Author: Explains

Why in News

1. The Law Commission has recommended that gambling and betting on sports, including cricket, be allowed as regulated activities taxable under the direct and indirect tax regimes and used as a source for attracting foreign direct investment (FDI)
2. The commission’s report, “Legal Framework: Gambling and Sports Betting including Cricket in India”, recommends a number of changes in the law for regulating betting and generating tax revenues from it

Definition of Gambling & Betting

• Betting is considered to be a form of gambling. The main difference between the two activities is that in gambling ‘the stakes’ or ‘the wager’ is placed on an event without any basis of the outcomes, whereas in betting the stakes are placed, based on at least an idea or the performance about the said betting event.
• Kautilya’s Arthashastra defined gambling as wagering with inanimate objects such as dice; and betting as something that involved challenges and was concerned with cockfights, animal races and similar contests.

Law Commission Recommendations

1. Parliament may also enact a model law for regulating gambling that may be adopted by the States or in the alternative, the Parliament may legislate in the exercise of its powers under Articles 249 or 252 of the Constitution.
2. Gambling and betting, if any, should be offered only by Indian licensed operators from India possessing valid licenses granted by the game licensing authority.
3. Gambling must be classified into two categories, namely ‘proper gambling’ and ‘small gambling’. ‘Proper gambling’ would be characterized by higher stakes, whereas individuals belonging to the lower income groups will have to confine themselves to ‘small gambling’.
4. The transactions made between and among operators and players/participants indulging in these activities should mandatorily be made ‘cashless’.
5. Any income derived from such activities should be made taxable under the Income Tax Act, 1961, the Goods and Services Tax Act, 2017.

Consequences that ensue due to unregulated Gambling and Betting

• Some of the major problems related to illegal gambling and betting activities are the exponential growth of illegal trade and commerce, and corrupt practices such as spot-fixing and match-fixing being employed in sports.
• A total of 2916 cases have been registered under the gambling act in a period of 28 months, i.e., 104 cases per month, on an average.
• The Delhi Police terms gambling as “connecting crime” that connects the gambler with other criminal activities. In order to regain the lost money or in an attempt to ‘invest’ more money into gambling, expecting more return an illegal gambler is bound to end up in committing other crimes like chain snatching, looting, stealing, etc.
• A total ban on gambling and betting activities has not completely eradicated the problem but it has driven it straight to the black-market. This in turn has resulted in making it harder to monitor such illegal activities.
• Illegal betting causes substantial monetary loss to the economy, with profits escaping the purview of taxation, and also increases the circulation of black money in the market.

Advantages of a regulated Gambling and Betting industry

• Protection for the young and vulnerable against the dangers of unwise betting behaviour.
• Employment generation (more than 8000 people are employed in casinos in Goa).
• Fairer and more trusted betting experience for consumers, offering entertainment in a controlled and responsible manner.
• Blow against organized crime like match fixing which threaten to damage public trust both in sport and in the legitimate betting industry.
• Generation of revenues from taxation of sports development and preventing sport betting from being linked to criminality or used to launder proceeds of crime.
• Protection of players, coaches and all involved with sport from unprincipled approaches

Lessons from International Perspective on Gambling & Betting

• Countries across the globe have adopted three approaches in the matter of regulating gambling and betting activities.
• Some Countries, especially those which give primacy to religious morality, have taken the view that the role of government is to protect its citizens from the negative effects of such activities.
• The Countries that give primacy to religious morality often impose a complete ban on gambling, while others view gambling and betting as an industry to drive trade and revenue; and encourage tourism and employment.
• Some countries also operate between these two extremes, striking a balance and permit gambling in a controlled and regulated environment; as a result, they earn substantial revenue from the tax imposed on such activities. This revenue can be utilized for promoting sports, cultural, charitable activities or any other activity aimed at the economic growth or development

What needs to be done?

• Legalizing betting and gambling is not desirable in India in the present scenario. Therefore, the State authorities must ensure enforcement of a complete ban on unlawful betting and gambling.
• However, incapability to enforce a complete ban has resulted in a rampant increase in illegal gambling, resulting in a boom in black-money generation and circulation.
• Since it is not possible to prevent these activities completely, effectively regulating them remains the only viable option.
• But law commission recommends that regulated gambling would ensure detection of fraud and money laundering, etc.
• Such regulation of gambling would require a three-pronged strategy, reforming the existing gambling (lottery, horse racing) market, regulating illegal gambling and introducing stringent and overarching regulations

Practice Question

A complete restriction on betting has not eradicated it but has sent the activity ‘underground’ covered in the murky undertakings of the crime syndicates. In the light of the above statement critically analyse the recent proposal of Law commission to regulate gambling and betting on sports in India?

What is Belt and Road Initiative?

1. The Belt and Road Initiative is a Chinese foreign policy initiative launched by President Xi Jinping in 2013.
2. It consists of two projects named Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR).
3. The objective is to build a trade, investment, and infrastructure network linking Asia with Europe and Africa along the ancient trade routes.
4. China has incorporated Belt and Road Initiative into its constitution.

The significance of BRI for China

1. It makes China an important maritime power in the South China Sea and the Indian Ocean and its littoral countries.
2. It promotes China-led financial institutions such as the Asian Infrastructure Investment Bank (AIIB).
3. Development of Western Provinces:  It will develop poorer western provinces of China, particularly Xinjiang. Xinjiang has had ethnic tensions and is considered to be a vulnerable area for China. The Chinese government made Xinjiang Uighur Autonomous Region as ‘Core zone of Silk Road Economic belt’. The government has been providing incentives to attract manufacturers and real estate developers.
4. Transportation links provide better access to rich European markets and boost trade.
5. Creation of an energy route between the Middle East and Africa will act as a safety valve against any possible prohibition at points like Hormuz and the Malacca Strait.
6. Development of railways, ports, pipelines, and highways across Asia and the Indian Ocean will help China utilize its excess capacity in steel, cement, and infrastructural engineering. This will result in the development of its manufacturing sector further.
7. It will enable China to compete with Transatlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership (TPP) or any other future mechanisms that aim at establishing new trading norms.

Challenges to BRI

• Poor governance and instability in Countries along BRI

1. The varying levels of development and the poor governance conditions of countries along the BRI may hinder infrastructure development, trade, and investment.
2. Furthermore, the political instability in a growing number of countries such as Yemen, Syria etc. along BRI poses serious security concerns for BRI

• Separatist movements and Ethnic Tensions

1. Separatist movements and ethnic tensions especially in Xinjiang proves to be a major challenge for the development of BRI and its linking with neighbouring countries.

• Cooperation from neighboring countries:

1. China has raised several sovereignty-related disputes with neighbouring countries including India which makes them not cooperate with the development of BRI.
2. Moreover, the Potential ecological and environmental consequences, especially in developing countries along the BRI, renders the project undesirable for many countries including India.

• Transparency issues in tenders and deal conditions

1. There are many instances of countries such as Nepal and Pakistan abandoning the deal with China to build the infrastructure project because of the closed tender process and strict deal conditions.

India’s stance

1. India has opposed the BRI and did not attend the 2017 BRI Summit held in Beijing.
2. It mentioned issues of sovereignty, transparency and unilateral decision making.

Why is India reluctant in joining the initiative?

China-Pakistan Economic Corridor (CPEC)

1. CPEC is a flagship programme of the BRI and the main reason for India opposition to the initiative.
2. It is because CPEC passes through Pakistan-Occupied Kashmir (Gilgit-Baltistan) which is a disputed territory between India and Pakistan.
3. Thus CPEC undermines India’s strategic interests and territorial integrity.
4. More importantly, with CPEC, China will get access to the western Indian Ocean through Gwadar port. This will help China in controlling maritime trade and would affect the freedom of navigation and trade-energy security of India.

Unilateral Decision

1. India has alleged that China has taken unilateral decisions. There has been a lack of consultations with India before the launch of BRI.

Concern over China’s expanding presence in neighbouring countries and the Indian Ocean

1. China’s port development projects in the Indian Ocean raises security concerns for India.
2. Increasing Chinese presence in Nepal, Pakistan, Sri Lanka, and Myanmar has raised concerns for India. For India, BRI seems driven by large geopolitical aims.

Transparency issues

1. India has highlighted the importance of openness and transparency
2. According to India, mutual agreements on infrastructure projects should be transparent and debt repayments should be made easier for recipient countries

Why should India join BRI?

1. Economic benefits, Boost to trade, investment, and business engagement
2. It provides direct access to Afghanistan and Central Asia
3. Energy: BRI is expected to normalize India-Pakistan ties. This would remove the obstacles to the implementation of two major energy cooperation projects: the Iran-Pakistan-India gas pipeline and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. This is crucial for India’s energy security.
4. Improve Indo-China ties; India and China may cooperate at many global fronts.
5. Security: Development in Gilgit- Baltistan area would help to curb security threats
6. All neighbouring countries (except Bhutan) and other countries from South-East Asia, Central Asia has joined BRI. Thus, not joining BRI may lead to the isolation of India
7. Many geopolitical issues and differences can be resolved through economic integration.

Way forward

1. More than 65 countries- nearly every country in Asia (except few like Bhutan, Japan), East and Central Europe have joined BRI
2. BRI is particularly significant in times of rising protectionism across the world.
3. The success of BRI largely depends on how China manages its debt since 23 countries that joined BRI are in debt distress.
4. More importantly, the regional cooperation and political stability in countries along BRI is crucial for BRI’s success

Practice questions

1. Give a brief account of Belt and Road initiative and its significance for China vis-à-vis India. Also, identify the key challenges in the implementation of BRI.
2. Do you think that it is in the best interest for India to join the Belt and Road initiative? Critically analyse.

AYUSHMAN BHARAT – NATIONAL HEALTH PROTECTION MISSION

What is Ayushman Bharat Scheme?

1. The Government announced two major initiatives in health sector, as part of Ayushman Bharat programme.
   1. Health and Wellness Centre
   2. National Health Protection Scheme
2. Aimed at making path breaking interventions to address healthcare problems holistically, in primary, secondary and tertiary care systems.
3. Covers both prevention and promotion of health.

Need for Ayushman Bharat

1. India is in a state of health transition.
2. Infectious diseases such as tuberculosis, malaria, dengue, H1N1 pandemic influenza and antimicrobial resistance are a threat.
3. Also the country is facing the emerging problem of chronic non-communicable diseases such as cardiovascular diseases, diabetes, cancer which are now the leading cause of mortality.
4. New factors are emerging that threatens the country’s health security like ageing population, climate change, globalization, urbanization and changing lifestyles.
5. We lag behind in addressing healthcare delivery across the length and breadth of the country.
6. We have one of the highest levels of out-of-pocket spending on health.
7. Average cost of treatment in private hospitals is 4 times higher than that of public. This pushes many people below poverty line.
8. Funding for healthcare has been a major concern.
9. Several states have implemented or supplemented their own health protection schemes. Ayushman Bharat programme builds on these schemes.
10. Failure of Rashtriya Swasthya Bima Yojana (RSBY).

RSBY

1. Poor families get an annual coverage of Rs. 30,000.
2. It was world’s largest publicly-funded health insurance (PFHI) scheme.
3. RSBY will be subsumed under National Health Protection Scheme.
4. Similarly, Senior Citizen Health Insurance Scheme (SCHIS) will also be subsumed under NHPS.

Why RSBY failed?

1. Failed to cover a large number of targeted families.
2. Prevalent discrimination against disadvantaged groups.
3. Lack of mandate on insurance companies to achieve higher enrolment rates.
4. Absence of oversight by government agencies.
5. RSBY resulted in higher out-of-pocket expenditures.
6. This caused the failure of the scheme despite its holistic health care coverage.

Health and Wellness Centre

1. Health and Wellness Centres will be the foundation of country’s health system.
2. 1.5 lakh centres will bring health care system closer to the homes of people.
3. Will provide comprehensive health care, including for non-communicable diseases and maternal and child health services.
4. Will also provide free essential drugs and diagnostic services.
5. Also provide mental health services, vaccinations against selected communicable diseases, and screening for hypertension, diabetes, and some cancers.
6. Allocation of Rs. 1200 crore for this flagship programme.
7. Contribution of private sector through CSR and philanthropic institutions in adopting these centres is also envisaged.

National Health Protection Scheme

1. National Health Protection Scheme will cover over 10 crore poor and vulnerable families or around 50 crore people.
2. Will provide coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization.
3. Identification of eligible families through the socio-economic caste census (SECC) data.
4. World’s largest government funded health care programme.
5. National Health Agency will govern the implementing mechanism.
6. Adequate funds will be provided for smooth implementation of this programme.
7. Cost of packages will be decided by National Health Agency.

Significance of Ayushman Bharat

1. Move towards the goal of universal health coverage
2. Creating Swasth Bharat.
3. Accessible healthcare at secondary and tertiary level institutions for the bottom 40% of the population.
4. High involvement of states as the states are the custodians and the implementers of the scheme.
5. Ensures enhanced productivity, well being and avert wage loss and impoverishment.
6. Generation of lakhs of jobs, particularly for women.
7. Like Jan Dhan scheme did for financial inclusion, Ayushman Bharat will create huge awareness of health insurance
8. A higher life expectancy.
9. The country will meet its social development goals.
10. With respect to infrastructure and trained medical professionals, tertiary healthcare faces a big challenge. This problem is more acute in rural areas. AB will address this challenge.
11. Will improve access to healthcare and bridge the demand-supply gap.

Challenges for Ayushman Bharat

1. Inadequate funding.
2. Proper and transparent implementation on such a large scale.
3. Limited and uneven distribution of human resources at various levels of health services.
4. Presently, a lack of capacity to respond to huge demand for beds. This will take some time.
5. Private players faced various hurdles in earlier schemes like RSBY.
6. There was opaque procedure for empanelment and cost fixating mechanisms.
7. Huge delays in reimbursement to private hospitals was also a challenge in RSBY.
8. At the same time, the pricing mechanism of private players needs to be checked.
9. Politics of parties will hinder the participation of states.

Way Forward

1. Categorise hospitals into Entry level, Progressive level and Accreditation level. This will help in standardisation in clinical practices.
2. Use of technology and digitisation for accessible and affordable patient care to the last mile of the country.
3. Need for proper medical claims system and fraud control mechanisms.
4. Effective collaboration between centre, states and industry.
5. States should have some flexibility as costs could vary in tier 1 cities and tier 2 cities.
6. Proper monitoring and governance of operational and implementation aspect of AB.
7. Timely resolution of complaints.

Practice Questions

1. Discuss the features of Ayushman Bharat programme and examine how Ayushman Bharat is different from Rashtriya Swasthya Bima Yojana.
2. Critically examine the significances of and challenges in the implementation of Ayushman Bharat Programme.