[WpProQuiz 342]

THE CONTEXT: Recently, RBI released the report titled ‘State Finances: A Risk Analysis,’ in which the public finances of the 10 most heavily indebted states of India were analysed. This article intends to analyse the key findings of the report and further discuss the implications of unregulated state finances.

STATE BORROWINGS: THE CONSTITUTIONAL PROVISIONS

• Chapter II of Part XII of the Constitution of India deals with borrowing by the Central Government and State Governments.
• It comprises two provisions:
  • Article 292 covers borrowing by the Central Government, and Article 293, covers borrowing by State Governments.
  • Article 293 (3) requires State Governments that are indebted to the Central Government to seek the consent of the Central Government before raising further borrowings.

KEY HIGHLIGHTS OF THE REPORT

• According to the report, ten states have a significantly high debt burden. These include Punjab, Rajasthan, Kerala, West Bengal, Bihar, Andhra Pradesh, Jharkhand, Madhya Pradesh, Uttar Pradesh and Haryana. These ten states account for around half of the total expenditure by all State governments in India.
• According to the report, Punjab is anticipated to stay in the worst situation because of continuing worsening in its fiscal situation and a predicted debt-to-GSDP ratio that would reach 45% in 2026–2027. By 2026–2027, it is anticipated that Rajasthan, Kerala, and West Bengal will have debt-to-GSDP ratios higher than 35%. To stabilize their debt levels, these states will need to take major remedial action.
• The benchmarks for fiscal deficit and debt for the ten states established by the 15th Finance Commission were exceeded by Andhra Pradesh, Bihar, Rajasthan, and Punjab.
• According to the RBI analysis, Rajasthan, Kerala, and West Bengal are expected to exceed the 15th Finance Commission targets for debt and fiscal deficit in 2022–2023 (BE).

DEBT-TO-GSDP RATIO

The measure used to compare a state’s public debt to its gross state domestic product is called the debt-to-GSDP ratio (GSDP). The debt-to-GSDP ratio accurately predicts a state’s capacity to repay its debts by contrasting what it owes with what it generates.

REASONS FOR EXCEEDING BORROWING LIMITS

IMPACTS OF THE PANDEMIC

• The pandemic dried up the revenue streams of all states due to the protracted lockdown and other containment measures, while expenditure went up due to the subsidies that had to be provided to the poor and the vulnerable to survive.
• As a result, almost all states ended up beaching the FRBM limit, with Bihar’s GFD: GSDP ratio reaching as much as 11.3 per cent, and those of Punjab, Rajasthan and Uttar Pradesh reaching 4.6, 5.2 and 4.3 per cent, respectively. This led to higher borrowing by states and a swelling of their debt ratios (debt as a percentage of GSDP) much above the safe limits.

ATTENUATING TAX BUOYANCY

• The own tax revenue of some of these states like Madhya Pradesh, Punjab and Kerala has been declining over time, making them fiscally more vulnerable.
• The Goods and Services tax implementation has been one of the prime causes for this mismatch of funds. For example, the revenue might fall sharply if the GST compensation is stopped from July 2022, primarily as a significant part of guaranteed revenue of states like Punjab was met using compensation (37% in 2018-19, 47% in 2019-20, and 56% in 2020-21).

OVERBURDENED DISCOMS

• The power sector accounts for much of the financial burden of state governments in India, both in terms of subsidies and contingent liabilities.
• Illustratively, many state governments provide subsidies, artificially depressing the cost of electricity for the farm sector and a section of the household sector.
• Despite various financial restructuring measures 17, the performance of the DISCOMs has remained weak, with their losses surpassing the pre-UDAY level of 0.4 percent of GDP.

POLITICS OF ‘FREEBIES’

• Political parties are outdoing each other promising free electricity and water, laptops, cycles etc.
• The freebies put a significant strain on the fiscal position of State governments and can’t be easily taken back by succeeding governments.
• Freebies for Andhra Pradesh and Punjab exceeded two per cent of the GSDP, while for Jharkhand, Madhya Pradesh and West Bengal, it was between one and two per cent of GSDP.

LEGAL LOOPHOLES

• The current FRBM provisions mandate that the Governments disclose their contingent liabilities, but that disclosure is restricted to liabilities for which they have extended an explicit guarantee.
• In reality, the State governments resort to extra-budgetary borrowings to finance their populist measures. This debt is concealed to circumvent the FRBM targets. Further, there is no comprehensive information in the public domain to assess the size of this off-budget debt.

THE BORROWING SPREE: LOOMING CONCERNS

MENACE OF ‘ESCROW ACCOUNTS

• The report points out that, unable and unwilling to control expenditure, these states have been borrowing from banks against the collateral of future revenues by creating escrow accounts which is clearly unconstitutional, and by also pledging government assets.
• An escrow account is one that is kept outside government accounts and managed by the bank till the liability is cleared, and into which future revenues will go directly, instead of going into the consolidated fund of the states as mandated by the constitution.
• At least five states have escrowed their future revenues in this manner to raise loans.

BY PASSING CONSTITUTIONAL PROVISIONS

• Between 2019-20 and 2021-22, Andhra Pradesh raised Rs 23,899 crore, UP Rs 17,750 crore, Punjab Rs 2,879 crore, MP Rs 2,698 crore, and Himachal Rs 90 crore.
• By doing so, they were trying to bypass article 293 of the Constitution, which requires the states to take permission from the Centre to raise loans from the market if they are indebted to the Centre, which they are.

AGGRAVATING BANKING SECTOR STRESS

• Most of these loans have been given by the public sector banks, including the SBI.This could have serious implications for the already significant NPA crisis.
• RBI has now issued a directive to them to stop this practice forthwith and report compliance within three months.

REPLICATING THE SRI LANKAN CRISIS

• Taking a cue from what is happening in Sri Lanka as a result of its unsustainable debt and the precarious finances of states, the RBI report has cautioned that the tendency towards handing out cash subsidies, in normal times, provision of free utility services, the revival of the old pension scheme by some states and extension of implicit and explicit guarantees by various state governments in India is a perfect recipe for an economic disaster.

THE BORROWING SPREE: NEED FOR CAREFUL CONTEMPLATION

Considering all possible causes and concerns of unregulated borrowing by states in India, one can opine that while some expenses are inevitable, some can be addressed with more prudence and probity. For instance, one can certainly be in favour of expanding, for example, the MGNREGA type of spending and subsidy in the form of food ration schemes. These go a long way in increasing the productive capacity of the population. So, they’re not just freebies. However, what should be regulated is announcing freebies merely in the name of vote bank politics. For instance, when it comes to simply giving away loan waivers, one cannot go in favour of these because they have undesired consequences such as destroying the whole credit culture.

THE WAY FORWARD

• RBI has proposed a “triple E framework” to assess expenditure quality, which has constituents of expenditure adequacy, effectiveness and efficiency:
  • Expenditure adequacy is terms of focusing on the government’s primary role;
  • Effectiveness is about assessing performance;
  • Efficiency involves an assessment of the output-input ratio.
• Other recommendations are given by RBI:
  • Fiscal discipline: The state governments must restrict their revenue expenses by cutting down expenditure on non-merit goods in the near term. In the medium term, these states need to put efforts toward stabilizing debt levels.
  • Power sector reforms: Further, large-scale reforms in the power distribution sector would enable the DISCOMs to reduce losses and make them financially sustainable and operationally efficient.
  • Focus on capital creation: In the long term, increasing the share of capital outlays in the total expenditure will help create long-term assets, generate revenue and boost operational efficiency.
  • Risk testing analysis: State governments need to conduct fiscal risk analyses, and stress test their debt profiles regularly to be able to put in place provisioning to manage fiscal risks efficiently
• Legal measures: The FRBM Acts need to be amended. Its provisions should be expanded to cover all liabilities of the Government, whether budget borrowing or off-budget borrowing, regardless of any guarantee.

THE CONCLUSION: Given that the Constitution of India provides clear provisions regarding the borrowing by the Central Government and State Governments, both must diligently abide by the constitutional values and limits. State borrowings must be more transparent and prudent. Also, there must be a behavioural change within political parties to participate in elections on their working capabilities rather than hampering state finances in the name of vote bank.

QUESTIONS TO PONDER

• “Taking a cue from what is happening in Sri Lanka as a result of its unsustainable debt and the precarious finances of states, the given status of significant indebtedness of India’s federal units act like swords of Damocles”. Analyse critically in the light of the recent RBI report on State Finances.
• Discuss the various causes for exceeding off-budget borrowings by state governments in India. Do you think unregulated off-budget borrowings will have economic implications? Justify your views.

THE GEOGRAPHY: CLIMATOLOGY

1. IDMC-ADB REPORT: SOUTHWEST MONSOON LASTING LONGER, DISPLACING MILLIONS IN SOUTH ASIA

THE CONTEXT: The recently released joint report of the Internal Displacement Monitoring Centre (IDMC) and the Asian Development Bank (ADB) raised concerns regarding long southwest monsoon causing large-scale displacement of masses in South Asia.
THE EXPLANATION:
• The report found that southwest monsoon is lasting longer than its season and overlapping with the northeast monsoon, causing more severe downpour, flooding and storms in South Asia.
• While the southwest monsoon reached the peninsular India on time, it had stayed beyond seasonal boundary of September.
• In 2021, it had lasted until October, overlapping with the northeast monsoon
• This report assessed the forced movement within a country boundary and displacement due to natural disasters during the period of 2010-21.
• It found that disasters displaced about 61.4 million people in south Asia during this period. of this, 58.6 million were displaced because of weather-related disasters.
• Floods and storms caused about 90 per cent of the total displacement.
• Floods caused the displacement of 37.4 million and storm, including major tropical cyclones, caused 21 million internal displacements.
• El Nino Southern Oscillation variation has played a major role in the increased instances of flooding and storms.
• Climate change is also causing prolonged and unpredictable monsoon seasons.
• In the overall Asia-Pacific region, about 225 million individuals were displaced during the 2010-2021 period.
• This means that nearly 19 million people were displaced because of disaster each year.
• This is more than 75 per cent of the total global figure on displacement.
• 95 per cent of all disaster displacements in Asia Pacific are caused by monsoon rains, floods and storms.
• The disaster displacement risks are mainly worsened by rapid urbanization, socioeconomic vulnerability and population growth in hazard-prone areas.
About IDMC
Internal Displacement Monitoring Centre (IDMC) is an international non-governmental organization based in Geneva, Switzerland. It was established in 1998 by the Norwegian Refugee Council – a humanitarian NGO that works towards protecting rights of people who are displaced.

THE INTERNATIONAL RELATIONS

2. 77th SESSION OF THE UNITED NATIONS GENERAL ASSEMBLY

THE CONTEXT: The 77th session of the United Nations General Assembly (UNGA77) opened on September 13 and will include a high-level debate organized from September 20 to 26 this year.
THE EXPLANATION:
• The theme of the UNGA 77 is “A watershed moment: transformative solutions to interlocking challenges”.
• The theme recognizes the shared roots of global crisis like COVID-19, climate change and conflict and highlights the importance of building global sustainability and resilience.
• The event is being organized at the UN Headquarters in New York.
• Discussions will be held among the world leaders on crisis in Ukraine, climate change, food security, access to education and gender equality.
• All 193 UN members will be represented at this event.
• Brazil will be the first UN member state to speak at the annual general debate. It has remained the first speaker for nearly 7 decades since the 10th UNGA in 1955.
• The US, which will host the event, will be the second member state to speak.
• After the first two speeches, the speaking order is set based on the factors like level of representation, the rank of the representatives, preferences and geographical balance.
About UNGA
The United Nations General Assembly (UNGA) is the United Nations’ main policy-making and representative organ. It was set up in 1945. It meets every year between September and December and again between January and August. Each of the 193 UN member states has an equal vote at the General Assembly, where important decisions of the United Nations take place, like appointment of the UN Secretary General, approval of the UN Budget and electing non-permanent members to the United Nations Security Council (UNSC). It also adopts resolutions to make recommendations. However, these resolutions are not enforceable.

3. INDIA’S PRESIDENCY OF AIBD EXTENDED FOR ONE YEAR

THE CONTEXT: The Asia-pacific Institute of Broadcasting Development (AIBD) has unanimously extended India’s presidency for one more year.
THE EXPLANATION:
• The member countries of the AIBD have decided to extend India’s presidency at the two-day General Conference of the Institute that was held in New Delhi.
• The General Conference of the AIBD was inaugurated by the Union Minister of Information and Broadcasting, Youth Affairs and Sports.
• It was organized from September 19 to 20 this year.
• The conference focused on theme “Building a Stronger Future of Broadcasting in post pandemic era”.
• During the event, all participating countries and member broadcasters have committed to work together for creating sustainable broadcasting environment, promoting latest technology know-how, quality content creation and various cooperative activities.
• A five-year plan for cooperative activities and exchanges programmes were finalized during the conference.
About AIBD
• The Asia-Pacific Institute for Broadcasting Development (AIBD) was set up in 1977 with the support from the United Nations Educational, Scientific and Cultural Organization (UNESCO). It is a regional intergovernmental organization that brings together countries of the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) to collaborate in the field of electronic media development.
• Its objective is to achieve a vibrant and cohesive electronic media environment in the Asia Pacific region through policy formulation and resource development. It currently has 26 countries that are full members. These countries are represented by 43 organizations and 52 affiliate members.
VALUE ADDITION:
UN-ESCAP
The UN-ESCAP is one of the five regional commissions of the UN Economic and Social Council. It was established in 1947 to boost economic relationship between countries in Asia and the Far East as well as other regions across the globe. It currently has 53 member states and 9 associate members, mostly from Asia and Pacific. It also includes countries such as France, the Netherlands, the United Kingdom and the United States.

THE ECONOMIC DEVELOPMENTS

4. RBI ASKS LARGE UCBS TO SET UP BOARD-APPROVED POLICY, COMPLIANCE FUNCTION

THE CONTEXT: The RBI has directed urban cooperative banks (UCBs) belonging to tier 3 and tier 4 categories to create a Board-approved policy and compliance function.
THE EXPLANATION:
• The central bank has asked the urban cooperative banks with more than Rs.10,000 crore deposits (tier 4 category) to create a board-approved compliance policy and a compliance function, including the appointment of a Chief Compliance Officer (CCO), by April 1, 2023.
• Tier 3 UCBs i.e., those having more than Rs.1,000 crore and up to Rs.10,000 crore deposits are given the deadline of October 1,2023.
• The board approved Compliance Policy should give clear outline on the implementation of compliance philosophy, expectations on compliance culture, structure and role of the Compliance Function, the role of the CCO and the processes for the identification, assessment, monitoring, management and reporting on the compliance risk.
• The framework requires the Senior Management of these UCBs to undertake Compliance Risk Assessment every year.
• It also mandates the setting up of the Compliance Function, which shall ensure strict observance of all statutory and regulatory requirements for the UCBs, including standards of conduct, management of conflict of interest, fair treatment of customers and providing suitable customer service.
• While the organizational structure of the Compliance Function can be chosen by the UCBs, it should be independent and well-resourced. Its operations must be regularly reviewed by an independent entity.
Who is CCO?
The Chief Compliance Officer (CCO) would head the Compliance Department. The tenure of the CCO should last for at least 3 years. He/she will directly report to the MD and CEO and/or Board or Board Committee. The CCO will have the authority to communicate with any staff member and access all records or files required to undertake the entrusted responsibilities with regards to compliance risks.

THE SCIENCE AND TECHNOLOGY

5. INSIGHT LANDER DETECTS SPACE ROCKS HITTING MARS

THE CONTEXT: NASA’s InSight lander has detected seismic and acoustic waves caused by the impact of four meteoroids and found the location of the craters left by these space rocks.
THE EXPLANATION:
• For the first time, scientists were able to calculate the locations of craters left by meteoroids on the Martian surface based on seismic and acoustic waves.
• The researchers confirmed the calculations made by InSight Lander using the NASA’s Mars Reconnaissance Orbiter.
• The recent seismic measurements provide a new tool for the better investigation of the Mars and other planets where seismometer can be landed.
• One of the space rocks detected by the InSight Lander hit the Martian surface in 2020 and the rest landed in 2021. They have left craters of up to 7.2 meters wide.
• They landed between 85 km and 290 km from the InSight’s location.
• Mars is close to the solar system’s asteroid belt, which makes it highly vulnerable to impacts by space rocks.
• Its atmosphere is just 1 percent as thick as Earth’s. Hence, meteoroids pass through it without disintegrating unlike when they pass through the Earth’s atmosphere.
• However, this is the first time that InSight captured the sound of the space rock hitting the Red Planet.
• According to researchers, the past impacts may have been undetected because of the noise from wind or by seasonal changes in the atmosphere.
• It is possible that more such seismic and acoustic waves may be hidden within the lander’s nearly four years of data.
About InSight Mission
The Interior Exploration using Seismic Investigations, Geodesy and Heat Transport (InSight) mission is a robotic lander that aims to study the deep interior of the Red Planet. This three-legged instrument landed on the Martian surface in 2018 on a vast and relatively plain surface north of the Martian equator called Elysium Planitia.

6. NASA’S PERSEVERANCE FINDS ORGANIC MATTER ON MARS

THE CONTEXT: The Perseverance Rover has collected samples having high concentration of organic matter from the Martian surface.
THE EXPLANATION:
• The Perseverance Rover has collected several organic rock samples from an ancient river delta on Mars.
• These samples are currently stored for collection by future Mars missions that would return them back to the Earth.
• These rock samples have large concentration of organic matter, the highest concentration since the start of the mission.
• With the latest collection, the rover has now collected a total of 12 samples.
• One of the rocks the Perseverance collected was nicknamed as Wildcat Ridge. This rock was likely formed when mud and sand settled in a saltwater lake as it evaporated billions of years ago.
• An instrument aboard the rover called SHERLOC (Scanning Habitable Environments with Raman & Luminescence for Organics & Chemicals) found that these samples contain a class of organic molecules that correlate with those of sulfate minerals.
• Sulfate minerals found in layers of sedimentary rock can provide insights into the watery environment on which the rock samples were discovered.
• The instrument’s analysis revealed that the organic materials may possibly be aromatics or stable molecules of carbon and hydrogen, which are connected to sulfates.
• This suggests that when the lake was evaporating, both sulfates and organic molecules deposited, preserved and concentrated in the region.
About Perseverance Rover
Perseverance Rover was launched as part of the NASA’s Mars Exploration Program. Its objective is to explore the Martian surface and detect the signs of past and present life on the planet. Its landing site is Jezero Crater.

VALUE ADDITION:
Jezero Crater
Jezero Crater spans across 45 km. it is a fan-shaped geological feature that is suspected to have hosted an ancient lake. It is believed that this site hosts evidences of Martian history in sedimentary rock, which formed when particles fused together in the previously water-filled environment.

[WpProQuiz 337]

The Context: The world, after a throbbing pandemic, is under the grasp of yet another zoonotic disaster called MonkeyPox. A recent study revealed that the rate of genetic changes in the monkeypox virus was higher than expected. In this article, we will analyse the ills of monkeypox and possible solutions from the UPSC perspective.

ABOUT THE MONKEYPOX VIRUS

MONKEYPOX

• Monkeypox is a viral zoonosis (a virus transmitted to humans from animals) with symptoms similar to those seen in the past in smallpox patients, although it is clinically less severe.
• With the eradication of smallpox in 1980 and the subsequent cessation of smallpox vaccination, monkeypox has emerged as the most important orthopoxvirus for public health.
• Monkeypox primarily occurs in central and west Africa, often in proximity to tropical rainforests, and has been increasingly appearing in urban areas. Animal hosts include a range of rodents and non-human primates.
• Ever since it was first reported in humans in 1970, monkeypox virus infections have been largely restricted to countries in Central and Eastern Africa until recently.

RECURRENCE OF MONKEYPOX

• Early in 2022, multiple cases were identified in Spain and several cases were reported from countries where the disease is not endemic, including regions in Europe and North America, and in patients with no history of travel to endemic regions.
• Following a rapid rise in cases, the World Health Organization (WHO), on July 23, 2022, declared the 2022 monkeypox outbreak as a Public Health Emergency of International Concern (PHEIC).
• As of early August 2022, over 25,000 cases of monkeypox have been reported from 83 countries, 76 of which have never historically reported monkeypox.

VIRUSES: A BASIC STUDY

DEFINITION

• A virus is an infectious microbe consisting of a segment of nucleic acid (either DNA or RNA) surrounded by a protein coat.
• Viruses are non-cellular organisms that are characterized by having an inert crystalline structure outside the living cell.

WORKING & FEATURES

• A virus cannot replicate alone; instead, it must infect cells and use components of the host cell to make copies of itself.
• Often, a virus ends up killing the host cell in the process, causing damage to the host organism. Well-known examples of viruses causing human disease include AIDS, COVID-19, measles and smallpox.
• In addition to proteins, viruses also contain genetic material, which could be either RNA or DNA.
• No virus contains both RNA & DNA.
• Viruses that infect plants have single-stranded RNA & Viruses that infect animals have either single or double-stranded RNA or double-stranded DNA.
• Bacteriophages (viruses that infect bacteria) are usually double-stranded DNA viruses.

TYPES

DIFFERENCES BETWEEN DNA AND RNA VIRUSES

• DNA viruses contain DNA as the genetic material while RNA viruses contain RNA as the genetic material. Some examples of DNA viruses are Herpes viruses, poxviruses, and hepatitis B.
• Generally, DNA genomes are larger than RNA genomes. Furthermore, most DNA viruses contain double-stranded DNA while most RNA viruses contain single-stranded RNA. Rhabdovirus, coronavirus, SARS, poliovirus, rhinovirus, hepatitis A virus, influenza virus, etc., are some examples of RNA viruses.

PROLIFERATING GENETIC MUTATIONS: THE EVOLUTION AND CONCERN

Recently, a team of researchers at the National Institute of Health Doutor Ricardo Jorge in Portugal has found that the monkeypox virus has been evolving at a faster rate than expected.

KEY FINDINGS

• Scientists said the latest strain of monkeypox, once previously confined to parts of Africa, has about 50 genetic variations compared to related viruses that circulated in 2018-2019.
• They found the virus is continuing to evolve during the current outbreak, including a number of small changes in the genetic code, minor gene variants and a deleted gene.

LOOMING CONCERNS

• The monkeypox virus has a DNA genome of around 2,00,000 base pairs, roughly six times larger than that of SARS-CoV-2. Like other viruses, the monkeypox virus evolves by the accumulation of genetic errors, or mutations, in its genome when it replicates inside a host.
• Information about mutations occurring in different genome sequences of the monkeypox virus across different regions can, thus, provide essential insights into how the virus is evolving, its genetic diversity and other factors that may be relevant to the development of diagnostic tools.

RISKS OF PARALLEL EVOLUTION

• Being a DNA virus, the monkeypox virus, like other poxviruses, was believed to have a small rate of accumulating genetic changes compared to viruses with an RNA genome like SARS-CoV-2, which have a much larger rate of mutations. For poxviruses, this rate is estimated to be as low as a couple of genetic changes every year.
• A recent study, however, revealed that the observed rate of genetic changes in the virus was higher than the expected average of around 50 genetic changes.
• The higher-than-expected rate of evolution coupled with the rapid rise in monkeypox cases across the world could potentially be due to highly parallel evolution in a large number of individuals simultaneously, as the present outbreak came out of a super spreader event.

ASPECT OF APOBEC3 PROTEIN

• The researchers also suggest that several mutations that have been identified in the new sequences of the monkeypox virus may have emerged due to interaction between the virus genome and an important family of proteins coded by the human genome known as the Apolipoprotein B Editing Complex (or APOBEC3). These proteins offer protection against certain viral infections by editing the genome sequence of the virus while it replicates in the cell.
• Therefore, researchers suggest that many of the genetic mutations in the monkeypox genomes from the current outbreak are remnants of the effect of APOBEC3 and may not provide a significant evolutionary advantage to the virus.

POSSIBLE OUTREACH OF THE VIRUS

• Monkeypox virus can infect a range of hosts, including non-human primates and rodents, which could act as a natural reservoir. Infections in the reservoir could also enable continued transmission and accumulation of mutations before spilling over to cause human infections.

MONKEYPOX LINEAGES

• Clusters of genomes having common and shared mutations and a common origin are referred to as a lineage or clade. In the early 2000s, two different clades of monkeypox virus were defined in Africa, where several cases of the disease have been seen the Central African (Congo Basin) clade and the West African clade, of which the Congo Basin clade has been shown to be more transmissible and cause more severe disease.

HOW ARE LINEAGES OF VIRUSES NAMED?

• Since naming viral lineages using the country or geography of origin could be discriminatory and possibly not in the right spirit, a new system of naming monkeypox lineages has been proposed by researchers recently.
• Under the new proposed system, the Congo Basin clade is denoted as clade 1, while the West African clade is divided into clade 2 and clade 3.
• This new system will also describe sub-lineages of the virus, with the original parent lineage being denoted as lineage ‘A’, and its descendants as ‘A.1’, ‘A.1.1’, ‘A.2’, and ‘B.1’.
• Lineage B.1 denoted the current 2022 outbreak of monkeypox virus infections which is a descendant of the A.1.1 lineage.

SIGNIFICANCE OF LATEST MONKEYPOX OUTBREAK

UNDERSTANDING GEOGRAPHICAL DISTRIBUTION OF THE VIRUS

• With several genome sequences of the monkeypox virus available in public databases, it is possible today to understand the prevalence of different lineages of the virus across different regions.
• Over 95% of the recently deposited genome sequences of the virus belong to the B.1 lineage of the monkeypox virus, and this lineage is epidemiologically linked to the super spreader events in Europe that formed the basis for the current outbreak of monkeypox.

TRACKING THE SPREAD

• While a majority of the genomes deposited could be linked to the 2022 outbreak of monkeypox, sequences deposited recently in 2022 from the U.S., Thailand and India suggest that there is a second distinct lineage of the monkeypox virus that is currently in active circulation in 2022.
• These genomes are classified as the A.2 lineage of the monkeypox virus and currently encompass six genome sequences, including two that were collected from Kerala.
• The earliest genome belonging to this lineage was collected from Texas in 2021, while the two sequences from Kerala collected in 2022 cluster closely with a genome collected from Florida in the same year.

AIDING GENOMIC SURVEILLANCE

• Genomic surveillance of pathogens provides interesting insights by following a molecular approach for contact tracing and understanding the transmission of the virus across the world.
• As cases of monkeypox continue to rise, it is therefore important to strengthen the genomic surveillance for the monkeypox virus.
• Since data from the present outbreak suggest a sustained human-to-human transmission, continuous genomic surveillance is important to understand the evolution and adaptation of the virus, apart from providing useful data to epidemiologists.

THE WAY FORWARD

• Genomic surveillance has played a crucial role in the global Covid -19 response, with countries like South Africa able to make essential contributions in detecting variants due to their capacities in this area. Thus, in the wake of the COVID-19 cases continuing unabated and monkeypox having a proliferating trend, there is an urgent need to build a sustainable system for genomic surveillance in India.
• Genomic sequencing is a crucial part of every country’s approach to detecting and containing outbreaks of other pathogens. Indian SARS-CoV-2 Consortium on Genomics (INSACOG) has conducted various surveillance studies on genomic mutations. It provides an accurate real-time picture of how a pandemic is moving, and thus, its capabilities must be continuously refined. The INSACOG is crucial in:
  • Early detection of genomic variants of public health implications through sentinel surveillance.
  • To determine the genomic variants in unusual events/trends (Vaccine breakthrough, super-spreader events, high mortality/morbidity trend areas etc.).
  • To correlate the genome surveillance data with epidemiological data.
  • To suggest public health actions based on the analysis of genomic and epidemiological surveillance data.
• A Rapid Response Team (RRT) must be formed in each State/UT by the Health Department. The team should comprise a clinician, a microbiologist and a member of the Medical College (preferably from the Community Medicine Department). As soon as any mutation is detected and conveyed to the State/UT, the RRT must be deployed by the State/UT to the site, where it will investigate the mutant

THE CONCLUSION: Recently, WHO’s Science Council released a report, “Accelerating access to genomics for global health”, advocating for passing on Genomic Technologies to developing countries. The report mentions that countries with established expertise must come forward in support of vulnerable developing nations for the cause of enhancing their genetic sequencing and surveillance capabilities.

QUESTIONS TO PONDER

• “With COVID-19 continuing unabated and monkeypox around the corner, the time has never been better, and the need never more acute, to build a sustainable system for genomic surveillance in India.” In the light of this statement, examine the efficacy of the recently formed Indian SARS-CoV-2 Genomics Consortium (INSACOG).
• “A recent study revealed that the rate of genetic changes in the monkeypox virus was higher than expected.” In the light of this statement, explain the potential causes of the proliferation of viruses like MonkeyPox.
• Discuss the types of viruses. How are lineages of viruses named? Explain in the light of the monkeypox virus.

THE INDIAN POLITY AND GOVERNANCE

1. SUPREME COURT QUOTA FOR DALIT MUSLIMS AND CHRISTIANS

THE CONTEXT: The Centre is likely to soon decide on setting up a national commission to study the social, economic and educational status of Dalits who converted to religions other than Hinduism, Buddhism and Sikhism. Several petitions are pending before the Supreme Court seeking Scheduled Caste (SC) reservation benefits for Dalits who converted to Christianity or Islam.
THE EXPLANATION:
Why don’t Dalits who convert to Christianity and Islam get quota benefits?
• The original rationale behind giving reservation to Scheduled Castes was that these sections had suffered from the social evil of untouchability, which was practised among Hindus. Under Article 341 of the Constitution, the President may “specify the castes, races or tribes or parts of or groups within castes, races or tribes which shall…be deemed to be Scheduled Castes”.
• The first order under this provision was issued in 1950, and covered only Hindus. Following demands from the Sikh community, an order was issued in 1956, including Sikhs of Dalit origin among the beneficiaries of the SC quota. In 1990, the government acceded to a similar demand from Buddhists of Dalit origin, and the order was revised to state: “No person who professes a religion different from the Hindu, the Sikh or the Buddhist religion shall be deemed to be a member of Scheduled Caste.”

Does this religion-based bar apply to converted STs and OBCs as well?
• According to Department of Personnel and Training (DoPT) states, “The rights of a person belonging to a Scheduled Tribe are independent of his/her religious faith.” Following the implementation of the Mandal Commission report, several Christian and Muslim communities have found place in the Central and state lists of OBCs.

What efforts have been made to include Muslims and Christians of Dalit origin among SCs?
• After 1990, a number of Private Member’s Bills were brought in Parliament for this purpose. In 1996, a government Bill called The Constitution (Scheduled Castes) Orders (Amendment) Bill was drafted, but in view of a divergence of opinions, the Bill was not introduced in Parliament.
• The UPA government headed by Prime Minister Manmohan Singh set up two important panels: the National Commission for Religious and Linguistic Minorities, popularly known as the Ranganath Misra Commission, in October 2004; and a seven-member high-level committee headed by former Chief Justice of Delhi High Court Rajinder Sachar to study the social, economic, and educational condition of Muslims in March 2005.
• The Sachar Committee Report observed that the social and economic situation of Dalit Muslims and Dalit Christians did not improve after conversion. The Ranganath Misra Commission, which submitted its report in May 2007, recommended that SC status should be “completely de-linked…from religion and…Scheduled Castes [should be made] fully religion-neutral like…Scheduled Tribes”.
The report was tabled in both Houses of Parliament on December 18, 2009, but its recommendation was not accepted in view of inadequate field data and corroboration with the actual situation on the ground.

2. THE CONTROVERSY OVER NAAC’S SYSTEM FOR ASSESSING HIGHER EDUCATION

THE CONTEXT: The National Assessment and Accreditation Council (NAAC), which carries out quality checks or assessments of Indian Higher-level Educational Institutions (HEIs), courted controversy recently over the rating of the Maharaja Sayajirao University of Baroda and allegations of bribery in the process.
THE EXPLANATION:
When the NAAC released the ratings, the institute’s score changed from A to A+ on the back of improvement across parameters. The allegations have surfaced at a time when the NAAC is exploring changes in its approach.
What is NAAC?
The NAAC, an autonomous body under the University Grants Commission (UGC), assesses and certifies HEIs with gradings as part of accreditation. Through a multi-layered process, a higher education institution learns whether it meets the standards of quality set by the evaluator in terms of curriculum, faculty, infrastructure, research, and other parameters. The ratings of institutions range from A++ to C. If an institution is graded D, it means it is not accredited.

THE INTERNATIONAL RELATIONS

3. JAPAN- INDIA MARITIME EXERCISE 2022 CONCLUDES

THE CONTEXT: The sixth edition of the Japan India Maritime Exercise 2022, JIMEX 22 hosted by the Indian Navy concluded in the Bay of Bengal with the two sides bidding farewell to each other with a customary steam past on 17 Sep 22.
THE EXPLANATION:
• JIMEX comprised of complex tactical drills in all dimensions of Naval warfare to enhance interoperability between two key maritime forces in the Indo-Pacific.
• JIMEX 22 witnessed some of the most complex exercises undertaken jointly by the two navies. Both sides engaged in advanced level anti-submarine warfare, weapon firings and Air Defence exercises. Shipborne helicopters, fighter aircraft and submarines also participated in the exercise. IN and JMSDF ships replenished each other at sea under the agreement on Reciprocal Provision for Supply and Services (RPSS).
• The exercise, which marked the tenth anniversary of JIMEX since its inception in 2012, consolidated the mutual understanding and interoperability between the two navies.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

4. HOW REPLACING COAL WITH PADDY STRAW IN BRICK KILNS CAN HELP ADDRESS STUBBLE BURNING MENACE

THE CONTEXT: The Punjab Pollution Control Board (PPCB) wants brick kiln owners in the state to replace at least 20% coal with the paddy-straw pellets for fuel requirements in the kilns. The PPCB believes that this will help tackle the problem of stubble burning in the state.
THE EXPLANATION:

The proposal,
In a letter to brick kiln owners, the PPCB has said that the Punjab government is formulating a policy for the mandatory replacement of 20% coal with paddy straw-based pellets. This is based on a study conducted jointly by the Punjab State Council For Science and Technology (PSCST) and PPCB regarding the partial replacement of coal with paddy straw pellets with an aim to reduce air pollution while ensuring economic benefit for kiln owners. A draft notification in this regard has already been issued by the state’s Department of Science, Technology and Environment, and public comments invited.

The rationale
• There are around 2,700 kilns in Punjab out of which nearly 2,100 have been upgraded and are in operation currently. The average coal consumption of a kiln, which runs for 6-7 months in a year, is around 900 tonnes of coal (with upgraded technology).
• So, the coal consumption of these operational kilns’ would come to around 19 lakh tonnes per year, costing around Rs 4,750 crores. The cost of one-tonne coal is around Rs 25,000 including the freight rate.
• In Punjab, kilns are operated two times from October to December and February to July in a year.
• A brick kiln, which is usually 120-ft high (part of which is under the earth), has around 36 chambers in which about 10-12 lakh clay bricks are placed for drying or hardening.
• Brick kiln owners said that the replacement of 20% coal with stubble pellets means that nearly 200 tonnes of coal burning can be reduced in every kiln per year (and to a total of 4.20 lakh tonnes worth Rs 1,050 crores).

Good for the environment?
• The paddy stubble fuel is environmentally friendly as it does not contain a high amount of sulphur like coal.
• According to the Department of Science and Technology and Environment, it can help achieve the stringent emission standard for particulate matter (PM) that is set for the brick kilns.

5. WORLD’S FIRST CLONED ARCTIC WOLF

THE CONTEXT: Recently, the scientists in China have successfully cloned wild Arctic Wolf for the first time.
THE EXPLANATION:
• A Beijing-based gene firm had succeeded in cloning the Arctic Wolf to prevent the endangered species from going extinct.
• The newly cloned wolf was named Maya, which means good health.
• The donor cell of the wolf came from a skin sample of a wild female Arctic Wolf. Its oocyte was obtained from a dog.
• The cloning process involved the construction of 137 new embryos from enucleated (process of removing nucleus from the cell) oocytes and somatic cells.
• 85 embryos were transferred to the uteri of seven beagles.
• The beagle was chosen as the surrogate mother since this dog breed is found to share genetic ancestry with ancient wolf.
What is cloning?
Cloning is the process of producing living organisms, including cells, tissues etc., with identical genetic materials ether through natural or artificial means. In nature, some organisms produce clones through asexual reproduction. Artificially, the first animal to be cloned was a sheep named Dolly. It was created in 1996 by a Scottish scientist using an udder cell from an adult sheep. Recently, in July 2022, Japanese scientists have succeeded in producing cloned mice using freeze-dried skin cells. This new breakthrough makes it possible to practice bio-banking, which involves saving animal cells and creating clones from them.
About Arctic Wolf
The Arctic Wolf is also known as white wolf or polar wolf. It is native to the High Arctic tundra of Canada’s Queen Elizabeth Islands. It is a subspecies of the grey wolf. This medium-sized wolf is smaller than the Alaskan timber wolf. Since the 1930s, there has been a significant decline in the size of the Arctic wolf’s skull because of the wolf-dog hybridization.

THE GOVERNMENT SCHEMES AND INTERVENTIONS

6. INSPIRE AWARDS CONFERRED TO 53,021 STUDENTS ACROSS INDIA

THE CONTEXT: Union Minister of Science and Technology has recently provided financial aid to around 53,000 students under the INSPIRE Scheme.
THE EXPLANATION:
What is INSPIRE Scheme?
• The Innovation in Science Pursuit for Inspired Research (INSPIRE) scheme has been implemented by Indian Government’s Department of Science and Technology (DST) to encourage people aging 10 to 32 years to pursue science and a career in research.
• Its purpose is to attract talent to science at an early age and create the required resource pool for strengthening the science and technology system and research and development base in the country.
• It has three components – Scheme for Early Attraction of Talent (SEATS), Scholarship for Higher Education (SHE) and Assured Opportunity for Research Careers (AORC).
About INSPIRE Award – MANAK
• The Indian Government confers INSPIRE Award – MANAK (Million Minds Augmenting National Aspiration and Knowledge) every year under the SEAT Program.
• Under the INSPIRE AWARDS – MANAK Scheme, students across India are encouraged to send original and creative technological ideas or innovations that can solve common problems.
• The chosen ideas will be provided with complete incubation support required to promote the entrepreneurial journey of students.
• This scheme has attracted 6.53 Lakh ideas and innovations from across India in 2020-21 – the highest till date.
• It represented ideas and innovations from 702 districts (96%) in India.
• This includes 123 of the 124 aspirational districts, 51 per cent representation from girls, 84 per cent from schools in rural regions and 71 per cent of schools run by state/UT governments.
• Of the 6.53 lakh students, 53,021 students have been provided with the financial support of Rs.10,000 to help them develop prototypes for the ideas they submitted.

[WpProQuiz 336]

THE CONTEXT: The discourse on privatization and public assets sale is not new in India. Some people favour it, and some oppose it. The sale of the loss-making national carrier Air India to the Tata Group is a move that evoked a mixed response. While some hailed it on the assumption that it would no longer spell a further loss to the exchequer, its opponents felt that a national asset was being sold at a throwaway price without transparency by the Union government. Critics of the government say that the government failed to fill fiduciary duty in the case of Air India selling.

THE ISSUES WITH THE AIR INDIA SALE

WHAT IS FIDUCIARY DUTY?

In brief, fiduciary duty is a requirement that a person in a position of trusts, such as a real estate agent, broker, or executor, must act in good faith and honesty on behalf of a client. Fiduciary duty is a legal obligation of the highest degree for one party to act in another’s best interest.

The person to whom a fiduciary owes their duty is the principal or beneficiary. Accordingly, the fiduciary must work to the best of their ability to benefit the principal and bring about a satisfactory result or capable stewardship of the principal’s assets.

THE ISSUE OF PUBLIC TRUST

• It is prudent to extend the doctrine of ‘public trust’ to the government’s management of public sector enterprises. There is a fiduciary duty cast upon the government to act reasonably and in a transparent manner while dealing with public assets. Unlike a private asset sale, a government selling public assets and assuming liabilities without proper planning will impose an enormous debt burden on citizens.

SET A DANGEROUS PRECEDENT FOR OTHER SALES

• The Air India asset sale needs scrutiny in light of the Government’s new National Monetisation Pipeline (NMP), where public assets will be monetised either as leases or outright sales. Air India’s asset sale and retention of liabilities set a dangerous precedent as it could result in selling public assets to government faithful and leaving the liabilities to citizens.

CRISIS OF TRANSPARENCY

• The privatisation of loss-making public sector enterprises may prevent the state from incurring further losses. However, unless the sale proceeds are substantial, genuine and transparent, a crisis of legitimacy may arise.

SIMILAR CASES WHERE FIDUCIARY DUTY IS NOT BEING FOLLOWED BY THE GOVERNMENT:

1. One example is the anonymous electoral bonds scheme which taps corporate funding to help any political party and where the details are known only to the ruling party, which could fuel mistrust of such asset sales. A Right to Information filing by the Association for Democratic Reforms showed that with the State Bank of India as the sole authorised dealer of electoral bonds, out of ₹3,429 crores of the total value of electoral bonds generated by the bank (FY19-20), the ruling party at the Centre alone devoured a whopping ₹2,606 crores or 76% of the total bonds issued so far. This is also the period that saw some major privatisation of public sector enterprises.Here, the role of discreet political funding through anonymous electoral bonds needs to be assessed more closely.
2. The recent award of a contract worth ₹1,126 crores to a Chinese firm (Shanghai Tunnel Engineering Co. Ltd.) to construct an underground rail stretch in Delhi and a contract worth ₹170 crores to another Chinese firmfor the supply of wheels to Vande Bharat trains cannot be seen in isolation. It is important to remember that China is an aggressor at the Line of Actual Control.

TYPES OF SALES

• Enterprise sale: In order to unlock the value of assets, liabilities are retained by the seller either by himself or through an SPV, and assets are sold for a competitive price; otherwise, the liabilities will surpass the value of the assets, rendering the enterprise value to negative.
• Asset sale: An asset sale involves selling a business asset to another party, i.e. the purchaser. This includes tangible assets such as equipment and inventory, and intangible assets such as business goodwill, its intellectual property (IP) and customer lists.
• Private asset sale: It involves the consent of the secured creditors (mostly banks) who give their consent to park the liability only when they are satisfied that the promoters or the shareholders of the private enterprise would be able to satisfy the liabilities either from the proceeds of the sale or otherwise.
• Public asset sale: The sale of assets controlled by the government (sovereign), has a few shortcomings as follows:
• Directly or indirectly government-controlled banks cannot conduct due diligence independently on the nature of the sale
• Banks also cannot report fairly on whether the sale proceeds are sufficient to satisfy the debt because the government has given an undertaking to repay the debt, or the government may even force banks into a settlement with lesser repayment or even a write-off.

THE PRESENT PRIVATIZATION POLICY OF THE GOVERNMENT

Fulfilling the government’s commitment under the Atma Nirbhar Package to coming up with a policy of strategic disinvestment of public sector enterprises, with the following feature

• Strategic Sector: Bare minimum presence of the public sector enterprises and remaining to be privatised or merged or subsidiaries with other CPSEs or closed.
• Strategic sector: Industries are considered strategic if it has large innovative spillovers and if it provides a substantial infrastructure for another forum in the same or related industry
• Following 4 sectors come under it :

• • • Atomic energy, Space and Defence
    • Transport and Telecommunications
    • Power, Petroleum, Coal and other minerals
    • Banking, Insurance and financial services
• Non-Strategic Sector: In this sector, CPSEs will be privatised, otherwise shall be closed.

Non-strategic sector

• will include hotel and tourist services, transportation vehicle and equipment, industrial and consumer goods, trading and marketing, and transport and logistics

The policy of the government on the 18 strategic sectors Other sectors

18 strategic sectors under 3 different classificatory types are

• mining and exploration
• processing and generation and
• the service sector

Policy regarding PSU by the govt

• Govt will completely exit the non-strategic sector
• in the strategic sector govt will keep a maximum of 1-4 PSU and subsequently opt for strategic disinvestment

PRIVATIZATION OF PSU SINCE 2014, INCLUDING BANKS

The increase in the supply of PSU stocks and the constrained investor appetite had started affecting the prices. The trade-off between the political objective to privatize and revenue maximization was witnessed the most in this period. Resultantly, the government resort to Strategic Sales.

However, a departure from past govt is also disinvesting profit-making ventures with a rationale that disinvestment of profit-making enterprises by a public offering of shares is desirable as it leads to dispersed shareholding and avoids concentration of economic power.

However, in the case of the bank, an amalgamation policy was followed which reduced the number of the national bank from 28 to 12 by merging various banks.

• But even after this, there was no meaningful resolution of the NPA crisis.
  • In fact, post the covid crisis, this problem will increase as small banks are facing the problem of balancing credit growth and risk.
  • With the spectre of insolvencies looming at the start of pandemic-led lockdown, there was a flight of deposits from small banks to bigger ones.
• In view of this, the govt has focused on taking PSBs out of government control.

Overall approach

Since 2014, the Modi government’s strategic disinvestment approach was to sell minority stakes in public companies to raise revenue, while retaining management control. During the 2014-2019 period, the government raised Rs. 2,79,622 crore from the disinvestment of public sector enterprises (PSEs), compared to Rs 1,07,833 crore collected during 2004-14. However, this has changed now. Recently, five companies were up for 100 per cent disinvestment, including three large profitable companies such as Bharat Petroleum Corporation Ltd. (BPCL), the Container Corporation of India and the Shipping Corporation.

THE CRITICAL ANALYSIS OF PRIVATIZATION POLICY BY THE PRESENT GOVERNMENT

Is privatization of banks panacea for success

• Private players in the financial sector are prone to failure: this fact gave the world economic shock of astronomical proportion, which was over reachingly created by private bank
• Private banks fail all the time. In the 20 years from 2001 to 2020, as many as 559 private banks with assets of $721 billion failed in the US.
• The principle followed by private banks is when they make profits, it goes to shareholders: When they make losses, it gets socialised and falls in the lap of the government to make good the deposits either through insurance or taxpayer bailout. (Yes Bank, Federal Deposit Insurance Corporation (FDIC), bailed out the above bank.)
• Big private banks can fail at any time: There is a myth that if a bank gets large enough, it will not fail. While one can agree that the larger the bank, the greater its ability to absorb losses, this does not mean it cannot fail. The axiom “Higher you go, harder the fall” applies best to private banks. Yes, Bank, Citi Bank, and Washington Mutual Bank are all such examples.

Looking at the larger interest

• The move towards divesting ownership in strategic sectors will have long-term consequences. A diluted public sector would possibly mean that India missing out on the opportunity to capitalise on the global distrust against Chinese supply lines in the wake of the current crisis.
• Moreover, the valuation of PSU is at an all-time low. At the start of NDA-2, the valuation of PSU at the BSE was 22% which has reduced to 9.4% in Oct 2020.
• At present, because of the crisis presented by the pandemic, it is highly unlikely that more than 10 per cent of the shares of the LIC is subscribed, as the market may not be able to absorb more.

PSU MODELS IN DIFFERENT COUNTRIES

PSUs exist virtually everywhere. In Asia where PSUs have played an important role in shaping the economy. According to an OECD report, PSUs pull plenty of economic might —

• in China, they account for 30% of GDP,
• in Vietnam, 38%,
• and they account for roughly a fourth of GDP in India and Thailand.
• PSUs are also big employers in many of these countries — 15% in China, and 5% in Malaysia.
• PSUs play an important role in BRICS economies.
  • According to a recent KPMG report, of the 2,000 largest companies globally, 260 are from BRICS economies.
  • About 123 or 47% of the largest BRICS enterprises are PSU. The market value of PSU amounts to 32% of GNIs (gross national income) among all BRICS countries.

All the above example shows that privatization is not the only panacea for bringing efficiency, improving productivity, and building productive assets.

THE GLOBAL PRACTICES

Reshaping the PSU buy other countries

Three former planned economies have set up centralized holding entities — SASAC in China in 2003, SCIC in Vietnam in 2007 and Druk Holdings and Investments in Bhutan. In 2006, the Philippines pioneered the development of a PSU governance scorecard which has become an important tool for pushing PSU reforms. Since 2004, Malaysia has rolled out a comprehensive ‘transformation programme” to overhaul its PSUs.

An incorporated holding company Temasek to better manage its assets on a commercial basis was launched in Singapore. This allowed its Ministry of Finance to focus on policy making. At inception, Temasek’s initial portfolio was S$354 million, spanning 35 companies. Thereafter began the process of restructuring SOEs. Some were corporatized and privatized, others were allowed to go for big global expansions.

THE CHINA EXAMPLE: 

In 2003, a holding company, the State-Owned Assets Supervision & Administration Commission (SASAC), was created to manage the SEO. The agency, which controls nearly 100 of the largest SOEs, lies “at the heart of China’s industrial deep state

THE WAY FORWARD: WHAT CAN INDIA LEARN?

ALTERNATIVES TO PRIVATISATION (WITH PAST EXAMPLES)

 A fire sale privatisation, as is prescribed by free market evangelists, is an also less efficient method of value maximization, besides being completely impractical in India’s political economy. Neither disinvestment nor the few outright privatizations that have taken place seem to have really maximized value for the key shareholder — the taxpayer of India.

The case for privatisation is trickier and the trick lies likely elsewhere – in control. Within the Indian landscape, there are examples, albeit few, where significant (or even majority) government ownership has not prevented the company from creating enormous value for shareholders. Since Independence, while most government-funded enterprises were set up as public sector undertakings, mostly under enabling legislations, there were other models explored too.

1. Maruti Udyog was set up as a Joint Venture of the government of India with Suzuki of Japan, with the latter initially holding a minority stake. But the cornerstone of the structure was on management control – government, despite its majority stake, allowed a very substantial amount of management and operational freedom to Suzuki to manage the company on commercial lines.
2. A second model used often, mostly in financial services, has been that of indirect ownership — via other PSUs while allowing private sector-level management and operational freedoms. The Industrial Credit and Investment Corporation of India (ICICI), the erstwhile parent company of ICICI Bankwas set up as a joint venture of public sector banks, insurance companies and the World Bank.
3. UTI Bank (known as Axis Banknow) was sponsored by the government owned UTI-1, a special purpose vehicle created out of the restructuring of Unit Trust of India.
4. HDFC, the mortgage lender, was initially sponsored by ICICI, with minority shareholdings with IFC (part of the World Bank group) and the Prince Aga Khan foundation.

Apart from above, government should a progressive approach for privatization as given below:

NEGATIVE BIDS

• The government should permit negative bids: a bid where the government pays someone to take the company off its hands. Negative bids were an important part of the massive privatization which took place in Germany after the end of socialism and helped to get productive assets rapidly into the hands of efficient managers in the private sector.

MOU MODELS

• In  South Korea, PSUs with high social obligation operates with private sectors with the help Of MOUs.
• But one of the most important things, that is forgotten in the outright privatization of CPSUs is that it is unaccompanied by the necessary reforms in the overall regulatory framework in which they operate. Reforms of the regulatory frameworks and the markets are crucial for the performance of both PSUs and private companies, ensuring a rule-based competitive structure covering entry, exit, bankruptcy and competition among existing companies, as manifested by the British privatization of the 1980s and 90s.

CRISIS OF LEGITIMACY

• The privatization of loss-making public sector enterprises may prevent the state from incurring further losses. However, unless the sale proceeds are substantial, genuine and transparent, a crisis of legitimacy may arise.

RECOGNISING THE ROLE OF STATES

• It is vital to recognise the role of States in establishing a public asset such as Air India, They have actively participated in the growth of the airline in the form of land and other infrastructure to its offices.

o   States were not consulted in the whole process which is a breach of the spirit of ‘cooperative federalism’.

THE CONCLUSION: While the experience of other countries is available to India by way of guidance, it would have to evolve its own techniques, best suited to its level of development. The historic, cultural, and institutional context influences the way in which and the pace at which privatization is implemented. Where the market economy is not fully developed, ways would have to be found to safeguard the interests of consumers and investors, which would ensure a fuller play to the wealth-creating role of the entrepreneurs.  Apart from it, along with profit-driven marketplace, the welfare policy interventions of public sector enterprises such as social uplift, full employment need to be advocated.It is prudent to extend this doctrine of ‘public trust’ to the management of public sector enterprises by the government, as selling public assets and assuming the liabilities without proper planning will impose an enormous debt burden on citizens.

QUESTIONS TO PONDER

1. Why is fiduciary duty an important element of government functioning? How can government fulfil its fiduciary duty in its functioning, especially related to asset sale processing?
2. How far do you think that the central government’s approach to the asset sale is facing a trust deficit, and it is resulting in liabilities being left to citizens? Substantiate your views with examples.

THE INDIAN HISTORY

1. LIBERATION, INTEGRATION, NEGOTIATION: HOW HYDERABAD BECAME A PART OF INDIA

THE CONTEXT: Recently, the government of India began its year-long celebrations for the ‘Telangana Liberation Day’ on September 17, marking how on the same day in 1948, “the state of Hyderabad got its independence from Nizam’s rule”.
THE EXPLANATION:
From 1911 to 1948, Nizam Mir Usman Ali, the last Nizam of Hyderabad, ruled the state composed of Telangana and parts of present-day Karnataka and Maharashtra.

How did Hyderabad state become a part of India?
• At the time of India’s independence, British India was a mix of independent kingdoms and provinces that were given the options of joining India, Pakistan, or remaining independent. One among those who took a long time to make a decision was the Nizam of Hyderabad. Believed to be one of the richest people in the world at the time, the Nizam was not ready to let go of his kingdom.
• Meanwhile, the majority population of Hyderabad state was far from enjoying the same kind of wealth as the Nizam did. The feudal nature of the state at the time caused the peasant population to suffer high taxes, indignities of forced labour, and various other kinds of exploitation at the hands of powerful landlords.
• There was also a demand by the Andhra Jan Sangham for Telugu to be given primacy over Urdu. By the mid-1930s, apart from a reduction in land revenue rates and the abolition of forced labour, introducing Telugu in local courts became another important issue. Soon after the organisation became the Andhra Mahasabha (AMS), and Communists became associated with it. Together, the two groups built a peasant movement against the Nizam that found local support.

Who were the razakars and the Ittehad-ul-Muslimeen?
• In response to an uprising in July 1946 against forceful land acquisition on the part of a hereditary tax collector named Visnur Ramachandra Reddy, by October 1946, the Nizam banned the AMS. A close aide of the Nizam, Qasim Razvi, leader of the Ittehad-ul-Muslimeen, became closely involved in securing the Nizam’s position.
• The Ittehad-ul-Muslimeen was a political outfit that sought a greater role for Muslims in the early 20th century, but after Razvi took over the organisation, it became extremist in its ideology. It was under him that a militia of the ‘razakars’ was formed to suppress the peasant and communist movement, launching a brutal attack.
• Around this time, the Standstill Agreement was also signed between the Nizam and the Indian government in November 1947, declaring a status quo. This meant that until November 1948, the Nizam could let things be as they were and not finalise a decision as negotiations with the Indian union continued

The legacy of Operation Polo
• It has also been said that the army’s march into Hyderabad did not just target the razakars and the radical extremist forces. The 2013 AG Noorani book ‘Destruction of Hyderabad’ says a four-member goodwill mission led by Pandit Sunderlal was constituted by the then Prime Minister.
• At the request of then PM Jawaharlal Nehru, a month was spent in Hyderabad in November 1948 where evidence was gathered and at the end, a report was filed, estimating thousands of people died in communal violence during the military action. The contents of the report were not made public for a long time.

THE GOVERNMENT POLICIES AND INTERVENTION

2. THE NATIONAL LOGISTICS POLICY

THE CONTEXT: The National Logistics Policy aims to promote smooth movement of goods across India and boost competitiveness of the Indian goods in the domestic and international markets.
THE EXPLANATION:
• It aims to bring down the logistics cost, which in turn would improve efficiency of various sectors of the economy, boosting value addition and economic growth.
• The policy was announced for the first time in Union Budget 2020.
• Its focus areas are Integration of Digital System (IDS), Unified Logistics Interface Platform (ULIP), Ease of Logistics (ELOG) and System Improvement Group (SIG).
• The IDS will integrate 30 different systems of seven different departments, such as customs, aviation, road transport, railways, international trade and commerce ministries.
• The ULIP aims to ensure continuous monitoring of cargo movement.
• The ELOG would seek to simplify procedures and achieve ease of doing business.
• The SIG would monitor all projects related to logistics in a regular basis and ensure the removal of hurdles faced in the sector.
• An empowered group of secretaries (EGoS) has been constituted under the PM Gati Shakti to monitor and review the implementation of the NLP.
India’s logistics sector
• India’s logistics sector provides jobs for more than 22 million people. The sector is complicated, as it is regulated by more than 20 government agencies, 40 partner government agencies, 37 export promotion councils, 500 certifications etc. India’s current logistics cost as a proportion of the GDP is some 13-14 per cent.
• he Indian Government is planning to decrease it to single digit. The sector’s present market size is 160 billion USD. Its improvement can ensure a 10 per cent decrease in indirect logistics cost and increase the growth of exports by 5 to 8 per cent.

3. NINE DISTRICT DISABILITY REHABILITATION CENTRES UPGRADED ACROSS INDIA

THE CONTEXT: The upgraded district disability rehabilitation centres (DDRC) have speech, visual therapy and psychologists.
THE EXPLANATION:
• The upgraded model DDRCs are situated in Badaun, Pilibhit, Bareilly, Balaghat, Golaghat, Ahmedabad, Amravati, Kullu and Rampur.
• They were virtually inaugurated by the Minister of Social Justice and Empowerment.
• In these model DDRCs, services like hearing aids testing lab, speech therapy room, visual therapy room, psychologist room, physiotherapist room, gait practice parallel bar and telemedicine/tele-therapy facilities are provided.
• They will also assist persons with disabilities to register in the Unique Disability ID portal.
• The model DDRCs are established to provide effective rehabilitation services to persons with disabilities.
• They were upgraded by the Department of Empowerment of Persons With Disability, which comes under the aegis of the Ministry of Social Justice and Empowerment.
About DDRC
• The District Disability Rehabilitation Centre (DDRC) is an initiative of the Union Ministry of Social Justice and Empowerment that aims to provide comprehensive services to Persons with Disabilities (PwDs) in rural parts of India. They have been operating across India for the past 20 years.
• These centres have rehabilitation professions providing services like identifying Persons with Disabilities, creating awareness, early detection and intervention, Providing, fitting and repairing Assistive Devices and facilitating disability certificates, bus passes and other concessions/facilities targeting PwDs. These centres were set up and funded under the Scheme for Implementation of Rights of Persons with Disabilities Act, 2016 (SIPDA).

Rights of Persons with Disabilities Act, 2016
The Rights of Persons with Disabilities Act, 2016 was passed by the Indian Parliament to fulfil its obligations under the United Nations Convention on the Rights of Persons with Disabilities, which was ratified by India in 2007. This Act replaced the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

4. UNEP LAUNCHES GREEN FINS HUB

THE CONTEXT: The United Nations Environmental Programme (UNEP) and the UK-based charity Reef-World Foundation have launched the Green Fins Hub to boost sustainable marine tourism.
THE EXPLANATION:
• The Green Fins Hub is first-ever global marine tourism industry platform that would help diving and snorkelling operators across the world to make simple, cost-efficient changes in their daily practices by implementing international best practices that promotes sustainability of marine tourism.
• The platform would enable operators keep track of their yearly improvements and communicate with their communities and customers.
• It was developed by The Reef-World Foundation in collaboration with the UNEP.
• It would help spread awareness about the global best practices to protect the coral reefs and their fragile marine ecosystems.
• The Green Fins Community Forum in this platform would enable operators to discuss environmental issues, share best practices and raise the industry needs to the governments, non-profits and the overall industry.
• The Green Fins Solutions Library provides some 100 proven environmental solutions to solve daily operational challenges.
• The Action Plan Tracker would enable members to receive annual sustainability action plan with specific goals.
• The platform serves two types of membership – Digital Membership and Green Fin Certified Members.
• The Digital membership would be available for snorkel and liveaboard operations across the world. Throughout the one-year membership, operators will receive environmental scores based on an online self-evaluation. This would enable them to assess their progress on their action plans.
• The Green Fins Certified Members will be assessed annually and be trained in person at their operation. The assessment would be made using a scoring system, in which low score implies low impact of a business on coral reefs. A minimum threshold of 200 or below of environmental impact score is required for becoming a Green Fins Certified Member.
• The new digital platform is expected to reach from 700 operators across 14 countries.

VALUE ADDITION:
United Nations Environment Programme
• It is the leading global environmental authority established in 1972.
• It sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system.
• Headquarters: Nairobi, Kenya.
• Major Reports: Emission Gap Report, Global Environment Outlook, Frontiers, Invest into Healthy Planet.
• Major Campaigns: Beat Pollution, UN75, World Environment Day, Wild for Life, etc.

THE SECURITY AFFAIRS

5. THE SOLIDARITY-2023 BORDER OPERATION

THE CONTEXT: India and other members of the Shanghai Cooperation Organisation (SCO) have extended their support to China-led initiative “Solidarity-2023”, in a bid to organise a joint border operation in 2023.
THE EXPLANATION:
This was announced by Director of Border Security Force (BSF) after concluding the eighth meeting of heads of border authorities of SCO member states.
• This meeting was held in Delhi, under the chairmanship of India.
• India had assumed the chair of SCO-RATS (anti-terrorist structure of the SCO) on October 28, 2021 for a one-year period.
• Member countries also “approved” work plan of expert group of the border services of competent authorities for 2023.
India’s largest guarding force
The Border Security Force (BSF) is the largest frontier-guarding force, with about 2.65 lakh personnel in its ranks. It is primarily tasked with guarding international boundaries with Bangladesh and Pakistan.
Solidarity 2019-2021
The member states also discussed the results of joint border operation, ‘Solidarity-2019-2021′, which were carried out in 2021 by border services of competent authorities of SCO member states. They also reviewed and approved the plan for preparations and conduct of joint border operation called “Friendship Border – 2022”.

THE PRELIMS PERSPECTIVE

6. VARANASI NOMINATED AS THE FIRST SCO TOURISM AND CULTURAL CAPITAL

THE CONTEXT: The temple city of Varanasi was nominated as the first-ever SCO Tourism and Cultural Capital during the recently held SCO Summit.
THE EXPLANATION:
• During the 22nd Meeting of Shanghai Cooperation Organization (SCO) Council of Heads of State held in Samarkand, Uzbekistan, Varanasi was nominated as the first-ever SCO Tourism and Cultural Capital for the period of 2022-23.
• This would promote tourism, cultural and humanitarian exchanges between India and other SCO member states.
• Under this framework, various events will be organized in Varanasi in 2022-23.
• These events bring together musicians, authors, scholars, Indologists and artists as well as other invited guests.
• The regulations for the nomination of the SCO Tourism and Cultural Capital were adopted at the Dushanbe SCO Summit in 2021.
• The purpose of this initiative is to promote cooperation between the SCO members in the area of culture and tourism.
• It also highlights India’s ancient civilizational links with SCO members, especially those from the Central Asia.
Background
During the 2019 Bishkek Summit, President of Uzbekistan suggested the establishment of an annual SCO tradition of nominating a city in the country presiding the SCO as the SCO tourism and culture capital. The objective of this proposal is to realize the tourism potential of cities and promote the cultural and historic heritage of the SCO member states.
Varanasi
Varanasi in Uttar Pradesh dates back to the 11th century BC. It is considered to be the “spiritual capital” of India. It hosts some 2,000 temples, including Kashi Vishwanath. It is situated at the left bank of River Ganga in the middle-Ganges valley.
About Shanghai Cooperation Organization
The Shanghai Cooperation Organization (SCO) is a political, economic and security alliance established in 2001. It is headquartered in Beijing. Its members are China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan. India and Pakistan became members in 2017. The SCO is currently the world’s largest regional organization.

7. WEF TRAVEL AND TOURISM DEVELOPMENT INDEX

THE CONTEXT: In the WEF Travel and Tourism Development Index 2021, India has been ranked at 54th place. In 2019, India had ranked at 46th position. However, the country still topped within the South Asia region. This index is the Travel and Tourism Competitiveness Index’s direct evolution, having been published biennially for the last 15 years.
THE EXPLANATION:
Which country has topped the list?
In the 2021 index, the top place has been grabbed by Japan. The country is followed by the United States, Spain, France, and Germany respectively. The score of India in this list is 4.2.

Which are the top 10 countries on the list?
1. Japan (5.2)
2. United States (5.2)
3. Spain (5.2)
4. France (5.1)
5. Germany (5.1)
6. Switzerland (5.0)
7. Australia (5.0)
8. United Kingdom (5.0)
9. Singapore (5.0)
10. Italy (4.9)

What does this index highlight?
The Travel and Tourism Development Index 2021 of the World Economic Forum comprises of 117 countries. This index has shown that despite various positive trends, the tourism and travel industry is still facing hurdles and are yet to recover properly. 117 countries have been assessed by this index and it has identified certain key factors for enabling resilient and sustainable growth of tourism and travel economies. Due to the COVID-19 shutdowns, this sector has faced significant hurdles, thus, their contribution to a country’s economy has been limited. However, as the world is slowly recovering from the effects of the pandemic, the countries must invest in this sector to build a resilient and strong environment for tourism and travel.

[WpProQuiz 335]

“Now I am careful about the kind of roles that I do.”

-Rajendra Prasad

THE CONTEXT: In July 2022, Droupadi Murmu took oath as the 15th President of India. Chief Justice N. V. Ramana administered the oath of office to Murmu. She is the first tribal of India. Apart from it, she is the second women president of India after Pratibha Devisingh Patil. In this article, we will know the election, functions and powers of the president of India.

ABOUT DROUPADI MURMU

• Hailing from Odisha’s Mayurbhanj district and coming from a Santals Tribal Community, Murmu started as a teacher and then entered into Odisha politics; here’s everything you need to know about India’s first president from the tribal community.
• In 2015, Murmu was sworn in as the first woman Governor of Jharkhand.
• She was also the first Odia woman and tribal leader to be named governor of an Indian state and serve for the entire term of her office.
• A two-term former MLA from Rairangpur, Murmu, held on to her assembly seat in 2009 when the BJD had snapped ties with the BJP weeks ahead of the state elections swept by Chief Minister Naveen Patnaik.
• Having been born into a tribal family that was battling poverty in one of the country’s most remote and underdeveloped districts, her childhood had been full of challenges.
• Overcoming all odds, she earned her Bachelor’s degree in Arts from Ramadevi Women’s College in Bhubaneswar. She served as a junior assistant in the irrigation and power department in the Odisha government.
• She began her political career as the vice-chairman of the Rairangpur NAC. In addition, the Odisha Legislative Assembly honoured her with its Best MLA of the Year 2007 award.
• She has diverse administrative experience, having handled ministries such as transport, commerce, fisheries and animal husbandry in the Odisha government.

CONCEPT OF THE PRESIDENT: THE BACKGROUND

Constituent Assembly, while debated in Constituent Assembly, gave weightage to the parliamentary form of government over the Presidential form of government due to:

• Familiarity with the system under two centuries of British rule.
• Our forefathers prefer ‘responsible government’ over ‘stable government’.

CONSTITUTIONAL POSITION OF THE PRESIDENT

• Article 52 to 78 in Part V of the constitution deals with the Union executive. The President is the head of the Indian state. He is the first citizen of India and acts as the symbol of unity, integrity and solidarity in the nation.
• The Constitution of India has provided for a parliamentary form of government. Consequently, the President has been made only a nominal executive, the real executive being the council of ministers headed by the prime minister.

PROCEDURE OF PRESIDENTIAL ELECTION

VOTES OF MEMBERS OF

• The Electoral College, which elects the President through the system of proportional representation, comprises elected MPs and members of state legislative assemblies — a total of 4,896 voters, including 4,120 MLAs and 776 elected MPs.
• While 233 are elected members of the Rajya Sabha, 543 are from the Lok Sabha.

METHOD TO ASCERTAIN THE VALUE OF VOTE

 HOW IT WORKS OUT

• The winning candidate needs to secure a certain quota of votes which is 50% of the valid votes polled +1.
• Each MP and MLA indicates his/her choices in the case of multiple candidates in order of preference.
• Each vote cast is given a value based on various factors such as the first preference order, value of the vote of each electorate, etc.

NEED TO KNOW

All doubts and disputes in connection with the election of the President are inquired into and decided by the Supreme Court whose decision is final.

DISCRETIONARY POWERS OF THE PRESIDENT

Though the President has no constitutional discretion, he has some situational discretion. In other words, the President can act on his discretion (that is, without the advice of the ministers) under the following situations:

• Appointment of Prime Minister when no party has a clear majority in the Lok Sabha (Hung Parliament) or when the Prime Minister in office dies suddenly and there is no obvious successor.
• Dismissal of the council of ministers when it cannot prove the confidence of the Lok Sabha.
• Dissolution of Lok Sabha if the council of ministers has lost its majority.

OTHER POWERS OF THE PRESIDENT

EXECUTIVE POWERS

Article 53(1) vests the executive power of the union in the president. All executive actions of the Government of India and all contracts and assurances of the property made by the Government of India are formally taken in the president’s name.

The President of India makes an appointment to other constitutional officers and other important members of the union government. These include:

• Prime Minister
• Other ministers, on the advice of Prime Minister
• Chief Justice of India
• Other Judges of the Supreme Court, on the advice of the Chief Justice
• Chief Justice and other judges of high courts
• Chairman and other members of UPSC and Joint Public Service Commissions, etc.

The executive powers vested in the president have to be exercised in accordance with the advice of the Council of Ministers as per Article 74(1). However, he has the power to send back the advice to the council of Ministers for reconsideration. If the council of Ministers adheres to the previous advice, the president has to act as per this advice.

LEGISLATIVE POWERS OF THE PRESIDENT

As a part of Parliament, President has the power to summon or prorogue the two houses of parliament.

The President may dissolve the Lok Sabha.

After the General Elections, the president addresses both the houses of the parliament.

He may address either House or a joint sitting.

He also nominates 12 members of the Rajya Sabha.

PARLIAMENT BILLS

The bills passed by the parliament become acts only after the assent of the president. When a bill is sent to President after it is passed in parliament, President has the following options:

• can either give his assent (he must give assent in case of Constitution Amendment bill),
• withhold his assent if it is not a Constitution amendment bill,
• Return the bill to the parliament for reconsideration if it is not a money bill.
• When Parliament passes again a bill sent to it with or without amendments, the president has to give assent to that bill.

STATE BILLS

Governor has been given the power to reserve a bill for consideration of the president, provided the such bill is not a money bill of that state. When the governor sends the such bill to the president, the president has the following options:

• give his assent to the bill
• withhold his assent to the bill
• Direct the governor to return the bill for reconsideration by the state legislature.
• If the state legislature again passes the bill with or without amendments; and
• If the governor again sent to the president, it is NOT obligatory for the president to give assent to the such bill.

POCKET VETO

In the case of an ordinary bill or a bill got introduced by a private member and passed by both houses, the president can just keep the bill in his pocket and forget it.

CONSTITUTIONAL AMENDMENT BILL

After the 24^th amendment in 1971, it was made clear that once passed by parliament, the president has to give his assent to Constitutional Amendment Bill.

While the president cannot block a constitution amendment bill, such bills are subject to judicial scrutiny. They can be nullified by Supreme Court if they are violative of basic structure doctrine.

MONEY BILLS

Money bills can be introduced in the Parliament only with the prior recommendation of the President. Due to this President can agree to that bill or withhold his assent but can NOT return a money bill to the house for reconsideration.

THE BILLS THAT NEED PRIOR RECOMMENDATION OF THE PRESIDENT

The bills that need the prior recommendation of the president for introduction in parliament are as follows:

• Any bill that seeks to alter the boundaries of the states and names of the states. (Article 3)
• Money Bill (as per Article 110)
• Any bill which affects the taxation in which the states are interested (Article 274)
• State Bills impose a restriction on freedom of trade (Article 304).

ORDINANCE MAKING POWERS OF PRESIDENT

When both or any house of Parliament is not in session, the constitution via article 123 provides the power to the president to issue ordinances if he is satisfied with the circumstances of issuing a such ordinance.  Ordinances are promulgated when parliament is not in session.

The ordinance has a similar effect to an act of parliament. However, every ordinance must be laid before both houses of the parliament within six weeks from the reassembling of the parliament; if not, it lapses.

However, it may be withdrawn by the president at any time on the aid and advice of the CoM headed by the PM.

JUDICIAL POWERS / POWER TO PARDON

Article 72 says that the President shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence. The meaning of these terms is as follows:

• Pardon: Complete pardon
• Reprieve: Temporary suspension of sentence
• Respite: awarding fewer sentence
• Remission: Reducing amount of sentence
• Commutation: Changing one punishment to another

The power to grant pardon is not absolute and is exercised by the President on the advice of the Council of Ministers like any other power. Further, the power to pardon is subject to judicial review.

MILITARY POWERS OF THE PRESIDENT

Article 53 vests the supreme command of the Armed Forces of India in the President.

The President of India can declare war or conclude peace, under the regulation of the parliament.

DIPLOMATIC POWERS OF THE PRESIDENT

India is represented in an International forum by the President of India. He sends and receives ambassadors.

All international treaties and agreements are concluded on behalf of the President, subject to ratification by the parliament.

EMERGENCY POWERS

President has been conferred extraordinary powers in case of national emergency (Article 352), President’s rule (Article 356 & 365) and financial emergency (article 360).

THE CONCLUSION: Though the President of India is a nominal head, he has, along with some situational discretion, played a very important role in upholding Constitutional rule. Article 53 says endowed the executive power of the Union shall be vested in President and shall be exercised by him either directly or through officers subordinate to him in accordance with the Constitution.

1. ‘Executive power of the Union shall be vested in President and shall be exercised directly or through officers subordinate to him by the constitution’. Discuss the essence of the statement.
2. Discuss the role of the President at the time of hung parliament and also other discretionary powers that constitution endowed to him.

THE POLITY AND GOVERNANCE

1. KARNATAKA RIGHT TO FREEDOM OF RELIGION BILL

THE CONTEXT: The ‘Karnataka Protection of Right to Freedom of Religion Bill’ was recently passed by the state legislative council.

THE EXPLANATION:

• Karnataka’s anti-conversion bill was passed by the legislative assembly in December 2021.
• The bill bans forced religious conversions by direct or indirect means.
• It gives specific procedures for undertaking a religious conversion.
• This bill gives penalty to anyone who forcibly convert minor, woman, SC/ST, or a person of unsound mind with 3 to 10 years imprisonment and a fine of Rs.50,000.
• Mass conversion (two or more people) could result in 3 to 10 years of imprisonment and Rs.1 lakh fine.
• Under this legislation, any individual seeking to convert their religion must submit a declaration at least 30 days before the conversion to the District Magistrate.
• The religious convertor is also required to submit a form to the DM at least 30 days before the intended conversion.
• After these submissions, the DM would notify the proposed religious conversion on the notice board of the offices of DM and Tehsildar.
• Within 30 days of the public notice, anyone can file an objection to the conversion.
• If any such objection occurs, the DM is required to conduct an inquiry to investigate the intension, purpose and cause of the proposed conversion.
• Any conversion that occurs while not following the procedure will be considered illegal and void.

Anti-conversion bills

Besides Karnataka, other states have also passed similar legislations. Their purpose is to ban unlawful religious conversions, protect those who are forced to convert from one religion to another through misinterpretation, force, undue influence, coercion, allurement, promise of marriage or any other fraudulent means. Other states that introduced anti-conversion bills are Uttar Pradesh, Himachal Pradesh, Gujarat, Chhattisgarh, Odisha, Madhya Pradesh, Arunachal Pradesh, Uttarakhand, and Jharkhand.

THE INTERNATIONAL RELATIONS

2. EUROPEAN PARLIAMENT: HUNGARY NO LONGER A FULL DEMOCRACY

THE CONTEXT: The European Parliament has adopted a report that declared Hungary to be no longer a democracy.

THE EXPLANATION:

• The European Parliament has recently adopted a parliamentary report that declared Hungary to be “a hybrid regime of electoral autocracy”.
• It concluded that the European values are currently under threat in Hungary and thus, it is no longer a democratic country.
• The recent motion at the European Parliament is symbolic disapproval from the EU towards Hungary, that has witnessed years of opprobrium over the rule-of-law issues under the regime of the current populist Prime Minister Viktor Orban.
• However, this adoption may not lead to any specific punishment targeting Hungary.
• The recently adopted report listed a range of concerns about the country’s electoral system, judicial independence, academic and religious freedom and the overall rights of the vulnerable population.
• In 2018, the European Parliament had launched a procedure against the risk posed by Hungary to EU’s democratic values.
• In theory, this mechanism could result in Hungary losing its right to vote in the EU Council, where the critical decision-making takes place for the European bloc.
• However, it requires action from rest of the 26 EU members, who have shown little interest in antagonizing Hungary.
• The EU countries are wary of such a move since Hungary’s approval is critical for major decisions.
• Hungary is currently having close ties with Russia and it is involved in blocking further European sanctions on Moscow for its involvement in Ukraine crisis.
• The European parliament’s recognition of Hungary as electoral autocracy comes based reports from bodies belonging to the Council of Europe as well as case law from the EU’s court of justice and others.
• The verdict by the Organisation for Security and Cooperation in Europe (OSCE) was also cited for this conclusion.
• In April 2022, the OSCE held that Hungary’s election that returned Orban to power for the fourth consecutive term was tainted by the lack of level playing field.
• It had sent a full-fledged mission to Hungary, an almost unprecedented step for an EU member state.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3. INTERNATIONAL TREATY ON PLANT GENETIC RESOURCES FOR FOOD AND AGRICULTURE

THE CONTEXT: India to host 9th Session of Governing Body of the ITPGRFA in New Delhi.

THE EXPLANATION:

• The organization of 9th session of International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) will provide a common platform for all the participating countries to deliberate upon the pivotal issues related to the development, conservation and protection of Plant Genetic Resources for the benefit of farming community.
• The scientific exchange of technological advancement among the countries will help mitigate the adverse impacts of climate change and food security globally.
• The plant genetic resources available with different countries will act as base material for development of new varieties to ensure better quality and higher productivity of crops.
• The GB9 is being held under the theme “Celebrating the Guardians of Crop Diversity: Towards an Inclusive Post-2020 Global Biodiversity Framework”.
• The theme aims to acknowledge the contribution of the world’s small-holder farmers to the effective management of PGRFA.

About ITPGRFA:

• ITPGRFA is a legally binding comprehensive agreement adopted in November, 2001 at Rome during the 31st session of Food and Agriculture Organization of the United Nations.
• It entered into force on June 29, 2004 and currently has 149 Contracting Parties, including India.
• The treaty provides solutions to achieve food and nutritional security as well as climate resilient agriculture.
• Countries are inter-dependent for PGRFA and consequently a global order is essential to facilitate access and benefit sharing.

Relevance for India:

• India is endowed with rich crop genetic resources.
• It has successfully established legal, institutional and scholastic infrastructure to utilize the genetic diversity for breeding new varieties.
• With this unique status and as GB9 host, India is expected to play a crucial role in minimizing the dissonance between technology-rich developed and gene-rich developing countries to achieve functional resolutions on critical agenda items.
• The GB9 provides an excellent opportunity to convey the steadfast commitment of India to conservation and sustainable utilization of plant genetic diversity as well as farmers’ rights.

4. THE ANGAN 2022

THE CONTEXT: Recently a three-day international conference ANGAN 2022 is organized by Indo-Swiss Building Energy Efficiency Project (BEEP).

THE EXPLANATION:

• ANGAN 2022 (Augmenting Nature by Green Affordable New-habitat) is an international conference organized by Indo-Swiss Building Energy Efficiency Project (BEEP).
• It is organized based on the theme “Making the Zero-Carbon Transition in Buildings”.
• It is the second edition of the Augmenting Nature by Green Affordable New-habitat.
• Around 75 eminent speakers, representing more than 15 countries and international organizations, have come together to discuss ways to reduce carbon emission and improve energy efficiency in buildings.
• More than 500 delegates consisting of architects, engineers, builders, building material industries, teachers, students, researchers, central and state government officials are participating in this conference.
• Discussions were held on critical issues such as “Unlocking Finance for Low-Carbon Buildings and “Thermal Comfort and Climate Resilience in Residential buildings”.
• It had special session on “Women in the Resource Efficiency Conversation”.
• The purpose of this conference is to promote a healthy ecosystem as mentioned at the COP26 by Prime Minister on LiFE (Lifestyle And Environment) and Panchamrit, which aims to make India Net Zero by 2070.
• The conference promoted various low carbon products, technologies and innovations that can be used in the building sector.
• This conference-cum-exhibition event is expected to boost international and national strategic collaboration, partnership, network and information exchange for the creation of low carbon, energy efficient habitat.

BEEP

Indo-Swiss Building Energy Efficiency Project (BEEP) is a collaborative project between the Indian Government and the Swiss Government. The Bureau of Energy Efficiency (BEE), which comes under the Indian Government’s Ministry of Power, is providing the technical support for this project. It had helped formulate Eco-Niwas Samhita (energy conservation building code for residential buildings), designed around 50 buildings and trained more than 5,000 building sector professionals.

THE GOVERNMENT SCHEMES/INITIATIVES IN NEWS

5. E-BAAL NIDAN PORTAL REVAMPED

THE CONTEXT: The NCPCR has revamped the E-Baal Nidan portal to include more features that would ease the tasks of complainants as well as NCPCR and SCPCRs in dealing with the complaints.

THE EXPLANATION:

What is E-Baal Nidan Portal?

• “E-Baal Nidan” is an online complaint mechanism launched in 2015 to enable individuals to report violations committed against a child and track the progress of the redressal of the complaint in the Commission.
• The portal eases the process of making a complaint to the NCPCR and ensures transparency in the redressal process.
• It ensures a timely disposal of cases by the NCPCR.
• Currently, the NCPCR is providing access to all State Commission for Protection of Child Rights.
• It will be providing user IDs and passwords for the State Commissions to enable them to view complaints registered on the portal and take necessary steps as mandated by the law.
• The portal also provides an option to transfer the registered complaints from the NCPCR to the concerned State Commission.
• It also gives option of joint inquiry if the State Commission wants the NCPCR to be involved.
• The portal segregates complaints based their subject matters like juvenile justice, PSCSO, child labour, education etc.

NCPCR

The National Commission for Protection of Child Rights (NCPCR) is a statutory body of the Indian Government set up under Section 3 of the Commission for the Protection of Child Rights (CPCR) Act, 2005. Its purpose is to protect the child rights and other related matters in India. It is also involved in the monitoring of the implementation of Protection of Children from Sexual Offences (POCSO) Act, 2012; Juvenile Justice (Care and Protection of Children) Act, 2015 and Right to Free and Compulsory Education (RTE) Act, 2009. It is also involved in examining and reviewing the safeguards provided by and under any law for the protection of child rights and recommend ways to improve their implementation.

THE PRELIMS PERSPECTIVE

6. WORLD’S LARGEST MUSEUM OF HARAPPAN CULTURE IN RAKHIGARHI

THE CONTEXT: The world’s largest museum on Harappan culture is currently being set up in Rakhigarhi, Haryana.

THE EXPLANATION:

• The museum on Harappan culture in Rakhigarhi would showcase some 5,000-year-old artefacts belonging to the Indus Valley Civilization.
• This world class museum would display photographs depicting Rakhigarhi’s history.
• The museum, which is currently under construction, would give recognition to Rakhigarhi at the international and national levels and increase job opportunities for the local communities.
• A special zone is being created in the museum for children to make them aware of the history in a recreational manner.
• The museum would also house an open-air theatre and a library.

About Rakhigarhi

• The village of Rakhigarhi was part of the Indus Valley Civilization from 2600 to 1900 BC. The two villages Rakhi Khas and Rakhi Shahpur currently host the archeological remains of the Indus Valley site. It was excavated for the first time in 1969. It is currently the largest settlement of the Indus Valley Civilization.
• Since 1998, 56 skeletons have been discovered in the site. Among them, two women were found in mound number 7. They are estimated to be 7,000 years old.
• The presence of shell bangles in the site provides evidence of trade links to faraway places such as Afghanistan, Baluchistan, Gujarat and Rajasthan. Jewelry trade is among the most prominent in this site. People in this civilization are known to melt precious metals like copper, carnelian, agate and gold to make garlands of beads.

Development of 5 Iconic Sites

During the Union Budget 2020, the Central Government announced the development of five iconic sites – Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh), Shiva sagar (Assam), Dholavira (Gujarat) and Adichanallur (Tamil Nadu). Museums will be developed in these sites with a total outlay of Rs.2,500 crore.

THE CONTEXT: The Supreme Court judgement recently held protected land in Aravalli ranges as forests, guarding it against non-forest use. This article will analyse the implications of this judgement from the UPSC perspective.

BASICS ABOUT THE ARAVALLIS

LOCATION & FORMATION

• They stretch for a distance of about 720 km from Himmatnagar in Gujarat to Delhi, spanning Haryana, Rajasthan, Gujarat, and Delhi.
• The Aravallis date back to millions of years when a pre-Indian subcontinent collided with the mainland Eurasian Plate.
• The Aravallis of Northwestern India, one of the oldest fold mountains of the world, now form residual mountains with an elevation of 300m to 900m. Guru Shikhar Peak on Mount Abu is the highest peak in the Aravalli Range (1,722 m).
• It has been formed primarily of folded crust when two convergent plates move towards each other by the process called orogenic movement.

SIGNIFICANCE OF THE ARAVALLIS

ACTING AS A GREEN BARRIER

• The Aravallis act as a barrier between the fertile plains in the east and the sandy desert in the west.
• Historically, it is said that the Aravalli range checked the spread of the Thar desert towards the Indo-Gangetic plains, serving as a catchment of rivers and plains.

INFLUENCING CLIMATE & RAINFALL

• During monsoons, it forms a parallel wall to monsoon clouds moving eastwards, thus helping nurture the sub-Himalayan rivers and feeding the north Indian plains.
• In the winter months, it protects the fertile alluvial river valleys from the cold westerly winds from Central Asia.

HABITAT FOR DIVERSITY

• The Aravallis provides habitat to 300 native plant species, 120 bird species and many exclusive animals like the jackal and mongoose.

PROVIDING BREATHING SPACE

• This Aravalli range is considered the “lungs” for the polluted air of Delhi–National Capital Region (NCR).
• For Haryana, having the lowest forest cover at around 3.59% of the total forest cover in India, the Aravalli range is the only saving grace, providing the major portion of its forest cover (2017 Forest Survey Report).

PROTECTING THE ARAVALLIS: OFFICIAL DEVELOPMENTS & RULINGS

OFFICIAL DEFINITION OF THE ARAVALLIS `ARAVALLI NOTIFICATION’ (1992)

• In 1992, to protect the ecologically sensitive Aravallis, the ministry of environment and forests (MOEFCC) introduced what is colloquially called the Aravalli notification.
• It says that apart from reserved forests or places already classified as `forest’ in government records, areas categorised as gair mumkin pahar (uncultivable hill), gair mumkin rada (foothills, pastures), gair mumkin be hed (ravined foothills), Banjar beed (cultivable grassy foothills) and round (rocky areas between two hills) will be treated as Aravallis.
• The same status is also to be given now to any land classified under sections 4 and 5 of the Punjab Land Preservation Act. All such areas in NCR will be protected and identified as Aravallis; the MoEFCC has told the green court.
• The immediate implication is that it extends a protective cover to large swathes of land in NCR, especially in Gurgaon and Faridabad.
• Before this notification, the Haryana government claimed that the status of such land was not yet been decided, leaving them open to real estate projects. Before this, the Aravali notification was applicable only to Gurgaon and Alwar (Rajasthan).

EVOLUTION OF THE ARAVALLI ISSUE

IMPORTANT SUPREME COURT JUDGEMENTS

TN GODAVARMAN THIRUMULPAD ‘VS UNION OF INDIA (1996)

• Clarified definition of the forest: ‘Forest’ must be understood according to its ‘dictionary meaning’. The ‘SC asks states to identify accordingly.
• COMPLIANCE: Haryana hasn’t identified areas that fulfil the dictionary meaning of forest.

MC MEHTA VS UNION OF INDIA & OTHERS (2002)

• Ban on groundwater extraction and mining: The SC bans drawing groundwater in ‘an area within 5km radius of Delhi border on Haryana side
• and in the Aravalli hills. Also, mining in 448 sq km area of Aravallis in Faridabad, Gurgaon and Mewat.
• COMPLIANCE: Borewells are still active. Mining has reduced but not stopped altogether.

LAFARGE CASE (2011)

• The SC directs all states to complete the process of identifying forests.
• COMPLIANCE: Haryana has Not initiated the process yet.

ANSAL CASE (2012)

• Any change in revenue records to sell land invalid: Some areas recorded as ‘gair mumkin pahar’ were converted to ‘gair mumkin farmhouse’.
• The SC says these are not to be accepted

2018 KANT ENCLAVE CASE

• The SC said that area notified under PLPA in Haryana must be treated as ‘forest’ and ‘forest land’. The judgment regarding construction in the Aravalli hills of Haryana holds serious implications for the ongoing litigations and preservation of the entire Aravallis in Haryana.
• COMPLIANCE: The Haryana Assembly passed the controversial Punjab Land Preservation (Haryana Amendment) Act, 2019, which opens up nearly 30,000 hectares of protected land for development.

2022 JUDGEMENT BY SC

• The Supreme Court held that all land covered by the special orders issued under Section 4 of the Punjab Land Preservation Act (PLPA) in Haryana would be treated as forests and be entitled to protection under the 1980 Forest Conservation Act.
• Such land covered under Section 4 can see no commercial activity or non-forest use without the consent of the central government.
• It also stated that land covered by the special orders issued under Section 4 of PLPA has all the trappings of forest lands within the meaning of Section 2 of the Forest Act.
• The court directed the state government to clear any non-forest activity from such land in three months and report compliance.
• The bench considered a September 2018 judgment (Kant Enclave case) which held all land under PLPA could be treated as forest.
• The recent verdict clarified that the previous judgment failed to closely examine the scheme of Section 4 of PLPA and its legal effect in relation to Section 2 of the Forest Act.

SECTION 4 OF PLPA & SECTION 2 OF FOREST ACT: THE CAUSES OF CONCERN

Section 4 of the Punjab Land Preservation Act (PLPA):

• Special orders under Section 4 of PLPA are the restrictive provisions issued by the state government to prevent deforestation of a specified area that could lead to soil erosion.
• When the state government is satisfied that deforestation of a forest area forming part of a larger area is likely to lead to erosion of soil, the power under Section 4 can be exercised.
• Therefore, the specific land which a special order under Section 4 of PLPA has been issued will have all the trappings of a forest governed by the Forest Act.
• While the land notified under the special orders of Section 4 of PLPA shall be forest lands, not all land under PLPA will ipso facto become forest lands within the meaning of the Forest Act.

Section 2 of the Forest Act:

• Section 2 of the Forest Act imposes prohibitions on the de-reservation of forests or use of forest land for non-forest purposes without prior approval of the central government.
• Once land is covered under Section 2 of the Forest Act, whether the special orders under Section 4 continue to be in force or not, it shall continue to remain forest land.

Plans to override SC judgements: Analysing Government Steps

• Environmentalists fear the ruling may fast-track amendments to Forest (Conservation) Act (FCA), 1980. The amendments are likely to be tabled in the ongoing monsoon session of Parliament as the Forest (Conservation) Amendment Bill, 2022.
• As per FCA, activities like the felling of trees or activities like construction, mining and others are considered non-forest use. However, there is no clarity on whether afforestation or planting trees is a forest activity or a non-forest activity.
• The amendment bill aims to clarify the applicability of the Act in various types of land and to streamline the process of approvals. Changing forest conservation rules regarding clearance to projects and ease of business will have major ramifications.
• The forest Act draft proposed in 2021 wanted to remove the forest labels for a deemed wasteland or private forests.
• Under the new amendments, permissions will be granted by the state government instead of the Gram Sabhas. The government’s plan to create land banks by scrapping non-forest areas is just a step away from handing it over to commercial entities.
• While many ‘forests’ are proposed to be de-notified, Gram Sabhas and local communities are not being empowered to protect their rights.

THE WAY FORWARD

• Adhering to SC’s directives: Mining in the Aravalli region has been banned since 2002 under the Supreme Court orders unless expressly permitted by the Union Environment Ministry. However, mining continues illegally. The government should, thus, take immediate steps to follow SC’s directive regarding mining as well as encroachments, as mentioned in its other judgements.
• The Centre is contemplating an ambitious plan to create a 1,400km long and 5km wide green belt from Gujarat to the Delhi-Haryana border. Such projects need to be further upheld and supported by the states sharing the Aravalli ecology.
• There must be increased devolution of decision-making powers to gram sabhas.

THE CONCLUSION: The ethical dilemma of choosing between preserving the environment and the economic growth of the country is persistent for a developing nation like ours. For this, the policymakers must take into consideration the Constitutional morality, the commitments to Sustainable Development goals and the effective consensus of the local community for sustainable and inclusive policy formulations.

QUESTIONS TO PONDER

• “The ethical dilemma of choosing between preserving the environment and economic growth of the country is a persistent issue.” In the light of the statement, analyse the recent ruling of the Supreme Court, which considered protected land in Aravalli ranges as ‘forests.’

THE GEOGRAPHY: CLIMATOLOGY

1. ‘TRIPLE DIP’ LA NINA AND ITS IMPACT ON INDIA’S MONSOON

THE CONTEXT: Recently, the Australian Bureau of Meteorology confirmed the occurrence of La Niña phenomenon for the third consecutive year in the Pacific Ocean.
THE EXPLANATION:
• The World Meteorological Organisation (WMO) on August 31 had stated that the oceanic and atmospheric phenomenon would last until at least the end of the year, and for the first time this century, span three consecutive northern hemisphere winters to become a ‘triple dip’ La Nina.
• The WMO predicted that the current La Nina, which began in September 2020, would continue for six months, with a 70 per cent chance of lasting till September-November 2022, and 55 per cent chance of lasting till December-February 2022/2023.

What are El Nino and La Nina?
• El Nino and La Nina, which mean ‘the boy’ and ‘the girl’ in Spanish, are mutually opposite phenomena, during which an abnormal warming or cooling of sea surface temperatures is observed in the Pacific Ocean along the equator, off the coast of South America. Together they constitute what is known as the El Niño-Southern Oscillation system, or ENSO for short.
• ENSO conditions can alter both temperatures and rainfall globally, due to their strong interference on global atmospheric circulations.
• It is a recurring phenomenon and the change in temperature is accompanied by changes in the patterns of upper and lower level winds, sea level pressure, and tropical rainfall across the Pacific Basin.
• Normally, El Nino and La Nina occur every four to five years. El Nino is more frequent than La Nina.

How does La Nina impact India’s monsoon?
• El Niño years in India have witnessed extreme heat and below normal rainfall levels during monsoon, even though El Niño might not be the only factor or even have direct links to them. In 2014, a El Niño year, India received 12 per cent deficient rainfall from June to September.
• On the other hand, La Nina years are known to favour the Indian summer monsoon. This year, India has received 740.3 mm of rainfall, quantitatively 7 per cent higher than the seasonal average till August 30. Among the 36 states and union territories, 30 have received rainfall that is categorised as either ‘normal,’ ‘excess’ or ‘large excess.’
• Uttar Pradesh, Manipur (-44 per cent each), and Bihar (-39 per cent), however, remain the worst affected states this season.

La Nina conditions and cyclone formation
• Intense hurricanes and cyclones have frequently occurred in the Atlantic Ocean and the Bay of Bengal during La Nina years.
• Over the North Indian Ocean as well, the chances of an increased number of cyclones are due to multiple contributing factors, including high relative moisture and relatively low wind shear over the Bay of Bengal.

THE HEALTH ISSUES

2. NEW RESEARCH: COVID-19 INCREASES ALZHEIMER’S RISK IN OLDER ADULTS

THE CONTEXT: The researchers, recently published their findings in the Journal of Alzheimer’s Disease found that people aged 65 and above who developed Covid-19 were at a 50-80% higher risk of developing Alzheimer’s, expanding upon the little we currently know about the long-term consequences of the pandemic.
THE EXPLANATION:
• Older adults who were once infected with Covid-19 are at a much higher risk of developing Alzheimer’s disease within a year, with women above the age of 85 occupying the highest risk group, a new study of more than 6 million patients has found.
• However, the researchers have maintained that it is unclear “whether Covid-19 might trigger new onset of Alzheimer’s disease or accelerate its emergence.”
• The research team analysed the anonymous electronic health records of 6.2 million people who were 65 and older in the US, and who had visited healthcare organisations between February 2020 and May 2021. Those studied had not been previously diagnosed with Alzheimer’s.
• They were then divided into two groups: one composed of people who had contracted Covid-19 during the period of study, and another group which had no documented cases of the infectious disease. There were more than 400,000 people enrolled in the Covid-19 study group, while the non-infected group contained 5.8 million people.
• The findings indicated that over the one-year period following the infection, older adults in the Covid-19 cohort faced a risk of 0.68%, nearly double that of the non-Covid-19 cohort, which faced a risk of 0.35%.

ABOUT ALZHEIMER DISEASE:
What is Alzheimer’s disease?
• It is the most common type of dementia.
Discovery:
• The disease was discovered after Dr Alois Alzheimer examined a memory-loss patient’s brain after her death in 1906 and found abnormal clumps (beta-amyloid plaque) and bundles of fibres (neurofibrillary tangles).
• It is a progressive disease beginning with mild memory loss and possibly leading to loss of the ability to carry on a conversation and respond to the environment.
• It involves parts of the brain that control thought, memory, and language.
• It can seriously affect a person’s ability to carry out daily activities.

What is the India scenario?
• In India, only 1 in 10 people with dementia receive any diagnosis, treatment or care for the disease, according to the World Alzheimer’s Report, 2021.

THE INTERNATIONAL RELATIONS

3. THE EASTERN ECONOMIC FORUM AND INDIA’S BALANCING ACT

THE CONTEXT: Recently, Russia hosted the seventh Eastern Economic Forum (EEF) Vladivostok from September 5 to 8 2022. The four-day forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).
THE EXPLANATION:

What is the Eastern Economic Forum?
The EEF was established in 2015 to encourage foreign investments in the RFE. The EEF displays the economic potential, suitable business conditions and investment opportunities in the region. Agreements signed at the EEF increased from 217 in 2017 to 380 agreements in 2021, worth 3.6 trillion roubles. As of 2022, almost 2,729 investment projects are being planned in the region. The agreements focus on infrastructure, transportation projects, mineral excavations, construction, industry and agriculture.

Who are the major actors in the Forum? What are their interests?
• This year, the Forum aimed at connecting the Far East with the Asia Pacific region. China is the biggest investor in the region as it sees potential in promoting the Chinese Belt and Road Initiative and the Polar Sea Route in the RFE.
• China’s investments in the region account for 90% of the total investments. Russia has been welcoming Chinese investments since 2015; more now than ever due to the economic pressures caused by the war in Ukraine.
• The Trans-Siberian Railway has further helped Russia and China in advancing trade ties. The countries share a 4000-kilometer-long border, which enables them to tap into each other’s resources with some infrastructural assistance. China is also looking to develop its Heilongjiang province which connects with the RFE.
• Besides China, South Korea has also been gradually increasing its investments in the region. South Korea has invested in shipbuilding projects, manufacturing of electrical equipment, gas-liquefying plants, agricultural production and fisheries. In 2017, the Export-Import Bank of Korea and the Far East Development Fund announced their intention to inject $2 billion in the RFE in a span of three years.
• Japan is another key trading partner in the Far East. In 2017, Japanese investments through 21 projects amounted to $16 billion. Under Shinzo Abe’s leadership, Japan identified eight areas of economic cooperation and pushed private businesses to invest in the development of the RFE. Japan seeks to depend on Russian oil and gas resources after the 2011 meltdown in Fukushima which led the government to pull out of nuclear energy.
• Japan also sees a market for its agro-technologies which have the potential to flourish in the RFE, given similar climatic conditions. However, the momentum of trade that existed with Shinzo Abe was lost with the leadership of Yoshihide Suga and Fumio Kishida. The trade ties between Japan and Russia are hindered by the Kuril Islands dispute as they are claimed by both countries.
• India seeks to expand its influence in the RFE. During the forum, Prime Minister expressed the country’s readiness in expanding trade, connectivity and investments in Russia. India is keen to deepen its cooperation in energy, pharmaceuticals, maritime connectivity, healthcare, tourism, the diamond industry and the Arctic.
• In 2019, India also offered a $1 billion line of credit to develop infrastructure in the region. Through the EEF, India aims to establish a strong inter-state interaction with Russia. Business representatives of Gujarat and the Republic of Sakha have launched agreements in the diamond and pharmaceuticals industry.

Will India be able to achieve a balance between the EEF and the Indo-Pacific Economic Framework for Prosperity (IPEF)?
• The U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) and the EEF are incomparable based on its geographic coverage and the partnership with the host-countries. India has vested interests in both the forums and has worked towards balancing its involvement. India has not shied away from investing in the Russia-initiated EEF despite the current international conditions.
• At the same time, India has given its confirmation and acceptance to three of the four pillars in the IPEF. The country understands the benefits of being involved in the development in the RFE but it also perceives the IPEF as a vital platform to strengthen its presence in the Indo-Pacific region. The IPEF also presents an ideal opportunity for India to act in the region, without being part of the China-led Regional Comprehensive Economic Partnership or other regional grouping like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
• The IPEF will also play a key role in building resilient supply chains. India’s participation in the forum will help in disengaging from supply chains that are dependent on China and will also make it a part of the global supply chain network. Additionally, the IPEF partners will act as new sources of raw material and other essential products, further reducing India’s reliance on China for raw materials. Although, the Indian Prime Minister has refrained from full participation in the trade pillar of the IPEF, it does not signify an end to India’s role in the forum.

4. THE AZERBAIJAN-ARMENIA BORDER CLASHES, AND THE RISING FEAR OF ANOTHER WAR

THE CONTEXT: Recently, Dozens of Armenian and Azerbaijani soldiers have reportedly been killed in renewed border clashes between Armenia and Azerbaijan, in the worst round of hostilities since 2020.
THE EXPLANATION:
After several hours of fighting, the Armenian government appealed to world leaders for help, saying that Azerbaijani forces were trying to advance into its territory. The conflict is decades old with its repercussions potentially engulfing all of the Caucasus.

About the Conflict
• Protestors are demanding the resignation of Prime Minister (PM) Nikol Pashinyan and are taking the means of strike like, chanting anti-government slogans, blocking metro from moving etc.
• Location: Nagorno-Karabakh is a mountainous and heavily forested region that under international law is recognised as part of Azerbaijan.

Latest developments:
• Armenia has been witnessing domestic unrest since April this year related to Pashniyan’s handling of the Nagorno-Karabakh conflict.
• There have been plans to oust their government or at least increase street pressure to prevent the PM from providing further concessions to Azerbaijan and Turkey when it comes to the security and right of self-determination of Armenians of Nagorno-Karabakh (called Artsakh) and the recognition of Armenian Genocide.

Criticism against Armenian PM:
• In Armenia, Pashinyan’s handling of the Nagorno-Karabakh conflict received criticism after he agreed to hand over Armenian control of several territories to Azerbaijan.
• Pashinyan increased the salaries of the country’s security forces, in an attempt to win their loyalty.
• The ongoing protests in Armenia have been marked by police brutality and the detaining of protestors, activists as well as Parliament members.
• Pashinyan’s stance on Nagorno-Karabakh: There has been a clear shift in Pashinyan’s views on Nagorno-Karabakh post May 2018, when he was elected leader of Armenia. Much of Pashinyan’s rhetoric was aimed at winning nationalist support.

Challenges of Nagorno-Karabakh conflict
• In this disputed region, there are hundreds of civilian settlements, residents of which would be directly impacted and potentially displaced if any large-scale war were to break out between the two countries.
• Any military escalation would draw regional powers like Turkey and Russia more deeply into the conflict.
• The energy-rich Azerbaijan has built several gas and oil pipelines across the Caucasus (the region between the Black Sea and the Caspian Sea) to Turkey and Europe.
• This includes the Baku-Tbilisi-Ceyhan oil pipeline (with a capacity of transporting 1.2 billion barrels a day), the Western Route Export oil pipeline, the Trans-Anatolian gas pipeline and the South Caucasus gas pipeline.
• Some of these pipelines pass close to the conflict zone (within 16 km of the border) and in an open war between the two countries, the pipelines could be targeted, which would impact energy supplies.
• For both nations, these would create immediate challenges and war would not be in the interest of both countries.

5. NORTH KOREA’S NEW ‘IRREVERSIBLE’ LAW ON NUCLEAR ARMS USE

THE CONTEXT: North Korea has recently passed a law enshrining the right to ‘automatically’ use preemptive nuclear strikes to protect itself. According to North Korea’s state media, leader Kim Jong Un has said this new law makes the country’s nuclear status ‘irreversible’ and bars any talks of denuclearization.
THE EXPLANATION:
• North Korea’s parliament passed the legislation replacing a 2013 law that had first outlined the country’s nuclear status.
• The KCNA quoted Kim as addressing the assembly: “The utmost significance of legislating nuclear weapons policy is to draw an irretrievable line so that there can be no bargaining over our nuclear weapons.”

Why has North Korea taken this step?
• This move comes as Pyongyang is seemingly preparing to resume nuclear testing for the first time since 2017, according to the Reuters report, after summits with former US President and other diplomatic meetings failed to persuade North Korea to abandon nuclear weapons development.

What is the new law?
• North Korea’s new law is important because, very simply, it authorises preemptive nuclear strikes. That means this law could be implemented if Pyongyang thinks there is an impending nuclear attack or if Pyongyang believes that its state’s existence faced threats or the command organisation of its nuclear forces were threatened.
• According to a Reuters report, the last point may be a “reference to South Korea’s ‘Kill Chain’ strategy, which calls for preemptively striking North Korea’s nuclear infrastructure and command system if an imminent attack is suspected.
• The report states that under the provisions of this new law, Kim has “all decisive powers” over nuclear weapons, but in case that command-and-control system were to be threatened, then nuclear weapons may be launched “automatically”.
• The law also bans the sharing of nuclear arms or technology with other countries, and is aimed at reducing the danger of a nuclear war by preventing miscalculations among nuclear weapons states and misuse of nuclear weapons.

How have others responded?
• Over the past few months, North Korea’s rhetoric has been increasingly critical of the US and its allies. In the past year, Pyongyang has carried out more than 30 long-range missile tests, involving ballistic missiles, cruise missiles and hypersonic missiles.
• According to data reported Russia’s Foreign Ministry as saying it was “closely monitoring” military activity on the Korean peninsula. While not addressing the new law, China’s Foreign Ministry said the country’s position on the Korean peninsula “had not changed”, which is denuclearization of North Korea.

THE GOVERNMENT SCHEMES IN NEWS

6. TAMIL NADU’S NEW BREAKFAST SCHEME IN SCHOOLS

THE CONTEXT: Tamil Nadu Chief Minister at the Madurai Corporation Primary School at Madurai, launched the Chief Minister’s Breakfast Scheme for students of Class I to V in government schools.
THE EXPLANATION:
The scheme covers around 1.14 lakh students in 1,545 schools which include 417 municipal corporation schools, 163 municipality schools and 728 taluk and village panchayat-level schools. A sum of ₹33.56 crore has been set apart for the scheme. The inauguration of the scheme marks an important milestone in the State’s history of providing free meals to school students.

How has the idea evolved?
• In November 1920, the Madras (now Chennai) Corporation Council approved a proposal for providing tiffin to the students of a Corporation School at Thousand Lights at a cost not exceeding one anna per student per day. P. Theagaraya Chetty, the then President of the Corporation (the modern-day equivalent of Mayor) and one of the stalwarts of the Justice Party, said the boys studying at the school were poor, which affected the strength of the institution ‘greatly’. The scheme, which was extended to four more schools and facilitated higher enrollment of students, suffered a setback in 1925 when the British government disallowed the expenditure on the supply of mid-day meals to students from the Elementary Education Fund. It was revived two years later, benefitting around 1,000 poor students in 25 schools.
• The concept saw a State-wide application in 1956 when the then Chief Minister K. Kamaraj decided to provide free noon meal to poor children in all primary schools across the State. The Budget for 1956-57 contained a provision for supplying mid-day meals to schoolchildren for 200 days a year, initially covering 65,000 students in 1,300 feeding centres.
• In July 1982, it was left to the then Chief Minister M. G. Ramachandran to extend the programme to children in the 2-5 age group in Anganwadis and those in 5-9 age group in primary schools in rural areas. Subsequently, the scheme — now called Puratchi Thalaivar M.G.R. Nutritious Meal Programme — was extended to urban areas as well. Since September 1984, students of standards VI to X have been covered under the scheme.
• Over the years, there have been improvements to the programme. M. Karunanidhi, as Chief Minister during the short-lived Dravida Munnetra Kazhagam Ministry (1989-91), introduced the provision of boiled eggs once every fortnight, starting June 1989. His successor, Jayalalithaa, in March 2013, extended the scheme by including variety meals along with masala eggs as per the children’s choice.

What are the number of beneficiaries of the programme?
• As of now, there are nearly 46.7 lakh beneficiaries spread over 43,190 nutritious meal centres. This includes around 3,500 students of National Child Labour Project (NCLP) special schools. The State budget for 2022-23 has provided around ₹2,077 crore for the nutritious meal programme.
• Besides, as a consequence of the collaborative implementation of the Integrated Child Development Scheme (ICDS) and the nutritious meal programme, around 15.8 lakh children in the age group of 2+ to 5+ years receive nutritious meals.

What was the impact of the mid-day meal scheme on school education ?
• After the improved version of the mid-day meal scheme in 1982, the Gross Enrollment Ratio (GER) at primary level (standards I to V) went up by 10% during July-September, 1982 as compared to the corresponding period in 1981.
• The rise in boys’ enrollment was 12% and in the case of girls, 7%, according to a publication brought out by the Tamil Nadu government on the occasion of the launch of the Chief Minister’s Breakfast Scheme.
• Likewise, attendance during July-September 1982 rose by 33% over the previous year’s figure.
• Kamaraj – An Era (2008), a biography authored by senior Congress functionary A. Gopanna, states that after the inauguration of the mid-day meal scheme in 1956, the number of primary schools went up from 15,800 in 1957 to 29,000 in 1962.

Where should the programme focus more?
• Anaemia is a major health problem in Tamil Nadu, especially among women and children, says the 2019-21 National Family Health Survey (NFHS)-5’s report. From 50% during the period of the 2015-16 NFHS-4, the prevalence of anaemia in children now went up to 57%. This and many other health issues can be addressed through the combined efforts of the departments of School Education, Public Health and Social Welfare and Women Empowerment.
• Based on expert advice, those in charge of the implementation of the ICDS and the nutritious meal programme can enhance the component of nutrition to those children having specific problems. The latest Breakfast Scheme is a step in this direction.
• Besides, a continuous and rigorous review of the progress of the scheme and nutritious meal programme should be carried out in a sustained manner.

[WpProQuiz 334]

THE CONTEXT: The Reserve Bank of India has recently introduced a mechanism to facilitate international trade in rupees. Now the import and export payments may be settled through a special Vostro account, while banks, with prior approval from the RBI, can act as authorised dealers for such transactions. This article intends to analyze the implications of rupee internationalization from the UPSC perspective.

INTERNATIONALIZATION OF RUPEE: UNDERSTANDING BASICS

DEFINING CURRENCY INTERNATIONALIZATION

• Currency internationalization is the widespread use of a currency outside the borders of its original country of issue.
• The level of currency internationalization for a currency is determined by the demand that users in other countries have for that currency.
• This demand can be driven by the use of the currency to settle international trade, to be held as a reserve currency or a safe-haven currency, or in general use as a medium of indirect exchange in other countries’ domestic economies via currency substitution.

ORIGIN OF THE DEBATE

OUTBREAK OF GLOBAL FINANCIAL CRISIS (GFC) OF 2008

• The global financial crisis (GFC) of 2008, for a variety of complex reasons, prompted emerging markets (EMs) to reconsider the role of their currencies as global alternatives to the “big four” currencies (US dollar, Yen, Euro, Pound).
• The outbreak of the GFC and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system.
• This was an indirect assertion that the US was taking advantage of the reserve currency status of the US dollar and dollar liquidity shortages were a real problem for EMs during the GFC.

EMERGENCE OF THE RENMINBI

• China in response, embarked on an ambitious project of “Renminbi internationalization” with the coupled goals of international monetary reform and diversification of global currency risk through internationalizing its currency.

IMPLICATIONS ON INDIAN RUPEE

• China’s policy pivot prompted policymakers in India to consider the possibility of internationalizing the Indian Rupee (INR). The Reserve Bank of India (RBI) commissioned two studies in 2010 and 2011 (Ranjan and Prakash, 2010; Gopinath, 2011) to examine the issues surrounding the internationalization of the INR.
• Both studies recommended a cautious approach towards currency internationalization given the size of the Indian GDP, lower presence in global trade and partial capital account convertibility.
• They also added that while the Rupee is a natural contender for transitioning into a global currency, policymakers should start by increasing the role of the INR in its local region, where the Renminbi has taken the lead over the Rupee.
• In spite of an early interest in pursuing a policy of currency internationalization, both the Indian government and the RBI do not consider it to be a priority in the short to medium term.

LATEST DEVELOPMENT

• The recent push of RBI for rupee internationalization is a great step in the right direction, considering the limitation for using the US dollar as a medium of international transactions, especially with counties under sanctions.
• This would also help reduce exchange rate risk on traders and pressure on the Indian rupees.

PROCESS OF INTERNATIONALIZATION OF A CURRENCY

There are certain necessary preconditions which are as follows:

• The government must remove all restrictions on the freedom of any entity, domestic or foreign, to buy or sell its country’s currency, whether in the spot or forward market.
• Domestic firms are able to invoice some, if not all, of their exports in their country’s currency, and foreign firms are likewise able to invoice their exports in that country’s currency, whether to the country itself or to third countries.
• Foreign firms, financial institutions, official institutions and individuals are able to hold the country’s currency and financial instruments denominated in it in amounts that they deem useful and prudent.
• Foreign firms and financial institutions, including official institutions, are able to issue marketable instruments in the country’s currency.
• The issuing country’s own financial institutions and non-financial firms are able to issue on foreign markets instruments denominated in their country’s own currency.
• International financial institutions, such as the World Bank and regional development banks, are able to issue debt instruments in a country’s market and use its currency in their financial operations.
• The currency may be included in the “currency baskets” of other countries, which they use in governing their own exchange rate policies.

ANALYZING RUPEE INTERNATIONALIZATION

CHALLENGES FOR INDIA: CRITICAL ANALYSIS

ATTAINING SUFFICIENT SCALE

• The issuing country must have sufficient scale, both in terms of nominal gross domestic product and volume of international transactions. For instance, while China is a $10.36 trillion economy, India is roughly at $2 trillion.
• For India to attain sufficient scale, the economy needs to grow at a sustainable average rate of 7-8% for the next five years or so. India’s current share of global trade is also relatively small, and the bulk of it is invoiced in US dollars.
• Improvements in scale are linked to macroeconomic fundamentals, which cannot be changed through an internationalization-driven agenda.

STABILITY OF THE RUPEE

• The value of the currency must be stable over time. A currency is considered stable when the general level of prices does not vary too much. Stability has multiple aspects: macroeconomic, financial and political.
• On macroeconomic stability, earlier this year, India undertook an important reform in the form of the Monetary Policy Framework Agreement that formally lays down inflation targeting as the objective of monetary policy in India. But recent high inflations showed limited outreach of MPC.
• The banking system continues to be overburdened with burgeoning non-performing assets.
• In terms of political stability, the fact that India is a democracy, like issuers of most international currencies in the 19th and 20th centuries, goes in its favour.

ENSURING LIQUIDITY OF THE RUPEE

• A currency is liquid if significant quantities of assets can be bought and sold in the currency without noticeably affecting its price.
• This requires depth in financial markets, a large stock of domestic currency-denominated bonds and adequate options to hedge currency risk exposures.
• India lacks a deep, liquid and well-functioning corporate bond market. Hedging opportunities for foreign investors are limited.
• India has one of the least open capital accounts among emerging economies. Relaxing capital controls to attract foreign investor participation is crucial for enhancing rupee liquidity.

THE WAY FORWARD

• The Reserve Bank of India (RBI) has made a strong case for the internationalization of the rupee and sought to differentiate it from capital account convertibility. According to RBI, countries that can borrow in their own currency are less susceptible to the international crisis.
• As the currency risks are born by the lenders and not by the borrowers back in India, this is always a safer option for the Indian economy; hence, it must be promoted.
• Democracy and associated checks and balances on the executive instil confidence in foreign investors about the policy credibility of the government, thereby imparting stability to the national currency. Thus, India can explore the option of controlled internationalization of the rupee.

THE CONCLUSION: Any possibility of conversation on rupee internationalization must be backed by a sustained and stable position of the Indian Rupee. Scale, stability and liquidity can be achieved through strong economic fundamentals and a process-driven regulatory environment. These, by themselves, are important policy goals to achieve for India. It is possible that once these are achieved, the rupee will come to be accepted as an international currency.

QUESTIONS TO PONDER

1. “Only if scale, stability and liquidity of Indian Rupee are achieved, will it be accepted as an international currency.” Examine critically in the light of the recent push by RBI for the internationalization of the rupee.

2. What do you understand by ‘internationalization of currency? Discuss the positives and negatives of the internationalization of the currency.

THE POLITY AND GOVERNANCE

1. THE INCLUSION OF TRIBES FROM 5 STATES IN ST CATEGORY

THE CONTEXT: The Union Cabinet chaired by Prime Minister recently gave nod for the inclusion of tribes of five states in the Scheduled Tribes (ST) category.
THE EXPLANATION:
• The Union Cabinet has approved the inclusion of tribes from Chhattisgarh, Himachal Pradesh, Tamil Nadu, Karnataka, and Uttar Pradesh in the ST category.
• It has included 12 communities to the ST list.
• Among them is the Hattee Community living in the Trans-Giri region in Sirmaur district of Himachal Pradesh.
• This community is named based on its traditional occupation of selling home-grown crops, vegetables, meat and wool at small-town markets called haats.
• It has been demanding ST status since 1967, when the status was granted to people living in Jaunsar Bawar area in Uttarakhand, which shares a border with the Sirmaur district.
• Other communities that were recently granted ST status were Gond along with their five sub-castes in Bhadohi District of Uttar Pradesh, Betta-Kuruba community in Karnataka, Binjhia in Chhattisgarh and Narikuravan and Kuruvikaran in Tamil Nadu.
• The Narikuravans and Kuruvikarans in Tamil Nadu have been demanding ST status since 1965 based the recommendations by the Lokur Panel. They were earlier recognized as the Most Backward Community.
• This community is mostly involved in traditional occupation of hunter-gathering and selling of bead necklaces.
• The Union Cabinet has included the Betta-Kuruba community as synonym of “Kadu Kuruba” in the ST list.
• Betta-Kuruba tribe in Karnataka’s Chamarajanagar, Kodagu and Mysuru districts have been demanding ST status for the past 3 decades but have not been granted because of spelling errors and similar sounding names.
• The newly listed communities in the ST list would benefit from existing schemes targeting the Scheduled Tribes in the country.
• Some of these benefits include post-matric scholarship, overseas scholarship and the national fellowship, concessional loans from the National Scheduled Tribes Finance and Development Corporation, and hostels for students.
• Members of these communities would also benefit from reservations in services and admissions in educational institutions.

2. UP BUILDS HIGHEST NUMBER OF AMRIT SAROVARS

THE CONTEXT: Recently, Uttar Pradesh has constructed largest number of lakes under the Indian Government’s ambitious Mission Amrit Sarovar.
THE EXPLANATION:
• Uttar Pradesh has constructed 8,462 Amrit Sarovars (lakes) under the Modi Government’s ambitious Mission Amrit Sarovar, which aims to conserve water for the future generation.
• The other top performers under this mission are Madhya Pradesh (1,668 lakes), Jammu and Kashmir (1,458 lakes), Rajasthan (898 lakes) and Tamil Nadu (818 lakes).
• Within Uttar Pradesh, Lakhimpur Kheri was the top performer with the construction of 256 Amrit Sarovars.
• This is followed by Pratapgarh (244 lakes) and Pratapgarh (231 lakes).
• Currently, Uttar Pradesh is planning to construct 1.20 lakh Amrit Sarovars.
• The state had developed 7,500 Amrit Sarovars as part of the Azadi Ka Amrit Mahotsav.
• Under the first phase of Mission Amrit Sarovar, the UP Government sought to develop 75 Amrit Sarovars in 75 districts of the state under the Mahatma Gandhi National Rural Employment Guarantee Scheme.
• This goal was completed ahead of the schedule.
• In the second phase, the government is planning to develop a minimum of 2 Amrit Sarovars in 58 gram panchayats, which is a total of about 1.20 lakh lakes.
• The large-scale construction of Amrit Sarovars is providing jobs for a large section of the rural population in the state and increased their income as well.
• It had minimised the irrigation issues faced by farmers in the state.
• Currently, the fully completed Amrit Sarovars are being used by farmers for fish farming as an additional source of income.
VALUE ADDITION:
Amrit Sarovar Mission
The Amrit Sarovar Mission was launched by the Indian Government on April 24, 2022 to promote water conservation by developing and rejuvenating water bodies in all districts across India. Under this initiative, 50,000 water bodies of the size of about an acre will be created. The overall mission is expected to be completed by August 15, 2023. Each of the Amrit Sarovar would be around 1 acre with 10,000 cubic meters of water capacity.

THE INTERNATIONAL RELATIONS

3. THE EXERCISE KAKADU 2022

THE CONTEXT: Recently,Exercise Kakadu 2022 commenced in Australia’s Darwin on September 12, 2022.

THE EXPLANATION:
• The Exercise Kakadu 2022 (KA22) is a multinational exercise hosted by the Australian Navy in Darwin – the capital of Australia’s Northern Territory.
• It will be held from September 12 to 24 this year by the Royal Australian Navy with the support from the Royal Australian Air Force.
• This two-week long biennial maritime exercise brings together around 3,000 personnel, 15 warships and more than 30 aircraft from 22 countries.
• The Indian Navy is being represented by INS Satpura and P8 I Maritime Patrol Aircraft.
• The theme of this international exercise is ‘partnership, leadership and friendship’.
• The inaugural edition of the Exercise Kakadu was held in 1993.
• Over the past 3 decades, countries that have participated in this exercise are Singapore, New Zealand, Thailand, Malaysia, Indonesia, Papua New Guinea, Philippines, Japan, South Korea, France, India, Pakistan, Brunei, Timor-Leste, Tonga, Hong Kong (UK), Canada, Bangladesh, Cambodia, Vietnam, Fiji, US, UAE, Cook Islands, Sri Lanka, Chile, China and Vanuatu.
• The KA22 kicked off less than a week after the conclusion of Exercise Pitch Black – a biennial exercise hosted by the Royal Australian Air Force (RAAF). It featured 100 aircraft and 2,500 military personnel from 17 countries.
• Exercise Pitch Black 2022 witnessed the largest international contingent for the first time, with the involvement of Canada, France, Germany, India, Indonesia, Japan, Malaysia, Netherlands, New Zealand, the Philippines, Republic of Korea, Singapore, Thailand, UAE, the UK, and the USA.
INS Satpura
INS Satpura is a Shivalik-class stealth multi-role frigate that has better stealth and land attack capabilities than the Talwar-class frigates. The stealth frigate was built at the Mazagon Dock Limited in Mumbai. It was inducted the Eastern Naval Command headquartered at Visakhapatnam, Andhra Pradesh.

THE ECONOMIC DEVELOPMENTS

4. THE NORWAY’S CENTRAL BANK DIGITAL CURRENCY

THE CONTEXT: Norway’s central bank – Norges Bank – recently hit a major milestone in its digital currency development efforts by releasing the open source code for the country’s CBDC sandbox based on the Ethereum technology.
THE EXPLANATION:
• Norway’s CBDC sandbox, which is accessible on GitHub, was created to provide user interface (UI) for engaging with the test network.
• It has features like minting, burning and transferring ERC-20 tokens.
• The current version of the open code is only accessible to people with necessary credentials.
• It does not support popular Ethereum wallet Meta Mask.
• The second phase of the project would involve making the source code accessible to the public.
• The sandbox has a unique frontend, necessary smart contracts and access controls and network monitoring tools such as BlockScout and Grafana.
• The frontend displays a filterable overview of the network transactions.
• The usage of Ethereum cryptocurrency system provided the basic infrastructure required for the creation, transfer and destruction of digital central bank money (DSP).
• In November last year, the Norges Bank released a working paper referring to possible CBDC designs, including those based on blockchains like Ethereum, Bitcoin and Bitcoin SV.
• One of the key issues faced by the bank was the interoperability while considering various technical solutions.
• The main objective of Norges Bank’s current testing is to study whether DSP is required to ensure that the payment system in Norwegian kroner is secure, efficient and attractive for the local population.
CBDCs
The Central Bank Digital Currencies (CBDCs) are an electronic form of central bank-backed fiat money. They work based on blockchain networks. However, they do not need to be on a blockchain. According to the International Monetary Fund (IMF), 97 countries or more than 50 per cent of all global central banks are developing CBDCs. Presently, only Nigeria and The Bahamans have fully launched the CBDCs.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. THE GLOBAL ENVIRONMENT FACILITY (GEF) SMALL GRANTS PROGRAM

THE CONTEXT: The Ministry of Environment of Environment, Forest and Climate Change (MoEFC), United Nations Development Programme (UNDP) and The Energy and Resources Institute (TERI) have jointly launched the Global Environment Facility Small Grants Programme.
THE EXPLANATION:
• The GEF Small Grants Programme provides financial and technical assistance to projects focusing on conserving and restoring environment while also enhancing the lives of local communities.
• 2022 marks the 7th operational phase of this programme.
• The grants under this programme are given to non-governmental organizations and other institutions working in specific landscapes.
• The aim of this project is to build local communities’ capacity to take collective action towards conserving the environment and achieving sustainable development.
• It focuses on three regions in India – highlands of the North East, Central semi-arid region and Indian coastal region.
• It would promote participatory landscape planning and management approach that would improve socio-ecological resilience through innovative livelihood opportunities.
• It seeks to strengthen community institutions to promote participatory governance and upscale successful community initiatives.
• It would also promote participatory monitoring and evaluation at the community level.
GEF Small Grants Programme
The GEF Small Grants Programme was launched for the first time in 1992 at the Rio Summit. It works based on the belief that global environment solutions would remain sustainable only if communities are actively involved in it and directly benefit from it. It works based on the principle “thinking globally, acting locally”. It aims to create a balance between human requirements and environment imperatives through community participation. Grants under this initiative are given to local citizens from the civil society organization sector, including non-governmental organizations, academic and scientific institutions, women groups, indigenous groups etc.

THE SCIENCE AND TECHNOLOGY

6. THE HUGHES-ISRO SATELLITE INTERNET SERVICE

THE CONTEXT: The Hughes Communications India (HCI) and ISRO has jointly launched India’s first high-throughput satellite (HTS) broadband service.
THE EXPLANATION:
• HCI – a joint venture company of US-based Hughes Network Systems and Indian telecom operator Bharati Airtel – launched the first high throughput satellite broadband internet service in India.
• This service would provide satellite internet to remote parts of India by using ISRO’s GSAT-11 and GSAT-29 satellites.
• ISRO launched the GSAT-11 and GSAT-29 in 2018 to provide higher bandwidth satellite connectivity to Indian clients in the space enterprise. The GSAT-11 is capable of providing up to 14 Gbps through satellite network.
• The newly launched HTS broadband service aims to provide high-speed broadband in regions that are inaccessible for terrestrial networks.
• For the past one year, this high-speed internet service was tested in several regions such as Jammu and Kashmir and Himachal Pradesh, which lack terrestrial connectivity because of challenges posed by terrains.
• The newly launched satellite internet service is capable of providing internet connectivity bandwidth of up to 100 Mbps – about 2GB data per day.
• It supports services such as Wi-Fi hotspots for community internet access, SD-WAN solutions, backhaul to extend mobile network reach and satellite internet for small businesses.
• The application of this satellite connectivity is currently limited to fringe markets such as remote locations.
• India currently does not have the market for very high bandwidth satellite internet in such regions and high bandwidth internet are already served by terrestrial network in other places that are having high demands for internet services.
• The Hughes’ HTS service already has clients like Reliance Jio, State Bank of India and others.
• Jio utilizes Hughes’ service for 4G backhaul to provide services to remote locations for its terrestrial telecom networks.
• SBI uses this satellite internet service for providing connectivity to remote bank branches and automated teller machine (ATM) outlets.
High-throughput satellite
High-throughput satellite (HTS) is a satellite connectivity that provides higher bandwidth, which increases the amount of data that can be transferred between a satellite and a ground station. A conventional satellite connectivity has low bandwidth and high latency of connectivity – time taken to transfer data between a sender and receiver. The HTS seeks to address this issue.

[WpProQuiz 333]

THE CONTEXT: Recently, the arresting of Alt news Journalist and before that, many arresting around the country raises questions that the content that are posted on social media is not following the community standard (as claimed by these platforms). Although many of these cases are controversial, the development is opined by certain experts to be a start to further elaboration of legislation and government control of these dynamic new media sectors. In this article, we will analyze whether these platforms should be regulated by the government.

RECENT CASES OF ARRESTING FOR SOCIAL MEDIA POSTS

• In June 2022, Altnews Journalist was arrested for a controversial post.
• A tailor in Udaipur was beheaded for a controversial post on the prophet Mohammad.
• for In June 2022, 18 persons from Saharanpur were arrested for social media post
• A man was arrested in Rajasthan’s Alwar for posting objectionable content with communal overtones on social media
• In Chhattisgarh, a 34-year-old was booked under Section 67(A) of the Information Technology Act, which deals with online obscenity.
• In Assam, two-person arrested for allegedly putting up derogatory social media posts.
• In Kerala, 149 cases were registered against several people for allegedly posting objectionable remarks.
• The cybercrime sleuths of Rachakonda arrested three persons for posting obscene content through fake social media accounts to harass known women and a girl.

All these raised the question of whether the government should regulate online content or should give it free hand.

CHALLENGED POSED BY SOCIAL MEDIA IN RECENT TIMES?

• Extreme content: It is one of the major causes of extremism in society. Recently beheading of a tailor in Udaipur shows how extreme content affects society.
• Hate Speech: In India, legal provisions around hate speech have been previously misused to target marginalized communities and dissenting voices. Numerous hate speech cases have been brought against individuals for posts they made on social networking websites.
• Rumour/ Fake news: It has been observed that in the recent cases of Mob lynching, fake news/Rumor about cattle theft/ Child kidnapping was the major cause. Misinformation about the COVID-19 pandemic has been on the rise in India since January 2020.
• Data Piracy: Cambridge Analytica case in 2018 and recent bank fraud raised the concern of data safety.
• Pornography: Pornography, Child pornography is a serious issue.
• Objectionable content: Objectionable content in different shows, especially in web series, has posed a serious challenge to society.

WHAT IS THE PRESENT REGULATION FOR ONLINE CONTENT?

Although there is no specific legislation in India, that deals with social media, and in maximum cases, it is self-regulated. Still, there are several provisions in the existing so-called cyber laws which can be used to seek redress in case of violation of any rights in cyberspace, the Internet and social media. The legislation and the relevant provisions are specifically enumerated as under:

1.The Information Technology Act, 2000

• Sections 65, 66, 66A, 6C, 66D, 66E, 66F, 67, 67A and 67B contain punishments for computer-related offences which can also be committed through social media.
• Section 69 of the Act grants power to the Central or a State Government to issue directions for monitoring of any information.
• Section 69A grants power to issue directions to block public access to any information.
• Section 69B grants power to issue directions to authorize any agency to monitor.
• Section 79 provides for the liability of the intermediary. An intermediary shall not be liable for any third-party information, data or communication link made available or hosted by him in the following cases-
• His function is limited to providing access to a communication system over which such information is transmitted, stored or hosted.
• He does not initiate, select the receiver and select the information contained in the transmission.
• He observes due diligence and other guidelines prescribed by the Central Government while discharging his duties.
• He has conspired, abetted, aided or induced by threats, promises or otherwise in the commission of the unlawful Act.
• He fails to expeditiously remove or disable access to the material which is being used to commit the unlawful Act upon receiving actual knowledge or on being notified by the government.
• If any intermediary fails to assist, comply with the direction and intentionally contravenes provisions under Sections 69, 69A and 69B, respectively, he shall be liable to punishment.
• Section 43A provides that where a body corporate possesses, dealing or handles any sensitive personal data.
• Section 70B provides for an agency of the government to be appointed by the Central Government called the Indian Computer Emergency Response Team, which shall serve as the national agency for performing functions relating to cyber security.

2. The Information Technology Rules, 2009: Procedure and Safeguards of Interception, Monitoring and Decryption of Information- The interception or monitoring or decryption of information under Section 69 shall be carried out by an order issued by the competent authority.

3. The Information Technology Rules, 2009: Procedure and Safeguards for Blocking for Access of Information by Public- The Central Government in the exercise of its powers under Section 87(2) with regard to the procedure and safeguards for blocking access by the public under Section 69A.

4. The Information Technology Rules, 2009: Procedure and Safeguard for Monitoring and Collecting Traffic Data or Information-

• Directions for monitoring
• The competent authority (the Secretary of the Government of India in the Department of Information Technology) may issue directions for monitoring for purposes related to cyber security.

5. The Information Technology Rules, 2011: Intermediaries Guidelines- It is mandatory for the intermediary to inform the users by clearly stating that under the rules and regulations

6. The Information Technology Rules, 2011: Reasonable Security Practices and Procedures and Sensitive Personal Data or Information- The disclosure of sensitive personal data or information by a body corporate to any third party shall require prior permission from the provider of such information.

Ø  Code of Ethics for Social Media: At the time of the general election 2019, social media platforms and the Internet and Mobile Association of India submitted the “Voluntary Code of Ethics for the General Election 2019” to Election Commissioner.

Ø  The companies agreed to create a high-priority dedicated reporting mechanism for the ECI and appoint dedicated teams during the period of General Elections to take expeditious action on any reported violations.

WHY IS THERE A NEED TO REVIEW THE PRESENT REGULATIONS?

1.The challenges posed by the Internet activism

The power of the Internet is precisely the reason that governments want to regulate it.

The fears of governments about the Internet:

• National security (instructions on bomb-making, illegal drug production, terrorist activities);
• Protection of minors (abusive forms of marketing, violence, pornography);
• Protection of human dignity (incitement to racial hatred or racial discrimination);
• Economic security (fraud, instructions on pirating credit cards);
• Information security (malicious hacking);
• Protection of privacy (unauthorized communication of personal data, electronic harassment);
• Protection of reputation (libel, unlawful comparative advertising);
• Intellectual property (unauthorized distribution of copyrighted works, software or music).

2. Misuse of section 66A: Section 66A was inserted through an amendment to the Act in 2008. It provides punishment for sending offensive messages through communication services.

The issue:

• There is an inherent inconsistency between the phraseology of Section 66A and Article 19 (1) (a) of the Constitution, which guarantees freedom of speech and expression to every citizen.
• Under Article 19(2), restrictions on freedom of speech and expression are reasonable if they pertain to any of the listed grounds, such as sovereignty and integrity of India, security of the state, friendly relations with foreign states, public order, decency or morality, or in relation to contempt of court, defamation or incitement to an offence.
• But under Section 66A, restrictions have been placed on freedom of speech and expression on several other grounds, apart from those mentioned in the Constitution. To add to the fear that this provision could be hugely misused, several incidents in the recent past bear testimony to the same.
• The Supreme Court found this arbitrary, disproportionate and unreasonable restriction on the right to free speech. The court also said that the speech available online should have the same level of constitutional protection of free speech as that available offline.

GOVERNMENT ATTEMPT FOR THE ONLINE REGULATION

On April 4 2018, the government issued an order seeking to establish content regulations for the Internet, modelled on the ones currently applicable to traditional media like print and television.

Major Timeline:

• April 25, 2018: The Ministry of Information and Broadcasting, Government of India, posted a tender online for the creation of a ‘Social Media Communications Hub’. As per this tender, the selected company would be required to monitor Twitter, YouTube, LinkedIn, internet forums and even e-mail in order to analyze sentiment and identify “fake news”.
• June 16, 2018: The government was planning to get help from social media platforms, including WhatsApp and Facebook, to filter out fake text messages and videos.
• July 3, 2018: The Ministry of Electronics and Information Technology accused WhatsApp of allowing the circulation of irresponsible and explosive messages.
• August 3, 2018: The central government withdrew the proposal to create a ‘Social Media Communications Hub’ following mainstream media unrest and the filing of a plea before the Supreme Court.
• August 21, 2018: The IT Minister urged Whatsapp to create a mechanism through which the source of fake news could be traced.
• December 24, 2018: The Ministry of Electronics and Information Technology has prepared the draft Information Technology (Intermediary Guidelines) Rules 2018 to replace the rules notified in 2011 under the Information Technology Act, 2000. Intermediary refers to platforms such as Facebook and Twitter. There were five major guidelines for intermediate:

• The intermediary was enabled to trace out the originator of information on its platform as may be required by government agencies.
• Any platform with more than five million users in India would be required to register a company and have a permanent registered office in India.
• Platforms would be required to preserve information for at least 180 days for investigation purposes.
• The platforms would be required to “deploy technology-based automated tools” for “proactively identifying and removing or disabling public access to unlawful information or content.”
• The platform informed its users on a monthly basis about the rules and regulations of the platform and warned of immediate termination in case of violation.
• January 7, 2019: The I&B Minister called for self-regulation by social media platforms to deal with fake news.

INFORMATION TECHNOLOGY (INTERMEDIARY GUIDELINES AND DIGITAL MEDIA ETHICS CODE) RULES 2021

• To protect users from incorrect takedowns and account suspensions by social media platforms, the need was felt to institute effective grievance redressal mechanisms (GRM).
• In India, before May 2021, GRMs of social media platforms, if any, were designed as per the concerned platform’s terms of service. There was no standardization, in terms of resolution and timelines, in the design of these GRMs.
• If one was to make a complaint, the process would typically consist of filling out an online form, which would usually solicit an automated response.
• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules (or IT Rules), 2021, streamlined this by bringing in uniformity.
• Social media platforms now have to appoint a “grievance officer” before whom a user may file a complaint.
• The grievance officer is required to acknowledge the complaint within 24 hours and resolve it within 15 days. If unsatisfied with the officer’s order, the user may approach the high court/Supreme Court.

After that

• Accessing the writ jurisdiction of the court can be a time and cost-intensive process. And all users cannot afford that. In this light, it was important to create an appellate that is not as resource intensive to engage with.
• The government’s motivation behind creating this appellate committee seems to come from other factors as well. According to the government, it created this tier because “currently there is no appellate mechanism provided by intermediaries nor is there any credible self-regulatory mechanism in place”.
• But the government and social media platforms saw convergence on a self-regulatory approach being the most optimal design for an appellate mechanism, even as the bare minimum structure is unclear.

CONCERNS ABOUT A SELF-REGULATORY MODEL AFTER GRM 2021

POLITICAL BIASNESS

• Social media platforms have not been paragons of objectivity in deciding which content they want to host or take down. Their political biases have become visible through their decisions to either amplify or restrict certain kinds of content.
• For example, while Twitter is commonly understood to be more partial to liberal/Leftist views, Facebook has been alleged to be partial to Rightist stances. An internal appellate mechanism will likely toe the line of the organization and carry and reinforce the same biases in deciding whether a piece of speech should be allowed or not.

APPELLATE MECHANISM IS NOT TRULY INDEPENDENT

• Even if a number of social media platforms come together to form an appellate tier instead of individual appellate mechanisms, the members of this appellate tier will not have functional independence.
• As long as social media platforms control the members’ appointments, terms of employment and service conditions, they will be wary of taking decisions that may hurt the platform.

TRUST ISSUE

• A self-regulatory approach to adjudicating speech is likely to be riddled with trust issues. Consider the case of Facebook. The platform’s solution for ensuring transparency and impartiality in its content moderation decisions was to constitute the Oversight Board. Facebook created a $130 million irrevocable trust to maintain the Board’s independence and the latter did overturn many of Facebook’s content moderation decisions. But now, the Board has come under severe criticism that its existence has not substantially improved Facebook’s content moderation practices.

These concerns are amplified if, at a later stage, social media platforms are made subject to penalties for wrongfully suspending or terminating a post or user account. It can hardly be expected that social media platforms will design self-regulatory mechanisms in a manner that will encourage them to be held liable and penalized for their decisions.

THEN, SHOULD THE GOVERNMENT REGULATE ONLINE CONTENT IN INDIA?

There are two ways for the regulation of social media

1.Self-regulation

2.State regulation

Let’s discuss the Pros and Cons of both regulations.

1.SELF REGULATION

Pros

• Moral pressure
• Effective in ensuring freedom of expression.
• No state interference.
• In house regulatory mechanism by every company as per their suitability.
• Unaffected media is necessary for a democratic society.

Cons

• Lack of accountability.
• No transparency.
• No clear roadmap for the content.
• Illegal activities.
• No codification for action against unlawful content.

2.STATE REGULATION

Pros

• A clear roadmap for the content.
• It limits criminal activity.
• It helps protect children.
• It strengthens online security.
• It sets standards for what should not be published.

Cons

• Freedom of freedom will be at stake: the state may use absolute power
• It limits access to important information.
• Limits economic opportunities.
• Freedom of media will be under threat: State interference in every manner will affect the freedom of media.

The above analysis shows that self-regulation is the most suitable mechanism for social media. And online content should be self-regulated, but there is a need for improvement in the present situation, which the following steps can hold:

• There will be a clear codification of moral regulation, and all the stakeholders should follow them.
• All the Websites, Companies and other shareholders should respect the IAMAI initiative norms.
• There should be a proper security mechanism for data security.
• Companies can be aware the people about data security, fake news, hate speech and other dangers.
• Content should be lawful and should be as per the societal norms.
• Companies should develop a strong mechanism against objectionable content.

THE WAY FORWARD:

Although self-regulation is better, but the state should fulfil its duty in some cases, such as:

• Data protection
• Stop rumours
• Stop Cybercrime
• Resolve the issue of IT Act 66A and freedom of expression

1.The issue of IT section 66A and freedom of speech

• Some parts, such as Section 66A, were successfully challenged in court and struck down as unconstitutional in 2015 in the Shreya Singhal case. But the Act still empowers the government to block, filter and take down content online.
• The government is empowered to turn off internet access completely. These are options which are, in fact, exercised by the Indian government on a regular basis (between January 2010 and April 2018, there have been more than 164 incidents of internet shutdowns in different parts of India.).
• Section 66A of the IT Act wanted to ambitiously crackdown on information online which could cause “annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will.” It imposed a punishment of up to three years along with a fine.

2. Solutions to Tackle Hate Speech:

• Need to amend Information Technology Act 2000 with good implementation.
• There can be an internationally accepted law that places the responsibility on social media companies like Facebook to tackle hate speech by deleting obviously illegal content within 24 hours if there is a request from the government of a particular nation.
• Generating contra-narratives on social networks and raising public awareness through campaigns to tackle extremism.
• Social media platforms need to take responsibility to ensure transparency, accountability and a system of rules and guidelines that users can recognize as standards and which, when enforced in a regularized fashion, can begin to act as precedents.
• The Indian government has been pushing for internet platforms to locate their servers in the country, which might help address dangerous speech in real-time.

3. Solution for data protection: The recommendations of B.N Srikrishna committee should be implemented

• The processing (collection, recording, analysis, disclosure, etc.) of personal data should be done only for “clear, specific and lawful” purposes.
• The government may process the personal data if this is considered necessary for any function of Parliament or State Legislature.
• ‘Right to be forgotten.
• This right is one of several given to data principals, including the right to confirm what information is being held or disclosed about them and to get this corrected if necessary.
• Personal data will need to be stored on servers located within India, and transfers outside the country will need to be subject to safeguards.
• Critical personal data, however, will only be processed in India.
• “Sensitive” personal data should not be processed unless someone gives explicit consent, which factors in the purpose of processing.
• Setting up a Data Protection Authority.

4. For Cybercrime, a Cyber cell should be established:

• The cyber police station in Maharashtra is located every in district SP headquarters under the Police Commissioner.
• The team will investigate all offences related to the Internet, consisting of one police inspector and three sub-inspectors.

Global practices in this regard

AUSTRALIA

• Australia’s government agreed to make the News Media Bargaining Code law.
• Australia passed the Sharing of Abhorrent Violent Material Act in April 2019, introducing criminal penalties for social media companies, possible jail sentences for tech executives for up to three years, and financial penalties worth up to 10% of a company’s global turnover.

USA

• Recently US government released an executive order to revisit a law that gave absolute immunity to social media platforms. The US government is currently in the process of determining what exactly should happen to Section 230 of the Communications Decency Act (the federal law that gives internet companies protection from liability for user-generated content disseminated on their platforms).

UK

• Under the new Online Safety Bill by the UK government, social media sites, websites, apps, and other services which host user-generated content or allow people to talk to others online that fail to remove and limit the spread of such harmful content will face fines of up to £18 million ($24 million) or ten percent of their annual global turnover.

GERMANY

• It introduced the NetzDG Law in 2018, which states that social media platforms with more than two million registered German users have to review and remove illegal content within 24 hours of being posted or face fines of up to €50m (£42m).

NEW ZEALAND

• Aotearoa New Zealand Code of Practice for Online Safety and Harms. It is a pact agreed to be signed by tech giants in New Zealand to curb harmful online content. 

THE CONCLUSION: It is clearly evident that social media is a very powerful means of exercising one’s freedom of speech and expression. However, it is also increasingly used for illegal acts, which has given force to the government’s attempts at censoring social media. While, on the one hand, the misuse of social media entails the need for legal censorship, on the other hand, there are legitimate fears of violation of the civil rights of people as an inevitable consequence of censorship.

Keeping all this in mind, it is suggested that the government should form a Committee including technical experts to look into all the possible facets of the use and misuse of social media and recommend a suitable manner in which it can be regulated without hindering the civil rights of citizens.

QUESTIONS TO PONDER

1. “Freedom of expression on social media is integral to a healthy, thriving democracy. We will be stronger by enabling and cultivating it, not curtaining it.” Analyze the statement.
2. “It is imperative for the government to recognize the menace of hate speech and ensure that there is proper regulation in place to tackle the issue”. In the light of the statement, discuss what should be the structure for online content regulation in India.
3. “Regulation of social media content should be best left to the tech companies themselves”. Do you agree with the statement? Justify your view.
4. Should social media be self-regulated or state-regulated? Analyze your opinion.

ADDITIONAL INFORMATION

GUIDELINES RELATED TO SOCIAL MEDIA ARE TO BE ADMINISTERED BY THE MINISTRY OF ELECTRONICS, AND IT

Ø  Due Diligence To Be Followed By Intermediaries: The Rules prescribe due diligence that must be followed by intermediaries, including social media intermediaries. In case, due diligence is not followed by the intermediary, safe harbour provisions will not apply to them.

Ø  Grievance Redressal Mechanism: The Rules seek to empower the users by mandating the intermediaries, including social media intermediaries, to establish a grievance redressal mechanism for receiving and resolving complaints from the users or victims. Intermediaries shall appoint a Grievance Officer to deal with such complaints and share the name and contact details of such officer. Grievance Officer shall acknowledge the complaint within twenty four hours and resolve it within fifteen days from its receipt.

Ø  Ensuring Online Safety and Dignity of Users, Specially Women Users: Intermediaries shall remove or disable access within 24 hours of receipt of complaints of contents that exposes the private areas of individuals, show such individuals in full or partial nudity or in sexual Act or is in the nature of impersonation including morphed images etc. Such a complaint can be filed either by the individual or by any other person on his/her behalf.

Ø  Two Categories of Social Media Intermediaries: To encourage innovations and enable the growth of new social media intermediaries without subjecting smaller platforms to significant compliance requirements, the Rules make a distinction between social media intermediaries and significant social media intermediaries. This distinction is based on the number of users on the social media platform. Government is empowered to notify the threshold of user base that will distinguish between social media intermediaries and significant social media intermediaries. The Rules require the significant social media intermediaries to follow certain additional due diligence.

Ø  Additional Due Diligence to Be Followed by Significant Social Media Intermediary:

• Appoint a Chief Compliance Officer who shall be responsible for ensuring compliance with the Act and Rules. Such a person should be a resident in India.
• Appoint a Nodal Contact Person for 24×7 coordination with law enforcement agencies. Such a person shall be a resident in India.
• Appoint a Resident Grievance Officer who shall perform the functions mentioned under Grievance Redressal Mechanism. Such a person shall be a resident in India.
• Publish a monthly compliance report mentioning the details of complaints received and action taken on the complaints as well as details of contents removed proactively by the significant social media intermediary.
• Significant social media intermediaries providing services primarily in the nature of messaging shall enable identification of the first originator of the information that is required only for the purposes of prevention, detection, investigation, prosecution or punishment of an offence related to sovereignty and integrity of India, the security of the state, friendly relations with foreign States, or public order or of incitement to an offence relating to the above or in relation with rape, sexually explicit material or child sexual abuse material punishable with imprisonment for a term of not less than five years. Intermediary shall not be required to disclose the contents of any message or any other information to the first originator.
• Significant social media intermediary shall have a physical contact address in India published on its website or mobile app or both.
• Voluntary User Verification Mechanism: Users who wish to verify their accounts voluntarily shall be provided an appropriate mechanism to verify their accounts and provided with a demonstrable and visible mark of verification.
• Giving Users An Opportunity to Be Heard: In cases where significant social media intermediaries removes or disables access to any information on their own accord, then a prior intimation for the same shall be communicated to the user who has shared that information with a notice explaining the grounds and reasons for such action. Users must be provided an adequate and reasonable opportunity to dispute the action taken by the intermediary.

Ø  Removal of Unlawful Information: An intermediary upon receiving actual knowledge in the form of an order by a court or being notified by the Appropriate Govt. or its agencies through authorized officer should not host or publish any information which is prohibited under any law in relation to the interest of the sovereignty and integrity of India, public order, friendly relations with foreign countries etc.

Ø  The Rules will come in effect from the date of their publication in the gazette, except for the additional due diligence for significant social media intermediaries, which shall come in effect 3 months after publication of these Rules.

THE SOCIAL ISSUES AND SOCIAL JUSTICE

1. “THE GLOBAL ESTIMATES OF MODERN SLAVERY” REPORT

THE CONTEXT: The 2021 Global Estimates for Modern Slavery, which was recently released by the International Labour Organization (ILO), revealed a spike in the instances of forced labour.
THE EXPLANATION:
Highlights of the report:
• In 2021, 50 million people were living in modern slavery, of which 28 million were in forced labour and 22 million were trapped in forced marriage.
• The number of people in modern slavery has increased exponentially in the past five years.
• Compared to the 2016 global estimates, 10 million more people have been trapped by modern slavery.
• Women and children are disproportionately vulnerable to modern slavery.
• Modern slavery occurs in almost all countries across the world, regardless of differences in ethnicity, culture and religion.
• Forced Labour: 52 per cent of all forced labour are found in upper-middle or high-income countries. 86 per cent of forced labour are found in private sector. Forced labour in sectors other than commercial sexual exploitation accounts for 63 per cent of all forced labour.
• Forced marriage: An addition of 6.6 million people are victims of forced marriage in 2021 when compared to 2016 global estimates. More than 85 per cent of forced marriage is caused by family pressure. Its prevalence is highest in Arab states.
• Migrant workers are more than three times likely to be in forced labour than non-migrant adult workers. This is because of poorly governed migration or unethical recruitment practices.
• Recommendations: Improving and enforcing laws and labour inspections, ending state-imposed forced labour, social protection, and promoting fair and ethical recruitment and targeted support for women, girl and vulnerable communities.

VALUE ADDITION:
About ILO:
International Labour Organization (ILO) is the only tripartite U.N. agency, since 1919. It brings together governments, employers and workers of 187 member States, to set labour standards, develop policies and devise programmes promoting decent work for all women and men. HQ: Geneva.
India has ratified six out of the eight-core/fundamental ILO conventions. These conventions are:
1. Forced Labour Convention (No. 29)
2. Abolition of Forced Labour Convention (No.105)
3. Equal Remuneration Convention (No.100)
4. Discrimination (Employment Occupation) Convention (No.111)
5. Minimum Age Convention (No.138)
6. Worst forms of Child Labour Convention (No.182)

India has not ratified the two core/fundamental conventions, namely Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and Right to Organize and Collective Bargaining Convention, 1949 (No. 98).

THE INTERNATIONAL RELATIONS

2. THE SCO SUMMIT 2022

THE CONTEXT: The 2022 Shanghai Cooperation Organization (SCO) Summit will be organized in Uzbekistan from September 15 to 16, 2022.
THE EXPLANATION:
• The 2022 SCO Summit would be held in Samarkand – a city in Uzbekistan on the ancient trade route of Silk Road that connects China with the Mediterranean.
• The SCO summit in Uzbekistan would focus on reviewing the grouping’s activities over the past two decades and identifying areas having potential for multilateral cooperation.
• The discussions would also focus on the geopolitical crisis caused by the Russian invasion of Ukraine and the situation in the Taliban-ruled Afghanistan.
• This is the first in-person summit since 2019 SCO summit held in Bishkek, Kyrgyzstan.
• This summit would witness the first in-person meeting between Prime Minister and Chinese President Xi Jinping after their meeting at Brasilia on the side-lines of the BRICS (Brazil, Russia, India, China and South Africa) in 2019.
• The 22nd Meeting of the Council of Heads of the State of the Shanghai Cooperation Organization (SCO) would witness the attendance of leaders of SCO member states, observer states, Secretary General of the SCO, Executive Director of the SCO Regional Anti-Terrorist Structure (RATS), President of Turkmenistan and others.
• During the summit, Iran is expected to be formally admitted into the Shanghai Cooperation Organization.
• After the Samarkand summit, India would take up the SCO presidency.
• India will hold the presidency of SCO until September 2023. It would host the SCO summit next year.

About Shanghai Cooperation Organization
The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic and security grouping founded on June 15, 2001. It is headquartered in Beijing. Its members include China, Russia, India and Pakistan as well as 4 Central Asian countries – Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan. It is the world’s largest regional grouping, covering about 60 per cent of the area of Eurasia, 40 per cent of the global population and more than 30 per cent of global GDP.

THE ECONOMIC DEVELOPMENTS

3. THE NATIONAL LIST OF ESSENTIAL MEDICINES

THE CONTEXT: Recently the Ministry of Health and Family Welfare released the revised National List of Essential Medicines (NLEM) 2022.
THE EXPLANATION:
• The revised National List of Essential Medicines (NLEM) 2022 has deleted 26 drugs, which include common gastrointestinal medicines ranitidine and sucralfate.
• 384 drugs are currently part of the National List of Essential Medicines 2022, with the addition of 34 drugs.
• The medicines have been categorized into 27 therapeutic categories.
• Drugs in the list are deleted from the list if medicines with better efficacy or favourable safety profile and better cost-effectiveness are available as their alternative.
• If a specific disease is no longer a national burden, medicine for that disease would be deleted from this list.
• If anti-microbial drugs become ineffective due to high resistance, they are also deleted from the list.
• Concerns regarding safety profiles of the drugs and those that are banned in India are also deleted.
• Four drugs that are still under patent have been included in the list. These are bedaquiline and delamanid used in the treatment of multiple drug-resistant tuberculosis, dolutegravir used for treating human immunodeficiency virus (HIV) infection, and daclatasvir used in treating viral infections such as Hepatitis C.
• Several anti-cancer drugs have been included in the list to make them affordable and reduce out-of-pocket expenditure in cancer treatment.
• Cardiovascular medicines dabigatran and tenecteplase are also included in this list.
• The diabetes section has been expended by including teneligliptin and insulin glargine.

National List of Essential Medicines
The National List of Essential Medicines was compiled for the first time in 1996. It was revised thrice since in 2003, 2011 and 2015. The drugs in the NLEM are included in the Schedule category and their price is regulated by the National Pharmaceutical Pricing Authority.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

4. THE CLIMATE TIPPING POINT

THE CONTEXT: A new research has revealed that an increase of 1.5 from pre-industrial levels would trigger multiple climate tipping points. Presently, some parts of West Antarctic ice sheets, an important marker, have already passed tipping point.
THE EXPLANATION:
• Climate tipping points (CTPs) are indicators of a large climate system, which when triggered beyond a threshold, perpetuate warming on its own.
• Some CTPs triggers include substantial sea level rise caused by melting ice sheets, shrinking of Amazon Rainforest or corals and warming caused by carbon released from the melting permafrost.
• A new study analysed 9 previously-identified tipping elements and their corresponding timescale and impacts of tipping.
• The researchers increased the list of potential tipping points from 9 to include other possible tipping points.
• They revealed that human emissions have already pushed the tipping point to dangerous levels, some of which are irreversible.
• Thus, the goal set by the UN’s Paris Agreement to limit warming at 1.5 to 2°C will not be able to avoid the adverse consequences of the climate change as several of the climate tipping points have already been triggered.
• Tipping points can be triggered even at 1.5°C, which is not a safe level of warming but better than the 2°C mark.
• Even a few tenths of a degree of excessive temperature could trigger new tipping points.
• If it goes beyond 1.8°C, ocean convection in the Labrador and Irminger Seas in the North Atlantic would collapse and Europe and North America would witness extreme weather conditions. There will also be a shift of subtropical monsoon patterns to new positions, especially in West Africa.
• In the scenario of 4°C rise, the wider Atlantic Meridional Overturning Circulation would collapse and severely disrupt the monsoon systems across the world.
• This would cause major changes in the Atlantic, with significant decline in sea ice and abrupt shifts in the boreal forest position worsening the rising temperature and causing significant changes in weather patterns.

VALUE ADDITION:
What is the Atlantic Meridional Overturning Circulation (AMOC)?
The Atlantic Meridional Overturning Circulation (AMOC) is a large system of ocean currents that carry warm water from the tropics northwards into the North Atlantic.

How does the AMOC work?
• The AMOC is a large system of ocean currents, like a conveyor belt, driven by differences in temperature and salt content – the water’s density.
• As warm water flows northwards it cools and some evaporation occurs, which increases the amount of salt.
• Low temperature and a high salt content make the water denser, and this dense water sinks deep into the ocean.
• The cold, dense water slowly spreads southwards, several kilometres below the surface.
• Eventually, it gets pulled back to the surface and warms in a process called “upwelling” and the circulation is complete.

THE PRELIMS PERSPECTIVE

5. SEPTEMBER 14: THE HINDI DIWAS

THE CONTEXT: Recently, Hindi Diwas is observed every year on September 14 to commemorate the adoption of Hindi as the official language of India.
THE EXPLANATION:
• On September 14, 1949, the Constituent Assembly of India adopted Hindi as the official language along with English.
• Article 343 of the Indian Constitution recognizes Hindi in Devanagari script as the official language.
• On the occasion of Hindi Diwas, the importance of Hindi is promoted and various cultural festivals are organized to celebrate and honour Hindi literature.
• India’s first Prime Minister Jawaharlal Nehru decided to create the Hindi Diwas on September 14, which coincides with the birth anniversary of Beohar Rajendra Simha, who played a major role in making Hindi India’s official language.
• Hindi Diwas was celebrated for the first time in 1953.
• Mahatma Gandhi was the first to advocate for making Hindi the national language of India in Hindi Sahitya Sammelan in 1918.
• As of 2022, Hindi is the third most spoken language in the world, with about 602.2 million people speaking the language.
• On the occasion of Hindi Diwas, Home Minister inaugurated second All India Rajbhasha Sammelan.
• While the National Hindi Diwas is celebrated on September 14, the World Hindi Day (Vishwa Hindi Diwas) is celebrated on January 10 every year to promote the use of Hindi language across the world.
• Currently, Hindi is spoken in countries such as Fiji, New Zealand, Singapore, Mauritius etc.
Akhil Bharatiya Rajbhasha Sammelan
The Akhil Bharatiya Rajbhasha Sammelan (All India Official Language Conference) was held for the first time in 2021. The two-day conference will be organized by State Language Department of the Ministry of Home Affairs. Discussions will be held on the importance of Hindi during this conference.

6. THE NAGA MIRCHA FESTIVAL

THE CONTEXT: Recently the inaugural edition of the Naga Mircha festival was organized in Seiyhama village of Kohima district in Nagaland.
THE EXPLANATION:
• The first-ever Naga Mircha (King Chilli) Festival 2022 was organized in the village hall of Seiyhama village in Kohima district.
•  The event was sponsored by the Nagaland Horticulture Department.
•  In 2021, the Seiyhama village reported a total income of Rs.27 lakh through the cultivation of Naga Mircha and this year’s estimation of income from this activity is Rs.1 crore.
•  It is one of the major provider for self-employment opportunities in the village.
• Of the 361 households in the Seiyhama village, 200 cultivate Naga Mircha, providing them with a sustainable income source.
• Each of these households are expected to earn a minimum income of Rs.60,000 to Rs.70,000 and large-scale cultivators are expected to earn nearly Rs.4 to 5 lakh this year.
•  Income from the Naga Mircha cultivation has supported education of children.
•  During the inaugural Naga Mircha Festival, Chief Minister’s Micro Finance Initiative was promoted.
• Chief Minister’s Micro Finance Initiative was launched by the Nagaland government to ease credit access required for undertaking economic activities in the agriculture and allied sectors, including MSMEs.

About Naga Mircha
Naga Mircha is popularly known as Raja Mircha (King Chilli). It is one of top five hottest chillies on the Scoville Heat Units (SHUs) list. It received GI tag to Nagaland in 2008. It is also known as Bhoot Jolokia and Ghost pepper. It belongs to genus Capsicum of family Solanaceae. It is 60 to 85 mm long and has wrinkled skin. The spiciness of this species is 1,041,427 SHU.

[WpProQuiz 332]

THE CONTEXT: Human trafficking is still having a serious presence in India. It is one of the most distressing problems faced by many countries worldwide. It is a serious crime against human beings and violates their fundamental or basic human rights. It inhibits the free movement of the citizens through coercion or commercial exploitation in their own country. Thus, it can occur within a country or even out of the country i.e. transnationally. In the present article, we will discuss the issue of human trafficking in detail.

WHAT IS HUMAN TRAFFICKING?

• Human trafficking is a trade among all people, especially children and women.
• According to the United Nations Office on Drugs and Crime (UNODC), Human Trafficking is “the recruitment, transportation, transfer, harbouring or receipt of people through force, fraud or deception, to exploit them for profit”.

DATA RELATED TO HUMAN TRAFFICKING IN INDIA

• According to the MHA, In 2020, a total of 4,966 registered cases of Human trafficking from across India, and 3661 people were charge-sheeted.
• It has led to 101 convictions and 715 acquittals, while the other cases are still pending, as per the crimes in India 2020 report by the National Crime Records Bureau.
• According to the central government, as many as seven states — Assam, Chhattisgarh, Kerala, Goa, Maharashtra, Odisha, and Punjab — did not see a single conviction in such cases in 2020.
• As per India’s National Crime Record Bureau, 2278, 2208, and 1714 cases of trafficking were reported in 2018, 2019, and 2020 respectively. 85.2% of the cases have been charge-sheeted.
• In 2020, 4,709 persons were victimized, out of which 2,222 were children, including 1,377 boys and 845 girls. It also projects that 2151 children were rescued, out of which 801 were girls. Among adult victims, 535 were males, and 1952 were females.

HOW SERIOUS HUMAN TRAFFICKING IN INDIA

• It is considered the second largest organized crime in India.
• Human trafficking is still a major issue in India, despite the fact that it is banned under Indian law.
• People are trafficked for sexual exploitation, forced labour, forced begging, forced marriage, selling children, as well as for the removal of organs.
• Sexual exploitation is the most common form of exploitation, followed by forced labour.
• Most victims are trafficked within their countries’ borders – those trafficked abroad are moved to the richest countries.

REASON FOR HUMAN TRAFFICKING

Several factors contribute to the trade in human beings, particularly women and children. The factors of trafficking in women and children can be divided into two categories: push and pull factors.

THE PUSH FACTORS INCLUDE:

• Poor socio-economic conditions of a large number of families, poverty coupled with frequent, almost annual natural disasters like floods leading to virtual poverty of some people, lack of education, skill and income opportunities for women in rural areas, absence of awareness about the activities of traffickers, pressure to collect money for dowries which leads to sending daughters to distant places for work, dysfunctional family life, domestic violence against women, low status of girl children, etc.
• It appears from the case studies that extreme poverty and other causes of deprivation not only push people to fall on the traffickers’ tripod but also create an incentive for trafficking. Often the prostitutes, who have no option to come out of the exploitative environment, gradually develop intimate connections with the traffickers and follow in their footsteps.

THE PULL FACTORS ARE:

• Lucrative employment propositions in big cities, easy money, promise of better pay and comfortable life by the trafficking touts and agents, the demand of young girls for marriage in other regions, demand for low-paid and underage sweatshop labour, and growing demand for young kids for adoption, rise in demand for women in the rapidly expanding sex industry, demand for young girls in places of military concentration like Kashmir in India in recent times, demand for young girls for sexual exploitation.
• The rampant practice of female feticide in the northern states of Haryana and Punjab has also fuelled internal trafficking.
• Since there is a shortage of women in these states having a low female to male ratio, they have become fertile ground for the operation of traffickers.
• Traffickers procure girls from faraway states like Assam and Orissa; trick their families into believing they are to be married, only to push them into prostitution later.
• India is also experiencing rapid changes in economic, political, demographic and labour trends as an outcome of globalization; increasing demand for cheap labour and heavy population growth in the region encourages migration, whether legal or illegal.
• The movement of young girls and women from Bangladesh and Nepal into Indian brothels is common. There is further movement of these women and girls to the Middle East and other destinations.

WHAT ARE THE PROVISIONS TO STOP HUMAN TRAFFICKING

• Trafficking in Human Beings or Persons is prohibited under the Constitution of India under Article 23.
• The Immoral Traffic (Prevention) Act, 1956 (ITPA) is the premier legislation to prevent trafficking for commercial sexual exploitation.
• Protection of Children from Sexual Offences (POCSO) Act, 2012 is a special law to protect children from sexual abuse and exploitation.
• There are other specific legislations enacted relating to trafficking in women and children o Prohibition of Child Marriage Act, 2006
• Bonded Labour System (Abolition) Act, 1976
• Child Labour (Prohibition and Regulation) Act, 1986
• State Governments have also enacted specific legislations to deal with the issue. (e.g., The Punjab Prevention of Human Smuggling Act, 2012).

WHY IS HUMAN TRAFFICKING A CAUSE OF CONCERN NOWADAYS?

• The estimated number of victims of severe forms of trafficking is significantly increasing.
• There is a failure to provide evidence of increasing efforts to combat severe forms of trafficking in persons from the previous year.
• Evolving nature of trafficking is a challenge, like the rise of technology usage and cowardly ways of committing crimes these days.
• Often cases are booked as kidnapping or missing person cases even though there is clear evidence of trafficking.
• Lack of information provided to survivors on victim compensation.
• Low investment on the part of legal aid results in very few survivors having access to compensation.
• Despite many laws present in India, human trafficking remains an unspoken problem in the country.

The conviction rate is falling.

• As per the government data, the conviction rate in Human trafficking cases has been falling over the past few years.
• The conviction rate in 2020 was 10.6%, while it was 22.5% in 2019 and 19.4 in 2018.
• In 2017, the conviction rate was 24.5% and 27.8 % in 2016.
• According to activists and NGOs working with human trafficking survivors, getting convictions in such cases is a major challenge.

WHY ARE THE PROVISIONS NOT WORKING EFFECTIVELY AGAINST TRAFFICKING?

LACK OF COORDINATION

• Getting justice for the survivors and punishing the culprits are challenging tasks and most of the time, the traffickers get away using legal loopholes.
• Like terrorism and drug trafficking, human trafficking is an organized crime involving interstate and sometimes international networks. If a person is trafficked and their kin goes to the local police station, they can only do so much to investigate the case locally as their resources are limited.

LACK OF LEGAL RESOURCES

• In such cases, where the evidence is very little, the prosecution has to rely on the statement of the survivor, who is both the victim and the witness of the crime.
• The issue of the declining rate of conviction essentially indicates there is a lack of strong and appropriate investigation that spans across state borders.
• There is also a lack of a proper rehabilitation mechanism and victim compensation for the survivors, which would encourage them to cooperate with the investigators.
• In 2018, the NIA agreed to take up human trafficking case involving two or more states, but it is still in the early stages.

VICTIMS NEED WITNESS PROTECTION

• In the case of survivors who want to take their traffickers to law, one of the major challenges is safety, as one or more chains of the network will be people who are part of their own community or village.
• There is no proper mechanism for witness protection and victim compensation. The survivors have to deal with this powerful network that is very intimidating.
• Survivors getting threats from traffickers against seeking legal measures is not uncommon. In the current system, the only protection the victim is offered is to place them in a shelter home.
• The maximum punishment in human trafficking cases is 10 years in jail, and in cases of sexual exploitation, the prison sentence can be for life.

THE ANTI-TRAFFICKING BILL 2021

ACCORDING TO THE  BILL

• Defines human trafficking as an organized crime with international implications
• The law will apply to all citizens of India, within and outside the country.
• The law shall apply to every offence of trafficking in persons with cross-border implications.
• Widens the definition of the “victim” by including transgenders, besides women and children.
• Any offence of trafficking shall be punished with rigorous imprisonment for a term which shall not be less than seven years.
• More severe penalties for “aggravated offences” and seeks to crack down on organized crime syndicates.
• Aggravated offences include cases that may result in the death of the victim or where the victim suffers a grievous injury (in cases such as an acid attack), organ mutilation or removal of organs, or where the victim is a child.
• In case of the death of the victim, the Bill proposes life imprisonment along with a fine of Rs 30 lakh.
• Imprisonment up to 20 years and the death penalty for the offenders found guilty.
• The investigation needs to be completed within 90 days from the date of the arrest of the accused.
• Widens the range of offenders who can be booked under the law, bringing public servants, armed forces personnel or anyone in a position of authority under its ambit. The penalty for the guilty will include life imprisonment along with a fine of Rs 30 lakh.

CONCERNS WITH THE BILL

• The Bill is not clear about how the NIA, as a nodal agency, will gather information and intelligence from different parts of the country through Anti-Human Trafficking Units (AHTUs) at the district level and State levels.
• Largely silent on rescue protocols except the “reason to believe” by a police officer not below the rank of a sub-inspector.
• The absence of community-based rehabilitation, missing definition of reintegration and also the funds related to rehabilitation of survivors in the Bill.

THE WAY FORWARD:

Border measures

• Stringent Enforcement of cross-border trafficking, Secure Vigilance in Trafficking routes and Proper social accountability are needed.

 Economic and social policies

• Taking measures to raise levels of social protection and to create employment opportunities.
• Taking appropriate measures to eliminate discrimination against women in the field of employment in order to ensure, on the basis of gender equality, the right to equal pay for equal work and the right to equality in employment opportunities.
• Developing programmes that offer livelihood options and include basic education, literacy, communication and other skills reduce barriers to entrepreneurship.
• Encouraging gender sensitization and education on equal and respectful relationships between the sexes, thus preventing violence against women.
• Ensuring that policies are in place that allow women equal access to and control over economic and financial resources.

Awareness-raising measures

• With the help of NGOs and Police officials, there can be some types of advertisements through the popular media in a particular location and by conducting some awareness programs in villages, local schools, among kids of the poor society and public to be alert of being victimized.

Legislative measures

• Adopting or strengthening legislative, proper law enforcement, uncorrupt officials, educational, social, cultural or other measures and, where applicable, penal legislation, including through bilateral and multilateral cooperation, to discourage the demand that fosters all forms of exploitation of persons, especially women and children, and that leads to trafficking.
• Enhance the capacity building of law enforcement agencies.
• Conducting workshops on Combating Trafficking in Human Beings for Police officers and for Prosecutors at the Regional level, State level and District level
• Sensitize the judicial officers about the various issues concerning human trafficking and ensure a speedy court process.

THE CONCLUSION: The issue of human trafficking in India must be addressed in a whole comprehensive manner. It requires a multi-faceted strategy to combat the menace of human trafficking in our country. While efforts include that there should be a process of rehabilitation and reintegration for all the victims of human trafficking, it should be mainly conducted. Otherwise, it will not successfully address the issue in the long run and strategically.

QUESTIONS TO PONDER

1. Why in recent times the case of trafficking is increasing? How are technological developments encouraging it?
2. Why does the issue of human trafficking persist in India despite so many laws and awareness campaigns? Suggest some effective measures to prevent it.
3. The anti-trafficking bill 2021 is an effective law to address the issue of trafficking in India, but implementing the law is a major challenge. Comment.

THE INDIAN POLITY AND GOVERNANCE

1. SUPREME COURT’S THREE-QUESTION TEST FOR VALIDITY OF 10% EWS QUOTA

THE CONTEXT: The Supreme Court will examine whether The Constitution (103rd Amendment) Act, which introduced a 10 per cent quota for Economically Weaker Sections (EWS) in government jobs and admissions, violates the basic structure of the Constitution.
THE EXPLANATION:
The issues fixed by the Supreme Court
The court decided to take up three of them:
• Whether the 103rd Constitution Amendment can be said to breach the basic structure of the Constitution by permitting the state to make special provisions, including reservation, based on economic criteria
• Whether it can be said to breach the basic structure…by permitting the state to make special provisions in relation to admission to private unaided institutions
• Whether the basic structure is violated by excluding the SEBCs (Socially and Educationally Backward Classes)/ OBCs (Other Backward Classes)/ SCs (Scheduled Castes)/ STs (Scheduled Tribes) from the scope of EWS reservation

The 103rd Amendment
• The 103rd Amendment inserted Articles 15(6) and 16(6) in the Constitution to provide up to 10 per cent reservation to EWS other than backward classes, SCs, and STs in higher educational institutions and initial recruitment in government jobs.
• The amendment empowered state governments to provide reservation on the basis of economic backwardness.
• Article 15 prohibits discrimination on grounds of religion, race, caste, sex, or place of birth.
• Article 16 guarantees equal opportunity in matters of public employment.
• The additional clauses gave Parliament the power to make special laws for EWS like it does for SCs, STs, and OBCs.
• The EWS reservation was granted based on the recommendations of a commission headed by Major General (retd) S R Sinho.
• The Sinho Commission recommended that all below-poverty-line (BPL) families within the general category as notified from time to time, and also all families whose annual family income from all sources is below the taxable limit, should be identified as EBCs (economically backward classes).

How is EWS status determined under the law?
• Under the 2019 notification, a person who was not covered under the scheme of reservation for SCs, STs, and OBCs, and whose family had a gross annual income below Rs 8 lakh, was to be identified as EWS for the benefit of reservation.
• The notification specified what constituted income, and excluded some persons from the EWS category if their families possessed certain specified assets.

Challenges to the amendment
• When a law is challenged, the burden of proving it is unconstitutional lies on the petitioners.
• The primary argument in this case is that the amendment violates the basic structure of the Constitution.
• Although there is no clear definition of basic structure, any law that violates it is understood to be unconstitutional.
• It stems from the view that the special protections guaranteed to socially disadvantaged groups is part of the basic structure, and that the 103rd Amendment departs from this by promising special protections on the sole basis of economic status.
• The petitioners have also challenged the amendment on the ground that it violates the Supreme Court’s 1992 ruling in Indra Sawhney & Ors v Union of India, which upheld the Mandal report and capped reservations at 50 per cent.
• The court had held that economic backwardness cannot be the sole criterion for identifying a backward class.
• Another challenge is on behalf of private, unaided educational institutions.
• They have argued that their fundamental right to practise a trade/ profession is violated when the state compels them to implement its reservation policy and admit students on any criteria other than merit.

Government’s stand
• The government argued that under Article 46 of the Constitution, part of Directive Principles of State Policy, the state has a duty to protect the interests of economically weaker sections
• Against the argument of violation of the basic structure, the government said that to sustain a challenge against a constitutional amendment, it must be shown that the very identity of the Constitution has been altered.
• On the Indra Sawhney principle, the government has relied on the SC’s 2008 ruling in Ashoka Kumar Thakur v Union of India, in which the court upheld the 27 per cent quota for OBCs.
• The argument is that the court accepted that the definition of OBCs was not made on the sole criterion of caste but a mix of caste and economic factors; thus, there need not be a sole criterion for according reservation.

How will Bangladesh use the water?
• The water of Kushiyara will be channelled through the Rahimpur Canal project in Sylhet.
• The eight km long canal is the only supplier of water from the Kushiyara to the region and Bangladesh has built a pump house and other facilities for withdrawal of water that can now be utilised.
• The water of the Kushiyara has been used for centuries in Sylhet.
• But Bangladesh has witnessed that the flow and volume of water in the canal has reduced during the lean season.
• The utility of the river and the canal during the lean/winter season had gone down, affecting cultivation of rice as well as a wide variety of vegetables for which Sylhet is famous.
• The additional water of Kushiyara through the Rahimpur Canal therefore is the only way to ensure steady supply of water for irrigation of agriculture fields and orchards of the subdivisions of Sylhet.

Link with climate change
• The Kushiyara agreement is relatively smaller in scale in comparison to Teesta that involves West Bengal, which has problems with the proposal.
• The Kushiyara agreement did not require a nod from any of the States like Assam from which the Barak emerges and branches into Kushiyara and Surma.
• The reduced water flow of the Kushiyara during winter and Teesta too, however, raise important questions about the impact of climate change on South Asian rivers that can affect communities and trigger migration.
• Bangladesh has cited low water flow in its rivers during the winter months as a matter of concern as it affects its agriculture sector.
• The coming decades will throw up similar challenging issues involving river water sharing as the impact of the climate crisis becomes more visible with water levels going down in several cross-border rivers.

THE ECONOMIC DEVELOPMENTS

2. NITI AAYOG: APPROVAL OF BENEFICIARIES UNDER PLI SCHEME

THE CONTEXT: The Empowered Committee headed by NITI Aayog CEO recently approved the first distribution of incentives for mobile manufacturing.
THE EXPLANATION:
• This production-linked incentive scheme will give India a competitive position in the field of electronics manufacturing.
• The plan includes manufacturing of mobile phones and manufacturing of specialized electronic components.
• This initiative will also promote the vision of a self-reliant India. Under this, 10 companies will be given the benefit of the scheme for mobile manufacturing. This includes five domestic and five foreign companies.
• Under this initiative, a domestic company, Paget Electronics Pvt Ltd, is the first beneficiary company to receive incentives under mobile manufacturing.
• This is the first time that a mobile manufacturing unit has been selected under the PLI scheme.
• This scheme extends an incentive of 4% to 6% on net incremental sale of manufactured goods, to boost electronics manufacturing and attract large scale investments.
• The scheme is expected to generate additional generation of Rs 10,69,432 crore and employment for 700,000 people.

What is PLI Scheme?
PLI scheme aims to provide incentives to the companies on the basis of incremental sales from products manufactured in domestic units. It invites foreign companies to set up their units in India as well as encourage local companies to expand or set up manufacturing units.

3. INDIA’S RETAIL INFLATION IN AUGUST 2022

THE CONTEXT: India’s retail inflation has reached 7 per cent in August 2022 – well above the RBI’s comfort level of 6 per cent.
THE EXPLANATION:
• India’s Consumer Price Index (CPI)-based inflation has returned to 7% in August 2022.
• In July 2022, the retail inflation had reduced to a five-month low of 6.71%, after spending the three months above 7%.
• The retail inflation stayed above 6% for eight consecutive months.
• It had spent the 35 consecutive months above the RBI’s medium-term target of 4 per cent.
• With average retail inflation at 6.3 per cent in January-March and 7.3 per cent in April-June, the retail inflation must reduce to at least 4.1 per cent in September for July-September average to come under 6 per cent.
• According to the RBI, the inflation is expected to average at 7.1 per cent in July-September.
• The return to the 7% level in August is mainly because of the surge in food prices.
• Inflation in food basket has spiked to 7.62% in August – a significant increase from 3.11% in August 2021.
• Food inflation accounts for nearly 50 per cent of the CPI basket.
• The surge is largely because of increase in prices of essential crops such as wheat, rice and pulses caused by a record heatwave.
• There is a 10% increase in the inflation rate of vegetables, spices, footwear and fuel and light on annual basis.
• However, the prices of eggs have reduced and inflation in protein-rich meat and fish have flattened in the August.

What is retail inflation?
Retail inflation or the CPI-based inflation is the increase in prices of goods and services purchased by households for daily consumption. It is measured in Consumer Price Index (CPI), which is the weighted average of prices of a basket of goods and services that are sold in retail prices. The CPI measures changes in the retail prices of essential goods like food, fuel etc., as well services such as healthcare, transportation and others.

4. IFSCA FINTECH INCENTIVE SCHEME, 2022

THE CONTEXT: The International Financial Services Centres Authority (IFSCA) launched the IFSCA (FinTech Incentive) Scheme for providing financial support to FinTech activities in the form of specific grant(s).
THE EXPLANATION:
This scheme shall be open to –
• Domestic FinTechs seeking access to overseas markets;
• Domestic FinTechs seeking listing on IFSCA recognised stock exchanges;
• Foreign FinTechs seeking market access to IFSCs in India and work within the Authority’s regulatory framework;
• Foreign FinTechs seeking access to domestic market under Inter-Operable Regulatory Sandbox (IORS) framework;
• Domestic FinTechs extending business to the IFSCs either by way of authorisation or registration or through the regulatory sandbox.
• The types of incentives for eligible applicants are:
o FinTech Start-up grant: This grant shall be utilized for developing a product or a service and related ‘go-to market’ initiatives for a start-up with a novel FinTech idea or solution.
o Proof of Concept (PoC) grant: This grant shall be utilized for the purpose of conducting a PoC by an early or mature FinTech Entity (FE) in domestic market or overseas.
o Sandbox grant: This grant shall be utilized by FEs to experiment with innovative products or services in a sandbox.
o Green FinTech Grant: This grant shall be utilized towards developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments.
o Accelerator Grant: This grant shall be utilized for supporting accelerators at the IFSC for capacity building, build capabilities around mentors, bringing investors, bringing more projects or PoC, tie ups, etc.
o Listing Support Grant: The grant shall be utilized for supporting Domestic FE aspiring to go for listing on stock exchanges recognised by the Authority.

About IFSCA
• The International Financial Services Centres Authority (IFSCA) has been established in 2020 under the International Financial Services Centres Authority Act, 2019.
• It is headquartered at GIFT City, Gandhinagar in Gujarat.
• It is an authority to develop and regulate:
o financial services,
o financial products
o financial institutions
• Before the IFSCA was established, the financial services and institutions were regulated by the SEBI, RBI, IRDAI, PFRDA, etc.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

5. SEA TURTLES TRAFFICKING

THE CONTEXT: According to a new study More than 1.1 million sea turtles have been illegally killed and in some cases trafficked from 1990 to 2020.
THE EXPLANATION:
• The reptiles faced exploitation in 65 countries/territories and 44 out of the 58 marine turtle regional management units (RMU) in the world despite laws protecting the creatures.
• The sea turtle family includes the hawksbill, loggerhead, leatherback, green and olive ridley turtle.
• The species that faced the most exploitation in the 30-year-period were green (56 per cent) and hawksbill sea turtles (39 per cent).
• Southeast Asia and Madagascar were major hotspots for illegal sea turtle trade, particularly for the critically endangered hawksbills.
• The hawksbill turtles are prized in the illicit wildlife trade for their beautiful shells.
• Vietnam was the most common country of origin for illegal sea turtle trafficking, while China and Japan served as destinations for nearly all trafficked sea turtle products.
• Vietnam-China was the most common trade route across all three decades.
• There was a 28 per cent decrease in the reported exploitation of marine turtles from the 2000s to the 2010s.
• The decline over the past decade could be due to increased protective legislation and enhanced conservation efforts, coupled with an increase in awareness of the problem or changing local norms and traditions.

Reason for their decline
• Sea turtles are slaughtered for their eggs, meat, skin, and shell
• They also face habitat destruction and accidental capture or bycatch in fishing gear.
• Climate change has an impact on turtle nesting sites as it alters sand temperatures, which affects the sex of hatchlings.

About Sea turtles
• Sea turtles, sometimes called marine turtles, are reptiles of the order Testudines and of the suborder Cryptodira.
• The seven existing species of sea turtles are:
1. the flatback sea turtles,
2. green sea turtles,
3. hawksbill sea turtles,
4. leatherback sea turtles,
5. loggerhead sea turtles,
6. Kemp’s ridley sea turtles,
7. olive ridley sea turtles.
• Sea turtles can be separated into the categories of hard-shelled (cheloniid) and leathery-shelled (dermochelyidae).
• There is only one dermochelyidae species which is the leatherback sea turtle.

Distribution
• Sea turtles can be found in all oceans except for the polar regions.
• The flatback sea turtle is found solely on the northern coast of Australia.
• The Kemp’s ridley sea turtle is found solely in the Gulf of Mexico and along the East Coast of the United States.
• Sea turtles are generally found in the waters over continental shelves.

Conservation status
• The IUCN Red List classifies three species of sea turtle as either “endangered” or “critically endangered”.
• An additional three species are classified as “vulnerable”.
• The flatback sea turtle is considered as “data deficient”, meaning that its conservation status is unclear due to lack of data.
• All species of sea turtle are listed in CITES Appendix I, restricting international trade of sea turtles and sea turtle products.

THE SECURITY AFFAIRS

6. INDIAN ARMY EXERCISE PARVAT PRAHAR

THE CONTEXT: Army Chief recently visited the Ladakh sector to review Exercise Parvat Prahar and was briefed about the operational preparedness on the ground by the commanders. The exercise saw the deployment of an all new major induction of the Army.
THE EXPLANATION:
• This exercise named ParvatPrahar is being conducted by the One Strike Corps of the Indian Army. ‘
• The strike corps means that if China or Pakistan act anywhere, they will first enter and eliminate it.
• Parvat Prahar is a 20-day long exercise of the Indian Army.
• The exercise comes as India and China are separating from the Gogra-Hot Springs (PP-15) in eastern Ladakh.
• It is believed that from the above place the Indian Army may withdraw its forces towards Karam Singh Hill, while the Chinese Army may return to Chinese territory in the north.
• The exercise involved high altitude infantry personnel, T-90S and T-72 tanks, mechanized infantry, K-9 Vajra, Bofors and M-777 howitzers, helicopters and aircraft.
• Chinook heavy lift helicopters and all-terrain vehicles carried by K9-Vajra howitzers were used in the exercise.