Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bharatiya Poshan Krishi Kosh
Mains level: Paper 2- Despite having many schemes to address the malnutrition the problems still looms large, why?
Context
There are well-equipped schemes to address the malnutrition, plugging the policy gaps is the problem.
Nutrition and hunger in India
- Global Hunger Index rank 102: A few months ago, the Global Hunger Index, reported that India suffers from “serious” hunger, ranked 102 out of 117 countries.
- Only one-tenth of children getting proper diet: Just a tenth of children between six to 23 months are fed a minimum acceptable diet.
- Urgency reflected in the budget: The urgency around nutrition was reflected in the Union Finance Minister’s Budget speech, as she referred to the “unprecedented” scale of developments under the scheme for Holistic Nutrition, or POSHAN Abhiyaan, the National Nutrition Mission with efforts to track the status of 10 crore households.
- The Economic Survey notes that “Food is not just an end in itself but also an essential ingredient in the growth of human capital and therefore important for national wealth creation”.
- How malnutrition affects? Malnutrition affects cognitive ability, workforce days and health, impacting as much as 16% of GDP (World Food Programme and World Bank).
Addressing Nutrition through Agriculture
- Multiple dimension of malnutrition: There are multiple dimensions of malnutrition that include-
- Calorific deficiency.
- Protein hunger.
- Micronutrient deficiency.
- Addressing the issue through Agriculture: An important approach to address nutrition is through agriculture.
- The Bharatiya Poshan Krishi Kosh which was launched in 2019 is a recent attempt to bridge this gap.
- The krishi kosh was launched by Ministry of Women and Child Development along with Bill & Melinda Gates Foundation (BMGF).
- Existing schemes can well address India’s malnutrition dilemma. Following is the analysis of budgetary allocation and expenditure in the previous year.
First- Calorific deficiency
- The Integrated Child Development Services (ICDS) scheme provides a package of services including-
- Supplementary nutrition.
- Nutrition and health education.
- Health check-ups and
- Referral services addressing children, pregnant and lactating mothers and adolescent girls, key groups to address community malnutrition, and which also tackle calorific deficiency and beyond.
- Underutilisation of funds: For 2019-20, the allotment was ₹27,584.37 crore but revised estimates are ₹24,954.50 crore, which points to an underutilisation of resources.
- Which area needs the emphasis: The allocation this year is marginally higher, but clearly, the emphasis needs to be on implementation.
- Mid-Day Meal Scheme: Another pathway to address hunger is the Mid-Day Meal Scheme, to enhance the nutrition of schoolchildren.
- Here too, the issue is not with allocation but with expenditure.
- The 2019-20 Budget allocation was ₹11,000 crore and revised estimates are only ₹9,912 crores.
Second-Protein Hunger
- Contribution of pulses: Pulses are a major contributor to address protein hunger.
- Underutilisation of funds: A scheme for State and Union Territories aims to reach pulses into welfare schemes (Mid-Day Meal, Public Distribution System, ICDS) has revised estimates standing at just ₹370 crores against ₹800 crore allocation in the 2019-20 Budget.
Third-micronutrient deficiency
- Horticulture Mission: The Horticulture Mission can be one of the ways to address micronutrient deficiency effectively, but here too implementation is low.
- Revised estimates for 2019-20 stand at ₹1,583.50 crores against an allocation of ₹2,225 crores.
- National Millet Mission: In 2018-19, the Government of India launched a national millet mission which included renaming millets as “nutri-cereals” also launching a Year of Millets in 2018-19 to promote nutritious cereals in a campaign mode across the country.
- This could have been further emphasised in the Budget as well as in the National Food Security Mission (NFSM) which includes millets.
- Under-utilisation of funds: The NFSM strains to implement the allocation of ₹2,000 crores during 2019-20, as revised expenditures stand at ₹1,776.90 crore.
- Need to sustain the momentum: As millets have the potential to address micronutrient deficiencies, the momentum given to these cereals needs to be sustained.
POSHAN Abhiyan and issues involved
- 72% expenditure on technology: The National Nutrition Mission which is a major initiative to address malnutrition, had 72% of total expenditure going into “Information and Communication Technology.
- Misplaced focus: The focus of the bulk of the funding has been on technology, whereas, actually, it is a convergence that is crucial to address nutrition.
- Under-utilisation of funds: Only 34% of funds released by the Government of India were spent from FY 2017-18 to FY 2019-20 till November 30, 2019.
- Limiting the possibility of an increase in the allocation: With underspending, allocations for subsequent years will also be affected, limiting the possibility of increasing budgets and the focus on nutrition schemes.
Agriculture-nutrition link
- The agriculture-nutrition link is another piece of the puzzle.
- Link not explicitly mentioned: While agriculture dominated the initial Budget speech, the link between agriculture and nutrition was not explicit.
- Why the link is important: The link is important because about three-fifths of rural households are agricultural in India (National Sample Survey Office, 70th round)
- The malnutrition rates, particularly in rural areas are high (National Family Health Survey-4).
- Need for greater emphasis: Agriculture-nutrition linkage schemes have the potential for greater impact and need greater emphasis.
Way forward
- Focus: Focus on nutrition-related interventions, beyond digitisation.
- Bring all departments in one place: Intensify the convergence component of POSHAN Abhiyaan, using the platform to bring all departments in one place to address nutrition.
- Nutrition based activities by farmer-producer: Direct the announcement to form 10,000 farmer producer organisations with an allocation of ₹500 crores to nutrition-based activities.
- Youth schemes: Promotion of youth schemes to be directed to nutrition-agriculture link activities in rural areas.
- Emphasis on fund allocation: Give explicit emphasis and fund allocation to agriculture-nutrition linked schemes.
- Early disbursement and utilisation of funds: Ensure early disbursement of funds and optimum utilisation of schemes linked to nutrition.
Conclusion
Nutrition goes beyond just food, with economic, health, water sanitation, gender perspectives and social norms contributing to better nutrition. This is why the implementation of multiple schemes can contribute to better nutrition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Trade deal with the US, issues involved.
Context
When Prime Minister Narendra Modi welcomes U.S. President Donald Trump to India this month the two leaders are expected to sign a first-ever trade agreement.
What will be on the agenda of the trade deal?
- GSP issues: The restoration of India’s Generalised System of Preferences benefits,
- Pricing of medical devices.
- And agriculture trade are all important.
- Incremental outcomes: If the two sides continue efforts to achieve incremental outcomes, the start of negotiations on a comprehensive free trade agreement (FTA) could even be a credible scenario. Presently, this is not the case.
What could be the incremental outcomes?
- The most obvious candidates are-
- Intellectual property rights (IPR).
- IPR has historically been an area of contention between the two, but discussions on IPR have progressed well in recent years.
- Digital trade.
- Both are grappling with the appropriate scope and approach for regulating electronic commerce issues in this digital age.
- Ideally, there should be room to seriously consider better ways to encourage skilled professionals to work in the other’s economy.
- Progress on the investment
There are already some shared interests in the area of investment.
- For example, India invests in the U.S. and continues to seek U.S. investment in India.
- FDI issue: Foreign direct investment (FDI), this is an important moment to do more to encourage it than simply welcoming it.
- Need to negotiate o investment: Ideally, the two sides should move ahead to negotiate an agreement on investment matters that can provide greater transparency, predictability, and regulatory certainty to investors from the other country.
- Negotiation on FDI off the table: It appears that the traditional approach through which countries pursue commitments on FDI, bilateral investment treaties, or ‘BITs’ (bilateral investment treaties) is off the table.
- The Trump administration has put a hold on negotiating additional BITs and appears to be suspicious of how well they balance U.S. interests.
- The Indian government is similarly sceptical of BITs, having cancelled all existing ones soon after it came into office.
Need for the new approach on the investment issues
- Until they resume their work on BITs, the two sides may find common ground in devising a new approach to investment issue.
- What the new approach involve?
- Taking cues from their respective FTAs: A starting point should be to review what they have done in their recent FTAs.
- Abandonment of investor-state dispute settlement: The recently concluded U.S.-Mexico-Canada Agreement contains a novel approach on investment notably its abandonment of investor-state dispute settlement with respect to the U.S. and Canada.
- Similarly, the Regional Comprehensive Economic Partnership, which India had been negotiating with ASEAN, Australia, China, Japan, Korea, and New Zealand, does not include investor-state dispute settlement.
- While India chose not to join the Regional Comprehensive Economic Partnership when it was concluded at the end of last year, it appears to have been on board with the FTA’s investment provisions.
- Where the agreement focus as of now? For now, however, both countries should focus on what is doable. A U.S.-India investment agreement could focus on-
- Fair treatment for investors from the other country.
- Regulatory transparency and predictability.
- And approaches for resolving concerns short of investor-state dispute settlements.
- At a later stage: At a later stage-
- Most likely when the two are prepared to negotiate a more comprehensive bilateral FTA, they can go further on investment matters.
Conclusion
A new, hybrid approach on investment would be a substantial step in the right direction. It will be critical to sustaining momentum coming out of a first trade deal when the two leaders meet in Delhi. If India and the U.S. fail this test, the trade relationship is more likely to languish than blossom.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Why fiscal stimulus is not the elixir as it is made out to be?
Context
In the run-up to the budget, there was enormous pressure on the finance minister to launch a fiscal stimulus so as to pump-prime the economy. That she did not succumb to the temptation is a big relief.
Why fiscal stimulus is unwarranted?
- There is already considerable stimulus in the system.
- Excessive fiscal deficit: To her credit, the finance minister took a step towards transparency by admitting to off-balance-sheet borrowings of 0.8 per cent of GDP for both the current and next fiscal year.
- Acknowledging that the fiscal deficit would actually be higher at 4.6 per cent and 4.3 per cent of GDP respectively. This is already excessive.
- Unrealistic projection of revenue growth: Add to this the unrealistic projections of revenue growth and disinvestment proceeds for next year and we have a potentially unsustainable fiscal situation.
- Any stimulus on top of this would have been clearly
Possibility of undermining the RBI’s efforts
Fiscal pressure could harm the RBI’s efforts to revive the economy in the following ways-
- Harming long term investment rates: Fiscal pressures will undermine the Reserve Bank of India’s struggle to revive investment by bringing down long-term interest rates.
- Rating downgrades: It could result in a sovereign rating downgrade and jeopardise efforts to attract foreign capital.
- Increase in inflationary pressure: It can stoke inflationary pressures, something we cannot afford when inflation is above the RBI’s target rate.
- Pressure on the external sector: And most importantly, it can lead to pressures on the external sector.
- Past experiences: The balance of payments crisis of 1991 and the near crisis of 2013 in the wake of taper tantrums were, at their heart, a consequence of extended fiscal profligacy.
Counter-arguments of the supporters of the stimulus and fallacies in it
- Low Debt-to-GDP ratio: It is argued that our debt-to-GDP ratio is low in international terms.
- Misleading comparison: The data don’t bear this out. In any case, our experience, as well as research, shows that international comparisons of debt-to-GDP ratios, without reference to other parameters, are misleading.
- Debt in domestic currency: It is also argued that we do not need to worry because our debt is mostly in domestic currency unlike that of many emerging economies.
- The fallacy in this argument: Our debt in the domestic market didn’t protect us from previous crises, and there is no reason to believe that it will protect us from the next one, especially as our foreign debt is proportionally higher than before.
- Robust foreign exchange reserves: It is argued that our foreign exchange reserves are robust and a balance of payments crisis is improbable. Such complacency is misplaced.
- Fallacy- No forex is large enough in bad times: We should not forget the lesson that in good times any amount of forex reserves looks like it is too large, but in bad times no amount of reserves is large enough.
Quality of fiscal consolidation
- Quality a cause for concern: As much as the headline fiscal deficit numbers are a cause for concern, the underlying quality of fiscal consolidation is a bigger concern.
- Increasing revenue deficit: Conveniently off the radar, the revenue deficit, far from coming down, is actually going up.
- Two-third borrowing to finance revenue expenditure: This year, more than two-thirds of what the government is borrowing is going to finance current expenditures like salaries, pensions, interest payments and subsidies.
- That ratio will rise to three-quarters next year.
- Crowding out of the expenditure: This debt-financed revenue expenditure is simply unsustainable as it will increasingly crowd out capital expenditure.
- Red flags on the state finances.
- Another dimension of the quality of fiscal consolidation is the combined fiscal position of states which is, in fact, the big elephant in the room.
- Together, states spend one-and-a-half times more than the Centre.
- Larger development impact than Centre: Studies show that how efficiently states spend their money has a much greater development impact as compared to the Centre.
- Red flags by the RBI on states finances: The states are not doing a good job. In its latest annual report on state finances, the RBI raised several red flags on state finances-
- states’ increasing weakness in their own revenue generation.
- Their unsustainable debt burdens.
- And their tendency to retrench capital expenditures in order to accommodate fiscal shocks such as farm loan waivers, power sector loans under UDAY and a host of income transfer schemes.
- Consequences in the market: The market will penalise mismanagement of public finances; it does not care who is responsible — the Centre or states — for an unsustainable fiscal stance.
Conclusion
- The fear of one-off fiscal stimulus becoming permanent: By far the biggest fear about a fiscal stimulus is that it is tempting to plunge into a spending programme saying it is a one-off and will be withdrawn when the pressure eases. Experience shows that it is very difficult to bail out. It is good that the finance minster avoided doing any such thing.
- As Milton Friedman famously said, there is nothing more permanent than a temporary government programme.
- Need to kick-start the private investment: What the economy needs for a sustained turnaround is kick-starting private investment.
- Implementation of reforms: A necessary condition for inspiring investor confidence is the implementation of structural and governance reforms. This will be a long-haul.
- That the budget did not launch the journey is a big disappointment. But, at least, the budget did not make a bad situation worse by embarking on fiscal adventurism.
- It’s better, as Keynes said, to be roughly right than precisely wrong.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Will allowing participation of private sector in the public healthcare system beneficial for India?
Context
In India, multiple policy pronouncements over the last few years have expressed an implicit intent to emulate certain features of the U.S. health system which is one of the most prodigal health systems, and it is a well-known reality that it is infamously poor-performing.
Emulating the U.S. health system in India and problems in this approach
- Implicit intent to emulate the U.S. system: In India, multiple policy pronouncements over the last few years have expressed an implicit intent to emulate certain features of the U.S. health system like-
- Enhance private initiative.
- And uphold the insurance route as the way to go for health care.
- AB-NHPS scheme: These are being largely envisaged while riding on the back of the Ayushman Bharat-National Health Protection Scheme (AB-NHPS).
- AB-NHPS aims to provide insurance cover to nearly 50 crores poor Indians.
- The mechanism to check insurance frauds: The AB-NHPS affirmed strong mechanisms to check insurance fraud which was commonplace in its precursor programme, the Rashtriya Swasthya Bima Yojana (RSBY).
- New of fraud in AB-NHPS: Recently, 171 hospitals were reported to have been de-empanelled from the AB-NHPS on charges of fraud.
- How are the frauds in AB-NHPS sought to be tackled? The response to these has been envisaged through an unprecedented bolstering of administratively-heavy and technology-driven mechanisms.
- Anti-fraud units: National- and state anti-fraud units have been established and partnerships with fraud control companies conceived.
- One would ask this question: what is wrong in all of this?
- What is wrong with this approach? Let us return to the U.S. once again.
- Administrative intensive: Multiple layers of complex arrangements and concomitant complex regulatory provisions have made the U.S. system one of the most administratively and technologically intensive systems in the world.
- 50% spending going for the wages: More than 50% of health-care spending in the U.S. in 2010 went into health worker’s wages, with a large chunk of the growth in health-care labour taking place in the form of non-clinical workers.
- Very little going into improving health: What this entails is that for every penny spent on health care, very little goes into actually improving health.
What are the concerns in emulating the U.S. system?
- Sub-satisfactory operations at the large cost: The new system necessitates-
- A battery of new structures.
- Personnel cadres.
- Data systems.
- And working arrangements only in order to sub-satisfactorily operate an insurance scheme that would cover less than half the population.
- Disregarding the death spiral that policy-driven over-reliance on private health care could lead to considerable costs which would not primarily contribute to improving health outcomes.
- Ethical concerns over unnecessary spending: While a besottedness with cutting-edge technology and state-of-the-art systems can help garner eyes and promote businesses, each unnecessary penny incurred this way raises significant ethical concerns.
- Problems of inadequate funding
- Funding sufficient only for a quarter of beneficiary: Gupta and Roy have shown how the allocation for the AB-NHPS for 2019-20 would have covered less than a quarter of the targeted beneficiaries.
- Paltry increase in allocations: For 2020-21, there has been a paltry increase in health-care sector allocation (5.7% above 2019-20 RE), while the allocation for the AB-NHPS is unchanged.
- It is very possible that the AB-NHPS continues to remain insufficiently funded and incapable of extending considerable financial risk protection to the poor.
- Diversion of limited funds to wasteful areas
- Attractive on face: Embracing the complexities associated with robust regulation of the insurance programme and making the requisite technological and administrative investments appear attractive and commendable on the face.
- Diversion of limited fund: However, these complexities entail diverting highly limited resources towards wasteful and dispensable high-end areas.
- These funds could have been set aside for much more pressing and productive domains, such as public hospitals and health centres.
- Improvements in these areas would have strongly reflected in terms of tangibly better health outcomes.
- AB-NHPS reinforcing contradictions: Rather, the AB-NHPS appears attuned to reinforcing a stark contradiction wherein trailblazing but unproductive high-end structures thrive alongside decrepit but potentially fructuos basic structures.
Conclusion
The fanfare with which AB-NHPS was launched, can hide the pressing concerns which lie underneath. The government must ensure that every penny spent on improving healthcare is used in the most optimal way and ensure that India’s AB-NHPS won’t end up the US healthcare way.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Coronavirus threat and its implications for India and the rest of the world.
Context
The coronavirus epidemic poses a challenge to China’s place in global affairs, its political leadership.
The possible implications of coronavirus crisis
- The Chines leadership might not be able to escape the blame: If the epidemic turns into a pandemic, as some analysts bet, China’s all-powerful leader Xi Jinping might not be able to escape the blame.
- And will likely come under considerable political pressure.
- It could also turn into a systemic threat: Some also speculate that the backlash against the government’s mishandling of the crisis could turn into a systemic threat against the dominance of the Chinese Communist Party.
- Speculations as perennial hope among China’s critics: Sceptics, however, dismiss above speculation as merely reflecting the perennial hope among Beijing’s harshest critics who can’t wait to see a China without the CCP.
- Realist’s stand: Realists point to the massive mobilisation of state power by President Xi in limiting the spread of the virus.
Handling of the crisis by China
- Initial faltering response: To be sure, there were major failures in the initial faltering response to the crisis.
- Cover-up attempts from the lower level: The attempts at the lower levels to cover-up or underplays the crisis and the inadequate appreciation at the higher levels of the potential consequences are common to all large bureaucracies. The party-state in China is not an exception.
- Praise for handling the crisis: China’s handling of the crisis had drawn much respect, grudging or otherwise, from the international community.
- Whether it is the lockdown of Hubei province and its capital Wuhan, from where the virus began to spread.
- Or in deploying thousands of doctors and health workers in the province and building massive hospitals for treating the infected.
- Possibility of some political impact: Yet, there is no question that a crisis of this magnitude -will have some political impact.
- The party-state is certainly having some difficulty in containing the public outrage against the initial failures.
- Efforts to shield top leadership from blame: The CCP, however, is bound to shield the supreme leader from any damaging criticism and in fact, celebrate a triumph in containing the spread through a determined effort.
- Responsibility will be affixed on provincial officials in Hubei and a purge of some kind may have already begun.
Addressing the economic consequences of the crisis
- International dimension: Nearly two decades after the SARS epidemic -China is now a much larger economy and its interdependence with the world has only deepened.
- This interdependence, in turn, lends a strong international dimension to China’s crisis.
- Optimist’s hope of future uptick: Optimists hope that a sharp drop in economic activity in the current quarter will be followed by a steep uptick in growth in the next when the virus is contained and normalcy returns.
- Pessimist’s fear of economic disruption: Pessimists suggest that the economic disruption — in terms of the impact on internal and external trade and the breakdown of the global supply chains- could have lasting effects.
- Reinforcing the disruption: Some suspect that the disruption could reinforce the slowdown driven by a number of other internal and external factors including the trade war with the US.
China’s response to the rest of the world
- Channelling of resentment against the West: Some in the West hope that a prolonged economic crisis might turn the people against the CCP. For now, though, Beijing is channelling the resentment against the West.
- Terming evacuation as an over-reaction: Beijing has criticised the advisories from various countries against travel to China and the cancellation of flights as over-reaction.
- Lukewarm response to evacuation efforts: China has also been lukewarm to efforts of various countries to evacuate their citizens from Wuhan and Hubei.
- India evacuated students: India has managed to convince Beijing to let India airlift its students from Wuhan.
- Pakistan has declared that it will not evacuate its students as a gesture of political solidarity with China in a time of crisis.
- South Asian neighbour’s response: Many of India’s other South Asian neighbours are torn between the reluctance to offend Chinese sentiment and the mounting domestic pressures to bring students back.
- Cooperation with the US: While being critical of the US travel restrictions against China, Beijing has certainly been open to cooperation with the US in dealing with the crisis.
- India’s offer to help other countries in evacuation: The external affairs minister Subrahmanyam Jaishankar said last week that India has been willing to bring back students from all the neighbouring countries.
- Balancing between Delhi and Beijing: The logic of balancing between Delhi and Beijing has prevented most of the smaller neighbours from requesting Indian assistance.
- The Maldives has been the only exception.
- The response of the East and Southeast Asia: Beyond South Asia, many countries in East and Southeast Asia have been hesitant to be seen as rushing to cut themselves from China.
- What is making these countries hesitant: Deep economic interdependence and massive flows of Chinese tourists led to much dithering among the East Asian countries in their early responses to the crisis.
Conclusion
India must explore all potential cooperative engagement with Beijing as well as its other international partners on pandemics-an important but the under-addressed challenge for national, regional and international security.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Shortcomings in the Medical Termination of Pregnancy Act 1971 and need of the more progressive abortion law in the country.
Context
The Medical Termination of Pregnancy Bill doesn’t do enough to secure women’s choices and interests.
Deaths due to unsafe abortion and previous attempts to legislate
- Deaths due to unsafe abortions: Recent reports have shown that more than 10 women die every day due to unsafe abortions in India.
- And backward abortion laws only contribute to women seeking illegal and unsafe options.
- The Cabinet has recently approved the Medical Termination of Pregnancy (Amendment) Bill, 2020 (MTP Bill, 2020) which will soon be tabled in Parliament.
- It seeks to amend the Medical Termination of Pregnancy Act, 1971 (MTP Act) and follows the MTP Bills of 2014, 2017 and 2018, all of which previously lapsed in Parliament.
Provisions of the current law
- Foetus-age based division: The MTP Act divides its regulatory framework for allowing abortions into categories, according to the gestational age of the foetus.
- Up to 12 weeks: Under Section 3, for foetuses that are aged up to 12 weeks-
- Only one medical practitioner’s opinion is required to the effect that the continuance of the pregnancy would pose a risk to the life of the mother or cause grave injury to her physical or mental health.
- Or there is a substantial risk that if the child is born, it would suffer from such physical or mental abnormalities as to be seriously handicapped.
- Between 12 weeks and 20 weeks: But if the foetus is aged between 12 weeks and 20 weeks-
- At least two medical practitioners’ opinions conforming to either of the two conditions are required.
- What beyond 20 weeks? Beyond 20 weeks, termination may be carried out where it is necessary to save the life of the pregnant woman.
- Definition of grave injury: The MTP Act also specifies that ‘grave injury’ may be explained as
- The anguish caused by a pregnancy arising out of rape, or the anguish caused by an unwanted pregnancy arising out of the failure of a contraceptive used by a married woman or her husband.
What are the issues with the current law?
- Several issues arise from the current framework under the MTP Act.
- First-Lac of autonomy of women: At all stages of the pregnancy, the healthcare providers, rather than the women seeking an abortion, have the final say on whether the abortion can be carried out.
- It is true that factors such as failure of contraceptives or grave injury are not required to be proved under the MTP Act.
- However, to get the pregnancy terminated solely based on her will, the woman may be compelled to lie or plead with the doctor.
- Thus, at present, pregnant women lack autonomy in making the decision to terminate their pregnancy and have to bear additional mental stress, as well as the financial burden of getting a doctor’s approval.
- On request abortion in 67 countries: Indian’s law is unlike the abortion laws in 67 countries, including Iceland, France, Canada, South Africa and Uruguay, where a woman can get an abortion ‘on request’ with or without a specific gestational limit (which is usually 12 weeks).
- Second-Prejudice against unmarried women: The MTP Act embodies a clear prejudice against unmarried women.
- According to ‘Explanation 2’ provided under Section 3(2) of the Act, where a pregnancy occurs due to failure of any birth control device or method used by any “married woman or her husband”, the anguish caused is presumed to constitute a “grave injury” to the mental health of the pregnant woman.
- While the applicability of this provision to unmarried women is contested, there is always the danger of a more restrictive interpretation, especially when the final decision rests with the doctor and not the woman herself.
- Third-Restriction of 20 weeks’ limit: Due to advancements in science, foetal abnormalities can now be detected even after 20 weeks.
- Danger to mother’s life only condition after 20 weeks: The MTP Act presently allows abortion post 20 weeks only where it is necessary to save the life of the mother.
- Problem with this restriction: The above restriction means that even if a substantial foetal abnormality is detected and the mother doesn’t want to bear life-long caregiving responsibilities and the mental agony associated with it, the law gives her no recourse unless there is a prospect of her death.
What does the bill fail to address?
- While the MTP Bill, 2020, is a step in the right direction, it still fails to address most of the problems with the MTP
- First, it doesn’t allow abortion on request at any point after the pregnancy.
- Second, it doesn’t take a step towards removing the prejudice against unmarried women by amending the relevant provision.
- And finally, it enhances the gestational limit for legal abortion from 20 to 24 weeks only for specific categories of women such as survivors of rape, victims of incest, and minors.
- This means that a woman who does not fall into these categories would not be able to seek an abortion beyond 20 weeks, even if she suffers from a grave physical or mental injury due to the pregnancy.
What are the provisions for the case of foetal abnormality in the bill?
- Limit irrelevant if the foetal abnormality is diagnosed by the Medical Board: The Bill does make the upper gestational limit irrelevant in procuring an abortion if there are substantial foetal abnormalities diagnosed by the Medical Board.
- This means that even if there is no threat to the mother’s life, she would be able to procure an abortion as soon as a substantial foetal abnormality comes to light.
- While this is an important step and would have in the past helped many women who fought long battles in Court without recourse.
- Rules against unnecessary delays: It is crucial that this provision is accompanied by appropriate rules for the Medical Boards that guard against unnecessary delays, which only increase the risks associated with a late abortion.
Conclusion
- Recognition of women’s right: The Supreme Court has recognised women’s right to make reproductive choices and their decision to abort as a dimension of their personal liberty (in X v. Union of India,2017) and as falling within the realm of the fundamental right to privacy (in K.S. Puttaswamy v. Union of India, 2017). Yet, current abortion laws fail to allow the exercise of this right.
- The bill does not do enough: While it is hoped that MTP Bill, 2020 will not lapse in Parliament like its predecessors, it is evident that it does not do enough to secure women’s interests, and there is still a long road ahead for progressive abortion laws.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Making the justice system more victim-centric.
Context
The recent judgment in Rekha Murarka vs The State Of West Bengal, the SC has held that the victims’ private counsel cannot orally examine or cross-examine the witnesses.
Place of the victim in the present criminal justice system
- Removed from the proceedings: Under our criminal justice system, victims find themselves removed from the proceedings.
- Their identities are reduced to being mere witnesses.
- The harm they suffer is reduced to being aggravating or mitigating factors at the time of sentencing.
- Stage props in a larger scheme: With the state appropriating their victimisation, the actual victims become mere stage props in a larger scheme.
- Need of The victim-centric notion of justice-Law Commission suggestion: In 1996, the 154th Law Commission Report suggested a paradigm shift in India’s criminal justice system towards a victim-centric notion of justice.
- Partial acceptance: The Code of Criminal Procedure (Amendment) Act, 2009 partially accepted the Law Commission suggestion and granted some rights to the victims of crime.
- The Act introduced victims’ right to a private counsel under Section 24(8).
- Move toward victim’s participation: The Code of Criminal Procedure already allowed for pleaders engaged by private persons to submit written arguments with the permission of the court under Sections 301(2) and 302 allowed a person to conduct the prosecution with permission of the court.
- These sections were read together to partially secure the victims’ right to participation.
Steps take towards securing justice for victims
- Right to legal assistance to victims of sexual assault: In the case of Delhi Domestic Working Women’s Forum v. Union of India (1994), the SC called for the extension of the right to legal assistance to victims of sexual assault at the pre-trial stages.
- The SC opinion over asymmetry in rights of victims and the accused: In Mallikarjun Kodagali (Dead) … vs The State Of Karnataka (2018), the Court accepted that under the criminal justice system, the rights of the accused far outweigh the rights of the victim.
- Introduction of victim impact statement right to appeal against the adverse order: The Supreme Court not only called for the introduction of a victim impact statement in order to guarantee the participation of the victim in the trial proceedings.
- The SC also reinstated the victims’ right to appeal against an adverse order.
Provisions on the international level for the victim’s participation
- Despite these advances, the scheme of victim participation remains far removed from the ideals embedded in the Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power; India is a signatory.
- What does the declaration require? It requires that the views and concerns of victims should be allowed and considered at all appropriate stages without prejudice to the accused.
- Need to increase the victims’ advocate’s role: Presently, the victims’ advocate has an extremely limited role to play wherein he “assists” the prosecutor rather than represent the interests of the victim before the court.
- The only substantial opportunity provided to a private counsel is after the closing of evidence when written arguments may be submitted to the court only after seeking the permission of the court.
- Contrast with ICC: In contrast, the International Criminal Court (ICC) provides for victim participation at the stage of-
- First, a challenge to the jurisdiction of the ICC.
- Second, framing of charges.
- Third, opening and closing statements.
- Fourth, making a written submission wherever the personal interests of the victims are affected.
- And finally, for presenting witnesses to give evidence on issues relating to the personal interests of the victims.
What the SC judgement means
- Missed opportunity: The Supreme Court in Rekha Murarkahas missed the opportunity to forward the jurisprudence on victim justice and rectify the lacunae in our laws.
- Instead, the judgment goes against the jurisprudential current specified above.
- Indeed, the victim’s right to participation cannot be secured by restricting the rights of the accused.
- Why the victim’s advocate is not allowed the right to participate in the SC’s opinion: According to the judgment, a victim’s advocate cannot be allowed the right to participate because-
- First- Insistence by the victim’s counsel to examine a witness deliberately left out by the prosecution may weaken the prosecution’s case;
- Second– The trial will derogate into a “vindictive battle” between the victim’s counsel and the accused.
- Third- A lack of experience on the part of the victim’s counsel may lead to lapses.
- The problem in the SC ruling: The judgment further assumes that prosecutions effectively take the victim’s needs into account.
- SC ignored why the need for private counsel arise: The judgement ignores the fact that the need for a private counsel arises precisely because intentional or unintentional prosecutorial lapses directly lead to injustice to the victims.
- The court expects the victim’s counsel to make the prosecutor aware of any aspects that have not been addressed in the examination of witnesses or the arguments advanced by the public prosecutor.
- In the process, it assumes that the prosecutor will address such lapses.
Conclusion
Under the role currently envisaged in our criminal justice system, the public prosecutor cannot sufficiently take into account the interests, needs and requirements of the victims. The cause of victim justice would be greatly served if the Supreme Court decided to revisit its reasoning and assumptions to appropriately amend this provision in light of the above.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: LTRO-Long Term Rero by the RBI, what is it?
Mains level: Paper 3- Novel approach adopted by the RBI to push the growth.
Context
February signalled a new dynamic-Monetary policy is no longer driven by MPC.
What changed after December MPC review
- Pause in the rate cut by MPC: In its December policy, the Reserve Bank of India suddenly paused on cutting rates, putting the ball in the government’s court to support growth.
- Conservative union budget: With last week’s Union Budget belying expectations of short-term growth boosters, the ball was back in the RBI’s court.
- The Budget opted for fiscal conservativism over activism, consolidating the fiscal deficit to 3.5 per cent of GDP in 2020-21 from 3.8 per cent in 2019-20– bypassing any ambitious expenditure boost or significant tax cuts.
- Rise in the inflation in Dec-Feb interval: Meanwhile, the policy arithmetic turned more complicated for the MPC.
- At the time of the December policy meeting, CPI inflation was trending close to 5 per cent (the October reading was 4.6 per cent).
- Since then a combination of supply-side shocks, which led for example to unseasonally high vegetable and protein prices, buoyed inflation to over 7 per cent, nearly 140 basis points above the RBI’s upper bound comfort zone of 6 per cent.
- As a primarily inflation-targeting central bank, this effectively stopped the MPC from easing further.
Key takeaways from February MPC meeting
- The February policy meeting removed two key uncertainties in the current policy scenario.
- First, the RBI is still very concerned about growth and the burgeoning negative gap between the current growth trajectory and potential growth.
- Second, monetary policy is no longer strictly limited to the MPC’s decision-making.
- Because of the risk of supply-side shocks hitting inflation, it is understandable that the RBI has summarised its outlook on inflation as “highly uncertain”.
- Hence, of the policy measures that the RBI has at its disposal, the MPC’s “conventional” arrow of rate cuts was left unused.
- Instead, the RBI has opted for macroprudential intervention, unveiling two other “unconventional” policy arrows.
RBI opting for macroprudential intervention in two ways
- Policy transmission via LTRO-the first arrow: The primary macro challenge has been transmission via the credit channel — banks are not lowering their deposit rates.
- Why? This is due to competition from the small savings rate and to protect saver, and in turn are keeping lending rates high.
- How it impacts economy: Sectors considered higher risk (real estate, MSMEs) find themselves credit-starved.
- In a move that seems inspired by the European Central Bank’s quantitative easing in 2011, the RBI’s announcement on long term repo operations (LTROs) has been aimed at promising banks longer-duration liquidity at the repo rate, which is cheaper relative to their current deposit rates.
- The aim is to nudge them to kick-start the credit cycle.
- The exemption of cash reserve ratio for incremental loans to MSMEs and the retail sector is also aimed at lowering costs for banks, which ideally should be passed onto these sectors.
- Managing the stress in financial system-the second arrow: It is aimed at managing the looming stress in the financial system from bad loans, especially as deleveraging becomes more difficult during an economic slowdown.
- Extension to restructuring durations: The extension of the restructuring scheme on MSME loans and projects in the commercial real estate sector is aimed at releasing capital for banks in the short term.
- Though banks will ultimately need to recognise loans that are non-performing.
- Easing guidelines on the classification of loans: Similarly, easing guidelines on the classification of loans for projects in the commercial real estate sector that have been delayed is essentially designed to provide some breathing space to banks.
What does this mean for the macro outlook?
- Recovery in demand is a must: The RBI’s new macroprudential measures, its “unconventional” policy arrows, while well-meaning, are ultimately supply-side measures.
- For the RBI to attain its goals, be it on asset quality or transmission, there eventually needs to be a recovery in demand conditions.
- ECB’s LTRO experience: To be fair, even the ECB’s LTRO programme has had mixed success — a central bank can flood the market with liquidity, but the ultimate onus on releasing it to the real economy rests with banks.
- So far, excess liquidity has not benefitted segments considered high risk (real estate developers, MSMEs).
Conclusion
The ECB introduced the LTRO programme when growth was weak and the euro area was struggling with a severe sovereign debt crisis. With the RBI embarking on something similar, albeit on a smaller scale, the niggling concern is if there is more financial instability lurking around the corner but not yet evident in the current data.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Efficacy of Model Code of Conduct to ensure free fair and pure elections
Context
Campaign for the Delhi Assembly election in which the development debate was overshadowed by hate-mongering and outpouring of communal vitriol underscores need to do more.
Understanding the Model Code of Conduct (MCC)
- Behavioural guidelines: It is a set of behavioural guidelines for political parties and candidates for-
- The peaceful conduct of elections.
- To prevent hate speech.
- Malpractices.
- Corruption and
- Misuse of government machinery by the ruling party.
- Not judicially enforceable: Since it is not an Act passed by Parliament, the Code is not judicially enforceable.
- The action against a violator usually takes the form of an advice, warning or censure.
- No punitive action can be taken.
- No wonder, many consider the Code as toothless.
- Moral authority: It is not toothless though. Its moral authority far outweighs its legal sanctity.
- Political leaders worth their salt are scared of inviting a notice for a violation, as it creates negative public opinion.
- Besides, unlike the legal processes, its impact is instant.
The legality of the MCC
- Test of legality in the courts: The legality of the code has been judicially tested.
- First legal acceptance: Its first judicial acceptance came in 1997 when the Punjab and Haryana High Court gave the EC the power to enforce the code.
- “Such a code of conduct when it is seen that it does not violate any of the statutory provisions can certainly be adopted by the Election Commission for the conduct of free and fair election, which should be pure as well,” the Court said.
- The SC has repeatedly held that this must be enforced strictly.
Parallels between the MCC and other legal provision
- The first section of the MCC lays down that-Part 1 (1) “ No party or candidate shall include in any activity which may aggravate existing differences or create mutual hatred or cause tension between different castes and communities, religious or linguistic.”
- “…Criticism of other parties or their workers based on unverified allegations or distortion shall be avoided.”
- Parallels with RPA: The Representation of the People Act (1951) categorically defines the above two as corrupt practices in Section 123 (3A) and Section 123 (4) respectively.
- Section 125 of RPA provides for punishment for similar violations.
- Parallels with IPC: It is important to note that Section 153A of the Indian Penal Code has a similar provision:
- Promoting enmity between different groups on ground of religion, race, place of birth, residence, language, etc., and doing acts prejudicial to maintenance of harmony.
Refreshing change
- Prompt action: It must be appreciated that the EC was prompt in its action against the leaders accused of hate speech in Delhi election campaign.
- While it instantly, suo moto, deprived the two leaders of their star campaigner status, it also punished them with a gag order, using the ultimate weapon provided by Article 324.
- The EC flexing its muscle outside the so-called “toothless” MCC and invoking Article 324 is indeed a refreshing change.
- In earlier instances, it often had to let the culprits go with a mere “warning, caution or censure”.
- In its notice to a leader, the EC cited Sections 123 and 125 of the RP Act.
Conclusion
- Historically, the EC has always taken simultaneous action under the Model Code of Conduct and the other two provisions. While the MCC produces instant results, the penal provisions involve endless judicial processes. Not taking action under the IPC encouraged violators to commit repeat offences.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-Sri Lanka relations, issues involved-Tamil minority, Chinese growing influence etc.
Context
During Mahinda Rajapaksa’s India visit, New Delhi is likely to talk to Colombo on the Tamil issue and counterbalance Beijing’s influence in the Indian Ocean.
Background of the current politics in Sri Lanka
- Sri Lankan Prime Minister official visit to India is taking place a few months after he assumed office and his brother was sworn in as president
- Nationalist wave after attacks: The brothers were voted to the office on a Sinhala nationalist wave, a sentiment that is a fallout of the Easter attacks on Christian shrines, including the Saint Anthony’s shrine, in April last year.
- The attacks had killed more than 250 people, six months before the elections.
- The polarisation worked in favour of the Rajapaksas vis-à-vis Sri Lanka’s 10 per cent Muslim population, mostly Tamils, who are especially numerous on the country’s east coast.
Tamil issue in Sri Lanka
- No engagement with Hindu Tamil: While Muslims have become the number one scapegoat for the Easter tragedy, the Rajapaksas have not tried to engage the Hindu Tamils
- LTTE background: Hindu Tamils, who make about 11 per cent of Sri Lanka’s population, have had an acrimonious relationship with Mahinda Rajapaksa ever since he wiped out the LTTE in 2009.
- Many members of the community became collateral victims in the process.
- Implications for India-Sri Lanka relations: Gotabaya was the defence secretary at that time. The Hindu Tamil factor may complicate India-Sri Lanka relations.
- No inclusion minorities from Sri Lanka in CAA: In the Citizenship Amendment Act the Indian Parliament passed in 2019, the persecuted minorities of Sri Lanka are not taken into account.
- However, the Hindu Tamils of Sri Lanka are feeling insecure again.
China-Sri Lanka axis
- The China factor is likely to aggravate the complication: The Rajapaksas are known to be pro-Sri Lanka. Mahinda Rajapaksa was largely responsible for opening Sri Lanka to massive — and strategic -Chinese investments.
- The Hambantota port issue: The Hambantota Port and 15,000 acres have been conceded to China on a 99-year lease, causing considerable consternation in New Delhi, which apprehends that this deep seaport could be used for military purposes, and not just trade.
- The deal was put on a hold by former PM but the present dispensation wants it to be restored.
- China’s growing clout in the Indian Ocean: India’s efforts were also designed to thwart China extending its influence in Sri Lanka at a time when the Narendra Modi administration is trying to counter Beijing’s clout in the Indian Ocean.
- Modi’s visited on May 30, 2019, just after beginning his second tenure as PM.
Past engagement events
- New Delhi has tried to engage the new Sri Lankan government after the Rajapaksas assumed office.
- India’s foreign minister S Jaishankar, landed in Sri Lanka on November 20, 2019, to invite Gotabaya for his first visit to India — rather than to China.
- Gotabaya visited New Delhi for three days in late November last year.
- Tamil issue discussed: Jaishankar is said to have told Gotabaya that India expects his government to treat Tamils with dignity in the process of reconciliation.
- There is speculation that India might appoint an ambassador of Tamil origin to Colombo.
- Cooperation against terrorism: The Indian PM went further when Gotabaya Rajapaksa visited New Delhi: He announced a $50 million line of credit for security and counter-terrorism
- Line of credit for Infra: India also announced another $400 million for development and infrastructure projects in Sri Lanka.
- That the counter-terror fund would further strengthen cooperation against terrorism.
- Allaying the fears over China: Gotabaya allayed India’s fears on China by saying that Sri Lanka would not allow a third country to affect Sri Lanka-India ties.
Conclusion
While addressing the issue of minority and growing Chinese influence in Sri Lanka both countries need to focus on the other areas of cooperation like counter-terrorism, trade, security, development, technology etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- How UPI is transforming payment and settlement, what makes UPI a success.
Context
India has crossed the target of a billion monthly digital payments. Now, to a billion transactions a day.
The story of payment revolution and financial inclusion in India
- Progress on the financial inclusion: India was long a financially excluded nation –only 17 per cent of Indians had a bank account in 2011.
- 50 more years estimate: The World Bank suggests it would have taken 50 more years for 80 per cent of Indians to get a bank account at the pre-2011 speed.
- Yet, we reached that milestone in 2018.
- How? A magical combination of
- Political will (Jan Dhana Yojana and Aadhaar embedding).
- A proactive central bank (creating a non-profit market participant entity and levelling the playing field between non-banks and banks).
- And a technology stack with three layers (identity, payments, and data).
- The rise of UPI
- The swift rise in use: The digital payment transactions on the Universal Payment Interface (UPI) platform rising from 0.1 million in October 2016 to 1.3 billion in January 2020.
- Result of working together: This represents the magic of entrepreneurs, nonprofits and policymakers working together.
- And gives us a new target — a billion transactions a day.
- India’s Payment revolution
- What are the components of the payment revolution: India’s payment revolution comes from-
- A clear vision: Shifting the system from low volume, high value, and high cost to high volume, low value, low cost.
- A clear strategy: Regulated and unregulated private players innovating on top of public infrastructure.
- And trade-offs balanced by design: Regulation vs innovation, privacy vs personalisation, and ease-of-use vs fraud prevention.
- What consumers wanted?
- Consumers wanted a payment experience that was mobile-first, low-cost, 24/7, instant, convenient, interoperable, fintech friendly, inside banking, and safe.
- Answers lies in UPI.
- What did UPI achieve?
- Interoperability: UPI created interoperability between all sources and recipients of funds -consumers, businesses, fintechs, wallets, 140 member banks.
- Instant settlement: UPI settles instantly inside the central bank in fiat money -state-issued money declared by the sovereign to be legal tender.
- Blunted data monopolies: Big tech firms have strong autonomy but weak fiduciary responsibilities over customer data, it was taken care of by UPI.
5 Policy lessons from the success of UPI
- First- how the India stack: Interconnected yet independent platforms or open APIs — are a public good that-
- Lowers costs, spur innovation and blunts the natural digital winner-takes-all.
- Replication in other areas: Replicating this in education, healthcare, and government services are likely to be a harbinger of large scale multi-domain collaborative innovation.
- Second-collaboration: Collaboration can create ecosystems that overcome the birth defects of its constituents–
- The execution deficit of government, the trust deficit of private companies, and the scale deficit of nonprofits.
- Third-policy intervention: Complementary policy interventions are important.
- Demonetisation and GST are changing the stories that firms and individuals tell themselves around cash and informality.
- Fourth-human capital and diversity matter: This revolution needed career bureaucrats to partner with academics, tech entrepreneurs, venture capitalists, global giants and private firms.
- The final lesson-Western model is not needed always: India doesn’t need to be Western or Chinese to be modern. If our policymakers had copied Alipay or US banks, we wouldn’t have leapfrogged their birth defects.
Way forward
- Fix the deadline: The central government must deadline digitising all its payments.
- RBI implement 100+ action items: The RBI must implement the 100-plus action items arising from its own Vision 2021 document and the Nandan Nilekani Committee for Deepening Digital Payments.
- UPI for inward remittances: RBI must also make UPI and RuPay fit for use in our $70 billion inward remittances that currently come through exploitative financial institutions which don’t have clients but hostages.
- Replication of UPI in bank credit: The RBI must replicate the core design of UPI — fierce but sustainable private and public competition in bank credit-
- Our 50 per cent credit-to -GDP ratio is one of the reasons India is poor.
- China’s 300 per cent is the wrong number, but reaching the OECD average of 100 per cent needs the RBI to do many things-
- Raising its human capital and technology game in regulation and supervision.
- Catalysing an ecosystem for lending against the rapidly expanding digital exhaust of small firms and individuals.
- Issuing more private bank licences, facilitating management changes in old private banks with market caps that signal questions about book value, and shepherding governance and human capital revolution at PSU banks.
Conclusion
Converting the collective independence our citizens got in 1947 to individual freedom surely involved universal financial inclusion. The gap between this aspiration and reality was not a lie but a disappointment because our capital got handicapped without labour and our labour got handicapped without capital. Change has begun -the RBI, the finance ministry, and many individuals deserve our gratitude and dues for a billion digital payments a month. We now ask you for a billion digital payments a day.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Medical Termination of Pregnancy Act amendment and issues involved.
Context
The Union Cabinet’s approval of the amended Medical Termination of Pregnancy (MTP) Bill 2020 was reported on January 29. This amendment was long due and has made some anticipated changes demanded by women’s groups and courts, including the Supreme Court.
Why the amendment was necessitated?
- Abortion (unsafe) accounts for almost 10 per cent of maternal deaths in India.
- No provision to avoid unsafe abortion: The amended Act doesn’t have any new substantial provisions to avoid unsafe abortions.
- The right to safe abortion (at least till 12 weeks, when it is safer) would have made the state responsible to provide safe abortion services.
- Reduce the burden on judiciary: The proposed amendments will definitely reduce the burden on the judiciary, especially given the plethora of cases seeking permission for abortion beyond the prescribed duration of 20 weeks.
- Two types of Court cases: The court cases are broadly two types.
- The first group of cases: These are pregnancies that extend beyond 20 weeks of gestation as a result of rape, incest or of minor women.
- The new Act rightly addresses these by extending prescribed period abortion to 24 weeks.
- However, such cases form a minuscule proportion of the total number. For such cases, even the 24-week cap can be done away with, provided the abortions can be safely done.
- The second group of cases
- These are of pregnancies that become unwanted after congenital foetal anomalies are found upon testing.
- With advancements in prenatal foetal screening/diagnostic technologies, more such cases are knocking at the doors of courts.
- Marginal interval under the current act: Anomalies detected at 17-20 weeks provide only a marginal interval to conduct an abortion under the current Act.
- The extension to 24 weeks seems to give cover to these cases for abortion services, reducing the burden on courts.
How the law could be misused?
- Possibility of using any anomaly as a ground for abortion: The amendments have opened up the possibility for any congenital anomaly to be used as grounds for abortion.
- Anomalies which are incompatible with life provide grounds for access to abortion at any time during pregnancy -not just 24 weeks of gestation-as long as the woman desires it and it doesn’t endanger her health.
- But with advancements in diagnostic technologies, more anomalies will be detected, including those which are compatible with life.
- Social acceptability and anomaly: What constitutes an anomaly changes depending on what is considered socially desirable.
- Issue of raising children with disability: Technology-aided detection of “undesirability” could now find social support, as has been the case with female foetuses.
- This raises concerns that raising children with disability, especially in the absence of state support and poor social attitudes, could go down a similar path.
The risk to the life of women
- Abortion beyond 12 weeks carries serious health risks.
- 12 weeks provision under current law: Current law requires the expert opinion of two registered medical practitioners for the abortion beyond 12 weeks.
- Extending the limit to 20 weeks and risk involved: 12-week requirement has been delayed till 20 weeks, though the physiology of pregnancy and risks associated with procedures for second-trimester abortions haven’t changed significantly.
- Possibility of more complications: Without the strengthening of public services, easing second-trimester abortions between 12-20 weeks opens the possibilities of more complications and endangers the life of the woman.
Conclusion
With congenital anomalies as a ground for abortion, the eugenic mindset of having socially desirable children could push more women into risky late abortions. The approach of medical boards advising courts in cases of late abortions under this Act will be critical to balancing women’s right to choose with risk to the woman and the motives for abortion. The rules framed under the Act must address this in no uncertain terms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Suggest the ways to ensure the neutrality of the Speaker in cases under 10th Schedule.
Context
Recently the Supreme Court of India recommended that Parliament should rethink as to whether disqualification petitions ought to be entrusted to a Speaker as a quasi-judicial authority when such a Speaker continues to belong to a particular political party either de jure or de facto.
What the SC recommended?
- Provision of a ‘Permanent Tribunal’: The SC was of the opinion that Parliament may seriously consider a Constitutional amendment to substitute-
- The Speaker of the Lok Sabha and Legislative Assemblies with a ‘permanent Tribunal headed by a retired Supreme Court judge or a retired Chief Justice of a High Court.
- Or some other outside independent mechanism.
- What the ‘Permanent Tribunal’ achieve?
- Impartiality and timely decisions: This is to ensure that such disputes are decided both swiftly and impartially.
- Proper functioning of the democracy: It will give teeth to the provisions contained in the Tenth Schedule, which are so vital in the proper functioning of India’s democracy’.
Range of functions of the Speaker
- What is the nature of the duties of the Speaker?
- Role under 10th schedule: Under 10th Schedule, the nature of duties of the Speaker, is as an “arbiter” or a “quasi-judicial body”. But it also extends to a range of its functions.
- What other functions are performed by the Speaker? While facilitating the business of the House and to maintain decorum in the House, the Speaker has ‘extensive functions to perform in matters regulatory, administrative and judicial, falling under her domain.
- She enjoys vast authority under the Constitution and the Rules, as well as inherently’.
- Ultimate interpreter: She is the ‘ultimate interpreter and arbiter of those provisions which relate to the functioning of the House. Her decisions are final and binding and ordinarily cannot be easily challenged.
- She decides the duration of debates, can discipline members and even override decisions by committees.
- A representative of the House: She represents the collective voice of the House and is the sole representative of the House in the international arena’
Issue of alleged bias
- Allegations of bias by the Speaker: On several occasions, the Speaker’s role has been questioned on the allegation of bias. The office has been criticised for being an agent of pernicious partisan politics.
- The Supreme Court has observed in Jagjit Singh versus State of Haryana“…certain questions have been raised about the confidence in the matter of impartiality on some issues having political overtones which are decided by the Speaker in his capacity as a Tribunal.”
- As a minority view, Justice J.S. Verma in Kihoto Hollohan vs Zachillhu And Others observed: “The Speaker being an authority within the House and his tenure being dependent on the will of the majority therein, the likelihood of suspicion of bias could not be ruled out.”
- What is the problem with the neutrality of the Speaker? Howsoever desirable the proposition of neutrality maybe, in the present circumstances, it would be unrealistic to expect a Speaker to completely abjure all party considerations.
- Structural issues: There are structural issues regarding the manner of appointment of the Speaker and her tenure in office.
- Why the Speaker prefers to maintain party membership: A member is appointed to the office of the Speaker if a motion nominating her is carried in the House.
- Since the electoral system and conventions in India have ‘not developed to ensure protection to the office, there are cogent reasons for Speakers to retain party membership.
- Elections are not always by consensus and there have been cases when different parties have fielded their own candidates.
- All political parties campaign in the constituency of the Speaker.
- Even if the Speaker is re-elected to the House, the office of the Speaker in India is still open for elections’.
- Way forward
- Revamp the structure: What is required is not merely incidental changes in the powers of the Speaker; rather a major revamp in the structure of the office itself is necessary.
- How to ensure the neutrality of the Speaker? The scheme should be brought wherein Speakers should renounce all political affiliations, membership and activity once they have been elected, both within the Assembly and in the country as a whole.
- Replicating the UK model:
- Reference can be sought from the United Kingdom where the ‘main characteristic of the Speaker of the House of Commons is neutrality.
- Once elected, the Speaker gives up all-partisan affiliation, as in other Parliaments of British tradition, but remains in office until retirement, even though the majority may change.
- She does not express any political views during debates and is an election candidate without any ticket.
- Impartiality, fairness and autonomy in decision-making are the hallmarks of a robust institution.
- It is the freedom from interference and pressures which provide the necessary atmosphere where one can work with an absolute commitment to the cause of neutrality as a constitutional value.
Conclusion
At a time when India’s fall in ranks in the latest Democracy Index has evoked concern, it is expected that Parliament will pay heed to the reasoning of the Supreme Court and take steps to strengthen the institution of the Speaker.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- How could focusing on inclusive growth help spur the Indian economy.
Context
As the Indian economy is going through a severe crisis, a major solution to the present economic crisis is to go in for inclusive growth; it also means shared prosperity.
Where India stands on poverty and how the slowdown is impacting the poor.
- Bottom 30-40% adversely impacted: The slowing economy has had an adverse impact on the bottom 30%-40% of the population.
- Absolute poverty on the rise: The incidence of absolute poverty, which has been falling since 1972-73, has increased to 30% (4% jump).
- 44% population below the multi-dimensional Poverty line: The Human Development Report (2019) has shown, more than 44% of the Indian population is under the multi-dimensional poverty line.
- Rising inequality: The poorest 50% population at present owns only 4.1% of the national wealth.
- While the richest 10% of people own 73% of the total wealth in India (Suisse Credit 2019).
- Rampant malnourishment: India has 15.2% population malnourished (women 15%) as against 9.3% in China.
- And 50% of the malnourished children in the world are in India.
- At 112th position on global hunger: India’s global hunger rank has gone up to 112 while Brazil is 18, China is 25 and South Africa, 59.
- Dismal performance on education: In the field of education as per a UN report (2015), overall literacy in India is 74.04% (more than the 25% are totally illiterate) against 94.3% in South Africa, 96.6% in China and 92.6% in Brazil.
- Almost 40-45% population is either illiterate or has studied up to standard 4.
- Poor quality of education: Given the quality of education in India, the overall population is very poorly educated, with the share of ‘educated unemployment’ rising by leaps and bounds.
What needs to be realised?
- Focus on domestic demand: It needs to be realised that when exports are declining, the economy will have to depend on domestic demand for growth.
- It is no more feasible for the top 20-25% population to continue growing without depending on the demand from the bottom 40-45% population.
- Demand by the bottom 40% a must: There is thus a strong reason now for the economy to increase effective demand of this bottom 40-45% population at least to continue growing-to reach a $5-trillion economy by 2024.
What is wrong with the growth process?
- Bottom 40% not getting the fair share of growth: A major reason for the crisis is that the growth process has marginalised the bottom 40-plus% of the population.
- It is in the sense that they do not get a fair share of the economic growth, and are more or less deprived of productive employment with a decent income.
- They have not been used as active participants in the growth process. Their potential has not been promoted.
- Less spending for the poor and its consequences: Though the bottom population depends on the government for basic health and elementary education (and also for access to higher educational opportunities)-
- The government spends just 4% of GDP on health (against the norm of 4-6% of GDP) and 3% of GDP on education (against the norm of 6-8% of GDP).
- How this dismal spending affects the poor: As a result of this below norm spending, these people are left hardly literate and sick, with poor nutrition and high morbidity.
- They are incapable of acquiring any meaningful skills or participating actively when new technology is spreading in the rest of the economy.
- The sub-optimal use of labour force: This sub-optimal use of the labour force in the economy is not likely to enable India to achieve optimal growth with proper use of the national resources -the labour force.
Inclusive growth- a solution to the present economic crisis
- Inclusive growth also includes shared prosperity: Here, inclusive growth does not mean only including all sections of the population in the growth process as producers and beneficiaries; it also means “shared prosperity”.
- Since India has already committed to sustainable and inclusive growth at the UN General Assembly, India is definitely obliged to implement inclusive growth.
- This should be our “New India”.
- What “New India” would involve?
- Improve the capability and opportunities: To start with, to improve the capabilities of the masses as well as their well-being by expanding productive employment opportunities for them.
- What expanding productive employment mean? The main steps to expand productive employment for all in the economy should be made up of-
- A process of inclusion.
- Expanding the quality of basic health for all.
- And ensuring quality education to all.
- How will “New India” help?
- Which will by itself generate large-scale employment in the government.
- Having a well-educated and healthy labour force will ensure high employability.
- Such people will be able to participate actively in the development process.
- The cycle of more productive employment: Having a well-educated labour force will help start-ups and MSMEs, in turn triggering a cycle of more productive employment in the economy.
- Global competitiveness increase: This will also improve the global competitiveness of our production units.
- Labour absorption potential of MGNREGA: Employment guarantee schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will also increase employment.
- Assets generated under MGNREGA will expand capital formation in the economy, thereby raising the labour-absorbing capacity of the mainstream economy.
- Why this strategy is advantageous?
- Such a strategy has multiple advantages:
- First– it will raise incomes and the well-being of those who need it most urgently.
- Second– it will raise effective demand rapidly, which is so badly needed in the economy today to raise economic growth.
- Third– growth will be equitable and sustainable.
Way forward
- Finally, how does one raise resources to increase new public investments in the selected sectors?
- Raise direct taxes: One major strategy is to raise direct taxes, both capital tax and wealth tax.
- Past growth has failed to reach the poor: Growth led by providing tax cut and extra incentives, but this growth does not much percolate to the poor.
- Consequently, taxing the rich has to be a major strategy to raise government revenue.
- Treat public expenditure as an investment: The public expenditure on raising capabilities should be treated as social investment rather than social welfare, policymakers will be willing to spend on this capital formation.
- Let the fiscal deficit slip: Finally, there was no sound economic reason to control fiscal deficit ratio. Sound macroeconomics never supports this.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- India-France relations
Context
Defence cooperation has been one of the fundamentals of the bilateral relationship between India and France, which developed a close and ambitious strategic partnership for over 20 years.
Defence cooperation between France and India
- A long history of cooperation: The defence cooperation between our two countries can be traced back to the first few years following India’s Independence.
- As early as 1953, the Indian Air Force was equipped with a hundred Toofani fighter jets from Dassault, then the Mystère IV, which defended India in tough times.
- This marked the first page in the history of cooperation in military aviation, which also recorded the supply of 60 Mirage 2000s in the 1980s.
- Rafale deal: The ongoing delivery of 36 Rafales is being done as per the schedule.
- The first batch of aircraft, currently being used to train Indian pilots, will land at Air Force Station Ambala within a few months.
- Partnership in maritime domain: Today, the partnership has been deployed in the maritime domain, in support of our joint strategic vision for the maintenance of stability and security in the Indo-Pacific.
- As far as naval equipment is concerned, the Indian Navy has already commissioned two of the six submarines built in Mumbai as part of an industrial partnership between Mazagon Dock Shipbuilders Limited (MDL) and Naval Group.
Industrial cooperation between the two countries
- Support to indigenous production: As for industrial cooperation, the French approach has always been, whenever possible, to offer partial indigenous production in India.
- France was largely a precursor with regard to Make in India, with HAL manufacturing the light helicopters Cheetah and Chetak, and BDL’s Milan anti-tank missile in India in the 1960s.
- It continues this policy today. The plant built under the Dassault Aviation and Reliance joint venture will enable, for example, the complete production of the Falcon 2000 business jet here in India by 2022.
- Transfer of technology: After the delivery of the first two Scorpene submarines, transfers of technology provided by the Naval Group enabled MDL to be solely in charge of building the next four submarines.
- The design of these submarines has thus become largely Indian knowhow.
- Safran will soon inaugurate an aircraft wiring systems factory in Hyderabad and also build another major facility to manufacture LEAP turbofan engine components.
- Thales is investing massively in engineering works in Bengaluru, MBDA is building a plant in Coimbatore and French aeronautical equipment manufacturer Latécoère recently inaugurated a factory in Belgaum.
Opportunities for further cooperation
- Developing the supply chain at all the levels: The French aerospace industries association, GIFAS, and GICAN, the French Marine Industry Group, are organising a seminar focused on this subject during DefExpo.
- Along with the Society of Indian Defence Manufacturers (SIDM), they are exploring opportunities for developing Indo-French industrial partnerships at all stages of the production chain.
- Promoting Make in India: India can count on France being by its side for its Make in India enterprise.
Conclusion
India and France both share the same vision for a new balanced multipolar world, which must be based on the rule of law. They also share the same vision on the main challenges of the times, be they security developments in Asia and the Indo-Pacific, or combating international terrorism. But it is by possessing the capability of ensuring national security and making strategic choices that most efficiently defend their shared principles and visions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Expanding the India's sphere of influence in IOR and humanitarian assistance in the region.
Context
Earlier this week, India sent an amphibious warship, INS Airavat, to Madagascar in the Indian Ocean Region (IOR) to help in rescue efforts after the island nation was hit by a cyclone.
Humanitarian operations- Key component of peacetime strategy
- A key component in IOR: In recent years, humanitarian operations have emerged as a key component of the Indian Navy’s peacetime strategy in the IOR.
- In March 2019, the Navy deployed four warships for relief operations when Mozambique was hit by Cyclone Idai.
- Indian naval teams played a stellar role in search and rescue operations and even set up medical camps.
- A few months later, the Navy sent two warships to Japan to assist in rescue efforts following Typhoon Hagibis.
- A year earlier, Indian vessels had delivered urgent medical assistance to Sulawesi, Indonesia, after it was struck by a high-intensity earthquake.
- Operation Samudra Maitri was launched after a telephonic conversation between Prime Minister Narendra Modi and Indonesian President Joko Widodo, with naval planners mobilising assets and relief material in quick time.
- India’s vision for IOR: The Navy’s new humanitarian approach, many says, is a maritime manifestation of India’s vision for the IOR, christened SAGAR (Security And Growth for All in the Region).
- Lesson’s from tsunami: The Navy’s turn towards human-centred maritime security isn’t recent. It was in the aftermath of the 2004 tsunami that naval commanders first recognised the importance of large-scale relief and rescue missions in the IOR.
- For over a decade, considerable resource and energy have been spent developing specialist capability and skills for naval humanitarian operations.
India- A regional security provider
- What is changing in India’s stance: What’s new today is New Delhi’s resolve to burnish its ‘regional security provider’ credentials.
- The Navy has reached out to countries across the Indo-Pacific region, with greater deployment of assets, personnel and specialist equipment, showcasing an ability to undertake complex and diverse missions.
- The highpoint for India: The highpoint of the Navy’s ‘benign’ efforts was the evacuation of over 1,500 Indian expatriates and 1,300 foreign nationals from Yemen in 2015 amid fighting for control of Aden.
- Three years later, Indian naval ships were in Yemen again, to evacuate 38 Indians stranded in the cyclone-hit Socotra Island.
How the new role could help India?
- India’s desire to be the linchpin of security: The Navy’s humanitarian impulse stems from a desire to be a linchpin of security in the IOR.
- The concept of the first responder: At the core of the evolving operations philosophy is the concept of ‘the first responder’, with the capability and willingness to provide assistance.
- Extension of the sphere of influence: The above approach has the potential to create an extended sphere of Indian influence in the IOR.
- Projection of soft power: Naval leaders recognise that benign missions help project Indian soft power and extend New Delhi’s influence in the littorals.
- Creating goodwill: Prompt response during a humanitarian crisis helps generate political goodwill in the neighbourhood.
Cause for caution with maritime presence
- The issue with prolonged presence: While low-end naval assets in humanitarian mode create strategic equity for India, the prolonged presence of front-line warships in foreign waters has the potential to make partners anxious.
- Shaping perception over naval presence: Naval power, experts underline, must be deployed discreetly, shaping perceptions in subtle ways.
- Need to hide the underlying intent: The key is to not let the underlying intent of a mission appear geopolitical.
- To ensure that motives aren’t misunderstood, and the assistance provided is efficient and cost-effective, it is best to use dedicated disaster-relief platforms.
- India lacking inventory hospital ship: However, unlike the U.S. and China that have in their inventory hospital ships fully equipped for medical assistance, India deploys regular warships and survey ships converted for medical aid.
- India’s improvised platforms do not match the U.S. Navy’s medical ship USNS Mercy or the People’s Liberation Army Navy’s Peace Ark.
Need for greater coordination
- The Navy’s expanding array of humanitarian missions reveals a need for greater coordination with the Indo-Pacific navies
- In particular the U.S. Navy, the Royal Australian Navy and the Japanese Self-Defense Forces- which possess significant experience and assets to mitigate humanitarian threats.
Conclusion
As natural disasters in the IOR become more frequent and intense, India’s regional security role is likely to grow exponentially. At the forefront of disaster scenarios, the Indian Navy and Coast Guard would find themselves undertaking demanding missions. Humanitarian operations could serve as a springboard for a larger cooperative endeavour in the maritime commons.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India's role and interest's in IMO and consequences.
Context
The International Maritime Organization (IMO), had mandated that merchant ships should not burn fuel with sulphur content greater than 0.5% beginning January 1.
Why the new sulphur content limit matters?
- The previous limit of 3.5 %: Before the ban, fuel had a comfortable sulphur content limit of 3.5%, which was applicable to most parts of the world.
- Problem with low content fuel: Many industry professionals feared that the new very-low-sulphur fuel would be incompatible with the engines and other vessel equipment.
- Problems with past US limits: Past mandates on sulphur limits in American waters had led to many technical problems. There have been instances of ships having been stranded after fine particles separated out from the fuel, damaging equipment and clogging up devices.
How such regulations matter for India?
- Sulphur cap one of the many problems: The global sulphur cap is only one of the many environment-related regulations that have been shaking up the shipping industry.
- The industry is generally risk-averse and slow to accept changes.
- For instance, efforts are ongoing to reduce nitrogen oxides (NOx) and ozone-depleting gases.
- IMO project to decarbonise shipping: Further, the IMO has announced an ambitious project to decarbonise shipping in order to reduce carbon emissions.
- How it matters for India? These regulations are triggering massive technological, operational and structural changes.
- They come at a price which will have to be borne to a large extent by developing countries such as India.
- India among 10 countries: The IMO currently lists India as among the 10 states with the “largest interest in international seaborne trade”.
- Inadequate participation of India: But India’s participation in the IMO to advance its national interests has been desultory and woefully inadequate.
- How it could matters: The sulphur cap, for instance-
- Will reduce emissions.
- Reduce the health impact on coastal populations but-
- Ship operational costs are going up since the new fuel product is more expensive.
- Refineries struggling to meet demand: As refineries including those in India struggle to meet the demand, freight costs have started moving up, with a cascading effect on retail prices.
Significance of shipping and the role of IMO
- Significance of shipping: Shipping, which accounts for over 90% by volume and about 80% by value of global trade.
- Role of IMO: It is a highly regulated industry with a range of legislation promulgated by the IMO.
- The IMO currently has 174 member states and three associate members; there are also scores of non-governmental and inter-governmental organisations.
- The IMO’s policies or conventions have a serious impact on every aspect of shipping including the cost of maritime trade.
- How IMO functions
- The IMO, like any other UN agency, is primarily a secretariat, which facilitates decision-making processes on all maritime matters through meetings of member states.
- How treaties are made? The binding instruments are brought in through the conventions -to which member states sign on to for compliance -as well as amendments to the same and related codes.
- Structure of IMO: Structurally, maritime matters are dealt with by the committees of the IMO –
- The Maritime Safety Committee (MSC).
- Marine Environment Protection Committee (MEPC).
- Technical Cooperation Committee.
- Legal Committee and the Facilitation Committee.
- Each committee is designated a separate aspect of shipping and supported by sub-committees. Working groups and correspondence groups support the subcommittees.
- Role of subcommittees of IMO: The subcommittees are the main working organs, where the proposals from a member state are parsed before they are forwarded to one of the main committees.
- The main committees, thereafter, with the nod of the Assembly, put the approved proposal for enactment through the Convention, amendments, and codes or circulars.
India’s inadequate efforts at protecting the interest
- How other countries deal with the issues: To ensure that their maritime interests are protected, the European countries move their proposals in unison and voting or support are given en bloc.
- Permanent representative: China, Japan, Singapore, Korea and a few others represent their interests through their permanent representative as well as ensuring that a large delegation takes part and intervenes in the meetings.
- How India is falling short? While these countries have fiercely protected their interests, India has not.
- No permanent representative: For example, its permanent representative post at London has remained vacant for the last 25 years.
- Representation at meetings is often through a skeletal delegation
- India’s presentation inadequate: A review of IMO documents shows that the number of submissions made by India in the recent past has been measly and not in proportion to India’s stakes in global shipping.
- “High-Risk Area” demarcation issue: The promulgation of “High-Risk Areas” when piracy was at its peak and dominated media headlines.
- What happened in the issue? The IMO’s demarcation resulted in half the Arabian Sea and virtually the entire south-west coast of India being seen as piracy-infested, despite the presence of the Indian Navy and Coast Guard.
- The “Enrica Lexie” shooting incident of 2012, off the coast of Kerala, was a direct fallout of the demarcation.
- What were the consequences of the demarcation issue?
- Increase in insurance costs: The “High-Risk Area” formulation led to a ballooning of insurance costs; it affected goods coming into or out of India.
- It took great efforts to revoke the promulgation and negate the financial burden.
- The episode highlighted India’s apathy and inadequate representation at the IMO.
- NavIC introduction difficulty: There was also great difficulty in introducing the indigenously designed NavIC (NAVigation with Indian Constellation) in the worldwide maritime navigation system.
- What could be the consequences in future?
- EU’s documented procedure: In contrast, the European Union has a documented procedure on how to influence the IMO.
- Agenda driven by developed countries: New legislative mandates, fitment of new equipment and changes to ship structural designs being brought on have been driven by developed countries.
- Consequences for India: All the issues pushed by developed countries are not entirely pragmatic from the point of view of India’s interests.
- Further, it will not be mere speculation to see them as efforts to push products and companies based in the West.
Conclusion
So far, India’s presence and participation in the IMO has been at the individual level. India should now make its presence felt so that its national interests are served. It is time India regained its status as a major maritime power.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Government budget- allocations to various sectors-how it could help revive the economy.
Context
The disconnect between Budget and Economic Survey is much greater this year.
Background of the economy as the budget is introduced
- The 2020 Budget was presented against the background of-
- Slowing economy.
- Poor investment climate.
- Declining consumption demand and
- Stagnant exports.
- The steady deceleration in growth, which registered at 4.5 per cent in the second quarter of the current fiscal — the lowest in the last 26 quarters — presented a challenge as well as an opportunity.
Infrastructure investment
- The hope of substantial increase in allocation for infra: The hope was that there will be a substantial increase in infrastructure investment, which in turn will trigger investment demand, but the actual allocations are not promising.
- This was particularly surprising in the wake of the recent announcement that there will be an investment of Rs 103 trillion in the next five years to leapfrog India to a $5-trillion economy.
- Private sector expected to contribute: Much of the investment for this will have to be made by the private sector and it is hoped that the allocation of Rs 20,000 crore in equity in specified infrastructure finance companies will help them to leverage more than Rs 1 lakh crore of investment support.
Budgetary allocation for capital expenditure
- 1.7% of GDP to 1.8 %: The budgetary allocation for capital expenditure for the current year, which is estimated at 1.7 per cent of GDP this year, is budgeted at 1.8 per cent in 2020-21.
- Agriculture, irrigation and rural development: The Budget also contained 16 action points on agriculture, irrigation and rural development and the Rs 2.83 lakh crore allocation is higher than the budget estimate for the previous year by just 2.5 per cent and revised estimate by 13.2 per cent.
- But the allocation looks impressive only because there was a massive cut (Rs 26,000 crore) in the budget estimate over the revised estimate.
- Transport infrastructure: The allocation to transport infrastructure in the Budget- at Rs 1.7 lakh crore-is just 7.6 per cent higher than the revised estimate for 2019-20.
- MGNREGA and PM-Kisan Samman Nidhi: The allocations to schemes like the MGNREGA has been cut from Rs 71,002 crore (RE) in the current year to Rs 61,500 crore in 2020-21.
- PM Kisan Samman Nidhi: For schemes like PM Kisan Samman Nidhi, it is just as much as was budgeted for 2019-20.
- As a consequence, not much is expected in terms of propping up the consumption demand.
Slippage in fiscal deficit
- Increase in fiscal deficit expected: The slippage in fiscal deficit from the target set in the budget estimate in 2019-20 was expected for the following reasons-
- Below expected nominal GDP growth: Nominal GDP growth was 7.5 per cent as against the estimated 12 per cent in the budget.
- Overestimation in the growth of tax revenue at 18.3 per cent over the pre-actuals of the previous year.
- Missed disinvestment target: The slippage in achieving the disinvestment target of Rs 1.03 lakh crore.
- Thus, it is not surprising that the fiscal deficit for the current year stands estimated at 3.8 per cent of GDP and for the next year at 3.5 per cent.
- Off-budget financing: The major concern is that the reported off-budget financing is almost 0.85 per cent. This does not capture the bills and refunds payable by the government.
Would the budgeted and revised estimates realise?
- On disinvestment front: The disinvestment revenue is estimated at Rs 65,000 crore though the realisation so far has been just Rs 18,000 crore, which implies another Rs 47,000 crore will have to be mobilised in the next two months.
- On tax revenue front: The RE of tax revenue for the current year is over 14 per cent higher than the actual for 2018-19.
- This is perhaps predicated on the hope that the scheme, “Vivad se Vishwas”, which allows the settlement of disputed tax to be paid without interest and penalty.
Tax reforms in the budget
- DDT abolition: On tax reforms, the abolition of dividend distribution tax (DDT) was expected.
- Complicating Income tax: The reforms in individual income tax complicates the tax by creating six brackets.
- The best practice approach to tax reform is to broaden the base, reduce the rates and reduce the number of brackets to make it a simple tax.
- What could have been done? The government could have simply-
- Phased out the tax concessions.
- Indexed the brackets for inflation and
- Reduced the rates of tax with an appropriate adjustment in the brackets.
Conclusion
The impact of fiscal developments on the states’ finances is clearly adverse. The shortfall in tax devolution in 2019-20 from the budgeted amount works out to Rs 1.53 lakh crore and the total shortfall in transfers amounted to Rs 1.41 lakh crore. Besides starving funds for various projects, this has serious repercussions on budget management at the state level.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India's preparedness for the public health response to outbreak of epidemic.
Context
In some ways, China is setting the standard for a public health response that may become a way of life in the 21st century.
Origin of the outbreak and deadly it could turn out?
- Outbreak of unknown virus: In December 2019, an outbreak of viral pneumonia of unknown etiology emerged in Wuhan, a city in the central Chinese province of Hubei.
- Discovery of novel coronavirus: A few weeks later, the World Health Organization (WHO) and Chinese health authorities announced the discovery of a novel coronavirus, known now as 2019-nCoV, as being responsible for the pneumonia.
- Important questions: The two most important questions asked in a fast-evolving pandemic of this nature are:
- 1) How deadly is the disease, and;
- 2) Can it be contained?
- The latest available figures suggest that the death toll in China is 304 and 14,411 have been infected. The current fatality rate estimate of 2% is unstable and is likely to fall as more cases are detected.
Containment attempts by China and spread to the other countries
- Unprecedented attempt by China: The attempt at containment started late, but has never been attempted in the fashion that China has gone about it.
- Wuhan lockdown: Belatedly, on 23 January, China locked down Wuhan and 12 other cities, quarantining 52 million people in one sweeping action.
- This is the first known case in modern history of any country locking down an entire large city.
- Reports of confirmed cases from other countries: Confirmed cases have since been reported from Hong Kong, Macau, Taiwan, Thailand, South Korea, Japan, Singapore, Australia and the US.
- India reported its first case from Kerala of a medical student from Wuhan University, followed by two more.
- Singapore and the US have now banned foreign nationals who have recently been in China from entering the country.
- Russia, Canada, the UK and India have begun evacuating citizens from Hubei province.
Research on coronavirus so far
- Coronaviruses (CoVs) are characterized by club-like spikes that project from their surface, an unusually large RNA genome and a unique replication strategy.
- CoVs cause a variety of diseases in mammals and birds, ranging from enteritis in hoofed animals to potentially lethal human respiratory infections.
- Genome sequence: The 2019-nCov genome was sequenced in China in early January and reported in The Lancet last week.
- It suggests that the original host of this coronavirus was a bat reservoir, though it is unclear whether there was an intermediate host.
- A recent entry to the human host: The uniformity of the sequenced genome suggests that the virus has entered human hosts very recently.
- Recent emergence from the animal reservoir: Several other countries, including the US and France, have sequenced the RNA of the 2019-nCoV as well. These sequences and their similarity to the initial samples from China suggest a single, recent emergence from an animal reservoir.
Tests and vaccine development
- How is the virus tested? Testing for 2019-nCoV requires a reverse transcription polymerase chain reaction test (RT-PCR) which converts RNA into DNA, making study and comparison easier.
- No vaccine yet: There are no vaccines yet for this virus, but promising paths have been identified, borrowed from the SARS related vaccines.
- Development of an effective vaccine may only come after the 2019-nCoV is contained, but it may still be useful if there were to be a subsequent outbreak.
- The frequency of future outbreaks is only likely to increase because of climate change, global travel and fast mutating viruses.
What lessons can India learn?
- Develop framework and capacity: For India, this global health emergency should serve as an eye-opener.
- If lockdown turns out to be a useful tool to prevent the spread of a deadly virus, India will need to develop the framework and capacity to implement such a drastic measure.
- Under-equipped municipalities: Our municipalities are hopelessly under-equipped to implement strict isolation and containment strategies.
- We will need to develop the capacity to build large facilities for housing patients in isolation wards.
- Use of pre-cast: This will require India to accelerate the use of construction methods like pre-cast technology.
- Protocol and instructions: The National Centre for Disease Control (NCDC) has been proactive in updating its protocol related to the 2019-nCov and has clear instructions for reporting and assay preparation.
- Develop capacity in geographically diverse regions: Samples in India need to be sent to the National Institute of Virology in Pune.
- While the public health and epidemic escalation framework appears capable of handling a small number of cases well, it is not clear how it will stand up to a large number of cases in a specific geographic region.
Conclusion
“Nothing happens quite by chance. It is a question of accretion of information and experience,” said Jonas Salk, the virologist who developed the polio vaccine, in some ways, China is setting the standard for a public health response that may become a necessary way of life in the 21st century. India must use this as a guidepost to greater preparedness.
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Context
On January 31, 2020, the United Kingdom left the European Union, the EU project will be taken forward by the 27 member states.
A structured exit
- Minimum disruption: This is largely thanks to the Withdrawal Agreement that was negotiated with the U.K., which enabled “an orderly Brexit”.
- One that, at least for now, minimises disruption for our citizens, businesses, public administrations, as well as for our international partners.
- An arrangement of the transition period: Under this agreement, the EU and the U.K. agreed on a transition period, until the end of 2020 at least.
- During which the U.K. will continue to participate in the EU’s Customs Union and in the Single Market, and to apply EU law, even if it is no longer a Member State.
- During this period, the U.K. will also continue to abide by the international agreements of the EU, as we made clear in a note verbale to our international partners.
Building a new partnership between the EU and the UK
- Degree of continuity: With the transition period in place, there is a degree of continuity. This was not easy given the magnitude of the task.
- By leaving the Union, the U.K. automatically, mechanically, legally, leaves hundreds of international agreements concluded by or on behalf of the Union.
- Building new partnership: That work will start in a few weeks as soon as the EU 27 Member States have approved the negotiating mandate proposed by the European Commission, setting out our terms and ambitions for achieving the closest possible partnership with a country which will remain EU’s ally, partner and friend.
- Links and shared values: The EU and the U.K. are bound by history, by geography, culture, shared values and principles and a strong belief in rules-based multilateralism. Our future partnership will reflect these links and shared beliefs.
- Working on topics beyond trade: Both sides want to go well beyond trade and keep working together on security and defence, areas where the U.K. has experiences and assets that are best used as part of a common effort.
- Cooperation on the wide topics: In a world of big challenges and change, of turmoil and transition, we must consult each other and cooperate, bilaterally and in key regional and global fora, such as the United Nations, the World Trade Organization, the North Atlantic Treaty Organization or the G20.
- Collective responses to handle global challenges: Today’s global challenges- from climate change to cybercrime, terrorism or inequality — require collective responses.
- The more the U.K. is able to work in lockstep with the EU and together with partners around the world, the greater would be chances of addressing these challenges effectively.
Way forward
- Continuing project forward as 27: At the very core of the EU project is the idea that it is stronger together; that pooling resources and initiatives is the best way of achieving common goals. Brexit does not change this, and efforts must be taken to continue this project forward as 27.
- Note for the partners: EU’s partners can be sure that EU will stay true to an ambitious, outward-looking agenda-be it on trade and investment, on climate action and digital, on connectivity, on security and counter-terrorism, on human rights and democracy, or on defence and foreign policy.
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