IASBUZZ SEPTEMBER 2018 EDITION

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Contents GEOGRAPHY, ENVIRONMENT AND ECOLOGY ............................................................................................................... 4

International Bio-Diversity Day .................................................................................................................................. 4

Cyclone Sagar ............................................................................................................................................................. 4

GM Crops ................................................................................................................................................................... 5

POLITY AND GOVERNANCE ............................................................................................................................................ 7

Article 35A & Article 370 ........................................................................................................................................... 7

A second Chamber for Odisha ................................................................................................................................... 8

Blasphemy Bill of Punjab ........................................................................................................................................... 9

The Zojila Tunnel Project ......................................................................................................................................... 10

Essential Diagnostics List (EDL) ................................................................................................................................ 10

Pakul Dum Dam ....................................................................................................................................................... 11

One Candidate, One Seat......................................................................................................................................... 12

The Tussle Between Centre & Collegium Regarding Appointment Of Supreme Court Judge ................................. 13

Report on Varieties of Democracy-2018 ................................................................................................................. 14

National e-Commerce Policy- What & Why ............................................................................................................ 15

Indian Health Care Sector- Vision And Failure ......................................................................................................... 17

Right to Education (RTE) Act: Amendments and Concerns ..................................................................................... 18

ACTS AND BILLS ........................................................................................................................................................... 20

The MPD Act- What & Why ..................................................................................................................................... 20

Model Agriculture Produce And Livestock Contract Farming And Services (Promotion & Facilitation) Act, 2018 . 21

Prevention of Atrocities Act, 1989 ........................................................................................................................... 21

SCHEMES AND POLICIES OF GOVERNMENT ................................................................................................................ 23

Facial Recognition in Aadhaar Authentication and its Advantages ......................................................................... 23

IP NANI ..................................................................................................................................................................... 23

National Policy On Biofuels – 2018 .......................................................................................................................... 24

Comprehensive Telecom Development Plan (CTDP) ............................................................................................... 24

Aurangabad Industrial City ...................................................................................................................................... 25

Project Asita ............................................................................................................................................................. 26

Amendments to the Prevention of Corruption Act – 1988 passed ......................................................................... 27

Accelerated Promotion With Consequential Seniority For SC/ST In Public Employment ....................................... 28

National E-Commerce Policy ................................................................................................................................... 29

ECONOMY .................................................................................................................................................................... 32

Restricted Procurement Scheme ............................................................................................................................. 32

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GST Continues To Suffer From Inadequate Planning! ............................................................................................. 33

Air India Crisis .......................................................................................................................................................... 34

Foreign Assistance for Disaster Relief ...................................................................................................................... 35

RBI and The Indian Economy ................................................................................................................................... 36

Sinking Air India ....................................................................................................................................................... 38

SCIENCE AND TECHNOLOGY ........................................................................................................................................ 39

Alien asteroid 2015 BZ509 ....................................................................................................................................... 39

Nipah Virus .............................................................................................................................................................. 39

SECURITY...................................................................................................................................................................... 41

AFSPA ....................................................................................................................................................................... 41

INTERNATIONAL AFFAIRS AND GLOBAL ISSUES .......................................................................................................... 43

Man Booker Prize 2018 ........................................................................................................................................... 43

Afrasia Bank Global Wealth Migration Review 2018 ............................................................................................... 43

Dispute Settlement Mechanism in WTO ................................................................................................................. 44

Brexit Negotiations and the challenges ................................................................................................................... 45

Strategic Trade Authorisation-1 list ......................................................................................................................... 46

Indo- South Korea CEPA ........................................................................................................................................... 48

ETHICS .......................................................................................................................................................................... 50

HISTORY AND CULTURE ............................................................................................................................................... 51

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GEOGRAPHY, ENVIRONMENT AND ECOLOGY

International Bio-Diversity Day

Relevancy G.S. Paper 3

Why in news?

The Convention on Biological Diversity is celebrating the International Day for Biological Diversity on May 22, 2018.

International Day for Biological Diversity:

The United Nations proclaimed May 22 ‘The International Day for Biological Diversity (IDB)’ to increase understanding and awareness of biodiversity issues.

The Convention on Biological Diversity is celebrating the International Day for Biological Diversity on May 22, 2018, with the theme “Celebrating 25 Years of Action for Biodiversity”.

The celebration comes with an aim to highlight the progress made in the achievement of its objectives at the national and global levels on biodiversity.

The aim to celebrate the International Day for Biological Diversity is to make people aware of the importance of biodiversity issues.

There have been different themes of celebrations every year.

The Convention has three goals: o the global conservation of biodiversity o its sustainable use o the equitable sharing of its benefits

Achieving these objectives is integral to meet goals for sustainable development.

Protecting and restoring ecosystems and ensuring access to ecosystem services are necessary for the eradication of extreme poverty and hunger.

Reducing deforestation and land degradation and enhancing carbon stocks in forests, drylands, rangelands and croplands are needed for mitigating climate change.

Protecting the biodiversity of forests and watersheds supports clean and plentiful water supplies.

From 2018 onwards, Parties to the Convention will begin work on a new action plan to ensure that, by 2050, biodiversity is valued, conserved, restored and wisely used for the benefit of all people.

Cyclone Sagar

Relevancy G.S. Paper 1,3

Why in news? An advisory was issued to Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and the Lakshadweep

over cyclonic storm 'Sagar' by IMD. Cyclone SAGAR:

The India Meteorological Department recently issued an advisory to the following over cyclonic storm 'Sagar'.

o Tamil Nadu o Kerala

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o Karnataka o Goa o Maharashtra o Lakshadweep archipelago

This cyclonic storm lay centered over the Gulf of Aden, about 390 km east-northeast of Yemen's Aden city and 560 km west-northwest of Socotra Islands.

Fishermen were advised not to venture into Gulf of Aden and adjoining areas of west central and southwest Arabian Sea during the next 48 hours.

Sagar is the name given by India, which is part of cyclone name list for the Northern Indian Ocean.

GM Crops

Relevancy GS Mains Paper-3, Economy, Biodiversity

Why in news? There is a ban on local production and import of foods having genetically modified (GM) content in

India still GM food has widely penetrated the Indian markets. This has led to no real health or environmental consequences, which only supports the assertion that

GM food is safe. What are the drawbacks of the same?

“Centre for Science and Environment” (CSE) study indicated that as much as 32% of the processed foods marketed in India carry GM ingredients.

As GM imports are banned, importers have to currently make a declaration that their goods are free of GM components at the customs.

Yet, nearly 80% of the marketed foods that tested GM-positive in the CSE study were imported in contravention of the ban.

More significantly, some of the GM products falsely claimed on their labels to be GM-free, which is a clearly spiteful violation to deceive consumers.

All this reflects poorly on the country’s GM regulatory systems. How much GM crop is permitted in India?

Currently, BT cotton is the only approved GM crop for commercial cultivation in India and it accounts for 90% of the cotton acreage now.

While no GM food crop has been permitted thus far, GM foods have already deeply penetrated into the Indian markets.

Notably, Cottonseeds (of BT-cotton), which bear GM DNA, are routinely fed to cattle whose milk is part of regular human diet.

In recent years, even cottonseed oil has begun to be used as a cooking medium individually or admixed with other edible oils.

This oil, if not properly refined, can retain remnants of GM DNA. What the various opinions on GM?

The fundamental issue really is the impact that the genetically tweaked foods can have on health and environment.

If the vociferous anti-GM lobby argues that “GM Food” can pose wide-ranging hazards but most scientists disagree on this.

In fact, there has been no detectable incidence of health or environmental hazard due to GM crops in the past 2 decades (since GM trials began).

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Also, several scientific studies conducted in the countries where GM crops are extensively farmed and consumed have not found any adverse effect.

What is the solution?

Poor regulations in India have resulted in careless sowing of BT-Cotton and the extensive penetration of GM foods into the markets.

Despite these serious lapses, hardly any harmful fallout has been observed until now, which is hence a vindication of safety of GM crops.

The government should, therefore, take note of these facts and lift the ill-advised embargo on the approval of new GM seeds.

The cutting-edge technology of genetic manipulation needs to be put to gainful use for the benefit of farmers, consumers and biotech-based industries.

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POLITY AND GOVERNANCE

Article 35A & Article 370

Relevancy GS Mains Paper-2 Judiciary

Why in news? The Supreme Court is hearing petitions challenging the validity of Art 35A. The provisions need an understanding in the context of the solemn promises at the heart of the

Indian federation. What is Art 35A?

Art 35A was inserted as part of the amendments made through a 1954 presidential order, imposed under Article 370.

It empowers J&K to define a class of persons as constituting “permanent residents” of the State.

Also, it allows the government to confer on these persons, special rights and privileges. These relate to matters of

public employment

acquisition of immovable property in the State

settlement in different parts of the State

access to scholarships

other such aids that the State government might provide

It exempts such legislation from being annulled on the ground that they infringe on any of the fundamental rights.

What is the case?

The petition considers this immunity granted to J&K’s laws as discriminatory.

It also claims that Art 35A could not have been introduced outside the ordinary amending procedure prescribed under Article 368.

It thus calls for declaring Art 35A unconstitutional.

A three-judge Bench of the court intends to consider if Article 35A infringes the Constitution’s basic structure.

Based on this, it would decide if the case has to be referred to a larger bench for further examination.

Is Art 35A and Art 370 justified?

The law on the subject is well settled as previous Benches have already shown approval for the 1954 presidential order.

Even otherwise, Art 35A is not amenable to a conventional basic structure challenge.

This is because India’s Constitution establishes a form of asymmetric federalism.

Clearly, some States enjoy greater autonomy over governance than others.

This asymmetry is typified by Article 370.

In its original form, Article 370 accorded to J&K a set of special privileges.

This includes an exemption from constitutional provisions governing other States.

Also, under J&K’s Instrument of Accession, it restricted Parliament’s powers to legislate over the State to three core subjects.

These are defence, foreign affairs and communications.

Parliament could legislate on other areas only through an express presidential order.

This should be made with the prior concurrence of the State government.

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For subjects beyond the Instrument of Accession, the further sanction of the State’s Constituent Assembly was also mandated.

Finally, the Art 370 also granted the President the power to make orders declaring the provision inoperative.

But this authority could be exercised only on the prior recommendation of the State’s Constituent Assembly.

Even changes made to the Constitution under Article 368 will not mechanically apply to J&K.

For such amendments to apply to the State, specific orders must be made under Article 370.

This is only after securing the J&K government’s prior assent.

Moreover, such amendments will also need to be ratified by the State’s Constituent Assembly.

So evidently, Art 370 represents the only way of taking the Indian Constitution into J&K.

Also, Article 370 is as much a part of the Constitution as Article 368, thereby to justify the validity of Art 35A.

A second Chamber for Odisha

Relevancy GS Mains Paper-2 Polity

Why in news?

Odisha’s plan calls for a national policy on the utility of a second chamber in States. What is Odisha's proposal?

Odisha now wants to join the group of States that have an Upper House.

The State Cabinet has approved a 49-member Legislative Council.

It has accepted the report of a committee set up in 2015.

The committee studied the functioning of the second chamber in other States and made recommendations.

What is the Parliament's stance?

The State Assembly has to pass a resolution for the creation of the Council, by a majority of its total membership. Thereafter, Parliament has to enact a law to create it.

Notably, two Bills introduced in the Rajya Sabha in 2013 for establishing Legislative Councils in Assam and Rajasthan are still pending which apparently indicates the lack of support for such a move.

A parliamentary committee that went into these Bills cleared the proposals, but struck a cautionary note as it wanted a national policy on having an Upper House in State legislatures to be framed by the Union government.

This is to ensure that a subsequent government in the State does not abolish it.

It also favoured a review of the provision in the law for Councils to have seats for graduates and teachers.

How a second chamber will benefit?

The advantages of having a bicameral legislature are well-known.

An Upper House provides a forum for academicians and intellectuals.

They are arguably not suited for the nature of electoral politics.

In essence, it provides a mechanism for a more serious appraisal of legislation. What are the concerns?

If there was any real benefit, all States in the country should have a second chamber.

The fact that there are only seven such Councils suggests the lack of any real advantage.

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Also, there is, clearly, the absence of a broad political consensus on the issue.

Concerns - The forum is likely to be used to accommodate party functionaries who fail to get elected.

This may defeat the objective of getting intellectuals into the legislature.

There is also a question of giving graduates the privilege of being people’s representatives in a democracy.

Today, legislatures draw their talent both from the grassroots level and the higher echelons of learning.

There are enough numbers of doctors, teachers and other professionals in most political parties today.

Besides, the second chamber is also an unnecessary drain on the exchequer of the state.

It is also a restraining force against the dominance of elected majorities in legislative matters.

Given these, Odisha’s proposal may give the country an opportunity to evolve a national consensus on Legislative Councils.

Blasphemy Bill of Punjab

Relevance GS Mains Paper-2 Polity, Union and States

Why in news? The Punjab Cabinet recently decided to amend the law to make acts of “sacrilege against the

religious books” punishable with life imprisonment. This move is regressive, excessive, and fraught with undesirable consequences.

A brief background:-

The Punjab assembly had passed a bill in 2016 for protecting the “Guru Granth Sahib” (holy book of the Sikhs) against sacrilege acts.

The Centre had then returned the Bills, saying that protecting the holy book of only one religion would make it discriminatory and anti-secular.

Notably, prior permission of the Central or State government is needed to prosecute someone under such sections.

Hence, currently, the same bill has been cleared with slight amendments to cover other religious books like the “Bible, Koran and Bhagvad Gita”.

The bill, if passed, will strengthen the existing ‘blasphemy law’ which criminalises acts that outrage religious feeling.

What are the issues with the bill?

The 2016 bill was piloted by the Shiromani Akali Dal government following allegations of desecration of the holy book.

Back then, opposition to the Bill was then limited to the question whether holy books of other religions did not warrant the same protection.

The bill was a clear case of pandering to religious sentiments for political populism, and there was little concern for the long term implications.

Considering the tenets of the bill, it may also set off a needless flurry of legislation in the rest of India to pander to different groups.

Notably, existing provisions under the “Indian Penal Code” itself is sufficiently strong to protect the sanctity of religious symbols and sentiments.

Present Blasphemy Laws (to protect religious faith) already provide for a 3 year jail term for disrespecting religious symbols.

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But the current bill’s proposal for enhancing the punishment to a “life term” is a little excessive and problematic.

Blasphemy laws are largely aimed at preserving public order that might get disturbed by actions that flare up religious sentiments.

While the sanctity of the religion is indeed important, a secular state works not to preserve religion but to preserve law and individual freedoms.

In this context, actions perpetrated with the deliberate and malicious intention of outraging religious feelings and stir passions is to be curtailed.

Hence, while laws need to be a minimum safeguard and limited in scope, the current proposal seeks to appease religious groups disproportionately.

What is the way ahead?

Significantly, ‘sacrilege’ itself is a vague term, and would render the section too broad, work counterintuitive to freedom of speech.

Notably, there is a history of misuse of laws aimed to protect religious sentiments, which is a convenient tool to curtail liberal views.

Many fringe groups weaponise these provisions for their own political ends, despite a clear lack of ground to press charges against the accused.

Hence, there is actually a case to dilute the existing provisions and no rational to further the pandering of religious groups.

The Zojila Tunnel Project

Relevancy G.S. Paper 2

Why in news?

Union government has inaugurated the Zojila tunnel project. The Zojila tunnel project:

The Zojila tunnel project will provide all-weather connectivity between Srinagar, Kargil and Leh.

At 14.2 km it will be the country’s longest road tunnel.

The tunnel will cut down the time taken to cross the Zojila pass from the 3.5 hours to 15 minutes.

It will also be Asia’s longest bi-directional tunnel and will be built at a cost of ₹6,809 crore.

It is expected to be completed in five years.

The pass is situated at an altitude of 11,578 ft on the Srinagar-Kargil-Leh National Highway and remains closed during winters due to heavy snowfall, which cuts off Ladakh region from Kashmir.

The Centre and the state government are working together to take the development work forward.

Many local people will get employment opportunities during the development of the tunnel.

The tunnel will have a transverse ventilation system, uninterrupted power supply, tunnel emergency lighting, CCTV monitoring, pedestrian cross passages at every 250 metres, as well as emergency telephones and fire-fighting cabinets at every 125 metres.

Essential Diagnostics List (EDL)

Relevancy G.S. Paper 2,3

Why in news?

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The World Health Organization (WHO) has published its first essential diagnostics list (EDL). Essential diagnostics list (EDL):

The World Health Organization (WHO) has published its first essential diagnostics list (EDL).

It is a catalogue of the 113 most critical categories of diagnostics for common and priority diseases.

Of the 113 types of diagnostics selected for the list, 58 are intended to diagnose a wide range of common conditions, both communicable and noncommunicable.

The remaining 55 diagnostics are intended to diagnose or monitor priority diseases.

The list itself provides information about each test category, including the tests’ intended use, format, and the appropriate setting the test is suited for.

The list also includes information on applicable WHO guidelines for the various types of diagnostics and notes whether there are WHO prequalified products available within a particular category.

It will serve as a tool that can be useful to all countries, to test and treat better and also to use health funds more efficiently by concentrating on the truly essential tests.

The list is similar to WHO’s essential medicines list (EML).

EML has been updated every two years since 1977 and is used as a reference by health authorities around the world to guide procurement decisions for critical drugs.

WHO will update the EDL on an annual basis.

Updation will be based on input from its expert group and will expand significantly.

It will do so with the inclusion of diagnostics for other focus areas, such as: o antimicrobial resistance o emerging pathogens o neglected tropical diseases

Pakul Dum Dam

Relevancy G.S. Paper 2

Why in news? Pakal Dul hydro power project to provide 12 pc free power to Jammu & Kashmir.

Pakul dum dam:

The Pakal Dul Dam is a proposed concrete-face rock-fill dam on the Marusadar River, a tributary of the Chenab River, in Kishtwar district of the Indian state of Jammu and Kashmir.

The primary purpose of the dam is hydroelectric power generation.

It will divert water to the south through a 10 km (6.2 mi) long headrace tunnel and into power station on the reservoir of the Dul Hasti Dam, on the Chenab.

In February 2014, the project was awarded to a consortium of domestic and foreign countries.

It includes Patel Engineering, Bharat Heavy Electricals and Turkey's Limak Holding.

Pakistan, who relies on the Chenab downstream, views the dam as a violation of the Indus Water Treaty, whereas India states it is as per Treaty Provisions.

The 1,000 megawatt Pakal Dul hydroelectric power project will be completed in 66 months.

It will provide 12 per cent free power to the state.

It will not only be the largest hydroelectric power project in the state but also the first storage unit.

The project is expected to generate employment for 3,000 persons during construction phase and to 500 persons during operation stage.

The government of J&K shall be getting 12 per cent free power after 10 years of commissioning of the project and water usage charges as applicable.

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Additional 1 per cent free power will go towards Local Area Development Fund (LADF).

Also, the state will have first right to purchase balance power.

Also, the 330 megawatt Kishanganga hydroelectric power project in Jammu and Kashmir will provide 13 per cent free power to the state besides creating employment opportunity.

The project on the river Kishanganga, a tributary of Jhelum, is estimated to generate 1,712.95 million units of electricity.

One Candidate, One Seat

Relevancy G.S. Paper 2, Polity

What is the context? The Election Commission has told the Supreme Court that it supports the proposal to allow one

candidate to contest from only one constituency in an election. The EC expressed this view in an affidavit it filed in the petition over the matter.

Brief background:-

The Supreme Court had in December 2017 issued notices seeking replies from the Election Commission and the Centre on the issue.

At the time, the Supreme Court had said the practice of one candidate contesting multiple seats was a drain on the exchequer since it necessitated bypolls.

A petition has been filed in the Supreme Court challenging Section 33(7) of the Representation of the People Act of 1951 that allows a person to contest elections to Parliament and state assemblies from two constituencies and sought an end to the practice.

What’s the issue?

Political parties across the country field senior leaders from more than one seat in a bid to ensure victory.

If they win from multiple seats, these leader are then required to vacate other seats and continue to hold only one.

This means a general election is usually followed closely by a bye-election to the seats that have been vacated.

What is section 33(7) of RPA?

Section 33(7) of the Representation of People’s Act permits a candidate to contest any election (Parliamentary, State Assembly, Biennial Council, or bye-elections) from up to two constituencies.

The provision was introduced in 1996 prior to which there was no bar on the number of constituencies from which a candidate could contest.

Why candidates should be barred from contesting from more than one seat?

One person, one vote & one candidate, one constituency is the dictum of democracy.

However, as per the law, as it stands today, a person can contest the election for the same office from two constituencies simultaneously.

When a candidate contests from two seats, it is imperative that he has to vacate one of the two seats if he wins both.

This, apart from the consequent unavoidable financial burden on the public exchequer, government manpower and other resources for holding bye-election is also an injustice to the voters of the constituency which the candidate is quitting from.

What is the alternative suggested by the Election commission?

The ECI has alternatively suggested that if existing provisions are retained then the candidate contesting from two seats should bear the cost of the bye-election to the seat that the contestant decides to vacate in the event of his/her winning both seats.

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The amount in such an event could be Rs 5 lakh for assembly election and Rs 10 lakh for parliament election.

The Tussle Between Centre & Collegium Regarding

Appointment Of Supreme Court Judge

Relevancy GS Mains Paper-2, Judiciary, Polity

Why in news?

The Union government recently cleared the elevation of Justice K.M. Joseph to the Supreme Court. Appointment of a Supreme Court judge:-

The Chief Justice of India and the Judges of the Supreme Court are appointed by the President under clause (2) of Article 124 of the Constitution.

Whenever a vacancy is expected to arise in the office of a Judge of the Supreme Court, the Chief Justice of India will initiate proposal.

The recommendation will be forwarded to the Union Minister of Law, Justice and Company Affairs to fill up the vacancy.

The opinion of the Chief Justice of India for appointment of a Judge of the Supreme Court should be formed in consultation with a collegium of the four senior-most Judges of the Supreme Court.

Appointment of K.M Joseph:-

K.M Joseph was the chief justice of Uttarakhand high court.

The five member collegium earlier recommended K.M Joseph for elevation to the SC, and it was reiterated again.

Union government has made unusual delay in first responding to the Collegium’s recommendation, and later it took more time for reconsideration of the proposal.

This had created stand-offs between judiciary and executive, and within the judiciary. The concerns with the Government’s move:-

Union government explained the delay was due to invocation of the seniority or diversity norms in appointments to the higher judiciary.

It made an issue of K.M. Joseph's relative lack of seniority among the Chief Justices of the various high courts.

It also said that his elevation would give excessive representation to Kerala, as he belongs to the state.

Union government has been splitting recommended lists and selectively approving proposals from the collegium, while holding back or returning some names.

Even in its adherence to the norm that reiteration of a recommendation is binding, the government has not been consistent.

What is the way forward?

The Centre had no option but to elevate the Uttarakhand High Court Chief Justice once the collegium reiterated its original recommendation after the Law Ministry returned his name.

But it will require more outreach by the government to assuage the anxieties expressed by senior judges in letters written to the CJI.

Given this past turbulence, the government will be watched carefully for the role it plays or doesn’t play in the future in the next big transition in the Supreme Court.

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Report on Varieties of Democracy-2018

Relevancy GS Mains Paper-2, Polity

Why in news? Recently University of Gothenburg (Sweden) has published the “Varieties of Democracy Report” (V-

Dem) for 2018. The report provides the most sweeping global examination of democracy, and India has seen a

downgrade in its overall status. What does the report cover?

The Report covers 178 countries, crunches a large number of indicators, and adds a deep historical perspective.

It is carried out rigorously, with a global team of 3,000 researchers with deep knowledge of local political contexts.

It's also backed by the European Union (EU) and funded by a multitude of different institutions and think tanks, ensuring a robust access to data.

The methodology involves classifying nations on a combination of variables and then checking for changes in overall democratic status.

The survey also does a comparison over 2007-2017 on multiple indicators. There are various categories for classification in the report. They are as follows:- Liberal Democracy

1. This category is the ideal benchmark, and every citizen in such societies is guaranteed equal rights and full freedom of expression.

2. Further, equitable access to the law, institutionalized justice system, freedom of association, participatory elections etc., are other important metrics in this category.

3. Only 39 of the 178 nations that were studied met these standards in 2017. Electoral Democracy

1. In this category, all citizens have the right to vote but certain categories of people suffer exclusion due to their socio-economic status.

2. Further, lower standards (as compared to liberal democracies) apply here, when it comes to human rights, freedom of expression and association, etc.

3. In 2017, the V-Dem reckons 56 countries qualified for this category. Electoral Autocracy

1. In this category of nations, all citizens have the vote but repression, censorship and institutionalized intimidation are very visible.

2. According to the study in this domain there were 56 nations in 2017. 3. While electoral Autocracy have severe problems they are still better off than countries that are

classified as closed autocracies. Closed Autocracy

1. In a closed autocracy, the political executive is totally free of being answerable to its people, and their rule is carried out with fear and intimidation.

2. Notably, for residents of “Closed Autocracies”, not being subjected to political persecution is a common big dream that many of them chase.

3. Worldwide, there were 27 such “closed autocracy nations” in 2017. In which category does India’s fall as per the reports classification?

India saw a slide in its ranking over the years as the quality of democracy has noticeably declined over the past decade (especially after 2014).

The study notes that infringements on media freedom and the civil society activities have spiked since the “Hindu-nationalist government” took office.

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Nonetheless, India retains a system of free & fair multi-party elections and thus, qualifies as an electoral democracy.

But it has seen major erosion in indicators such as Freedom of Expression, Rule of Law and Freedom of Association.

The future remains uncertain, as India could get better from here, or slip further down to a situation akin to the emergency era (1975-77).

Why can there be a situation akin to the emergency era (1975 -1977)?

Censorship of the media and harassment of journalists can occur gradually through “inducements, intimidations, and co-optation”.

These tactics would further lead naturally to increasing levels of self-censorship and fewer explicit criticisms of the government.

The predictable result is a narrower range of political perspectives in the public sphere, as well as a general decline in the freedom of expression.

Only the “Voter's Registry” has improved over the past 10 years and other parameters have either stagnated, or deteriorated.

This includes harassment of media, curtailment of NGOs and repression of cultural and academic expression, etc.

Even in terms of electoral transparency, the study says that intimidation and violence have increased and that party agents harass and bribe voters.

The murder and jailing of environmental and human rights activists and attempts to shut down alternate means of free expression have also increased.

Further, rapidly worsening “Gini coefficient” (increasing economic inequality) is another worrying indicator for sustaining democracy.

National e-Commerce Policy- What & Why

Relevancy GS Mains Paper-2, Government Policies and Intervention

Why in news? The “task force” of the Commerce Ministry has submitted its recommendations on a draft national e-

commerce policy. The suggestions are comprehensive and if accepted, it can significantly impact the development of e-

commerce in India. How is India’s e-commerce sector doing?

India’s e-commerce sector, currently estimated to be worth around $25 billion, is expected to grow to $200 billion over the next 10 years.

Much of the projected growth in the sector is due to greater consumer access created by cheaper smart-phones, data tariffs, and enhanced connectivity.

Notably, the expansion of 3G and 4G networks have put consumers online even in a considerable number of smaller cities and towns.

Further, having covered the metros and large cities, the bigger e-commerce firms expect their future growth to come from tier-II and tier-III towns.

These factors are hence resulting in job creation, productivity improvement, and increased consumer presence on online platforms.

How the new e-commerce policy is born?

For India to fully benefit from the opportunities that are opening up in cyber-space, it was felt that policymakers have to evolve suitable support structures.

To further cyber-businesses, it is imperative to have clearly laid down rules for e-commerce in the country that are consolidated as one set.

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In this context, the national e-commerce policy was envisioned to create regulations under which online retail will be comprehensively governed.

In this context, a “think tank” headed by Commerce Minister “Suresh Prabhu” was set up with secretaries from other and ministries industry representatives.

Subsequently, a task force was set up under the commerce secretary to synthesise the ideas of the think-tank and draft an e-commerce policy.

The task force has now submitted its report and “draft e-commerce policy”. What does the task force say about the inventory model for e-commerce?

The government does not currently allow foreign direct investment (FDI) in e-commerce companies that hold their own inventories.

Hence, online retailers with foreign investments can only operate as marketplaces that let sellers list their products on their platform.

But foreign investors have circumvented this clause by establishing subsidiaries that directly list products on their platform.

Separately, in 2016, the government mandated that no platform company should have more than 25% of its sales coming from a single seller.

Due to the restrictions on the inventory-based model, e-commerce companies have not been able to offer their in-house brands extensively.

The task force has recommended allowing FDI in inventory-based e-commerce firms up to 49% in order to facilitate sale of its own brands.

But it also seeks to establish the condition that the e-tailer should sell 100% Made-in- India products through its inventory.

Further, the task force has sought to regulate subsidiary firms (or group companies) of “Online Marketplace Companies” from listing on their platform.

This is to prevent them from directly or indirectly influencing prices of goods and services on their platforms.

Further, in this way, the marketplace firms will also not be able to offer deep discounts through their in-house companies listed as sellers.

What about various consumer grievances?

There have been several incidents across the country of customers expressing dissatisfaction with products they purchased online and its delivery.

This is an inherent flaw of the marketplace model, where platforms do not have full control over the supply chain.

Consumer Affairs Ministry’s “National Consumer Helpline” is presently the only redressal mechanism available for such grievances.

Currently, “National Consumer Helpline” is receiving more than a lakh complaints related to the e-commerce sector per annum.

To effectively address consumer grievances, the task force has suggested the setting up of a Central Consumer Protection Authority (CCPA).

CCPA has also been envisioned as the nodal agency for intra-government coordination, and for recording fraudulent e-commerce practices.

What about the recommendations regarding Payment Options?

The task force seeks to make it mandatory for e-commerce platforms to provide the government’s RuPay payment option.

In order to bring foreign e-commerce sites on par with their Indian counterparts, it has been suggested to make two-factor authentication a rule for all payment systems.

With the aim to make online payments safer, the task force has also suggested creating a “”fraud intelligence mechanism”.

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Notably, a large chunk of payments for online purchases is made through the cash-on-delivery option as there is a lack of trust for online payment.

Indian Health Care Sector- Vision And Failure

Relevancy GS Mains Paper-2, Health

What is the issue?

Indian policymakers have done nothing to provide equitable medical care to all citizens cutting across classes.

India boasts of having an ultra modern healthcare infrastructure but the masses in India actually aren’t even able to afford even basic medical facilities.

What is NITI Aayog’s vision in the health sector?

The NITI Aayog’s 3 year vision document has recommended the government to prioritize preventive care rather than provide curative care.

The document has advised the government to focus on the public health as a whole and not merely restrict itself to “health care” and hospitals sector.

Further, it asks the government to better public health infrastructure to cater to the needy who can’t afford private care.

Notably, out-of-pocket expenses for medical care are about 70% of all medical expenditure in India currently.

While the vision statement spelt out seems ambitious, India’s previous track record in health care has resulted in serious skepticism.

How Indian health care sector is entrenched in class based exclusiveness?

It is a hard reality that not all medical interventions are available to every citizen who may need it due shortage of infrastructure and funds.

The major technological leaps in medicine starting from 1980s have only widened the gap between the private sector and the government hospitals.

Every government since Independence has stated egalitarianism as its goal in health care, but the reality has been rather different.

Many interventions, especially those which are very expensive, continue to be accessible only to those who can pay for them.

Notably, costly interventions are provided in a few government hospitals, but these are merely tokenism, and an attempt by governments to appear fair.

What happened recently?

Even the new “Ayushman Bharat Health Scheme” which covers a whopping 40% of India’s population seems patchy on this count.

Notably, the scheme seeks to provide secondary and tertiary care to the economically deprived class, but has a cap of Rs. 5 lakh per family per year.

While the beneficiaries can access both private and public hospitals for treatment within that limit, it is unlikely help them access costly treatments.

Notably, there are indications that an explicit “negative list” for procedures which will not be covered under the scheme, will be pronounced.

What are other drawbacks of India’s health policy?

In order to promote investments in health, governments have been giving subsidies to private players in health sector.

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Notably, it is these subsidies that have aided these private hospitals to cater to foreign clients at rates far cheaper than the western world.

As subsidies in a way are taxpayer’s money, it is a clear case of taking from the poor to give to the rich private corporate hospitals.

Private hospital chains in India have entered every segment of medical care including complex tertiary care, and diagnostics.

Most have large investors from abroad and some are effectively controlled by foreign investors, all of whom benefit from the government subsidies.

Successive governments have been increasingly dependent on the private sector to deliver health care to the masses.

The new “Ayushman Bharat Scheme” would only further this dependence and hospital chains are sure to see a significant spike in their profits.

What is the condition of our public health institutions in India?

As health care is indeed costly and out of reach for most citizens, public hospitals continue to be the only resort for the masses.

Successive government policies over the year have been favoring private health players over the public sector due to various constrains.

Public health sector has been largely under-funded, under-equipped and under-staffed, and its quality and credibility eroded over time.

Consequently, even the morale of the doctors and staff in public hospitals has taken a severe beating in comparison to their private sector peers.

If public hospitals are to be bettered, coordinated and sustained action is needed on the part of the government, which currently seems lacking.

Right to Education (RTE) Act: Amendments and Concerns

Relevancy GS Mains Paper-2, EDUCATION

Why in news? Lok Sabha recently approved an amendment to the Right to Education (RTE) Act. Giving states the power to detain students who fail an examination in Class 5 or 8 would undermine

the intent of the Act. What are the concerns?

The RTE Act guarantees and provides for the continued presence of the child in school during the formative learning phase.

Thus, detention would weaken this significant, progressive feature of the RTE Act.

Detaining is unlikely to be an incentive, when social circumstances already make it hard to ensure regular attendance.

It will allow State Boards to declare a student failed and detain her on the basis of an examination.

But RTE Act assures that no child shall be required to face any Board examination till completion of elementary education.

The NITI Aayog had found that bringing back detention in elementary schooling would increase the dropout rate.

This would impact the poor and Dalits the most, as they depend on government institutions. What are the drawbacks?

There are some genuine concerns on learning outcomes produced by India’s schooling system.

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But these are determined not only by a student’s effort. It depends on various other factors including:

1. the number and quality of teachers

2. the processes for continuous assessment 3. the active engagement of parents and the community in encouraging excellence

It is the lack of attention to some of these determinants that has created a “broken” school education system.

Detaining already disadvantaged children can only break it further.

Any dilution of the RTE Act without sufficient thought will erode a major constitutional achievement.

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ACTS AND BILLS

The MPD Act- What & Why

Relevancy GS Mains Paper-2 Government Policies and Interventions

Why in news?

Aurangabad police recently detained a city corporator under MPD Act, 1981 of Maharashtra. What is MPD Act?

It is Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug Offenders and Dangerous Persons Act (MPDA), 1981.

The Act empowers the district magistrate and the commissioner of police to exercise its provisions.

They can decide in their view if a person is acting in a manner prejudicial to the maintenance of public order.

Either of these two authorities can pass an order under the Act directing that such a person be detained.

In the first instance, an order passed under MPDA cannot exceed three months.

The person against whom the order is issued could challenge the detention before a higher court.

If the court is satisfied with his/her plea, the order can be revoked or set aside. Why was the Act made?

The mafia in Maharashtra, particularly Mumbai, was making much of its earnings from bootlegging (illegal sale or transport of alcoholic liquor).

During this period (1980s and 1990s) slumlords too were dominant in Mumbai.

The MDP Act was mainly intended at handling these groups.

Today, the police use the law mainly during a build-up to a protest or threat to law and order.

People who could cause any harm, danger or alarm or a feeling of insecurity among the general public could be detained.

The state government is looking at a proposal to bring human traffickers under the realm of MPDA.

This is to deal effectively with the issue of missing girls. What happened recently?

A city corporator is an elected member of a municipal corporation.

Sayyed Mateen Rashid of All India Majlis-e-Ittehadul Muslimeen (AIMIM), a corporator was detained under MPDA act.

The Aurangabad Commissioner cited offences like arson, rioting, inciting mob for breach of communal harmony, creating alarm in society as the reasons.

In the past, he had reportedly opposed singing of the national anthem in the Aurangabad Municipal Corporation.

Recently, he had reportedly opposed a resolution to pay tribute to former Prime Minister Atal Bihari Vajpayee.

And so, some BJP corporators allegedly beat him up and filed a complaint under the IPC.

He was accused of promoting enmity between members of communities.

He was granted bail in the IPC case but was shortly served the Commissioner’s notice under MPDA.

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Model Agriculture Produce And Livestock Contract Farming

And Services (Promotion & Facilitation) Act, 2018

Relevancy G.S. Paper 2

Why in news?

The Union Agriculture Ministry has released Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018

Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018:

The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.

In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.

It is a promotional and facilitative Act and not regulatory in its structure

Features of the Act:

“Registering and Agreement Recording Committee” or an “Officer” for the purpose at district/block/ taluka level for online registration of sponsor and recording of agreement has been provided.

Contracted produce is to be covered under crop / livestock insurance in operation.

Contract framing to be outside the ambit of APMC Act.

No permanent structure can be developed on farmers’ land/premises

No right, title of interest of the land shall vest in the sponsor.

Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers.

FPO/FPC can be a contracting party if so authorized by the farmers.

No rights, title ownership or possession to be transferred or alienated or vested in the contract farming sponsor etc.

Ensuring buying of entire pre-agreed quantity of one or more of agricultural produce, livestock or its product of contract farming producer as per contract.

Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village / panchayat at level provided.

Accessible and simple dispute settlement mechanism at the lowest level possible provided for quick disposal of disputes.

Prevention of Atrocities Act, 1989

Relevancy GS Mains Paper-2, Government Policies

Why in news?

Centre has decided to restore the original provisions of Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989.

This comes as a response to an earlier verdict of Supreme Court on the Act.

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What was the Supreme Court's verdict?

The Supreme Court had struck down some original provisions of the Act.

It issued some guidelines to protect people against arbitrary arrests under the Act.

It directed that public servants could be arrested only with the written permission of their appointing authority.

In the case of private employees, the Senior Superintendent of Police concerned should allow it.

A preliminary inquiry should be conducted before the First Information Report (FIR) was registered.

This was to check if the case fell within the ambit of the Act, and whether it was frivolous or motivated.

How did the dalit community respond?

The verdict faced sharp criticism from dalit leaders across the country and political parties.

Dalit groups claimed that the court's order diluted the true spirit of the law.

Despite widespread opposition, the court refused to stay its ruling.

So dalit groups demanded an ordinance or an Amendment Bill to restore the provisions.

Following widespread protest, the Union Cabinet had given its nod to the Amendment Bill. What does the Amendment Bill seek?

The Amendment Bill seeks to insert three new clauses after Section 18 of the original Act.

preliminary enquiry shall not be required for registration of an FIR against any person

arrest of a person accused of having committed an offence under the Act would not require any approval

provisions of Code of Criminal Procedure on anticipatory bail shall not apply to a case under this Act, “notwithstanding any judgment or order of any Court”

The Centre's decision to amend the provisions of the Act appears both reasonable and unavoidable at this juncture.

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SCHEMES AND POLICIES OF GOVERNMENT

Facial Recognition in Aadhaar Authentication and its

Advantages

Relevancy GS Mains Paper- 2 Government policies and intervention

Why in news?

UIDAI has announced a phased rollout of face recognition feature as an additional mode of authentication.

The decision:-

The Unique Identification Authority of India (UIDAI) has made facial scanning and recognition for Aadhaar-based authentication mandatory.

This will accompany the fingerprint- and iris-based scanning procedures already in place.

This added feature is being piloted for just telecom subscriptions at the moment.

A minimum of 10% of each company’s monthly authentication transactions have to be achieved through facial recognition.

The phased rollout will allow UIDAI and the industry to observe and assess any possible alterations needed.

These will be incorporated before it is available for services in other sectors. The advantage:-

The feature makes Aadhaar more inclusive, with fine-tuning detection of identity-faking.

Those who are unable to provide a clean fingerprint due to the nature of their work will get benefitted. Usually, a labourer is unable to provide fingerprint due to clay and micro-grit getting embedded in the lines of the fingers.

Many kinds of work also cause an erasure of finger-prints such as people in brick-laying to those working with corrosive chemicals such as lime, in the absence of protective gear.

The constant paper-handling could also erase finger-prints either temporarily or permanently.

So those who are deprived of services and government benefits because of this systemic issue will now be benefitted.

Also, the feature will help people affected by certain disabilities and diseases.

Facial recognition will also serve as a safeguard to prevent scams such as those involving forging finger-print records.

IP NANI

Relevancy G.S. Paper 2

Why in news? Union Minister of Commerce and Industry has recently launched the Intellectual Property (IP)

mascot ‘IP Nani’. IP Nani:

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Mascot IP Nani is a tech-savvy grandmother who is shown helping the government and enforcement agencies in combating the Intellectual Property crimes with the help of her grandson ‘Chhotu’, also known as Aditya.

This IP mascot will spread awareness about the importance of Intellectual Property Rights (IPRs) among people, especially children, in an interesting manner.

This mascot is also in line with the World Intellectual Property Organization’s (WIPO) campaign for the World IP Day 2018 which celebrated the brilliance, ingenuity and courage of the women who are driving change in our world.

It also depicts that a strong IP system can support innovative women and everyone in their quest to bring their amazing ideas to the market.

Also, the first and foremost objective of the IPR Policy 2016 is, “IPR Awareness: Outreach and Promotion”.

Under this objective, one of the key focus areas is the awareness on IPR for school children, as it is essential to nurture creativity and the ability to innovate starting out from a young age.

National Policy On Biofuels – 2018

Relevancy G.S. Paper 3

Why in news?

The government has approved National Policy on Biofuels – 2018. National Policy on Biofuels – 2018:

The Policy categorises biofuels as: o "Basic Biofuels" viz. First Generation (1G) bioethanol & biodiesel o "Advanced Biofuels" - Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to

drop-in fuels o Third Generation (3G) biofuels, bio-CNG etc.

It does so to enable extension of appropriate financial and fiscal incentives under each category.

The Policy expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.

Earlier farmers were at a risk of not getting appropriate price for their produce during the surplus production phase.

But the Policy now allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.

With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.

The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.

Comprehensive Telecom Development Plan (CTDP)

Relevancy

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G.S. Paper 2

Why in news?

Union Cabinet has approved implementation of Comprehensive Telecom Development Plan (CTDP) Project for North Eastern Region (NER) in Meghalaya.

Comprehensive Telecom Development Plan (CTDP):

Union Cabinet has approved implementation of Comprehensive Telecom Development Plan (CTDP) Project for North Eastern Region (NER) in Meghalaya.

It aims to improve mobile services in the region.

It will be funded by Universal Service Obligation Fund (USOF).

Features of the scheme: o Provision of 2G+4G mobile coverage in identified uncovered areas of the State of Meghalaya o Provision of 2G+4G seamless mobile coverage along the National Highways in Meghalaya

Benefits: o Strengthening of telecom network will result in increased penetration of mobile connectivity

in Meghalaya resulting in affordable and equitable access of communication, information and governance to people.

o Providing access to public mobile network to hitherto unreached people of Meghalaya will empower citizens with benefits of ICTs for furthering socio-economic developments.

o The innovative skill of uncovered areas will increase through broadband and internet access. Universal Service Obligation Fund (USOF):

This fund was established in 2002. It provides subsidies to ensure telegraph services are provided to everyone across India, especially in

the rural and remote areas. It is headed by the USOF Administrator who reports to the Secretary, Department of

Telecommunications (DoT). The funds come from the Universal Service Levy (USL) of 5% charged from all the telecom operators

on their Adjusted Gross Revenue (AGR) which are then deposited into the Consolidated Fund of India.

But these require prior parliamentary approval to be dispatched. The USOF works through a bidding process, where funds are given to the enterprise quoting the

lowest bid.

Aurangabad Industrial City

Relevancy G.S. Paper 2,3

Why in news?

India is set to get its first integrated industrial city within the next five years which is Aurangabad Industrial City (AURIC).

Aurangabad Industrial City:

The Delhi-Mumbai Industrial Corridor (DMIC) is one of India’s largest infrastructural programs.

The DMIC aims to develop several smart cities that will have the corridor passing through, with AURIC being one of them.

The AURIC will be built on the Shendra Bidkin belt in Aurangabad.

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AURIC will offer high-value, sustainable infrastructure that will support long-term economic vitality, a high quality of life, and a knowledge-based ecosystem with breakthrough innovation and efficiency.

The infrastructure will focus on clean, reusable, and recyclable methodologies.

AURIC will be based on the outskirts of Aurangabad and will be built on 10,000 acres of land.

AURIC’s primary focus will be to promote industries, with 60% of the land dedicated to industrial use.

The remaining 40% of the land will be used for residential and commercial purposes, having institutions, open spaces, and other cultural amenities, as reported by the Better India.

AURIC might operate majorly on recycled water as the industrial city will treat sewage and effluent water, so that residents can use the water for other purposes.

Roughly 42% of water in AURIC will come through recycled water.

The AURIC plans to instil the concept of “walk to work” which means housing options, workplaces, and shopping centres will be in close proximity to each other.

Other than minimising vehicle usage, walking to work or to run errands will promote a healthy lifestyle.

The industrial city of Aurangabad is meant to attract global investors.

Most importantly it will spread to other areas surrounding Marathwada.

The tribal belt of Nandurbhar, Nashik, and Dhule will also be developed so as to accelerate growth in the districts.

Project Asita

Relevancy G.S. Paper 2

Why in news? The Government has called for the speedy implementation of the Yamuna Riverfront Development

project to make the river accessible to the people of Delhi. Project Asita:

The project Asita, which is another name of the Yamuna river, aims to restore, revive and rejuvenate its flood plains and make them accessible to the people of Delhi.

‘Riverfront walks’ is a major component of the project.

It will enable people to develop a relationship with the Yamuna.

A special focus of the project is on reviving the river’s bio-diversity in the national capital.

The project envisages creating a green buffer area of approximately 300 metres wide, along the river edge with species of riverine ecology.

A wide belt of 150 metres, along the peripheral roads, will be developed as greenways for public amenities.

It will also include a continuous trail of pathways and cycle tracks.

To revive the ecosystem of the flood plains, wetlands will be created to store the flood waters and also to improve groundwater recharge.

This will eventually result in flourishing of bio-diversity in the flood plains.

An environmentally conscious approach for integration of the river into the urban fabric of the city will be adopted.

A people-friendly bio-diversity zone will be created, for people to interact freely with the river’s ecosystem.

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Amendments to the Prevention of Corruption Act – 1988 passed

Relevancy GS Mains Paper-2 Government Policies and Interventions

Why in news? Recently the parliament passed the crucial amendments to the “Prevention of Corruption Act –

1988”, to give more teeth to the anti-graft law. How did the amendment come up?

The Prevention of Corruption (Amendment) Bill, 2013 was sent to a Parliamentary Standing Committee for discussions.

The committee gave its report in 2014, the Law Commission subsequently came up with an extensive report on the same in 2015.

A Select Committee of Rajya Sabha studied the amendments and finalised its recommendations in August 2016, and then a new bill was drafted.

The current bill i.e, “Prevention of Corruption (Amendment) Bill, 2018” was passed by both houses of the parliament recently.

What are the important aspects of the new bill?

The new bill describes bribe as an “undue advantage”, on the lines of “United Nations Convention against Corruption”, which India ratified in 2011.

Any “gratification” other than legal remuneration mostly official salaries and perks received by a public servant can be construed as an undue advantage.

Notably, “Gratification” was stated to include things that can’t be measured in terms of money, as well as “gifts”.

As the scope for investigating agencies to misuse the vast provisions to harass public servants is high, the need for precautions was stressed.

The new law seeks to punish collusive bribe givers too with up to 7 years in jail and further fined accordingly.

Further, the Select Committee wanted courts to decide the minimum punishment for bribe givers on the merits of the specific case.

In contrast to collusive bribe givers, the bill states that ones who are forced to bribe (coerced bribe givers) to access services shall not be prosecuted.

Coerced bribe givers are required to inform the officials of the same within a week’s time since the bribe was given to gain the exemption.

As the situation might not be favourable for all coerced bribe givers to intimate officials within a week, some MPs voiced that the time needs to be extended.

Further, activists have warned that the government officials might delay providing services till 7 days from the receipt of bribe to escape being reported.

What are the other aspects?

Earlier, the punishment for corruption was “a minimum of 6 years, which was extendable up to 3 years fine”.

This has been enhanced to a minimum of 3 years, which is extendable up to 7 years with fine, which can go up to 10 years for a repeat offender”.

Under the new bill, public servants processing assets disproportionate to his/her legal sources of income will be deemed to have committed a crime.

Further, law enforcers have been empowered to immediately attach such property of a public servant, until a proper explanation is received.

What are the issues?

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While it is desirable for corruption cases to be concluded between two and four years from the date of filing the case, it usually gets very delayed.

The new law mandates pre-certification by a “competent authority” for prosecuting government functionaries at all levels, in order to avoid misuse.

As this immunity was earlier available only to officials of the level of Joint Secretary and above, this is likely to slow down prosecution.

Nonetheless, as a maximum of 3 months time has been set for approval/denial of permission for prosecution, the government claims it won’t slow cases.

Accelerated Promotion With Consequential Seniority For SC/ST

In Public Employment

Relevancy GS Mains Paper-1,2 Government Schemes and Policies, Polity, Judiciary

Why in news?

Recently the Centre told the Supreme Court that all SC/ST employees must get reservation in promotions.

The case is in relation to a 2006 Supreme Court verdict in M Nagaraj vs. Union of India case. What was the 2006 verdict about?

In the 2006 verdict the SC had ruled that reservation in promotion of government servants was not mandatory for the state.

However, if the state wanted to exercise its discretion, they were free to do so.

The government can introduce a quota in promotion for its SC/ST employees only if they prove

that the particular Dalit community is backward

it was inadequately represented

such a reservation would not affect the overall efficiency of public administration

The opinion of the government should also be based on quantifiable data.

Hence, backwardness, inadequacy and administrative efficiency were “compelling reasons” for reservation.

But despite these, the state will have to ensure that its reservation provision does not lead to excessiveness.

This means that the state cannot breach the ceiling limit of 50% or eliminate the creamy layer or extend reservation indefinitely.

The judgement excluded the 'creamy layer' in SC/ST reservation during promotion.

The judgment said the three qualifiers were meant to prevent “reverse discrimination” by State.

However, the judgement was contested by the Centre and the constitution bench is now hearing it. What were the concerns?

The Centre said the provision has led to a deprivation of the Dalit communities.

The government also objected to the creamy layer concept among the SC/ST as it was becoming a hindrance.

Besides, getting quantifiable data for "inadequate representation" had many procedural limitations.

Also, the elaborate exercise is leading to a large number of posts lying vacant.

The SC/ST communities have already faced centuries of deprivation at the hands of society.

They have been deprived of access to temples, schools and the basic facilities of life as they are "presumed backward”.

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What does the Centre demand?

The Centre highlights the need to show “affirmative action” by giving SC/STs equality of opportunity.

It pushes for providing “accelerated promotion with consequential seniority” for SC/ST members in public employment.

"Consequential seniority" is when an SC/ST employee is promoted purely on reservation basis despite another person waiting for promotion is actually senior to him/her.

The Centre wanted a total of 22.5% (15% for SC+7.5% for ST) posts reserved for promotion for SC/ST in public employment.

National E-Commerce Policy

Relevancy GS Mains Paper-2, 3

Why in news? Recently a Commerce Ministry task force submitted its recommendations on drafting of national e-

commerce policy. Why was the task force set?

The task force was set up by a 70-member think tank headed by the Minister for Commerce and Industry.

It was set to suggest a framework for the national policy on e-commerce.

With the task force's recommendations in place, the think tank will now work on creating a draft policy.

It is the final draft of the think tank which will be taken up by the government. What are the recent developments?

India’s e-commerce sector is currently estimated to be worth around $25 billion.

It is further expected to grow to $200 billion over the next 10 years.

Cheaper smartphones and data tariffs, and enhanced connectivity contribute to the growth prospects.

The bigger e-commerce firms have largely covered the metros and large cities.

As a next phase, they could move to tier-II and tier-III towns.

Expansion of 3G and 4G networks to these towns have put more consumers online. Why do we need such a policy?

The e-commerce growth has led to job creation, productivity improvement, and increased online presence of consumers.

To benefit from these opportunities, it is essential to be responsive to the underlying challenges.

There is thus the need for clearly laid-down rules for electronic commerce in the country.

Many of these rules currently exist in some or the other form.

But they are enforced by a multiplicity of government departments and regulators.

Hence, a national e-commerce policy would consolidate the various norms and regulations to cover all online retailers.

What are the restraints?

India does not allow FDI in e-commerce companies that hold their own inventories/stocks [inventory-based model].

On the other hand, the government allows 100% FDI in the marketplace model.

Here, the marketplace operators cannot hold inventory (stocks) and sell products on their platform. They can only facilitate the online sale process for other vendors.

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To name a few there is Amazon and foreign-funded companies in India including Flipkart, Shopclues and Snapdeal. These only provide platforms to other retailers and vendors by allowing them to list their products.

However, huge share of investments in e-commerce firms are coming from abroad.

So the e-tailers are setting up seller entities that sold foreign firms' products on the platforms.

Eventually, in 2016, the government mandated that no platform should have more than 25% of its sales coming from a single seller.

Also, they are not allowed to directly or indirectly influence prices of products sold on their platforms.

With these restrictions, e-commerce companies have not been able to offer their in-house brands extensively.

There have been incidents of customers expressing dissatisfaction with products purchased online.

In some cases, bricks and soaps have been delivered instead of mobile phones. This is an inherent flaw of the marketplace model.

Because, market platforms do not have full control over the supply chain and only functions as a facilitator.

There are also complaints of prices being higher than the maximum retail price (MRP).

National Consumer Helpline of Consumer Affairs Ministry is currently the only redressal mechanism. What are the key recommendations?

FDI may be allowed in inventory-based e-commerce companies up to 49% which comes with a condition that the e-tailer sells 100% Made-in-India products.

This will allow e-commerce firms to offer their own brands as long as they are made in India.

It is also suggested that foreign e-commerce websites be brought on a level playing field with their Indian counterparts.

For online marketplaces, restrictions would be imposed on group companies of such platforms.

The marketplaces will not be able to offer deep discounts through their in-house companies listed as sellers.

This is to prevent them from directly or indirectly influencing the prices of goods and services.

Bulk purchases of branded goods “by related party sellers which lead to price distortions in a marketplace” will be prohibited.

To provide a forum for consumers, the task force suggested a Central Consumer Protection Authority (CCPA).

This, besides helping consumers, will act as the nodal agency for intra-government coordination.

It will thus provide a platform for e-commerce operators regarding complaints of fraudulent activities.

The draft suggests a separate wing to be set up in the Enforcement Directorate.

This will handle grievances related to guidelines for foreign investment in ecommerce.

Currently, a large number of payments for online purchases is made through the cash-on-delivery option.

To make online payments safer, the task force has suggested creating a fraud intelligence mechanism.

This would use artificial intelligence-based authentication systems, for early detection of frauds.

Greater regulatory scrutiny has been recommended for mergers and acquisitions that may distort competition.

A relook has been suggested on what constitutes entry barriers and anti-competitive practices.

The Competition Commission of India has been asked to undertake such exercises.

This assumes significance in the light of the recent acquisition of Flipkart by US retail major Walmart.

The policy also suggests a sunset clause for deep discounting wherein a “maximum duration” would be set for “differential pricing strategies”.

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What are the implications?

If implemented, it could impact consumers’ online shopping experience in multiple ways.

They include how discounts are given, the availability of newer products, and the redressal of complaints.

E-commerce platforms would have to mandatorily provide the government’s RuPay payment option.

Suggestion for creation of a single national regulator to oversee the entire industry requires action from multiple ministries and regulators.

Also, there is need for amendments to existing legislation and rulebooks.

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ECONOMY

Restricted Procurement Scheme

Relevancy GS- 3, Economy

Why in news? Raising farm output by providing remunerative prices to agricultural products is a suggestion that is

widely popular. But over the years, between the price and non-price factors, the latter has been seen as more

effective. How can farm distress be addressed?

When output increases well beyond the market demand, market prices decline.

In the absence of effective price support policy, farmers are faced with a loss of income, depending on how much the price decline is.

The “farm distress” in recent years has been partly on account of this situation, as the loss of income is beyond the ability of the small farmers to absorb.

A few schemes have been suggested to address the problem of managing declining output prices when output increases significantly.

The effectiveness of Minimum Support Price (MSP) program in addressing price decline would depend on its effective implementation.

Price Deficiency Compensation Scheme for paying the difference between the market price and MSP, has gained acceptance in some states now.

Another extreme is the open procurement system at MSP that has been in vogue quite effectively in the case of rice and wheat.

This scheme, however, poses the challenge of managing the distribution of the procured grain, which currently causes huge wastages.

What is the current crisis in the market for pulses?

The experience of 2016-17 in the case of pulses points to the huge impact on prices when the output grows significantly and suddenly.

Notably, in 2016-17, output increased by nearly 90% over the previous year, resulting in the fall of prices sharply.

When the output of Kharif crops reached the markets in December, Arhar Dal prices fell by about 20% in 2017 over the previous year.

The price decline was not limited to just one year and it further fell by another 35% in 2017-18 even though output actually dropped in 2017-18.

One contributing factor to the continued decline in prices in 2017-18 may have been the high level of imports during 2016-17, besides the surge in output.

Imports perhaps were planned keeping in view the general deficit in supplies relative to demand, but the unexpected output increase created strain.

What is the suggested way out from future pulse gluts?

The “price deficiency” scheme may compensate the farmers when prices decrease below a certain specified level.

However, market prices may continue to fall as the supply exceeds the “normal demand” and hence this won’t be a sustainable option.

Nearly, all the produce may become eligible for the “deficiency payments” in theory as the prices, in general, would have fallen for all the producers.

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An alternative to this is the limited procurement scheme, under which the government will procure the “excess” until market prices reach MSP level.

This is in contrast to the open procurement scheme for rice/wheat, as it will commence only when there is a significant market glut.

If implemented effectively with proper situational assessment, this will leave the normal production levels to clear the market at a remunerative price.

The timing and speed with which the procurement is implemented are critical and determining the quantity of excess and price levels is also vital.

In any case, the idea is not to absorb all the output but a quantity that would keep the supply-demand balance at the trend level.

What are the challenges?

The effectiveness of “limited procurement scheme” would also depend on how “distribution” of the procured pulse/grain is managed.

Selling the procured produce back in the market in the same season would clearly defeat the purpose as it would deter price recovery.

Therefore, storage facility for managing the excessive produce that is procured is essential as it would help in creating buffer stocks.

Further, year-to-year fluctuations in production would aid the distribution of the stored produce without impacting the market prices significantly.

It is to be noted that the suggested “limited procurement system” will not work if the MSP is fixed at a level to which the market price will never rise.

GST Continues To Suffer From Inadequate Planning!

Relevancy GS Paper-3 Economy

Why in news? Various duty structures have afflicted the better performance of Goods & Service Tax (GST).

What are the issues created by GST?

The glitches caused by the functioning of the e-way bill system and the delays in exporters receiving integrated GST (IGST) refunds are yet to be sorted out.

Strange ruling from the Authority of Advance Ruling (AAR) in Karnataka that the activities performed by a company’s head office such as accounts, HR, IT and other administrative duties will be treated as supply and the GST be imposed on the salary cost of employees working in the head office.

Although the branch office is entitled to claim full input tax credit, the cost of compliance, is surely unnecessary when the head office and branch office form a single tax-paying entity.

A similar issue that flows from the nature of the GST has arisen with respect to ex-factory sales across states.

A company in one state that decides to, say, source its products from a factory in another state could be liable to pay the IGST, which could raise compliance costs for manufacturers across the board.

Inverted duty structures, in which duties on final goods are lower than input rates appears to have afflicted the GST.

How the ease of doing business is affected by the GST?

GST Act treats head office and branch offices as distinct legal entities, but this is principally to fit in with the destination-based nature of the GST.

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Recently, multinational locomotive manufacturers such as GE, Alstom and Bombardier lobbied the government on various issue.

Their contention is that the duty on locomotives is 5 per cent whereas duties on input range between 18 and 28 per cent.

Recently GST Council had allowed refunds in cases where duty structures were inverted in the case of the railways only such refunds are restricted.

This means that the wagon makers will have to bear the cost of the extra input tax, a bizarre situation for a country that is hoping to attract more foreign direct investment in heavy engineering.

What are the concerns associated with GST?

The introduction of the GST, with all its feted reliance on technology, has not really changed the character of the taxation regime in India.

The old system of appeal and subjective interpretation remain embedded in the system.

Many of these issues might have been resolved if this complex and revolutionary system had been tested thoroughly before it had been introduced.

But the advanced implementation has only served to underline the faults of a taxation system that could have marked a paradigm shift for India.

Air India Crisis

Relevancy GS-3, Economy

Why in news?

The Union finance ministry recently has refused to give taxpayers’ money to the state-owned airline, Air India (AI).

What is the status of the debt burden of Air India?

The humongous debt burden of AI is getting in the way of its regular operation, such as the payment of employees and vendors.

Government’s effort to privatize AI was failed as the conditions attached to the sale were too onerous for any bidders.

The Union ministry for civil aviation had apparently asked for the help of finance ministry to resolve the AI crisis.

The era of easy budget constraints for AI must come to a close and it is true that this might make it harder to privatize AI.

For example, no purchaser would have been allowed to merge AI into their own operations to take advantage of any possible synergies which naturally made it very unattractive for other airlines.

What does the government plan in this regard?

The finance ministry has complained that there is still no coherent plan to revive AI.

AI is clear that sinking yet more hundreds of billions of rupees into the airline would not help.

Conditions were also placed on the firing of employees and the government sought to retain a certain amount of control.

Government decided it would not look good to be bailing out an airline in an election year when there are so many calls on the government’s purse, it is nevertheless a decision that should be followed up on.

What is the way ahead?

Getting the entirety of the airline off the state’s books is indeed the first-best solution.

It is to be hoped that the finance ministry’s refusal to disburse additional funds to AI will push the civil aviation ministry and the airline into serious consideration of where it can raise funds internally.

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Air India controls considerable real estate, and the finance ministry has suggested this be monetised, much of this should be sold to draw down debt.

It also should be able to spin off some of its ground operations, which are already controlled by subsidiary companies.

Foreign Assistance for Disaster Relief

Relevancy GS Mains Paper-3 Disaster Management, Economy

What happened recently? India turned down the UAE’s reported offer of Rs 700 Crore as aid for flood relief in Kerala. It has cited the 2004 policy of not accepting aid from foreign governments as the reason, which

needs a relook. What is the 2004 policy about?

Back then it was felt that India could cope with the situation on her own and take help if needed.

The idea was that India had become a large economy.

Hence, accepting small aid moneys from countries was not in keeping with the times.

The policy was also a symbolic signal to end India’s dependence on concessional debt.

Since 1956, India had severe foreign exchange constraints.

But 2003-04 was a different year, with strong macroeconomic fundamentals.

India had already graduated to become a “less indebted country” in the IMF ranking.

It had also registered a surplus in its current account in 2001-02.

Its foreign exchange reserves had also topped $75 billion by 2003.

One of the contexts for the 2004 policy was the India’s superpower dream.

It was felt that India should demonstrate its strength to withstand and counter calamities.

It should exhibit to the world that it could also help its neighbours.

It was thought to strengthen India's case for a permanent seat in UN Security Council.

These were believed to hasten the prospect of superpower status by 2020.

It was felt that assistance would leave scope for interference in internal affairs.

Also, accepting from any one country offers the scope for others as well.

But it would be diplomatically difficult to refuse from some and accept from others. What were the concerns?

There were doubts if the policy would be perceived as a rude gesture in diplomatic circles.

Also, External Affairs Ministry was displeased with it as its explicit concurrence was not sought.

The MEA thus had to deal with countries bilaterally, and manage the effect of an abrupt change in aid receiving policy.

Over the years, the policy has also not made any noteworthy contributions for India to fulfil its ambitions.

What is the 2016 NDMP in this regard?

The 2016 National Disaster Management Plan (NDMP) provides for accepting foreign assistance in the wake of a disaster.

Under this, the Government does not issue any appeal for foreign assistance.

However, if the national government of another country voluntarily offers, it may accept.

The Home Ministry is required to coordinate with the External Affairs Ministry (MEA) in this regard.

As, MEA is primarily responsible for reviewing foreign offers of assistance and channelizing them.

The 2016 NDMP guidelines also provides for multilateral assistance.

Under this, India will accept an offer of assistance from UN agencies.

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But this is only if the government considers it necessary, based on various factors.

If accepted, the Government of India will issue directions.

The respective Ministry/State Government will then have to coordinate with the concerned UN agency.

Any such financial assistance by UN financial institutions involving foreign exchange will require the Department of Economic Affairs' approval.

What is the present controversy?

The 2016 guidelines have mostly been on paper.

So the government has been following the policy on disaster aid decided in 2004.

There is thus a clear mismatch between convention and written document.

The recent aid for Kerala was also not accepted citing this "existing policy". How is the decision justified?

Offers of aid from foreign governments must naturally be scrutinized for national security interests.

Also, state governments forming their own bilateral aid and assistance would be like allowing them to conduct an independent foreign policy.

But India should not be mixing up its 20th century security fears with 21st century realities of technological advancements.

Irrespective of policies, democracies should be flexible enough to respond to emergencies.

The intention and objective should only be the greater good of the victims.

Sticking merely to the precedent or pride may not serve the citizens' cause.

The decision may also have a negative impact on India’s relations with the UAE. What is the way forward?

Notions of self-reliance have to be reassessed in the larger context of a multilateral world.

In the case of bilateral assistance, India needs to examine offers case by case.

E.g. UAE's assistance comes as an obligation to help Kerala in distress, in accordance with the Islamic faith.

As, Keralites have served their country well over the years.

Similar is the case of Qatar, which has offered Rs. 35 crore.

The need now for the central government is to use all assistance, Indian and foreign, to rebuild Kerala.

It should also put an end to the 2004 precedent and bring into implementation the latest guidelines.

India should also hold discussions with the UN and the Red Cross with a view to formulating plans for reconstruction.

Using the latest technology and adopting such assistance would only benefit India.

RBI and The Indian Economy

Relevancy GS Mains Paper-3, Economy

Why in News? RBI has raised the repo rate by 25 bps in order to rein inflation.

What is the issue?

While controlling inflation is important, it is also vital to ensure sufficient funds to aid businesses to capitalise on projected economic uptick in FY2019.

What is RBI’s inflation outlook?

RBI looks confident of the growth prospects and has estimated the FY18-19 growth to be 7.4% (FY 2017-18 level was only 6.6%)

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Notably, it has sighted improved “Foreign Direct Investment” (FDI) flow and pick-up in services and manufacturing growth as reasons for optimism.

Hence, in line with the projection in its June review, RBI in its recent review again revised its 2H FY19 inflation forecast upwards by 10 bps to 4.8%.

RBI’s “Monetary Policy Committee” (MPC) has also raised the repo rate by 25 basis points (bps) for the second time in a row.

This has reiterated RBI’s position as an inflation warrior by sticking to the path of maintaining the 4+2% inflation target.

Clearly, it is watchful of inflationary pressures like firming household expectations, monsoon spread, increase in crop MSP and fiscal risks.

What are the barriers to reap the projected economic potential?

The latest FICCI survey shows that capacity utilisation levels are in the 75-80% range for sectors such as auto, chemicals, electronics, leather and footwear, machine tools, metals, paper products and textiles.

Considering this, the funding pattern calls for change – funds has to now move away from working capital loans and cater to capacity enhancement.

Hence, while increase in the cost of funds (due to 25 bps raise by RBI) is being debated, the real issues will be fund availability for capacity enhancement.

This can be ushered in only through a conscious policy push as the Indian banking sector is in a deep mess.

How is India’s banking sector doing?

Public sector banks (PSBs) that comprise 70% of the total banking system, hamstrung by poor balance-sheets, are yielding space to private players.

The government and the RBI have leaned heavily in favour of the insolvency bankruptcy code (IBC) to resolve the NPA problem.

Also, the RBI has put 11 PSBs in the prompt corrective action (PCA) framework list and reportedly six more are likely to be added to this list.

RBI’s recent “Financial Stability Report” (FSR) estimates that the gross NPA ratio (bad loans as a percentage of total loans) will reach 12.2% by March 2019.

While would be the highest since 2000, a further warning bell is that FSR states that this could worsen further if macro-economic conditions deteriorate.

More significantly, for PSBs the gross NPA ratio may increase from 15.6% in March 2018 to 17.3% by March 2019 - indicating severe stress.

In this context, private banks will have to do the heavy lifting in meeting the credit needs of an economy which is beginning to recover.

What is “Financial Stability Report”?

“Financial Stability Report” (FSR) is released by the RBI.

It reflects the overall assessment of the stability of India’s financial system and its resilience to risks emanating from global and domestic factors.

The Report also discusses issues relating to developments and regulation of the financial sector. What is “Prompt Corrective Action”?

To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak.

The process or mechanism under which such actions are taken is known as Prompt Corrective Action (PCA).

What is the way ahead?

India’s investment cycle is poised for a cyclical upswing from FY19, after years of sub-par performance.

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In this context, it is important to incentivising and nurturing sectors in need of funds before the cost of funds begins to bite.

Notably, this is all the more significant considering the global headwinds, which looks risky due to rising political and trade tensions, and currency wars.

Sinking Air India

Relevancy GS Mains Paper-3, Economy

What is the issue?

The sinking Air India and the government’s attempt to privatize it is not materializing. Resolving it through the new Insolvency and Bankruptcy Code could be a better option.

What is the current status of AI?

The airline is behind on its payments to several of its creditors.

These include both operational creditors, such as aircraft lessors, and financial creditors, such as banks.

Debts have been piling up for at least two months in both cases.

The aircraft lessors have declared that an “event of default” has occurred.

This may mean that they begin proceedings to take back the leased aircraft.

This would leave AI with a huge drawback in its schedule and place it in even more trouble.

On the other hand, the RBI has been quite firm on not covering up bad loans any further.

So if AI misses payments for 3 months, then the banks might be entitled to declare its account a non-performing asset.

What is the way forward?

In the last financial year (2017-18), the government committed to releasing Rs 18 billion to allow the airline to deal with its accumulated losses.

However only Rs 6.5 billion of that amount was released.

AI is assuring its creditors to pay back, but the government may not release any more of the money.

This is because the creditors, concerned with NPA, could possibly move the AI case to the National Company Law Tribunal.

The AI account might be subjected to the process and principles of the Insolvency and Bankruptcy Code (IBC) and if this happens, the privatisation of AI might move forward purely through the application of law.

In this case, the committee of creditors could take the decisions that the government, as primary owner, is unwilling to take.

This would be favourable from the taxpayer’s point of view, as it prevents the impact of the AI loss on taxpayers money by being under the government.

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SCIENCE AND TECHNOLOGY

Alien asteroid 2015 BZ509

Relevancy G.S. Paper 3

Why in news?

Scientists have discovered an asteroid named 2015 BZ509 in Jupiter’s orbit. Alien asteroid 2015 BZ509:

Scientists have recently found an asteroid named 2015 BZ509 (affectionately known as BZ) which seems to have been here for 4.5 billion years.

This makes it the first known interstellar asteroid to have taken up residence orbiting the Sun.

It is not yet known where the object came from.

BZ seems to have reached the Solar System when it was forming, when the planets themselves were not exactly where they are now.

So it is difficult to figure out where it came from.

The Solar System is actually littered with small bodies.

BZ itself was discovered in a wide-sky survey of such bodies in 2015, but it took some time for its unusual behaviour to be understood.

BZ is in a retrograde orbit, moving around the Sun in the opposite direction to the eight planets, and the majority of other objects in the Solar System.

This immediately makes it stick out, as almost everything which formed from the disk of gas and debris around the Sun follows the direction of the star's rotation.

If 2015 BZ509 were a native of our system, it should have had the same original direction as all of the other planets and asteroids, inherited from the cloud of gas and dust that formed them.

While this backwards habit doesn't necessarily mean that a body has been captured into its current orbit, it is certainly a strong hint.

Scientists have concluded that the BZ might have been drawn in from another group of small bodies in the Solar System.

Asteroid immigration from other star systems occurs because the Sun initially formed in a tightly-packed star cluster, where every star had its own system of planets and asteroids.

The close proximity of the stars, aided by the gravitational forces of the planets, help these systems attract, remove and capture asteroids from one another.

BZ's orbital longevity may be a result of its pattern which matches, or is in "resonance" with Jupiter's.

One year in the asteroid's life lasts as long as a year on Jupiter, even though they travel in opposite directions around the Sun.

Scientists are doing more research on the same.

Nipah Virus

Relevancy G.S. Paper 2,3

Why in news?

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Kerala was put on high alert as Nipah Virus (NiV) infection was detected for the first time in the state. Nipah virus:

THE VIRUS: o Nipah virus (NiV) infection is a newly-emerging zoonosis (a disease which can be transmitted

to humans from animals) that causes severe disease in both animals and humans. o The natural host of the virus are fruit bats of the Pteropodidae Family, Pteropus genus.

TRANSMISSION: o The viruses jump the species barrier and infect a secondary animal host. o The transmission takes place through direct contact with infected bats, pigs, or from other

NiV-infected people. o People have been also cautioned that they should not consume fruits that have fallen on to

the ground.

SYMPTOMS: o NiV infection in humans has a range of clinical presentations, from asymptomatic infection

to acute respiratory syndrome and fatal encephalitis. o NiV is also capable of causing disease in pigs and other domestic animals. o Nipah virus primarily causes an encephalitic syndrome with a high mortality rate. o The characteristic MRI abnormalities are multiple, small (less than 5 mm), asymmetric focal

lesions in the subcortical and deep white matter without surrounding edema.

TREATMENT: o There is no vaccine for either humans or animals. o The primary treatment for human cases is intensive supportive care

PRECAUTIONS: o Nipah virus infection can be prevented by avoiding exposure to sick pigs and bats in endemic

areas. o It is advisable to not drink raw date palm sap and not consume fruits that have fallen from

trees.

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SECURITY

AFSPA

Relevancy GS Mains Paper-3 Internal Security

Why in news? Many army personnel filed a petition in the Supreme Court against the alleged dilution of the Armed

Forces (Special Powers) Act (AFSPA). This comes in the midst of inquiry commencing into the multiple alleged extra judicial killings since

2000 on the direction by the SC. What is the issue?

The SC recently asked the CBI to form a Special Investigation Team” (SIT) to probe the 1,582 cases of alleged extra-judicial killings since 2000 in Manipur.

The Jammu & Kashmir Police have also filed an FIR against an army officer for firing at alleged stone-pelters leading to the death of three persons.

In this context, the petitioners had alleged that criminal investigations against Army personal for actions in line with their duty has demoralised the forces.

But many hold the opinion that as there are serious allegations of human rights violations, the decision of service men to approach the court is wrong.

What is wrong with the petition?

The implementation or withdrawal of AFSPA from a particular terrain, or alterations in its provisions is political calls taken by elected governments.

Hence, members of an apolitical institution like the armed forces should not be seen to act like a pressure group, to influence policy.

In this context, the petitioning could even be perceived as a violation of the army act as forming collectives or organizing for political purposes is barred.

The AFSPA has strong provisions that provide immunity for armed personnel involved in counter-insurgency operations.

But transgressions while in the line of duty are open to legal scrutiny by courts and there have been extended debates on this aspect of AFSPA.

Further, several commissions have suggested amendments to AFSPA, and the concerns of the armed forces too had figured in them prominently.

What is the way ahead?

Armed forces are apolitical state institutions, and it should not intrude into the affairs of the other arms of the state with a political agenda.

In this context, the increasing propensity of army personnel to approach the courts for redress of policy reflects a failure of internal mechanisms.

With multiple promotion and pay related issues also making it to courts, the internal structure needs to be bettered by the forces to improve the situation.

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INTERNATIONAL AFFAIRS AND GLOBAL ISSUES

Man Booker Prize 2018

Relevancy G.S. Paper 2

Why in news?

The winner of the man Booker prize has recently been announced for the year 2018. Man Booker Prize:

The Man Booker Prize for Fiction (formerly known as the Booker–McConnell Prize and commonly known simply as the Booker Prize) is a literary prize awarded each year for the best original novel written in the English language and published in the UK.

The winner of the Man Booker Prize is generally assured international renown and success therefore, the prize is of great significance for the book trade.

From its inception, only novels written by Commonwealth, Irish, and South African (and later Zimbabwean) citizens were eligible to receive the prize.

But in 2014 this eligibility was widened to any English-language novel.

A high-profile literary award in British culture, the Booker Prize is greeted with great anticipation and fanfare.

It is also a mark of distinction for authors to be selected for inclusion in the shortlist or even to be nominated for the "longlist".

Man Booker Prize 2018 winner:

Polish novelist Olga Tokarczuk has won the prestigious Man Booker International Prize for fiction this year.

She has won it for her book known as “Flights,” a novel that charts multiple journeys in time, space and human anatomy.

“Flights” beat five other finalists, including Iraqi writer Ahmed Saadawi’s horror story “Frankenstein in Baghdad” and South Korean author Han Kang’s meditative novel “The White Book.”

Tokarczuk’s novel combines tales of modern-day travel with the story of a 17th century anatomist who dissected his own amputated leg and the journey of composer Frederic Chopin’s heart from Paris to Warsaw after his death.

Afrasia Bank Global Wealth Migration Review 2018

Relevancy G.S. Paper 2,3

Why in news? India has been declared the 6th wealthiest country in the world by this report.

AfrAsia Bank Global Wealth Migration Review 2018:

"Total wealth" refers to the private wealth held by all the individuals living in each country.

It includes all their assets (property, cash, equities, business interests) less any liabilities.

This excludes the government funds.

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Larger countries have an advantage due to higher populations.

India is the sixth wealthiest country in the world with a total wealth of $8,230 billion.

The US is the wealthiest country in the world with a total wealth of $62,584 billion.

It is followed by China ($24,803 billion) at the second place and Japan ($19,522 billion) at the third place.

Other countries in the top 10 wealthiest list includes: o the UK $(9,919 billion) o Germany ($9,660 billion) o India ($8,230 billion) o Australia ($6,142 billion) o Canada ($6,393 billion) o France ($6,649 billion) o Italy ($4,276 billion)

Factors that help in wealth creation in India include: o large number of entrepreneurs o good educational system o robust outlook for IT o business process outsourcing o real estate o healthcare o media sector

These factors in future will result in a 200 per cent rise 10 year wealth growth forecast.

Globally, the total private wealth held worldwide amounts to around $215 trillion.

There are around 15.2 million HNWIs in the world, each with net assets of $1 million or more.

There are about 584,000 multi-millionaires in the world, each with net assets of $10 million or more. There are 2,252 billionaires in the world, each with net assets of $1 billion or more.

Dispute Settlement Mechanism in WTO

Relevancy GS Mains Paper-2 International Organizations, Bilateral Relations

Why in news? The World Trade Organisation is in news because of the crisis WTO is in for ensuring a legitimate

dispute settlement mechanism. The changes in the global trade regime and the multilateral institutions necessitate a greater role for

the developing world. Why trade organization?

With the coming of Bretton Woods institutions (World Bank and IMF) came new financial trade order which demanded a trade organisation at the international level.

It became necessary for the regulation of the international monetary system.

It was also needed to establish multilateral rules for the settlement of trade disputes.

Adherence to the rules was expected to serve as an important domestic incentive for governments.

It would allow them to resist protectionist demands and provide for greater legal certainty.

The World Trade Organisation (WTO) was created primarily to address these demands. What has been the role of US with respect to WTO?

The US's push for the creation of WTO was mainly to pursue its own commercial interests.

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The U.S. has never truly embraced the idea of a multilateral system in which its leadership could be contested.

Evidently the US is isolating itself from NAFTA, TPP, NATO and UNESCO in the recent times.

In the trade negotiations too, the U.S. put forward excessive demands that countries are unprepared to meet.

So the current crisis with the WTO dispute settlement system largely follows this unequal power formula.

Why the crisis with WTO?

The nature of the trade disputes is now increasingly getting hyper technical.

Despite this, the WTO currently faces a trade dispute settlement crisis.

The U.S. has systematically blocked the appointment of new Appellate Body members (judges).

This has impeded the work of the WTO appeal mechanism.

It is under great stress with only four working members out of seven normally serving office.

If no appointment is made, the mechanism would be destroyed by December 2019.

It would be left with only one remaining member to tackle a massive number of disputes.

But the Appellate Body requires a core of three members to decide a dispute. What are the other causes of concern?

It is to be noted that the WTO dispute settlement mechanism is not a world trade court. So logically, the process remains political and diplomatic.

WTO members are thus concerned over the politicisation of the Appellate Body appointment and reappointment process.

There is also a concern with the quasi-attribution of permanent Appellate Body seats to the U.S. and the European Union (EU).

Besides, there is concern over the possibility of China finding its way to have a permanent seat.

Cases - Some Appellate Body members continue to hear cases which have been assigned to them during their tenure.

The U.S. has persistently attacked this practice.

However, the blame lies on the U.S. itself, for delay in filling up of vacancies and reappointment of members.

This is indicative of the fact that the US is deliberately pushing the WTO legal mechanism for deterioration.

What is China's prospect?

Despite limitations ensured by US and EU, China has largely benefited from the rules-based WTO system.

It might well be the new WTO leader in the coming future.

China's growing assertiveness, in fact, may be the reason for the U.S.’s hard measures.

Its emerging power and the impact of its commercial domination on other economies are evident.

But how far will China's legitimacy be, among other trading members, remains largely uncertain. What is the way forward?

The world has changed and multilateral institutions now have to embed these changes.

The current WTO crisis could be a battle to retain control over a Western-centric organisation.

It is high time for emerging economies and the developing world to have a greater say.

They should establish their role in shaping the much needed multilateralism and its institutions.

Brexit Negotiations and the challenges

Relevancy GS Mains Paper- 2, International Relations

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Why in news? British PM Theresa May has successfully got her Brexit plans approved by the parliament after much

effort. She is currently lobbying hard with other European leaders to push through her proposals despite

several challenges. What about the border disputes within Ireland?

The Republic of Ireland is an independent country and also a EU member, while the Northern Ireland is an autonomous territory within the UK.

Because of the sheer volume of trade and the complicated cultural ties between the two Irelands, disrupting the open borders is socially and economically risky.

As Brexit is being pushed forward for stronger border controls between UK and the EU, the Irish border question has become very complicated.

“U.K., EU and Republic of Ireland” are principally against hard borders between “Republic of Ireland” and “Northern Ireland”.

In fact, the soft borders between the two territories is vital for the sustenance of the “1998 - Good Friday Agreement”, which end decades of bloodshed.

But a soft or open border between the two Irelands would mean some border control has to be placed between “Northern Ireland and rest of UK”.

But the “Northern Ireland” leaders have asserted that they are not ready to accept any solution that would treat them separately from the rest of UK.

What is the role that EU is playing in this context?

EU proposed for “Northern Ireland” to remain in a common regulatory area with similar status as “Republic of Ireland” in the EU.

But this was rejected outright by the UK, which came up with a counter proposal for a temporary customs arrangement to avoid hard borders.

Under this clause (called Irish Backstop), the entire UK would remain within the EU customs union for a while, even after exiting EU’s single Market.

While the EU seemed unenthusiastic initially, its chief negotiator Mr. Michel Barnier recently suggested a positive note in regard.

What are the limitations?

UK seeks to retain its proposed temporary arrangement with the UK until a permanent solution is found to the Irish question.

But such an arrangement would make it impossible for Britain to establish “Free Trade Agreements” with other countries till its expiry.

Further, EU has also largely been grumpy due to UK’s intention of wanting to retain free trade in goods alone while seeking to curb free flow of services, people and capital.

Notably, the UK proposal for the EU & UK to collect tariff on each other’s behalf wherever needed has not got a positive response from EU.

These multiple constrains might prove really difficult to address.

Strategic Trade Authorisation-1 list

Relevancy GS Mains Paper-2, International Relations, Bilateral Agreements

Why in news?

The US has eased controls on high-technology dual-use exports to India after a year of negotiation. The US has granted India exemption under the Strategic Trade Authorisation-1 list.

How did India-US defense ties evolve over the years?

In 2008 India signed the civil nuclear deal with the United States.

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A key objective was to gain access to high technology.

Notably, India had been denied access, especially from the 1970s through the 90s.

Towards the end of Obama’s presidentship, the US recognised India as a “Major Defence Partner”.

It committed itself to sharing technology to the same level as its closest allies and partners.

It also agreed to collaboration for defence co-production and co-development. What caused the delay?

The US either has military alliances such as the NATO or bilateral defence treaties with other countries.

Hence, the status of Major Defence Partner is unique to India.

So Indian and American negotiators had to draw up the framework of what the status would entail.

Given this, the export of defence and dual-use technology by the US is mostly a “political determination”.

This is driven by two factors namely US national security and the recipient’s regional stability.

Dual-use exports refer to an item or technology that can be put to both military and civilian use. What happened recently?

India was in STA-2 list (Strategic Trade Authorisation-2), along with 7 other countries.

These include Albania, Hong Kong, Israel, Malta, Singapore, South Africa, and Taiwan.

India has now been elevated to the STA-1 list of countries.

What is Strategic Trade Authorisation?

In 2009, Obama announced a comprehensive review of the US export control system.

As part of this came the concept of Strategic Trade Authorisation (STA).

This is a move towards a licence-free or license exemption regime.

Accordingly, two lists were created namely STA-1 and STA-2.

STA-1 and STA-2 established a hierarchy among those the US was willing to certify as “good countries”.

STA-1 - STA-1 countries are America’s most trusted allies.

The STA-1 list has 36 countries including NATO allies and bilateral treaty allies like Japan, South Korea, and Australia.

The US considers the non-proliferation controls of these countries the best in the world. These are also among those that are part of the four multilateral export control regimes:

1. the Nuclear Suppliers’ Group (NSG) 2. Missile Technology Control Regime (MTCR) 3. the Australia Group

4. the Wassenaar Arrangement

STA-1 countries have licence-free access to almost 90% of dual-use technology.

They are also eligible to import items for reasons of national security, chemical or biological weapons, etc.

This is irrespective of whether the technology or item impacts regional stability or American national security.

STA-2 - Countries in the STA-2 list enjoy some form of licensing exemption.

But they cannot access dual-use items/technology that may impact regional stability, or contribute to nuclear non-proliferation, etc.

A vast majority of countries remain outside both STA-1 and STA-2.

They cannot access high technology from the US without specific licences.

They have to apply for a licence for every item on the Commerce Control List (of dual-use items). What is the importance all the bilateral agreements?

China, Pakistan, and Russia are on neither list.

Albania is a NATO member, but is still in STA, and Israel, a major US ally, is not in STA-1.

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Given these, India joining an elite group of allies of the US is a significant move.

India is now part of STA-1, despite not being member of all four multilateral export control regimes.

This is thus another testament to India's non-proliferation credentials.

India can now access 90% of defence technology and equipment for dual-use supplied by US government and its defence industry.

It is expected to lead to greater high-technology trade and commerce.

For Indian high-tech industry, this could open up doors for both sales and manufacturing in India.

Third countries can also set up manufacturing units, requiring import of dual-use equipment from the US, without the license process.

Indo- South Korea CEPA

Relevancy GS Mains Paper-2, 3, Economy, International Relations

Why in news?

South Korea is speeding up negotiations on expanding the existing Comprehensive Economic Partnership Agreement (CEPA) with India.

What is Indo- South Korea CEPA?

The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between India and South Korea.

It is equivalent to a free trade agreement, and will provide better access for the Indian service industry in South Korea.

Services include Information technology, engineering, finance, and the legal field.

The agreement has ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country.

Both countries avoided issues over agriculture, fisheries, and mining and choose not to decrease tariffs in those areas.

How is the existing trade relation between India and South Korea?

Bilateral CEPA was implemented in 2010, South Korea’s exports to India jumped from $10.47 billion in 2010-11 to $16.36 billion in 2017-18.

India’s exports to South Korea, however, remained sluggish and increased insignificantly from $3.72 billion in 2010-11 to $4.46 billion in 2017-18.

As a result, the trade deficit between South Korea and India increased to a staggering $12 billion in 2017-18.

Recently India speedily cut down duties on 11 items and South Korea on 17 items, as a diplomatic necessity.

What are the concerns with existing CEPA?

Various reports show that Indian businesses have not been able to take advantage of the provisions of the CEPA.

Korean companies however have increased their exports taking advantage of the lower duties.

Moreover, much of the Indian exports to South Korea are still taking place outside the CEPA at higher duties.

That is mostly because Indian exporters find it too onerous to meet obligations such as rules of origin, Low awareness is another reason for low utilisation.

Recently South Korea claimed that it wants increased market access in a number of items including sensitive ones like automobiles and textile that got excluded in the original CEPA.

What needs to be done?

New Delhi should pause and take a clear look at where it is heading instead of rushing ahead.

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With lack of luster growth in India’s exports to South Korea much of it is happening outside the ambit of the CEPA.

Expanding CEPA with South Korea is not a good option unless it enhances Indian exports.

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ETHICS

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HISTORY AND CULTURE