DAILY CURRENT AFFAIRS (AUGUST 02, 2022)

THE INDIAN POLITY AND GOVERNANCE

1.7 NEW DISTRICTS IN WEST BENGAL — HOW AND WHY ARE DISTRICTS CREATED OR ABOLISHED IN INDIA?

THE CONTEXT: The West Bengal cabinet has approved the creation of seven new districts in the state. It will take the number of districts in West Bengal to 30 from the existing 23.
THE EXPLANATION:
• The Chief Minister told a press conference that a new Sundarban district will be carved out of South 24-Parganas district; two new districts will be created out of North 24-Parganas district — Ichhamati in Bongaon subdivision and a yet unnamed district in Basirhat; Ranaghat, a city and municipality in Nadia district, will become the fourth new district; a new district of Bishnupur will be carved out of the existing Bankura district; and two new districts of Baharampur and Jangipur will be created out of Murshidabad district.

Why have these districts been created?
• States keep creating new districts from time to time. The idea everywhere is, generally, that smaller units would make governance easier and would benefit the people by bringing the government and the administration closer to them, and making them more accessible. Sometimes, the decision to create a new district is driven by local demands.
• As per Census 2011 figures, almost 4 million people lived in each of West Bengal’s 23 districts on average — among the highest in the country.

Who decides on creating or scrapping districts, or changing their boundaries?
• This power lies with the state governments, who can pass a law in the Assembly or simply issue an order and notify it in the gazette. The Centre does not have a say in the matter.
• The central government does play a role, however, when a change of name of a district or railway station is contemplated. The request of the state government in this regard is sent to several central government departments before a no-objection certificate is issued.

Have Indian states been creating a lot of new districts?
• The number of districts around the country has been going up steadily over the years. The 2001 Census recorded 593 districts, which went up to 640 in 2011. India currently has more than 775 districts.
• Uttar Pradesh has the most districts (75) in the country, followed by Madhya Pradesh (52). Goa, by contrast, has only 2 districts. However, the number of districts in a state is not always a function of the area of the state, or of its population.
• West Bengal, for example, has 42 Lok Sabha MPs but only 30 districts even after the addition of the 7 new districts, and Andhra Pradesh, even after the recent doubling of the number of districts to 26, has only one more district than the number of Lok Sabha seats. Tamil Nadu, which has 39 MPs in Lok Sabha — after only Uttar Pradesh, Maharashtra, Bihar, and West Bengal — has one fewer district.
• In general, the largest districts in India by area cover sparsely populated areas — for example, Kachchh in Gujarat, and Jaisalmer, Bikaner, Barmer, and Jodhpur in Rajasthan.

THE SOCIAL JUSTICE AND SOCIAL ISSUES

2.EXPLAINED: WHAT THE LAW SAYS ON PROTECTING CHILDREN AGAINST CORPORAL PUNISHMENT

THE CONTEXT: Recently, three private school teachers in Pune have been booked under the Juvenile Justice Act over allegedly thrashing three Class 10 students, and threatening to grade them poorly in internal assessments. A look at the legal provisions that bar corporal punishment, and who has the responsibility to protect children against abuse.
THE EXPLANATION:
What is corporal punishment?
By definition, corporal punishment means punishment that is physical in nature. While there is no statutory definition of ‘corporal punishment’ targeting children in the Indian law, the Right of Children to Free and Compulsory Education (RTE) Act, 2009 prohibits ‘physical punishment’ and ‘mental harassment’ under Section 17(1) and makes it a punishable offence under Section 17(2).
• According to the Guidelines for Eliminating Corporal Punishment in Schools issued by the National Commission for Protection of Child Rights (NCPCR), physical punishment is understood as any action that causes pain, hurt/injury and discomfort to a child, however light.
• Examples include hitting, kicking, scratching, pinching, biting, pulling the hair, boxing ears, smacking, slapping, spanking, hitting with any implement (cane, stick, shoe, chalk, dusters, belt, whip), giving electric shock and so on.
• It includes making children assume an uncomfortable position (standing on bench, standing against the wall in a chair-like position, standing with school bag on head, holding ears through legs, kneeling, forced ingestion of anything, detention in the classroom, library, toilet or any closed space in the school.

What are provisions under the law against such punishment?
Section 17 of the Right to Education Act, 2009, imposes an absolute bar on corporal punishment. It prohibits physical punishment and mental harassment to children and prescribes disciplinary action to be taken against the guilty person in accordance with the service rules applicable to such person.
Section 75 of the Juvenile Justice Act prescribes punishment for cruelty to children.
o Whenever a child is assaulted, abused, exposed or neglected in a manner to cause physical or mental suffering by any person employed by or managing an organisation, which is entrusted with the care and protection of the child, the punishment would be rigorous imprisonment upto five years and fine up to Rs 5 lakh.
o If the child is physically incapacitated or develops a mental illness or is rendered mentally unfit to perform regular tasks or has risk to life or limb, then imprisonment may extend upto ten years.
Section 23 of the JJ Act, 2000 states: “Whoever, having the actual charge of, or control over, a juvenile or the child, assaults, abandons, exposes or wilfully neglects the juvenile or causes or procures him to be assaulted, abandoned, exposed or neglected in a manner likely to cause such juvenile or the child unnecessary mental or physical suffering shall be punishable with imprisonment for a term which may extend to six months, or fine, or with both.”
o While Section 23 is likely to be applied most often to personnel in childcare institutions regulated by the JJ Act, it arguably applies to cruelty by anyone in a position of authority over a child, which would include parents, guardians, teachers and employers.
• Meanwhile, the RTE Act does not preclude the application of other legislation that relates to the violations of the rights of the child, for example, booking the offenses under the IPC and the SC and ST Prevention of Atrocities Act of 1989.

What do NCPCR guidelines say about eliminating corporal punishment?
• The NCPCR guidelines for eliminating corporal punishment against children require every school to develop a mechanism and frame clear cut protocols to address grievances of students.
• Drop boxes are to be placed where the aggrieved person may drop his complaint and anonymity is to be maintained to protect privacy.
• Every school has to constitute a ‘Corporal Punishment Monitoring Cell’ consisting of two teachers, two parents, one doctor, one lawyer (nominated by DLSA), counsellor, an independent child rights activist of that area and two senior students from that school. This CPMC shall look into complaints of corporal punishments.

3.EXPLAINED: 30K KG OF DRUGS DESTROYED BY NCB – WHAT RULES GOVERN DISPOSAL OF SEIZED NARCOTICS?

THE CONTEXT: The Narcotics Control Bureau (NCB) on July 30 2022 destroyed 30,000 kg of seized drugs at four locations – Kolkata, Chennai, Delhi and Guwahati — in the virtual presence of Union Home Minister. The narcotic substances were destroyed under a drug disposal campaign that began June 1 as part of ‘Azadi ka Amrit Mahotsav’.
THE EXPLANATION:
What is the law that allows the destruction of seized drugs?
Section 52-A of the Narcotics Drugs and Psychotropic Substances (NDPS) Act, 1985 allows probe agencies to destroy seized substances after collecting required samples. Officials concerned must make a detailed inventory of the substance to be destroyed.
• “A five-member committee comprising the area SSP, director/superintendent or the representative of the area NCB, a local magistrate and two others linked to law enforcement and legal fraternity is constituted. The substance is then destroyed in an incinerator or burnt completely leaving behind not any trace of the substance,” according to the MHA official.

What is the exact procedure that is followed?
• The agency first obtains permission from a local court to dispose of the seized narcotic substances. These substances are then taken to the designated place of destruction under a strict vigil. The presiding officer tallies the inventory made at the storeroom with that material brought to the spot. The entire process is videographed, photographed.
• Then one by one, all the packets/gunny bags of the substance/s are put in the incinerator. As per rules, committee members cannot leave the place until the seized drugs have been completely destroyed.

Which agency is authorised to carry out such an exercise?
• Every law enforcement agency competent to seize drugs is authorised to destroy them after taking prior permission of the area magistrate. These include state police forces, the CBI and the NCB among others.
• For instance, On June 20 2022, Chandigarh Police, along with NCB sleuths, had jointly destroyed 102.260 kg heroin, 0.495 gm charas, 0.250 kg poppy-husks, 16.6 kg cannabis, 48 injections of Buprenorphine and Pheniramine Maleate, 904 tablets of tramadol in Mohali.

What is the need to destroy seized drugs?
• The hazardous nature of narcotic drugs or psychotropic substances, their vulnerability to theft, substitution, constraints of proper storage space are among the reasons that make agencies destroy them.
• “Also, there have been instances when seized narcotics were pilfered from the storeroom. To prevent such instances, authorities try to destroy seized drugs immediately after collecting the required samples out of the seized substances.
VALUE ADDITION:
India and Drug Abuse
• According to a report by the United Nation Office on Drugs and Crime (UNODC), India is one of the major hubs of illicit drug trade ranging from age-old cannabis to newer prescription drugs like tramadol, and designer drugs like methamphetamine.
• The money from the drug trade is used to finance terrorism, human trafficking, illegal businesses etc.
• India lies in the middle of two major illicit opium production regions in the world, the Golden Crescent in the west and the Golden Triangle in the east which makes it a viable hub of the illicit drug trade.
Golden Triangle: It includes the regions of Myanmar, Laos, and Thailand and is Southeast Asia’s main opium-producing region and one of the oldest narcotics supply routes to Europe and North America.
Golden Crescent: It includes Afghanistan, Iran, and Pakistan and is a principal global site for opium production and distribution.

Legal Provisions in India and World
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act)
• It outlaws the recreational use of cannabis.
• Under the Act, the production, manufacture, possession, sale, purchase, transport, and use of cannabis is a punishable offence.
• The NDPS Act, however, does not apply to the leaves and seeds of cannabis plants.
• In case the CBD is extracted from the leaves of the cannabis, then technically it is not illegal.
• CBD oil manufactured under a licence issued by the Drugs and Cosmetics Act, 1940 can be legally used.

The Narcotics Control Bureau (NCB)
• It is vested with the power to charge individuals in cases related to the illegal use and supply of narcotics.
• India is a signatory to various international drug-related UN conventions and the responsibility of implementation of the provision of these international conventions also lies with NCB.

The UN Commission on Narcotic Drugs (CND)
• It is the central policy-making body for the UN drug control system, which meets on an annual basis
• The Vienna-based CND was founded in 1946.
• It is to decide on the scope of control of substances by placing them in the schedules of global drug control conventions.

THE INTERNATIONAL RELATIONS

4.WHO WERE THE RAZAKARS, ACCUSED OF HORRIFIC CRIMES DURING THE 1971 BANGLADESH LIBERATION WAR?

THE CONTEXT: Six members of ‘Razakar Bahini’, a locally recruited paramilitary force that collaborated with the Pakistan army during the 1971 Bangladesh Liberation War, were sentenced to death for ‘crimes against humanity’ by Bangladesh’s International Crimes Tribunal on July 28 recently.
THE EXPLANATION:
• In 2010, almost 40 years after its violent struggle for independence from Pakistan, Bangladesh established its International Crimes Tribunal in order to administer justice to those accused of committing war crimes against its people.

Who were the Razakars?
• The Razakars were an auxiliary force of the Pakistan army during the 1971 Bangladesh War. Composed of mostly pro-Pakistani Bengalis and Biharis from Bangladesh (formerly East Pakistan), the approximate 50,000 Razakars assisted the army in raids against the local population and were accused of committing horrific atrocities.
• Razakar literally means ‘volunteer’ or ‘helper’ in Persian and Urdu, but has come to mean ‘collaborator’ and is associated with betrayal in Bangladesh. According to the anthropologist, it is used as an abuse.
• Razakars mostly consisted of Urdu-speaking Bihari Muslims and religious parties that opposed the separation of East and West Pakistan, like Jamaat-e-Islami, Al Badr and Al Shams. Ethnic Bihars who had moved to Bangladesh after the partition in 1947 were in particular denounced as foreigners and collaborators by other locals.

Fate after the Liberation War
After Bangladesh achieved independence in December 1971, the newly formed government very quickly banned organisations that collaborated with Pakistani state forces, such as the Jamaat-e-Islami, and many of its influential leaders escaped to Pakistan.
Road to justice
In March 2010, the government headed by Prime Minister Sheikh Hasina established Bangladesh’s three-member International Crimes Tribunal to investigate and administer justice to those suspected of being involved in torture and killings during the country’s struggle for independence. The ruling Awami League had pledged to prosecute war criminals of 1971 and had won a landslide victory in the 2008 general election.
VALUE ADDITION:
About 1971 the Bangladesh Liberation War (OPERATION JACKPOT)
• The Indo-Pakistani War of 1971 was the first war between the countries that did not involve fighting over the Kashmir region.
• At this time, the Dominion of Pakistan was divided into West Pakistan and East Pakistan (initially East Bengal). These two regions were separated by the larger nation of India.
• Fought under the leadership of then-prime minister Indira Gandhi and chief of army staff (COAS), General Sam Manekshaw, the war ended in less than two weeks with a decisive victory for India, and resulted in the creation of Bangladesh, which was then known as East Pakistan.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5.THE TECHNOLOGY POWERING HYBRID ELECTRIC VEHICLES

THE CONTEXT: In recent months, automakers Maruti Suzuki, Toyota and Honda have launched hybrid electric vehicles in India, offering car buyers more choices in the nascent electric vehicle market.
THE EXPLANATION:
These new hybrid electric vehicles from different automakers, are relying on hybrid technology and its advantages over conventional internal combustion engine (ICE)-powered vehicles to change car buyers’ minds.
What is a hybrid vehicle?
Commonly called hybrid electric vehicles (HEV), a hybrid car is simply one that relies on two different power sources for motion. The two different power sources are typically petrol and electricity and diesel and electricity.
There are three main types of hybrid vehicle; full hybrids, mild hybrids and plug-in hybrids.
A full hybrid (FHEV) can run on just the combustion engine (i.e. diesel/petrol), the electric engine (i.e. power from batteries), or a combination. The Honda City HEV is an example of this. A full hybrid is not plugged in to recharge; the battery is recharged by running the combustion engine.
A mild hybrid has an electric motor and combustion engine which always work together. An example of this is the Maruti Suzuki Vitara Brezza (Soon to be made available). Mild hybrids cannot run in just electric or just combustion engine mode; the engines/motors always work in parallel.
Plug-in hybrids usually have greater electric-only ranges than full hybrids. Plug-In hybrids essentially serve as a half-way point between full hybrid vehicles and fully electric vehicles. One of the requirements of plug-in-hybrids is bigger battery pack.

What is regenerative braking and how does it work?
• Regenerative braking is a mechanism found on most hybrid and full-electric vehicles. It captures the kinetic energy from braking and converts it into the electrical power that charges the vehicle’s high voltage battery.
• Regenerative braking also slows the car down, which assists the use of traditional brakes.
• In a conventional braking system, a car slows down due to friction between the brake pads and rotors. But this system is highly inefficient when it comes to conserving energy. Nearly all of the kinetic energy propelling your car forward is lost as heat when you apply the brakes. That’s a lot of wasted energy!
• Regenerative braking solves this problem by recapturing upwards of 70% of the kinetic energy that would otherwise be lost during braking. The amount of energy recovered depends on your car model and driving behaviour.

How does regenerative braking provide electricity?
• Regenerative braking turns kinetic energy into electricity by reversing the process that drives the car forward.
• In electric cars, the drivetrain is powered by a battery pack that powers a motor (or motors), creating torque–rotational force–on the wheels.
• With regenerative braking, the energy from your spinning wheels is used to reverse the direction of electricity – from the electric motor(s) to the battery. All you have to do is remove your foot from the accelerator or, in some cases, press the brake pedal to activate regenerative braking. The electric motor not only acts as an electric generator, but it also helps slow your car down because energy is consumed by the wheels as they rotate the shaft in the electric motor.

Advantages of regenerative braking
• Brake pads & rotors may last longer
• Extended range possibilities for electric vehicles
• Better fuel efficiency for hybrids

Disadvantages of a regenerative braking system
• May be less effective at lower speeds
• Brake pedal may feel different
• Potentially less stopping power

Government Measures
• Government has approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019. Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for xEVs in the country.
• This phase aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers. However, depending upon off-take of different category of xEVs, these numbers may vary as the provision has been made for inter as well as intra segment wise fungibility.

6.NEW E-WASTE RULES THREATEN JOBS, COLLECTION NETWORK

THE CONTEXT: A proposed framework by the Centre for regulating e-waste in India has upset a key link of India’s electronic waste collection system and threatens the livelihood of thousands of people.
THE EXPLANATION:
• Electronic waste, or electronic goods that are past their productive life and old parts, is largely handled by India’s vast informal sector.
• Spent goods are dismantled and viable working parts refurbished, with the rest making their way into chemical dismantling units. Many of these units are run out of unregulated sweatshops that employ child labour and hazardous extraction techniques. This electronic detritus contaminates soil and aggravates plastic pollution.
• To address all of this, the Environment Ministry brought the E-waste (Management) Rules, 2016, which introduced a system of Extended Producer Responsibility (EPR) compelling makers of electronic goods to ensure a proportion of the goods they sold every year was recycled.
• They are expected to maintain records annually demonstrating this. Most companies however did not maintain an in-house unit in charge of recycling and this gave rise to a network of government-registered companies, called producer responsibility organisations (PRO) which acted as an intermediary between manufacturers of electronic goods and formal recycling units and were technologically equipped to recycle end-of-life electronic goods safely and efficiently.

Certified proof
• The PROs typically bid for contracts from companies and arrange for specified quantities of goods to be recycled and provide companies certified proof of recycling that they then maintain as part of their records. Several PROs work on consumer awareness and enable a supply chain for recycled goods.
• As of March, 2022 the Central Pollution Control Board (CPCB) has registered 74 PROs and 468 authorised dismantlers, which have a collective recycling capacity of about 1.3 million tonnes.
• The Ministry estimated 7.7 lakh tonnes of e-waste to have been generated in 2018-19 and around one million tonnes in 2019-20 of which only a fifth (about 22% in both years) has been confirmed to be “dismantled and recycled”.

‘Improve accountability’
• According to sources, new rules would improve accountability because it would rely on an electronic management system that would track the material that went in for recycling with the output claimed by a recycler when they claimed GST (Goods and Services Tax) input credit.
• “Currently, the entire system is not remunerative for recyclers, which actually do the job of recycling. This current system incentivises them to invest in a dependable supply chain that will collect and recycle waste”.
• “The current system managed by PRO isn’t always reliable as there have been several instances of double-counting (where the same articles recycled once for one company are credited into the account for multiple companies). Also, the CPCB was still testing such a system though it wouldn’t automatically solve the problem of routing all electronic waste from informal channels to formal channels.

VALUE ADDITION:
India specific:
• There are 312 authorised recyclers of e-waste in India, with the capacity for treating approximately 800 kilotonnes annually.
• About 90 per cent of the country’s e-waste is recycled in the informal sector.
• India’s first e-waste clinic for segregating, processing and disposal of waste from household and commercial units has been set-up in Bhopal, Madhya Pradesh.
• According to the Central Pollution Control Board (CPCB), India generated more than 10 lakh tonnes of e-waste in 2019-20, an increase from 7 lakh tonnes in 2017-18. Against this, the e-waste dismantling capacity has not been increased from 7.82 lakh tonnes since 2017-18.

Concerns:
Toxicity: E-waste consists of toxic elements such as Lead, Mercury, Cadmium, Chromium, Polybrominated biphenyls and Polybrominated diphenyl.
Effects on Humans: Some of the major health effects include serious illnesses such as lung cancer, respiratory problems, bronchitis, brain damages, etc. due to inhalation of toxic fumes, exposure to heavy metals and alike.
Effects on Environment: E-waste is an environmental hazard causing groundwater pollution, acidification of soil and contamination of groundwater and air pollution due to the burning of plastic and other remnants.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY

Q. Consider the following statements with respect to the regenerative braking system:
1. Regenerative braking turns kinetic energy into electricity by reversing the process that drives the car forward.
2. In regenerative braking system the electric motor functioning as an electric generator.

Which among the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

ANSWER FOR THE PRACTICE QUESTION

ANSWER: C
EXPLANATION:
• Regenerative braking is an energy recovery mechanism that slows down a moving vehicle or object by converting its kinetic energy into a form that can be either used immediately or stored until needed. In this mechanism, the electric traction motor uses the vehicle’s momentum to recover energy that would otherwise be lost to the brake discs as heat.
• Regenerative braking turns kinetic energy into electricity by reversing the process that drives the car forward.
• In electric cars, the drivetrain is powered by a battery pack that powers a motor (or motors), creating torque–rotational force–on the wheels.
• With regenerative braking, the energy from your spinning wheels is used to reverse the direction of electricity – from the electric motor(s) to the battery. All you have to do is remove your foot from the accelerator or, in some cases, press the brake pedal to activate regenerative braking. The electric motor not only acts as an electric generator, but it also helps slow your car down because energy is consumed by the wheels as they rotate the shaft in the electric motor.




Ethics Through Current Development (02-08-2022)

  1. May all creatures everywhere be happy READ MORE
  2. The legacy of JRD continues READ MORE



Today’s Important Articles for Geography (02-08-2022)

  1. What will Supreme Court judgement on Aravalli mean for forest conservation? READ MORE
  2. Monsoon 2022: Driest July on record for east and North East India READ MORE
  3. More harm than good: New study scans global treaties on environment, rights READ MORE



Today’s Important Articles for Sociology (02-08-2022)

  1. Tackling inequality takes social reform READ MORE
  2. Evolving digital education in rural India: The role of society, government and supply chain READ MORE




Today’s Important Articles for Pub Ad (02-08-2022)

  1. Reengineering India’s consciousness: India’s democracy has been successfully hacked and progressive forces need hard course-correction in any fightback READ MORE
  2. D Sivanandhan writes: The powerful and ubiquitous ED READ MORE
  3. Why the suspension of MPs may need to be reconsidered READ MORE
  4. Rights and duties: Fix institutional gaps for credible justice delivery READ MORE
  5. Modi govt takes IAS promotions to next level—Additional, Joint Secretary now come closer READ MORE
  6. What the Court Can Do to Really Implement the Fundamental Right to Shelter READ MORE



WSDP Bulletin (02-08-2022)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. West Bengal to get seven new districts; total now 30 READ MORE
  2. Explained: 3 reasons why GST collections continue to surge READ MORE
  3. Manufacturing growth hits 8-month high in July: S&P PMI READ MORE
  4. Comment | Har Ghar Tiranga — taking the National Flag into homes READ MORE
  5. Explained | AlphaFold: A tour de force in science READ MORE
  6. Kharif 2022: Area under paddy dips by 13% as July ends READ MORE
  7. Explained | Earth’s record of shortest rotation and its impact READ MORE

Main Exam

GS Paper- 1

  1. Tackling inequality takes social reform READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

  1. Reengineering India’s consciousness: India’s democracy has been successfully hacked and progressive forces need hard course-correction in any fightback READ MORE
  2. D Sivanandhan writes: The powerful and ubiquitous ED READ MORE
  3. Why the suspension of MPs may need to be reconsidered READ MORE
  4. Rights and duties: Fix institutional gaps for credible justice delivery READ MORE
  5. Modi govt takes IAS promotions to next level—Additional, Joint Secretary now come closer READ MORE
  6. What the Court Can Do to Really Implement the Fundamental Right to Shelter READ MORE

SOCIAL ISSUES

  1. Evolving digital education in rural India: The role of society, government and supply chain READ MORE

INTERNATIONAL ISSUES

  1. US-China rivalry not the same as US-Soviet. What India needs to watch out READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

  1. Government’s own ‘gig workers’: Outsourcing jobs to contractors is far more inefficient than fixed term contracts READ MORE
  2. Using a rupee route to get around a dominating dollar READ MORE
  3. RBI does not need to really hit the panic button now READ MORE
  4. How shifting policies propelled our economy READ MORE

ENVIRONMENT AND ECOLOGY

  1. What will Supreme Court judgement on Aravalli mean for forest conservation? READ MORE
  2. Monsoon 2022: Driest July on record for east and North East India READ MORE
  3. More harm than good: New study scans global treaties on environment, rights READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

  1. May all creatures everywhere be happy READ MORE
  2. The legacy of JRD continues READ MORE

Questions for the MAIN exam

  1. ‘India’s ‘wheat waiver’ stand in WTO will dilute its core agenda of pushing for a permanent solution to public stockholding for food security’. Critically examine.
  2. How far do you agree with this view that Indian policymaking in international affairs are facing moral indecisiveness, diplomatic reticence and ideological confusion and this is making a shift in foreign policy from non-alignment to multi-alignment? Analyse your view.
  3. ‘Monetary policy cannot bring food inflation under control thus, curbing inflation requires streamlining value chains’. Justify.

QUOTATIONS AND CAPTIONS

  • A good half of the art of living is resilience.
  • India’s democracy has been successfully hacked and progressive forces need hard course-correction in any fightback.
  • As we seek to regulate the “gig economy”, it may be time for the government to take some concrete measures for its own “gig workers”.
  • India could take advantage of geopolitical developments to promote trade and gain better status for the rupee.
  • If the Government is serious in taking forward its stated position of creating higher education access to certain sections, it should dispassionately study the advantages and the disadvantages.
  • It is quite clear that the central agencies are now going to be the big brothers of investigations, while state and city police forces function in their shadows with limited powers and jurisdictions.
  • By recognising the right to shelter as a conditional social right rather than a systemic one, the Delhi high court narrowed its jurisdiction in the matter, limiting its ability to provide substantial benefits to slum dwellers.
  • In addition to direct Chinese military pressure in both the Himalayas and in the seas, New Delhi will have to worry about a possible Chinese hegemony over Asia.
  • If India is the mother of democracy, it becomes an obligation to ensure that conditions are created for the smooth functioning of Parliament.

50 WORD TALK

  • The Delhi excise policy mess reflects poorly on the AAP government. All businesses need a stable and predictable policy environment. Dramatic U-turns are unfair to businessmen who make investments and workers whose livelihoods depend on them. Pity Delhiites who have to go back to buying their booze from government dumps.

Things to Remember:

  • For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
  • Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
  • For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
  • For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
  • Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.



Day-257 | Daily MCQs | UPSC Prelims | CURRENT DEVELOPMENTS

[WpProQuiz 301]




TOPIC : ANALYZING THE OUTCOME OF 12th WTO MINISTERIAL CONFERENCE

THE CONTEXT: The WTO’s 12th Ministerial Conference was held in Geneva from 12-17 June 2022. After days of protracted negotiations, the WTO agreed to a series of deals. This article analyses the outcomes of the ministerial conference in detail.

KEY TAKEAWAYS FROM THE MEETING

WTO REFORMS

  •  Members reaffirmed the WTO’s founding principles and committed to an inclusive and open process to reform all of the organization’s operations, from deliberation to negotiation to monitoring.
  • Notably, they pledged to make efforts to ensure that by 2024, all members would have access to a well-functioning dispute resolution system.

GLOBAL FOOD SECURITY

  • Members decided that any export restrictions should not apply to food purchased for humanitarian purposes by the UN’s World Food Programme (WFP).
  • WTO released a statement on the value of trade in ensuring global food security and pledging to refrain from food export bans due to global food shortages and rising prices brought on by the conflict between Ukraine and Russia.
  • Also, to ensure domestic food security needs, countries would be permitted to impose restrictions on food supplies.

E-COMMERCE TRANSACTIONS

  • In 1998, when the internet was still fairly new, WTO members initially agreed to refrain from levying customs duties on electronic transmissions. Since then, the moratorium has been repeatedly extended.
  • However, all participants agreed to extend the long-standing ban on customs duties for transmissions of e-commerce until the following Ministerial Conference or until March 31, 2024, whichever comes first.

COVID-19 VACCINE PRODUCTION

  • In order to facilitate easier domestic production of Covid-19 vaccines, WTO members agreed to temporarily waive intellectual property patents on those products without the consent of the patent holder for a period of five years.

CURTAILING HARMFUL FISHING SUBSIDIES

  • To better protect global fish stocks, the WTO approved a multilateral agreement that would stop “harmful” subsidies on illegal, unreported, and unregulated fishing for the next four years.
  •  Member states have been negotiating the prohibition of subsidies that encourage overfishing since 2001.
  • The current agreement, which establishes new trading rules, is the second multilateral agreement in WTO’s history.

ANALYZING THE INDIAN POSITION

FISH SUBSIDY

  • It was able to ensure that developing economies receive exemptions from fishing subsidies within their exclusive economic zone.
  • Within their exclusive economic zones of the sea, developing nations like India are given a two-year exemption.
  • Additionally, it limits fishing in overfished stocks while providing poorer nations with a two-year reprieve.
  • India’s proposal for a 25 year transition period for developing economies was not agreed upon. But it was able to ensure that subsidies were retained for small scale artisanal fishing.

IPR WAIVER

  • The current deal is a scaled-back version of the initial proposal made by South Africa and India in 2020. They had sought more extensive waivers of intellectual property for vaccines, treatments, and tests.
  • The waiver is limited to vaccines in the final agreement.
  • For developing nations like India, the exclusion of therapeutics and diagnostics has been a huge letdown.

ISSUE OF AGRICULTURE

  • Little progress was also made on important agricultural issues that India and other developing nations have fiercely debated.
  • It has been seeking to allow government-to-government sales of food grains kept in public stockholding programmes such as for the public distribution system.
  • On the grounds that the sale of grains with subsidies could skew global food prices, the proposal was rejected.

PUBLIC STOCK HOLDING ISSUE

  • The requirement for a long-term solution on public stockholding for food security is another ongoing issue where a decision has been repeatedly put off over the years.
  • A permanent solution has been pushed back until the next ministerial conference, which will put it off for another two years.

ELECTRONIC TRANSACTIONS

  • India has requested that the World Trade Organization (WTO) reconsider the extension of the moratorium on customs duties on Electronic Transactions (ET), which include digitally traded services.
  • Broadly, ETs consist of online deliveries such as music, e-books, films, software and video games. They differ from other cross-border e-commerce since they are ordered online but not delivered physically. 
  • India argued that developing countries faced the brunt of the financial consequences of such a moratorium.
  • India said that from 2017-2020, developing countries lost a potential tariff revenue of around $50 billion on imports from only 49 digital products.
  • However, finally, all members decided to extend the moratorium on customs duties.

THE GENEVA PACKAGE

WTO wrapped up the Ministerial Conference’s twelfth outing (MC12), securing agreements on relaxing patent regulations to achieve global vaccine equity, ensuring food security, according to subsidies to the fisheries sector and continuing moratoriums relevant to e-commerce, among others. Together they constitute the “Geneva Package.”

 A CRITICAL COMMENT ON THE WTO MINISTERIAL OUTCOME

The WTO Ministerial Meeting was held after a gap of 2 years due to the Covid- 19 pandemic. Being consensus-based international organisation decision-making on the key issue has been very difficult in WTO. But it is the consensus-based decision-making that keeps apart the WTO from the IMF, World Bank or other international institutions. It was to the credit of the members that they could reach an agreement on the fisheries subsidy. Due to the opposition of the European Union and other rich countries, other important areas like drugs, diagnostics etc. were excluded from IPR Waiver. Also, the issues of agriculture especially the public stock holding program has been pushed further to be discussed in the next conference. Environmentalists also criticized the text of the fishing subsidy agreement calling it highly watered down and not meeting the demand for sustainable fisheries.

As far as  India is concerned the outcome of the conference has many positives while having some negative aspects. For instance, there has been no outcome on the public stockholding program and India’s proposal for exclusion of government to government purchase as also been rejected. On the positive side, India was able to balance its international commitments with respect to the World Food Programme and the domestic need for food security and the protection of the livelihood opportunity of small-scale fishermen.

THE WAY FORWARD:

  • The WTO needs to focus on resolving the existing issues, especially in the context of the Doha Development Agenda before pushing new issues into the discussion table.
  • Although the member countries agreed on the need for reforms in WTO, the content and nature of reforms have not been spelt out. It is necessary to develop a broad-based agenda on reforms and then carry out extensive deliberations to avoid a piecemeal approach.
  • The G 33 needs to work in a coordinated manner and position itself as a pressure group to safeguard and promote the developing country’s interests in a transparent manner.
  • The Dispute Resolution Body of WTO is the backbone of the rule-based world order which was kept dysfunctional thanks to the USA and others. WTO members need to take steps to make this body functional again.
  • The IPR waiver related to Covid-19 drugs and treatment needs to fast-tracked as it is agreed by members that the issue will be reviewed after six months. A comprehensive waiver is necessary for developing the south from a public health perspective.
  • India needs to actively strive to safeguard its core interests while balancing its credentials of a responsible rule-abiding nation.

 THE CONCLUSION: On the whole, when multilateralism is on the downslope WTO outcomes from the 12th ministerial conference opens up new possibilities and opportunities for rule-based world trade order. India has been partially successful in areas such as fisheries subsidies and vaccine patent waivers, but not so much in others such as food subsidies and e-commerce taxation. It is clear that at future ministerial meetings, India must stand firm on issues that are critical to the country’s long-term interests, particularly farmer livelihood issues.

Questions:

  1. Critically analyze the outcomes of the WTO 12th Ministerial Conference 2022.
  2. The outcomes of the 12th WTO Ministerial Conference have been a mixed bag for India. Comment
  3. “The Geneva Package scores more in form, less in substance”. Examine

ADDITIONAL INFORMATION

CLARIFYING CONCEPTS: THE WTO TERMINOLOGIES

WTO AND THE MINISTERIAL CONFERENCE

  • The only international body that deals with international trade regulations is the World Trade Organization. The 164 members of the WTO, which was established in 1995, govern it, and in accordance with its rules, all decisions are made by consensus and any member has veto power.
  • Its objective is to advance free trade, which is accomplished through trade pacts that the member states negotiate and ratify. The WTO offers a forum for nations to discuss trade regulations and resolve business disagreements.
  • The Ministerial Conference is the WTO’s top decision-making body and usually meets every two years.
  • All members of the WTO are involved in the MC and they can take decisions on all matters covered under any multilateral trade agreements.

WHAT IS AoA?

  • To reform the agriculture trade and to improve the predictability and security of importing and exporting countries, the World Trade Organization came up with the agriculture agreement. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade and entered into force with the establishment of the WTO on January 1, 1995. The three provisions/pillars that the agriculture agreement focuses on are –
  • Market access — the use of trade restrictions, such as tariffs on imports
  • Domestic support — the use of subsidies and other support programmes that directly stimulate production and distort trade
  • Export competition — the use of export subsidies and other government support programmes that subsidize exports.

DOMESTIC SUPPORT

  • There are basically two categories of domestic support — support with no, or minimal, distortive effect on trade on the one hand (often referred to as “Green Box” measures) and trade-distorting support on the other hand (often referred to as “Amber Box” measures).
  • For example, government-provided agricultural research or training is considered to be of the former type, while government buying-in at a guaranteed price (“market price support”) falls into the latter category.
  • Under the Agreement on Agriculture, all domestic support in favour of agricultural producers is subject to rules. The Green Box also provides for the use of direct payments to producers which are not linked to production decisions, i.e. although the farmer receives a payment from the government, this payment does not influence the type or volume of agricultural production (“decoupling”).
  • The “Blue Box” exemption category covers any support measure that would normally be in the “Amber Box”, but which is placed in the “Blue Box” if the support also requires farmers to limit their production.
  • All domestic support measures which do not correspond to the exceptional arrangements known as the “Green” and “Blue” boxes, are considered to distort production and trade and therefore fall into the “Amber Box” category.

DE MINIMIS LEVEL

  • Minimal amounts of domestic support are allowed even though they distort trade — up to 5% of the value of production for developed countries, 10% for developing.
  • All domestic support measures in favour of agricultural producers that do not fit into any of the above exempt categories are subject to reduction commitments. This domestic support category captures policies, such as market price support measures, direct production subsidies or input subsidies.
  •  However, under the de minimis provisions of the agreement, there is no requirement to reduce such trade-distorting domestic support in any year in which the aggregate value of the product-specific support does not exceed 5 per cent of the total value of production of the agricultural product in question.
  • In addition, non-product-specific support which is less than 5 per cent of the value of total agricultural production is also exempt from reduction. The 5 per cent threshold applies to developed countries whereas in the case of developing countries the de minimis ceiling is 10 per cent.

AGGREGATE MEASUREMENT OF SUPPORT

  • The AMS represents trade-distorting domestic support and is referred to as the “amber box”. As per the WTO norms, the AMS can be given up to 10 % of a country’s agricultural GDP in the case of developing countries.
  •  On the other hand, the limit is 5% for a developed economy. This limit is called de minimis level of support. It means that the AMS and the De Minimis Level are similar. Both relate to the Amber box.

SCM

  • The Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) of the World Trade Organization (WTO) provides rules for the use of government subsidies and for the application of remedies to address subsidized trade that has harmful commercial effects.
  • These remedies can be pursued through the WTO’s dispute settlement procedures, or through a countervailing duty (CVD) investigation which can be undertaken unilaterally by any WTO member government.
  • Countervailing measures may be used against subsidies when imports of subsidized goods harm a competing domestic industry. They are used to offset the effect of the subsidy by, for example, imposing a countervailing duty (limited to the amount of the subsidy) on the import of subsidized goods or securing quid pro quo commitments from the subsidizing country (that it will abolish or restrict the subsidy, or that exporters will raise prices).
  • Export subsidies which are in full conformity with the Agriculture Agreement are not prohibited by the SCM Agreement, although they remain countervailable. Domestic supports which are in full conformity with the Agriculture Agreement are not actionable multilaterally, although they also may be subject to countervailing duties.

DISPUTE SETTLEMENT BODY(DSB)

  • Settling disputes is the responsibility of the Dispute Settlement Body (the General Council in another guise), which consists of all WTO members. The Dispute Settlement Body has the sole authority to establish “panels” of experts to consider the case and to accept or reject the panels’ findings or the results of an appeal. It monitors the implementation of the rulings and recommendations and has the power to authorize retaliation when a country does not comply with a ruling.
  • Under the Subsidies Agreement, if a WTO member government believes that a non-permissible subsidy is being granted or maintained by another member government, it can request consultations with that government under the WTO’s dispute settlement procedures..
  • If no mutually agreeable solution is reached in initial consultations, the matter can be referred to the WTO’s Dispute Settlement Body (DSB), which consists of representatives of all WTO members.
  •  The DSB establishes a panel, which reports its findings to the parties to the dispute within a time frame. If the panel finds that the measure in question is a prohibited subsidy, the subsidizing government must withdraw it without delay.
  • But when the appeal is filed in the AB and not yet decided, the practice is that the member country does not withdraw the subsidy immediately. The recommendations of the Panel can only be rejected by the DSB on consensus among the members.

APPELLATE BODY

  • The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members. The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel, and Appellate Body Reports are adopted by the Dispute Settlement Body (DSB) unless all members decide not to do so. The Appellate Body has its seat in Geneva, Switzerland.
  • Currently, the Appellate Body is unable to review appeals given its ongoing vacancies. The term of the last sitting Appellate Body member expired on 30 November 2020.

NAIROBI PACKAGE

  • The Nairobi Ministerial conference was held in 2015 where WTO members decided to eliminate the export subsidies on agriculture and to make new rules on export measures that have a covalent effect. To implement this decision, the developed countries will remove all the subsidies on export immediately and developing countries will have a little longer period to eliminate the subsidies except for a few agricultural products.
  • The decision was taken to give effect to the sustainable development goal of zero hunger and also help the farmers of the poor countries who face intense competition against the rich countries and the artificially boosted exports with the help of subsidies.
  • Members also collectively agreed to engage in finding a permanent solution for developing countries to use the public stockholding programs for food security purposes. Negotiation on a special safeguard mechanism, which allows the developing countries to raise tariffs temporarily on agricultural products in cases of import surges or price falls, was also agreed upon by the ministers.

BALI PACKAGE 2013

  • Members agreed to refrain from challenging the breach of domestic support commitments that resulted from developing countries’ public stockholding programs for food security if certain conditions were met by them. They also decided to negotiate towards a permanent solution for public stockholding for security purposes.
  • A more transparent tariff rate quota administration was called for whereby the governments were not allowed to create trade barriers by how the quotas among importers are distributed.
  • The list of general services includes more spending on land use, Land Reforms water management, and other poverty reduction programs which come under the green box(the Green box is domestic support which is allowed without any limit as it does not distort the trade) were to be expanded.
  • A declaration on the reduction of all forms of export subsidies and enhancement of transparency and monitoring was made.
  • The Bali package also provides for a peace clause that protects the food procurement programs of developing countries from the action of other WTO members if the developing country branches the subsidy ceiling as given.
  •  In the financial year, 2018-19 India became the first WTO member country to invoke this clause. India stated that its rice production was $43.67 billion and it provided subsidies of $ 5 billion to the farmers, which is more than the de minimis level of 10%. To safeguard its domestic support policy the Indian government invoked the peace clause.