21-24 oct - 6 nov

Double Issue: From October 24 to November 6, 2011

National & Social Affairs

Current Events Snippets Important for the IAS Preliminary Examination & 2-mark and other short questions in the IAS Main

Examination |Words in bold are key terms or facts

Schemes for Naxal affected district

As a strategy to ensure swift development in Naxal affected areas of the country, the Centre

has planned to provide jobs to three-lakh youth in the 60 left wing extremist affected districts in the

country. In adition. The Government also plans to carry out immediate appointment of 18,000

panchayat development officers and about the same number of junior engineers.

Other measures have also been taken as part of the Integrated Action Plan (IAP) under Planning

Commission recently.

They are as follows.

1.For better implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme

(MNREGS), each panchayat will appoint one panchayat development officer and a junior engineer

for a period of 10 years from within the district.

2.All these districts would be covered under the National Rural Livelihood Mission (NRLM) by March

2013 with the objective of training and providing jobs to three lakh youths over the next five years.

3.To ensure a better return to the tribals, a public-private partnership (PPP) pilot project in non-

timber forest produce will be launched in one district each of Orissa, Jharkhand, Chhattisgarh,

Maharashtra, Madhya Pradesh and Andhra Pradesh.

4.Private companies will add value by training women self-help groups (SHGs) and marketing the

non-timber produce.

5.The district administration is to construct houses under the Indira Aawas Yojana (IAY) for the

disabled, widowed and old age pensioners.

6.Irrespective of socio-economic standing, the Government would provide a house under the IAY to

those whose house had been damaged in a Naxalite attack.

Collapse of a wooden footbridge in Bijanbari area of Darjeeling district

Recently, there was an unfortunate collapse of an old wooden footbridge in Bijanbari area of

Darjeeling district under the weight of the hundreds who had gathered on it on the concluding day

of a five-day cultural festival organised by the Gorkha Janamukti Morcha (GJM). A total of 32 people

were killed in the incidence. The victims include 19 women and three children. The State

Government has announced a financial assistance of Rs. 2 lakh to the next of kin of those who died.

A compensation of Rs. 50,000 will be given to those seriously injured and Rs. 25,000 to those with

minor injuries. The State will bear the medical expenses of the victims.

Collapse of a wooden footbridge in Arunachal Pradesh

A second deadly footbridge collapse took place within a week of the Bijanbari incident in Darjeeling

district of West Bengal state, leaving 31 people dead.

This time a wooden foot bridge collapsed in Arunachal Pradesh in the town of Seppa is 40 feet (12

meters) above the Kameng River. The Kameng River is rocky with a swift current in the area, which

contributed to the casualties. Two bodies have been recovered but 30 other people were feared

drowned, mostly women and children.

Townspeople had crowded onto the bridge to cross into a forest to hunt for a seasonal insect, ateri,

which is eaten as a delicacy locally.

One Crore Women Registered Under Mother and Child Tracking System

The Mother and Child Tracking System is an e-governance initiative of the Ministry of Health and

Family Welfare started in 2010.

The MCTS collates information of all pregnant women and infants. Under MCTS, an online

registration system has been developed for the purpose, in collaboration with the National

Informatics Centre. It ensures delivery of maternal and child health services. It covers mothers from

conception till 42 days after delivery. The infants are covered up to five years of age. Thus, the

pregnant women and all new born receive full maternal and immunization services respectively.

The total number of pregnant women registered in MCTS recently crossed the one crore mark. The

number of children registered in the system is also expected to cross 50 lakh soon.

Scheme for creation of National Optical Fiber Network for Broadband

connectivity of Panchayats

The Union Cabinet has approved a scheme for creation of a National Optical Fiber Network (NOFN)

for providing Broadband connectivity to Panchayats.

The objective of the scheme is to extend the existing optical fiber network which is available up to

district / block HQs level to the Gram Panchayat level.

In economic terms, the benefits from the scheme are expected through additional employment, e-

education, e-health, e-agriculture etc. and reduction in migration of rural population to urban areas.

As per a study conducted by the World Bank, with every 10% increase in broadband penetration,

there is an increase in GDP growth by 1.4%. NOFNwill also facilitate implementation of various e-

governance initiatives such as e-health, e-banking, e-education etc.thereby facilitating inclusive

growth. It will also provide high bandwidth connectivity for electronic delivery of services to citizens.

Setting up of National Institute of Mountaineering & Allied Sports at Dirang in

Arunachal Pradesh

The Union Cabinet recently approved setting up of a National Institute of Mountaineering & Allied

Sports (NIMAS) at Dirang in Arunachal Pradesh as an autonomous institute under the Ministry of

Defence.

It would be a training institution for multifarious adventure activities relating to land, air and aqua to

attract adventure enthusiasts.

This Institute would be first National Institute of its kind.

Nargis Yadav becomes the worlds 7 billionth baby

Nargis Yadav born at 7.20 a.m. on October 31, 2011 near Lucknow became the world's symbolic

seven billionth baby. Her parents, Vineeta and Ajay Yadav are farmers from Dhanaur village on the

outskirts of Lucknow.

Countries around the world have been marking the demographic milestone in a variety of ways. The

Philippines was the first country to declare a seven billionth baby, a little girl named Danica May

Camacho. In Sri Lanka, the country celebrated the arrival of Wattalage Muthumani, who was born at

the Castel Street Maternity Hospital, as the seventh billion.

From 238.4 million in 1901, India's population has increased more than four times in 110 years to

touch the 1.2 billion mark, according to the provisional figures of the 2011 Census, accounting for a

17.5 per cent of the world's population. The country's population is almost equal to the combined

population of the U.S., Indonesia, Brazil, Pakistan, Bangladesh and Japan.

Statistics suggest that India is now made up of two contrasting demographic nations: Andhra

Pradesh, Karnataka, Kerala and Tamil Nadu - have already achieved the replacement level fertility of

2.1 children per woman required to initiate the process of population stabilisation, while the four

large north Indian States - Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh - have a long way to

go.

Manipur blockade enters 100 days

The Issue: Since August 2011, Manipur has been under an economic blockade called by the Sadar

Hills Districthood Demand Committee (SHDDC). This and a counter-blockade by the United Naga

Council (UNC) on the national highways have caused severe shortages of food, medical supplies, fuel

and other essential items. As a result, hospitals are running short of medicines. Petrol, diesel and

LPG are in short supply, and are being sold at exorbitant prices. Onion, potato, rice and other food

items are similarly scarce and expensive.

So far, no concrete step has been taken for dealing with this crisis.

Reasons: Blockades in Manipur have been driven largely by ethnic politics and the geographical

circumstances. The polity of Manipur is seen to be largely driven and controlled by the Meiteis.

Thus the blockades either have the character of of majoritarianism by the Meiteis against the other

communities, or a protest against the Government of Manipur mostly target the Meitei population.

The Sadar Hills Issue: In the recent blockade, the Sadar Hill issue has also come to the fore. The

blockade on the national highways 53 and 39 was first imposed by the Sadar Hills Districthood

Demand Committee (SHDDC) from August 1. Its demand was the creation of a separate district of

Sadar Hills out of the current Senapati district of which it is a part of. This otherwise simple

administrative procedure is extraordinarily complicated in the context of Manipur. Senapati district

happens to be inhabited largely by different communities of the Kukis, the Nepalis, and the Nagas.

Within the district, Sadar Hills is dominated demographically by the Kukis. A demand for a separate

district of the Sadar Hills is resented by the Nagas. They fear it would jeopardise their claim for a

greater Nagalim.' Therefore, the United Naga Council (UNC) called for a counter economic

blockade on these highways from August 21 onwards fearing the possibility of Senapati district being

bifurcated.

Given the history of ethnic clashes between the Nagas and the Kukis in the hills of Manipur

beginning in the early 1990s when Senapati district was one of the worst affected, the atmosphere

has been tense.

Supreme Court rules that the Centre has complete Powers to decide the Terms

and Conditions for Telecom Operators

The Supreme Court of India ruled that the Centre has absolute powers to decide the terms and

conditions for telecom operators as neither the Telecom Regulatory Authority of India, TRAI, nor the

Telecom Disputes Settlement and Appellate Tribunal, TDSAT, can overrule it.

The apex court ruled, though TRAI was conferred with the statutory power to recommend the terms

and conditions of the license and the Central Government was bound to seek its recommendations,

yet, the same was not binding on it.

Supreme Court of India directs Accident Tribunals to award Adequate

Compensation to the Victims

The Supreme Court of India directed Motor Accident Claims Tribunals to award just and adequate

compensation to the victims. The bench ruled that in cases involving partial or total disablement, the

term compensation used inSection 166 of the Motor Vehicles Act will cover not only the expenses for

immediate treatment but also for future medical treatment.

Indian Railways launches Real-time Train Information System (RTIS) for 12

Important Trains which passengers access from running information

The Indian Railways on 19 October 2011 launched a real-time train information system (RTIS) for 12

important trains through which passengers can access the accurate train running information.

The GPS-based train tracking system was jointly developed by the Research Design and Standards

Organisation (RDSO), Lucknow and Indian Institute of Technology (IIT), Kanpur to overcome the

limitations of the existing Train Running Information System.

This facility has been provided for certain Rajdhani Expresses and Shatabdi Expresses.

Delhi's Per Capita Income at Current Prices Third in the Country behind Goa &

Chandigarh

According to the Delhi Statistical Handbook-2011 released by Chief Minister Sheila Dikshit on 3

November 2011, Delhi's per capita income at current prices was Rs 116886 during 2009-10,

recording an increase of Rs.13446 over 2008-09. Delhi therefore ranked third in the country behind

Goa at Rs.132719 and Chandigarh at Rs.120912.

On an average, a Delhiite earns Rs.1.16 lakh a year, owns 2.5 mobile phones, watches nearly two

movies annually, gets a supply of 50 gallons of water each day and consumes over a case and

quarter of liquor in a year.

Andhra Pradesh Government launches One Rupee a Kilo Rice Scheme in the State

Andhra Pradesh Government on 1 November 2011 launched one rupee a kilo rice scheme in the

state. Chief Minister N. Kiran Kumar Reddy launched the scheme at a special programme held in

Hyderabad on the occasion of the 56th State Formation Day.

The scheme would benefit about 7.50 crore people in the state. With the new initiative, the subsidy

burden over the state Government will go up by 600 crore rupees to a total of 2600 crore rupees.

Uttarakhand State Cabinet Clears Uttarakhand Lokayukta Bill, 2011

Uttarakhand state cabinet on 29 October 2011 cleared Uttarakhand Lokayukta Bill, 2011 with the

objective of curbing corruption in the state. The Chief Minister of the state, all ministers, MLAs and

lower judiciary will be under the purview of Lokayukta. It is important to note that judges of the

Uttarakhand High Court will not be covered under the purview of Lokayukta. Former chief ministers,

former ministers and retired officers will also be within the purview of the Lokayukta.

The Features of Uttarakhand Lokayukta Bill

As per the bill, the Lokayukta will have a chairperson and five members. The number of members

could be increased to seven as per the requirement. The bill envisioned that the members of

Lokayukta should have legal background and should possess integrity and outstanding ability.

The bill says that once the investigations are over, the chargesheet will be filed by the Lokayukta in a

special court set up under the Prevention of Corruption Act for a speedy trial. The bill further adds

that the period of investigation should not exceed twelve months. The Lokayukta will be empowered

to recommend punishment of dismissal, removal or demotion against government servants after

giving them full opportunity of being heard.

In-Depth Current Affairs Important for the descriptive questions in the IAS Main Examination; also helpful for Interview

and Essay Preparation |Words in bold are key terms or facts

The AFSPA Debate

Possible Question/s for Main Examination

Question 1 | (250 Words): Discuss the Armed Forces Special Powers Act and its necessity. Why has

this Act been in news lately?

The AFSPA & its need

The Armed Forces (Special Powers) Act (AFSPA) was passed on September 11, 1958, by the

Parliament of India. Itconfers special powers upon armed forces in disturbed areas in the states of

Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It was later

extended to Jammu and Kashmir as The Armed Forces (Jammu and Kashmir) Special Powers Act,

1990 in July 1990.

The State Governments can declare a state of emergency due to one or more of the following

reasons:

1.Failure of the administration and the local police to tackle local issues.

2.Return of (central) security forces leads to return of miscreants

3.The scale of unrest or instability in the state is too large for local forces to handle.

In such cases, it is the prerogative of the State Government to call for central help. In cases of

continued unrest, like in the cases of militancy and insurgency, and especially when borders are

threatened, the State Government seeks the deployment of armed forces.

By Act 7 of 1972, this power to declare areas as being disturbed was extended to the Central

Government. For declaring an area as a disturbed area there must be a grave situation of law and

order on the basis of which Governor/Administrator can decide that in such a disturbed or

dangerous condition that use of Armed Forces in aid of civil power is necessary.

The Powers under the Act

According to the Armed Forces Special Powers Act (AFSPA), in a disturbed area, an officer of the

armed forces has powers to:

1.Fire upon or otherwise use force, even to the causing of death, against any person who is acting in

contravention of any law against assembly of five or more persons or possession of deadly weapons.

2.To arrest without a warrant and with the use of necessary force anyone who has committed

certain offenses or is suspected of having done so

3.To enter and search any premise in order to make such arrests

4.It gives Army officers legal immunity for their actions. There can be no prosecution, suit or any

other legal proceeding against anyone acting under that law.

The Act has been employed in Jammu and Kashmir since 1990. It was withdrawn by the Manipur

government in some of the constituencies in August 2004 in spite of the Central government not

favouring withdrawal of the act.

AFSPA recently in controversy

Certain NGOs and rights organizations have argued that AFSPA has led to gross violations of human

rights. In Manipur, Irom Sharmila has been on fast for years protesting against the Act.

The Act came in news recently, when the Jammu and Kashmir Chief Minister Mr. Omar Abdullah

called for partially lifting the Armed Forces Special Powers Act (AFSPA) from the State especially

from such areas, where armed forces intervention has not been required for long.

The proposal has evoked mixed responses across the political spectrum in Jammu and Kashmir as

well as on a national level. Rights groups both within and outside the State of J&K has welcomed the

proposal.

However, the Army has responded in a guarded manner. The Army is of the opinion that lifting the

AFSPA would create terror sanctuaries in the state. It fears that terror sanctuaries may come up in

areas where the Act is lifted.

According to the Army, no area in Jammu and Kashmir can be designated safe because the situation

can turn volatile any time. It has given examples of three violent summers.

The Army also pointed that Armed Forces Special Power Act was the only law that provided

protection to the soldiersin the Valley.

Amid the differing perceptions on the matter, the final decision on this proposal is yet to be taken.

On Death Penalty


Question 1 | (250 Words): The legal provisions and procedures governing death penalty in India

are fraught with room for subjectivity and they need urgent review. Comment.

India is one of the countries in the world where death penalty is still practiced. According to an

estimate, Indian courts handed out 105 death penalties in the last year. Internationally, 96 countries

have abolished death penalty while 34 countries are being abolitionist in practice by observing

official or unofficial moratoria on executions.

Lately, there has been an argument against death penalty especially from the rights groups within

the civil society. On this matter legal opinions have tended to differ.

However, in the recent months there has been a growing legal opinion that the provisions and

procedures governing death penalty in India are fraught with loopholes and room for subjectivity

and they need urgent review. The main issues identified are as follows.

1.The law does not prescribe how long the President should take to consider the pleas for clemency.

There have been many instances where inordinate delay in deciding on the pleas for mercy has

taken place. It took almost 12 years since 1999 before mercy petitions were finally turned down in

2011 for the accused in the Rajiv Gandhi assassination case. All the four accused having already

spent the last 20 years in prison.

2.The law also does not require the President to cite reasons for the decision to commute death

sentences into imprisonment for life.

3.It is also not clearly laid down whether the President is bound by the advice given in such matters

by the council of ministers, essentially the Home Ministry.

4.The courts are also being called upon to resolve if long delays in disposing mercy petitions violate

human rights and canons of justice.

5.Political considerations and subjectivity cannot entirely be ruled out if the President and the

executive are left to take the final call.

6.In some cases, the courts have not cited reasons for each individual while giving the death

sentence, for example in the Rajiv Gandhi assassination case.

7.The law has not kept pace with technology and is yet to mandate that confessions be video

recorded in the presence of independent witnesses and possibly the defence lawyers, so that

possibilities of intimidation and use of force are ruled out.

8.There is no clarity if death sentence can be justified for people who stand accused of giving shelter

and food to the actual perpetrators of a crime; or those who allegedly knew of the diabolical plan of

the criminals. It may be argued that those who played a peripheral or a minor role need not be

awarded capital punishment.

9.Tardy investigation by the police is a major factor that vitiates trials. But many courts appear

tolerant to the omissions and commissions of the police.

Considering the above factors, it seems very reasonable to call for a comprehensive review of the

provisions and procedures governing death penalties in India.

Economy & Business



India signs Convention on Global Tax Cooperation

India recently signed the Convention on Mutual Administrative Assistance in Tax Matters, developed

jointly by the Council of Europe and the Organisation for Economic Co-operation and Development

(OECD).

It was opened for signature by the member-states of both organisations on January 25, 1988. All

members of the G20 have now become signatories to the Convention. The Convention will have to

be ratified by the Indian Parliament to become law.

The convention aims at checking tax evasion and illicit flows, which have become a serious problem.

Over the last two years, in order to check this trend, India has negotiated 19 new double taxation

avoidance agreements and 17 new tax information exchange agreements.

Main Features

1.The Convention facilitates international co-operation for a better operation of national tax laws,

while respecting the fundamental rights of taxpayers.

2.The Convention provides for all possible forms of administrative co-operation between states in

the assessment and collection of taxes, in particular with a view to combating tax avoidance and

evasion.

3.The Multilateral Convention on Mutual Administrative Assistance in Tax Matters offers a wide

range of tools for cross-border tax co-operation. It includes automatic exchange of information,

multilateral simultaneous tax examinations and international assistance in the collection of tax due.

4.The Convention imposes safeguards to protect the confidentiality of the information exchanged.

MSP increases for rabi crops

The Union Government has recently announced an increase of Rs. 115 in the minimum support price

(MSP) of wheat, which has been set at Rs. 1,285 a quintal for the 2012-13 rabi marketing season. The

MSP for the previous year was Rs. 1,170 including a bonus of Rs. 50.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs meeting. The

meeting also approved the Agriculture Ministry's proposal for an increase in the support prices of

barley, gram, masur (lentil), rapeseed/mustard and safflower.

Cabinet approves 15 more mega food parks

The Cabinet Committee on Economic Affairs (CCEA) recently approved the setting up of 15 new

mega food park projects in addition to the 15 ongoing projects under the Infrastructure

Development Scheme.

These food parks will have state-of-the-art infrastructure with efficient supply chain management

from farm gate to retail outlets. The projects will bring about substantial reduction of wastage, value

addition, employment generation and increased income for farmers.

Under the guidelines, each mega food park must benefit at least 6,000 farmers / producers directly

and 25,000-30,000 farmers indirectly and generate about 40,000 direct and indirect jobs. The

estimated investment in each project will be about Rs.100 crore in common facilities is expected to

leverage an additional investment of about of Rs.250 crore. The annual turnover of each project

should be Rs.500 crore. In each project, an estimated number of 30-40 food processing industries

must be set up.

The scheme is expected to operate in hub and spoke model under which there will be farm

proximate Collection Centres (CC) and Primary Processing Centres (PPC) which will set up cleaning,

grading, sorting and packing facilities, dry warehouses, specialised cold stores, including pre-cooling

chambers, ripening chambers, mobile pre-coolers and mobile collection vans.

Cabinet approves hike in India's IMF quota

The Union Cabinet recently approved a proposal to increase India's contribution to the International

Monetary Fund (IMF) to make it the eighth largest shareholder in the multilateral lending agency.

Now, India's quota share at the IMF will increase from 2.44 per cent to 2.75 per cent, making it the

eighth largest quota holding country at the IMF.

Significantly, while India's gain in terms of quota share is the seventh largest in the 14th round of

quota review, in absolute terms it will mean an increase from SDR (special drawing rights) 5,821.5

million to SDR 13,114.4 million.

In keeping with the demand of emerging nations, including India, for a greater say in the IMF

following their increased economic clout after the global meltdown in 2008, all the BRIC (Brazil,

Russia, India and China) nations will now figure among the 10 largest quota shareholders in the IMF.

Food inflation rises to 12.21 %

In a fresh spike, despite the recent monetary and other measures to contain the price spiral, food

inflation surged further to 12.21 per cent for the week ended October 22 from 11.43 per cent in the

previous week owing to soaring prices of various edibles such as vegetables, fruits, pulses, milk and

all other protein-rich items.

World Bank to provide loan for Eastern Dedicated Freight Corridor

The World Bank recently committed to finance the Eastern Dedicated Freight Corridor by signing a

$975 million loan agreement with Ministry of Finance and Dedicated Freight Corridor Corporation of

India Limited (DFCCIL).

The World Bank has decided to finance 1,130 km out of the 1,839 km length of the EDFC in three

phases and the recent agreement covers the construction of 343 km of the section between Khurja

and Kanpur, which would not only raise the axle load limit but also enable the freight trains to gain

speeds upto 100 km an hour.

Government e-Payment Gateway (GePG)

Government e-Payment Gateway (GePG) is a fully secure government e-payment system that will

enable the Centre to directly credit dues into the accounts of beneficiaries.

It has been developed by the Controller General of Accounts (CGA). GePG serves as middleware to

facilitate paperless transaction, thus reducing the overall transaction cost and promoting green

banking.

The system aims to usher in transparency and expedite direct payments from Central paying units

with respect to subsidies to users and consumers of fertiliser, kerosene and cooking gas - which is

already a declared objective of the government.

The e-payment system will save both time and effort in effecting payments and also facilitate the

elimination of physical cheques and their manual processing.

Reserve Bank of India gratified Property transaction Norms for NRIs

The Reserve Bank of India (RBI) recently permitted Indians who have non-resident accounts in the

country to hold them in any currency which is fully convertible. The move is expected to help

NRIs/Persons of Indian Origin as it will give them more options in the holding of accounts, and lessen

the risk from fluctuations in major currencies. In another relaxation, the RBI specified that any citizen

who was earlier residing in a foreign country can own or transfer property or other assets in that

nation if it was acquired during the time of his residence there.

Earlier, Foreign Currency (Non-Resident) Account (Banks) (FCNR(B)) account holders were allowed to

hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro,

Canadian dollar and Australian dollar.

The Committee to Review the Facilities for Individuals under Foreign Exchange Management Act

recommended that FCNR(B) accounts may be opened in any freely convertible currency.

TRAI establishes that 3G Roaming Agreements between Telcos violated Licence

Conditions

A probe by telecom regulator TRAI established that 3G roaming agreements between telcos violated

licence conditions.

Mobile phone companies had earlier explained to the regulator that the telecom department, prior

to the 3G auctions, had clearly specified that roaming policy is applicable to licences and not specific

to spectrum bands.

In their defence, telcos had also provided copies of the clarifications provided by the department on

this issue before the 3G auctions. The clarifications quote the DoT's response to operators' queries

on this issue as stating that roaming will be permitted.

The DoT had asked the regulator to examine the 3G roaming agreements between telcos. With no

telco bagging pan-India 3G airwaves in 2010 auctions, the leading GSM operators - Bharti Airtel,

Vodafone Essar and Idea Cellular had entered into an alliance that enables them to offer high-end

data services on a pan-India basis (except Orissa). Bharti, Vodafone and Idea had won 3G airwaves in

13, 9 and 11 circles, respectively, and their roaming pacts ensured that customers of these

companies can access high-speed data services even in the regions where they don't hold 3G

airwaves.

The GSM operators had informed TRAI that 3G roaming agreements would augment the customer

experience by allowing users to access high-speed data services on a pan-India basis, while also

ensuring better utilisation of national resources and increased revenues to the government. Besides,

they also added that these deals would help improve broadband internet coverage.

RBI eases Foreign Direct Investment (FDI) Procedures to encourage Global

Investors

The Reserve Bank of India (RBI) on 4 November 2011 announced that transfer of shares between

Indians and non-resident Indians (NRIs) would not require its permission in several key areas such as

financial services. RBI initiated measures to ease foreign direct investment (FDI) procedures with an

objective to woo global investors.

The central bank Amended the Foreign Exchange Management Regulations. It mentioned that prior

permission would not be necessary where the company whose shares were being transferred was

engaged in any financial service.

The RBI permission had also been done away with for transfer of shares between residents and non-

residents in cases where the Foreign Investment Promotion Board (FIPB) had already given its

clearances and the SEBI guidelines were met.

However, RBI clarified that the transactions would have to comply with the SEBI regulations, FDI

sectoral caps, and the pricing guidelines as specified by the RBI.

FDI inflows shot up by 95 per cent to $17.37 billion between April and August 2011. The government

and the RBI want to maintain robust foreign exchange reserves as volatility in the stock market has

led to outflows.

Oil Companies raise Petrol Prices by Rs 1.80 per litre marking 13th increase since

June 2011

State-owned oil companies on 3 November 2011 raised petrol prices by Rs 1.80 per litre at a time

when the nation is already battling high double-digit food inflation. This is the 13th increase in petrol

prices since the fuel was decontrolled in June 2010. Petrol prices were last raised by over Rs 3 a litre

on 15 September 2011. With the latest price rise, the fuel's price has risen 33.5% since it was

decontrolled in June 2010.

The latest rise in petrol prices came after Brent crude oil fell for four consecutive days before rising

about half a dollar on 3 November. The sharp rise is due to high crude prices particularly Brent as

well as rupee deprecation. As per RBI reference rate, $1 was equivalent to Rs 49.3748.

The India crude oil basket for the fortnight ended 31 October was recorded at $108.59 a barrel.

A litre of petrol now cost nearly Rs 28 more than diesel. The gap was barely Rs 11 in the middle of

2010 but the government controls diesel prices and has not raised diesel rates. Diesel prices have

risen barely 2% sice June 2010 thereby accelerating sales of diesel vehicles and dampening demand

for petrol cars.

SEBI ordered All Mutual Funds to Disclose Names of Distributors

In order to improve transparency, market regulator SEBI ordered all mutual funds to disclose names

of distributors, who receive commission in excess of Rs 1 crore annually, on their respective

websites.

Fund houses, according to a Sebi circular, will have to disclose names of distributors who have their

presence in more than 20 locations or those who have received over Rs 1 crore commission in a

year. They would also have to disclose the amount of commission paid to distributors.

The disclosure, which would also be uploaded on the MF industry body AMFI's website, was made

mandatory from 10 November 2011.

SEBI board decided that as a first step towards regulating distributors of MFs, selected distributors

will be regulated through Asset Management Companies (AMCs) by putting in place the due

diligence process to be conducted by AMCs.

In 2011, World Food Day observed on 16 October with Food Prices - From Crisis

to Stability as Theme

World Food Day is observed every year on 16 October. In 2011, World Food Day was observed with

the theme- Food Prices - From Crisis to Stability. Food Priices-from Crisis to Stability was chosen as

the 2011 World Food Day theme to shed some light on what can be done to mitigate its impact on

the most vulnerable.

World Food Day 2011 was observed with an objective to look seriously at what causes swings in food

prices, and do what needs to be done to reduce their impact on the weakest members of global

society.

Since 1981, World Food Day has adopted a different theme each year, in order to highlight areas

needed for action and provide a common focus. Most of the themes revolve around agriculture

because only investment in agriculture together with support for education and health can ensure

food security.

The objectives of World Food Day are to:

encourage attention to agricultural food production and to stimulate national, bilateral,

multilateral and non-governmental efforts to this end

encourage economic and technical cooperation among developing countries

encourage the participation of rural people, particularly women and the least privileged

categories, in decisions and activities influencing their living conditions

heighten public awareness of the problem of hunger in the world

promote the transfer of technologies to the developing world

strengthen international and national solidarity in the struggle against hunger, malnutrition and

poverty and draw attention to achievements in food and agricultural development.

Union Ministry of Commerce, Industry and Textiles Approved 21 New Textiles

Parks in India with a project cost of 2100 crores

Union Ministry of Commerce, Industry and Textiles recently sanctioned 21 new Textiles Parks under

the Scheme for Integrated Textiles Parks with a project cost of 2100 crores rupees to be

implemented over a period of 36 months. The approval came in the 4th week of October 2011.

Among these 21 new Textiles Parks, 6 were sanctioned in Maharashtra, 4 in Rajasthan, 2 each in

Tamil Nadu and Andhra Pradesh, 1 each in Uttar Pradesh, Gujarat, Tripura, Himachal Pradesh,

Karnataka, Jammu & Kashmir and West Bengal.

Minister for Commerce, Industry and Textiles Anand Sharma as Chairman of the Project Approval

Committee under the Scheme accorded approval. Earlier, Inter Ministerial Project Scrutiny

Committee which examined 55 proposals for new Textiles Parks in the country gave its

recommendations for the setting-up new textiles parks. Proposals received were scrutinised by an

inter ministerial Project Scrutiny Committee on the basis of project cost, land size, net worth of

investors, employment generation and value chain to be developed by the industry. Government

also sought to ensure balanced regional development, promote textiles industry in North Eastern

States and in States where the industry is in a nascent stage of development and promote textiles

parks in cooperative & handloom sectors. Government received a huge response to the roadshows

held at Chennai, Bangalore, Hyderabad, Ahmedabad and Mumbai for seeking proposals for Textiles

Parks under the Scheme for Integrated Textiles Parks for development of common infrastructure and

the Technology Upgradation Funds Scheme (TUFS).

About Textiles Parks

The product mix in these parks would include apparels and garments parks, hosiery parks, silk parks,

processing parks, technical textiles including medical textiles, carpet parks, powerloom parks. The

focus of Government has been to ensure value addition through aggregation to best utilize Indias

raw material surplus in cotton and cotton yarn for enhanced labor employment and export earnings.

The Scheme for Integrated Textiles Parks seeks green field investments in textiles sector on a public

private partnership basis with the objective of setting up world class infrastructure for Textiles

industry.

The Union Cabinet approves the proposal Prasar Bharati Amendment Bill, 2010

The Union Cabinet of India on 1 November 2011 approved the proposal of the Ministry of

Information and Broadcasting for pursuing the Prasar Bharati (Broadcasting Corporation of India)

Amendment Bill, 2010. The Cabinet also approved the action taken on the recommendations made

in the Eighteenth Report on Prasar Bharati (Broadcasting Corporation of India) Amendment Bill,

2010 of the Standing Committee on Information Technology.

The Cabinet further approved the amendment to section 11(2) of the Prasar Bharati (Broadcasting

Corporation of India) Amendment Bill, 2010 pending in the Rajya Sabha by the addition of the words

and until their retirement at the end of the section. This will make the status of the employees

recruited between 23 November 1997 and 5 October 2007. It makes the status of employees on

deemed deputation to Prasar Bharati until their retirement, absolutely clear and unambiguous.

The Prasar Bharati (Broadcasting Corporation of India) Amendment Bill 2010 was introduced in the

Rajya Sabha in August, 2010. The Bill is for making amendments to the existing section 11 of the

Prasar Bharati Act, 1990, regarding Transfer of service of existing employees to the Corporation,

which deals with the transfer of services of employees to Prasar Bharati upon its creation as a

Corporation in the year 1997.



National Manufacturing Policy


Question 1 | (250 Words): Discuss the objects and provisions of the National Manufacturing Policy.

Immediate Context

The Union Cabinet recently approved the revised proposal of the National Manufacturing Policy. The

revised proposal was finalized after the differences in some inter-ministerial positions with respect

to the policy (notably relating to Ministry of Labour and Employment and the Ministry of

Environment and Forests) were resolved in mid- October 2011.

Need for a National Manufacturing Policy

The contribution of the manufacturing sector at just over 16% of India's GOP is much below its

potential. It is also a cause of concern especially in the context of other Asian countries in similar

stages of development. This also has its socio-economic manifestations and prevents India from fully

leveraging the opportunities of globalization.

India is a young country with over 60% of its population in the working age group. With over 220

million people estimated to join the work force in the next decade, the manufacturing sector will

have to create gainful employment for at least half this number. With a view to accelerating the

growth of the manufacturing sector, the Manufacturing Policy proposes to create an enabling

environment suitable for the sector to flourish in India.

Objectives

The major objectives of the National Manufacturing Policy are to (1) increase the sectoral share of

manufacturing in GOP to at least 25% by 2022; to (2) increase the rate of job creation so as to create

100 million additional jobs by 2022; and to (3) enhance global competitiveness, (4) domestic value

addition, (5) achieving technological depth and (6) securing environmental sustainability of growth.

Main features

The policy envisages specific interventions in the following areas.

1.Industrial infrastructure development

2.Creation of large integrated industrial townships called National Investment and Manufacturing

Zones (NIMZs) with state-of-the-art infrastructure; land use on the basis of zoning; clean and energy

efficient technologies; necessary social and institutional infrastructure in order to provide a

productive environment to persons transitioning from the primary to the secondary and tertiary

sectors. The land for these zones will preferably be waste infertile land not suitable for cultivation;

not in the vicinity of any ecologically fragile area and with reasonable access to basic resources.

3.Improvement of the business environment through rationalization and simplification of business

regulations

4.Development of appropriate technologies especially green technologies for sustainable

development

5.Skill development of the younger population

6.To ensure compliance of labour and environmental laws by introducing procedural simplifications

and rationalization

The interventions proposed are generally sector neutral, location neutral and technology neutral

except the attempt to incentivize green technology for sustainable development.

No subsidies are proposed for individual units or areas.

RBI hikes key rates yet again to control Inflation


Question 1 | (250 Words): What are the measures taken by the RBI to curb inflation in its Second

Quarter Review of Monetary Policy for 2011-12?

In its Second Quarter Review of Monetary Policy for 2011-12, the Reserve Bank of India increased

the short term indicative policy rate (repo rate) by 25 basis points, with immediate effect, from 8.25

to 8.5 per cent. Accordingly, the reverse repo rate under the LAF gets calibrated to 7.5% and the

MSFrate to 9.5%. The RBI is hopeful that a further rate hike may not be warranted as inflation is

likely to fall in December 2011.

The RBI has also deregulated the savings bank deposit interest rate with immediate effect. With the

decision on deregulating the savings bank deposit interest rate, banks are free to determine their

rates. However, the RBI said, each bank would have to offer a uniform interest rate on savings bank

deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit. For savings bank

deposits over Rs. 1 lakh, the banks can provide differential rates of interest, if it so chooses.

This is the 13th hike in policy rate since March 2010. As a result of this, the lending rates offered by

banks will go up further. (Note: Repo rate is the rate at which the banks borrow funds from the

central bank. Thus, increasing the Repo rate makes funds costlier.)

Comment: The RBI has chosen to raise the Repo rate in a move to contain persisting inflationary

pressure.

These measures have been considered necessary by the RBI, especially in the light of the fact that

price rise has continued to be a major macroeconomic concern. Inflation has remained quite high, at

an average of 9.6 per cent during the financial year so far. Inflation has been broad-based, and

driven by all the three major groups, primary articles, fuel and power, and manufactured products.

The continued raising of the policy rates has led to a money supply tightening, which has affected

growth prospects of industries. The RBI has also revised the projection of growth rate for 2011-12

downwards to 7.6 per cent from 8 per cent announced in the May Annual Statement and the July

Quarterly Review. This is because, investment demand has slackened, reflecting slower clearance

and execution of projects, concerns about inflation and rising interest rates.

India & the World



Pakistan grants India most favoured nation status

Pakistan recently extended the Most Favoured Nation (MFN) status to India which implies that the

two nations can now have normal trade relation. This move is seen as a significant step towards

improving the bilateral trade between India and Pakistan.

India had granted MFN status to Pakistan in 1995 and World Trade Organisation (WTO)

commitments mandated that Islamabad reciprocate.

Under MFN, a country agrees to treat another country equally with all the other countries with

which it trades, as part of the agreement in the World Trade Organisation on non-discriminatory

trade practices.

As a next step, Pakistan would have to replace its positive list for trade with India with a negative list.

New Delhi too has agreed to address the Pakistani grievance of Indian non-tariff barriers against its

exports.

Earlier, both countries had granted the status to each other after ratifying the General Agreement

on Tariffs and Trade (GATT) in July 1948. This regime continued till 1965. Between 1947 and 1965,

Pakistan and India signed 12 trade agreements. The trade relations were suspended in the wake of

India-Pakistan war of 1965. Trading relations between the two countries resumed after the Shimla

Agreement. Later in 1995, India granted MFN status to Pakistan when WTO replaced GATT.

Simplified Russian visa rules for Indians

Russia recenetly notified simplified visa procedures for Indians, giving effect to a bilateral visa

simplification agreementsigned last year. The simplified visa rules apply to tourists, students, official

delegations, businessmen, persons involved in scientific, cultural and creative professions, and sister

city exchanges.

The simplified visa rules allow the following:

1.Indians travelling to Russia do not need to prove good-faith intentions

2.Individuals and organizations are no more required to produce an invitation or a tourist voucher to

obtain a six-month visa for a 90-day stay.

3.Issuance of multi-entry one-year and five-year visas subject to certain conditions

So far as the Russians visiting India are concerned, the number of Indian visas issued to Russians is

expected to increase by 25 per cent to more than 127,000 as India becomes an increasingly popular

destination with Russian tourists.

U.K. further tightens visa norms for Indian students

The British government recently made obtaining student visa to UK all the more difficult by banning

nearly 1,900 Indian banks for the purpose of verifying applicants' maintenance funds. These are

mostly small regional cooperatives.

Under Tier 4 of the points-based immigration system, all applicants are required to submit a financial

statement as a proof that they have enough funds to support themselves and pay for their course in

Britain.

The British Home Office also published a list of 85 financial institutions operating in India whose

financial statements would be accepted for student visas.

The British officials have clarified that an applicant would score no points for maintenance if their

supporting documents showed that their funds were held in a financial institution on the banned list.

France not bound by new NSG restriction on nuclear sales to India

France has recently clarified that it is not bound by new NSG restriction on nuclear sales to India. It

is noteworthy that earlier this year, the NSG had imposed ban on the sale of enrichment and

reprocessing technology to countries that have not signed the Nuclear Non-proliferation Treaty.

France has said that it considers the agreement of 2008 - when the NSG made an exception for India

- still in vigour. France also supports the membership of India to the NSG.

Regarding nuclear safety

After the Fukushima catastrophe, France has launched a process of stress tests on all its nuclear

installations. When the Agency for Nuclear Safety delivers its report, France promises that it will

circulate it to all their nuclear partners, especially India. France is keen to continue its cooperation,

and participate in the construction of new European Pressurised Reactors (EPR) if the Indian

government decides to go further.



Recent shift in India - Nepal relations


Short Question 1 | (150 Words): With respect to the ongoing political changes in Nepal, there has

been a marked shift in Indias approach towards Nepal too. Comment.

Nepal has lately been going through political flux and recently Sri Baburam Bhattarai emerged as the

Prime Minister after a political deal between the Unified Communist Part of Nepal (Maoist) and the

Madhesi parties of Nepal. After this political development, there has been a significant rise in trust

between the two countries.

So far, there has been a perception in Nepal that India was leveraging its influence over the Madhesi

parties of Nepal to keep the Maoists - the legitimately elected biggest party in parliament - out of

the power structure. This perception led to a phase of stagnation in the bilateral relationship. It also

prolonged the stalemate over constitutional issues, deepened the instability, and generated

resentment against India.

However, in the recent months, there has been a policy course-correction. India encouraged the

election of Mr. Bhattarai as Prime Minister by using its leverage with the Madhesi parties. India

has also expressed its support for the integration of a certain number of Maoist combatants into the

Nepal Army.

In the wake of these positive developments, Nepal appears to be on the verge of achieving a

breakthrough in its peace and constitutional process. Its political parties are close to an agreement

on the issue of the integration of Maoist fighters, which is at the core of the peace process. There is

also a power-sharing proposal among the political parties. India continues to play a supportive role,

as it did in 2005 when the 12-point agreement was forged.

The visit of Nepal Prime Minister to India & BIPPA

Recently in late October 2011, the Prime Minister of Nepal Sri Baburam Bhattarai was on visit to

India, during which he held meetings with the President, the Prime Minister and business delegation

as well.

During the visit, the two countries also signed a Bilateral Investment Promotion and Protection

Agreement (BIPPA).

Explanation: What is BIPPA?

BIPPA is a legal instrument for the purpose of protecting foreign investments against discriminatory

measures (i.e. policy inconsistencies) by the host state. To ensure protection and promotion of

investments, and to encourage capital flows along with the commitment to credible liberal economic

policies, countries typically enter into investment protection agreements like BIPPA. It guarantees

rights of foreign investors and ensures them fair and equitable treatment, security, and dispute

resolution mechanism.

Nepal-India BIPPA

While Nepal has already signed BIPPA with six countries (including India), India has signed such

agreement with 80 countries (as of May 2011), out of which 70 BIPPAs have already come into force

and the remaining are in the process of being enforced. Nepal signed its first BIPPA with France on

May 2, 1983.

According to the BIPPA, the investments should not be subjected to nationalization, expropriation or

any other measure having similar effects except for reasons of public purpose in accordance with the

law, on a non-discriminatory basis and against fair and equitable compensation.

Furthermore, in case of losses because of war, armed conflict, emergency or insurrection or riots,

Indian investors should be treated and compensated at par with Nepalese investors.

The Nepal-India BIPPA remains in force for ten years and will be automatically extended thereafter

unless one of the countries intends to terminate it.

Pretoria Meet of IBSA (An In-depth Coverage) - From the last issue

What is IBSA?

IBSA is the acronym for India-Brazil-South Africa Trilateral.

It is a developmental initiative involving India, Brazil and South Africa to promote South-South

cooperation and exchange.

History

IBSA came into existence in 2003 after discussions between the Heads of State and/or Government

of the IBSA countries at the G-8 meeting of 2003.

The Foreign Ministers of the three countries met in Brasilia on June 6, 2003. At this meeting, the

launching of the IBSA Dialogue Forum was formalized through the adoption of the Brasilia

Declaration.

Objectives

The main objectives of the IBSA Dialogue Forum are:

1. To promote South-South dialogue, cooperation and common positions on issues of international

importance

2. To promote trade and investment opportunities

3. To promote international poverty alleviation and social development

4. To promote the trilateral exchange of information, international best practices, technologies and

skills, as well as to compliment each others competitive strengths into collective synergies

5. To promote cooperation in a broad range of areas, namely agriculture, climate change, culture,

defence, education, energy, health, information society, science and technology, social

development, trade and investment, tourism and transport.

The IBSA Dialogue Forum has regular consultations at Senior Official, Ministerial and Heads of State

and/or Government (Summit) levels. It also facilitates interaction amongst academics, business and

other members of civil society.

Relevance

The India-Brazil-South Africa (IBSA) Dialogue Forum brings together three large pluralistic, multi-

cultural and multi-racial societies from three continents, i.e. Asia, South America and Africa, as a

purely South-South grouping of like-minded countries committed to inclusive sustainable

development, in pursuit of well-being for their peoples.

The principles, norms and values underpinning the IBSA Dialogue Forum, i.e. participatory

democracy, respect for human rights, and the Rule of Law are relevant globally, especially in the

current context, when the world economy is faced with serious challenges and where democracy is

being sought after in areas such as the Middle East and North Africa.

The importance of the IBSA Dialogue Forum as an instrument to promote coordination on global

issues is very high, pertinently during the historic occasion of 2011 when all IBSA Member States

serve as non-permanent members of the United Nations Security Council.

Latest Meet at Pretoria (South Africa)

The President of the Republic of South Africa, H.E. Mr. Jacob Gedleyihlekisa Zuma, the Prime

Minister of the Republic of India, H.E. Dr. Manmohan Singh, and the President of the Federative

Republic of Brazil, H.E. Ms. Dilma Rousseff met at the Presidential Guest House, Pretoria, Republic of

South Africa, on 18 October 2011 for the 5th Summit of Heads of State and Government of the India-

Brazil-South Africa (IBSA) Dialogue Forum.

The joint declaration has the following important points:

Collaboration in the UNSC and other relevant international fora such as the UN Specialised Agencies

and groupings such as the G20, G24, WTO, WIPO, BASIC, BRICS, and G77 + China.

Commitment to increase the participation of developing countries in the decision-making bodies of

multilateral institutions

The need for urgent reform of the United Nations (UN) to render it more democratic and consistent

with the current geopolitical reality

The need for urgent reform of the UN Security Council, including an expansion in both permanent

and non-permanent categories of its membership, with increased participation of developing

countries in both

IBSA to continue to work together in relevant multilateral fora to enhance macro-economic policy

coordination for sustainable recovery and continued growth

Emphasised the importance of the G20 development agenda, with its focus on the contribution to

sustainable growth in developing countries, especially in low income countries

A call for the early implementation of the targets for the reform of the International Monetary Fund

relating to the mandate, representation, scope, governance, responsibility, responsiveness and

development orientation of the Fund, in order to ensure that the Fund is democratic, responsive and

accountable

Concern at the ongoing deterioration of the global economic scenario, which presents particular

challenges for the economic policy and growth prospects of developing and low-income countries

Need to increase policy coordination amongst G20 nations, with a view to avert a new recession and

to promote a robust recovery in order to ensure strong, sustainable and balanced growth of the

global economy

Reaffirmation that people must come first and should participate in the formulation and

implementation of public policies, allowing for fair, equitable and sustainable development

2015 remains a fundamental target date, by which MDGs must be met. The leaders reaffirmed that

with just four years to go for the target year, global efforts for attaining the MDGs by 2015 must see

accelerated action. The successful achievement of the MDGs; as encapsulated in the Millennium

Declaration requires strong political will and commitment; adequate funding at the national,

regional and international levels; and strengthened international cooperation.

The current impasse in the negotiations around the Doha Development Round negotiation is a

source of serious concern. The distortions caused by the high levels of protection and subsidies in

agriculture in the developed countries continue to undermine the development prospect of many

developing countries, especially the least developed countries.

The Leaders reiterated the need to re-affirm the integrity of the mandate that launched the Round,

and to build on the convergence already achieved.

The Leaders of India and South Africa pledged their support for Brazils hosting of the United Nations

Conference on Sustainable Development in June 2012 in Rio de Janeiro (Rio+20 Summit) to secure

renewed political commitment to sustainable development.

The Leaders agreed that Rio+20 should renew political commitment to accelerate the

implementation of the sustainable development agenda as defined by the Rio Principles and taken

forward through the Johannesburg Plan of Implementation (JPoI) in pursuit of global sustainable

development.

South Africa as the host of the 17th Conference of the Parties (COP 17) to the United Nations

Framework Convention on Climate Change (UNFCCC) and the 7th Conference of the Parties serving

as the Meeting of the Parties (CMP7) to the Kyoto Protocol, which will be taking place in Durban

from 28 November to 9 December 2011, appreciates the support of India and Brazil towards a

successful outcome in Durban. The outcome of Durban should be comprehensive, balanced and

ambitious.

The Leaders, also as members of the Group of Like-Minded Mega-diverse Countries appreciated the

initiative of India to host in October 2012, the eleventh Conference of the Parties to the UN

Convention on Biological Diversity (COP11 of CBD) and the sixth meeting of the Conference of the

Parties serving as the Meeting of the Parties (COP/MOP 6) to the Cartagena Protocol on

Biosafety. COP11 of CBD will consider among other, the status of the Nagoya Protocol on Access to

Genetic Resources and the Fair and Equitable Sharing of Benefits arising from their Utilization, the

implementation of the Strategic Plan 2011-2020 and its progress towards the Aichi Biodiversity

Targets and the agreed process to adopt indicators and targets for the Resource Mobilization

Strategy.

Concern about the continuing challenges that developing countries are facing regarding food and

nutritional security, such as negative consequences of food inflation and food price volatility. The

Leaders expressed their support for the UN food based institutions in Rome, and other regional

organisations that could increase the capacity of developing countries to deal with the issues of

increased agricultural production, food security and nutritional feeding.

The Leaders undertook to continue to advance the agreed principles underlying South-South

Cooperation. The Leaders affirmed that South-South cooperation is complementary to, and not a

substitute for, North-South Cooperation.

A commitment to implement the provisions of the political declaration signed by Head of States and

Government onWorld Conference Against Racism, Xenophobia and Related Intolerance (WCAR) +

10, held in New York, on 22 September 2011.

The Leaders reaffirmed their commitment to the goal of the complete elimination of all nuclear

weapons within a specified timeframe, in a comprehensive, universal, non-discriminatory, verifiable

and irreversible manner.

The Leaders condemned terrorism in all its forms and manifestations, committed by whomever,

wherever and for whatever purposes, as it constitutes one of the most serious to international peace

and security.

The Leaders welcomed the UNGA resolution A/RES/65/230 on the Twelfth United Nations Congress

on Crime Prevention and Criminal Justice which endorsed the Salvador Declaration on

Comprehensive Strategies for Global Challenges: Crime Prevention and Criminal Justice Systems and

Their Development in a Changing World.

The Leaders welcomed the adoption of the 2010 United Nations Global Plan of Action to Combat

Trafficking in Persons which will contribute to the promotion and protection of the rights of women

and children, as well as enhance cooperation and better coordination of efforts in fighting trafficking

in persons.

To take into consideration the Salvador Declaration

Emphasized the need for an equitable and balanced international system of rules governing

intellectual property, allowing among others, for the protection of indigenous knowledge systems

against abuse and for preventing the misappropriation of genetic resources, and associated

traditional knowledge.

The Leaders reaffirmed their commitment to working together towards a people-centered, inclusive

and development-oriented Information Society and their agreement to continue to coordinate

positions for the World Summit on Information Society (WSIS) follow-up mechanisms, as well as in

the other fora and organizations related to the Information Society and Information and

Communication Technologies (ICTs).

Emphasized Internet Governance as a key strategic area that requires close collaboration and

concrete action. In this context, it recommended the establishment of an IBSA Internet Governance

and Development Observatory that should be tasked to monitor developments on global Internet

Governance and provide regular updates and analyses from the perspective of developing

countries.

Besides the above, the leaders also discussed and developed consensus on matters like:

Energy

Gender

Children

Persons with Disabilities

Youth

Regional Issues

Libya

Arab-Israel Peace Process

Syria

Sri Lanka

Afghanistan

Sudan and the Republic of South Sudan

Somalia

Haiti

IBSA Facility for Poverty and Hunger Alleviation (IBSA Fund)

Sectoral cooperation and People-to-People Fora

IBSA Satellite Project

International Affairs & Institutions



Istanbul Conference for Afghanistan

Representatives of 27 countries, including India, recently met in Istanbul, Turkey to discuss the

situation and the way ahead in Afghanistan. This conference came ahead of the expected

withdrawal of foreign forces from Afghanistan.

The main aim of the conference was to evolve a consensus-based mechanism to ensure stability and

prosperity in Afghanistan.

The delegates examined three core issues: (1) preventing Afghanistan's emergence in the future as a

battleground for regional rivals; (2) national security of Afghanistan which is under threat of

destabilisation from the Taliban; and (3) ensuring that sufficient number of jobs were created in the

country so that young people of Afghanistan were kept away from taking up arms or indulging in

terrorism and drug-trafficking.

At the conference, India proposed economically linking Central Asia with the South Asian Association

for Regional Cooperation (SAARC) as a critical confidence building measure.

India also argued that it was well placed to assist Afghanistan because it was involved in all three

critical requirements of that nation - security, good governance and development. But to achieve

this, India pointed out, there must be an end to external interference in its internal affairs. India

drew attention to the continuation of safe havens and sanctuaries for terrorists beyond its borders.

UNDP - Human Development Report 2011

The UNDP Human Development Report 2011 was released recently. This years reports theme

is Sustainability and Equity.

The study has ranked India at 134 out of 187 countries in terms of human development. In the 2010

Human Development Report, India had been ranked at 119 out of 169 countries. The main reason

for which Indias position has dropped is a change in methodology adopted by the UNDP to calculate

human development indicator values. These changes have been brought about from this years

report only.

The report observes that life expectancy at birth in the country has increased by 10.1 per cent a year

over the last two decades.

India's Human Development Index (HDI) value for 2011 was 0.547 - positioning the country in the

medium human development category'.

Pakistan was ranked at 145 (0.504) and Bangladesh at 146 (0.500).

Between 1980 and 2011, India's HDI value increased from 0.344 to 0.547, an increase of 59 per cent

or an average annual increase of about 1.5 per cent.

However, the HDI of 0.547 was below the average of 0.630 for countries in the medium human

development groupand below the average of 0.548 for countries in South Asia.

Explanation: The HDI is a measure for assessing long-term progress in three basic dimensions of

human development: a long and healthy life; access to knowledge; and a decent standard of living.

2011 G-20 Summit at Cannes, France

The 2011 G-20 Summit was held in Cannes, France. It was the sixth meeting of the G-20 Heads of

Government in a series of on-going discussions about financial markets and the world economy.

The G-20 forum is the avenue for the G20 economies to discuss, plan and monitor international

economic cooperation.

The main issues considered at the Summit were:

1.Coordinating economic policies and reducing global macroeconomic imbalances

2.Strengthening financial regulation

3.Reforming the International Monetary System

4.Combating commodity price volatility

5.Improving global governance

6.Working on behalf of development

The Summit was attended by the Indian Prime Minister. India made the following important points

at the Summit.

1.The global economy faces exceptional uncertainty. The G20 must deal with financial instability

emanating from the Euro zone periphery.

2.India welcomes the initiatives taken in the Euro zone to evolve innovative mechanisms to raise

resources for the European Financial Stability Facility and to strengthen fiscal discipline through

intensive surveillance.

3.Prolonged uncertainty and instability in the Eurozone countries can hurt all the G20 nations.

4.The IMF must keep the situation under close watch as part of regional surveillance. India strongly

supports the IMF playing its part in restoring stability in Europe.

5.The Mutual Assessment Process needs to focus on structural reforms in all G-20 countries to

increase efficiency and competitiveness over the medium term.

6.Multilateral Development Banks play a key role in mobilizing and deploying global savings. The G-

20 should therefore raise its level of ambition for these institutions so that they can play the kind of

transformational role they played in the post war period.

Background of G20: The G20 was established in 1999, in the wake of the 1997 Asian Financial Crisis,

to bring together major advanced and emerging economies to stabilize the global financial market.

Since its inception, the G20 has held annual Finance Ministers and Central Bank Governors' Meetings

and discussed measures to promote the financial stability of the world and to achieve a sustainable

economic growth and development.

Membership

The G-20 is made up of the finance ministers and central bank governors of 19 countries and the

European Union:

Argentina

Australia

Brazil

Canada

China

European Union

France

Germany

India

Indonesia

Italy

Japan

Mexico

Russia

Saudi Arabia

South Africa

Republic of Korea

Turkey

United Kingdom

United States of America

To ensure global economic fora and institutions work together, the Managing Director of the

International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the

International Monetary and Financial Committee and Development Committee of the IMF and

World Bank, also participate in G-20 meetings on an ex-officio basis. The G-20 thus brings together

important industrial and emerging-market countries from all regions of the world. Together,

member countries represent around 90 per cent of global gross national product, 80 per cent of

world trade as well as two-thirds of the world's population.

Operation Linda Nchi (Kenyan Military Action against Al Shabab)

Operation Linda Nchi is the Kenyan codename for a military cooperative action of the Somalian

military, the Kenyan military, the French military, and allegedly the United States military against Al-

Shabaab militants in southern Somalia. The operation began in late-October 2011, when troops from

Kenya crossed the border into the conflict zones of southern Somalia.

The soldiers are in pursuit of Al-Shabaab militants who are alleged to have kidnapped several foreign

tourists and aid workers inside Kenya. The operation represents one of the final stages in the Islamist

insurgency of the Somali Civil War.

Russia and Georgia sign an important deal

Russia recently reached an agreement with Georgia on a comprehensive trade and economic

cooperation. The dealpaves the way for Russias entry into the World Trade Organization.

Russian entry into the WTO may take place by the end of the year. It would come after 18 years of

negotiations and represent the biggest step in world trade liberalization since China joined a decade

ago. Russia is the largest economy outside the WTO. It has an economic output of $1.9 trillion, or

about 2.8 percent of the world economy.

North Korea and U.S. talks begin in Geneva

The Democratic People's Republic of Korea (DPRK or North Korea) and the U.S. opened their second

round of direct talks in Geneva recently,following similar discussions in New York in July 2011.

The talks focusing on North Korea's nuclear programme were conducted at the U.S. mission in

Geneva.

A joint report by the World Bank and the U.N. Office on Drugs and Crime (UNODC)

put focus on corporate corruption

A joint report by the World Bank and the U.N. Office on Drugs and Crime (UNODC) published on

October 24, has urged governments to devote more resources to training investigators in fighting

financial crime, including large-scale corruption, money laundering and terrorist financing.

According to the Stolen Asset Recovery (Star) initiative of the World Bank and the UNODC, most

large-scale corruption cases involve using legal entities to conceal ownership (shell companies) and

control of corrupt proceeds - hence the need for greater transparency to reduce opportunities for

wrongdoing.

Transparency International, together with other civil society organisations attending the fourth

session of the conference of states parties to the U.N. Convention Against Corruption (UNCAC), are

calling for action to step up the recovery of stolen assets. Under the banner: Return stolen public

assets now!, they are also demanding more robust anti-money laundering measures.

President Cristina Fernndez de Kirchner of Argentina gets re-elected

President Cristina Fernndez de Kirchner of Argentina has won re-election in landslide 54 percent

votes. The victory margin of 36 percentage points over the second-placed Hermes Binner of the

Broad Progressive Front is the second largest in the country's history. It is exceeded only by the

legendary Juan Pern's win in 1973. This time, Ms Kirchner won over 90 per cent of the vote in some

provinces.

Voting is compulsory in Argentina.

She is the first woman head of state in Latin America to win a second successive term in office. These

votes display a continuing strong left and centre-left commitments of Latin American voters for

almost a decade now.

Moderate Islamists win in Tunisia

Tunisia's moderate Islamists have triumphed in the first elections held after the onset of the Arab

Spring.

The Islamist Ennahda party won 90 seats in the 217-member Assembly, which will write a new

Constitution, appoint an interim government and prepare for fresh parliamentary and presidential

elections, probably within a year.

The leftist Congress for the Republic (CPR) won 30 seats and the centre-left Ettakatol won 21

seats. These elections saw 90 per of the registered voters polling, followed a popular uprising which

ended decades of authoritarian rule led by Zine el Abidine Ben Ali.

Analysts say Tunisia's election results are likely to resonate in Egypt too.

National Polar-orbiting Operational Environmental Satellite System Preparatory

Project (NPP) launched in the US

The U.S. space agency recently launched a first-of-its kind satellite that will send back data on

weather and climate to help forecasters predict major storms and other changes in the

environment. The satellite project is being calledNational Polar-orbiting Operational Environmental

Satellite System Preparatory Project (NPP). It took off aboard a Delta II rocket from Vandenberg Air

Force Base in California.

The satellite will carry five instruments to study temperature and water in the atmosphere, how

clouds and aerosols affect temperature, and how plants on land and in the ocean respond to

environmental changes.

It is one of 14 Earth observation missions currently being managed by NASA.

The NPP - which will circle the Earth at a height of 820 km in a polar orbit - will help fill in data gaps

left by European weather observatories.

Atambayev voted Kyrgyz President

Prime Minister Almazbek Atambayev emerged a winner in Kyrgyzstan's recent presidential elections.

With 99 per cent of the votes counted Mr. Atambayev had more than 63 per cent, well above the

50-per-cent minimum needed to avoid a runoff.

His rivals, however, claimed there were many violations, including ballot box stuffing and repeat

voting. They found it incredible that Mr. Atambayev, a northerner, could have won the same share

of the votes in the south as he did in the north.

UNESCO membership for Palestine

In a historic vote, UNESCO on October 31, 2011 granted full membership to Palestine which, until

now, enjoyed only observer status at the U.N. agency for education, science and culture.

The demand for full membership was made by the Palestinian Authority and won the approval of

107 member stateswith 14 votes against and 52 abstentions at the organisation's General

Conference. A 185 of UNESCO's 194 member states were eligible to vote.

Full membership of UNESCO is a small but significant step forward for the Palestinians in their

attempts to gain international recognition and statehood.

Higgins to be Ireland's President

A prominent left-wing poet and peace activist, Michael D. Higgins is to be Ireland's new

President succeeding the incumbent, Mary McAleese, who has been the President of Ireland since

1997 having won two successive seven-year terms, the maximum permitted under the Constitution.

Seventy-year-old Michael D. Higgins contested on behalf of the Labour party.

His rivals conceded defeat even before the results were formally announced.

Mr. Higgins has been an MP for nearly 25 years and a former Minister for Arts and Culture.



Brussels Agreement to avert Eurozone Crisis


Question 1 | (250 Words): Discuss the main features of the Brussels Agreement arrived at recently

in order to avert the deepening of the Eurozone debt crisis.

Recently in Brusells, the leaders of the Eurozone arrived at an emergency three-pronged deal to fix

the eurozone's debt crisis. The main features of the three pronged deal are as follows.

On Greek debt

Private banks holding Greek debt will accept a write-off of 50% of their returns. The move is

expected to cut the nation's debt load to 120% of its GDP in 2020. Under current conditions, it would

have grown to 180%.

Bailout fund

The main euro bailout fund - known as the European Financial Stability Facility (EFSF) - is to

be boosted from the 440 billion euros set up earlier this year to 1trillion euros.

There is about 250 billion euros left available in the EFSF, which will be leveraged 4-5 times.

This can be done in two ways:

1.By offering insurance to purchasers of eurozone members' debt - in principle making their bonds

more attractive to investors and thereby lowering governments' borrowing costs.

2.By setting up a special investment vehicle which big private and public investors, including

countries such as China, could contribute to.

Both means could be used simultaneously depending on circumstances.

The framework for the new, increased fund should be in place in November.

Bank recapitalisation

European banks will be required to raise about 106 billion euros in new capital by June 2012.

This would help shield them against losses resulting from any government defaults and protect

larger economies - like Italy and Spain - from the market turmoil.

Conclusion

The emergency deal of Brussels is comprehensive and is hoped to mitigate the rigour of the debt

crisis which has threatened the financial stability of not just Europe but virtually the entire global

economy.

Peace deal in Nepal


Question 1 | (250 Words): Discuss the recent multilateral political agreement in Nepal. How will its

provisions help in political transition in the country?

A historic agreement has been arrived at among the main political parties in Nepal. This

agreement ends political deadlock that has lasted more than three years since Nepal made a

transition towards elected democracy.

The agreement was arrived at among the Unified Communist Party of Nepal (Maoist), the Nepali

Congress (NC), the Communist Party of Nepal (Unified Marxist Leninist), and the Madhesi parties.

The agreement covers three areas, namely the 1. peace process, 2. Constitution writing and

3. power-sharing.

The main agreed points are as follows.

1.The future of 19,602 Maoist combatants has been settled. The parties agreed to integrate a

maximum of 6,500 fighters into the Nepal Army (NA) and provide rehabilitation and cash packages

to the rest. Combatants will be integrated on an individual basis, and will have to meet the norms of

the security force. To determine ranks, the norms of the security organs will be taken into account.

There will be bridging and educational courses for the combatants. Those combatants who opt for

voluntary retirement will get between $6,300 and $10,000 approximately, depending on their rank.

There will be packages between $7,600 and $11,400 for those who prefer rehabilitation.

2.Maoist weapons will come under the government.

3.The Maoists have also committed to return property confiscated during the insurgency.

4.A Truth and Reconciliation Commission, Disappearances Commission, a high-level political

mechanism to oversee the peace and Constitution process, and an experts' team to address state

restructuring issues would also be constituted.

5.The parties have also agreed to complete the process of regrouping of combatants by November

23.

6.The parties also agreed to prepare the first draft of the Constitution by November 30.

7.Though not in the agreement, it is being believed that a power-sharing arrangement had also been

worked out, whereby the NC will lead the government which will hold elections after Constitution

promulgation.

The leaders have expressed optimism that the agreement would enable the successful conclusion of

political transition in Nepal.

Science - Technology & Environment



India close to eradicate Polio

India has reached close to wiping out polio.

There have been no new cases for more than nine months, making it the longest polio-free period

since the global eradication campaign was launched.

The only case reported this year was in the state of West Bengal in January 2011. There were 39

cases reported over a similar period in 2010.

India is one of only four countries in the world where polio is still endemic. The virus is also prevalent

in Afghanistan, Pakistan and Nigeria.

Earlier, Uttar Pradesh has been one of the worst-affected regions in the world's fight against polio

with hundreds of cases reported until a few years ago. Of the 549 polio cases in India in 2008, 297

were in Uttar Pradesh.

India's efforts to reduce polio cases have been praised by international health organisations.

Every year, India holds two national immunisation days in January and February and

21-24 oct - 6 nov

Documents

district administration

old wooden footbridge

arunachal pradesh

deadly footbridge collapse

state government

madhya pradesh

andhra pradesh

swift development