💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF

Author: CD Staff

  • [Sansad TV] Perspective: Demonetization Verdict

    [Sansad TV] Perspective: Demonetization Verdict

    Context

    • More than six years after the Centre’s decision to demonetise the Rs 1,000 and Rs 500 denomination notes in 2016, the Supreme Court in a 4:1 majority verdict, has upheld the move.

    SC upholds Demonetization decision

    demonetization
    • Constitutionally valid: The Supreme Court ruled that the decision to scrap the high-value currency notes does not suffer from any legal or constitutional flaw.
    • Valid intention: The judgment said the decision-making process was not flawed merely because the procedure emanated from the government.
    • No overnight phenomena: The decision came up after six month consultation between the Reserve Bank of India and the Union government.
    • Executive decision: The top court also observed that the decision being the executive’s economic policy cannot be reversed.

    What is Demonetization?

    • Demonetization is the process through which a nation’s economic unit of exchange loses its legally enforceable validity.
    • Currencies that are terminated are no more legally considered exchanges and have no financial value.
    • It is a process by which countries opt to reintroduce defunct currencies as legal money.

    Demonetization in India

    2016 is not the first instance of demonetization in India. 

    1. 1946: The RBI demonetized Rs. 1,000 and Rs. 10,000 currency notes which were then under circulation.
    2. 1954: The Government introduced new currency notes of Rs. 1,000, Rs. 5,000, and Rs. 10,000.
    3. 1978: The Janata Party Government under Morarji Desai demonetized Rs. 1,000, Rs. 5,000, and Rs. 10,000 to curb illegal transactions and anti-social activities.

    Reasons behind Demonetization

    While demonetization is exceptional, governments around the globe have used it because of several reasons-

    • Formalization of Economy: Demonetization helps formalize India’s informal economy. It reduces the extent of cash transactions and help in the creation of a less-cash economy.
    • Inflation control: If problems like hyperinflation happen in any country, then the government considers demonetization as a solution to take back control and minimise the adverse situation.
    • Increased Saving: As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more.
    • Eliminating counterfeit currency: Some negative situations or actions like counterfeit currency, terror, and tax fraud can all be eliminated with demonetization.
    • Introducing new system: Demonetization is also used to introduce a new monetary system in some circumstances.
    • Fight corruption: Demonetization is used to improve a cash-based emerging economy as well as fight corruption and criminality.

    Pros and cons of Demonetization

    [A] Pros

    Governments can benefit from currency demonetization in several different ways, from preventing and reducing criminal activity to currency regulation. Below are the advantages of demonetization.

    • Increased money outflow
    • Increased revenue collection
    • Reduced conspicuous consumption
    • Curb over criminal activities and terror financing
    • Forbid tax avoidance and other financial crimes
    • Contributed to the dawn of paperless financial system and UPI
    • Ensured transparent funding of elections and election expenditures

     [B] Cons

    Some disadvantages of demonetization are stated below.

    • Furore and Panic among the general public ex. Long queues in Banks and ATMs
    • Disruption in economic activity and daily expenses
    • Supply-chain disruptions
    • Drop in rural demand
    • Black marketing of the new notes/ Old notes replacement mafias
    • Expenses issuing new currency and coinage minting can be high
    • Illegal activity will not be stopped entirely
    • May create disturbances among individuals

    A critical evaluation

    • Black money is not just cash: The sudden demonetization was premised on the idea that “black means cash”. And, it is in high-denomination currency notes that black money would be held.
    • Benami transactions whitens black money: The truth is that illegal cash transaction, though black money, constitute a very small proportion of the black economy.
    • Much cash was accounted:  Much of the prospected cash in circulation including a major chunk of ‘black money’ was collected back by the RBI.
    • Wealth is dispersed: The wealth is held in a variety of forms like, in undervalued inventory or balances held in tax havens abroad. A return is expected from this wealth. So, cash, on which there is no return, would be a tiny amount – 1% of the black wealth.
    • Schemes were exploited: Deposits in Jan Dhan accounts suddenly swelled as the poor were used as cash mules. Some bankers were caught helping their rich clients do this. There was a 30% charge for this. As a result, new black incomes got generated.
    • Suspicion over timings: Some suggested that demonetization was ordered for political reasons – that it was crucial to win the impending UP elections. It was thought that if the Opposition lost its black-money hoards, it would not be able to campaign effectively.
    • Bluff over objectives: Within days, the government changed the goalpost. It argued that the move would make the economy “cashless”. After few months, the goal became a “less cash economy”.
    • Fuss over fastest growth: Official data showed that the year of demonetization, 2016-’17, had the best growth rate for the decade. The reason is that unorganised sector data is not available so the GDP data uses the organised sector as a proxy to capture it.
    • Embraced as failure: Demonetisation is perceived as an ill-advised step that did not achieve any of its goals. The ruling party understood this and did not showcase it as an achievement in the subsequent elections.

    How demonetization affected the poor?

    • Market vendors had to shut down their shops: Typically, market vendors farm on a daily basis and sell their production. The drop in customer traffic, however, forced the market vendors to shut down their shops.
    • Informal sector collapsed: Informal workers including domestic help, agricultural laborers, workers in factories, micro-business owners, daily-wage workers, etc. receiving their salary in cash were severely disadvantaged.
    • Household expenses distorted: Typically, working class people have basic jobs with fairly low wages. Due to the fact that there is a shortage of cash flow, many low-income workers experienced delayed salary payments.
    • Income loss to farmers: Disruptions, breaks in the supply chains feedback to farmers as sales fall, increased wastage of perishables, lower revenues etc.
    • Gendered impact: Demonetization amplified the inherent discrimination against women in Indian society who are financially excluded. Same was the case with sex workers and transgenders.

    Conclusion

    • Demonetization brought about a policy-induced crisis for the country, adversely impacting the marginalized sections of society – women, farmers and workers – while doing little to curb the black economy.
    • However, it can be termed as a good intended policy with hasty execution.
  • [Sansad TV] Perspective: Draft National Retail Trade Policy, 2022

    [Sansad TV] Perspective: Draft National Retail Trade Policy, 2022

    Context

    What is Retail Trade?

    retail
    • Retail trade is the selling of products and services to customers and includes all the aspects of the sale, such as installation, delivery and customer service.
    • In the context of commerce, retail must be a transaction between a business and a consumer.
    • If a local hardware store buys nails from a manufacturer, it is not a retail transaction.
    • An important term that is associated with retail trade is end-user. An end-user is the person or group who actually uses the product.

    Components of retail trade

    • Wholesalers: Wholesalers are companies that buy large quantities of a product from the manufacturer and then sell them to retail stores. They are often called middlemen because they operate between the companies that manufacture goods and the companies that sell them to consumers.
    • Shipping: When a product is purchased from a manufacturer, it needs to get to the wholesaler and eventually to the retailer. Shipping is a big part of retail trade. Whether the shipping is bulk transport of goods from wholesaler to retailer or small shipments from retailer to consumers, shipping plays a vital role.
    • Service: When consumers purchase certain products for their home that require installation, the install process is part of retail trade. The same goes for the customer service that a consumer might need after they purchase the product or the repair service that might be required on a product that breaks.
    • Sales: One of the most important parts of retail is the front-end sales of the products. Successful retail involves people with knowledge of the products who can communicate with the consumers.

    Features of Retail Trade

    The main characteristics of retail trade are:-

    • Retailer is the last link in the distribution chain.
    • Goods or services are sold directly to consumers by the retailer.
    • Retailer deals with a wide range of goods.
    • Retailer buys and sells a little number of products.
    • Retailer maintains personal relations with the customers.
    • Retailer is generally located in residential areas.
    • Retailer may contact the customers on telephone, Internet, TV or through his retail showroom.
    • Retailer acts as a middleman between wholesalers and customers.

    Why discuss this?

    • Make targeted efforts: This policy would focus on formulating strategies to provide a globally competitive and sustainable environment for the overall development of retail trade through targeted efforts.
    • Huge domestic market: India is the world’s fifth-largest global destination in the retail space.
    • Growth potential: According to a US-based report, the retail industry in India is likely to see 10 per cent annual growth to reach about USD 2 trillion by 2032.
    • Employment generation potential: Another report by CII-Kearney released in 2020 a cohesive national retail policy can help generate 30 lakh more jobs by 2024.

    Major challenges to retail sector

    • Unorganized market: India’s market for retail trade is largely unorganized. It lacks proper formal chains except few giants such as D-Mart.
    • High complexities:  A number of laws, compounded by state-level variations in implementation, create immense complexity for retailers, especially those with a pan-Indian footprint.  
    • Regulatory bottlenecks: If one has to set up a store in organized retail, we probably need approvals from 40 different authorities. Single window clearance could be largely beneficial.
    • Ignores e-commerce: While recognizing that retail trade in India is gaining strength because of e-commerce, this new draft is not applicable for e-commerce, multi-level marketing, direct selling or street vendors.

    About National Retail Trade Policy

    • The policy has been envisioned by DPIIT to formulate the national retail policy to promote the growth of domestic trade.
    • It focuses on formulating strategies to provide a globally competitive and sustainable environment for overall development of retail trade through targeted efforts.
    • The broad objectives of the policy are:
    • Ensuring easy and quick access to affordable credit.
    • Facilitating modernization and digitization of retail trade by promoting modern technology and superior infrastructural support.
    • Development of physical infrastructure across the distribution chain.
    • Promotion of skill development and to improve labour productivity.
    • Providing an effective consultative and grievance redressal mechanism for the sector. 

    Significance of the policy 

    • Promote EODB: This policy will streamline the retail trade and promote ease of doing business in the retail trade sector. 
    • Skill enhancement: It will encourage skill development and create more employment opportunities for all sections of society involved in retail trade.
    • Infrastructure boost: It will identify and address existing infrastructure gaps affecting the retail trade industry.
    • Employment boost: It will leverage retail trade as a tool for socioeconomic development of the country. A cohesive national retail policy can help generate 30 lakh more jobs by 2024. 
    • Investment inflows: It will accelerate investment flow to underdeveloped regions across the country. The retail industry is likely to see 10 percent annual growth to reach about USD 2 trillion by 2032. 
    • Promoting small retailer: It will create a level-playing field for small sellers by providing them access to credit as well as help large, organized retailers with quicker approvals.

    Conclusion

    • A cohesive retail policy built on the pillars of simplification, standardization, and digitalization will pave the way for significant growth and accelerate a short-term economic recovery. 
    • The policy is expected to lay down broad contours of a “prescriptive” framework and States will also have a key role in implementation.

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Burning Issue] CAG Audit and its Significance

    [Burning Issue] CAG Audit and its Significance

    cag

    Context

    • In its latest audit reports tabled in Parliament, Comptroller and Auditor General (CAG), as mandated by the Constitution of India, has highlighted several issues with various ministries and departments related to operational and financial irregularities.
    • In this context, this edition of the Burning Issue will tell the latest reports of CAG and explain the office of CAG in India.

    Few noticeable latest reports of CAG

    • About Assam’s NRC: The CAG has flagged serious irregularities, including “haphazard development” of software for the exercise, making it prone to data tampering, and flagged undue profits worth crores amassed by the system integrator (SI) by violating the Minimum Wages Act during the update exercise of the National Register of Citizens (NRC) in Assam.
    • About CPSE: The Comptroller and Auditor General of India (CAG) has also raised concern over the high number of vacancies for the post of independent directors in 59 of the 72 (82 per cent) listed central public sector enterprises (CPSEs).
    • About DRDO: According to another CAG report, the DRDO took 17 to 569 weeks for the submission of proposals in 29 projects, which had a cascading effect on sanctioning of the project. The delays resulted in changes in the technology to be used, import of the said items by users, and non-availability of the required item with the users.
    • About Plastic waste management: In a compliance audit report, CAG has said that the Union Ministry of Environment, Forest & Climate Change (MoEF&CC) has mechanisms to assess the generation of plastic waste, but none for its collection and safe disposal. Plastic Waste Management (PWM) Rules, 2016, could not be implemented effectively and efficiently due to a lack of an action plan by the MoEF&CC and the ministry is also lacking in effective coordination with pollution control boards.

    About CAG

    “I am of the opinion that this dignitary or officer is probably the most important officer in the Constitution of India. He is the one man who is going to see that the expenses voted by Parliament are not exceeded, or varied from what has been laid down by Parliament in the Appropriation Act. If this functionary is to carry out the duties — and his duties, I submit, are far more important than the duties even of the Judiciary” – Dr. B.R. Ambedkar

    • The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG).
    • His duty is to uphold the Constitution of India and the laws of Parliament in the field of financial administration.
    • He is the head of the Indian Audit and Accounts Department. He is the guardian of the public purse and controls the entire financial system of the country at both levels- the centre and state.

    History of office of CAG

    • The role of the CAG evolved in British India with Lord Canning initiating a major administrative drive before the Mutiny of 1857.
    • In May 1858, a separate department was set up with an Accountant General, who was responsible for accounting and auditing the financial transactions under the East India Company.
    • After Mutiny, the British Crown took over and passed the Government of India Act 1858. This laid the foundation stone of the Imperial Audit. Sir Edward Drummond took charge in 1860 as the first Auditor General and the term ‘Comptroller and Auditor General of India’ was first used in 1884.
    • Under the Montford Reforms of 1919, the Auditor General became independent of the government. The Government of India Act 1935 strengthened the position of the Auditor General by providing for Provincial Auditors General in a federal set-up.

    Constitutional provisions related to CAG

    • Art. 148: broadly speaks of the CAG, his appointment, oath and conditions of service
    • Art. 149: broadly speaks of the Duties and Powers of the CAG
    • Art. 150: The accounts of the Union and the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
    • Art. 151: Audit Reports: The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.

    Types of Audit performed by CAG

    • Regulatory Audit: It is an audit to ascertain whether the money spent was authorized for the purpose for which they were spent and also that the expenditure incurred was in conformity with the laws, rules and regulations.
    • Supplementary Audit: CAG takes up supplementary audits in PSUs, even after the commercial audits are done by the auditors appointed by the CAG, for the detection of leakages.
    • Propriety Audit: It focuses on whether the expenditure made is in the public interest or not i.e. it moves beyond mere scrutiny of expenditure to question its wisdom and economy to identify cases of improper expenditure and waste of public money.
    • Efficiency Audit: Efficiency audit as the name suggests answers the question of whether the money invested yields optimum results. The main purpose of the efficiency audit is to ensure that the investment is prioritized and channeled into its most profitable utilization.
    • Performance Audit: Performance audit answers whether the government programs such as NREGA have achieved the desired objectives at the lowest cost and given the intended benefits. It generally does not get into the merits-demerits of a particular policy/scheme but rather looks into the effectiveness with which the scheme is implemented and any deficiencies thereof.
    • Environmental Audit: This is a relatively new area of concern for the CAG keeping in mind the challenges facing India with respect to the conservation and management of the environment. More than 100 audits on environmental issues like bio-diversity, pollution of rivers, waste management have been conducted by the CAG to identify critical issues and suggest possible solutions by involving all stakeholders.

    Independence of the Institution of CAG

    • For the effective functioning of this important institution of the CAG it is paramount to ensure independence. There are several provisions enshrined in the Constitution to safeguard CAG’s independence.
    • He is appointed by the President by a warrant under his hand and seal and his oath of office requires him to uphold the Constitution of India and the laws made thereunder.
    • He is provided with security of tenure and can be removed by the President only in accordance with the procedure mentioned in the Constitution (same as a judge of SC).
    • He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
    • His salary and other service conditions though determined by the Parliament cannot be varied to his disadvantage after appointment.
    • His administrative powers and the conditions of service of persons serving in the Indian Audit and Accounts Department shall be prescribed by the President only after consulting him.
    • The administrative expenses of the office of CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India and are not subject to the vote of Parliament.

    Sources of the Audit Mandate of CAG

    • Constitution– The existence and mandate of the Comptroller and Auditor General of India emanate from Articles 148 to 151 of the Constitution. Article 149 stipulates the Duties and Powers of the Comptroller and Auditor General
    • Statute– DPC Act, 1971 (Duties, Powers and Conditions of Service Act) lays down the general principles of Government accounting and the broad principles in regard to the audit of receipts and expenditure
    • Regulations– Regulations on Audit and accounts as framed and notified in the official Gazette.
    • Scope of audit– Within the audit mandate, the Comptroller and Auditor General is the sole authority to decide the scope and extent of the audit to be conducted by him or on his behalf.

    Duties and Fuctions of the CAG

    Duties

    • He audits the accounts related to all expenditures from the Consolidated Fund of India, the Consolidated Fund of each state and UT having a legislative assembly.
    • He audits all expenditures from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
    • He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
    • He audits the receipts and expenditures of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.

    Functions

    • He audits all transactions of the Central and state governments related to debt, sinking funds, deposits, advances, suspense accounts and remittance business.
    • He audits the accounts of any other authority when requested by the President or Governor e.g. Local bodies.
    • He advises the President with regard to the prescription of the form in which the accounts of the Centre and states shall be kept.
    • He submits his audit reports relating to the accounts of the Centre to the President, who shall, in turn, place them before both houses of Parliament.
    • He submits his audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature.
    • He ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.
    • He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
    • He compiles and maintains the accounts of state governments. In 1976, he was relieved of his responsibilities with regard to the compilation and maintenance of accounts of the Central government due to the separation of accounts from the audit.
    • He submits 3 audit reports to the President: an audit report on appropriation accounts, an audit report on finance accounts and audit report on public undertakings.

    However, there are the following Limitations on the Powers of CAG

    • Report is post-facto: i.e. after the expenditure is incurred and has only prospective value in improving systems and procedures.
    • Secret service expenditure: such expenditure is outside the purview of the CAG and he cannot call for particulars of expenditure incurred by the executive agencies, but has to accept a certificate from the competent administrative authority that the expenditure has been so incurred.
    • Rising PPP investments: Since the legislation, the government has increased its participation with the private sector through the PPT (public-private-transfer) and BOT (build-own-transfer) models. However, the rules have not undergone a significant change and CAG does not have the power to audit PPP (Public Private Partnership) investments.
    • NGO’s, PRI and ULB’s out of audit ambit: There is no provision for auditing of funds that are given to an NGO and elected local bodies. Also, CAG presently does not have the full authority to audit the PRIs and ULBs. In most states, the Examiners functioning under the Finance Department audit the accounts of local bodies.
    • DRDAs also not auditable: (District Rural Development Authority) today are managing large sums of money for rural development yet they also are outside the purview of CAG audits.
    • Denial of documents: the path to obtain the relevant documents to carry out their tasks and make a report on its basis has never been easy for audit department. It has also been involved in several cases where the necessary documents were denied to the CAG and the powers of the CAG had to be reinstated by the Judiciary. In the past, almost 30% of the documents demanded by CAG officials have been denied to them.
    • Mode of Appointment: The present selection process for the CAG is entirely internal to the Government machinery; no one outside has any knowledge of what criteria are applied, how names are shortlisted and how a final selection is made. There is a lack of clarity on the criterion, the definition of the field of choice, and the procedures for the selection of this high constitutional functionary.
    • Word audit not defined: The word ‘audit’ has not been defined in either the Constitution or in the CAG Act, 1971. We have so far been going by 150 years of history, tradition, existing provisions and international practice. The CAG has not formulated its own policy in the above reports and has only gone by policy prescriptions recommended internally at various levels within the government.

    Way forward

    • Bring PPP and PRIs under CAG: Former CAG Vinod Rai recommended that all private-public partnerships (PPPs), “Panchayti Raj Institutions” and societies benefiting from government funds should come within the ambit of the CAG.
    • Enhance the CAGs powers to access information: He also requested to enhance the CAGs powers to access information under the audit act. As of 2013, it was estimated that 60% of government spending does not come under the scrutiny of CAG.
    • Amend CAG Act: He also suggested amendments to the CAG Act, 1971 to bring it in line with the current times privatization and IT revolution.
    • Application of the latest technologies: such as AI and Big Data in the audit process can help CAG better perform its duties. In this regard, CAG came out with a Big Data management policy in 2016 and also established a Centre for Data Management and Analytics in Delhi
    • A collegium kind of body: should be formed the choosing the person for CAG’s office to end the monopoly of the Executive.

    Conclusion

    • No doubt that this organization has come a long way from that time to where it’s standing today but like every institution constantly requires amends, rectifications, and upgradation to catch up to the modern times.
    • We can hope that by implying these reforms, this organization will enhance the transparency of the system through which the lucid imagery of our democracy would be clearly visible.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Sansad TV] Diplomatic Dispatch: 1st India-Central Asia meet of NSAs

    [Sansad TV] Diplomatic Dispatch: 1st India-Central Asia meet of NSAs

    Context

    • National Security Advisor (NSA) Ajit Doval recently hosted a meeting of his counterparts from five Central Asian countries — Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan — in New Delhi.
    • This is the first time India is hosting a conclave of top security officials from Central Asian countries focussing on the evolving security situation in Afghanistan and ways to deal with the threat of terrorism.

    About the meet

    • Central Asia is seen as the northern boundary of the Islamic world.
    • With the Taliban’s return in Afghanistan, the threat of radicalism and possible regrouping of the Islamic State poses a serious security challenge for the countries in the region.
    • From the security perspective, the NSAs discussed the challenges of extremism, terrorism, and radicalisation in the region.
    • NSA said financing is the “lifeblood” of terrorism, and countering it should be a priority.

    What is the Central Asia Region?

    central-aisa
    • Central Asia is a region in Asia that stretches from the Caspian Sea in the west to China and Mongolia in the east, and from Afghanistan and Iran in the south to Russia in the north.
    • It includes the former Soviet republics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

    India-Central Asia Ties

    • India has decades-old wish to connect with the resource and fuel-rich Central Asian nations.
    • Since the emergence of the Central Asian Republics as independent countries in the early 1990s, New Delhi has been trying to establish ties with them.

    Trade and collaboration

    • India’s trade with the five Central Asian Republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan and Tajikistan—was below $ 2 billion in 2018.
    • The potential areas for collaboration include construction, sericulture and pharmaceuticals to IT and tourism.
    • Much of this trade was routed through Iran, Russia or the United Arab Emirates (UAE).

    Efforts for connectivity

    1. Turkmenistan–Afghanistan–Pakistan–India (TAPI) Gas Pipeline
    2. Development of Iran’s Chabahar Port
    3. Zaranj-Delaram Highway
    4. International North-South (Transit) Corridor (INSTC)

    Central Asia’s importance for India

    • Russian backyard: Central Asia has always been seen as Russia’s backyard — some 20-30% of the population is of Russian origin, and Russian is spoken widely.
    • Fossil fuels: While Central Asia is seen as fuel-rich and, hence, important for an energy-starved India.
    • Mineral richness: Central Asian states are also mineral-rich, and Kazakhstan, for one, has been a source of uranium for India’s nuclear power plants.
    • Market for India: A country like India which is seen as a major economy has to have a presence in these markets. INSTC also offers a safe and cost-effective route to the EU (European Union) market.
    • Convergence against Terrorism: India can forge a common position on terrorism and radicalization, which is a matter of concern to the region as much as it is to India.

    Hurdles for India

    • China’s opportunism: China’s trade with Central Asia was $50 billion-$60 billion in the same period. The obvious advantage in China’s favour is geographical proximity.
    • Lack of mutual trust: Unfortunately, many connectivity options are not open to them today due to the lack of mutual trust.
    • Pakistan factor: Tensions with Pakistan mean there is no viable land route towards Central Asia.
    • Iran and the US sanctions: Efforts to look for a circuitous route via Iran (and Afghanistan) have stalled due to US sanctions on Iran.

    Issues in the Iran-Afghanistan bypass route

    Recent events acquire broader geopolitical relevance for India in this route:

    • Taliban true-face: The takeover of Afghanistan by the Pakistan-backed Taliban has severely set back India’s plans in Central Asia.
    • Iran’s bypassing of India: Iran’s overtures has been clearly visible after itself allocating Farzad-B Gas exploration contract to another company bypassing India.

    India’s recent engagement

    • Defence collaboration: In recent years, New Delhi has engaged with Central Asian Republics in the defence sphere through military exercises (say Ex Kazind).
    • Engagement at UN: Political and economic engagement is also important, given the imperatives of working together at a body such as the United Nations (UN).
    • Technological ties: India has set up universities there—Sharda and Amity are examples.

    Scope for expansion

    • Dairy Sector: There is scope for collaboration in the dairy sector.
    • Pharma: Indian firms have been setting up pharmaceutical units in Russia that can serve these countries as well.
    • Info Technology: IT and IT-enabled services are two other areas.
    • Cultural connect: Bollywood movies are quite famous in these countries.

    Way forward

    • India needs to develop into stronger bond of trade and commercial bonds which will be possible once the INSTC crystallizes.
    • The road ahead in the short term is difficult as India doesn’t seem to have any real leverage to get the connectivity projects with Central Asia going.
    • India has been negotiating with individual bilateral partners though.

    Conclusion

    • India does not want the post-Soviet space to be captured by the Chinese, and the NSAs engagement is a key mechanism in Delhi’s toolkit.
    • In June 2002, Vajpayee had said in Almaty that the new “Silk Route Initiative” of India’s foreign policy seeks to build a new Silk Road of Friendship and Cooperation between India and Central Asia.
    • Twenty years later, New Delhi remains on the road, and on the job.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Burning Issue] Good Governance Week

    governance

    Context

    • Recently, the good governance week celebration came to an end. The week included the launching of several programs and initiatives related to good governance.
    • In this context, this edition of the burning issue will elaborate on good governance and good governance week.

    About Good Governance Week

    • In 2014, the Government of India paid tribute to the former Prime Minister of India, Shri Atal Bihari Vajpayee, by declaring his birthday (December 25) as ‘Good Governance Day’ – Susasan Divas.
    • Department of Administrative Reforms and Public Grievances, Ministry of Personnel, Public Grievances & Pensions, Government of India celebrates Good Governance Week from 19-25 December every year.
    • The decision to celebrate Good Governance Week (Sushasan Saptah) was taken by the government in the year of Amrit Mahotsav (75th Year of Independence) ie. 2021.
    • During the week-long celebrations, various activities are taken up to demonstrate the government’s commitment to providing transparent, effective and accountable governance to the people of this country.

    Good Governance Week 2022

    • Good Governance Week (Sushasan Saptah) campaign “Prashasan Gaon Ki Aur” was launched during 20-25 December 2021 and it aimed at showcasing and replicating the best governance practices at the grassroots level. The campaign intended to create a national movement for good governance and motivate the stakeholders both in the government as well as outside the government.
    • The Second Sushasan Saptah to be celebrated during 19th – 25th December 2022, aims at furthering Good Governance at every level in India. As part of the celebrations, a 5-day “Prashasan Gaon ki Ore campaign” is to be organised from 19th December 2022.
    • The Nationwide campaign for the Redressal of Public Grievances and Improving Service Delivery will be held in all Districts, States and Union Territories of India. Over 700 District Collectors will be participating in the Campaign and officials will be visiting Tehsils and Panchayat Samiti Headquarters.
    • District Collectors have also identified 81,27,944 applications for Service Delivery to be disposed of, along with 19,48,122 Public Grievances to be redressed in State Grievance Portals.
    • This is the second time in Amrit Kaal Period, that the Government of India will be conducting a National Campaign at Tehsil level to address Public Grievances and Improving Service Delivery. Prashasan Gaon ki Ore Abhiyaan will create a national movement for good governance that will inspire future generations.
    • 373 Best Good Governance Practices have been identified for discussion in District Level Workshops on December 23, 2022. 43 Success Stories in Public Grievances will also be shared during the Good Governance Week-2022.
    • 3,120 New Services identified by District Collectors across the country will be added for Online Service Delivery.

    What does Good Governance mean?

    • Governance refers to all processes of governing, the institutions, processes and practices through which issues of common concern are decided upon and regulated.
    • Good governance is the process of measuring how public institutions conduct public affairs and manage public resources and guarantee the realization of human rights in a manner essentially free of abuse and corruption and with due regard for the rule of law.
    • While there is no internationally agreed definition of ‘good governance’, it may span the following topics: full respect of human rights, the rule of law, effective participation, multi-actor partnerships, political pluralism, transparent and accountable processes and institutions, an efficient and effective public sector, legitimacy, access to knowledge, information and education, political empowerment of people, equity, sustainability, and attitudes and values that foster responsibility, solidarity and tolerance.

    Good Governance according to United Nations

    The United Nations is playing an increasing role in good governance. According to former UN Secretary-General Kofi Annan, “Good governance is ensuring respect for human rights and the rule of law; strengthening democracy; promoting transparency and capacity in public administration.” To implement this, the UN follows eight principles:

    • Participation – People should be able to voice their own opinions through legitimate immediate organizations or representatives.
    • Rule of Law – Legal framework should be enforced impartially, especially on human rights laws.
    • Consensus Oriented – Mediates differing interests to meet the broad consensus on the best interests of a community.
    • Equity and Inclusiveness – People should have opportunities to improve or maintain their well-being.
    • Effectiveness and Efficiency – Processes and institutions should be able to produce results that meet the needs of their community while making the best of their resources.
    • Accountability – Governmental institutions, private sectors, and civil society organizations should be held accountable to the public and institutional stakeholders.
    • Transparency – Information should be accessible to the public and should be understandable and monitored.
    • Responsiveness – Institutions and processes should serve all stakeholders.

    Features of Good Governance

    • Good education facilities offered by the government have greater employability,
    • Development of basic infrastructures like roads, bridges, power, telecom, airport, irrigation and transport
    • Safety of public life, property, peaceful law and order,
    • Creating new employment opportunities in the government and private sectors, l Effectiveness and efficiency of working of government and its staffs,
    • A good business environment with a free-market economy,
    • Reducing inequalities in society through positive discrimination in favor of the poorest of the poor l Providing total freedom of speech, of religion, of work and attitude of non-interference by government.
    • Provision of more concessions to citizens and free from bias,
    • Good business environment and l Citizen centric services.

    Good Governance in India

    • The concept of “Good governance” is relatively a new term which has come to the limelight in the 1990s; however, the principle of good governance is not new to Indian society.
    • While throwing attention over the state of affairs in ancient India, it is noticed that the king or the ruler was bounded by the dharma which was precisely meant to ensure the good governance for the people. “Rajadharma” was the code of conduct or the rule of law which was superior to the will of the ruler.
    • Even in the great epics like Mahabharat and Ramayana, the rulers abide by the principles of good governance which are more often cited on many occasions.
    • In India, the concept was talked about in the Arthashastra, authored by Chanakya. He mentions the characteristics of a good king thus, “In the happiness of his subjects lies his happiness, in their welfare his welfare; whatever pleases himself, he does not consider as good, but whatever pleases his subjects he considers as good.”
    • Mahatma Gandhi advocated the concept ‘Ram Rajya’ for India based upon the principles of good governance which necessarily meant dreaming of India as a welfare state where the necessities of the down-trodden, the welfare of the commoner and their progress through indigenous industries would become the hallmark.
    • The Constitution of India also embodies the concept the good governance through its list of Fundamental Rights of the citizens and Directive Principle of State Policy.

    Good Governance Initiatives in India

    • Public service guarantee act: The public service guarantee act is also known as the Right to Public Services Act in some states. It provides for legislation and statutory laws that guarantee time-bound delivery of services by the government to the citizen and provides a mechanism for punishing the errant public servant who fails to provide the service stipulated under the statute, within the stipulated time. Madhya Pradesh was the first state to enact the Right to Service Act on 18th August 2010 and Bihar became the second state to implement it on 25th July 2011.
    • Citizen’s Charter: is a non-agency device for people’s participation. It is a document representing an effort to focus on the commitment of public organisations toward their clients/citizens. The Sevottam model is designed as an assessment tool by the Department of Administrative Reforms and Public Grievances (DARPG) in 2006. SEVOTTAM is the ‘Nine Criteria Model for Citizen Centricity’, meaning Uttam Seva or excellence in service delivery.
    • Right to Information: has emerged as a prominent concern in the field of public administration. Article 19(1) (a) of the Constitution includes the Right to Information. Right to Information opens up the government’s records to public scrutiny, thereby arming citizens with a vital tool to inform them about what the government does and how effectively; thereby making the government more accountable.
    • Corporate Social Responsibility (CSR): a governance-centric approach to citizen’s welfare, is an obligation on the part of the corporates to act in a manner that will serve the best interests of the society. The enactment of Section 135 of the Companies Act 2013 made CSR spending and reporting mandatory for the first time and brought CSR initiatives of Indian corporates under the purview of corporate law.
    • Good Governance Index: The Good Governance Index Was launched on the occasion of Good Governance Day on 25 December 2019. The Good Governance Index is a uniform tool across States to assess the Status of Governance and the impact of various interventions taken up by the State Government and Union Territories.
    • Some other notable initiatives: that enable better governance include the MyGov citizen engagement platform, MEITY’s e-governance platform, Digital India, Niti Aayog’s Aspirational Districts,

    Challenges to Good Governance in India

    • Corruption: Corruption has virtually spread in almost all aspects of public life. It not only averts the benefits of globalization to reach the common man but also denies transparency, accessibility and accountability, confuses rules and procedures, and proliferate mindless control and poor commitments at all levels. Hence,
    • The criminalization of Politics: The nexus of crime and politics is so strong that the common citizens of the country have no stand to say or exert their rights. In order to prevent such misuses on May 2, 2002, the Supreme Court of India has given a historic judgment following the public interest litigation (PIL) led by an NGO that, every candidate contesting an election to Parliament, State Legislatures or Municipal Corporations has to give true declarations of candidate’s educational qualifications, criminal charges and financial records.
    • Judicial delays: The most severe challenge relates to the complexity of adjudication as legal proceedings are lengthy and costly and the judiciary lacks personnel and logistics to deal with these matters.
    • Weak accountability mechanism: The general weakness of accountability mechanisms impedes improving services across the board. Bureaucratic complexities and procedures make it difficult for a citizen as well as civil society to navigate the system for timely and quality delivery of services.
    • The lack of transparency and secrecy: that have been associated with the administrative system from colonial times, besides generating corruption, has also led to injustice and favoritism.
    • The frequent transfer of key civil servants: has enormously contributed to failures in the delivery of services. In some states, the average tenure of a District Magistrate is less than one year. Development projects have also suffered as a result of frequent changes in project directors.

    Way forward

    • The step is to evolve from an “application-based right to access information” to “public information being automatically shared on a public platform” using technology. 
    • Inclusion of the public: Good governance is not created solely by the government. Every stakeholder has an equal role in achieving it. There is a need for greater accountability of any action/decision taken within the public domain. Inclusion will also make sure that well-intentioned government programs and policies do not stray from their intent. The need of the hour is to have stakeholder consensus in the government’s policies and projects. Any program being implemented must be outcome-oriented and achieved through larger stakeholder consensus building.
    • Regular monitoring of government schemes: All government schemes should be regularly monitored and evaluated by an independent (third) party, to ensure successful implementation, provide last-mile delivery, and give an unbiased view. This conforms with the global standards established by the UN, World Bank and others.
    • Consolidation of multiple redundant ministries: and overlapping schemes should be initiated, to streamline operations, improve efficiency and outcomes for better public service delivery, thereby improving the return on public investment.
    • To ameliorate criminalization from politics: It is necessary to ameliorate criminalization from politics and the seriousness of the matter should be properly worked out. Educated youngsters should be encouraged to enter into Indian politics and these young leaders should be properly nourished by patriotic commitments and abide by the core principles of democratic governance.
    • Check corruption: There is a foremost need to check corruption at all levels by raising public consciousness and strong commitments not to make dishonest compromises that would put down the moral values and ethics of life.

    Conclusion

    • Observing Good Governance Day (December 25) will continuously remind us that the ruling government should be development oriented, inclusive, yet forward-looking and global in its approach. It is only with good governance, that Gandhiji’s vision of creating a strong and prosperous India shall be enabled and fulfilled. 

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Sansad TV] Perspective: Maritime Anti-Piracy Bill 2022

    [Sansad TV] Perspective: Maritime Anti-Piracy Bill 2022

    Context

    • Parliament recently passed the Maritime Anti-Piracy Bill 2022, with the Rajya Sabha passing it by voice vote.
    • Although the Bill was supported by members cutting across party lines, some concerns over certain provisions in the Bill were raised.

    What is Maritime Piracy?

    • Essentially piracy is any illegal act, broadly defined as robbery on the high seas (i.e. outside of the 12nm limit of Territorial Waters).
    • However, robbery occurring within the 12nm limit is treated as a crime of robbery under the laws of the coastal state.

    The aim of piracy is to extract the maximum monetary value possible by:

    • Hit and Run – Theft of ships’ cash and/or stores
    • Kidnap for ransom– removal of persons to extort release money
    • Hijack for Ransom– detention of the target to extort release money
    • Stealing ship and cargo – targeting of vessels (often during Ship-Ship operations) to remove cargo. 

    What factors favour pirate operations?

    1. Legal and jurisdictional opportunities
    2. Favourable geography
    3. Conflict and disorder
    4. Under-funded law enforcement/inadequate security
    5. Permissive political environments
    6. Cultural acceptability/maritime tradition ex. in Somalia
    7. Reward

    Maritime Anti-Piracy Bill 2022: Key Features

    Defining Piracy: The Bill defines piracy as any illegal act of violence or detention or damage or destruction committed by any person, or by the crew or any passenger of a private ship. Such illegal acts come under the definition of piracy if they are committed against another ship or any person or property on board a ship, on the high seas. 

    Compliance with UNCLOS: The Bill will bring the United Nations Convention on the Law of the Sea (UNCLOS) into domestic law and empower Indian authorities to take action against piracy on the high seas. The Bill covers the sea beyond the Exclusive Economic Zone (EEZ), which is 200 nautical miles off the coast of India.

    Penal provisions: The Bill provides for a maximum punishment of life imprisonment or fine or both, for anybody who commits any act of piracy. This punishment can increase to a life imprisonment or death penalty if any person is found to have caused somebody’s death or attempts to cause somebody’s death while committing the act of piracy. 

    Designated courts: The Bill also provides for designation of a specific sessions court in the States for speedy trial of offences under the law. Notably, this court would have the jurisdiction to handle cases against any person apprehended by or in the custody of the authorised personnel or police– irrespective of their nationality or citizenship of the person.

    Broader jurisdiction: These courts would be able to handle trials against foreigners caught under this law as well, along with Indian citizens, or resident foreign nationals in India or stateless people. 

    Need for such law

    • Global compliance: India is a party to the United Nations Convention on the Law of the Sea adopted by the United Nations on 10 December 1982, and ratified the convention on 29 June 1995.
    • Filling the legislative gap: Up until now, it did not have any domestic law on maritime piracy.
    • Narrow scope of IPC: The Indian Penal Code provisions relating to armed robbery are usually used to prosecute pirates. However, this has proven to be inadequate in the past.
    • Rising cases of Piracy: The Gulf of Aden has seen a spurt in attacks by pirates operating from Somalia since 2008.
    • Vicinity to major shipping routes: This route is used by 2,000 ships each month for trade between Asia and Europe and the East coast of Africa.  
    • Increasing India’s naval capabilities: India on its part is actively engaged in anti-piracy operations in the Gulf of Aden and the Eastern Arabian Sea.

    Issues with the Bill

    • Capital Punishment: Under the Bill, if a person, while committing an act of piracy causes or seeks to cause death, he will be punished with death. This implies a mandatory death penalty for such offences.
    • Ambiguity over imprisonment: The Bill provides for imprisonment of up to 14 years if a person participates in an act of piracy. However, committing an act of piracy is punishable with life imprisonment.
    • 12Nm boundary: The Bill applies to all parts of the sea adjacent to and beyond the limits of the Exclusive Economic Zone (EEZ) of India, i.e., beyond 200 nautical miles from the coastline.

    Way ahead

    • Maritime security: By bringing a strong legislation, India has taken a lead on the issue of maritime security at a multilateral forum.
    • Protection of maritime trade: More than 90 percent of trade taking place by sea routes. So Anti-Piracy Bill is the need of the hour as the Bill will give the right to take action on high seas.
    • Secured Freedom of navigation (FON): The Bill will strengthen India’s credentials as a partner with other countries to make the world more piracy free.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Burning Issue] CBD’s Kunming-Montreal Global Biodiversity Framework (GBF)

    biodiversity

    Context

    • The United Nations Biodiversity Conference (COP15) ended in Montreal, Canada, on 19 December 2022 with a landmark agreement to guide global action on nature through to 2030.
    • Chaired by China and hosted by Canada, COP 15 resulted in the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF) on the last day of negotiations. 
    • In this context, this edition of the burning issue will tell about the agreement in detail.

    About Convention on Biodiversity (CBD)

    • The CBD known informally as the Biodiversity Convention is a multilateral treaty having its origin at the Rio Earth Summit in 1992.
    • The convention has three main goals: the conservation of biodiversity, the sustainable use of its components, the fair and equitable sharing of benefits arising from genetic resources.
    • Its objective is to develop national strategies for the conservation and sustainable use of biological diversity, and it is often seen as the key document regarding sustainable development.
    • It has two supplementary agreements, the Cartagena Protocol and Nagoya Protocol.

    The Kunming-Montreal Global Biodiversity Framework (GBF)

    Need of the Agreement

    • Dangerous decline in nature: The stakes could not be higher: the planet is experiencing a dangerous decline in nature as a result of human activity. It is experiencing its largest loss of lives since dinosaurs. One million plant and animal species are now threatened with extinction, many within decades.
    • Failure of Aichi targets: The targets are ambitious, considering that biodiversity is in a poor state. In 2020, the world failed to meet the last set of targets, the Aichi Targets. Countries would need to ensure success this time around.

    Aim

    • The GBF aims to: Address biodiversity loss, restore ecosystems and protect indigenous rights. The plan includes concrete measures to halt and reverse nature loss, including putting 30 per cent of the planet and 30 per cent of degraded ecosystems under protection by 2030. It also contains proposals to increase finance to developing countries – a major sticking point during talks.

    Goals

    • The GBF consists of four overarching global goals: to protect nature, including halting human-induced extinction of threatened species and reducing the rate of extinction of all species tenfold by 2050; sustainable use and management of biodiversity to ensure that nature’s contributions to people are valued, maintained and enhanced; fair sharing of the benefits from the utilization of genetic resources, and digital sequence information on genetic resources; and that adequate means of implementing the GBF be accessible to all Parties, particularly Least Developed Countries and Small Island Developing States.
    biodiversity

    Targets

    The GBF also features 23 targets to achieve by 2030, including:

    • Effective conservation and management of at least 30 per cent of the world’s land, coastal areas and oceans. Currently, 17 percent of land and *8 per cent of marine areas are under protection.
    • Restoration of 30 per cent of terrestrial and marine ecosystems
    • Reduce to near zero the loss of areas of high biodiversity importance and high ecological integrity
    • Halving global food waste
    • Phasing out or reforming subsidies that harm biodiversity by at least $500 billion per year, while scaling up positive incentives for biodiversity conservation and sustainable use
    • Mobilizing at least $200 billion per year from public and private sources for biodiversity-related funding
    • Raising international financial flows from developed to developing countries to at least US$ 30 billion per year
    • Requiring transnational companies and financial institutions to monitor, assess, and transparently disclose risks and impacts on biodiversity through their operations, portfolios, supply and value chains

    Reporting of the Outcomes

    • The countries will monitor and report every five years or less on a large set of indicators related to progress. The CBD will combine national information submitted by late February 2026 and late June 2029 into global trends and progress reports.

    Creation of a dedicated fund

    • The Global Environment Facility has been requested to establish a Special Trust Fund to support the implementation of the Global Biodiversity Framework (“GBF Fund”). This is to ensure successful implementation.
    • Delegates have agreed to establish within the GBF a multilateral fund for the equitable sharing of benefits between providers and users of digital sequence information on genetic resources (DSI), to be finalized at COP16 in Türkiye in 2024.

    Key outcomes of the Agreement

    [A] 30×30 Target

    • Delegates committed to protecting 30% of land and 30% of coastal and marine areas by 2030, fulfilling the deal’s highest-profile goal, known as 30-by-30.
    • Currently, 17% of terrestrial and 10% of marine areas are protected.
    • Indigenous and traditional territories will also count toward this goal, as many countries and campaigners pushed for during the talks.
    • The deal also aspires to restore 30% of degraded lands and waters throughout the decade, up from an earlier aim of 20%.
    • And the world will strive to prevent destroying intact landscapes and areas with a lot of species, bringing those losses “close to zero by 2030”.

    [B] Money for nature

    • Signatories aim to ensure $200 billion per year is channeled to conservation initiatives, from public and private sources.
    • Wealthier countries should contribute at least $20 billion of this every year by 2025, and at least $30 billion a year by 2030.

    [C] Big companies report impacts on biodiversity

    • Companies should analyse and report how their operations affect and are affected by biodiversity issues.
    • The parties agreed to large companies and financial institutions being subject to “requirements” to make disclosures regarding their operations, supply chains and portfolios.
    • This reporting is intended to progressively promote biodiversity, reduce the risks posed to businesses by the natural world, and encourage sustainable production.

    [D] Harmful subsidies

    • Countries committed to identifying subsidies that deplete biodiversity by 2025, and then eliminating, phasing out or reforming them.
    • They agreed to slash those incentives by at least $500 billion a year by 2030, and increase incentives that are positive for conservation.

    [E] Pollution and pesticides

    • One of the deal’s more controversial targets sought to reduce the use of pesticides by up to two-thirds.
    • But the final language to emerge focuses on the risks associated with pesticides and highly hazardous chemicals instead, pledging to reduce those threats by “at least half”, and instead focusing on other forms of pest management.
    • Overall, the Kunming-Montreal agreement will focus on reducing the negative impacts of pollution to levels that are not considered harmful to nature, but the text provides no quantifiable target here.

    [F] Monitoring and reporting progress

    • All the agreed aims will be supported by processes to monitor progress in the future, in a bid to prevent this agreement from meeting the same fate as similar targets that were agreed upon in Aichi, Japan, in 2010, and never met.
    • National action plans will be set and reviewed, following a similar format used for greenhouse gas emissions under U.N.-led efforts to curb climate change.
    • Some observers objected to the lack of a deadline for countries to submit these plans.

    India’s presence at the Conference

    • India was represented at the conference by Union Environment Minister Mr. Bhupendra Yadav.
    • India mainly put forward the arguments for supporting the case of developing countries and suggested for the creation of a biodiversity fund to help developing countries successfully implement the global framework.
    • India also called for the application of the ‘Common but Differentiated Responsibilities and Respective Capabilities’ (CBDR) principle while deciding the responsibilities of different countries as the developing countries bear most of the burden of climate change and, therefore, require adequate funding and technology transfer.

    Few concerns with the agreement

    • Activist organization Avaaz has pointed out that Goal A does not contain the 2030 milestones and enough numerical values anymore. This would make it difficult to assess whether or not the GBF leads to positive impacts on ecosystems. 
    • Avaaz also said there was still an imbalance between the amounts pledged in the text and real needs.
    • The framework text has indicated that the resources needed are up to $700 billion per year but the flows will be increased only to $200 billion per year by 2030. Avaaz said the framework should specify how this gap will be closed.  
    • There is now consensus that $200 billion will be made available every year from all sources by 2030. However, it is not clear how this funding would be disbursed. Some Parties favour the establishment of a stand-alone fund outside the existing funding structure while others want to improve the existing funding mechanisms.
    • Also, India’s Environment Minister Bhupender Yadav said that a numerical global target for pesticide reduction in the agriculture sector is unnecessary and must be left for countries to decide. The agriculture sector in India, like other developing countries, is the source of “life, livelihoods, and culture for hundreds of millions,”.
    • There is no 2030 target for increasing species population abundance. Some earlier drafts included details about enlarging the area of natural ecosystems by at least 5% by 2030, and these targets were removed.
    • The term “nature positive”, which scientists had said would be the biodiversity equivalent of “net zero”, did not make the final document. Many will see this as a missed opportunity – a unifying idea similar to keeping global heating to within 1.5C.
    • The main criticism of 30×30 (and other area-based conservation targets) is that implementing them risks violating human rights (original forest dwellers).

    Conclusion

    • This agreement means people around the world can hope for real progress to halt biodiversity loss and protect and restore our lands and seas in a way that safeguards our planet and respects the rights of indigenous peoples and local communities.
  • [Sansad TV] Perspective: India’s Soft Power

    Context

    Despite India’s rich history and unrivaled cultural diversity, the country remains hampered by the lack of a comprehensive soft power strategy, said the Parliamentary standing committee on external affairs. 

    What is Soft Power?

    • In politics (and particularly in international politics), soft power is the ability to co-opt rather than coerce (contrast hard power).
    • It is the capacity to attract and persuade others to do things they otherwise wouldn’t.
    • It involves shaping the preferences of others through appeal and attraction.
    • Soft power resources are the assets that produce attraction or centre of attraction in geopolitical arena.

    Etymology of the word

    • Joseph Nye, a US foreign policy veteran, coined the phrase soft power in 1990.
    • He encourages readers of his book The Future of Power to think of soft power in terms of resources
    • Power is derived from resources, and soft power is no different.
    • Hard power rests on military resources like navy fleets, attack aircraft and a capacity to inflict harm.
    • Soft power rests on three primary resources:
    1. Culture,
    2. Political values and
    3. Foreign policy

    Why discuss this?

    • In addition to economic and military power, the idea of Soft Power has gained traction during the past few decades.
    • Indian arts, culture, yoga and spiritualism, culinary varieties, festivals, music and dance forms etc, have attracted people from all around the world for centuries.

    Projecting India’s Soft Power

    soft power

    Areas which can be used to further India’s soft power include-

    1. Yoga and Ayurveda
    2. Spiritual knowledge of India ex. Save Soil movement by Sadhguru
    3. Indian cuisine
    4. Indian film industry ex. Indian movies are always cherished in EU and South Asia.
    5. Indian sports and games
    6. Indian handicrafts and GI goods ex. PM Modi gifting local handicrafts to foreign dignitaries
    7. Epics like Ramayana and Mahabharata
    8. Sustainable practices of India like environmental friendliness and respect towards other creatures. Ex: About 300 years ago, more than 300 Bishnois were killed while trying to peacefully protect a grove of Khejri trees in Rajasthan.

    Limitations of soft power

    • Soft power has been criticized as for being ineffective or less effective tool in diplomacy.
    • Actors in international relations respond to only two types of incentives: Economic incentives and Forceful coercion.
    • As a concept, it can be difficult to distinguish soft power from hard power.
    • Rising powers such as China, are creating new approaches to soft power ex. Debt Traps, thus using it defensively.
    • Soft power can backfire, leading to reputational damage or loss, or what has been termed ‘soft disempowerment’. Ex. India’s perception in Maldives.

    Initiatives by India showcasing its soft power

    • Principle of ‘Vasudhaiv Kutumbakam’
    • Non-Alignment Movement
    • ‘Neighborhood First’ Policy
    • Vaccine diplomacy
    • Aid to Sri Lanka
    • Developmental aids in Afghanistan
    • Humanitarian assistance for disaster relief (HADR) in the neighborhood
    • Political sensitization of leaders e. Late foreign minister responding to Tweets

    Major achievements

    • India has moral high ground at the world forum especially due to the non-violent manner in which we had achieved our independence.
    • International support for tough decisions like abrogation of article 370, and maintaining neutrality in the Russia-Ukraine War. 
    • It keeps India distant from world conflicts like recently in Syria, Sudan, Israel-Palestine issue. So India earns goodwill from all over the world.

    Threats to India’s soft power

    • India’s older regimes and academia did little to encourage, protect or to benefit from Yoga.
    • Perhaps no other country in recent times has so ignored the potential value of its soft power.
    • There is a cultural battle occurring in the media and academia, in which India’s civilizational views are poorly represented.
    • India’s cultural diplomacy is often labeled by the left liberals as Hindutva Politics.

    Recommendations by the Committee on External Affairs

    • Strategy document: The committee has recommended that a policy document should be prepared on India’s soft power projections along with a Soft Power Matrix for evaluating soft power outcomes.
    • Inter-ministerial synergy: The report highlighted the need for greater synergy among MEA and other Ministries, Departments, and agencies involved in India’s soft power projections and cultural diplomacy.
    • Revamping the Indian Council of Cultural Relations: China is estimated to spend about $10 billion a year just on its Confucius Institutes and soft power promotion whereas ICCR and other agencies put together spend only Rs. 300-400 crore.
    • Increased funding: To step up India’s efforts, the committee recommended a minimum 20% hike in the budget of the Indian Council for Cultural Relations (ICCR). 
    • Talent acquisition: MEA representatives admitted that finding and inducting trained personnel into the government has been a challenge. Bureaucrats, they submitted, were not always the right pick for cultural diplomacy. 

    Way forward

    • India should move beyond asanas and analysis and take action.
    • Having the Indian story merely out there, jostling with a hundred other stories, isn’t necessarily winning the war of narrative.
    • Our cultural outreach must be well-oiled, well-funded, and primed to produce geopolitical clout.
    • Our moves — whether they be hard-to-power thrusts or soft power maneuvers — must emanate from consistent strategy.
    • In the age of the internet, India must amplify its strengths and work rapidly to right the wrongs.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Burning Issue] Skirmishes at the Line Of Actual Control

    line

    Context

    • Three months after the last round of troop disengagement in eastern Ladakh signaling restoration of peace, soldiers from India and China clashed once again, this time in Arunachal Pradesh.
    • This was contested by Indian troops firmly and resolutely. This face-off led to minor injuries to a few personnel from both sides.
    • In this context, this edition of the burning issue will analyze the LAC standoffs between India and China.

    Line of Actual Control Crisis- The Tawang Episode

    • Soldiers of the two sides clashed in Yangtse, in the upper reaches of the Tawang sector in Arunachal Pradesh on December 9, 2022.
    • PLA troops tried to transgress the LAC in Yangtse area of the Tawang Sector and unilaterally change the status quo.
    • Within Tawang, there are three “agreed areas” of differing Indian and Chinese perceptions of the LAC. Yangtse, which is about 25 km from Tawang town, north of the Lungroo grazing ground, is one of these areas.
    • As a result, it has been the site of regular “physical contact” between the Indian Army and the PLA, especially as the high ground is on the Indian side, giving it a commanding view of the Chinese side.
    • Both sides immediately disengaged from the area. As a follow-up to the incident, the Indian Army commander in the area held a flag meeting with his counterpart to discuss the issue in accordance with structured mechanisms to restore peace and tranquillity.

    Some previous LAC crisis incidents

    • Depsang in Ladakh, 2013: Chinese troops came across the LAC, pitched tents and refused to move for several weeks until New Delhi threatened to cancel the planned visit of Premier Li Keqiang to India. This might have been a diplomatic victory for the Indian government but it also highlighted the inability of the Indian military to bring an end to the standoff or the unwillingness of the government to let the military take the lead in responding.
    • Chumar in Ladakh, Sept 2014 in the middle of Xi Jinping’s first visit to India: Chinese intruded at Chumar, also in Ladakh, in the middle of Chinese President Xi Jinping’s first state visit to India. This was in keeping with a reasonably long tradition of Chinese transgressions during important visits but it was also notable for confronting Indian troops in an area where they enjoyed a degree of military advantage.
    • Doklam in 2017: China provoked India with infrastructure development in a third country in Bhutan’s Doklam territory. This was a case of China trying to browbeat an Indian treaty ally.
    • Transgression across multiple locations in 2020 and Galwan valley clash: The Chinese PLA took advantage of Covid-19 and a lack of Indian military alertness to transgress across multiple locations on the LAC in eastern Ladakh. On June 15, 2020 episode when 20 Indian soldiers were killed and several others were injured in violent clashes with the PLA troops in Ladakh’s Galwan Valley.

    Reasons for these skirmishes

    • Enforce own perception of LAC: The transgressions, patrol clashes, faceoffs and flag meetings to resolve it has been a common feature to dominate or enforce own claim or own perception of LAC China and will continue to be so till the LAC is demarcated.
    • Difficult terrain: Rivers, lakes and snowcaps along the frontier mean the line can shift, bringing soldiers face to face at many points, sparking a confrontation.
    • Competition to build infrastructure: The two nations are also competing to build infrastructure along the border, which is also known as the Line of Actual Control. India’s construction of a new road to a high-altitude air base is seen as one of the main triggers for a deadly 2020 clash with Chinese troops.
    • Promote nationalism and divert attention: Chinese President Xi Jinping may be attempting to stoke nationalistic fervor out of his aggressive nationalistic stance by playing the victim card to divert domestic discontent due to the Zero Covid policy, downslide in the Chinese economy and other reasons.
    • Increase financial cost for India: Unhappy with the fastest-growing economy, a faceoff in winter may activate political debate in democratic India, and the Indian government may be compelled to deploy more troops throughout winters in all sectors, thereby increasing the financial cost for India by LOCisation of LAC.
    • India’s infrastructure development: China enjoyed gross asymmetry in infrastructure development in its favour for too long and is not comfortable with Indian effort to catch up in this regard; hence disruption in development activities along borders suits its design.

    Other concerns in India-China Relation

    • Belt Road Initiative: India has objected to this, since its inception on grounds of violating its sovereignty pointing to China Pakistan Economic Corridor.
    • Non-reciprocal steps by China: India’s support to China on global issues has not led to Beijing’s reciprocation for instance. China opposed India’s permanent membership to UN Security Council and entry into NSG.
    • High trade deficit: India faces a trade imbalance heavily in favor of China. In 2017-18, the trade deficit has gone wide to US$62.9 billion in China’s favor.
    • Countering each other: China has expressed concerns about Indian military and economic activities in the disputed South China Sea. The same way India is also concerned about rising Chinese activities in the Indian Ocean.
    • China’s strong strategic bilateral relations with Pakistan and other neighboring countries like Nepal and Myanmar are the cause of concern as these countries act as buffer states.

    Possible solutions to LAC standoffs

    • Be ready for all contingencies: With no de-escalation by the Chinese in sight, India should continue to be ready for all contingencies with similar deployment along LAC, in the coming months/years, including creating some more leverage, if the situation demands so.
    • Prevent LOC-isation of LAC: The Indian aim should be not to concede Chinese attempt to redraw LAC, or LOC-isation of the LAC further.
    • Be proactive in dealing with China: A change in mindset is required, from being reactive to being proactive with additional intelligence, surveillance and offensive capability to demonstrate the capacity to encroach into Chinese sensitive areas, in absence of which China has assumed no threat from India, with the freedom to encroach anywhere, at will.
    • Pass a border defense law similar to China: If the Chinese have passed a Border Defence Law, India too should pass some laws to facilitate emphatic border construction and extend schemes under the Border Infrastructure Management Authority (BIMA) as near as the LAC as is practically feasible.
    • Capacity building: India must continue capacity building in all domains, including the maritime domain, where Chinese vulnerable sea lines of communications can be threatened. Besides ongoing infrastructure development along borders, the scope of the Border Area Management Programme (BAMP) needs to be enhanced.

    What are the options for India to learn from the past and see what lies ahead in India-China relations?

    • Inevitable Race: The prevailing tension on the China-India border is a symptom of the broader strategic competition between the two Asian neighbors.
    • Equal seriousness: Both sides should treat the military escalation along LAC with equal seriousness.
    • Armed coexistence: Even after the resolution of the present standoff in eastern Ladakh, both sides may be in a prolonged period of armed coexistence as a new normal. As the forces on both sides are likely to be relatively balanced, it would be advantageous for both to return to the agreements and understandings from 1993 onward and improve upon them. Clarifying the LAC is a crucial step in this effort.
    • Address trade imbalance: India has flagged the unsustainable trade imbalance at the front and center of the relationship, and this has gone unaddressed. China will need to work on resolving the trade deficit with India. At any rate, decoupling will happen selectively, in the same way, and for the same reasons that China is choosing to decouple from the United States. A balanced trade and economic relationship might lay a solid foundation for future relations, given the size of both economies.
    • Dialogue is necessary: Better understanding of each other’s regional initiatives through open dialogue is important to build trust. The Indo-Pacific vision is as much a developmental necessity for India as the BRI may be to China. Part of building trust must be an open discussion on each other’s intentions in key regions South Asia and the northern Indian Ocean and East Asia and the western Pacific as well as respect for each other’s special positions in the western Pacific and northern Indian Oceans.
    • Protect the core interest: The two sides would need to accommodate the legitimate interests of the other side on key partnerships: China’s with Pakistan and India’s with the United States. These may not be desirable, but in the current circumstances neither will give up its partners, and both India and China could talk through a modus vivendi on the red lines of concern.

    EAM S. Jaishankar’s Suggestion to deal with China

    • The External Affairs Minister suggested “Three Mutuals” and “Eight Broad Propositions” as a way forward for the relationship.
    • Three mutuals
    • Mutual Respect and Mutual Sensitivity to each other concerns and Mutual Interests to cooperate are the “determining factors” for India-China relations to grow.
    • Eight Major propositions
    • Adhering to commitment: The first proposition was that agreements already reached must be adhered to in their entirety, both in letter and in spirit.
    • Respect for LAC: Both sides also needed to strictly observe and respect the LAC, and any attempt to unilaterally change the status quo was completely unacceptable.
    • Maintaining peace and tranquillity: Peace and tranquillity in border areas were the basis for the development of the relationship in other domains. If that was disturbed, he said, the rest of the relationship would be too.
    • Broader partnership: The fourth proposition was that while both remain committed to a multipolar world, they should recognize that a multipolar Asia was one of its essential constituents.
    • Reciprocity: While each state had its interests, concerns and priorities, sensitivities to them could not be one-sided and relations were reciprocal. As rising powers, neither should ignore the other’s set of aspirations.
    • Divergences management: While both sides had made a common cause on development and economic issues and common membership of plurilateral groups was a meeting point, there were divergences when it came to interests and aspirations.
    • Civilizational ties: The last proposition was that as civilizational states, India and China must always take the long view.
    • Cooperation and competition: Even before the events of 2020, the relationship had reflected a duality of cooperation and competition.

    Conclusion

    • The two countries are standing at a crossroads, and this might be the final chance to take the path to the coexistence of cooperation and competition. If not, a new phase of antagonistic rivalry may be starting, with the countries sliding into possible confrontation as the strategic periphery of China collides with the strategic backyard of India in the Indian Ocean region.
    • Therefore, China and India should be “Good Neighbors, Good Friends,” as both countries are “important engines of the world economic growth.” By building on that theme, the two countries should “enhance dovetailing of the two countries’ development strategies” to build a “manufacturing partnership.”

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • [Sansad TV] Perspective: Inter-State Border Disputes in India

    Context

    • Union Home Minister held a meeting with the Chief Ministers of Maharashtra and Karnataka on the border dispute between the two States.
    • Both sides agreed that neither State will press their claims further till the judgement of the Supreme Court on this matter and discuss this issue in detail.

    Inter-state Border Disputes in India: A Backgrounder

    • As of now, no interstate border dispute has been resolved in independent India.
    • Karnataka and Maharashtra are not the only two States involved in the border dispute.  
    • There are boundary disputes arising out of the demarcation of boundaries and claims and counter-claims over territories between-
    states

    [1] Karnataka-Maharashtra

    • The Belgaum district is arguably part of one of the biggest inter-state border disputes in India.
    • The district has a large Marathi and Kannada-speaking populations and has been at the centre of a dispute for a long time.
    • The area came under Karnataka in 1956 when states were reorganized and till then it was under the Bombay presidency.

    [2] Assam-Mizoram

    • The border dispute between Assam and Mizoram is a legacy of two British-era notifications of 1875 and 1933, when Mizoram was called Lushai Hills, a district in Assam.
    • The 1875 notification differentiated Lushai Hills from the plains of Cachar and the other demarcated boundary between Lushai Hills and Manipur.
    • While Mizoram became a state only in 1987 following years of insurgency, it still insists on the boundary decided in 1875.
    • Assam, on the other hand, wants the boundary demarcated in 1986 (based on the 1933 notification).
    • Mizoram says the 1986 agreement is not acceptable as the Mizo civil society was not consulted at that time.

    [3] Haryana-Himachal Pradesh

    • The Parwanoo region has had the spotlight over the border dispute between the two states.
    • It is next to the Panchkula district of Haryana and the state has claimed parts of the land in Himachal Pradesh as its own.

    [4] Himachal Pradesh-Ladakh

    • Himachal and Ladakh lay claim to Sarchu, an area on the route between Leh and Manali.
    • It is considered a major point where travellers stop when travelling between the two cities.
    • Sarchu is in between Himachal’s Lahul and Spiti district and Leh district in Ladakh.

    [5] Arunachal Pradesh-Assam

    • Arunachal’s grievance is that the re-organisation of North Eastern states unilaterally transferred several forested tracts in the plains that had traditionally belonged to hill tribal chiefs and communities to Assam.
    • After Arunachal Pradesh achieved statehood in 1987, a tripartite committee was appointed which recommended that certain territories be transferred from Assam to Arunachal.
    • Assam contested this and the matter is before the Supreme Court.

    [6] Meghalaya-Assam

    • The problem between Assam and Meghalaya started when the latter challenged the Assam Reorganisation Act of 1971, which gave Blocks I and II of the Mikir Hills or present-day Karbi Anglong district to Assam.
    • Meghalaya contends that both these blocks formed part of the erstwhile United Khasi and Jaintia Hills district when it was notified in 1835.
    • Meghalaya bases its case on survey maps of 1872 and 1929 and certain notifications of 1878 and 1951, while Assam wants to go by the rejected recommendations of the Churachand Committee.

    [7] Assam-Nagaland

    • The longest-running border dispute in the North East is between Assam and Nagaland, which began soon after Nagaland became a state in 1963.
    • The Nagaland State Act of 1962 had defined the state’s borders according to a 1925 notification when Naga Hills and Tuensang Area (NHTA) were integrated into a new administrative unit.
    • Nagaland, however, does not accept the boundary delineation and has demanded that the new state should also have all Naga-dominated areas in North Cachar and Nagaon districts.
    • Since Nagaland did not accept its notified borders, tensions between Assam and Nagaland flared up soon after the latter was formed, resulting in the first border clashes in 1965.
    • This was followed by major clashes between the two states along the border in 1968, 1979, 1985, 2007, 2014 and 2021.

    Genesis of such disputes

    • Reorganization considerations: When India started carving out states in 1953, the States Reorganisation Commission said territorial readjustments between (states) should not assume the form of disputes between alien powers.
    • Lingual assertion: Several inter-state border disputes have their roots in the reorganisation of states in the 1950s … (which) was primarily based on language.
    • Colonial division: Many of these state demarcations were based on district boundaries created by the British. For example, partition of Bengal led to present day Assam issue.
    • Inequitable sharing of resources: These territorial contests are part of a larger set of differences over resources between states — over access to river waters.
    • Lack of constitutional mechanism: Article 262 is on the adjudication of disputes relating to waters of inter-state rivers or river valleys. There is no comparable provision on disputes on land.
    • Political opportunism: Frankly, no serious efforts have been made to resolve the disputes. Political parties have used this for vote bank politics.

    Why does NE have so many border disputes?

    • Ethnocentrism was ignored: States Reorganisation Commission went ahead and recommended the creation of just one state, Assam, which would administer what are now Mizoram, Meghalaya, Nagaland, Arunachal Pradesh and Tripura.
    • Difficult border demarcation due to terrain: The other complexity has been terrain — rivers, hills and forests straddle two states in many places and borders cannot be physically marked.
    • Primitive populations were ignored: Colonial maps had left out large tracts of the northeast outside Assam as “thick forests” or marked them “unexplored”. Indigenous communities were, for the most part, left alone.
    • Political motivations behind reorganization: Boundaries would be drawn for administrative convenience when the “need” arose. The 1956 demarcation did not resolve the discrepancies.
    • Historic discrepancies: Mizoram got its first recorded boundary in 1875 after a survey of 6,500 sq. miles of “new” territory, unmapped before, to separate it from Cachar and protect British tea plantations. When Mizoram was created, it was way smaller than the 1875 map by about 750 sq km.  
    • Apathy of centre: The Inter-State Council constituted to support Centre-state and inter-state coordination and collaboration hasn’t met for the last six years although it’s supposed to meet thrice a year.

    Resolving such conflict

    • Zonal councils: The States Reorganization Act, 1956, which established the new linguistic states, also set up an institutional mechanism to settle disputes. It had set five zonal councils, each comprising the chief and two other ministers of each of the constituent states, and a central minister as chairman.
    • Dialogue: Inter-state border disputes can be resolved by the states themselves or by the Centre through dialogue and political settlements.   
    • Central commissions: The Sundaram Commission recommended a border between Assam and Nagaland (but Nagaland rejected the report).
    • Judicial intervention: Disputes can also be settled by the Judiciary. For instance, the Belgaum issue is still pending in the Supreme Court.

    Issues with such disputes

    • Radicalism and Terrorism: Many terror activities in NE are triggered by the sense of alienation and demand for separate nations (as well as flags) to assert their individual identiy.
    • Secessionist tendencies and separatism: Inter-state disputes need to be settled quickly and impartially otherwise they become festering sores which create friction, prevent development, and give a perverse direction to separatism.
    • Blow to federalism: The ugly and violent clashes between the states are against to the spirit of mutual coexistence and thereby a blow to Ek Bharat, Shreshtha Bharat.
    • Domino effect: Domino effect or chain reaction at other disputed borders or in other inter-state disputes such as river water, migration of people etc. due to trust deficit between states.

    Way forward

    • Land survey-based boundary demarcation: The states must set up state committees to work with a survey of India and other neutral agencies for land surveys.
    • Involving indigenous communities: The local communities can also be engaged in this demarcation of borders.
    • Creating no-man’s land: The centre must remove the encroachments from both sides devise a “no lose” (non-zero sum) solution to territory dispute.
    • Strengthening of Inter-State Councils and Zonal Councils: Frequent meetings of thse Councils for convergence of interests between states and suggest institutional solutions to benefit both by dispute resolution.

    Conclusion

    • Mutual resolution: While states decide how best to settle their disputes, India needs a national, centrally enforced moratorium on actions.
    • Stopping provocations: The Election Commission must punish parties and politicians who engage in border provocations.
    • Political restrain: Political elites must not be allowed to inflame passions along disputed borders to satiate their electoral appetites and territorial ambitions.  
    • Preventing further escalations: The task of integrating the Princely States into the Union of India was far too messier. Following in Patel’s footsteps is easier said than done.

    Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more