21-24 oct - 6 nov
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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
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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.
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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
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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
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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.
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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
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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
Possible Question/s for Main Examination
Question 1 | (250 Words): The legal provisions and procedures governing death penalty in India
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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
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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
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
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.
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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,
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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,
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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.
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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
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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
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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.
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
National Manufacturing Policy
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Possible Question/s for Main Examination
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
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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
Possible Question/s for Main Examination
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
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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
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
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
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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.
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
Recent shift in India - Nepal relations
Possible Question/s for Main Examination
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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
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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.
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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
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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
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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
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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
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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
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International Affairs & Institutions
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
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.
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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
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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
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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.
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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
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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.
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
Brussels Agreement to avert Eurozone Crisis
Possible Question/s for Main Examination
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
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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
Possible Question/s for Main Examination
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.
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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
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
India close to eradicate Polio
India has reached close to wiping out polio.
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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