fortnightly manifesto part 2 · 2019-05-24 · fortnightly manifesto part 2 issue no.02 the...
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FORTNIGHTLY MANIFESTO PART 2 ISSUE NO.02
The fortnightly compilation of the current affairs write-
ups, written by the faculty of Manifest IAS, which covers
both static and current dimensions of important current
affairs for 3rd and 4th week of November 2018.
The write-ups can also be found in the section Manifest 11 on our
website https://www.manifestias.com
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FORTNIGHTLY MANIFESTO
NOVEMBER-2018 (PART-2) ISSUE NO: 02
MANIFEST-2019 INITIATIVE
WHAT IS MANIFEST 11? LOGIC BEHIND MANIFEST 11? WHAT IS MANIFEST PEDAGOGY?
HISTORY, ART & CULTURE __________________________________________________________________________________ 1
GURU NANAK AND SIKHISM _________________________________________________________________________________ 3
INDIAN SOCIETY __________________________________________________________________________________________ 7
POLIO AND ITS VARIANTS ___________________________________________________________________________________ 7
RESERVATION __________________________________________________________________________________________ 11
POLITY AND GOVERNANCE_________________________________________________________________________________ 15
KASHMIR ISSUE _________________________________________________________________________________________ 15
CRIMINALIZATION OF POLITICS ______________________________________________________________________________ 19
INTERNATIONAL RELATIONS _______________________________________________________________________________ 25
INDIA – AFGHANISTAN RELATIONS ___________________________________________________________________________ 25
INDIA – VIETNAM RELATIONS _______________________________________________________________________________ 29
ECONOMY ______________________________________________________________________________________________ 34
REGULATION OF PAYMENTS AND SETTLEMENTS IN INDIA – UPDATED __________________________________________________ 34
CRUISE TOURISM ________________________________________________________________________________________ 40
RCEP NEGOTIATIONS AND INDIA ____________________________________________________________________________ 43
AGRICULTURE ___________________________________________________________________________________________ 47
POLLINATORS, THEIR IMPORTANCE AND HOW THEY ARE GETTING AFFECTED? ____________________________________________ 47
SCIENCE AND TECHNOLOGY ________________________________________________________________________________ 50
GRAVITATIONAL WAVES ___________________________________________________________________________________ 51
GSLV MK III ___________________________________________________________________________________________ 56
ENVIRONMENT AND DISASTER MANAGEMENT ________________________________________________________________ 60
FOREST FIRE ___________________________________________________________________________________________ 60
ETHICS _________________________________________________________________________________________________ 64
CORPORATE GOVERNANCE IN INDIA __________________________________________________________________________ 64
Mains test from this handout will be conducted on 15th & 22nd December at 10AM. Its FREE &
you can write the test at out center. Visit OUR WEBSITE to know more about us.
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HISTORY, ART & CULTURE
Guru Nanak and Sikhism
In news
The rising prominence of Kartarpur corridor.
In syllabus
Indian culture will cover the salient aspects of Art Forms, Literature and Architecture
from ancient to modern times.
Dimensions
1. Sikhism as part of Bhakti and Sufi traditions
2. Central aspects of its philosophy
3. Sikhism and Mughal state
4. Sikhism after Guru Nanak
5. Emergence of new reforms in modern age
Namdhari
Nirankari
Singh sabha
Akali
6. Relevance to today’s problems and Sikhism ethics
Sikhism as part of the Bhakti and Sufi traditions
Bhakti and Sufi movements in medieval India were part of the socio-religious reform
movements which tried to change the fundamental moorings of both religious
philosophy and the unfair social institutions and practices. In this attempt Bhakti
to one Monotheistic god (either nirguna or saguna) formed the fundamental tenant
of the movement. This bhakti based monotheism rejected the rituals, Brahmanical
dominance and brought religion closer to individual heart and made worship a
personal affair. Bhakti and Sufi movements emphasized on the fundamental equality
of all gods creations. This emphasis lead to a departure from the homo-
hierarchical (caste, class, status) society of the day. These movements lead to
emergence of an un-hypocritical vision of god and his relation with his Bhakta which is
based on love and devotion.
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Sikhism is a part of this reform movement which believes in a monotheistic formless
god. Sikhism because of its strong organizational structure and continuous lineage
of enlightened gurus transcended the limits of a reform movement and established
itself as an organized religion. The essential aspects of Sikhism as a religion are
Sikhism religious and social philosophy
1. Based on the belief in one God, the Sikh religion recognizes the equality of all human
beings and is marked by the rejection of idolatry, ritualism, caste and
asceticism. The ten Sikh Gurus preached a simple message of truth, devotion to
God and universal equality.
2. Sikhism is considered as a syncretistic religion, a combination of both Hinduism
and Islam, and also having independent beliefs and practices.
3. When there were conflicts between Hindus and Muslims its message was one
of reconciliation and peace.
4. Truth is high but higher still is truthful living is the percept of Nanak which gives
great importance to individual conduct.
5. His philosophy is not world negating but is world reaffirming. He preached
the middle path and considered that one can make spiritual progress even when he
is a householder. This message broke down the artificial barrier created
between spirituality and duty.
6. His philosophy revolved around remembering god, earning livelihood through
honest means and sharing fruits of ones labor with others.
7. His preaching’s are based on equality of status of all human beings which he
emphasized through sangat and pangat which means community kitchen and
eating together by sitting on the floor.
8. Because of his teachings which emphasized on good actions and transcended the
boundaries of colour, caste and creed Guru Nanak had become equally popular with
the Hindus and Muslims of his time.
9. Kartarpur is the spiritual commune established by Guru Nanak in his final days.
10. Guru Granth sahib the holy text of the Sikhs is a standing testimony of
the syncretism and the universalism of Sikh religion as it contains not just the
hymns of the gurus but also the hymns of Jaidev of Bengal, Namdev and Parmanand
of Maharashtra, Sadhna of Sindh, Rama Nand, Kabir and Ravidas from Uttar Pradesh,
and the famous Sufi saint Sheikh Farid (Baba Fariduddin) from patan in Pakistan.
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11. The emphasis on honest living and sharing one’s earning with others laid the
foundation of an egalitarian order.
12. It teaches followers to transform the “Five Thieves” (lust, rage, greed,
attachment, and ego) to lead an ethical life.
13. Sikh Gurus laid the foundation for an ideal society with emphasis on interfaith
dialogue, religious freedom and responsibility towards fellow beings.
14. The Sikh Gurus not only denounced the caste system but also provided the basis
for a casteless society.
15. Through constant meditation in god’s name, good actions and living a detached
life one can attain Sach Khandwhich is enlightenment according to Sikhism.
Mughals and Sikh gurus
Guru Nanak was preaching his philosophy while Babur was building the foundations of
his Mughal Empire. Akbar had a cordial relation with the Sikh Gurus and even
participated in Sanghat and Panghat. The conflict between the Mughals and Sikhs
started during the reign of Jahangir because of his execution of Guru Arjun for
supporting the claim of prince Khusrau to the throne. This conflict lead the sixth guru
(Guru Hargobind) to establish the concepts of Miri (temporal) and Piri
(spiritual) which represented the union of both temporal and spiritual authority in the
hands of the guru leading to conversion of Sikhism into a political movement from an
essentially socio-religious organization.
The souring of the relations took a new turn with the accession of Aurangazeb to
Mughal gaddi. The Sikh Gurus were favorably disposed to the accession of Dara Shiko
which made Aurangazeb persecute the Gurus and the 9th Guru of Sikhs Guru Tegh
Bahadur was executed by Aurangazeb. This act converted Sikhism into an armed
revolt against the Mughals. Guru Gobind singh formed a Military brotherhood
called Khalsa and fought battles of Chamkur and Anandapur with Mughals. He wrote a
letter of condemnation to Aurangazeb chastising him for his moral degradation which
is called the Zafarnama or Fathenama.
There after the institution of the guruship as a sucession ended and the guruship was
placed permanently with the Granth. Banda Bahadur emerged as the military head of
the Sikhs and he is captured and executed by Bahadur shah 1. There after the Sikh
khalsa broke down to Misls. These misls took advantage of the decline of Mughal
Empire and the continuous invasions from north-west by Nadir shah and Ahmed
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Shah Abdali. The vacuum created by the declining Mughal state is effectively filled
by Ranjit singh and his sukerchakia Misl.
Relevance to today’s problems (Sikhism ethics)
1. Today’s world is bogged down by the excessive materialism of the world. The
deep seated economic inequalities of the world are leading to a simmering
discontent across the world. The Sikh principles of compassionate ethics where
the earnings of an honest livelihood should be distributed among the less
fortunate is very relevant.
2. Corruption is the deep seated problem in India which is eating away the vitals of
the nation inside out the emphasis on honest livelihood by Guru Nanak if
understood in the right spirit will provide a way of changing the individual
perspective.
3. Communalism is a lurking evil in the Indian societal context the essential
syncretism and universalism which are part of Sikhism can help in solving this
issue to a certain extent.
4. The individual is the essential building block of the family, society, nation so the
change should start at the individual level and the five thieves should be
transcended to build fairer systems and institutions.
5. If understood in the right spirit Sikhism like all other religions of the world tries
to preach a duty oriented life overlaid by compassion to all sentient beings with a
continuous interface with God.
Manifest pedagogy
This topic has been chosen for various reasons. The active role of Sikh diaspora in US,
the opening of Kartapur corridor between India and Pakistan and the MEA celebrating
Guru Nanak’s 550th birth celebrations next year. This topic is highly relevant as well
due to the increasing number of questions on Culture specifically Religion in the recent
years.
Test yourself: Mould your thoughts
Sikhism in India started as a religious reform movement with social implications but
finally converted to a separate religion with political consequences. Trace this
evolution.
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INDIAN SOCIETY
Polio and its variants
In news
Contamination of some batches of a polio vaccine threatens to bring back a vaccine
strain of polio believed to have destroyed years ago.
In syllabus
Issues relating to development and management of social sector/services related to
health
Static dimensions
1. Polio and its variants
2. Diseases eradicated in India
Current dimensions
1. Contamination of polio vaccine
2. Chances of recurrence of polio in India
Content
What is Polio?
Poliomyelitis (polio) is a highly infectious viral disease, which mainly affects young
children. The virus is transmitted by person-to-person spread mainly through the
faecal-oral route or, less frequently, by a common vehicle (e.g. contaminated water or
food) and multiplies in the intestine, from where it can invade the nervous system and
can cause paralysis.
Initial symptoms of polio include fever, fatigue, headache, vomiting, stiffness in the
neck, and pain in the limbs. In a small proportion of cases, the disease causes paralysis,
which is often permanent. There is no cure for polio, it can only be prevented by
immunization.
Key Points
Polio (poliomyelitis) mainly affects children under 5 years of age.
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1 in 200 infections leads to irreversible paralysis. Among those paralysed, 5% to
10% die when their breathing muscles become immobilized.
Cases die to wild poliovirus have decreased by over 99% since 1988, from an
estimated 350 000 cases then, to 22 reported cases in 2017. As a result of the
global effort to eradicate the disease, more than 16 million people have been
saved from paralysis.
As long as a single child remains infected, children in all countries are at risk of
contracting polio. Failure to eradicate polio from these last remaining strongholds
could result in as many as 200000 new cases every year, within 10 years, all over
the world.
In most countries, the global effort has expanded capacities to tackle other
infectious diseases by building effective surveillance and immunization systems.
Its Prevalence and Cure
Polio does still exist, although polio cases have decreased by over 99% since 1988, from
an estimated more than 350000 cases to 22 reported cases in 2017. This reduction is
the result of the global effort to eradicate the disease.
Today, only 3 countries in the world have never stopped transmission of polio
(Pakistan, Afghanistan and Nigeria).
Despite the progress achieved since 1988, as long as a single child remains infected
with poliovirus, children in all countries are at risk of contracting the disease. The
poliovirus can easily be imported into a polio-free country and can spread rapidly
amongst unimmunized populations. Failure to eradicate polio could result in as many
as 200000 new cases every year, within 10 years, all over the world.
There is no cure for polio, it can only be prevented. Polio vaccine, given multiple
times, can protect a child for life.
Vaccines
Oral polio vaccine (OPV) contains an attenuated (weakened) vaccine-virus, activating
an immune response in the body. When a child is immunized with OPV, the weakened
vaccine-virus replicates in the intestine for a limited period, thereby developing
immunity by building up antibodies. During this time, the vaccine-virus is also excreted.
In areas of inadequate sanitation, this excreted vaccine-virus can spread in the
immediate community (and this can offer protection to other children through
‘passive’ immunization), before eventually dying out.
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Circulating Vaccine-Derived Poliovirus (cVDPV)
On rare occasions, if a population is seriously under-immunized, an excreted vaccine-
virus can continue to circulate for an extended period of time. The longer it is allowed
to survive, the more genetic changes it undergoes. In very rare instances, the vaccine-
virus can genetically change into a form that can paralyse – this is what is known as a
circulating vaccine-derived poliovirus (cVDPV).
The Global Polio Eradication Initiative (GPEI)
The initiative is a public-private partnership led by national governments with five core
partners – the World Health Organization (WHO), Rotary International, the US Centres
for Disease Control and Prevention (CDC), the United Nations Children’s Fund
(UNICEF) and the Bill & Melinda Gates Foundation. Its goal is to eradicate polio
worldwide.
Endgame Strategic Plan of GPEI
Detect and interrupt all poliovirus transmission
Strengthen immunization systems and withdraw oral polio vaccine
Contain poliovirus and certify interruption of transmission
Transition planning for polio’s legacy
Polio and India
India’s success in eliminating wild polioviruses (WPVs) has been acclaimed globally.
The World Health Organization formally declared India polio-free after three years
with no new cases. It said the milestone means the entire Southeast Asian region, home
to a quarter of the world’s population, is considered free of the disease.
However, it is still possible polio circulates under these circumstances, as was the case
for Nigeria, where a particular strain of virus resurfaced after five years in 2016.
India’s Experience with Polio
Until early 1990s India was hyper-endemic for polio, with an average of 500 to 1000
children getting paralysed daily. In spite of introducing trivalent oral poliovirus
vaccine (tOPV) in the Expanded Programme on Immunization (EPI) in 1979, the
burden of polio did not fall below that of the pre-EPI era for a decade.
One of the main reasons was the low vaccine efficacy (VE) of tOPV against WPV types
1 and 3. The VE of tOPV was highest for type 2 and WPV type 2 was eliminated in
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1999 itself as the average per-capita vaccine coverage reached 6. The VE against
types 1 and 3 was the lowest in Uttar Pradesh and Bihar, where the force of
transmission of WPVs was maximum on account of the highest infant-population
density.
Interruption
Transmission was finally interrupted with sustained and extraordinary efforts.
During the years since 2004 annual pulse polio vaccination campaigns were
conducted 10 times each year, virtually every child was tracked and vaccinated –
including in all transit points and transport vehicles
Monovalent OPV types 1 and 3 were licensed and applied in titrated campaigns
according to WPV epidemiology and bivalent OPV (bOPV, with both types 1
and 3) was developed and judiciously deployed.
Elimination
Elimination of WPVs with OPV is only phase 1 of polio eradication. India is poised to
progress to phase 2, with introduction of inactivated poliovirus vaccine (IPV), switch
from tOPV to bOPV and final elimination of all vaccine-related and vaccine-derived
polioviruses. True polio eradication demands zero incidence of poliovirus infection,
wild and vaccine.
Manifest Pedagogy
Health as a topic needs to be studies fro two perspectives
1. Science perspective
2. Governance perspective
Every topic in health has these two perspectives. For example even in Polio the science
behind it and the Governmental initiatives to tackle it, International collaborations to
manage it etc. Questions in mains can be either on Governance aspect or Science aspect.
To make it tougher UPSC may mix both. What is needed is a comprehensive
consolidation of material on this topic to deliver better answers as there have been
many policy initiatives in health in recent times under the new regime.
Test yourself: Mould your thoughts
How did global and national initiatives help India to eradicate the variants of polio?
Will it be fatal if polio recurs in India? Critically comment.
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Reservation
In news
Recent movement by affluent classes like Jats, Patidars, Marathas for reservation and
Maharashtra Government’s recent approval for Maratha demands
Placing it in Syllabus
INDIAN SOCIETY
1. Social Empowerment
POLITY, GOVERNANCE AND SOCIAL JUSTICE
2. Schemes for Vulnerable sections of population by Centre and States
3. Mechanism, Laws, Institutions and Bodies for protection and betterment of
Vulnerable sections Post-Independence India consolidation (not mentioned
explicitly)
Static Dimensions
1. Movements for reservation post-independence
2. Reservation as a policy
3. Constitutional basis for reservation
4. Doctrine of Affirmative Action
5. Reservation as a policy of social justice
Current Dimensions
1. Evergreening of Reservation
2. Reservation in promotions
3. Reservation in Private sector
4. Reservation movements by affluent classes
5. Need for a change in Reservation policy
Content
Reservation as a policy is based in the Doctrine of Affirmative Action.
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The doctrine says that State does not just have negative functions of law and order, in
certain cases the state has to understand certain affirmative action for the welfare of
the citizens, specifically for the welfare of the Vulnerable sections
The philosophical basis for Affirmative Action is provided for by the
Constitution of India in Article 14 through the phrase “equal protection of laws” which
provides the authority to the state to treat citizens “unequally under unequal
circumstances”.
There are different ways of carrying out affirmative action for the vulnerable
sections, one of the ways being Reservation. Reservation as a policy has Constitutional
mandate and has been explicitly mentioned in various articles of the Constitution :
Art 15 (4) : Article 15 shall not prevent the State from making any special
provision for the advancement of any socially and educationally backward classes of
citizens or for the Scheduled Castes and the Scheduled Tribes.
Art 16 (4) : Nothing in this article shall prevent the State from making any provision
for the reservation of appointments or posts in favour of any backward class of citizens
which, in the opinion of the State, is not adequately represented in the services under
the State
Art 330 : Reservation of seats for SC/ST in Lok Sabha
Art 332 : Reservation of seats for SC/ST in State Assemblies (except in autonomous
district of Assam where there is only ST reservation)
The idea behind Reservation for SC/ST was very clear as there was an
identifiable criteria and there was definite time limit prescribed as well to achieve the
desired results. The problem was with the other group (the OBCs) for whom there was
no objective criteria.
Their movements for reservation was what constituted the crux of reservation
movements post independence.
Scenario in Post – Independent India
1. Landmark events in OBC movements for reservation
2. Art 15 (4)
3. Art 340 : Appointment of a commission to investigate the conditions of backward
classes.
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4. 1953 : Under Art 340, Kaka Kalelkar Commission appointed to identify the OBCs.
It submitted the report in 1955 but the report was not implemented
5. 1977 : With the coming of the Janata Party, Mandal Commission was constituted.
The report was implemented under V P Singh government in 1990. With this
OBCs which were earlier an economic power started getting political recognition
as well.
6. 1993 : Supreme Court judgement on Mandal Commission in Indira Sawhney case,
in the judgement 2 points are relevant :
a. Concept of creamy layer was devised to exclude affluent classes from
reservation benefits
b. Reservation should not breach the 50% limit
7. 2006 : 93rd Constitutional Amendment was passed to implement OBC
reservation in educational institutions. This is also called Phase 2 of Mandal.
Parties like Congress who were earlier uninterested in Backward classes
(rejection of Kaka Kalelkar report) have been now proposing OBC reservation in
private sector as well. Reservation as a policy today has become a platform for parties
to mobilise votes. Parties like BJP, BSP, SP have focused on Caste mobilisation through
reservation politics, specifically focusing on OBC coalition.
Post 2000, Congress finding that OBC coalitions are inevitable to win elections
have started pushing for reservation in private sector as well. Ultimately, it has led to
Casteisation of Politics and Politicisation of Caste, making caste seem as an eternal
reality in India.
There is a general feeling among these groups that their economic
opportunities are grabbed by the backward groups. Recently, Maharashtra government
has accepted the recommendations of the State Backward Commission to provide for
the reservation of Marathas under Art. 15 (4) and 16 (4). Is it a right move and how
beneficial is it for national interest are certain questions to be discussed. Before this we
need to know the basic aims of reservation.
Basic Aims of Reservation
To correct historical injustices committed on certain groups like SC, STs.
To do away with both social and economic exclusion of these groups
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Recent demands by various affluent classes like Jats, Patels, Patidars and
Marathas for reservation point towards certain anomalies in reservation as a policy of
affirmative action and social justice.
Anomalies in today’s reservation policy which have led to these movements
Ever-greening of reservation, which was originally thought to be a temporary
constitutional measure.
Reservation is mostly working in economic upliftment without social reform.
For instance an SC government servant still faces untouchability at the workplace.
Hence an economic standing of a person need not necessarily raise his social standing.
Reservation benefits being grabbed only by a few sections of disadvantaged
groups creating a new elite within that group further complicated by being
concentrated in a family.
Politicization of reservation, reservation against votes.
Lack of awareness among non-reserved categories, regarding the aims of
reservation as a policy which further complicates the matter.
Why these movements are misdirected?
a. The lack of economic opportunities is less a product of anomalies reservation
policies but more of agricultural crisis.
b. Jobless growth has been a common feature in recent times in India.
c. They are affluent classes and do not qualify the backwardness criteria. They are
socially powerful groups and hence, go against the basic aim of reservation
d. Reservation for Marathas in Maharashtra may not survive judicial scrutiny as it
will breach 50% limit.
e. The movements are politically motivated and have been mobilised for votes.
Reforms needed
Ever-greening needs to be ended through either restricting to some generations in a
family.
Restriction to some generations will also prevent the formation of new elite.
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Reservation should be backed by social engineering as it has proved ineffective in
attitudinal changes towards vulnerable sections.
Overall increase in job opportunities is required to correct the misconception that
lack of jobs is a product of monopoly by reserved categories.
Sudden withdrawal of reservation or reservation based on economic criteria
owing to popular pressure would make disadvantaged groups vulnerable and throwing
the baby along with the bath water. What is needed is reforms in the reservation
policies along with targeted interventions in certain sectors like agriculture, overall
growth in jobs and specific socio-economic development programs (employment) for
the socially powerful groups like Jats, Patidars, Marathas.
Manifest Pedagogy
Reservation as topic can be placed both in social justice (polity) and Indian
Society. Social Empowerment (Indian society) and Social Justice should not be studied
separately. Hence, MANIFEST 11 clubs these two sections under Indian Society only to
give an integrated picture of the topic. But care needs to be taken while writing
answers wherein if a topic is asked in Polity, Constitutional aspects of the topic should
be written first and social aspects later. Whereas, if the same topic is asked in Indian
Society, social aspects should be written first and then the constitutional aspects. It is
all a matter of perspectives and priorities.
Test yourself : Mould your Thoughts
The recent movements by different affluent classes demanding reservation point
towards the need for reforms in reservation policy. Critically analyse
POLITY AND GOVERNANCE
Kashmir Issue
This article can be well understood if you have read our previous article on: China-
Pakistan relations
In news
Governor dissolves legislative assembly of Jammu and Kashmir.
Placing it in syllabus
a. Post-Independent Indian consolidation
b. Indian society- Regionalism
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c. Indian polity- Federalism
d. International Relations – Bilateral (India-Pakistan relations)
Static dimensions
a. History of Jammu and Kashmir and its consolidation with India.
b. Article 370 and issue of Asymmetric
c. Regionalism in Kashmir and its effect on National Integrity.
d. Kashmir as an issue between India- Pakistan.
Current dimensions
a. Article 35A
b. Should article 370 be taken away?
c. Surgical strikes
d. Governor’s Rule and President’s Rule and their effect on Federal relations.
Content
Is the issue of Kashmir a border dispute or part of an ideological battle between
India and Pakistan ?
Kashmir has never been a purely border issue. It is a manifestation of ideological battle
between the two countries in the form of border dispute. This ideological battle is
about India believing in Secularism and Pakistan believing in a Theocratic State.
We can have a better understanding of the topic if we dwell on the history of Indo-
Pakistan relations through the prism Kashmir.
History of the Border problem w.r.t. Kashmir
Immediately after Independence, Boundary Commissions set up under India
Independence Act did not demarcate Jammu and Kashmir and Sir Creek as Jammu and
Kashmir was an independent state. The International Boundary was not extended to
that region.
Pakistan claimed Kashmir on the basis of Religion and invaded it in 1948. Maharaja
Hari Singh sought India’s help. The Instrument of Accession signed by the king of
Kashmir gave sole rights over Kashmir to India. In the 1948 war of Pakistan, Indian
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army recovered 2/3rds of the territory of the state. After which the matter was taken
to UN and by the UNSC resolution 47 three decisions were taken :
a. Withdrawal of troops
b. Plebiscite
c. UN Commission on India and Pakistan is formed
But this UN intervention did not consider Kashmir issue to be an aggression by
Pakistan or the internal issue of India and considered it as a bilateral issue between
India and Pakistan. But the stand of India was and is the same even today.
a. Accession happened legally through Instrument of Accession (IOA)
b. There is no need for Plebiscite as IOA is ratified by the Constituent Assembly of
the state which reflects popular opinion.
c. India is a Secular country open to all religions
But the unsettled nature of the dispute owing to ideological dispute led to the next
round of conflicts like –
1965 war and the subsequent Tashkent agreement.
1971 Bangladesh liberation war wherein through the Shimla agreement it is
agreed that the dispute should be bilaterally resolved.
With both India and Pakistan becoming nuclear capable countries the wars between
India and Pakistan started becoming Proxy.
After the 1962 war the Geographical status of Jammu and Kashmir is as below :
The state shares 3323 km of border with China and Pakistan of which 2260 km is
International Border and 814 km is LOC. The border is not properly demarcated
beyond NJ9842. As of today –
India controls Jammu and Kashmir, Ladakh and Siachen
Pakistan controls northern areas of Gilgit and Baltistan
China controls Aksai chin and Trans-Karakoram Tract and the tract was gifted to
China by Pakistan in 1963
By looking at the history and the geographical details we can now deduce various
stakeholders in the problem of Jammu and Kashmir and a solution is possible only
when the dynamics of each stakeholder is taken into account –
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a. State government of India
b. Separatists
c. Central government of India
d. Civil society
e. Pakistan
f. Alienated youth
g. Foreign powers (Pakistan and China)
The issue of Article 370
Indian federalism is an Asymmetric Federalism which is accommodative of the diverse
interests and is part of the project of national consolidation. As part of this project of
Asymmetric Federalism and the respect for the identity of Kashmiriyat Article 370 is
included in Constitution which provides a separate Constitution for Jammu and
Kashmir. The article has been included in the Constitution of India as part of temporary
provision to be revoked when Kashmir is well integrated with India.
But this Constitutional intention was never properly translated into practice as the
local institutions never developed properly. This trend has been continuing even today
with the recent example being the dissolution of State Legislative Assembly by the
Governor without conducting a floor test despite demands made by certain parties to
prove their confidence. This was completely against the procedural propriety
prescribed by the Constitution.
Hence the issue of revoking Article 370 does not arise as it was not properly
implemented in the first place.
Constitutional provisions with respect to Governor’s rule Kashmir
In case of failure of constitutional machinery in any other state of India, President’s
Rule is imposed under Article 356 of the Constitution. But in case of J&K, as per Section
92 of state Constitution, Governor’s Rule is imposed in the state only after the consent
of the President of India in case of failure of constitutional machinery for period of six
months. During the Governors rule, State Assembly is either suspended or dissolved. If
the Constitutional machinery is not restored before the expiry of this 6 month period,
the provision of Article 356 of the Constitution of India are extended to Jammu and
Kashmir and President’s rule is imposed in the state.
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In the recent case, the Governor violated the procedural propriety. J&K was under the
Governor’s Rule and the State Assembly was under the state of suspension and was not
dissolved. The decision to dissolve was taken when certain parties made a claim to
prove their confidence. The Governor being the Constitutional Head had to rightly give
a chance for floor test without which dissolution doesn’t make sense, instead the
Governor dissolved the house without a floor test.
Article 35A
Article 35A is a provision incorporated in the Constitution giving the Jammu and
Kashmir Legislature a carte blanche to decide who all are ‘permanent residents’ of the
State and confer on them special rights and privileges in public sector jobs, acquisition
of property in the State, scholarships and other public aid and welfare. The provision
mandates that no act of the legislature coming under it can be challenged for violating
the Constitution or any other law of the land. (The issue will be dealt in detail in the
upcoming weeks).
Manifest pedagogy
Jammu and Kashmir as a topic demands in-depth understanding from various angles
historical, political, social, geographical and international. It is only then an aspirant can
write a holistic and balanced answer.
Test yourself : Mould your thoughts
1. ‘The solution to Kashmir can make a beginning only through the implementation
of Asymmetric Federalism in the right spirit’. Critically examine the statement in
the context of the recent dissolution of the Legislative Assembly of Kashmir by
the Governor.
Criminalization of politics
In news
SC direction to Centre to establish Special Courts and the Executive’s continued neglect
Placing it in syllabus
a. Electoral Reforms (not mentioned explicitly)
b. Constitutional bodies (ECI)
Static dimensions
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a. Criminalization of Politics in India
b. Electoral Reforms in India
c. Role of Judiciary in decriminalizing politics
d. Role of ECI in decriminalizing politics
e. Criminalization of Politics and its impact on democracy
Current dimensions
a. Special Courts issue
b. Electoral reforms in recent times
Content
Criminalisation of politics means the entry of criminals into politics and contesting in
the elections held for the seats in the Parliament and State legislative assemblies.
Origin and growth of criminalization of politics in India
It is not a new phenomenon in India. What is new is the extent to which it has become a
dominant trend today
1975: 1st instances of “booth-capturing”
Until the late 1960s: the re-election rates of incumbents were high. Goons got
political favours for helping them win elections.
As political competition included an element uncertainty of re-election of incumbent
candidates leading to the entry of criminals in politics to maximize control over their
own survival and protection.
1969: Indira Gandhi banned corporate financing of elections which eliminated the
most important legal sourceof finance and this shifted financing went underground.
At the same time, the costs of contesting elections kept increasing due to a rising
population, increasing political competition further leading to the increase in
number of political parties from 55 in the 1952 general election to 464 in 2014
which brought the trend of giving freebies for votes.
This led parties to a competitive search for underground financing, and they played
into the hands of criminals and racketeers who had the means to acquire and
dispose of large amounts of cash without detection.
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Thus, parties fielded tainted candidates because they could contest an election
without becoming a burden on the party’s limited coffers.
Data from the last three general elections shows that the strategy was an electoral
success as candidates with criminal cases were three times more likely to win than a
“clean” candidate.
2014 elections: 17% of 5,380 candidates contesting the Lok Sabha election are
declared criminal charges in their affidavits submitted to the ECI; 10% have
declared serious criminal charges such as murder and rape charges.
Impacts on Democracy
Disrupts the constitutional ethos
Making our citizenry suffer at the hands of those who are a liability to our country
It goes against the free and fair principle of elections needed for a healthy
democracy
Criminals being part of government have nexus with different groups affecting the
independence of the working of the government
It increases the unfair governance based on principles of corruption, nepotism.
Provisions made against criminalisation of politics
Representation of People’s Act, 1951 provides the basic and central framework to deal
with criminalization of politics. Section (8) deals with this
Sec 8(1): A person convicted of an offence punishable under certain acts of Indian
Penal Code, Protection of Civil Rights Act 1955, Unlawful Activities (Prevention) Act
1967, Prevention of Corruption Act 1988, Prevention of Terrorism Act 2002 etc. shall
be disqualified, where the convicted person is sentenced to — (i) only fine, for a
period of six years from the date of such conviction; (ii) imprisonment, from the date of
such conviction and shall continue to be disqualified for a further period of six years
since his release.
Sec 8(2): A person convicted for the contravention of—(a) any law providing for the
prevention of hoarding or profiteering; or (b) any law relating to the adulteration of
food or drugs; or (c) any provisions of the Dowry Prohibition Act, 1961.
Sec 8(3): A person convicted of any offence and sentenced to imprisonment for not less
than two years [other than any offence referred to in sub-section (1) or sub-section
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(2)] shall be disqualified from the date of such conviction and shall continue to be
disqualified for a further period of six years since his release.
Sec 8(4): Notwithstanding anything 8[in sub-section (1), sub-section (2) or sub-section
(3)] a disqualification under either subsection shall not, in the case of a person who on
the date of the conviction is a member of Parliament or the Legislature of a State, take
effect until three months have elapsed from that date or, if within that period an
appeal or application for revision is brought in respect of the conviction or the
sentence, until that appeal or application is disposed of by the court.
Role of Supreme Court in criminalization of politics
In Lily Thomas Vs UOI case
SC nullified Section 8(4) as unconstitutional and void
Used wisdom from Art. 102(1) (e) and 191(1) (e) of the constitution.
102(1) (e): Parliament can make a law providing for circumstances whereby a
MP shall stand disqualified from the membership of either house of the
Parliament. Article 191(1)(e) says the same thing about MLAs
Although Parliament can make laws to “decide on disqualification”, it can’t
“preserve and protect” its members who have been convicted for crimes.
In total following important decisions came out of the controversy with respect
to Clause 4: Lily Thomas Case – 2013
SC struck down this clause as unconstitutional
It is a case of inequality and criminalisation
SC stated: Constitution allows parliament to make laws for disqualification and
not protection and preservation of membership of the house.
It will be Prospectively applied :Special courts formed for sitting candidates out
of the judgement of SC as it doesn’t apply retrospectively
Special Courts
Long delays in judicial proceedings have allowed the politicians with criminal
charges to contest in elections which have made the situation worse.
Thus fast track courts were proposed to exclusively try criminal cases against
politicians to decriminalise IND politics.
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SC directed Centre to set up special fast-track courts to deal with pending cases
against legislators, while acting on PIL filed by BJP leader Ashwini Kumar
Upadhyay who has sought a lifetime ban on all convicted politicians.
Centre told the SC that it had decided to set up 12 special courts throughout IND
to exclusively deal with 1581 criminal cases pending against MPs and MLAs
within a year.
As per the 11th Finance Commission analysis that one such court can dispose of
165 cases per annum.
Right to know about a candidate
This was one other step to curtail Criminalization of Politics. When the information
about a candidate is open to the public voters can make an informed decision while
voting. This brings transparency and hand fairness in elections.
In 1995 SC based on a petition filed directed that, every candidate contesting elections
has to disclose the following during nomination:
Education qualifications
Criminal background
Assets and liabilities of the candidate and his/her family
Out of the 3, the whole assets and liabilities decision wasn’t implemented but it was
recently implemented after further directions from the court. This shows a trend of
continued neglect from the Parliament and the Executive in this area.
RPA, 1951 – Sec 123(3)
This particular section was taken to Supreme Court for interpretation. The controversy
was related the word ‘his’ in the section. It says that a candidate can’t appeal votes on
basis of his caste, race, language, religion, etc. To make elections free of
communalization and identity politics Supreme Court in Abhiram Singh Vs. C D
Commachen – 1990 case ruled that the word ‘his’ here refers to voters and not the
candidate. As a result the candidate can’t appeal to voters on the above identities of all
voters. Through this the section gives a very broad meaning to the section and takes the
issue of decriminalizing politics one step forward.
Advantages of the ruling
Will lay the foundation of developmental politics
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De-communalise politics
It is a one step forward in decriminalizing politics
Role of ECI in decriminalising politics
ECI has recommended that even under trial Politicians in case of heinous crimes
must be barred for contesting elections provided the case is filed before 1 year of
elections and court has framed the charges to reduce malafide / false cases.
Introduction of NOTA (PUCL vs Union of India, 2014).
If a person is found guilty by a Commission of Inquiry then he/she shall be
disqualified from contesting elections.
Evidence is also of the opinion that FPTP electoral system be replaced by the 2-
ballot system under which a candidate is declared elected from a territorial
constituency on the basis of majority principle reducing the chances of a criminal
getting elected.
Along with 2-ballot system, the negative vote shall also be introduced. This step
has already been taken as per Supreme Court judgment.
Despite various initiatives taken by the Supreme Court and Election Commission of
India Criminalization of politics has not moved anywhere due to following two reasons
1. Continued neglect by Legislative and Executive wings on the issue
2. Lack of focus on Intraparty reforms
Intraparty Reforms – Inevitable for decriminalisation of politics
Problems within parties in India which promotes Criminalization
Dynastic politics promotes transfer of power irrespective of the criminal
background of a candidate
Personality factors being dominant today make parties work on whims and
fancies rather than rules promoting criminals to stay in power
Lack of transparency in funding to the parties
Reforms:
Proposal that parties must be regulated by parliamentary law which should
mandatorily include provision for de-recognition of parties which provide tickets to
criminals and those which promote criminalization of politics.
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Manifest Pedagogy
Criminalisation of politics should be studied as part of Electoral reforms topic. Electoral
reforms is one broad issue in Polity which has static dimension(reforms during and
after independence) and current dimensions which may run in the news till the point of
your exam. The best answer which can fetch maximum marks must include static
dimensions of a particular topic which is in news like the history of criminalization in
India to answer questions like special courts which is currently in news
Test yourself: Mould your thoughts
Intraparty reforms are inevitable to decriminalize politics in India. Do you agree with
the statement? Substantiate.
INTERNATIONAL RELATIONS
India – Afghanistan Relations
In news
High Peace Council on Afghanistan held recently
Placing it in syllabus
India and its neighborhood – Relations.
Static Dimensions
1. History of Foreign Invasion in Afghanistan
2. Indo – Afghan relations since 2000
3. Impact of Pakistan on Indo-Afghanistan relations
4. India aspiration of regional leadership and Afghanistan
5. Terrorism as an issue in Indo-Afghanistan relations
Current dimensions
1. Indo-Afghanistan relations under the new regime
2. Peace conferences on Afghanistan and India’s role in it
3. Issue of Good and Bad Taliban and India’s stand on it
Content
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Afghanistan is connecting link between Central Asia and South Asia. As part of Central
Asia it has been a playground for foreign powers over ages. In the modern age as part of
Cold War it becomes the theatre of Cold war. USSR invades Afghanistan in 1979. US to
counter USSR supports Mujahideen with the support of Pakistan, the fall out of which is
today’s Taliban. It is in the issue context one needs to know Indo – Afghanistan
relations
Historical Links
1. Buddhism – Ancient cultural link
2. Islam – Medieval India
3. Anglo-Afghan War to make Afghanistan a Buffer State under the British rule in
India
Chronology of landmark events in Indo-Afghanistan relations
1945 – Cold War: Afghanistan becomes a theatre
US supports Mujahedeen (IF) against USSR
(Mujahedeen are non – state actors)
US gets Pakistan’s support (Pakistan uses this support against India)
Pakistan also supports Mujahedeen
Use them against India for Kashmir
Exert influence on Afghanistan and Central Asia
1989: USSR withdraws
1996: Splinter group called Taliban emerges and comes to power
After collapse of USSR, power vacuum is seen and Pakistan supports Taliban to
set-up government in Afghanistan
India, Russia and Iran support “Northern Alliance” which is a legitimate
government
1999: Kandahar Hi-jack of IC814: Till then only Liaison with Afghanistan and no
permanent Diplomatic office hence India couldn’t bargain with the terrorists due to
lack of proper communication channels
2001: Northern Alliance comes to power: India – Afghan relations begin
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2001: Bonn Conference (This was the beginning of peace process for the region and the
country)
2002: India establishes a diplomatic mission in Afghanistan and begins soft diplomacy
2007: Afghanistan becomes member of SAARC
2011: India-Afghan Strategic Partnership signed
Importance of Afghanistan to India
Connecting link to Central Asia
Terrorism as a common threat
Involvement of Foreign powers in Afghanistan and its impact on India
India’s involvement in Afghanistan – gives ‘regional leader’ status to India
India is deeply involved in Afghanistan both bilaterally and regionally as well as part of
its peace process. India’s involvement is characterized by Soft diplomacy. India seeks to
involve itself through soft powerrather than militarily as India believes that it wins the
hearts and minds of Afghans.
Soft Power
It is a concept given by Joseph Nye in the context of excessive use of military power by
US and its futility in making any tangible gains for the country. Joseph Nye suggests US
to go for Soft Power. Soft power means, achieving an action, through co-opt in (willing
acceptance), which is sustainable and is more beneficial.
India’s best experiment of Soft power is in Afghanistan
Cultural diplomacy : Bollywood
Development Project :
Hospitals
Parliament
Selma dam/ friendship dam
Zaranj – Delaram road link between Chabahar and Afghanistan
Chabahar/Shahid Behesti port road link
Indirect Military Involvement
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No Hard Power
Just training Afghan army and other law & order forces – US withdrawal
after its Operation Enduring Freedomhas made this a prominent issue
today
US has been involved in Afghanistan completely after its Global War on terror after
9/11. After 9/11 Pakistan was given prime importance in its war against Pakistan. This
continued till Obama as part of his Af-Pak policy. But this got a shift with the coming of
Trump and his Af-Pak policy which replaced the earlier one
Trump’s Af-Pak Policy and its impact on India
1. Trump changed the policy now where India (and not Pakistan) will be its partner
for US in Afghanistan
2. Withdrawal of US forces within specific time which is in line with his America
First policy
Implications of the policy
Disadvantages for India:
India – Pakistan relations may be hampered
India – China relations may be hampered
China and Pakistan may get closer
India may be forced to be involved militarily
India may be forced to accept the Good Taliban and the Bad Taliban bifurcation of
US which India has been traditionally against.
Advantages in India
India’s rise as a regional leader will have positive implication against terrorism
Kashmir/Terrorist issue will be accounted as a global issue
India’s connection with Central Asia will be enhanced
Indo-U.S relations will be stronger
Good – Bad Taliban Issue
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Obama initiated this idea and this is being carried further by Trump. It gets a formal
recognition in Tashkent Declaration–2018which was an outcome of International
Conference on Afghanistan (ICoA)
Why USA and Trump is going for this separation and Dialogue with Good Taliban?
US withdrawal will be easier
Saves the image of US from being dented, by offering a diplomatic solution
In line with “America First” Policy of Trump
In 2018 High Peace Council initiated by Russia held recently Good Taliban
participated. India has sent two representatives unofficially. India is right now in a
dilemma to go ahead with the talks with Good Taliban.
India should wait and watch until there is a visible proof of Good Taliban shunning
process and being genuinely interested in the progress of Afghanistan as a nation and
Indo-Afghanistan relations a foreign policy issue.
Manifest Pedagogy
Afghanistan as an issue should be studied bilaterally and regionally. Hence a study just
focusing on bilateral relations would be incomplete. For a holistic preparation of
Afghanistan as a topic involvement of foreign powers historically and at present needs
to be known to examine its impact on India. The relation between India and
Afghanistan is always hyphenated with countries like Pakistan, US etc. so clubbing
Indo-Afghanistan relations with any other country and framing it as a question is
always a possibility in UPSC.
Test yourself: Mould your thoughts
Afghanistan is not only important bilaterally for India but also as a platform to launch
its Regional Leadership Policy. Critically comment
India – Vietnam relations
In news
India – Vietnam co-operation is on rise in recent times.
Placing it in syllabus :
International relations-Bilateral
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Static Dimensions
1. India and East Asia- pre cold war and post-cold war
2. India and ASEAN
3. Look East Policy -1
4. Look East policy-2
Current Dimensions
1. Act east policy and initiatives under it
2. India and ASEAN under Act East Policy
3. India- Singapore
4. India-Vietnam
Content
Relations Pre-cold war
Historically India good relations with East Asia.
1. Before Colonial rule they were based on strong economic ties and cultural
linkages established on Hinduism and Buddhism.
2. After the coming of the British the system of indentured labor lead to
establishment of Indian settlement’s and Diaspora in East Asia.
3. India supported the decolonization process of Indonesia, Vietnam, Laos.
During Cold War
The links between India and East Asia weakened during the cold war as the economic
and ideological perspectives were divergent.
1. Ideological differences : India was part of the non-alignment movement and was
tilting towards USSR whereas East Asia was part of SEATO and aligned to USA.
2. Economic differences : And the economic interests were also not synergetic as
India attempted to be a self-sufficient economy where as East Asian economies
are export lead.
Relations post-Cold War
Post-cold war the relations underwent a pivotal shift.
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As with the fall of USSR India started to look east and the east Asian countries started
looking west with the rise and assertion of china leading to converging interests. New
economic synergies emerged with LPG reforms in India and the search for new markets
by East Asian countries.
The relation has matured over phases
Look East Policy – 1
1. Started by P.V. Narasimha Rao.
2. it is based on Geo-Economics Model.
3. It is a product of the neo-liberal approach adopted by India.
4. It is an outcome of the new forces of globalization
5. This phase focused on mainly economic aspects of the relation.
Look East Policy – 2
1. Started by Vajpayee government.
2. It is an addition to LEP -1
3. Domestic component became very important.
4. There was a new emphasis on North East India.
5. Entire east Asia became the focus
6. Now a new strategic dimension is added to the earlier economic aspect of the
relation.
Act East Policy
Started by Modi government.
Based on 3C’s of Connectivity, Culture and Commerce.
This phase saw a more active and energetic engagement with East Asia like
Inviting the leaders of ASEAN to the republic day parade in 2018
Renewed focus on BIMSTEC
Strategic partnership signed with Singapore in 2015
Upgrading strategic partnership with Malaysia, Vietnam, Laos.
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Strategic partnership signed with South Korea in 2015.
25 years of ASEAN commemoration summit was celebrated.
Formation of QUAD
New alliances based on Blue Economy.
Recent concessions made in RCEP for India.
Recent Indo-Vietnam relations.
India-Vietnam
Historical Relations
Vietnam has been a close ally of India for over 70 years and is not limited to official
diplomatic ties. Vietnam is critical for India’s Foreign Policy at regional and systematic
levels and similarly, Vietnam has calibrated its domestic and foreign policy shifts and
where India’s relevance can fit into these policy changes.
Cooperation in various areas
1. Committed to enhancing joint co-production in defense (includes Technology
transfers)
2. Together they decided to address the Regional Security issues like Maritime
security in Indo-Pacific region, calling for free and open seas by holding a
bilateral level maritime security dialogue in early 2019.
3. Cyber security has also been made a part of Regional security.
4. India and Vietnam signed a joint statement in March 2018 which included the
following
5. 3 agreements were signed on :
Enhancing trade
Agricultural research
MoU on Cooperation between the Global Centre for Nuclear Energy
Partnership (GCNEP) and Vietnam Atomic Energy Institute (VINATOM) , to
enhance training and research collaborations – in line with the 2016 Civil
Nuclear Cooperation Agreement
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6. It reiterated the focus given on sub-regionalism and Mekong Ganga Cooperation
framework.
7. Joint exploration for Oil and Gas reserves off the Vietnam coast in South China Sea
by ONGC Videsh Ltd (OVL) and PetroVietnam(PVN).
8. India has committed to a $500 million Credit Line to Vietnam, part of which is
sued to procure Offshore Patrol Vehicles (OPVs).
What can be done to improve relations?
1. With Indonesia ratifying the India-ASEAN Services agreement on November 13,
New Delhi is a step closer to signing the Regional Comprehensive Economic
Partnership, bringing India to the forefront of the services sector globally. A
potential area of convergence in the realm of health care through joint public-
private partnership agreements can be explored by the two countries.
2. Jointly work on open, independent and prosperous Indo-Pacific region where
International rules are respected
Hurdles to Act East Policy
1. With the coming of Trump and his “America First” policy, US has become an
unreliable partner and initiatives like QUAD may not be possible.
2. Zero-Sum Approach in East Asian region may harm Indo-China relations.
So what is needed is a holistic policy towards East Asia based on Peaceful
Resolution of disputes without aligning with any of the countries against a particular
country. Provision like Non Alignment Movement is required to suit the architectural
Maritime Security, this was clearly brought about by the Prime Minister’s Indo-Pacific
Vision Statement at Shangri La.
Manifest pedagogy
Holistic preparation
East Asia as a region needs to be extensively covered under International Relations due
to renewed emphasis on the region by the new regime under Act East policy. The topic
has to be studied at multiple levels like policies towards the region, region as a whole,
relations with important regional organizations of the region and some time relations
with specific countries in the region which are in news.
Test yourself: Mould your thoughts
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1. Critically assess the success of Act East Policy with special focus on increasing
Indo-Vietnam co-operation in recent times.
ECONOMY
Regulation of payments and settlements in India – Updated
In news
The government – RBI differences came to a head after the financial markets were
squeezed when mutual funds halted buying commercial papers of NBFCs and Housing
Finance Companies.
RBI government meeting
RBI set up a committee to discuss the controversial issue of transfer of surplus
reserves to the government (ToR to be announced with consultation later)
Committee to decide on relaxation of lending norms for banks under the Prompt
Corrective Action regime
Banks would also get a breather in meeting the capital adequacy goals under the
Basel norms
Restructuring loans for MSMEs ( up to Rs.25 crores)
Relaxation of CRAR norms under BASEL III
Next board meet on December 14
1. Fixing a capital framework could free up RBI’s surplus reserves for transfer to the
central government. The government is struggling to meet its fiscal deficit target
of 3.3% of gross domestic product in the face of lackluster tax collections, and a
massive surplus transfer will help it in bridging the gap.
2. The central bank contends that the reserves are crucial for it to ring fence the
country at the time of a crisis.
3. Further, the board did not yield to demands of bringing down the capital
adequacy ratio in line with bare minimum levels prescribed by Basel III norms.
However, it has yielded and provided another year for implementation of the
capital conservation buffers.
4. The Board, while deciding to retain the CRAR (capital to risk weighted asset
ratio) at 9%, agreed to extend the transition period for implementing the last
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tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e.,
up to March 31, 2020.
5. The issue of easing the prompt corrective action (PCA) framework for weak
banks has also been referred to a committee, with the government pushing for a
review to allow a few state-run banks out of this framework. Eleven of the 21
state-run banks are under RBI’s PCA framework, which the government believes
is restricting credit flow to key sectors of the economy, including MSMEs.
6. However, there seems to be no consensus on addressing the liquidity shortage
faced by NBFCs flagged by the union government. Instead, RBI announced that it
would inject Rs.8,000 crore liquidity through open market operations on 22
November.
7. To ease the liquidity crunch faced by NBFCs, State Bank of India had in October
announced that it would buy loans worth Rs.45,000 crore from non-banks. In
addition, to ease the liquidity squeeze faced by housing financiers, the refinance
window of National Housing Bank was increased to Rs.30,000 crore.
Manifest Pedagogy
In our earlier articles on MANIFEST-11 we had explicitly mentioned that it is an
integrated endeavor to collect all current affairs related to a topic at one place. RBI
autonomy as an issue has already been dealt in our Payments and Settlements
Regulation article. Now that the same issue certain developments have happened it
doesn’t make any sense to make a separate article. We do not want to burden you and
waste your time. We want to make your preparation WISE
(EARLIER POST)
In news
Payments Regulator & RBI autonomy and section 7
Placing in the syllabus
Paper 3- EFFECTS OF LIBERALIZATION ON THE ECONOMY-Financial Sector Reforms
Static Dimensions
1. Payments and settlements systems Act ,2007
2. Instruments-UPI,QR codes, mobile wallets etc
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3. Cashless Economy or Digital Economy
4. Functions of RBI
5. Regulatory bodies in Financial Sector-SEBI,FSLRC etc
6. Vision for Payments ecosystem by RBI
Current Dimensions
1. Payment regulation
2. RBI vs Government
(a) Autonomy of RBI with respect to Payments
(b) Contingency Reserves of RBI
(c) Section 7
3. Prompt Corrective action
4. Issue of RBI autonomy in General
Content
The major issues of debate which emerged in the recent times with respect to RBI are
The finance ministry sent three different letters to the RBI in the past few weeks on
issues of
1. Prompt Corrective Action (PCA) dilution in general and withdrawal of PCA for
Public Sector Banks (PSB)
2. The second point of friction is governments insistence that RBI go soft on power
companies defaulting on loan repayments
3. The governor’s opinion on RBI’s capital reserves for providing liquidity
(siegniorage)
Payments Regulation
The Payment and Settlement Systems Act 2007, set up by the RBI, provides for the
regulation and supervision of payment systems in India and designates the apex
institution (RBI) as the authority for that purpose and all related matters. To exercise
its powers and perform its functions and discharge its duties, the RBI is authorized
under the Act to constitute a committee of its central board, which is known as
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the Board for Regulation and Supervision of Payment and Settlement Systems
(BPSS).
RBI Vision for Payments
Vision-2018 focuses on four strategic initiatives viz., responsive regulation,
robust infrastructure, effective supervision and customer centricity.
Responsive Regulation
Robust Infrastructure
Effective Supervision.
Customer Centricity
The broad contours of Vision-2018 revolve around the 5 Cs:
Coverage – by enabling wider access to a variety of electronic payment services
Convenience – by enhancing user experience through ease of use and of
products and processes
Confidence – by promoting integrity of systems, security of operations and
customer protection
Convergence – by ensuring interoperability across service providers
Cost – by making services cost effective for users as well as service providers
Payments Regulation: RBI Vs Government
Case against RBI
Regulation must maintain a level playing field within the payments
industry between the public sector and the private sector, and between
bank and non-bank players.
Regulation should encourage independent payment system providers,
which are not linked to payment participants, thereby minimising moral
hazard through conflict of interest. It is important that the payments regulator
does not run any payment systems. Presently, RBI runs real time gross settlement
(RTGS) and National Electronic Fund Transfer (NEFT), which are payment
systems. It is therefore necessary that RTGS and NEFT be spun off from RBI.
Encourage innovation in payments regulation and supervision, by
recognising that this is a fast-changing technology enabled business. Bring
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in relevant expertise into the regulatory body in order to improve the
regulation and supervision of this industry. Instead, it would be desirable to
draw the majority membership of the Board from people who have had direct
familiarity with payment processes or allied businesses such as BPOs, technology
companies or banks.
RBI representation on this Board should be confined to the Governor (as
Chairman) and the Deputy Governor in charge of Payments.
The Payments Regulator would need actively to sponsor the constitution of
a Payments Council, a body which would be representative of payment
system providers and users of payment systems. Regulations would be
issued by the Payments Regulator which would define the role which the
Council would play in advising the payments regulator on industry
standards and other related matters.
For example, the UK government formed the UK Payments Council in 2007, which
represents payment systems providers and user groups. The Council thereby
constitutes a consultative mechanism engaging all stakeholders with an interest in
payment systems. The European Payments Council operates in a similar manner.
All payment system providers should be governed by one consistent
legislative framework. (Stock exchanges and clearing houses are presently
outside the ambit of Payments in India).
A system of ‘proportionate regulation’ would be helpful, allowing nascent
businesses to adapt technology solutions without undue regulatory
intervention, while requiring systemically important businesses to submit
to stronger regulatory oversight.
Case for RBI
Payments should remain with RBI. As the very nature of payments is completely
integrated with money market and payments being
Sub-set of currency
Underlying bank account for payment systems
Dual regulation over such instruments will not be desirable.
Payment system is bank-dominated
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The Payments Regulatory Board (PRB) must remain with the Reserve Bank and
headed by the Governor, Reserve Bank of India. It may comprise 3 members
nominated by the Government and RBI respectively, with a casting vote for the
Governor to ensure smooth operations of the Board.
Debates on RBI Autonomy
Traditionally, it is quite natural for the government and the central bank to be at
loggerheads with each other. This can be explained by the inflation growth dynamics.
Here, the former is concerned with high growth and the latter is concerned with
controlling inflation.
However, in India these issues took an ugly turn with the government demanding
certain privileges from the RBI over and above its mandate:
1) Request for higher dividend from RBI to cover up fiscal deficit will lead to balance
sheet maintenance concerns.
2) Governments insist that public sector banks lend more to NBFCs to manage their
liquidity crisis.
3) Dilution demand for the current framework of Prompt Corrective Action standards
for recovery of NPAs.
4) The lack of regulatory mechanism for Public Sector Banks and Powers vested with
RBI in this regard including appointment decisions of board members and
chairpersons.
5) Leaving out key aspects of financial intermediation such as payments ecosystem
outside the ambit of the RBI.
6) Dictating orders to RBI as under section 7 which is over bearing on the inference of
the RBI.
Contingency reserves
The RBI keeps a large reserve of cash in its money jar (contingency reserves and
surplus with RBI), which the government is looking to dip its fingers into, financial
analysts and economists say. The government may be of the view that the RBI’s large
reserve cash, if it is sitting idle, may be put into use. But the RBI is called the “lender of
last resort” for a reason — it may need its reserves to step in if a crisis threatens to
bring down the entire financial system.
SECTION 7
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The central government for the first time in 83 years has issued RBI Section 7 Act,
1934.
1. Section 7(1) of the RBI Act says: “The Central Government may from time to time
give such directions to the Bank as it may, after consultation with the Governor of
the Bank, consider necessary in the public interest.”
2. Section 7(2) gives the government powers to entrust the running of the RBI to its
board of directors.
Recently the government has issued statements on section 7 of RBI act showing that it
has the power of veto over RBI decisions. Thus underlining that the RBI’s autonomy is
tempered by its accountability to government. Section 7 is certainly available to the
more powerful side; but just as the weapon is a deterrent never to be used, so is Section
7. The need of the hour is to settle the differences through deliberation.
Manifest pedagogy
In prelims UPSC may focus on conceptual issues such as Contingency Reserves,
dividend payments to government, Section 7, Prompt Corrective Action and functions
of RBI in general. In Mains, questions regarding autonomy and independence of the
institutions and desired changes which are a cause of conflict may be touched upon.
Test yourself: Mould your thoughts
Briefly explain the rise of alternative payment instruments in India. Also, highlight the
key issues involved in governing the Payments Regulation in India.
Cruise tourism
In news
Cruise tourism terminals
Placing in the syllabus
Infrastructure- Tourism
Static Dimensions
1. Importance of tourism in Indian Economy
2. Demand for tourism infrastructure in coastal states
3. Demand for cruise tourism by Indians
4. Development of ports and Sagarmala
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Current Dimensions
1. Cruise from Mumbai to Goa
2. Development of NW-1
3. Cruise tourism Policy
4. Mumbai Docks development for cruise terminal
5. Easy access to foreign tourists and ease of travel permits (Ex; Andaman)
6. Cruise tourism in North-East and Bangladesh corridor
Content
Definition
Cruise tourism is a form of travelling for leisure purposes, involving an all-inclusive
holiday on a cruise ship of at least 48 hours, according to a specific itinerary in which
the cruise ship calls at several ports or cities.
Cruise tourism is seen as a potential growth enabler for the tourism industry as a
whole. This has been made possible due to several factors such as a rise in standard of
living, desire to have new experiences. Traditionally, popular cruise tourism
destinations were centered on Europe, South East Asia etc. However, if we combine
India’ rich natural and cultural heritage along with all the facilities of cruise tourism it
can help leverage India position in the global tourist map.
Policy
The Cruise Shipping Policy of the Ministry of Shipping was approved by the
Government of India on 26th June, 2008. The objective of the policy is:
1. Make India as an attractive cruise tourism destination with the state-of-the-art
infrastructural and other facilities at various parts in the country;
2. Attract the right segment of the foreign tourists to cruise shipping in India;
3. Popularize cruise shipping with Indian tourists.
The Ministry of Tourism has accordingly included promotion of Cruise Shipping under
its “New initiatives”.
A Steering Committee has been constituted under the chairmanship of Secretary
(Shipping) that would act as a nodal body to address all issues regarding Cruise
Tourism.
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Action Plan
The ministry has recently formulated an action plan for realising the full potential of
cruise tourism in the country.
The Action Plan that has emerged from these deliberations focuses on developing
identified sites as attractive tourist destinations and generating awareness about them
both within the country and abroad; ensuring cleanliness and operational efficiency.
The Action Plan lays a lot of emphasis on publicising the tourist destinations within the
country and abroad through regular interactive sessions with all stakeholders.
Government of India has taken several steps to promote cruise tourism in the
country. These include:
* Certainty of berth to cruise ships
* Ousting charges have been removed – this has reduced overall cost
* Simplified SOPs issued for processes to be observed by multiple agencies like port
authorities, customs, immigration, security, state government, ship agents, tour
operators, etc
* E-landing card system is ready for ease of travelling among Indian ports
* E- visa introduced for online and on arrival visa facilities
* Cabotage waived for foreign cruise vessels on Indian shores enabling passengers to
board the vessel at Indian ports for voyage along Indian shores (Cabotage: levy on
foreign vessels to service domestic ports)
* New cruise terminals to be constructed
Reputed consultant appointed by the Shipping Ministry to draw up a road map for
cruise tourism in India. They have projected that the number of tourists is likely to
go up to 4.5 million by 2042-43.
Manifest Pedagogy
Why was this topic chosen?
Waters are the new focus of the government both Nationally and Intentionally. At the
national level there is Sagarmala, National Waterways project, Jal Marg Vikas project. At
the bilateral and international level there is Sagarmala, Project Spice Route, Project
Mausam, Cruise tourism agreements with West Asian countries and other maritime
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security initiatives vis-à-vis OBOR of China. Aspirants generally focus on Security and
Bilateral aspects leaving out other dimensions. The best way to study it at four levels
1. Geographical aspects like Waterway routes, important places connected on maps,
cultural significance if any.
2. Economic aspects like tourism industry in India
3. International and Bilateral engagements in this area
4. Environmental impacts if any of such projects
Test Yourself: Mould your thought
Development of cruise tourism is a golden opportunity both for employment and
regional development? Discuss
RCEP Negotiations and India
In News
RCEP Meeting in Singapore for early year end deliverables of trade negotiations
Placing it in syllabus
Paper 2: International Relations
Paper 3: Trade policy as part of LPG Reforms
Static Dimensions
1. What is RCEP?
2. Concept of G2 – USA and China
3. Free Trade Agreements
4. ASEAN, ASEAN+3, ASEAN+6
5. Relevance of WTO
6. TFA (Trade Facilitation Agreement), GATS, GATT,TRIMS,TRIPS and AoA
(Agreement on Agriculture)
Current Dimensions
1. Advantages and Disadvantages for India
2. India’s Economic Vision
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3. Neo-Protectionism
4. Indian Diaspora
5. Naval supremacy and higher participation in global institutions like UN
Content
RCEP – Regional comprehensive Economic
Partnership
RCEP is an ASEAN-centred proposal for a regional free trade area, which would initially
include the ten ASEAN member states and those countries which have existing FTAs
with ASEAN – Australia, China, India, Japan, Republic of Korea and New Zealand.
The 16 RCEP participating countries account for almost half of the world’s population,
over 30 per cent of global GDP and over a quarter of world exports.
The objective of launching RCEP negotiations is to achieve a modern, comprehensive,
high-quality and mutually beneficial economic partnership agreement that will cover
trade in goods, trade in services, investment, economic and technical cooperation,
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intellectual property, competition, electronic commerce, dispute settlement and other
issues.
New Trends
What should India be doing?
An agenda of what will hold India in good stead for the next quarter century, regardless
of how the world shapes up.
Reforms for India’s engagement with the world at large
1. Champion the cause of globalization as movement of labour, goods, and services
is critical for India’s growth.
2. Retain flexibility in terms of alignment: be open to larger partnerships and global
projects, as well as unilateral action.
3. Partner with other middle powers, especially those concerned by G2 dominance.
How will this affect India?
With an economic boom behind it, the middle class is large, aspirational, and assertive.
Concerns about inequality and India’s position on the global stage are present,
especially due to the side-lining of the G20. Since both the US and China want access to
India and other developing markets, there is an opportunity for India to lead a market-
sharing bloc of non-G2 States. Export-driven growth becomes a strong possibility. The
US is unlikely to develop a closer strategic partnership with India, and China continues
its strategy of containment. This means that India must aggressively advance its
interests or risk being side-lined.
India should align politically with the US, and economically with China. G2 guarantees
should be used to secure peace and trade in the neighbourhood. India should
strategically liberalize some sectors of the economy, and be receptive to trade and FDI,
using its market power to get the best possible deals. Strong macroeconomic
fundamentals are a must. There should also be a push for domestic consumption and
import substitution. India can also focus on building charter cities and creating SEZs to
create employment.
Advantages for India
1. The strategy is also aligned to India’s Act East Policy which builds on the Look
East Policy for closer partnership with the Asian region.
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2. Changing geopolitics and growing focus on the Asia-Pacific region influenced
India’s decision to join RCEP.
3. Standardization of product lines at par with developing countries without tight
scrutiny of western regulations
4. Cultural synthesis of products such as market for handicrafts, Agricultural
products etc.
Disadvantages
However, the biggest challenge India is facing in RCEP arises from its trade deficit with
ten of the RCEP countries, particularly with China with whom India has a huge trade
imbalance.
1. Tariff levels- It was to be expected that given the tariff levels in the important
RCEP markets are already low, the negotiated tariff reductions from the Indian
side will be relatively greater.
2. Agricultural products- The huge concessions being sought by Australia in
agricultural products can be an extremely sensitive issue for India’s farmers.
Indian farmers need support from the government in view of their low
productivity and low income levels.
3. Services– the discussions have not gained much traction and India seems to be
not getting any meaningful market access.
4. Investment- application of Investor State Dispute Settlement (ISDS)
Recent developments (changes made for India)
India has a whopping $104 billion trade deficit with the 16-member Regional
Comprehensive Economic Partnership (RCEP) grouping, which is 64% of India’s total
trade deficit of 2017-18.
Negotiations have dragged on for almost five years, primarily because of India’s
reluctance to significantly open up its market, given the sensitivities around
agriculture- and labour-intensive domestic industries.
India claimed “big success” as members conceded to its demand to liberalize
their services market and allow movement of skilled professionals (Mode 4).
24th RCEP Auckland Round from 17-24th October 2018
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The Ministers acknowledged the good progress made in the negotiations so far with
successful conclusion of 4 chapters, namely
1. Economic and Technical Cooperation
2. Small and Medium Enterprises
3. Customs Procedures and Trade Facilitation
4. Government Procurement
However, in the recent Singapore meet countries dragged their feet on reaching
important milestones for the success of the agreement.
Manifest Pedagogy
Economic groupings and India’s place amongst global economic powers has been an
area which is a focal point in both Mains and Prelims. UPSC focuses not only on the
member states, it also pivots to the idea of cross comparisons such as India-RCEP and
relations with Japan, effect of RCEP on India’s engagement with other powers such as
USA etc.
Test Yourself: Mould your thoughts
India has to be selective in opening its markets in age of new protectionism. In light of
this statement analyse the impact of RCEP on India’s economy? Do you think it is
misguided given the large trade deficits India faces with participating members?
AGRICULTURE
Pollinators, their importance and how they are getting affected?
In news
Dwindling of pollinators
In syllabus
Paper 3
Major crops – cropping patterns in various parts of the country
Environmental pollution and degradation
Environment Conservation
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Static dimensions
1. Pollination and pollinators
2. Biodiversity and CBD
3. Farm production and Food Security
Current dimensions
Living Planet Report 2018
Content
Pollination is one of the most important mechanisms in the maintenance and
promotion of biodiversity and, in general, life on Earth. Many ecosystems, including
many agro-ecosystems, depend on pollinator diversity to maintain overall biological
diversity.
Pollination also benefits society by increasing food security and improving livelihoods.
Pollinators are extremely diverse, with more than 20,000 pollinating bee species and
numerous other insect and vertebrate pollinators. Therefore pollinators are essential
for diversity in diet and for the maintenance of natural resources.
In 2015, the Intergovernmental Science-Policy Platform on Biodiversity and
Ecosystem Services (IPBES) found that pollinators lead to huge agricultural
economic gains.
The report estimated pollinator contribution in India to be $0.831-1.5 billion annually
for just six vegetable crops.
Nearly 70% of tropical crop species are dependent on pollinators for optimal yields.
Across India’s agrarian plains, plantations and orchards, millions of birds, bats and
insects toil to pollinate crops. However, many of these thousands of species may be in
dangerous decline.
The decline of moths, bees, butterflies, hoverflies and other pollinators is undeniably
linked to human activity like
Monoculture cultivation: Large tracts of natural habitats have been cleared.
Use of pesticides and fertilisers: In a series of studies at the University of Calcutta,
researchers have showed that native Indian bees, when exposed to multiple
pesticides, suffer from memory and olfactory impairment, lower response rates,
and oxidative stress which damages cells.
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In Kashmir, researchers have pinned lowering yields of apple trees on the declining
frequency of bee visits. In north India, lowering yields of mustard cultivation may be
caused by disappearing pollinators.
The Convention on Biological Diversity (CBD)’s cross-cutting initiative on the
conservation and sustainable use of pollinators aims to:
Monitor pollinator decline, its causes and its impact on pollination services
Address the lack of taxonomic information on pollinators
Assess the economic value of pollination and the economic impact of the decline
of pollination services
Promote the conservation, restoration and sustainable use of pollinator diversity
in agriculture and related ecosystems
Solutions:
1. Promotion of organic farming
2. Lowering pesticide usage
3. Landscape management
4. Direct payment support to farmers to provide buffer strips for pollinators for
nectar- and pollen-rich plants
5. Forests can be restored to become thriving homes for pollinators
6. Fallow areas and government land can be used to plant flowering species for
pollinators
7. A key aspect of this year’s bi-annual Living Planet Report 2018 is the threat to
soil biodiversity and pollinators
Manifest Pedagogy
Agriculture has become a major topic for Prelims (Thanks to IFoS). Looking at the
number of questions in prelims, Manifest 11 has a separate section for Agriculture. It is
such a topic which has scope for many inter-disciplinary linkages be it science,
economy, society etc. This topic has to be covered very thoroughly.
Test yourself: Mould your thoughts
How fundamental is pollination in Agriculture Production? How anthroposphere has
affected this natural process? Suggest measures for sustainable agriculture.
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SCIENCE AND TECHNOLOGY
Gravitational Waves
In news
Question on validity of LIGO detections
In syllabus
Awareness in the fields of Space
Static dimensions
1. Gravitational waves
2. Electromagnetic Spectrum
Current dimensions
1. LIGO Experiment
2. VIRGO
3. IndIGO, the Indian Initiative in Gravitational-wave Observations
Content
What are Gravitational Waves?
Gravitational waves are ‘ripples’ in the fabric of space-time caused by some of the most
violent and energetic processes in the Universe.
Albert Einstein predicted the existence of gravitational waves in 1916 in his general
theory of relativity. Einstein’s mathematics showed that massive accelerating objects
(such as neutron stars or black holes orbiting each other) would disrupt space-time in
such a way that ‘waves’ of distorted space would radiate from the source (like the
movement of waves away from a stone thrown into a pond). Furthermore, these ripples
would travel at the speed of light through the Universe, carrying with them information
about their cataclysmic origins, as well as invaluable clues to the nature of gravity itself.
The strongest gravitational waves are produced by catastrophic events such as
Colliding black holes
The collapse of stellar cores (supernovae)
Coalescing neutron stars or white dwarf stars
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The slightly wobbly rotation of neutron stars that are not perfect spheres
Possibly the remnants of gravitational radiation created by the birth of the
Universe
Two-dimensional illustration of how mass in the Universe distorts space-time.
Why to detect Gravitational waves?
Historically, scientists have relied almost exclusively on electromagnetic radiation
(visible light, X-rays, radio waves, microwaves, etc.) to study objects and phenomena in
the Universe (some are trying to use subatomic particles, called neutrinos, as well).
Each of these sources of information provides scientists with a different but
complementary view of the Universe.
Though gravitational waves were predicted to exist in 1916, actual proof of their
existence wouldn’t arrive until 1974. In that year, two astronomers working at
the Arecibo Radio Observatory in Puerto Rico discovered a binary pulsar–two
extremely dense and heavy stars in orbit around each other.
In 1993, astrophysicists Russell Hulse and Joseph Taylor received the Nobel Prize
in Physics for their 1974 discovery of a binary pair of neutron stars 21,000 light
years from Earth. Seven years later, after tracking the radio emissions of one star
in the pair over a period of years, Taylor and two other colleagues noted that the
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time it takes for the two stars to orbit each other was decreasing exactly in a way
that general relativity predicted if the two stars were radiating gravitational
waves. Analyses of other binary neutron star systems confirmed this effect firmly
concluding that gravitational waves were not just theoretical.
Since then, many astronomers have studied the timing of pulsar radio-emissions
and found similar effects, further confirming the existence of gravitational waves.
But these confirmations had always come indirectly or mathematically and not
through actual ‘physical’ contact.
All of this changed on September 14, 2015, when LIGO physically sensed the
distortions in space-time caused by passing gravitational waves generated by two
colliding black holes nearly 1.3 billion light years away.
Artist’s Impression of a Binary Pulsar
Laser Interferometer Gravitational-wave Observatory (LIGO)
LIGO is the world’s largest gravitational wave observatory and a marvel of
engineering. Comprising two enormous laser interferometers located thousands
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of kms apart, LIGO exploits the physical properties of light and of space itself to
detect and understand the origins of gravitational waves.
LIGO (and other detectors like it) is unlike any other observatory on Earth. More
than an observatory, LIGO is a remarkable physics experiment on the scale and
complexity of some of the world’s giant particle accelerators and nuclear physics
laboratories. Though its mission is to detect gravitational waves from some of the
most violent and energetic processes in the Universe, the data collects may have
far-reaching effects on many areas of physics including gravitation, relativity,
astrophysics, cosmology, particle physics, and nuclear physics.
It is capable of measuring a distance on the order of 10-19meters required
inventing and refining innovative technology. Most of LIGO’s most impressive
technology resides in its
Seismic isolation systems (which remove unwanted vibrations)
Vacuum systems (to make sure the laser light is kept pure)
Optics components (to preserve laser light and laser power)
Computing infrastructure (to handle the mindboggling amount of data that LIGO
collects).
The processes that generate gravitational waves can be extremely violent and
destructive, by the time the waves reach Earth they are billions of times smaller. In fact,
by the time gravitational waves from LIGO’s first detection reached us, the amount of
space-time wobbling they generated was thousands of times smaller than the nucleus
of an atom! Such inconceivably small measurements are what LIGO was designed to
make.
VIRGO
Virgo is a giant laser interferometer designed to detect gravitational waves.
Virgo has been designed and built by a collaboration of
The French Centre National de la Recherche Scientifique (CNRS)
The Italian Istituto Nazionale di Fisica Nucleare (INFN)
It is now operated and improved in Cascina, a small town near Pisa on the site of the
European Gravitational Observatory (EGO), by an international collaboration of
scientists from France, Italy, the Netherlands, Poland, and Hungary.
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LIGO and VIRGO announce the detection of a black hole binary merger from June 8,
2017.
Question on validity of detections
LIGO’s feat was among the most electrifying announcements in recent years. Since
detecting this binary black hole (BBH) merger, the LIGO Scientific Collaboration (LSC)
has made six such observations. Five of these were mergers of black holes in very
different locations in space and with very different characteristics such as mass, and
one was the merger of a pair of so-called neutron stars (binary neutron stars).
Such mergers had been modelled theoretically even before the detection. The
measurement was made easier because the team had templates for the type of signals
to expect. The last few detections have been done in conjunction with another detector,
Virgo. After the first discovery, the LSC made public its data. Analysing this, in 2017 a
group of scientists questioned the validity of the first detection.
IndIGO: the Indian Initiative in Gravitational-wave Observations
IndIGO, is an initiative to set up advanced experimental facilities, with
appropriate theoretical and computational support, for a multi-institutional
Indian national project in gravitational-wave astronomy.
Since 2009, the IndIGO Consortium has been involved in constructing the Indian
road-map for Gravitational Wave Astronomy and a phased strategy towards
Indian participation in realizing the crucial gravitational-wave observatory in the
Asia-Pacific region.
The current major IndIGO plans on gravitational-wave astronomy relate to
the LIGO-India project. LIGO-India is a planned advanced gravitational-wave
detector to be located in India, to be built and operated in collaboration with the
LIGO USA and its international partners Australia, Germany and the UK.
The project recently received the in-principle approval from the Indian
government.
Manifest Pedagogy
The new observations and inferences on the phenomena that occur in the universe
always make one curious. So, is true with UPSC. The questions on Einstein’ theory of
relativity, Higgs Boson and space-time have proved it time and again. Hence, studying
these observations holistically will help one to handle any type of surprise questions.
Test yourself: Mould your thoughts
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What are gravitational waves? Explain the observations of LIGO. How LIGO detections
have created ripples in scientist fraternity?
GSLV Mk III
In news
GSAT-29 launch successful: ISRO takes another step closer to country’s first
manned mission
In syllabus
1. Science and Technology- developments and their applications and effects in
everyday life.
2. Achievements of Indians in science & technology.
3. Indigenization of technology and developing new technology.
4. Awareness in the fields of Space
Static dimensions
1. GSLV and GSLV Mk-III
2. GSAT 29
3. Cryogenic engine
Current dimensions
1. India’s space capabilities
2. Indigenization of technologies
3. Gaganyaan
Content
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GSLV Mk-III Specifications:
It is a three-stage heavy lift launch vehicle.
It has 3 stages:
With Two solid strap-ons (S200)
With a core liquid booster (2 Vikas L110 engines)
A cryogenic upper stage (C25) – powered by CE-20, India’s largest cryogenic
engine.
It is designed to carry 4 ton class of satellites into Geosynchronous Transfer Orbit
(GTO) or about 10 tons to Low Earth Orbit (LEO), which is about twice the
capability of GSLV Mk II.
Payload GSAT-29:
GSAT-29 is a multi-beam, multiband communication satellite of India.
This is the heaviest satellite launched from India.
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It carries Ka/Ku-band high throughput communication transponders.
It will bridge the digital divide of users including those in Jammu & Kashmir
and North Eastern regions of India.
It also carries Geo-stationary High Resolution Camera.
For the first time an optical communication payload is being used for data
transmission.
GSLV Mk III Launches till Date
Launches in the future:
Date Payload Orbit
3 January 2019 Chandrayaan-2 GEO
TBD GSAT-22 GEO
December
2021
Gaganyaan crewed orbiter(Indian Human Spaceflight
Programme) LEO
Cryogenic engine
SN Title Launch Date Payload
3 GSLV Mk III-D2 / GSAT-29 Mission Nov 14, 2018 GSAT-29
2 GSLV Mk III-D1 / GSAT-19 Mission Jun 05, 2017 GSAT-19
1 LVM-3 / CARE Mission Dec 18, 2014
Crew module Atmospheric
Re-entry Experiment
(CARE)
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A Cryogenic rocket stage is more efficient and provides more thrust for every kilogram
of propellant it burns compared to solid and earth-storable liquid propellant rocket
stages. Specific impulse (a measure of the efficiency) achievable with cryogenic
propellants (liquid Hydrogen and liquid Oxygen) is much higher compared to earth
storable liquid and solid propellants, giving it a substantial payload advantage.
However, cryogenic stage is technically a very complex system compared to solid or
earth-storable liquid propellant stages due to its use of propellants at extremely low
temperatures and the associated thermal and structural problems.
Liquid Oxygen (LOX) and Liquid Hydrogen (LH2) from the respective tanks are fed by
individual booster pumps to the main turbo pump to ensure a high flow rate of
propellants into the combustion chamber.
Oxygen liquefies at -183 ˚C and Hydrogen at -253 ˚C. The propellants, at these low
temperatures are to be pumped using turbo pumps running at around 40,000 rpm.
ISRO’s Cryogenic Upper Stage Project (CUSP) envisaged the design and development of
the indigenous Cryogenic Upper Stage to replace the stage procured from Russia and
used in GSLV flights.
Gaganyaan
Gaganyaan is a fully autonomous spacecraft designed to carry a 3-member crew
to orbit and safely return to the Earth after a mission duration of few orbits and
up to seven days.
The capsule is similar to the Soyuz-shaped re-entry spacecraft. The space capsule
will have life support and environmental control systems.
It will be equipped with emergency mission abort and emergency escape that can
be done at the first stage or second stage of the rocket burn.
Manifest Pedagogy
UPSC concentrates on some big events of ISRO. The questions on those events would
appear subsequently. Eg: MoM on 2014, Peace Prize to ISRO in 2015, IRNSS in 2017 etc.
Hence, GSLV Mk-III, payloads of it in the past like GSAT-19 and GSAT-29, and the future
payloads like Chandrayaan-2 and Gaganyaan become focal areas.
Test yourself: Mould your thoughts
GSLV Mk-III with indigenized upper stage cryogenic engine is a remarkable
achievement of ISRO. Comment. Will this lead India to unexplored space endeavours?
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ENVIRONMENT AND DISASTER MANAGEMENT
Forest Fire
In news
California forest fire
Placing it in syllabus
Disaster management
Ecology and environment
Static Dimensions
1. What is a forest fire?
2. Causes of forest fire
3. Impact of forest fire
Current dimensions
1. Incidents of forest fire in recent times
2. Climate change and forest fire
3. Forest protection strategies
4. National action plan on forest fires
5. NDMA guidelines.
What is Forest fire?
A forest fire is a natural disaster and poses a threat not only to the forest wealth but
disturb the bio-diversity and the ecology and environment of a region. Forests fires are
as old as the forests themselves. Natural fires have been a disturbance of several
ecosystems throughout evolution thus plants have adapted to this regime. Man-made
fires have also coexisted in equilibrium with ecosystems for centuries, but the
continuous increment in pressure on forests and unmanaged fire caused by
stakeholders, has led to adverse consequences for the diversity and structure of forests
A forest fire can be described as an unclosed freely spreading combustion, which
consumes the natural fuels of a forest that consist of duff, grass, weeds, brush and
trees.
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Causes of forest fire
Forest fires are caused by Natural causes as well as Man-made causes
Natural Causes
Many forest fires start from natural causes such as lightning which set trees on
fire
High atmospheric temperatures and dryness (low humidity) offer favourable
circumstance for a fire to start. In dry season, friction leading to sparks by rolling
stones in the mountainous areas may lead to forest fires
In bamboo areas, forest fires may occur by the rubbing together of clumps of dry
bamboos.
Volcanic eruptions also lead to forest fires naturally
In the past twenty years, the fire events in India have strongly been linked with
the presence of El Nino conditions affecting the monsoon movements.
Man-made causes
More than 90% forest fires are caused by human beings, deliberately (for
personal gains or rivalry) or merely due to negligence or just by accident. Forest
fires sometimes originate due to accidental or unintentional reasons.
Graziers and gatherers of various forest products starting small fires to obtain
good grazing grass as well as to facilitate gathering of minor forest produce like
flowers of Madhuca indica and leaves of Diospyros melanoxylon
The centuries old practice of shifting cultivation (especially in the North-Eastern
region of India and in parts of the States of Orissa and Andhra Pradesh).
The use of fires by villagers to ward off wild animals
For concealing the illicit felling – Smugglers and poachers many times start forest
fires to hide the stumps of illicit felling. The poachers use forest fires for
terrorizing wild animals and hunting too.
Fires started accidentally by careless visitors to forests who discard cigarette
butts.
Burning farm residue- After a harvest, farmers set fire to their agricultural fields.
Many times, when these fires are not put out completely, may spread to the
adjoining forest areas
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Impact of forest fire
Fires are a major cause of forest degradation and have wide ranging adverse ecological,
economic and social impacts, including:
Loss of valuable timber resources
Degradation of catchment areas
Loss of biodiversity and extinction of plants and animals
Loss of wildlife habitat and depletion of wildlife
Loss of natural regeneration and reduction in forest cover
Global warming- By causing the release of greenhouse gases (GHG), forest fires
contribute significantly to climate change. Warmer climate leads to forests
becoming dryer and degraded, which increases their vulnerability to fire.
Loss of carbon sink resource and increase in percentage of CO2 in atmosphere
Change in the microclimate of the area with unhealthy living conditions
Soil erosion affecting productivity of soils and production
Ozone layer depletion
Health problems leading to diseases
Loss of livelihood for tribal people and the rural poor, as approximately 300
million people are directly dependent upon collection of non-timber forest
products from forest areas for their livelihood.
Incidents of forest fire in recent times
California forest fire of 2018
Scandinavian forest fire in summers of 2018
El-Nino events and extensive forest fires of Australia in 2010
Forest fires of Uttarakhand and Himachal Pradesh in 2016
Forest fires of Western Ghats 2015 and 2017
Forest protection strategies in India
The policy on fires in Indian forests has historically been one of strict suppression. This
was first officially articulated in the Indian Forest Act of 1927, which considered the
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setting of fires a punishable offence. Yet, even today, almost a century later, fire
continues to be an annual phenomenon in almost all Indian forests. In addition, it made
mandatory for all forest- dependent people to provide assistance in preventing and
controlling fires. The extant National Forest Policy (1988) also stresses forest
protection against encroachment, grazing and fire. Furthermore, it advocates the
adoption of modern fire management practices for the prevention and control of forest
fires. In the wake of this, there have been a series of centrally sponsored forest fire
protection and control schemes since 1985, each of which has laid particular emphasis
on the adoption of modern techniques and equipment in the prevention and control of
forest fires. In addition, a set of national guidelines on forest fires, which was issued to
all states in 2000, stressed the importance of community involvement in forest fire
prevention and control through the Joint Forest Management (JFM) Program.
Forest fire and disaster management
After the Intervention of NGT, the central government has framed National Action
Plan on Forest Fire
Forest Risk Zonation and mapping
Prevention of forest fires
Effective communication strategy for awareness generation
Capacity building for communities
Increasing the resilience of forests to fires
Forest floor biomass management
Forest fire preparedness
Digitization of forest boundaries
Promoting greater adoption of the Forest Fire Alert System
Improving Ground based Detection
Strengthening engagement with local communities
Fire suppression through training of staff
Post fire management
Coordination with other agencies
Forest fire and NDMA guidelines
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The action plan should incorporate the following suggestions:
The action plan should aim to strengthen forest fire prevention, preparedness
and response mechanism across various levels within the forest department.
It should be developed after having an interactive consultation process with a
variety of mechanism across various levels within the forest department.
A framework to strengthen skills and increase capacities to effectively address
the menace of forest fires has to be provided to the forest department
Forest personnel’s services needs to be upgraded to manage forest fire and
reduce the risks.
Better coordination between key stakeholders at different levels, especially at the
local levels has to be ensured.
High professionalism on forest fire management has to be promoted among the
forest departments.
Partnerships based on complementarities and mutual comparative advantages
with other stake holders like NGOs and Community based organizations (CBOs)
Manifest Pedagogy
With increasing frequency of natural disasters the topic of Disaster management has
gained significance in UPSC. The prominent example of which is the Urban flooding
questions in UPSC 2017. In the light of forest fires in Himalayas and western Ghats and
also forest fires of California and Scandinavian countries this topic is very relevant to
UPSC. Interlinkage with climate change could also be one of the dimension.
Test yourself: Mould your thoughts
Assess the effectiveness of forest fire management strategies as part of disaster
management and suggest suitable measure.
ETHICS
Corporate Governance in India
In News
Crisis in NBFCs governance framework (Shadow Banks), IL&FS
Placing it in the syllabus
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Paper 3:Financial and Banking sector reforms as part of LPG Reforms
Paper 4:Corporate Governance
Static Dimensions
1. What is Corporate Governance?
2. Companies Act, 2013
3. Role of SEBI
4. Need of Corporate Governance and Principles
5. Guidelines issued by ICAI
Current Dimensions
1. Issues of Corporate Governance in India
2. IL&FS Crises
3. Reforms
4. Data Protection and privacy
Content
Corporate Governance
It is set of principles or guidelines on which a company is governed.
It ensures that the corporate works in a way it supposed to work to achieve the
desired goals.
It makes the corporations accountable to each stakeholder including, directors,
shareholders, employees, customers etc.
The term governance itself explains the meaning that it is an act of managing a
corporate entity. The entity of a corporation is separate from its officials which makes
corporate governance an important subject to study.
Corporate governance plays an important role to protect the rights of thousands of
shareholders, who have ownership in the company but do not play an active role in
governing day to day business activities.
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Corporate governance is a part of Indian corporate sector since the beginning but
corporate governance failure and fraud of Satyam Computer Services Limited increased
the concerns about corporate governance in India.
The need for Corporate Governance in India
In the last decade, corporate fraud and governance failure is occurring frequently
which is why we require good corporate governance in the country. India provides
proper norms and laws aligned with international requirements to govern a corporate.
Some of the important reasons are discussed below which raised the need for
corporate governance in India.
A corporate has a lot of shareholders with different attitudes towards corporate
affairs. Corporate governance protects the shareholder democracy by
implementing it through its Code of Conduct.
Large corporate investors are becoming a challenge to the management of the
company because they are influencing the decision of the company. Corporate
governance set the code to deal with such situations.
Corporate governance is necessary to build public confidence in the corporation
which was shaken due to numerous corporate fraud in recent years. It is
important for reviving the confidence of investors.
Society having greater expectations from corporate, they expect that corporates
take care of the environment, pollution, quality of goods and services, sustainable
development etc. code to conduct corporate is important to fulfil all these
expectations. Takeovers of the corporate entity created lots of problems in the
past. It affects the right of various stakeholders in the company. This factor also
pushes the need of corporate governance in the country.
Globalization made the communication and transport between countries easy
and frequent, so many Indian companies are listed with international stock
exchange which also triggers the need for corporate governance in India.
The huge flow of international capital in Indian companies are also affecting the
management of Indian Corporates which require a code of corporate conduct.
Principles of Corporate Governance
Corporate governance has evolved around certain key principles, which form the base
of rules and guidelines set for the corporate.
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Transparency: Disclosure of the relevant information about corporate in timely
and accurate manner is necessary. It helps stakeholder to know their rights and
day to day activity of the corporate.
Accountability: It ensures the liability of the person who takes decision for the
interest of the others. Hence persons like managers, chairmen, directors and
other officers should be accountable to other stakeholders of the corporate.
Independence: Independence of top manager is important for smooth
functioning of the corporate. Board of Director must work without the
interference of any interested party in the corporate.
Corporate Governance Framework in India
The Indian framework on Corporate Governance has been vastly in sync with the
international standards. Broadly, it can be described in the following:
The Companies Act, 2013 has provisions concerning Independent Directors,
Board Constitution, General meetings, Board meetings, Board processes, Related
Party Transactions, Audit Committees, etc.
SEBI (Securities and Exchange Board of India) Guidelines ensure the
protection of investors and have mandated the companies to adhere to the best
practices mentioned in the guidelines.
Accounting Standards issued by the ICAI (Institute of Chartered Accountants
of India) wherein the ICAI is an autonomous body and issues accounting
standards. The disclosure of financial statements is also made mandatory by the
ICAI backed by the Companies Act 2013, Sec. 129.
Standard Listing Agreement of Stock Exchanges applies to the companies whose
shares are listed on various stock exchanges.
Secretarial Standards Issued by the ICSI (Institute of Company Secretaries of
India) issues standards on ‘Meetings of the board of Directors’, General Meetings,
etc. The companies Act 2013 empowers this autonomous body to provide
standards which each and every company is required to adhere to so that they
are not punished under the Companies Act itself.
Issues in Corporate Governance in India
Although there exist many issues in the field of Corporate Governance especially in
India, an effort has been made to highlight only the major ones here:
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Board performance: The requirement of at least one woman director is
necessary, and also the balance of executive and non-executive directors are not
maintained. Evaluation is not performed from time to time and transparency is
lost somewhere. The performance is not result oriented. These requirements are
not always met with.
Independent Directors: Independent directors are appointed for a reason
which does not seem to be fulfilled in the current scenario. Even after SEBI
guidelines being issued to the corporates, for the appointment of an audit
committee or giving of a comprehensive definition of the independent directors,
the actual situation appears to be worse.
Accountability to Stakeholders: The accountability is not restricted to that of
the shareholders or the company, it is for the society at large and also the
environment. The directors are not to keep in mind their own interests but also
the interests of the community.
Risk Management: The risk management techniques are to be mandatorily be
undertaken by the directors as per the Company Laws and they have to mention
in their report to shareholders as well. This is not being done in the most sincere
manners required for the job.
Privacy and Data Protection: This is an important governance issue. Cyber
security has evolved to be the most important aspect of modern governance.
Good governance can only be achieved once the directors and other leaders in the
company are well known about the hazards in this field.
Corporate Social Responsibility (CSR): Being among the few countries to
legislate on CSR, it is mandatory for companies to invest minimum 2% of the
profits in the last 3 years for CSR activities. Otherwise proper reasons should be
mentioned in the reports in case of failure. The companies seem to be reluctant
towards making such investments.
NBFC Crisis (IL&FS)
The infrastructure Leasing and Financial Services Limited, a systemically
important non-banking financial company, has defaulted on its debt repayments. This
has created turmoil in the NBFC sector and in the financial markets. Many analysts
allege serious malpractices and fraud at IL&FS. Whatever the truth of these allegations,
the fundamental problem at IL&FS was that of illiquidity arising from the use of short-
term funds to finance infrastructure. The failure to address illiquidity early enough has
pushed the company towards bankruptcy.
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The essential lesson is that the conventional corporate governance regime is woefully
inadequate to deal with financial institutions.
Even though the Reserve Bank of India has stipulated governance frameworks for
banks and non-banking finance companies (NBFCs), they have been found wanting in
situations such as IL&FS. This calls for governance in financial institutions to be viewed
through a different lens altogether, and it is so for a number of reasons.
First, the traditional governance paradigm seeks to align the interests of the
shareholders on the one hand and the management of a company on the other. In
companies with concentrated shareholding, the alignment should extend to both
controlling and minority shareholders. This framework falls flat in its application to
financial institutions.
Often, the management’s incentives are pegged to shareholder value rather than
to creditor protection.
This has been evident from the global financial crisis when executive compensation
skyrocketed in companies that collapsed, an accusation now levelled against the IL&FS
management.
Second, the implications of a governance crisis in a systemically important financial
institution can be catastrophic to the financial markets and the economy.
No longer is governance a private matter among the board, management and
shareholders of the financial institution, but it has larger public repercussions.
For example, as in the case of IL&FS, an institution may take on short-term liabilities
while in possession of long-term, often illiquid, assets that create a stark mismatch
between assets and liabilities. If not addressed properly, this can leave a large number
of creditors in the lurch and paralyse the financial system.
Third, managements of large (“too-big-to-fail”) financial institutions suffer from moral
hazard problems. They assume excessive risks with the understanding that the
government will bail them to avoid the negative ramifications of failure of such a
financial institution. The above factors present in financial institutions shed light on
one aspect: excessive risk-taking.
Instead of curbing excessive risks, the shareholder-premised corporate
governance frameworks enables further risk-taking, and hence poses
inadequacies.
Manifest Pedagogy
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Issues such as bank failures, NPA and Insolvency and Bankruptcy have been in news.
UPSC may ask interdisciplinary questions relating aspects of financial reforms with a
broader scope of their impact on the economic system and business ethics. Further
issues like Satyam scam, global financial turmoil, too big to fail banks, etc. could be put
into context.
Moreover one should be ready to face related questions such as the exit
problem, chakravyuha challenge, twin balance sheet syndrome etc. One should be able
to recall aspects of The Companies Act and role and development of institutions such as
SEBI, ICAI etc.
Test Yourself: Mould your thoughts
What are Systematically Important Banks (SIBs)? Can NBFCs be regulated on similar
lines of how SIBs are regulated? Discuss in light of recent events.