WEBINAR HANDOUT

Weekly Current A�airs

MARCH 2021 (4th WEEK)

Note: Please open the recorded link using Google Chrome.

S. No. TOPICS Page No.

01. QUAD Leadership Summit 2-4

02. Bureaucrats cannot be State Election

Commissioners: SC

5-6

03. Supreme Court and Electoral Bonds 7-10

04. World Happiness Report 2021 11-12

05. India‟s Arms Imports Down by 33% 13-14

06. Objective Questions 15-17

07. Subjective Questions 18-18

CONTENT

1. QUAD Leadership Summit Context: ● Quad’s (Quadrilateral Security Dialogue) first-ever leadership summit. ● The virtual Quad summit was attended by India’s Prime Minister Narendra

Modi, President Joe Biden of the US, Japan’s Prime Minister Yoshihide Suga and Australia’s Prime Minister Scott Morrison.

Key highlights of the Summit: ● After the first Quad summit, there was also a joint statement, with the title –

“Spirit of the Quad”. It has significance for the Quad, as previous gatherings at various levels generated separate press releases from the four countries’ foreign offices.

● A move away from “just a military alliance”: ○ Since the Quad’s construction in 2007, China has defined the forum as the

“Asian NATO” and the harbinger of a “new Cold War”. ○ The annual Malabar naval exercises that India conducts with the US and

Japan (Australia was invited to join last year) added to the image of the Quad as just a military formation.

○ The leaders of four member nations declared that the Quad is a “flexible group of like-minded partners dedicated to advancing a common vision and to ensuring peace and prosperity”.

● “America is back” in terms of its desire to play a leading role in other regions and it views China as its primary challenger for that leadership. Also, the Quad partnership is ready to mount a counter-challenge, although in “soft-power” terms at present.

● The need for an open and free Indo-Pacific region was emphasised. ○ It was highlighted that the Indo-Pacific region should be governed in

accordance with human rights. ● “3C‟s” working groups (on COVID-19 vaccines, Climate Change and Critical

Technology): The vaccine expert working group, a critical and emerging technology working group, and a climate working group for technology, capacity building and climate finance were cleared during the summit.

● Vaccine Diplomacy: ○ The Joint statement talks about producing at least 1 billion doses, for

distribution in the Indo-Pacific, of COVID-19 vaccines by the end of 2022. ○ The COVID-19 vaccine initiative is a major boost for India’s pharmaceutical

prowess. ○ During the discussion, there was a wholesome appreciation of the Vaccine

Maitri initiative. ○ The decision was made to pool their resources- American technology,

Japanese finance, Indian production capacity and Australia’s logistics capability.

Issues associated with the Quad: ● Vaccine Diplomacy: The Quad did not discuss dropping opposition of other

members to India’s plea at the World Trade Organization, which it filed along with South Africa in October 2020, seeking a waiver from certain provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights for the prevention, containment and treatment of COVID-19.

● Climate Change: ○ India still awaits a large part of the $1.4 billion commitment by the U.S. to

finance solar technology, which was announced in 2016 and which President Trump subsequently slowed down.

○ President Biden might also consider joining the International Solar Alliance, founded by India and France, which the other Quad members are a part of, but the U.S., which promised to do so in 2016, has resisted.

● Development of Critical Technology: ○ India will welcome any assistance in reducing its dependence on Chinese

telecommunication equipment and in finding new sources of rare-earth minerals.

○ But India would oppose any move by the other Quad partners to weigh in on international rule-making on the digital economy, or data localisation.

India‟s unique situation and cautious approach to Quad: ● India is the only Quad member, not a part of the military alliance that binds the

others. ● India is also the only Quad country that lives in a neighbourhood with a land

boundary with China. ● Indian officials are still engaged in LAC disengagement talks that have thus far

yielded only a phase-1 disengagement at Pangong Lake. There is a long way to go to de-escalation or status quo ante at LAC.

● India, given its own ties with China, sensitivities over ongoing LAC disengagement talks, and its other multilateral commitments at the BRICS and SCO groupings, also displayed caution in the Quad engagement.

China‟s Response: ● In the backdrop of Quad’s leadership summit, China has said cooperation

between nations should not target or damage the interests of a third party and countries should not pursue exclusive blocs.

● The meet was closely followed in China which has broadly framed it as a U.S.-led effort aimed at containing China.

Way Forward: ● The intention of Quad to harmonise medical, scientific, financing, manufacturing,

critical emerging-technology and developmental capabilities in future, is a step in the right direction. The sincere implementation will certainly make Quad an effective grouping.

● Quad members must continue freedom of navigation exercises and military posturing in Indo-Pacific, as China continues to do so.

● The Indo-Pacific region is becoming the economic centre of gravity and manufacturing hub of the world. Support of other countries will be good deterrence to peace spoilers in the region.

● The Summit did not signal expansion, but it needs to have the flexibility to incorporate other democratic countries.

Image: The first Quad leadership Summit

Source: ANI

2. Bureaucrats cannot be State Election Commissioners: SC Context: ● The Supreme Court held that no government employees or bureaucrats should

be appointed as the State Election Commissioners. More About the Judgement: ● The Court has directed States to comply with the constitutional scheme of

independent and fair functioning of election commissions. ● The judgment came on an appeal against an order of the Bombay High Court,

which had set aside the election notification issued by the Goa State Election Commission in some municipalities

Rationale behind the Judgement: ● The State Election Commission is a constitutional body, and thus, it is the

constitutional mandate of the State to not interfere with its functioning. ● To have „free and fair elections‟ is part of the „basic structure‟ of the

constitution. Thus, the independence of Election Commissions cannot be compromised at any cost.

Other Issues faced by the State Election Commission: ● As the constitution has mentioned that “all matters relating to elections to the

panchayats” shall be decided by the state legislature”, this has left the field open for the states to interfere with political motives.

● The constitutional provision, that bars the removal of State Election Commissioner except in like manner and on the like grounds as a Judge of a High Court, has also been diluted by states in many cases.

● The decision of the governor is not discretionary and is based on the aid and advice of the State. In many instances there is tussle between Centre and State as the Governor himself is appointed by the Centre. Thus, there is a lack of autonomy.

Recommendation of the 2nd Administrative Commission (ARC): To make the functioning of the State Election Commission more independent, the following recommendations were given by the 2nd ARC: ● A separate institution should be set up to facilitate coordination between the

SECs and the Election Commission of India. This will serve as the platform where each body can learn from each other.

● For the appointment of the State Election Commissioner, the decision of the Governor should be based on the recommendation of a collegium, comprising the Chief Minister, the Speaker of the State Legislative Assembly and the Leader of Opposition in the Legislative Assembly.

About the State Election Commission: ● The provision of the State Election Commission was introduced to the

constitution with the 73rd and 74th Constitutional Amendment Acts. ● The mandate of the commission includes the superintendence, direction and

control of the preparation of electoral rolls and the conduct of all elections to the panchayats and municipalities.

● The state legislature may make provision with respect to all matters relating to elections to the panchayats.

● Appointment ○ It consists of a state election commissioner to be appointed by the governor.

● Service Conditions ○ His conditions of service and tenure of office shall also be determined by the

governor. ○ He shall not be removed from the office except in the manner and on the

grounds prescribed for the removal of a judge of the state high court. ○ His conditions of service shall not be varied to his disadvantage after his

appointment.

3. Supreme Court and Electoral Bonds Context: ● Chief Justice of India has agreed to urgently hear a plea by an NGO, Association

for Democratic Reforms (ADR) to stay the sale of a new set of electoral bonds on April 1, before the Assembly elections in crucial states such as West Bengal and Tamil Nadu.

Arguments of ADR in the court: ● ADR argued that the data obtained through RTI had shown that illegal sale

windows had been opened in the past to benefit certain political parties. ● It said that the scheme had opened doors to unlimited political donations, even

from foreign companies, thereby legitimising electoral corruption at a huge scale, while at the same time ensuring complete non-transparency in political funding.

● It reminded the court that both the RBI and the Election Commission had objected to the electoral bond scheme.

What are electoral bonds?

Image: What are electoral bonds?

Source: TheQuint.com ● The Finance Act of 2017 introduced the use of Electoral Bonds. ● Electoral Bond means a bond issued in the nature of promissory note which shall

be a bearer banking instrument and shall not carry the name of the buyer or payee.

● It may be purchased by a person who is a citizen of India or entities incorporated or established in India.

● A donor with a KYC compliant account can purchase the bonds and can then donate them to the political party of his/her choice.

● The Election bonds can be encashed only by an eligible political party by depositing the same in their designated bank account.

Salient features of Electoral Bonds Scheme: ● The bonds shall be issued in the denomination of Rs. 1000, Rs. 10,000, Rs.

1,00,000, Rs.10,00,000 and Rs. 1,00,00,000. ● The State Bank of India (SBI) has been authorised to issue and encash Electoral

Bonds through its select Designated Branches. ● Buyers of the bonds have to submit full KYC details at the time of buying. But the

beneficiary political party is not required to reveal the identity of the entity that has given it the bond.

● Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, are eligible to receive the Electoral Bonds.

● The bonds under this Scheme shall be available for purchase for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government. An additional period of thirty days shall be specified by the Central Government in the year of general elections to the House of People.

● The Electoral Bonds shall be valid for fifteen calendar days from the date of issue and the amount of bonds not encashed within the validity period of fifteen days shall be deposited by the authorised bank to the Prime Minister Relief Fund.

● The face value of the bonds are counted as income received by an eligible political party, for the purpose of exemption from income tax under section 13A of the Income Tax Act, 1961.

Reasons for bringing in these bonds:

Image: Benefits of Electoral Bonds

Source: Tax Guru

● To fund round the year functioning of the political parties, which involves a large expenditure.

● The conventional practice of funding the political system was to take donations in cash, where the sources were anonymous.

● The electoral bond scheme envisages total clean money and a transparent system of political funding. ○ A donor can purchase electoral

bonds from a specified bank only by a banking instrument.

○ He/she would have to disclose in his accounts the amount of political bonds that he has purchased.

○ The life of the bond would be only 15 days. ○ The entire transaction would be through banking instruments.

What is the controversy surrounding them? ● Prior to 2017, Section 182 of the

Companies Act, 2013 stipulated that a company could donate only up to 7.5% of its average profit of the last three years, and must disclose this amount and the beneficiary political party. ○ The government moved an

amendment in the Finance Bill, 2017 to this provision.

○ Now, through the electoral bonds, there is no limit to the amount companies can donate, and the requirement for such firms to have existed for the last three years on a profit-making basis has also been deleted.

○ The implication is that even loss-making companies or shell companies can be used to purchase electoral bonds.

○ Essentially, then, corporate entities and individuals can now funnel unlimited amounts to a political party through electoral bonds, anonymously.

● Under Section 13A of the Income Tax Act, 1961 companies contributing through electoral bonds will not even be required to keep records of such donations. ○ If no records are mandatorily maintainable, no questions can presumably be

asked by IT authorities. ● The Representation of People Act, 1951 has been amended to exempt parties to

inform Election Commission of any amount received above Rs 2,000, if made through electoral bonds.

● The Government has also amended the Foreign Contribution Regulation Act, 2010, which prohibits political candidates and parties from accepting donations from abroad. ○ The Finance Bill of 2018 made amendments to the Finance Act of 2016 to get

retrospective amendments, changing the foreign contribution tolerance limits from 2010 to 1976.

○ This means that initially, all foreign donations received before 25 September 2010 could be put under scrutiny.

○ This amendment pushes this date back to 5 August 1976, effectively giving it a retrospective effect.

○ Thus, the Government has now exempted from scrutiny all foreign funding to parties retrospectively from 1976.

● The amended Companies Act now allows any foreign company registered in India to make contributions through bonds to political parties, overruling legitimate doubts about who or where its real owners are, or what its source of funding is.

Views on Electoral Bonds: ● Central Government: It submitted affidavits to the Supreme Court in support of

the scheme, asserting to eradicate black money and enhance accountability, while maintaining privacy of the buyer.

● Election Commission of India: It opines that since the donations made through electoral bonds have been taken out of the compulsory reporting norms, it will have “serious repercussions on the transparency aspect of political funding of political parties.”

● RBI: It said that the scheme would help in money laundering and feared the bonds could be misused and could add to black money. It also said that the bonds would make the system of political funding opaque.

● Various Experts: They argue that if the electoral bonds scheme has been introduced to bring about greater transparency, the government must not restrain from disclosing the details of such donations.

4. World Happiness Report 2021 Context: The World Happiness Report 2021 has been released by the UN Sustainable Development Solutions Network in March 2021. The General Assembly of the United Nations in 2012 proclaimed 20 March as the International Day of

Happiness.

What is the World Happiness Report? The World Happiness Report is a publication of the Sustainable Development

Solutions Network for the United Nations. It ranks countries taking into consideration six variables:

GDP Per Capita (Purchasing Power Parity)

Social Support

Healthy life expectancy at birth

Freedom to make life choices

Generosity

Perceptions of corruption It uses Gallup World Poll data among others to bring out its findings regarding world happiness. The rankings use data that come from the Gallup World Poll surveys from 2018 to 2020. They are based on answers to the main life evaluation question asked in the poll called the Cantril ladder: it asks respondents to think of a ladder, with the best possible life for them being a 10, and the worst possible

life being a 0. They are then asked to rate their own current lives on that 0 to 10 scale.

Image: Rank and Score of the Countries as per World Happiness Report, 2021

Source: Happiness index: India ranks 139 out of 149

Details of the Report: ● This is the ninth World Happiness Report. ● The report focused on the effects of COVID-19 on happiness and how countries

have differed in their success in reducing the deaths and maintaining connected and healthy societies. The effects of the pandemic on happiness, mental health, social connections, and the workplace are covered.

● It ranked the world’s 149 countries on “how happy their citizens perceive themselves to be”.

● Finland was once again ranked as the world's happiest country with a score of 7.8. Afghanistan was ranked lower with a score of 2.5.

● India has been ranked 139 out of 149 countries in the list of UN World Happiness Report 2021 with a score of 3.819.

● In 2020, India was ranked 144th out of 156 countries surveyed. India’s ranking and score are declining over the past years (score of 4.5 with a rank of 117 in 2015).

● The ten countries behind India on World Happiness Report 2021 rankings are Burundi, Yemen, Tanzania, Haiti, Malawi, Lesotho, Botswana, Rwanda, Zimbabwe, and Afghanistan.

● India‟s rank is less when compared with the neighbouring countries: Pakistan on 105th, Bangladesh on 101st, China on 84th, and Nepal on 87th.

About Sustainable Development Solutions Network: ● The UN Sustainable Development Solutions Network (SDSN) was set up in 2012

under the auspices of the UN Secretary-General. ● It mobilizes global scientific and technological expertise to promote practical

solutions for sustainable development, including the implementation of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.

● It works closely with United Nations agencies, multilateral financing institutions, the private sector, and civil society.

5. India‟s Arms Imports Down by 33% Context: ● Swedish think tank Stockholm International Peace Research Institute (SIPRI)

reported that while India continues to remain the second-largest arms importer, its arms imports decreased by 33% between 2011–15 and 2016–20.

● Main reasons for the decline: ○ India’s complex and lengthy procurement processes. ○ India’s attempts to reduce its dependence on Russian arms by diversifying its

network of arms suppliers (Russia’s deliveries dropped by 53% between the two periods).

● India still accounted for 9.5% of the total global arms imports during 2016-20. ● India was placed at the 24th position of arms exporter (0.2% of global exports -

an increase of 228% over India’s export share of 0.1% during the previous five-year period - 2011-15.) with Myanmar, Srilanka and Mauritius being the top recipients.

● Russia was the largest arms supplier in both the periods while France, Israel (imports increased from both) and the US (imports decreased by 46%) were the second, third and fourth-largest arms suppliers in 2016–20 respectively.

Other important findings: ● The top arms importers were Saudi Arabia

followed by India, Egypt, Australia and China.

● The top arms exporters were the US (saw its exports rise), Russia(most affected supplier), France, Germany and China.

● Pakistan, Bangladesh and Algeria were the major recipients of arms from China.

● Pakistan’s imports have also reduced, but its proportion of Chinese imports has increased (74% of total) with several large outstanding orders scheduled for delivery by 2028.

A look ahead for India: ● With increasing perceived threats from

China and Pakistan and significant delays in its own production, India’s arms imports are expected to increase over the coming five years.

● But India has also set aside ₹ 70,221 crore - 63% of the military’s capital budget for 2021-22 for buying locally produced weapons and systems to boost defence

indigenisation as a part of the Atmanirbhar

Bharat and Make in India initiative. Basic trainers and Light Combat Helicopters are on the government’s negative import list (which is again set to increase) that seeks to ban the import of 101 different types of weapons, systems and ammunition over the next five years.

Image: Defence indigenisation (for representative purpose only)

Source: https://www.dnaindia.com/india/report-embargo-on-101-defence-imports-ray-of-hope-for-indian-manufacturers-2837077

● India has also set an ambitious target of exporting $5 billion worth of aerospace

and defence goods and services by 2024.

Conclusion: With reducing dependence on any single foreign partner through diversification and simultaneously boosting the domestic capabilities by supporting the local defence industries, India has firmly set its eye to not only become self-sufficient but also become a major player in the global arms export market.

6. Objective Questions

1. Which of the following countries are the members of the Quadrilateral Security Dialogue? 1. India 2. China 3. Russia 4. Japan 5. USA 6. Australia Select the correct answer using the codes given below: (a) 1, 2, 3 and 6 (b) 2, 3, 4 and 5 (c) 3, 4, 5 and 6 (d) 1, 4, 5 and 6

Answer: (d) Explanation: The Quadrilateral Security Dialogue is informal strategic dialogue. Its members are India, USA. Japan, Australia.

2. With reference to the State Election Commissioner, which of the following procedures is/are provided by the constitution? 1. Appointment 2. Service condition 3. Removal 4. Tenure of service Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 and 4 only (c) 2 only (d) 3 only

Answer: (d) Explanation: Statement 1 is incorrect: The constitution does not give the manner of appointment of the State Election Commissioner. It states that the State Election Commission consists of a state election commissioner to be appointed by the governor. Statements 2 and 4 are incorrect: The constitution states that the conditions of service and tenure of office of the State Election Commissioner are to be determined by the governor.

Statement 3 is correct: As per the Constitution, the State Election Commissioner shall not be removed from the office except in the manner prescribed for the removal of a judge of the state High Court.

3. Regarding the Electoral Bond Scheme, consider the following statements:

1. Only political parties recognised as state and national parties are eligible to accept donations under this scheme.

2. Bonds which are not encashed are to be deposited back to the donors bank account.

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

Answer: (d) Explanation: Statement 1 is incorrect: Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, are eligible to receive the Electoral Bonds. Therefore, registered but unrecognised political parties are also eligible to receive donations under it. Statement 2 is incorrect: The Electoral Bonds shall be valid for fifteen calendar days from the date of issue and the amount of bonds not encashed within the validity period of fifteen days shall be deposited by the authorised bank to the Prime Minister Relief Fund.

4. Consider the following statements regarding the World Happiness Report 2021:

1. It is prepared by the Government of Bhutan. 2. GDP Per Capita (Purchasing Power Parity) is used as a variable to rank the

countries. 3. India ranks among the Top 50 countries as per this report. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3

Answer: (b)

Explanation: Statement 1 is incorrect: The World Happiness Report is a publication of the Sustainable Development Solutions Network for the United Nations. Gross National Happiness is a term coined by His Majesty the Fourth King of Bhutan, Jigme Singye Wangchuck in the 1970s. The concept implies that sustainable development should take a holistic approach towards notions of progress and give equal importance to non-economic aspects of wellbeing. Statement 2 is correct: The report ranks countries taking into consideration six

variables: ○ GDP Per Capita (Purchasing Power Parity) ○ Social Support ○ Healthy life expectancy at birth ○ Freedom to make life choices ○ Generosity ○ Perceptions of corruption GDP Per Capita (Purchasing Power Parity) is one of the variables used in ranking the countries. Statement 3 is incorrect: India has been ranked 139 out of 149 countries in the 2021 report.

5. Arrange the following countries in increasing order of their share of arms exports

to India during 2016-2020: 1. US 2. Russia 3. France 4. Israel Select the correct answer using the codes given below: (a) 1-2-4-3 (b) 4-2-1-3 (c) 3-1-2-4 (d) 2-3-4-1

Answer: (d) Explanation: Russia was the largest arms supplier to India during 2016-20, followed by France, Israel and the US.

7. Subjective Questions 1. The Quad’s first-ever leadership summit is a signal for greater collaboration

among member countries in the future. In this context, analyze India’s role and reservations with respect to the Quadrilateral Security Dialogue.

2. An autonomous State Election Commission is the bedrock to establish grassroot democracy. Critically analyse.

3. Critically analyse the various amendments brought in to give effect to the electoral bonds scheme.

4. In what way Happiness is linked with the Sustainable Development? Suggest measures for increasing happiness among the people.

5. “India is finally at an inflection point and the Indian defence industry is coming of age”, Comment.

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