers of the adjacent states contributes significantly to the air pollution in Delhi. In this context, examine the initiatives taken by the government to deal with the problem and suggest the way forward.”
Conclusion
Dealing with the practice of stubble burning requires efforts on multiple levels. A combination of these measures can complement the existing initiatives to encourage farmers to adopt zero stubble burning practices.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various logistics agreement mentioned
Mains level: India-Russia Defense Cooperation
India and Russia are set to ink the RELOS logistics exchange pact during the visit of Russian President Vladimir Putin for the Indo-Russia summit.
What are Logistics Agreements, in general?
- Logistical exchange agreements are designed so that partner countries can enjoy ease of access to use each other’s military facilities like ports, bases, and military installations.
- Such agreements save enormous time and also frees up the need for constant paperwork when one military obtains assistance on matters like refuelling, berthing, use of aviation infrastructure, etc.
RELOS Agreement with Russia
- RELOS agreement with Russia would grant “access to Russian naval port facilities in the Arctic”, thus enhancing “Indian Navy’s reach and operational experience in Polar waters”.
Need for RELOS
- Despite growing engagement with the US on military hardware and tech, Russia remains a partner with whom India has shared traditionally deep defence ties.
- Russia’s growing proximity to China and Pakistan has of late been seen as casting a shadow on the Moscow-New Delhi engagement.
- To that extent, RELOS will be an important step forward in the military sphere as it aims at fostering interoperability and sharing of logistics.
- The “long overdue” agreement was to have come up for signing in 2019 but that was put off pending finalisation of its terms.
Strategic significance of RELOS Agreement
- Naval Cooperation: It is usually the Indian Navy, the most outgoing force of the three services, that stands to benefit the most from a logistical exchange agreement.
- Interoperability: These impart enhanced operational turnaround and strengthened interoperability on the high seas.
- Military enhancements: Given the percentage of Russian military hardware in the Indian armed forces, the two sides can take advantage, through RELOS, of increased interoperability “in any hostile situation in the future”.
- Future defence purchases: India has acquired advanced defence systems from Russia, including fighter jets, and is looking to again obtain a nuclear-powered attack submarine on a long-term lease from Moscow.
Fulfilling Arctic aspirations of India
- Navigation: From a geostrategic point of view, it would give Indian Navy better access to northern sea routes and Russian ports in the Arctic, where India is looking to set up an Arctic station.
- Energy cooperation: Russia and India are also exploring enhanced energy cooperation in the Arctic region.
- Competing China: India’s presence in Arctic will act as a strategic counterweight to China’s strategic posturing with Beijing and Moscow sharing “synergy” in the Arctic.
Does India have similar arrangements with other Countries?
- India has logistical exchange agreements with six other countries, including Quadrilateral Security Dialogue, or Quad, partners US (LEMOA), Japan and Australia.
- Singapore, France and South Korea are the other countries with which similar arrangements have been effected.
- India has become more comfortable in concluding such arrangements with other countries and is currently pursuing one with the UK while exploring arrangement with other partners like Vietnam.
Other defence trade between the two countries
- Russia continues to be among India’s biggest defence suppliers.
- The two sides are now looking to move from licence manufacture to joint research and co-development of defence equipment.
- Both nations have agreed for the manufacture of over six lakh AK-203 assault rifles by a Joint Venture, Indo-Russian Rifles Private Ltd, at Korwa, Amethi, in UP.
- Russia has started deliveries of the S-400 Triumf long-range air defence systems to India. The first division will be delivered by the end of 2021.
- There are several other big such as procurement of 21 Mig-29s and 12 Su-30MKI fighters, Igla-S short-range air defence systems and the manufacture of 200 K-226T utility helicopters.
Future trajectory of the defence cooperation
- Timely supply of spares and support to the large inventory of Russian hardware in service with Indian military has been a major issue from India.
- To address this, Russia has made legislative changes allowing its companies to set up joint ventures in India to address it following an Inter-Governmental Agreement signed in 2019.
- This is in the process of being implemented.
- With increased competition from the U.S., France, Israel and others who have bagged major deals in recent years, Russia is also focusing on timely deliveries and lifetime support.
Conclusion
- Russia will remain a key defence partner for India for decades to come.
- In line with India’s quest for self-sufficiency, such partnerships help curb the reliance of India over other countries.
- This will thereby curb India’s dependency in near future.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Ukraine-Russia Conflict
Thousands of Russian troops have been deployed to stations along Ukraine’s border, sparking fears among Western leaders and Ukraine itself that Moscow is planning an invasion
Roots of the Russia-Ukraine Conflict
Ans. USSR disintegration
- Ukraine was a part of the Russian empire for centuries before becoming a Soviet republic.
- It won independence as the USSR broke up in 1991.
- Since then, it has moved to shed its Russian imperial legacy and is in increasingly close ties with the West.
- After the Crimean annexation, both nations have signed ceasefire agreements at Minsk in 2014 and 2015.
The beginning
Ans. Separatist insurgency in Ukraine’s East (by Russian speaking population)
- In 2014, then Russian-leaning Ukrainian President Viktor Yanukovych rejected an association agreement with the European Union in favor of closer ties with Moscow.
- This sparked mass protests that led to his ouster in 2014.
- Russia responded by annexing Ukraine’s Crimean Peninsula and throwing its weight behind a separatist insurgency that broke out in Ukraine’s east.
Beginning of armed conflict
- More than 14,000 people have died in the fighting that devastated Ukraine’s eastern industrial heartland known as Donbas.
- Ukraine and the West accused Russia of sending its troops and weapons to back the rebels.
- Moscow denied that, charging that Russians who joined the separatists were volunteers.
- Earlier this year, a spike in cease-fire violations in the east and a Russian troop concentration near Ukraine fueled war fears.
Why is Russia resented over Ukraine?
- Cultural ties defying the conflict: The Russian president has repeatedly described Russians and Ukrainians as “one people” and claims that Ukraine has unfairly received historic Russian lands during Soviet times.
- Influence of the ‘West’: The Kremlin has accused Ukraine of failing to honor the 2015 peace deal and criticized the West for failing to encourage Ukrainian compliance.
- Asylum to rebels: The agreement was a diplomatic coup for Moscow, requiring Ukraine to grant broad autonomy to the rebel regions and offer a sweeping amnesty to the rebels.
- Affinity with the US and NATO: Ukraine’s aspirations to join NATO represent a red line for Moscow.
American concern over Russian build-up
- Buffer state with Russia: Ukraine is a crucial buffer between Russia and the West.
- Heavy troop deployment: Russia hasn’t provided any details about its troop numbers and locations, saying that their deployment on its own territory shouldn’t concern anyone.
- Invasion: Russia is planning to deploy an estimated 175,000 troops and almost half of them are already stationed along various points near Ukraine’s border in preparation for a possible invasion.
- Protection of its ally: Ukraine has been a close ally of the US. Hence, NATO has placed its military infrastructure closer to Russia.
Recent developments
- As it moves a large number of troops towards the border, Russia seeks assurances from the US that Ukraine will not be inducted into NATO.
- However, US President Joe Biden has made it clear that he is not prepared to give any such assurance.
- This has left the countries in a stand-off, with tens of thousands of Russian troops ready to invade Ukraine at short notice, and the West not budging on Russia’s demands.
- Experts believe that Russia is keeping the tensions high at the Ukraine border in order to get sanctions relief and other concessions from the West.
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From UPSC perspective, the following things are important :
Prelims level: Kasturirangan Committee Report
Mains level: Ecological significance of western ghats
Recently, the Karnataka CM has informed the Centre that the state is opposed to the Kasturirangan Committee report on the Western Ghats.
What is the issue?
- The Kasturirangan committee report proposes 37 per cent of the total area of Western Ghats, which is roughly 60,000 square kilometers, to be declared as eco-sensitive area (ESA).
- Declaring this would adversely affect the livelihood of people in the region, asserted the Karnataka CM.
Kasturirangan Committee Report
- The Western Ghats Ecology Expert Panel (WGEEP), also known as the Gadgil Commission after its chairman Madhav Gadgil, was an environmental research commission.
- It was appointed by the Ministry of Environment and Forests of India. The commission submitted the report in 2011.
- The WGEEP was succeeded by an eminent scientist K. Kasturirangan.
Key recommendations
(1) Declaration of Eco-Sensitive Area (ESA)
- The committee report proposes 37 per cent of the total area of Western Ghats, which is roughly 60,000 square km, to be declared as eco-sensitive area (ESA).
- Out of this, 20,668 sq km of the area falls in Karnataka (46.50%) covering 1,576 villages.
(2) Ban on various activities
- The report recommended a blanket ban on mining, quarrying, setting up of red category industries and thermal power projects.
- It also stated that the impact of infrastructural projects on the forest and wildlife should be studied before permission is given for these activities.
(3) Urging of UNESCO World Heritage tag
- It has sought for UNESCO Heritage tag as an opportunity to build global and domestic recognition of the enormous natural wealth that exists in the Western Ghats.
- The 39 sites are located across the Western Ghats and distributed across the states (Kerala 19), Karnataka (10), Tamil Nadu (6) and Maharashtra (4).
Reasons behind rejection by Karnataka
- Hitherto conservation measures: Karnataka has the distinction of being one of the states with extensive forest cover and the government has taken care to protect the biodiversity of Western Ghats.
- Curb over development activities: The state believes that implementation of the report will halt the developmental activities in the region.
- Issues over satellite observations: The Kasturirangan report has been prepared based on the satellite images, but the ground reality is different.
- Adaptation by People: People of the region have adopted agriculture and horticultural activities in an eco-friendly manner.
Significance of the recommendations
- There have been massive encroachments across the state forest areas and these have been done at the behest of political leaders.
- We are in the throes of extreme climate events, which are impacting nature and people.
- Hence it is prudent to conserve the fragile ecosystems as it costs less compared to the situation prone to calamities (with changes in the climate).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Inequality Report
Mains level: Rich vr Poor divide in India
As per the ‘World Inequality Report 2022’, India is among the most unequal countries in the world, with rising poverty and an ‘affluent elite.’
World Inequality Report
- This report is published by Mr. Lucas Chancel, the co-director of the World Inequality Lab of the Paris School of Economics.
- It was coordinated by famed French economist Thomas Piketty.
Key highlights of the report
(1) Income divide
- The report highlights that the top 10% and top 1% in India hold 57% and 22% of the total national income respectively while the bottom 50% share has gone down to 13%.
- The average national income of the Indian adult population is Rs 2,04,200.
- The bottom 50% earns 20 times more than the top 10%.
(2) Decline in public wealth
- The report notes that the share of public wealth across countries has been on a decline for decades now.
- Public assets typically include public buildings housing administrations, schools, universities, hospitals, and other public services.
(3) Inequality during Colonial India
- Going back in time, the report shows that the income inequality in India under the British colonial rule (1858-1947) was very high, with a top 10% income share around 50%.
- After independence, due to socialist-inspired five-year plans, this share was reduced to 35-40%.
- Owing to poor post-Independence economic conditions, India embarked upon deregulation and loosening controls in the form of liberalization policies.
(4) Wealth inequality
- The average household wealth in India is around Rs 9,83,010.
- The bottom 50% of the nation can be seen to own almost nothing, with an average wealth of Rs 66,280 or 6% of the total pie.
- The middle class is relatively poor with an average wealth of Rs 7,23,930 or 29.5% of the total.
- The top 10% owns 65% of the total wealth, averaging Rs 63,54,070 and the top 1% owns 33%, averaging Rs 3,24,49,360.
(5) Gender Inequality
- Gender inequality in India is also considered on the higher end of the spectrum.
- The share of female labor income share in India is equal to 18% which is significantly lower than the average in Asia (21%, excluding China) & is among the lowest in the world.
- Although, the number is slightly higher than the average share in the Middle East (15%).
- However, a significant increase has been observed since 1990 (+8 p.p.) but it has been insufficient to lift women’s labor income share to the regional average.
(6) Poor States, wealthy population
- Countries across the world have become richer over the past 40 years, but their governments have become significantly poorer.
- The report shows that the share of wealth held by public actors is close to zero or negative in rich countries, meaning that the totality of wealth is in private hands.
- Following the pandemic, governments borrowed the equivalent of 10-20% of GDP, essentially from the private sector.
(7) Issue over data availability
- The report goes on to say that over the past three years, the quality of inequality data released by the government has seriously deteriorated.
- This has made it particularly difficult to assess recent inequality changes.
Conclusions from the report
(1) Wealth is mostly inherited and has a snowball effect
- People accumulate wealth across generations through inheritance.
- It has a snowball effect, wherein successive generations will gain more, but in their concentrated section.
- More capital incentivizes banks to lend. This is why the rich section’s wealth grows faster.
(2) Wealth management is necessary
- Public wealth has been declining for two reasons:
- First, governments have been privatizing assets and natural resources at low costs.
- Second, governments contract debt to the private sector, making it richer.
- Without assets, governments have low resources to invest and to mitigate climate change impacts, particularly in the energy sector.
- Currently, governments have more debts than assets. This calls for strategic management of the economy.
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