Category: Burning Issues

A global collaborative investigative project has discovered Israeli spyware Pegasus was used to target thousands of people across the world.

In India, at least 300 people are believed to have been targeted, including two serving Ministers in the government, three Opposition leaders, several journalists, social activists and business persons.

What is Pegasus?

• All spyware do what the name suggests — they spy on people through their phones.
• Pegasus works by sending an exploit link, and if the target user clicks on the link, the malware or the code that allows the surveillance is installed on the user’s phone.
• A presumably newer version of the malware does not even require a target user to click a link.
• Once Pegasus is installed, the attacker has complete access to the target user’s phone.
• A worrying aspect that has been revealed is the ability of the spyware to infect a device by a ‘zero-click’ attack, which does not require any action from the phone’s user.

A ‘Black Hole’ with no escape

• What makes Pegasus really dangerous is that it spares no aspect of a person’s identity.
• It makes older techniques of spying seem relatively harmless.
• It can intercept every call and SMS, read every email and monitor each messaging app.
• Pegasus can also control the phone’s camera and microphone and has access to the device’s location data.
• The app advertises that it can carry out “file retrieval”, which means it could access any document that a target might have stored on their phone.

Dysfunctions created by Pegasus

Privacy breach: The very existence of a surveillance system, whether under a provision of law or without it, impacts the right to privacy under Article 21 and the exercise of free speech under Article 19.

Curbing Dissent: It reflects a disturbing trend with regard to the use of hacking software against dissidents and adversaries. In 2019 also, Pegasus software was used to hack into HR & Dalit activists.

Individual safety: In the absence of privacy, the safety of journalists, especially those whose work criticizes the government, and the personal safety of their sources is jeopardised.

Self-Censorship: Consistent fear over espionage may grapple individuals. This may impact their ability to express, receive and discuss such ideas.

State-sponsored mass surveillance: The spyware coupled with AI can manipulate digital content in users’ smartphones. This in turn can polarize their opinion by distant controller.

National security: The potential misuse or proliferation has the same, if not more, ramifications as advanced nuclear technology falling into the wrong hands.

Snooping in India:  Legality check

For Pegasus-like spyware to be used lawfully, the government would have to invoke both the IT Act and the Telegraph Act. Communication surveillance in India takes place primarily under two laws:

1. Telegraph Act, 1885: It deals with interception of calls.
2. Information Technology Act, 2000: It was enacted to deal with surveillance of all electronic communication, following the Supreme Court’s intervention in 1996.

Cyber security safeguards in India

• National Cyber Security Policy: The policy was developed in 2013 to build secure and resilient cyberspace for India’s citizens and businesses.
• Indian Computer Emergency Response Team (CERT-In): The CERT-In is responsible for incident responses including analysis, forecasts and alerts on cybersecurity issues and breaches.
• Indian Cyber Crime Coordination Centre (I4C): The Central Government has rolled out a scheme for the establishment of the I4C to handle issues related to cybercrime in the country in a comprehensive and coordinated manner.
• Budapest Convention: There also exists Budapest Convention on Cybercrime. However India is not a signatory to this convention.

The bigger question: Government Involvement

It is worth asking why the government would need to hack phones and install spyware when existing laws already offer impunity for surveillance. The wide array of victims clearly brings the central government and its role to question.

In the absence of parliamentary or judicial oversight, electronic surveillance gives the executive the power to influence both the subject of surveillance and all classes of individuals, resulting in a chilling effect on free speech.

Is Right to Privacy a myth?

• Only in such exceptional circumstances, however, can an individual’s right to privacy be superseded to protect the national interest.
• In today’s times, when fake news and illegal activities such as cyber terrorism on the dark web are on the rise, the importance of reserving such powers to conduct surveillance cannot be undermined.

What should be the basis for surveillance?

The existing provisions are insufficient to protect against the spread of authoritarianism since they allow the executive to exercise a disproportionate amount of power.

• There should be some reasonable basis or some tangible evidence to initiate or seek approval for interception by State authorities.
• Any action without such evidence or basis would be struck down by courts as arbitrary, or invasive of one’s right to privacy.
• Any digression from the ethical and legal parameters set by law would be tantamount to a deliberate invasion of citizens’ privacy and make India a surveillance state.

Solution lies in Judicial Oversight

Surveillance reform is the need of the hour in India.

• The need for judicial oversight over surveillance systems in general, and judicial investigation into the Pegasus hacking in particular is very essential.
• Only the judiciary can be competent to decide whether specific instances of surveillance are proportionate, whether less onerous alternatives are available, and to balance the necessity of the government’s objectives with the rights of the impacted individuals.
• Not only are existing protections weak but the proposed legislation related to the personal data protection fails to consider surveillance while also providing wide exemptions to government.

Way forward

• The security of a device becomes one of the fundamental bedrocks of maintaining user trust as society becomes more and more digitized.
• There is an urgent need to take up this issue seriously by constituting an independent high-level inquiry with credible members and experts that can restore confidence and conduct its proceedings transparently.

Conclusion

• We must recognize that national security starts with securing the smartphones of every single Indian by embracing technologies such as encryption rather than deploying spyware.
• This is a core part of our fundamental right to privacy.
• This intrusion by spyware is not merely an infringement of the rights of the citizens of the country but also a worrying development for India’s national security apparatus.

References:

https://www.thehindu.com/opinion/op-ed/surveillance-reform-is-the-need-of-the-hour/article35414371.ece

https://indianexpress.com/article/technology/tech-news-technology/project-pegasus-experts-fears-apple-android-duopoly-making-life-easier-for-spyware-a-losing-battle-for-users-7413430/

https://www.thequint.com/news/india/pegasus-spyware-malware-attack-nso-group-cyber-security-bjp-india-whatsapp

The Union Ministry of Women and Child Development (WCD) has invited suggestions for the draft Trafficking in Persons (Prevention, Care and Rehabilitation) Bill, 2021.

• The bill once finalized will need the Cabinet approval and assent from both the houses of Parliament to become a Law.
• The new Bill comes after a long process of revisions after the Trafficking of Persons Bill 2018 that was passed by the Lok Sabha’s nod amid a heated debate, never made it to Rajya Sabha.

What is the objective of the new bill?

To prevent and counter-trafficking in persons, especially women and children, to provide for care, protection, and rehabilitation to the victims, while respecting their rights, and creating a supportive legal, economic and social environment for them.

Human Trafficking in India

According to statistics of India’s National Crime Records Bureau (NCRB), trafficking has manifold objectives.

• These include forced labor, prostitution, and other forms of sexual exploitation. According to the NCRB, three out of five people trafficked in 2016 were children below the age of 18 years. Of these, 4,911 were girls and 4,123 were boys.
• Sexual exploitation for prostitution was the second major purpose for human trafficking in India, after forced labor.
• Victims of trafficking in India disproportionately represent people from traditionally disadvantaged gender, caste, and religious groups.
• People from these groups have been systemically kept at a disadvantage in education, access to productive resources and spaces and legal remedies enhancing their vulnerability.
• Across regions, studies have found that majority of victims are women and children belonging to the Scheduled Castes (SCs), the Other Backward Classes (OBCs), the Scheduled Tribes (STs) and minority religions.
• Children are trafficked first and then placed in labor either forced or for earning a sub minimal wage or in case of the more unfortunate ones, i.e. particularly girls and young boys, are forced into sexual exploitation.
• Usurious money-lending and debt bondage will also become a force-multiplier for sourcing child labor from the country-side, from desperate families for bondage and trafficking.

Why the old bill was criticized so much?

• According to the United Nations’ human rights experts; it was not in accordance with the international human rights laws.
• The Bill seemed to combine sex work and migration with trafficking.
• The Bill was criticized for addressing trafficking through a criminal law perspective instead of complementing it with a human-rights based and victim-centred approach.
• It was also criticized for promoting “rescue raids” by the police as well as the institutionalization of victims in the name of rehabilitation.
• It was pointed out that certain vague provisions would lead to blanket criminalization of activities that do not necessarily relate to trafficking.

What are the provisions in the new bill?

(1) Coverage

• Persons on any ship or aircraft registered in India wherever it may be or carrying Indian citizens wherever they may be,
• A foreign national or a stateless person who has his or her residence in India at the time of commission of offence under this Act, and
• The law will apply to every offence of trafficking in persons with cross-border implications.

(2) Wider definition of trafficking

• It extends beyond the protection of women and children as victims to now include transgender as well as any person who may be a victim of trafficking.
• It also does away with the provision that a victim necessarily needs to be transported from one place to another to be defined as a victim.
• “Trafficking in Persons” is defined to include –

a) any person who recruits, transports, transfers, harbors or receives another person;

b) by means of threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of authority or of vulnerability, or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person;

(c) for the purpose of exploitation of that person;

(3) Defines ‘Exploitation’

• Exploitation will include the “prostitution of others” or other forms of sexual exploitation including pornography, any act of physical exploitation, forced labor or services, slavery or practices similar to slavery, servitude or forced removal of organs, illegal clinical drug trials or illegal bio-medical research or the like.
• Examples of aggravated offences listed in the Bill include offences that result in the death of the victim or his dependent or any other person, including death as a result of suicide.
• This also includes cases where the offence has been caused by administering any chemical substance or hormones on a person for the purpose of early sexual maturity.

(4) Government Officers as Offenders

Offenders will also include defense personnel and government servants, doctors and paramedical staff or anyone in a position of authority.

(5) Stringent penalty

• It is proposed that whoever commits the offence shall be punishable with a term for ten years but which may extend to imprisonment for life and shall also be liable to fine which may extend to Rs 10 lakh.
• Offence against a child of less than twelve years of age, or against a woman for the purpose of repeated rape, the person shall be punished with rigorous imprisonment for twenty years, but which may extend to life.
• In case of second or subsequent conviction, the accused may be punished with death sentence. The fine may extend up to Rs 30 lakh.
• When a public servant, or a police officer, or a person in charge of or a staff of a women’s or children’s home or institution is involved, he shall be punishable on conviction for the remainder of natural life.
• A person advertising, publishing, printing, broadcasting or distributing any material that promotes trafficking of a person or exploitation of a trafficked person will invite punishment.

(6) Similarity to Money laundering Act

• Property bought via such income as well as used for trafficking can now be forfeited with provisions set in place, similar to that of the money laundering Act.

(7) Investigation agency

The National Investigation Agency (NIA) shall act as the national investigating and coordinating agency responsible for the prevention and combating of trafficking in persons.

(8) Timeframe for granting compensation

• The district legal services authority (DLSA) shall provide immediate relief to the victim and dependent, including aid and assistance for medical and rehabilitation needs, within seven days.
• The DLSA shall award interim relief to a victim or any dependant within a period of thirty days of an application submitted and after due assessment.
• The bill also says the investigation needs to be completed within 90 days from the date of the arrest of the accused.

(9) National Anti-Human Trafficking Committee:

• Once the law is enacted, the Centre will notify and establish a National Anti-Human Trafficking Committee, for ensuring overall effective implementation of the provisions of this law.
  • This committee will have representation from various ministries with the home secretary as the chairperson and secretary of the women and child development ministry as co-chair.
  • State and district level anti-human trafficking committees will also be constituted.

Why this bill is significant?

• The transgender community, and any other person, has been included which will automatically bring under its scope activity such as organ harvesting.
• Also, cases such as forced labour, in which people lured with jobs end up in other countries where their passports and documentation are taken away and they are made to work, will also be covered by this new law.

What are the legislations in India that prohibits human trafficking?

• Article 23 (1) in the constitution of India prohibits trafficking in human beings and forced labour.
• Immoral Traffic (Prevention) Act, 1956 (ITPA) penalizes trafficking for commercial sexual exploitation.
• India also prohibits bonded and forced labour through the Bonded Labour System (Abolition) Act 1976, Child Labour (Prohibition and Abolition) Act 1986, and Juvenile Justice Act.
• Sections 366(A) and 372 of the Indian Penal Code, prohibits kidnapping and selling minors into prostitution respectively.
• The Factories Act, 1948 guaranteed the protection of the rights of workers.

International Conventions, Protocols and Campaigns

• Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children in 2000 as a part of the UN Convention Against Transnational Organized Crime.
• This protocol was adopted by the United Nations General Assembly in 2000.
• The United Nations Office on Drugs and Crime (UNODC) is responsible for implementing the protocol.
• It offers practical help to states with drafting laws, creating comprehensive national anti-trafficking strategies, and assisting with resources to implement them.
• Protocol against the Smuggling of Migrants by Land, Sea and Air. It entered into force on 28 January 2004.
• This also supplements the UN Convention Against Transnational Organised Crime. The Protocol is aimed at the protection of rights of migrants and the reduction of the power and influence of organized criminal groups that abuse migrants.
• Universal Declaration of Human Rights (1948) is a non-binding declaration that establishes the right of every human to live with dignity and prohibits slavery.
• Blue Heart Campaign: The Blue Heart Campaign is an international anti-trafficking program started by the United Nations Office on Drugs and Crime (UNODC).
• Sustainable Development Goals: Various SDGs aim to end trafficking by targeting its roots and means viz.
• Goal 5 (Achieve gender equality and empower all women and girls),
• Goal 8 (Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all) and
• Goal 16 (Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels).

Concerns over the new bill

• The bill is not clear about how the NIA will gather information and intelligence from different parts of the country through Anti-Human Trafficking Units (AHTUs) at district level and State level.
• The bill is largely silent on rescue protocols except the “reason to believe” by a police officer not below the rank of a sub-inspector. This makes the role of the AHTUs unclear in the rescue and post-rescue processes.
• There are also concerns about absence of community-based rehabilitation, missing definition of reintegration and also about the funds related to rehabilitation of survivors in the bill.
• In absence of rescue protocol there is always the fear of forced rescue of adult persons who may have been trafficked but do not wish to get rescued.
• The proposed Bill criminalizes sex work and the choice of sex work as profession. The Draft Trafficking Bill has mixed up the issue of trafficking and sex work.

Way Forward

• Foresight and preparedness: in the midst of the current lockdown can save the lives of crores of women, men and children and avoid an impending humanitarian crisis
• Collaboration is key: A lot of work needs to be done in a collaborative manner, between key stakeholders such as the government and civil society organizations, for any substantial change to be seen.
• Assessment and review of legal framework: The central government must assess the existing criminal law on trafficking and its ability to counter the crime and meet the needs of the victim.
• Increase in budgetary allocation for law enforcement and victim rehabilitation: There is a gross deficit in the budgetary allocation to combat human trafficking.
• Curbing the rise of online Child Sexual Abuse material: The upsurge of child sexual abuse material and its easy access can only be controlled by placing greater accountability on Internet Service Providers and digital platforms that host this content.
• Safety net in source areas of trafficking: Schools, communities, religious authorities and the local administration need to recognize and control trafficking and bonded labour in villages.
• Intensive campaignings: must educate communities about the threat and modus operandi of trafficking agents, especially in the source areas such as Jharkhand, Bihar, West Bengal, and Assam.
• Monitoring: The railway and other transport facilities have to be intensely monitored.
• Public Awareness and Sensitization: Awareness around existing government social welfare schemes and the means to access them should be generated and the government must immediately initiate registration of unorganized workers.
• Financial protection: Special financial protection should be extended for the next year in order to keep the wolf away from the door.

The Taliban’s possible triumph threatens not just India’s diplomatic stakes in Afghanistan, but also 20 years and $3 billion worth of Indian investment in various projects — dams, roads, trade infrastructure. India has been becoming more central to the negotiations with the Taliban. In this article, we will discuss and analyze all aspects of rising of the Taliban in Afghanistan and its implications for India.

Background of the Taliban

The Taliban (literally meaning “students”) or ‘Taleban’, who refer to themselves as the ‘Islamic Emirate of Afghanistan (IEA)’ is a Sunni Islamic fundamentalist political movement and military organization in Afghanistan currently waging war (an insurgency, or jihad) within that country.

Their aims were to end the political chaos that had been ongoing in Afghanistan since the Soviet withdrawal in 1989 and to impose a strict interpretation of Islam.

How it came into existence?

• After the Soviet Union intervened and occupied Afghanistan in 1979, Islamic Mujahedeen fighters engaged in war with those Soviet forces.
• A while later, the US CIA and the Saudi General Intelligence Directorate (GID) provided funding and equipment through the Pakistani Inter-Service Intelligence Agency (ISI) to the Afghan Mujahedeen.
• About 90,000 Afghans, including several bountied terrorists, were trained by Pakistan’s ISI during the 1980s.
• Hence it can be concluded that the Taliban have arisen from those US-Saudi-Pakistan-supported Mujahedeen: ‘The West helped the Taliban to fight the Soviet takeover of Afghanistan.’

What is its ideology?

• Early Taliban were motivated by the suffering among the Afghan people, which they believed resulted from power struggles between Afghan groups not adhering to the moral code of Islam; in their religious schools they had been taught a belief in strict Islamic law.
• The military ambitions of the afghans led to it’s the infamous civil war from 1992-96 which ultimately demanded a political emirate.

The 9-11

• The United States invasion of Afghanistan occurred after the September 11 attacks in late 2001 and was supported by close US allies.
• Its public aims were to dismantle Al-Qaeda and deny it a safe base of operations in Afghanistan by removing the Taliban from power.
• US demanded that the Taliban hand over Osama bin Laden and expel Al-Qaeda; bin Laden had already been wanted by the FBI since 1998.
• The Taliban declined to extradite him unless given what they deemed convincing evidence of his involvement in the 9/11 attacks.
• They ignored demands to shut down terrorist bases and hand over other terrorist suspects apart from bin Laden.

Taliban prowess is ever-increasing

• Every single day since the ceasefire, the Taliban is strengthening and violence is mounting high.
• Taliban is now more organized as an organization with diplomats on par with modern democratic nations with state apparatus propaganda.
• The Taliban strategy seems to be to capture power in Kabul by violence and intimidation despite warnings from the international community.
• At the core of its diplomacy lies the untenable violent extremism based on radical religious ideology.

Afghan Peace Process: A failure

• The Afghan peace process comprises the proposals and negotiations in a bid to end the ongoing war in Afghanistan.
• This ‘US-Taliban deal signed in February 2020 was seen in India as a “victory for Taliban and Pakistan”.
• Besides the US, major powers such as China, India, Russia, as well as NATO play a part that they see as facilitating the peace process.
• The peace process has not made much headway mainly because violence by the Taliban continues unabated.
• The Taliban now view this as an important milestone and is busy trying to establish their military superiority on the ground.

What are the implications of the deal for India?

• India has been backing the Ghani-led government and was among very few countries to congratulate Ghani on his victory.
• There has not been formal contact with top Taliban leaders, the Indian mission has a fair amount of access to the Pashtun community throughout Afghanistan through community development projects of about $3 billion.
• Due to so, although the Pakistan military and its ally Taliban have become dominant players in Kabul’s power circles, South Block insiders insist that it is not all that grim for New Delhi.
• These high-impact projects, diplomats feel India has gained goodwill among ordinary Afghans, the majority of whom are Pashtuns and some may be aligned with the Taliban as well.

What are India’s key investments in Afghanistan?

India’s contribution has been phenomenal in every area in Afghanistan since India built the Afghan Parliament. India has been a major military and developmental assistance partner for Afghanistan. Let us have a look at various projects India has built across Afghanistan.

(1) Salma Dam:

• It is one of India’s high-visibility projects is located — the 42MW Salma Dam in Herat province.

(2) Zaranj-Delaram Highway:

• The other high-profile project was the 218-km Zaranj-Delaram highway built by the Border Roads Organisation.
• India had transported 75,000 tonnes of wheat through Chabahar to Afghanistan during the pandemic.

(3) Parliament building:

• The Afghan Parliament in Kabul was built by India at $90 million. It was opened in 2015.

(4) Stor Palace:

• It is the restored Stor Palace in Kabul, originally built in the late 19th century, and which was the setting for the 1919 Rawalpindi Agreement by which Afghanistan became an independent country.

(5) Power Infra:

• Other Indian projects in Afghanistan include the rebuilding of power infrastructure such as the 220kV DC transmission line from Pul-e-Khumri, to the north of Kabul.  

(6) Health Infra:

• India has reconstructed a children’s hospital it had helped build in Kabul in 1972 —named Indira Gandhi Institute for Child Health in 1985 — that was in shambles after the war.
• ‘Indian Medical Missions’ have held free consultation camps in several areas. Thousands who lost their limbs after stepping on mines left over from the war have been fitted with the Jaipur Foot.

(7) Transportation:

• India gifted 400 buses and 200 mini-buses for urban transportation, 105 utility vehicles for municipalities, 285 military vehicles for the Afghan National Army, and 10 ambulances for public hospitals in five cities.
• It also gave three Air India aircraft to Ariana, the Afghan national carrier, when it was restarting operations.

 (8) Ongoing Projects:

• India had concluded with Afghanistan an agreement for the construction of the Shatoot Dam in Kabul district, which would provide safe drinking water to 2 million residents.

India’s and the Taliban

• As the world and India have changed there is an aspiration that Afghan can’t be brought back from the brink.
• India wants to play a positive role and sabotage those countries that support other terror groups in Afghan.
• It is visibly clear and Taliban has claimed that the US withdrawal is a victory for them. At the same time, the democratically elected Afghan government is crashing.
• India is pressing on a peace process all around Afghanistan so that all countries shall be peaceful.

Why Taliban’s control over Afghanistan is a matter of concern for India and the world?

(1) Taliban is strengthening its control in Border areas:

• The Taliban is occupying the border areas with other countries instead of central Afghanistan and have taken control of the districts bordering Iran, Turkmenistan, Tajikistan, Pakistan and Uzbekistan.
• And this time, the Taliban’s strategy is clear that it will strengthen itself on the border areas so that when its government comes there, the neighboring countries cannot put pressure on it, and once again it can run its brutal rule in Afghanistan.

(2) Taliban’s presence near Indian Borders:

• The Taliban is only 400 km away from the Line of Control in Jammu and Kashmir. The Taliban have captured the Badakhshan province of Afghanistan, which borders PoK.
• If Taliban establish their government by capturing all the districts of Afghanistan, then they will be able to easily send their terrorists to Jammu and Kashmir and help Pakistan.

(3) China factor:

• Apart from Pakistan, China can also become a challenge for India. That is because while Pakistan has influence over the Taliban, China is currently the biggest investor for Afghanistan.
• At present, there are big Chinese projects going on in Afghanistan and the Taliban knows that if it wants to keep its position strong then it will need Chinese money the most.

(4) Silence of Western countries and UN over the situation in Afghanistan:

• It is also an irony that the think tanks of Western countries and the United Nations, which give lectures to the whole world on human rights, are not very active about the current situation in Afghanistan.
• At that time, the Taliban strictly enforced Sharia law. It had issued a Taliban decree for men to keep beards and women to keep their full bodies covered, violating which was publicly punished.
• Apart from this, there was also a ban on watching music, movies and television at that time and girls above the age of 10 were not allowed to go to school.

(5) Violence and loss of lives:

• India is concerned over the violence and loss of lives in Afghanistan. Violence has increased manifold after peace talks have started.
• New Delhi wants an all-inclusive “Afghan-led, Afghan-owned and Afghan-controlled” peace process—not one that is remote-controlled by Pakistan, seen as the backers of the Taliban.
• It supports zero tolerance against violence.
• Our EAM has iterated that there is need of double peace i.e., within and around Afghan indirectly pointing towards the terror breeding centre, Pakistan.

(6) India’s investments are at stake:

India, which has committed $3 billion in development aid and reconstruction activities, backs the Ashraf Ghani government in the war-torn country.

What are the stakes for India?

• Afghanistan is a part  of  India’s extended  neighbourhood and a link to Central Asia. But for PoK, India would have had a direct border with Afghanistan.
• Despite claims that the Taliban have changed in the past two decades, there is no proof that it has shed any of its obscurantist ideology which leans heavily towards Pakistan’s official foreign policy towards India.
• A Taliban-controlled government in Kabul would mean Pakistan controlling Afghan policy on India.
• And a repeat of the past when Pakistan used Afghanistan territory for anti-India activities.

Way Forward

• India’s role in Afghan’s peace process and the road ahead is difficult as we see more process and less peace. India has urged for a permanent & comprehensive ceasefire in Afghanistan.
• Durable peace requires peace within & around Afghanistan. India also asserted the need for zero tolerance for terrorism.
• Diplomatic, policing, and intelligence cooperation with countries that border Afghanistan can help to contain terrorist groups and inhibit their ability to travel beyond the region.
• International organizations like the UN must come forward to stop Pakistan sponsor of terrorism. The FATF should move beyond grey-listing itself.
• Aid and developmental cooperation through the UN, India, USA must be done simultaneously for the restoration of democracy.

Conclusion

Terrorism safe havens are mostly a myth. A lot of complexities are involved in the Afghan theatre; tangible demonstration of commitment is required from all stakeholders for a political settlement and to have a permanent ceasefire in Afghanistan.

India has a nearly 34-year window of opportunity to leverage its human resources and realize its growth potential before a phase of demographic burden sets in. This period will coincide with another important part of India’s growth story: the pursuit of high-income status. Too many countries have failed to make the leap from the middle-income to high-income group, afflicted by a malady now commonly referred to as ‘the middle-income trap’.

What is the middle-income trap?

• The “middle-income trap” is a theory of economic development in which a country lost its competitive edge in the export of manufactured goods because of rising wages.
• The wages rise to the point that the growth potential of that country is exhausted before it attains the innovative capability needed to boost productivity and compete with developed countries.

• The countries caught in the Middle Income Trap are unable to compete with low-income, low-wage economies in manufactured exports and with advanced economies in high-skill innovations.
• The middle-income trap is associated with a relatively sustained growth slowdown with both direct effects (e.g. income losses) as well as indirect effects (e.g. social conflicts).
• Fuelled by the global slowdown, many countries, particularly in South East Asia, Africa and Latin America currently face the predicament of the Middle-income trap.
• This has impeded their transition from middle income to high income.

What is the basis for the categorization of countries?

World Bank has used the 2018 data of gross national income (GNI) per capita to categorize countries into the following four categories:

Why do Countries fall into the Middle Income Trap?

• Inability to shift growth strategies: If a country cannot make a timely transition from resource-driven growth, with low-cost labor and capital, to productivity-driven growth, it might find itself trapped in the middle-income zone.
• Lower export potential: Traditional exports cannot be as easily expanded as before because wages are higher and cost competitiveness declines. Middle-income countries also face varying levels of access to product and financial markets and diverse social, economic and environmental vulnerabilities.
• Skewed income distribution & stagnation in middle-class population: Wealth inequality and the hierarchical distribution of income in developing countries is a downward drag on domestic demand, which results in stagnation. It slows down the upward mobility of families that are at lower levels, into the middle class that is prepared to pay more for quality and differentiated products.
• Recurring boom-bust cycles & pro-cyclical lending: Many middle-income countries in Latin America have been through cycles of growth based on credit extended during commodity booms, followed by crisis, and then recovery. This stop–go cycle has prevented them from becoming advanced economies despite enjoying many periods of fast growth. This is in sharp contrast with successful countries in East Asia—Japan, Hong Kong, Taiwan, Singapore, and South Korea that have been able to sustain high growth over some 50 years.

India’s Case

• In 1960, India was a low-income country with per capita income around 6% of the US. However India attained status of lower middle income in 2008 with per capita income of about 12% of the US.
• But the growth has occurred with limited transfer of labor resources to high productivity and dynamic sectors, despite relatively modest agricultural growth.
• Thus, the late converger stall risk remains for India too.

Why India might get caught in a middle-income trap?

(1) Backlash against globalization:

• Hyper globalization (benefited the China, South Korea & Japan) led to a backlash in the advanced countries, as seen through increasing protectionism & lowering World Trade-GDP ratios since 2011.
• This means that similar trading opportunities may no longer be available for the middle-income countries.

(2) Thwarted Structural Transformation:

• The manufacturing sector is identified as a critically important sector for ensuring transformation. Successful development requires two kinds of structural transformations:
• a shift of resources from low productivity to high productivity sectors; and
• a larger share of resources devoted to sectors that have the potential for rapid productivity growth.
• However, in late economies like India, ‘premature deindustrialization’ (tendency for manufacturing to peak at lower levels of activity and earlier in the development process) is a major cause of concern.
• Also, there is a negative share of good growth over time along with weakening of the positive correlation between growth and good growth.
• There are various outliers to the convergence process in this regard like India and China. China’s good growth persists and India’s share of the same declined.

(3) Human Capital Regression:

• Human capital frontier for the new structural transformation has shifted further away making the transformation costlier.
• This is because the new advances in technology not only require skilled human capital, but also demands them to learn continually.
• As opposed to these requirements, there is a wider educational attainment gap and skill deficit between lower income countries and advanced economies.
• If this gap persists or widens, the kind of transformation enjoyed by the early convergers might prove more difficult for late convergers.
• This gap is highly stark for India given its absolute Learning Poverty Count between 40-50% and Learning Poverty Gap is about 25% for reading and a little lower for math.

(4) Climate change-induced Agricultural Stress:

• Agricultural productivity is crucial both for feeding people and for ensuring human capital moves from agriculture to modern sectors.
• The agricultural growth rates of richer countries have been consistently greater than for developing countries in each time period.
• With climate change, weather extremities have become a recurrent phenomenon. This is, in particular, a threat to India where agriculture is heavily dependent on precipitation.
• Fall in private consumption, muted rise in fixed investment and sluggish exports have led to a slowdown in the economy and increase India’s vulnerability to the middle-income trap.

Avoiding the Middle Income Trap

• In 1960, India was a low-income country with per capita income around 6% of the US. However, India attained the status of lower middle income in 2008 with per capita income of about 12% of the US.
• But, the growth has occurred with limited transfer of labor resources to high productivity and dynamic sectors, despite relatively modest agricultural growth.
• Thus, the risk of getting trapped in a middle-income zone remains.
• To avoid becoming trapped without a viable high-growth strategy, India needs to:

(1) Transitioning from diversification to specialization in production:

• Specialization allowed the middle-income Asian countries to reap economies of scale and offset the cost of disadvantages associated with higher wages (E.g. Electronics industry in South Korea).
• High levels of investment in new technologies and innovation-conducive policies are two overarching requirements to ensure specialized production.
• Developing good social-safety nets and skill-retraining programs can ease the restructuring process that accompanies specialization.

(2) Shifting to productivity-led growth:

• Total factor-productivity growth requires major changes in education, from primary & secondary schooling to tertiary education so that workers adept new skills as per the demands of the markets.
• Creating such knowledge economy requires long term planning and investment.
• Middle-income countries need better access to technologies, research, and innovation, and also better management practices.
• That requires redesigning development strategies and gradually shifting to higher-value-added sectors with a focus on innovative, sustainable and inclusive growth.

(3) Opportunities for professional talent:

• To attract and retain a critical mass of professional talent that is becoming more internationally mobile, India must develop safe & livable cities that provide attractive lifestyles to professionals.

(4) Addressing barriers to effective competition:

• There is a need to address rigidities that can arise from bankruptcy laws, stringent tax regulations, limited enforcement of IP regulations, imperfect information, discrimination etc.

(5) Decentralized economic management:

• Greater powers should be vested in local governments, address the insufficiency of judges in lower courts, etc. to ensure speedier decision making.

(6) Sustaining macroeconomic stability:

• Flexible fiscal framework that limited deficits and debt, and a flexible exchange rate mechanism backed up by a credible inflation-targeting monetary policy could help sustain long periods of growth.
• Effective restructuring, regulating, and supervising of the financial sector must be ensured so that the present NPA crisis can be effectively handled.

(7) Changing orientation of social programs:

• Social programs should target the middle class as well as poorer sections of society.
• Ramping up domestic demand is also important—an expanding middle class can use its increasing purchasing power to buy high-quality, innovative products and help drive growth.
• Inequality is a barrier to the broadening of the demand base in an economy.
• This could be achieved through initiatives like low-cost housing for first-time homebuyers in cities, programs to ensure that recent graduates get suitable employment opportunities, etc.

Way forward

• Rapidly improving human capital–– healthy individuals, including all women, with the basic education to continually learn and adapt––will be key to sustaining India’s dynamic growth trajectory.
• Rapidly improving agricultural productivity––against the headwinds of climate change and water scarcity––will be another key to achieving good growth and hence sustainable growth.
• And, of course, the hyper globalization backlash in advanced countries, over which India has little control, must recede to create a favorable external climate to sustain rapid growth.
• There is no Late Converger Stall, as yet, but it would be wise to act to head it off.

Content

India is set to begin a formal roll-out of its long-awaited theaterisation plan to best utilise its military’s resources amid growing security threats, with the Air Defense Command and the Maritime Theatre Command set to be launched by May.

Present structure

• The Indian armed forces currently have 17 commands.
• There are 7 commands each of the Army [Northern, Eastern, Southern, Western, Central, South-western and Army Training Command (ARTRAC)].
• Air Force has [Western, Eastern, Southern, South-western, Central, Training and Maintenance].
• The Navy has 3 commands [Western, Eastern and Southern].
• Each command is headed by a 4-star rank military officer.
• Interestingly, none of these 17 commands is co-located at the same station, nor are their areas of operational responsibility contiguous.
• In addition, there are 2 tri-service commands [Strategic Forces Command (SFC)] and Andaman and Nicobar Command (ANC)], which is headed by rotation by officers from the 3 Services.

How do the 17 commands coordinate during the war?

• Coordination of operations is expected to be carried out at the level of Service Headquarters through the Chiefs of Staff Committee (COSC), which is headed by the senior-most Service Chief who is designated as Chairman, COSC.
• He is expected to simultaneously perform both the roles of Chief of his Service as well as the Chairman, COSC.
• The COSC generally functions on the principle of consensus, and this makes decision making on jointness very difficult.
• India has an integrated theatre command only in ANC.
• The other tri-service command, the SFC, looks after the delivery and operational control of the country’s nuclear assets.
• It was created in 2003, but because it has no specific geographic responsibility and a designated role, it is not an integrated theatre command but an integrated functional command.
• There has been a demand for other integrated functional commands, such as the cyber, aerospace and Special Operations commands, but the government is yet to approve any.

What is a theatre command?

• An integrated theatre command envisages a unified command of the three Services, under a single commander, for geographical theatres that are of security concern.
• The commander of such a force will be able to bring to bear all resources at his disposal (from the IAF, the Army and the Navy) with seamless efficacy.
• It will not be answerable to individual Services and will be free to train, equip and exercise his command to make it a cohesive fighting force capable of achieving designated goals.
• The logistic resources required to support his operations will also be placed at the disposal of the theatre commander so that he does not have to look for anything when operations are ongoing.
• This is in contrast to the model of service-specific commands which India currently has, wherein the Army, Air Force and Navy all have their own commands all over the country.
• In case of war, each Service Chief is expected to control the operations of his Service through individual commands, while they operate jointly.

The committee, which was headed by Lt General DB Shekatkar (retd) has recommended the creation of 3 integrated theatre commands i.e.;  

1. Northern for the China border,
2. Western for the Pakistan border and
3. Southern for the maritime role.

Why is the need to integrate Armed Forces?

• The remarkable technological advancements in science and technology in the 20th century have revolutionized the art of warfighting.
• The nature of warfare itself has witnessed a paradigm shift in the planning and execution of operations.
• The modern concept of warfighting relies on the tenets of real-time battlefield transparency 24 x 7, swift all-weather mobility under all battlefield conditions and immense lethality of firepower independent of range limitations.
• The modern-day wars will be fought with simultaneity in a non-linear pattern across the spectrum of land, sea and air.
• The execution of operations would entail well-coordinated offensive-defensive manoeuvres, net-centric operations, information warfare, cyber-attacks, possibly under nuclear overhang etc.
• India has two hostile nuclear neighbours. Additionally, India’s security threats include Pak sponsored terror in J&K as part of an instrument of state power, Left Wing Extremism (LWE) in almost half the districts in the country and international power play unfolding in the Indian Ocean region (IOR) as well as Asia-Pacific Regions.
• India today, as an economic & military power, must play a much larger role in the evolving geo-strategic environment in the region, particularly in the maritime domain.
• In such a complex operational environment, militaries have little option but to adopt methods of integrated warfighting.
• To effectively counter the list of security challenges, India will have to integrate the Armed Forces.

How is Joint Command different from Integrated Command?

• Jointness means that while the 3 Services progress and develop in their respective spheres with their independent identity, they function together and so coordinate their operations in war.
• Integrated commands, on the other hand, seek to merge individual service identities to achieve a composite and cohesive whole.
• It implies enmeshing the three Services together at different levels and placing them under one commander for the execution of operational plans.

Pros

• Better acclimatisation of troops to the given battle space, which will assist them to comprehend the operational requirements correctly in the assigned area of operation.
• Training needs and administrative requirements of the troops can be better understood, which would allow specialisation and suitable honing of battle drills at all levels.
• Equipment can be procured, maintained and pre-positioned for quick mobilisation and apt application during the envisaged, short-duration, high-intensity war.
• The allocation of military hardware, in terms of weapon systems, command, control and communication equipment and combat support elements will be theatre specific and result in optimisation of the resources.
• Unified command of the three Services under one designated commander will allow for prompt and precise decision making and will remove unnecessary tri-services one-man-up ship.
• Hence, it goes without saying, that the theatre commands will afford better coordination, intelligence sharing, apt advice and seamless conduct of operations in a given theatre of operation.

Challenges

• The very first challenge is the mindset of the military hierarchy. There is deep-rooted insecurity among the Services, arising out of loss of absolute authority over its Service, loss of identity of each Service in an integrated set up and erosion of empire within each Service. This may lead to unwillingness among the Armed Forces to integrate.
• Secondly, the lack of political will despite being convinced about the requirement of integration of the Armed Forces. There is a sense of reluctance arising out of insecurity to bestow the complete authority of Armed Forces with one individual.
• Thirdly, the structure of command, i.e. who will report to who within the tri-services and joint theatre command configurations, and who will have operational command over personnel and machinery, service chiefs or theatre commanders.
• Fourthly, shortage of resources within the Indian Air Force (IAF) which has only 31 operational squadrons against a modest sanctioned strength of 42, would make it difficult for the IAF to permanently station assets in a particular command with territorial boundaries.
• The fifth challenge is the inter-services competition wherein each service zealously oversees its own assets and strives for a greater share of the defense budget and influence might prove to be an obstacle in creating synergy among the services.
• Last but not the least, India’s limited experience with integrated command structures may require a fair bit of mid-course corrections which would require problems to be timely identified and remedied, and slow down the integration process regardless.

Is everybody happy with the proposed idea?

• While the Army and the Navy are on board with the proposal, the Air Force has certain reservations.
  • One, the Air Force does not want the Air Force chief to lose operational control of Air assets.
  • Two, the Air Force is concerned that all of its assets might be divided within these integrated theatres.
• All such concerns need to be addressed before such a significant transformation of the defence set-up takes place.

Conclusion

• Even though both merits and demerits highlight logical arguments, the truth is this was a much-needed reform in Indian Armed Forces.
• Thus this integration would lead to theaterisation which would further lead to the modernization of forces. Until now, modernization was implemented from the equipment and weapons system per se but this restructuring into unified commands is the other side of modernization of forces.
• Even though there is a line of difference between Jointmanship among armed forces and Integration of Armed Forces, cooperation is a prerequisite of armed forces.

Context

    The ministry of housing and urban affairs recently came out with the draft Model Tenancy Act 2019. The draft Act is aimed at increasing accountability in the rental home ecosystem. It addresses factors like the need to have a formal rent agreement, how much security deposit should be paid, rate of rent increase and grounds for eviction. While the draft tries to strike a balance between the rights of the tenants and homeowners, there is some debate about whether it promotes the interests of one over the other

Why this act?

• Restrictive Laws: As per Census 2011, more than 1 crore houses were lying vacant in urban areas. The existing rent control laws are restricting the growth of rental housing and discourage owners from renting out their vacant houses due to fear of repossession. 
• Large scale informalisation in sector: One of the potential measures to unlock the vacant house is to bringing transparency and accountability in the existing system of renting of premises and to balance the interests of both the property owner and tenant in a judicious manner.
• Lack of Uniformity: Since it is a state subject, states have enacted their laws and it differs from one state to another.
• Housing Poverty: 2013 report by a Task Force for Rental Housing held that affordable rental housing “addresses the issues of the underprivileged and inclusive growth, in an even more direct manner than affordable ownership housing”. Model Tenancy Act helps bring investment in the sector as the sector provides better safeguards.

Features of act

• Mandatory Rent Agreement: The act makes it mandatory to create a written lawful rent agreement between the owner and tenant. 
• Rent Authority: The Act requires establishing rent authorities in every district to regulate renting of premises.
  •  Both the landlord and tenant will have to submit a copy of the rent agreement to the district Rent Authority.
  •  The proposed authority will also provide a speedy adjudication mechanism for the resolution of disputes.
• Tribunal and Courts: It calls for creating dedicated tribunals and courts for dealing with tenancy related disputes.
•  Security Deposit: The act puts a cap on the amount of security deposit. It will be a maximum of two months of rent in case of residential premises and six months in case of non-residential premises.
• Subletting: The act bars tenants from subletting the property in part or whole.
• Vacating Rental Premises: It says that if a landlord has fulfilled all the conditions stated in the rent agreement, then the tenant has to vacate the premises. 
  • If the tenant fails to vacate the premises, then the landlord is entitled to double the monthly rent for the first two months and four times after that.
• Increase in Rent: The rent can be revised according to the terms and conditions mentioned in the agreement. If there is no such agreement, the landowner will have to give a 3 months notice to the tenant before revising the rent.
• Coverage: The Act will apply to premises rented for residential, commercial, or educational use but not for industrial use. It also won’t cover hotels, lodging, etc. This model law will be applied prospectively and will not affect existing tenancies.

Need for Model tenancy act

(1) Unlocking homes

• It will unlock vacant houses for rental purposes
• It will enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.

(2) Helping migrants

• Rental housing is a preferred option for students and migrants.
• It will balance the rights of both landlords and tenants.

(3) Effective negotiations

• There is no monetary ceiling under MTA, which enables parties to negotiate and execute the agreement on mutually agreed terms.
• It will give confidence to landlords to let out their vacant premises, the housing ministry said.
• The Act also tries to address how a renter can legitimately increase the rent.

(4) Control over encroachments

• It has proposed limiting the advance security deposits to two months’ rent and has also suggested heavy penalties for tenants who decide to overstay.
• Those who do may have to shell out double the rent for two months and even four months.

(5) Rights of tenants

• The landowner cannot cut power and water supplies in case of a dispute and would have to provide a 24-hour notice to tenants to carry out repair work.
• Should the landlords wish to increase the rent, they will need to provide a three-months notice to the tenants.
• These measures would go a long way in protecting the rights of a tenant as it regulates the rent hikes that tenants have had to face.

Scope of coverage

MTA applies to any premises, which is, let separately for residence or commercial or educational use except industrial use.

However, MTA does not provide what constitutes residence/commercial/educational/industrial use. Besides, MTA does not apply to the following premises–

• Hotel, lodging house, dharamshala or inn etc.
• Premises owned or promoted by:
• The Central/ State/ UT Government.
• Local Authority.
• Government undertaking or enterprise.
• Statutory body.
• Cantonment board.
• Premises owned by a company, university or organization given on rent to its employees as part of service contract.
• Premises owned by owned by religious or charitable institutions as may be specified by notification.
• Premises owned by owned by any trust registered under the Public Trust Act of the State.
• Premises owned by owned by Wakfs registered under the Wakf Act, 1995.
• Any other building specifically exempted in public interest through notification.

However, if the owner of any of the premises mentioned in (b) to (g) wishes a tenancy agreement to be regulated under MTA, then he can inform the same to the Rent Authority.

Significance

• The model act will be applied prospectively and will not affect existing tenancies.
• When enforced in all states, it will lead to a better regulated rental house market for middle and high-income segments.
• The Pradhan Mantri Awas Yojana( Housing for all by 2022 mission ) has a component of having 20 per cent of 2 crore houses shall be created exclusively for rent.
• This informality is the key reason why this housing segment, despite its huge potential, remains largely untapped. When landlords and tenants have a common platform to refer to understand the market dynamics, the rental housing segment would slowly march towards transparency and a formal setup.
• A segment-specific court would mean the grievance redressal mechanism would work efficiently. This would generate in landlords the confidence to let out their units, which they otherwise shy away from, fearing squatting and other such unfavourable consequences.
• A cap on security deposits would make a correction in these markets, where housing is expensive and renting is not cheap either.
• Squatting by tenants is the key reason why landlords are wary of letting their unoccupied property. Since the policy sets monetary penalties for squatting, landlords will have greater confidence.
• This would work as an alternative to eliminate the problem of the housing shortage in view of the ever-increasing population in India.

Drawbacks of the MTA

• Non-Binding nature: Land and Urban Development is a state subject. The states may or may not adopt the proposed law, as done by them in the case of Real Estate (Regulation and Development) Act.
• Prospective effect: The new model act would have a prospective effect. This means it would be applicable to future disputes only, hence past disputes would continue to linger on for years.
• Inadequate Security Cover: Security Cap for two months may not be enough to cover damages, especially during the last month when tenants adjust their rent in the security deposit.
• Lacunae in the formation of the Act: The act fails to properly define the term ‘habitation’. Further, it fails to mention the penalty if the owner delays in paying back the security deposit. Also, it is altogether silent on sudden leave and license arrangements.

What is the impact on Real Estate?

• Model Tenancy Act will fuel the rental housing supply by attracting more investors
• More rental housing stock will help students, working professionals and migrant populations to find urban accommodation.
• Aimed at bridging the trust deficit between tenants and landlords by clearly delineating their obligations that will open up more players in the field confidence to landlords.
• Attract corporate players to provide serviced apartments for their employees.

Way forward

• Protection of rights: The Model Tenancy Act, 2019 is a progressive step in matters related to rent and rental housing in the Indian real estate sector. By combining a range of clauses covering aspects from the security deposit to rent tribunals, the draft policy will aid in protecting the rights of the tenants as well as the property owners.
• Special authority setup: It also proposes the establishment of adjudicating authorities in an effort to lessen the burden on lower courts in the matters relating to tenancy. In doing so, it offers a comprehensive and well-structured approach to solving tenancy-related issues in India.
• Needs improvement: Although the provisions offer a win-win situation for both tenants and landowners, the scope can still be broadened. For instance, the draft policy should draw a clear distinction between residential tenancies and commercial rental accommodations, which attract higher institutional investments. 
• Must be made binding: The central and state governments can work in tandem to provide affordable rental housings. This will not only attract a lot of tenants but will also increase the supply of formal rental accommodations. 
• Taking all the factors into consideration, including the setting up of tribunals and courts, the act does bring transparency, fixes accountability, and promotes fairness in the rental housing segment. 

Content

When it comes to mediating international crises, India’s track record is a mixed bag. In recent decades, India has been unwilling or unable to be effective in resolving some of the conflicts in its immediate neighborhood. The recent 11-day Israel-Hamas conflict has encouraged some journalists, foreign policy elites, academics, and retired diplomats to flag India’s candidacy as a possible mediator.

India Israel relations

Background

• Both nations became independent almost at the same time, in the late 1940s, following a long struggle against British Colonialism.
• They both follow the democratic form of governance in a neighborhood where democracy is either frail or non-existent.
• India announced its recognition of Israel on September 17th, 1950, following which the Jewish Agency established an immigration office in Bombay. This later became a Trade Office and subsequently a Consulate.
• The diplomatic relationship between India and Israel was previously based on popular consensus and only much later became official.
• However, while Israel had tried to forge close ties with India, the latter was reluctant to respond in kind.
• This was because during that time India was a young state that needed to take into account Arab states’ numerical impact at the United Nations.
• Furthermore, it could not afford to antagonize its Muslim population by establishing ties with a Jewish state. Sympathizing the Palestinian cause is a by-product of these motives.
• In 1961, India is one of the founders of the Non-Aligned Movement along with President Nasser of Egypt. This significantly complicated India’s ties with the Jewish state.
• Another hurdle that prevented the bilateral ties was India’s close ties with the Soviet Union while Israel inclined towards the US.

India’s shift towards Israel

Though India voted against a UN resolution for the creation of Israel, once Israel is created, India officially recognized Israel (in 1950). But full diplomatic ties were established only in 1992.

The reasons for this tectonic shift in the foreign policy stand were:

• During these years, the popular perception of Israel was negative as it was a state formed on religion and analogous to Pakistan. However, the formation of an Organisation of Islamic Cooperation (OIC) in 1969 which neglected the sentiments of Indian Muslims by blocking of India’s membership to this group by Pakistan is one of the primary triggers for the change instance. (Even today India is not a member of OIC).
• India has received no backing from the Arab countries on Kashmir Issue. There have been no serious attempts by the Arab world to put pressure on Pakistan to reign in the cross-border insurgency in Kashmir.
• Israel supported India during the Indo-Pak wars even before full diplomatic ties were established.
• With the collapse of the Soviet Union and the rise of the US as a superpower, India started aligning itself with the US, and this further added to our improved relations with Israel.
• After decades of Non-Alignment and Pro-Arab policy, in 1992 India changed its stance and established full diplomatic ties with Israel.

Collaborations between India and Israel

Military collaboration

• India and Israel have increased collaboration in military ventures since the establishment of diplomatic relations. The rise of Islamic extremist terrorism has helped both the countries to join hands against the global threat of terrorism.
• India is the largest buyer of Israeli military equipment and Israel is the second-largest defense supplier to India after Russia.
• In February 2014, India and Israel signed three important agreements on Mutual Legal Assistance in Criminal Matters, Cooperation in Homeland Security, and Protection of Classified Material.
• Four working groups in areas of border management, internal security and public safety, police modernisation and capacity building for combating crime, crime prevention and cybercrime were established.
• IAI is developing the Barak 8 missile for the Indian Navy and Indian Air Force which is capable of protecting sea vessels and ground facilities from aircraft and cruise missiles.
• In 2016, the Indian government approved the purchase of two more Phalcon AWACS. India and Israel are also planning to hold their joint military exercise soon.

Political collaboration

• Since the up-gradation of relations in 1992, defense and agriculture have become the two main pillars of the bilateral engagement.
• The political ties have become especially cordial under the Modi Government.
• In 2017, Prime Minister Modi became the first-ever Indian Prime Minister to visit Israel.
• During this visit, the diplomatic relationship was upgraded to a strategic level and seven agreements/MoUs were signed in the areas of R&D, innovation, water, agriculture and space.
• In 2018, the Israeli Prime Minister visited India, during which Government to Government (G2G) agreement on cybersecurity, oil and gas cooperation, film cooperation and air transport were signed, along with five other semi-government agreements.
• An increase in the high-level exchanges in recent times has expanded cooperation in areas like trade, agriculture, science and technology and security.

Agriculture collaboration

• India has chosen Israel as a strategic partner (G2G) in the field of agriculture.
• This partnership evolved into the Indo-Israel Agricultural Project (IIAP), under the Indo Israel Action Plan, based on a MOU signed by Indian and Israeli ministers of Agriculture in 2006.
• The partnership aim to introduce crop diversity, increasing productivity & increasing water use efficiency. 
•  IIAP is implemented via establishment of Centers of Excellence (CoE), in which Israeli Technologies and know-how are disseminated tailored to local Indian conditions. 
• India has a lot to learn from dryland agriculture of Israel. The Economic Survey 2016-17 batted for Indo-Israel cooperation in drip-irrigation technologies.
• Israel has mastered water conservation techniques and India can learn from it.  It helps India to face its water stressed condition.
• Another area of potential cooperation is cleaning polluted rivers.

Space collaboration

• India and Israel have signed a cooperative agreement promoting space collaboration between both nations. 
• The two countries have also signed an agreement outlining the deployment of TAUVEX, an Israeli space telescope array, on India’s GSAT-4, a planned navigation and communication satellite.
• In 2008, TecSAR was successfully inserted into orbit by India’s PSLV. One of TecSAR’s primary functions is to monitor Iran’s military activities.

Economic collaboration

• The bilateral merchandise trade stood at $5.02 billion (excluding defense) in 2016-17.
• While exports from India were $3.06 billion, the import to India from Israel was $1.96 billion.
• The diamond trade constitutes more than 53% of the bilateral trade.
• India is Israel’s third-largest trading partner in Asia after China and Hong Kong.
• In recent years, bilateral trade has diversified to include several sectors like pharmaceuticals, agriculture, IT and telecom and homeland security.
• Major exports from India to Israel include precious stones and metals, chemical products, textiles and textile articles etc.
• Major imports from Israel include chemicals and mineral products, base metals and machinery and transport equipment. Potash is a major item of Israel’s exports to India.

Challenges in INDO-Israel relations

Sticky Points in the Relations:

1. Bilateral Trade and investment still below potential: From just $200 million in 1992, bilateral trade (excluding defense) peaked at about $5 billion in 2012 but since then it has dropped to about $4 billion. Also, bilateral trade has not diversified much—diamonds and chemicals still make up for the large chunk of the pie.
2. Private Sector still finding feet: Indian companies like Sun Pharma and ATG, a specialty tyre-maker, have big interests in Israel. But perhaps unsurprisingly, the Chinese are streets ahead of us in bilateral trade and their companies are investing heavily in Israel’s cutting-edge start-ups.
3. Connectivity between two countries still poor with just one direct flight from Mumbai 3 times a week and no direct flights from Delhi.
4. Historical retrenchment: India’s consistent support for a sovereign, independent, viable and united Palestinian state with East Jerusalem as its capital, living within secure and recognized borders, side by side and at peace with Israel and Pro-Arab stance has been a sticky point.
5. Limited People to People ties and cultural differences: Israelis and Indian approach business differently and often find it difficult to get on the same page. Though formal ties were established in 1992, the ideological divide resurfaces time and again.

India- Palestine Relations

Background

• The relationship with Palestine was almost an article of faith in Indian foreign policy for over four decades. 
• At the 53rd UN session, India co-sponsored the draft resolution on the right of the Palestinians to self-determination. 
• In the 1967 and 1973 wars, India lashed out at Israel as the aggressor. 
• In the 1970s, India rallied behind the PLO (Palestine Liberation Organisation) and its leader Yasser Arafat (received as Head of State) as the sole and legitimate representative of the Palestinian people.
• In 1988, when the PLO declared an independent state of Palestine with its capital in East Jerusalem, India granted recognition immediately. 
• India opened a Representative Office in Gaza on 25 June 1996 which was later shifted to Ramallah in 2003.
• India has thus consistently supported the legitimate right of the Palestinian people to a State and the consequent imperative need for a just, comprehensive and lasting peace in the region.

Reasons for India siding with Palestine 

• India’s own Partition along religious lines (Historical basis)
• Solidarity with the Palestinian people who would be dispossessed (HR Perspective)
• To ward off Pakistan’s plan to isolate India over Kashmir (Geopolitical reason) 
• Later, India’s energy dependence on the Arab countries also became a factor (Economic & Pragmatism)
• To appeal to the sentiments of India’s own Muslim citizens (Domestic Politics)

Changes after 1991- Pragmatism

• The opening of an Indian embassy in Tel Aviv in January 1992 marked an end to four decades of giving Israel the cold shoulder.
• India’s decision to normalize ties with Israel in 1992 came against the backdrop of the break-up of the Soviet Union, the need for economic pragmatism (i.e. access to Israeli technology), common threats of terrorism and massive shifts in the geopolitics of West Asia on account of the first Gulf War in 1990. 
• The India-Israel relationship continued to grow, mostly through defense deals, and in sectors such as science and technology and agriculture.
• There were few high-profile visits, and they all took place when the BJP-led NDA-1 under Prime Minister Atal Bihari Vajpayee was in office.

Balancing act with Palestine

• India voted in favour of a resolution in the General Assembly opposing the Trump administration’s recognition of Jerusalem as the Israeli capital.
• At the UNHRC’s 46th session in Geneva earlier this year, India voted against Israel in three resolutions – 
  • one on the right of self-determination of the Palestinian people 
  • A second on Israeli settlement policy, and
  • A third on the human rights situation in the Golan Heights.
• In the current context of violence, India in its official statement appears to implicitly hold Israel responsible for triggering the current cycle of violence by locating its beginnings in East Jerusalem rather than from Gaza. 
• The statement was also emphatic that “the historic status quo at the holy places of Jerusalem including the Haraml al Sharif/Temple Mount must be respected. (The site, administered by Jordan, is revered in both Islam and Judaism. Jewish worshippers are not allowed inside, but have often tried to enter forcibly)

Recent Israel-Palestine dispute and India’s stand on it

Recently Israeli armed forces have penetrated Al-Aqsa Mosque in the Haram esh-Sharif in Jerusalem. Hamas retaliated by firing rockets on Israel. In retaliation, Israeli airstrikes targeted the Gaza Strip. This invoked the Indian response to the Israel-Palestine dispute once again. The India’s stand can be observed by following points,

• Not resolutely standing with Israel: Recently, the Israeli Prime Minister mentioned the 25 countries that support Israeli actions. The countries include United States, Albania, etc. But India was not among the list of 25 countries.
• Concern towards Palestine: India expressed deep concern over the violence in Jerusalem. Especially on Haram esh-Sharif/Temple Mount that too in the holy month of Ramzan.
• Advocating Status-quo: India urged both sides to “refrain from attempts to unilaterally change the existing status quo”. Further, India also demanded, “the historic status quo at the holy places of Jerusalem, including Haram esh-Sharif/Temple Mount must be respected“.
• Respecting the sentiments of both Israel and Palestine: India in its official statement mentioned both the “Haram esh-Sharif and Temple Mount”. This is a symbol of mutual respect by India on the religious sentiments of Israel and Palestine.
• According to the Palestinian narrative, they only maintain Haram esh-Sherif. I.e. exclusive Islamic control and ownership.
• On the other hand, the Israelis mention only Temple Mount. I.e. exclusive control and ownership of Jews.
• All these signifies India’s commitment towards its de-hyphenation policy on Israel and Palestine

India’s de-hyphenation policy on Israel and Palestine

As a part of the Link West Policy, India has de-hyphenated its relationship with Israel and Palestine. It means India’s relationship with Israel will depend upon its own merits. Also, it will be independent and separate from India’s relationship with the Palestinians. In simple terms, it means, India will have its bilateral strategic ties with Israel irrespective of its political stance on the Israel-Palestine issue. Instead, India will treat both countries as mutually independent and exclusive. The developments under this phase are:-

• No Indian PM has visited Israel supporting the Palestinian cause. But the de-hyphenation policy enabled the first Indian PM visit to Israel in 2017. During the visit, both countries signed 7 MoUs. This includes sectors such as Agriculture, Water Conservation, India-Israel Industrial Research and Development and Technological Innovation Fund (I4F), etc.
• To commemorate 25 years of Indian-Israeli relations, the Israeli Prime Minister visited India in 2018. During that, he honoured the Indian soldiers who perished in the Battle of Haifa during World War I.
• So far India has maintained the image of a historical moral supporter for Palestinian self-determination.  At the same time, the policy of de-hyphenation allowed India to engage in the military, economic, and other strategic relations with Israel.
• India voted for a resolution criticising the U.S. for recognizing Jerusalem as the Israeli capital. This reassured India’s principle on long-standing policy on Palestine.

Way Forward

• Continuation of approach: Given the constraints faced by opponents to government policy, it is unlikely that India is going to change course regarding its approach towards Israel and the Palestinians. The political establishment is broadly supportive of the direction which began under Congress in the 1980s-90s and which has sharpened under Modi and the BJP since 2014.
• Balancing Act: As the UN vote over Jerusalem demonstrated, Indian policymakers believe that they can accommodate both the demands of the international community to maintain previous commitments regarding Jerusalem (and the Palestinians) while also developing more extensive ties with Israel. They therefore pursue what they believe is a balanced approach without regard for the underlying dynamics and structural disparities between the conflict parties.
• In sum, Indian policy appears to be guided primarily by strategic considerations. In a context in which India has developed a strategic partnership with the United States — Israel’s foremost ally — it seems highly unlikely that New Delhi will embrace the role of a peacemaker, no matter how many times it votes to uphold prior international commitments regarding the status of Jerusalem or the Palestinian question. 

Context

The 1985 batch officer from Maharashtra cadre, and currently posted as director-general of Central Industrial Security Force (CISF), Subodh Kumar Jaiswal has been appointed as the new director of the Central Bureau of Investigation (CBI). Congress leader Adhir Ranjan Chowdhury accused the government of adopting a “casual and superficial” approach in selecting the new CBI director and questioned the shortlisting process, saying it is in conflict with the mandate of the selection committee.

Background

• The Bureau of Investigation traces its origins to the Special Police Establishment, a Central Government Police force, which was set up in 1941 by the Government of India to investigate bribery and corruption in transactions with the War and Supply Department of India.
•  It had its headquarters in Lahore. The first legal adviser of the War Department was Rai Sahib Karam Chand Jain.
• After the end of the war, there was a continued need for a central governmental agency to investigate bribery and corruption by central-government employees.
• The DSPE acquired its popular current name, Central Bureau of Investigation (CBI), through a Home Ministry resolution dated 1.4.1963. The founding director of the CBI was D. P. Kohli, who held office from 1 April 1963 to 31 May 1968.
• The CBI established a reputation as India’s foremost investigative agency with the resources for complicated cases, and it was requested to assist the investigation of crimes such as murder, kidnapping, and terrorism.
•  In 1987, the CBI was divided into the following divisions: the Anti-Corruption Division, the Special Crimes Division, the Economic Offences Division, the Policy and International Police Cooperation Division, the Administration Division, the Directorate of Prosecution Division, and the Central Forensic Science Laboratory Division.

Mandate of CBI

• The CBI is the main investigating agency of the GOI. It is not a statutory body; it derives its powers from the Delhi Special Police Establishment Act, 1946. 
• Its important role is to prevent corruption and maintain integrity in administration. It works under the supervision of the CVC (Central Vigilance Commission) in matters pertaining to the Prevention of Corruption Act, 1988. 
• Investigate cases connected to infringement of economic and fiscal laws, i.e., breach of laws concerning customs and central excise, export and import control, income tax, foreign exchange regulations, etc. But cases of this nature are taken up by the CBI either at the request of the department concerned or in consultation with the concerned department.
• Investigate crimes of a serious nature that have national and international ramifications, and committed by professional criminals or organized gangs.
• To coordinate the activities of the various state police forces and anti-corruption agencies.
• At the behest of a state govt., the CBI can also take up any case of public importance and investigate it.
• Maintaining crime statistics and disseminating criminal information.
• The CBI is India’s representative for correspondence with the INTERPOL. 

Notable cases cracked by CBI

• Bhanwri Devi missing case: Jat leader and former Rajasthan minister Mahipal Maderna, Congress MLA Malkhan Singh and Bhanwari’s husband Amarchand were all part of the conspiracy to abduct and eliminate Bhanwari. Bhanwari had threatened to expose Malkhan’s relationship with her at the Bishnoi mahapanchayat.  Maderna, Malkhan, the three kidnappers and Sahiram along with Amarchand were arrested by the CBI.
• Noida double murder case: In May 2008, the nation was shocked with the sensational double murders in Noida. The victims were Arushi Talwar and Hemraj Banjade. Initially, there was no clarity about the motive or the perpetrator of this ghastly crime. After a lengthy investigation which spanned close to 6 years, the CBI based on circumstantial evidence established that the parents of Aarushi Talwar, Rajesh Talwar and Nupur Talwar were the perpetrators of this crime. 

• The Satyam Case:  B Ramalinga Raju, the disgraced chairman of Satyam Computers Services Ltd, along with 13 individuals and entities including Chintalapati Srinivasa Raju of iLabs, made Rs 2,000 crore in illegal wealth in the Satyam scam. The CBI constituted a Multi-Disciplinary Investigation Team (MDIT) to investigate the case. The team worked hard, burnt midnight oil and achieved success in a record time of 45 days when it filed its first chargesheet against the accused for offences of criminal conspiracy, cheating, forgery and falsification of accounts.

Issues with CBI

• The Supreme Court of India has criticised the CBI by calling it a “caged parrot speaking in its master’s voice”, due to excessive political interference in its functioning.
• It has often been used by the government of the day to cover up wrongdoing, keep coalition allies in line and political opponents at bay.
• It has been accused of enormous delays in concluding investigations – For example, the inertia in its probe against the high dignitaries in Jain hawala diaries case [of the 1990s].
• Loss of Credibility: Improving the image of the agency is one of the biggest challenges till now as the agency has been criticised for its mismanagement of several cases involving prominent politicians and mishandling of several sensitive cases like Bofors scandal; Hawala scandal, Sant Singh Chatwal case, Bhopal gas tragedy, 2008 Noida double murder case(Aarushi Talwar).
• Lack of Accountability: CBI is exempted from the provisions of the Right to Information Act, thus, lacking public accountability.
• Acute shortage of personnel: A major cause of the shortfall is the government’s sheer mismanagement of CBI’s workforce, through a system of inefficient, and inexplicably biased, recruitment policies – used to bring in favoured officers, possibly to the detriment of the organisation.
• Limited Powers: The powers and jurisdiction of members of the CBI for investigation are subject to the consent of the State Govt., thus limiting the extent of investigation by CBI.
• Restricted Access: Prior approval of Central Government to conduct inquiry or investigation on the employees of the Central Government, of the level of Joint Secretary and above is a big obstacle in combating corruption at higher levels of bureaucracy.

Why was it called caged carrot by the Supreme Court?

• Politicisation of the Central Bureau of Investigation (CBI) has been a work in progress for years.
• Corruption and Politically biased: This was highlighted in Supreme Court criticism for being a caged parrot speaking in its master’s voice.
• CBI has been accused of becoming ‘handmaiden’ to the party in power; as a result high profile cases are not treated seriously.
• Since CBI is run by central police officials on deputation hence chances of getting influenced by government was visible in the hope of better future postings.

Way Forward

• Need for autonomy:   As long as the government of the day has the power to transfer and post officials of its choice in the CBI, the investigating agency will not enjoy autonomy and will be unable to investigate cases freely. A new CBI Act should be promulgated that ensures the autonomy of CBI while at the same time improving the quality of supervision.
• Selection of director/ Officers: To ensure that the CBI is a robust, independent and credible investigation agency, there is an urgent need to work out a much more transparent mechanism for selection of the Director and induction of officers on deputation.
• The Lokpal Act already calls for a three-member committee made up of the prime minister, the leader of the opposition and the chief justice of the Supreme Court to select the director. However, not enough has been done to administratively protect CBI from political interference. For this to happen, the new Act must specify criminal culpability for government interference. 
• CBI should be bifurcated into an Anti-Corruption Body and a National Crime Bureau.
• A comprehensive new central law should govern the working of the institution. The law should specifically provide for appointment of a special public prosecutor who will have full independence to deal with the politically and nationally sensitive cases and take a stand safeguarding public interest.
• Develop own cadre: One of the demands that have been before Supreme Court, and in line with international best practices, is for the CBI to develop its own dedicated cadre of officers who are not bothered about deputation and abrupt transfers. The CBI did recruit some officers in the past to its cadre, but that effort has gone nowhere, and all senior posts in the CBI are now held by Indian Police Service (IPS) officers.
• Annual social audit should be carried out by ten reputed, knowledgeable persons with background of law, justice, public affairs and administration and the audit report should be placed before the parliament.

Two orders given by India’s Supreme Court in two separate cases early this month have, once again, brought into sharp focus the issue of the colonial-era law relating to sedition in the context of media freedom. Both cases involve journalists and their reporting.

One of the cases relates to the booking of two journalists of Telugu language news channels under Section 124A of the Indian Penal Code (IPC) for telecasting a speech by a dissident leader of Andhra Pradesh’s ruling YSR Congress Party. The other case pertains to an FIR filed against noted journalist Vinod Dua, who was accused of having made remarks against Prime Minister Narendra Modi and his government’s handling of the migrant labor crisis during the Covid-19 lockdown in 2020. In the hearings in both cases, the top court has made important observations that have a strong bearing on media freedom and the future of the sedition law.

Background

• Section 124A of the Indian Penal Code lays down the punishment for sedition. 
• The Indian Penal Code was enacted in 1860, under the British Raj. The then British government in India feared that Muslim preachers on the Indian subcontinent would wage a war against the government. Particularly after the successful suppression of the Wahabi/Waliullah Movement by the British, the need was felt for such law. 
• Throughout the Raj, this section was used to suppress activists in favor of national independence, including Lokmanya Tilak and Mahatma Gandhi, both of whom were found guilty and imprisoned.
•  Sedition was made a cognizable offense for the first time in history in India during the tenure of Prime Minister Indira Gandhi in 1973, that is, arrest without a warrant was now permissible.
• In 1962 the Supreme Court of India interpreted the section to apply only if there is, say, “incitement to violence” or “overthrowing a democratically elected government through violent means”.

What is Sedition?

• The Indian Penal Code (IPC) defines Sedition (Section 124A) as an offence committed when “any person by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the government established by law in India”.
• Disaffection includes disloyalty and all feelings of enmity. 
• However, comments without exciting or attempting to excite hatred, contempt or disaffection, will not constitute an offence.
• Sedition is a non-bailable offence.
• Punishment under Section 124A ranges from imprisonment up to three years to a life term with/without a fine.

The debate around

Arguments in favor

• Section 124A is needed in combating anti-national, secessionist and terrorist elements.
• It protects the elected government from attempts to be overthrown with violence and illegal means.
• Many districts in different states are affected by Maoist insurgency and rebel groups virtually run a parallel administration. These groups openly advocate the overthrow of the state government by revolution. Hence the abolition of Section 124A would be ill-advised.

Arguments against

• Before Independence, this charge was used by the British to suppress the freedom movement.
• Ironically, the same draconian law has become a tool that the country is now using against its own people.
• During the colonial period section, 124-A was interpreted by the Privy Council in a way to suppress every act that expressed discontent against the govt.
• Many freedom fighters were slapped with these charges for invoking feelings of nationalism and educating the people of India against the policies adopted by the colonial power.
• Instead of critically analyzing why citizens, be they in Kashmir or Chhattisgarh or Bhima Koregaon, are driven to dissent, the government is using an iron-fist policy with the sedition law playing a leading role to completely shut out contrarian views.
• Despite the clearly set out guidelines for applying the charge of sedition, lower courts have routinely failed to apply these parameters while considering sedition cases. There is a complete lack of percolation of settled judicial opinion to lower levels of the judiciary. Judiciary should address this systemic lapse.
• Magistrates have the power to order a police investigation into cognizable offenses. And the Supreme Court has, in Lalita Kumari vs. Uttar Pradesh (2013), laid down that registration of an FIR is mandatory if information received by the police discloses a cognizable offense, However, in recent cases, it is unclear how the court or the police could conclude that the contents were seditious.

Supreme Court judgments on it

• In 1962, the Supreme Court decided on the constitutionality of Section 124A in Kedarnath Singh v State of Bihar.
• It upheld the constitutionality of sedition, but limited its application to “acts involving intention or tendency to create disorder, or disturbance of law and order, or incitement to violence”.
• It distinguished these from “very strong speech” or the use of “vigorous words” strongly critical of the government.
• Maneka Gandhi case, 1978:

• The Maneka Gandhi judgment was a balanced judgment and is one of the best judgments that Indian Supreme Court has ever given.
• The judgment’s importance can be seen today also because the way in which the bench construed Article 21and expanded its horizons has given way for the resolving of problems left unsolved by the Parliament.
• The SC stated that Criticizing and drawing general opinion against the Govt. policies and decisions within a reasonable limit that does not incite people to rebel is consistent with the freedom of speech.

• In 1995, the Supreme Court, in Balwant Singh v State of Punjab, held that mere sloganeering which evoked no public response did not amount to sedition.

Way Forward

• The sedition law should not be abolished as some measurements are needed to check communal violence & insurgency activities like Naxals.
• The court also needs to examine the classification of the offense of sedition as cognizable and non-bailable.
• India is the largest democracy in the world and the right to free speech and expression is an essential ingredient of democracy.
• Section 124A should not be misused as a tool to curb free speech. The SC caveat, given in the Kedar Nath case, on prosecution under the law can check its misuse.
• The definition of sedition should be narrowed down, to include only the issues pertaining to the territorial integrity of India as well as the sovereignty of the country.

Content

Finance Ministers from the Group of Seven (G7) rich nations have reached a landmark accord setting a global minimum corporate tax rate, an agreement that could form the basis of a worldwide deal.

Global Minimum Corporate Tax

• Major economies are aiming to discourage multinational companies from shifting profits – and tax revenues – to low-tax countries regardless of where their sales are made.
• Increasingly, income from intangible sources such as drug patents, software, and royalties on intellectual property has migrated to these jurisdictions.
• This has allowed companies to avoid paying higher taxes in their traditional home countries.
• With a broadly agreed global minimum tax, the Biden administration hopes to reduce such tax base erosion without putting American firms at a financial disadvantage.

How would such tax work?

• The global minimum tax rate would apply to companies’ overseas profits.
• Therefore, if countries agree on a global minimum, governments could still set whatever local corporate tax rate they want.
• But if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the agreed minimum rate, eliminating the advantage of shifting profits to a tax haven.
• The Biden administration has said it wants to deny exemptions for taxes paid to countries that don’t agree to a minimum rate.

Reasons why the USA is proposing it

• Hike in tax rates: The plan seeks to increase the US corporate tax rate to 28 percent from 21 percent. The ex-US President had reduced the corporate tax rates from 35 percent to 21 percent.
• Revitalization: It aims to revitalize the transportation infrastructure, water systems with other goals.
• An increase in the tax rate and other measures to prevent the offshoring of profits will fund it.
• More cooperation: It will support integration instead of isolationism.
• Tax evasion: The plan will stop firms from shifting profits to tax haven countries.
• Stability: The bill aims to stabilize tax systems to raise enough revenue to invest in public welfare.

Significance

• This measure will help close cross-border tax loopholes used by some of the world’s biggest companies, thus will help limit base erosion and profit sharing (BEPS).
• Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to the low tax jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.
  • As per some estimates, countries are losing $427 billion every year to tax havens. India suffers an annual loss of $10.3 billion from global tax abuse.
• This agreement marks a much necessary reform of the global tax system to make it fit for the current global digital age where cross-border digital services are gaining prominence.
• The introduction of a global minimum corporate tax will contribute to ending the decades-long “race to the bottom on corporate tax rates”, in which countries have resorted to ultra-low tax rates and tax exemptions to lure multinationals companies to invest.
• Such measures have cost such countries hundreds of billions of dollars whereas the corporate entities have only grown richer.
• This landmark agreement could form the basis of a worldwide deal.
• The Organization for Economic Cooperation and Development has been coordinating tax negotiations among 140 countries on rules for taxing cross-border digital services and curbing tax base erosion, including a global corporate minimum tax. The OECD and G20 countries aim to reach consensus on both by mid-year.
• The agreement has committed to reaching an equitable solution on the allocation of taxing rights. It will focus on protecting the interest of the market countries by awarding such countries certain degree of taxing rights on the profits of the multinational enterprises.
• This will help ensure that MNCs would pay taxes where they operate and record their profits from based on the concept of ‘Significant Economic Presence’.

International Stand

• The Organization for Economic Cooperation and Development (OECD) has been coordinating tax negotiations among 140 countries for years on rules for taxing cross-border digital services and curbing tax base erosion, including a global corporate minimum tax.
• The International Monetary Fund has long favored the adoption of a global minimum tax on corporate profits as it would help in the reduction of current disparities in the national corporate tax rate.
• It would largely help in reducing tax shifting and tax avoidance.
• It would reduce the tax base on which governments could collect revenues for funding economic and social spending.

Criticism/ Challenges

• A global minimum rate would essentially take away a tool that countries use to push policies that suit them.
• For instance, in the backdrop of the pandemic, IMF and World Bank data suggest that developing countries with less ability to offer mega stimulus packages may experience a longer economic hangover than developed nations. A lower tax rate is a tool they can use to alternatively push economic activity.
• Also, a global minimum tax rate will do little to tackle tax evasion.
• The inclusion of investment funds and real estate investment trusts under such a system could also lead to some differences during the negotiations.
• Lack of consensus: Several countries have taken a different approach to the rate of global minimum tax.

India’s Stand

• Indian Government has said that it is open to participate and engage in discussions about the Global Minimum corporate tax structure.
• It said that the government will look into the pros and cons of the new proposal and take a view thereafter.

How Global Minimum Tax would benefit India?

• The proposal, along with the increased tax bill for U.S. companies, may benefit the Indian revenue department.
• The State of Tax Justice report of 2020 notes that India loses over $10 billion in tax revenue due to the use of offshore structures, particularly through investments made by Indian residents through Mauritius, Singapore and the Netherlands.
• This is supported by the overseas direct investment (ODI) data from 2000 to 2021 published by the Reserve Bank of India.
• Start-ups and large Indian conglomerates commonly use offshore structures for conducting global operations.
• Revenue from such operations is often retained offshore and not repatriated to India.
• Tax advantages incentivise such structures, due to which taxes on such income are not paid in India.
• Once these proposals are implemented, Indian companies would have to pay additional taxes on their offshore structures to the extent that the effective rate of tax is lower than the global minimum tax rate.

Way Forward

• The agreement will be discussed in detail at a meeting of G20 finance ministers in July in Venice with an expectation to get broader support from countries that may lose investment due to the new policy.
• There is a need to support this effort by the US government to build a consensus among the G20 countries to increase the corporate tax rate and to end the race to reduce corporate tax in the world so that the pandemic ridden world is able to come out fast of its economic problems and efforts of development can be speeded up in all the countries of the world.
• Even though a lot more remains to be done to achieve parity in international financial relations and the advancement of the goals of global tax justice, the global corporate minimum tax could go a long way in the accomplishment of these aims.
• Countries like India should not be recalcitrant about signing on to this proposal, and should approach this idea with cautious optimism.

Context

The dark web refers to websites on the darknet, a network built over the internet which provides added anonymity. Many users surf the dark web due to its greater privacy levels compared to the regular internet, AKA the ‘clear web’. It can also, however, offer a platform to criminals looking to trade illegal goods and orchestrate darknet scams.

Introduction

• A darknet or darknet is an overlay network within the Internet that can only be accessed with specific software, configurations, or authorization, and often uses a unique customized communication protocol.
• Dark Web is the virtual equivalent of a black market. Like Silk Road that marketed illegal drugs through the Dark Web, entities that want to operate out of the arms of the law seek refuge in the Dark Web.
• The darknet, also known as the “dark web,” is a component of the greater “deep web,” a network of encrypted Internet content that is not accessible via traditional search engines.
• The darknet is most often used for illegal activities such as black markets, illegal file sharing, and the exchanging of illegal goods or services (including stolen financial and private data), and the anonymity of the darknet attracts drug dealers, hackers, and child pornography peddlers.
• Darknet markets have been instrumental in the development of cryptocurrencies because transactions completed on darknet markets using cryptocurrency protect both the buyer and seller.

Darknet Vs Darkweb

• The terms “darknet” and “deep web” are occasionally used interchangeably. However, this is not correct.
• The darknet is part of the greater deep web. The deep web encompasses all unindexed sites that don’t pop up when you do an Internet search.
• Not all activities associated with the deep web are nefarious. In most cases, these pages are not searchable through traditional channels.
• The darknet is part of the deep web, but it refers to websites that are specifically used for nefarious reasons. Darknet sites are purposefully hidden from the surface net by additional means. 

How it works

• One of the most common ways that darknet websites are separated out from the surface net is through encryption. Most darknet websites use the Tor encryption tool to help hide their identity.
• Tor allows individuals to hide their location, appearing as if they are in a different country. 
• When individuals use Tor, their IP addresses and other identifying information are similarly encrypted.
• It is not difficult for an individual to access the darknet as long as they have the proper encryption tools. 
• The Tor encryption tool uses many layers of encryption and anonymizes all traffic by routing it through a dense network of secure relays. 
• Tor software is not illegal but the way that it is used can be illegal. Tor is not always used to access darknet services.

Advantages

• Express views: The dark web helps people to maintain privacy and freely express their views. Privacy is essential for many innocent people terrorized by stalkers and other criminals. 
• Facilitate whistleblowing :The dark net can facilitate whistleblowing and news leaks, act as a tool to allow individuals to circumvent censorship networks, and can be used as a means of protecting political dissidents from reprisal.
• Journalists seeking to interview citizens of repressive countries where communications are monitored might use the dark net. 
• Undercover activities: The popularity of the dark web with criminals makes it a perfect way for undercover police officers to communicate.

Disadvantages

• Computer crime (cracking, file corruption, etc.)
• File sharing (warez, personal files, pornography, confidential files, illegal or counterfeit software, etc.)
• Sale of restricted goods on darknet markets
• Purchase or sale of illicit or illegal goods or services
• Circumventing network censorship and content-filtering systems, or bypassing restrictive firewall policies.
• While the dark web promises privacy to its users, it can also be used to violate the privacy of others. Private photos, medical records, and financial information have all been stolen and shared on the dark web.

Need of a data protection law

Data protection is a must in the age of digital era. The law should encompass all the aspects- data collection, processing and sharing practices in an integrated manner. The Kerala Police has set up a ‘state-of-the-art lab’ to intervene and crack down on the rising criminal activities over the Darknet, also known as the underworld of the Internet. The state must prevent and investigate digital crimes, prevent misuse of data and encourage data security through legislation.

• Data theft protection: Unlike the data protection regulations in place in the European Union and in the U.S., India still lacks a comprehensive legal framework to protect data privacy. Considering the manner in which public data are being stored and used by both the state and private entities, data of individuals is at high risk for being misused in Darknet. For efficient management of data in the age of digitisation, a data protection law is needed.
• Right to privacy: The Supreme Court (SC) in Justice K.S Puttaswamy vs Union of India case, declared that the right to privacy is an inherent part of the fundamental right under Article 21 of the constitution. Thus, it is the duty of the state to safeguard individual’s privacy through legislation.
• Rising cyber-crime: Public data leaks have been quite common in India from government websites enabling the download of Aadhaar numbers to electoral data rolls being downloaded in bulk, among others. Due to increased digitisation and increased digital complexities, data protection is needed for the hour. Recent rise of crimes like WhatsApp, Pegasus scam demands a data protection law in place.
• Regulating companies: Large amounts of personal data have been collected by state agencies and private companies and their flow across national boundaries has been a cause for concern. There are many instances that the state and private agencies that are using the personal data are not transparent on the purpose for which the data is being used. To curtail the perils of unregulated and arbitrary use of personal data a legislation must be in place.
• Digital India: With a billion population, India has the second highest internet user base in the world. India has 450 million internet users and is expected to increase to 730 million by 2020. With emphasis on digital India, the government must ensure the safety of citizen’s data.

Darknet and India

• The Centre has directed all law enforcement agencies to have eye over foreign-based content providers of data and metadata and to make legislative changes to provide immunity for cyber hackers, which law enforcement agencies use to counter Dark web transactions.
• In India, the Information Technology Act deals with cybercrime and comes under the Ministry of Electronics and Information Technology. There are only six sections in the law that deal with cybercrime.
• Centre for Development of Advanced Computing is working with CSIR on developing a darknet telescope base cyber security monitoring and interference framework.  This will help law enforcement agencies track cyber criminals who are selling illegal products and services on such platforms and also track terrorism relate communications and activities.

Way Forward

Since the dark web serves as both a hotbed for illegal activity and a platform for users to anonymously voice their thoughts freely, there is demand for its continued existence. In the future, the dark web community will develop advanced tactics to evade detection by the authorities. To minimize the illegal activities on darknet following steps must be taken:-

• Nodal agency: As cryptocurrency becomes more mainstream, it will increasingly be used to facilitate dark web transactions. To stop or minimize this a nodal agency must be set up so as to keep a check on crypto transactions used for nefarious activities.
• Cybercrime units around the world must be kept updated with advancements in the darknet society thereby giving them enough power to handle and tackle any illegal activity across the darknet. There must be international cooperation to deal with the issue.
• Kerala Police Department’s initiative, Cyberdome, a premier facility dedicated to prevent cybercrime and mitigate cybersecurity threats to the State’s critical information infrastructure, is a step in the right direction which other concerned authorities across the nation can learn from.

Context

For the country to transition to carbon neutrality is easier said than done, say, climate experts, as it needs to balance growth with eco-goals. A TERI and Shell report, ‘India: Transforming to a net-zero emissions energy system’, says it is “technically possible” to achieve the goal, but cautions that it would be a highly challenging pathway. TERI, warns that a complete phase-out of coal plants by 2050 is likely to be difficult because of the economics of harnessing incremental RE potential and subsequent integration to the grid system.

Introduction

• Carbon neutrality refers to achieving net-zero carbon dioxide emissions or buying enough carbon credits to make up the difference. 
• This can be done by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society.
•  It is used in the context of carbon dioxide-releasing processes associated with transportation, energy production, agriculture, and industry.
•  The term carbon neutral also includes other greenhouse gases, usually carbon-based, measured in terms of their carbon dioxide equivalence. 
• The term “net-zero” is increasingly used to describe a broader and more comprehensive commitment to decarbonization and climate action. Net-zero emissions are achieved when your organization’s emissions of all greenhouse gases (CO₂-e) are balanced by greenhouse gas removals

Methodology

Carbon-neutral status can be achieved in two ways:

• Carbon offsetting: Balancing carbon dioxide emissions with carbon offsets — the process of reducing or avoiding greenhouse gas emissions or removing carbon dioxide from the atmosphere to make up for emissions elsewhere. If the total greenhouse gasses emitted is equal to the total amount avoided or removed, then the two effects cancel each other out and the net emissions are ‘neutral’.
• Reducing emissions: Reducing carbon emissions can be done by moving towards energy sources and industrial processes that produce fewer greenhouse gases, thereby transitioning to a low-carbon economy. Shifting towards the use of renewable energy such as hydro, wind, geothermal, and solar power, as well as nuclear power, reduces greenhouse gas emissions.

Agreement and Target

• The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
• Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.
• Article 4.1 of the Paris Agreement asks countries to reach global peaking of greenhouse gas emissions as soon as possible.
• It also requires countries to undertake rapid reductions in carbon emissions to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases.

Global Actions regarding the agreement

• Several other countries, including the UK and France, have already enacted laws promising to achieve a net-zero emission scenario by the middle of the century.
• The EU is working a similar Europe-wide law, while many other countries including Canada, South Korea, Japan and Germany have expressed their intention to commit themselves to a net-zero future.
• Even China has promised to go net-zero by 2060.
• The hollowness of nation-level carbon neutrality declarations by developed countries is brought out starkly when we consider the details, as in the case of the United States.
• Emissions in the U.S. peaked in 2005 and have declined at an average rate of 1.1% from then till 2017, with a maximum annual reduction of 6.3% in 2009, at the height of a recession.
• Even if it did reach net-zero by 2050 at a steady linear rate of reduction, which is unprecedented, its cumulative emissions between 2018 and 2050 would be 106 GtCO2, which is 22% of the total remaining carbon budget for the whole world so high, that unless others reduced emissions at even faster rates, the world would most certainly cross 1.5°C warmings.
• Regrettably, a section of the climate policy modeling literature has promoted the illusion that this three-way compatibility is feasible through speculative “negative emissions”, ostensibly through a dramatic expansion of carbon capture, primarily by the biosphere.
• They have also been promoting the other illusion that not resorting to any serious emissions increase at all is the means to guarantee the successful development of the Third World.

India @Net Zero emission

• India is the only one opposing this target because it is likely to be the most impacted by it.
• Over the next two to three decades, India’s emissions are likely to grow at the fastest pace in the world, as it presses for higher growth to pull hundreds of millions of people out of poverty.
• No amount of afforestation or reforestation would be able to compensate for the increased emissions.
• Most of the carbon removal technologies right now are either unreliable or very expensive.

Why does India object to net-zero emissions?

• The net-zero goals do not figure in the 2015 Paris Agreement, the new global architecture to fight climate change.
• The Paris Agreement only requires every signatory to take the best climate action it can.
• Countries need to set five- or ten-year climate targets for themselves, and demonstrably show they have achieved them.
• Implementation of the Paris Agreement has begun only this year.
• Most of the countries have submitted targets for the 2025 or 2030 period.
• India has been arguing that instead of opening up a parallel discussion on net-zero targets outside of the Paris Agreement framework, countries must focus on delivering on what they have already promised.

India’s step towards Net Zero emissions

• India is hoping to lead by example. It is well on its way to achieving its three targets under the Paris Agreement and looks likely to overachieve them.
• Several studies have shown that India is the only G-20 country whose climate actions are compliant with the Paris Agreement goal of keeping global temperatures from rising beyond 2°C.
• Even the actions of the EU, which is seen as the most progressive on climate change, and the US are assessed as “insufficient”.
• In other words, India is already doing more, relatively speaking, on climate than many other countries.

How to achieve Net Zero emissions

• Fossil fuels: The use of fossil fuels must go down steeply for the production of energy and electricity. Alternate sources must be bought into majority practices so as to achieve the target of carbon neutrality by 2050. Within renewables, the focus ought to be more on solar and wind energy—hydroelectricity, given its impact on aquatic ecology, at best maybe a filler. 
• More electrification: Electricity is zero-emission when consumed, and the world needs to rely on it a lot more to hit its decarbonization goals. Much progress has been made in emerging economies, especially in Asia. But in many developed markets, the share of electricity in the total energy mix has stood still, or even slipped. For power companies, there needs to be a move away from fossil fuels such as coal and gas.

      (Wind & solar growth as part of global electricity generation)

• Bioenergy to the fore once more: Focus must be shifted away from the “food versus fuel” dilemma, under which crop-based biofuels were linked with rising food prices, deforestation and conflict over land. Now there is a new generation of biofuels that can be made from inedible crops and oils, and from agricultural and municipal waste. 

                  (The production of biofuels from forestry waste)

• Greater use of hydrogen: Hydrogen is light and storable and produces no direct CO₂ emissions when converted into energy. That is why society needs to use more of it – and why governments should keep providing incentives to do so.
• Carbon sequestration: Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide. It is one method of reducing the amount of carbon dioxide in the atmosphere with the goal of reducing global climate change.

                     (Global carbon capture and storage capacity)

Way forward

• Ours is the last generation that can prevent global disaster. The need for action is immediate. It therefore falls upon this generation of business, government and society leader to accelerate action individually and through collaboration.
• All stakeholders – corporations, governments, investors and, ultimately, individuals – can take unilateral initiative to lower emissions, often with positive economic implications. Collective actions can support and amplify individual ones.
• Where the costs and risks of taking action for individual companies are higher (for example, in emission-intensive sectors), ecosystems of industry peers, value chain players or public-private partnerships can work together, sharing the burden.
• The world needs decisive action at every level to change the trajectory of ever-increasing emissions. In light of the facts, it should be viewed as an opportunity for businesses, countries and individuals to create an advantage in building a better, more sustainable world.

Context

Recently, in a letter to the President of India, a group of retired
bureaucrats and diplomats, in the context of recent incidents, expressed concern over the EC’s “weak-kneed conduct” and the institution “suffering from a crisis of credibility today”.

Introduction

India being the biggest democracy in the world needs a body that
guarantees free and fair elections and that is where the Election
Commission of India comes into the picture. Established in the year 1950, Article 324 of the Constitution provides that the power of superintendence, direction and control of elections to parliament, state legislatures, the office of the president of India and the office of vice-president of India shall be vested in the election commission.

But is the Indian highest electoral body free and fair as it should be?

What is E.C.I?

• The Election Commission of India is an autonomous constitutional authority responsible for administering Union and State election processes in India.
• The body administers elections to the Lok Sabha, Rajya Sabha, and State Legislative Assemblies in India, and the offices of the President and Vice President in the country.

Background

• Part XV of the Indian constitution deals with elections, and establishes a commission for these matters.
• The Election Commission was established in accordance with the Constitution on 25th January 1950.
• Article 324 to 329 of the constitution deals with powers, function, tenure, eligibility, etc of the commission and the member.

Articles related to Elections

324 -Superintendence, direction and control of elections to be vested in an Election Commission.

325 -No person to be ineligible for inclusion in, or to claim to be
included in a special, electoral roll on grounds of religion,
race, caste or sex.

326 –Elections to the House of the People and to the Legislative
Assemblies of States to be on the basis of adult suffrage.

327 -Power of Parliament to make provision with respect to elections to Legislatures.

328 –Power of Legislature of a State to make provision with respect to elections to such Legislature.

329 -Bar to interference by courts in electoral matters.

Structure of the Commission

• Originally the commission had only one election commissioner but after the Election Commissioner Amendment Act 1989, it has been made a multi-member body.
• The commission consists of one Chief Election Commissioner and two Election Commissioners.
• The secretariat of the commission is located in New Delhi.
  At the state level election commission is helped by the Chief
• Electoral Officer who is an IAS rank Officer.
  The President appoints Chief Election Commissioner and Election Commissioners.
• They have a fixed tenure of six years, or up to the age of 65 years, whichever is earlier.
• They enjoy the same status and receive salary and perks as available to Judges of the Supreme Court of India.
• The Chief Election Commissioner can be removed from office only through a process of removal similar to that of a Supreme Court judge for by Parliament.

Functions

• Election Commission of India superintendents, direct and control the entire process of conducting elections to Parliament and Legislature of every State and to the offices of President and Vice-President of India.
• The most important function of the commission is to decide the election schedules for the conduct of periodic and timely elections, whether general or bye-elections.
• It prepares electoral rolls, issues Electronic Photo Identity Cards (EPIC).
• It decides on the location of polling stations, assignment of voters to the polling stations, location of counting centers, arrangements to be made in and around polling stations and counting centers and all allied matters.
• It grants recognition to political parties & allot election symbols to them along with settling disputes related to it.
• The Commission also has advisory jurisdiction in the matter of post-election disqualification of sitting members of Parliament and State Legislatures.
• It issues the Model Code of Conduct in election for political parties and candidates so that the no one indulges in unfair practice or there is no arbitrary abuse of powers by those in power.
• It sets limits of campaign expenditure per candidate to all the political parties, and also monitors the same.

Importance of ECI for India

• The ECI has been successfully conducting national as well as state elections since 1952. In recent years, however, the Commission has started to play the more active role to ensure greater participation of people.
• The Commission had gone to the extent of disciplining the political parties with a threat of derecognizing if the parties failed in maintaining inner-party democracy.
• It upholds the values enshrined in the Constitution viz, equality,
  equity, impartiality, independence; and rule of law in superintendence, direction, and control over electoral governance.
• It conducts elections with the highest standard of credibility, freeness, fairness, transparency, integrity, accountability, autonomy and professionalism.
• It ensures participation of all eligible citizens in the electoral process in an inclusive voter-centric and voter-friendly environment.
• It engages with political parties and all stakeholders in the interest of the electoral process.
• It creates awareness about the electoral process and electoral
  governance amongst stakeholders namely, voters, political parties, election functionaries, candidates and people at large; and to enhance and strengthen confidence and trust in the electoral system of this country.

Powers of E.C.I

In details, these powers of Election Commission of India are:

• Determining the Electoral Constituencies’ territorial areas throughout the country on the basis of the Delimitation Commission Act of Parliament.
• Preparing and periodically revising electoral rolls and registering all eligible voters.
• Notifying the schedules and dates of elections and scrutinising
  nomination papers.
• Granting recognition to the various political parties and allocating them election symbols.
• Acting as a court to settle disputes concerning the granting of
  recognition to political parties and allocating election symbols to the parties.
• Appointing officers for inquiring into disputes concerning electoral arrangements.
• Determining the code of conduct to be followed by the political parties and candidates during elections.
• Preparing a program for publicising the policies of all the political parties on various media like TV and radio during elections.
• Advising the President on matters concerning the disqualification of MPs.
• Advising the Governor on matters concerning the disqualification of MLAs.
• Cancelling polls in case of booth capturing, rigging, violence and
  other irregularities.
• Requesting the Governor or the President for requisitioning the staff required for conducting elections.
• Supervising the machinery of elections throughout the country for ensuring the conduct of free and fair elections.
• Advising the President on whether elections can be held in a state that is under the President’s rule, in order to extend the period of emergency after 1 year.
• Registering political parties and granting them the status of national or state parties (depending on their poll performance).

Important initiatives taken by E.C.I

• Introduction of voter ID’s to stop fraudulent voting.
• EVM (electronic voting machine) was introduced in 2003 to stop the violence due to booth capturing agenda.
• EVMs also solved the logistical problem of printing paper ballots, transporting and safely storing them, and then physically counting millions of votes.
• To enhance transparency and credibility of the election process,
  VVPAT was introduced with EVM at every polling station.
• Systematic Voters’ Education and Electoral Participation program, better known as SVEEP was introduced in 2009 which is the flagship program of the Election Commission of India for voter education, spreading voter awareness and promoting voter literacy in India.
• NOTA (none of the above) voting system was introduced to facilitate voters who support none of the candidates.
• Totaliser was introduced, which is a mechanism in the voting
  machines in India to hide the booth-wise voting patterns.
• Street plays and Braille equipped EVM’s were introduced in the 2019 election for the awareness of rural, illiterate and blind voters.
• Multiple mobile apps were launched to facilitate various kinds of
  voters.

Issues with E.C.I

 1. Flaws in the composition

• The Constitution doesn’t prescribe qualifications for members of the EC.
• Terms of the members of EC are not specified.
• They are not debarred from future appointments after retiring or
  resigning.
• Election commissioners aren’t constitutionally protected with
  security of tenure.

2. Violation of Model code of conduct

• The EC has come under the scanner like never before, with increasing incidents of breach of the Model Code of Conduct in the 2019 general elections.
• A.For example, Mission shakti speech – The letter mentioned the PM’s recent announcement of India’s first anti-satellite (ASAT) test. It is described as a serious breach of propriety amounting to giving unfair publicity to the party in power.
• B.Launch of NAMO TV without license and thereby telecasting it throughout the 48 hour warm period before the elections which is not allowed under section 126 of the Representation of the People act.

3. Allegation of partisan role:

• The opposition alleged that the ECI was favoring the ruling party by giving clean chit to the model code of conduct violations made by the prime minister.
• Increased violence and electoral malpractices under influence of
  money have resulted in political criminalization, which ECI is unable to arrest.
• Allegations of EVMs malfunctioning, getting hacked and not
  registering votes, corrodes the trust of the general masses in ECI.

4. Transfer of officials

• Observers of ECI report to it about the conduct of certain
  officials of the States where elections are to be held.
• Transfer of an official is within the exclusive jurisdiction of
  the government.
• It is actually not clear whether the ECI can transfer a State
  government official in exercise of the general powers under
  Article 324 or under the model code.
• Transfer of an official is within the exclusive jurisdiction of
  the government.
• It is actually not clear whether the ECI can transfer a State
  government official in the exercise of the general powers under
  Article 324 or under the model code.
• Further, to assume that a police officer or a civil servant will be able to swing the election in favour of the ruling party is extremely unrealistic and naive.

5. ECI’s intervention in administrative decisions

• According to the model code, Ministers cannot announce
  any financial grants in any form, make any promise of
  construction of roads, provision of drinking water facilities,
  etc or make any ad hoc appointments in the government.
  departments or public undertakings.
• These are the core guidelines relating to the government.
• But in reality, no government is allowed by the ECI to
  take any action, administrative or otherwise, if the ECI
  believes that such actions or decisions will affect free and
  fair elections.
• A recent decision of the ECI to stop the Government of
  Kerala from continuing to supply kits containing rice, pulses,
  cooking oil, etc is a case in point.
• The Supreme Court had in S. Subramaniam Balaji vs
  Govt. of T. Nadu & Ors (2013) held that the distribution of
  colour TVs, computers, cycles, goats, cows, etc, done or
  promised by the government is in the nature of welfare
  measures and is in accordance with the directive principles of state policy, and therefore it is permissible during an election.
• So, how can the distribution of essential food articles which are used to stave off starvation be electoral malpractice?

Way Forward

Strengthening the EC itself:

• The constitutional protection given to CEC must also be given to the other election commissioners.
• To stop the Favouritism to any of the political parties or candidates there must be a cooling off period from any political or constitutional appointments for the retiring CEC’s and EC’s post retirement.
• Institutionalize the convention where the senior most election
  commissioner should automatically be elevated to the post of chief election commissioner in order to instill a feeling of security in the minds of EC’s and that they are insulated from the executive interference.
• The expenditure of the commission must be charged upon the
  consolidated fund of India for its unbiased working.
• The dependence on DOPT, Law Ministry and Home ministry must be reduced and the ECI should have an independent secretariat for itself.
• The ECI must be vigilant and watchful against the collusion at the lower level of civil and police bureaucracy in favour of the ruling party of the day.
• VVPAT must be used in all the polling booths to curb down the
  controversy related to the bugged EVM’s.
• The moral code of conduct must be strengthened and special
  permanent powers be given to ECI for the better implementation of rules and conducts.
• ECI must modernize itself technically and therefore must punish the people flaunting the MCC on social and visual audio platforms.

References:

• The Hindu
• The Indian express
• Wikipedia
• www.eci.gov.in
• The times

When the North Atlantic Treaty Organization (NATO) leaders meet later this year, they will debate the recommendations from a group of experts that advocates, among other things, extending a formal offer of partnership to India.

Such an idea has been discussed before but has always delayed on India’s aversion to entanglement in rival geopolitical blocs.

NATO: A backgrounder

NATO was found in the aftermath of the Second World War. Its purpose was to secure peace in Europe, to promote cooperation among its members and to guard their freedom – all of this in the context of countering the threat posed at the time by the Soviet Union.

• NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
• It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
• Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
• NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.

Why was it founded?

Communist sweep in Europe post-WWII and rise of Soviet dominance

• After World War II in 1945, Western Europe was economically exhausted and militarily weak, and newly powerful communist parties had arisen in France and Italy.
• By contrast, the Soviet Union had emerged from the war with its armies dominating all the states of central and Eastern Europe.
• By 1948 communists under Moscow’s sponsorship had consolidated their control of the governments of those countries and suppressed all non-communist political activity.
• What became known as the Iron Curtain, a term popularized by Winston Churchill, had descended over central and Eastern Europe.

And the US (the torchbearer of individual liberty and the master of democracy) had to enter (for no reasons) …

In 1948 the United States launched the Marshall Plan.

• It infused massive amounts of economic aid to the countries of western and southern Europe on the condition that they cooperate with each other and engage in joint planning to hasten their mutual recovery.
• As for military recovery, under the Brussels Treaty of 1948, the UK, France, and the Low Countries—Belgium, the Netherlands, and Luxembourg—concluded a collective-defense agreement called the Western European Union.
• It was soon recognized, however, that a more formidable alliance would be required to provide an adequate military counterweight to the Soviets.

Ideology of NATO

• The NATO ensures that the security of its European member countries is inseparably linked to that of its North American member countries.
• It commits the Allies to democracy, individual liberty and the rule of law, as well as to peaceful resolution of disputes.
• It also provides a unique forum for dialogue and cooperation across the Atlantic.

The Article 5

The heart of NATO is expressed in Article 5 of the North Atlantic Treaty, in which the signatory members agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all.

NATO invoked Article 5 for the first time in 2001, after the September 11 attacks organized by exiled Saudi Arabian millionaire Osama bin Laden destroyed the World Trade Center in New York City and part of the Pentagon outside Washington, D.C., killing some 3,000 people.

NATO and its present relevance: China on radar

The end of the Cold War precipitated NATO’s identity crisis. With the US at the centrestage, the organization pivoted away from its longtime focus on collective defence against Moscow.

• In December 2019, US made it clear that China is now on NATO’s radar screen.
• Following continuous pressure by the Trump administration, the alliance agreed in April 2019 to initiate a study of China’s more assertive role on the international stage.
• This culminated in NATO formally acknowledging, in its December 2019 summit declaration about China’s growing influence and international policies present both opportunities and challenges.

Why NATO should focus on China?

China presents a novel and complex challenge for NATO and it cannot rush into a confrontation. Four important considerations dominate NATO’s approach.

(1) China is not the Soviet Union

• Beijing has far greater economic clout; modern Chinese citizens, unlike their earlier Soviet (and Chinese) counterparts, now live in a more market-oriented society.
• The US and Chinese economies are intertwined in a way that differ markedly from the US and Soviet experience in the Cold War.
• Despite talk of “decoupling,” China is continuing to integrate into global financial markets, which is something the Soviet Union never did.

(2) It dwells on new tasks

• NATO is well-suited to take on new responsibilities thanks to the ambiguity of its founding text.
• That is not, however, the case with China. Aside from internal difficulties, NATO is not facing an immediate threat to its survival, nor does it need new functions to justify its relevance.

(3) Repairing Transatlantic Divisions

• There has been some limited transatlantic convergence in recent years, as the European Union has toughened its stance, labeling China a “systemic rival” in 2019.
• Furthermore, the pandemic’s origins in China and the Beijing government’s initial response to the virus have given more voice to those who see China as a threat.
• Recently, the United States and Europe have quietly increased their cooperation when trying to tackle China, such as over the Belt and Road Initiative.

India and NATO

During the Cold War, India’s refusal was premised on its non-alignment. That argument had little justification once the Cold War ended during 1989-91. Since then, NATO has built partnerships with many neutral and non-aligned states.

Reasons for India’s reluctance

• India’s real problem is not with NATO, but with Delhi’s difficulty in thinking strategically about Europe. This inhibition has deep roots.
• Through the colonial era, Calcutta and Delhi viewed Europe through British eyes. After Independence, Delhi tended to see Europe through the Russian lens.
• In the last few years, Delhi has begun to develop an independent European framework but has some distance to go in consolidating it.
• Talking to NATO ought to be one important part of India’s European strategy.

As the Cold War enveloped the world, nuancing Europe became harder in Delhi.  India began to see West Europe as an extension of the US and Eastern Europe as a collection of Soviet satellites.

Why should India join NATO?

Core to NATO’s future is its standing as an alliance of democracies, particularly given that its principal strategic competitors are China and Russia, major authoritarian powers.

(1) Non-alignment is irrelevant

• Non-alignment is a worn-out misnomer. India is under no illusions that a truly non-aligned path remains a viable option.
• China’s meteoric rise has dramatically heightened India’s need for closer security relationships with politically reliable, like-minded states.
• India’s policy of equidistance, with tilts towards Russia and China, is not viable enough to meet the juggernaut of China’s power in Indo-Pacific.

(2) India is already partner with its members

• An India-NATO dialogue would simply mean having regular contact with a military alliance, most of whose members are well-established partners of India.
• India has military exchanges with many members of NATO — including the US, Britain, and France — in bilateral and minilateral formats.

(3) Strategic benefits

• Longer-term, India would derive military-strategic benefits from partnership with the world’s most powerful alliance.
• In the event of a conflict, India would benefit from having prior planning and arrangements in place for cooperating with NATO and its Mediterranean partners.

(4) Technological benefits

• Partnering with NATO also carries technological benefits.
• Under a US Act, India now enjoys the same technology-sharing and cost-sharing perks as other non-NATO US allies for purposes of the Arms Export Control Act.
• It could also help to offset the growing concerns and negative scrutiny that India is increasingly attracting in Congress for its disproportionate reliance on Russian military equipment.

(5) Membership would not corner ties with Russia

• Russia has not made a secret of its allergy to the Quad and Delhi’s alliance with Washington.
• Putting NATO into that mix is unlikely to make much difference. Delhi, in turn, can’t be happy with the deepening ties between Moscow and Beijing.
• As mature states, India and Russia know they have to insulate their bilateral relationship from the larger structural trends buffeting the world today.

Way forward

• To play any role in the Indo-Pacific, Europe and NATO need partners like India, Australia and Japan.
• Delhi, in turn, knows that no single power can produce stability and security in the Indo-Pacific. India’s enthusiasm for the Quad is recognition of the need to build coalitions.
• More broadly, an institutionalized engagement with NATO should make it easier for Delhi to deal with the military establishments of its 30 member states.
• On a bilateral front, each of the members has much to offer in strengthening India’s national capabilities.
• India’s continued reluctance to engage a major European institution like NATO will be a stunning case of strategic self-denial.

Conclusion

• NATO is not offering membership to India; nor seems New Delhi interested. At this issue is the question of exploring potential common ground.
• A pragmatic engagement with NATO must be an important part of India’s new European orientation, especially amidst the continent’s search for a new role in the Indo-Pacific.

Treaties are concluded in the national interest purely. Hence India should think of NATO.

References

https://smallwarsjournal.com/jrnl/art/interview-west-needs-redevelop-tools-and-mindset-strategic-competition

https://indianexpress.com/article/opinion/columns/why-india-must-not-say-no-to-nato-7260435/

Finance Minister has introduced the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in the Lok Sabha to pave way for setting up a government-owned DFI to fund infra projects.

NaBFID Bill

• The NaBFID Bill, 2021 was introduced in Lok Sabha on March 22, 2021.
• The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal development financial institution (DFIs) for infrastructure financing.

Tap to read more:

What are DFIs?

• The Bill describes DFI as the principal financial institution and development bank for providing and enabling infrastructure financing throughout the life cycle of the projects concerned.
• A DFI is basically an organization, either owned by the government or charitable institutions to finance infrastructure projects that are of national importance without expecting the standard commercial return.

Easy explanation:

• The government wants to create jobs and it wants to do it in a way that’s sustainable.
• One possible solution is to incentivize the private sector.
• Because when they invest in creating large infrastructure projects, it has a ripple effect on the economy. It creates new jobs. It creates productive assets. It creates value in the long run.
• However, these private entities won’t invest if they are strapped for cash.
• So in a bid to free them from such constraints, the government will set up a new financing institution that will lend long term loans at quite reasonable interest rates.

This would become the DFIs.

DFIs: A Backgrounder

• DFIs provide long-term credit for capital-intensive investments spread over a long period and low yielding rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.
• They are different from commercial banks, which mobilize short- to medium-term deposits and lend for similar maturities to avoid a maturity mismatch (a potential cause for a bank’s liquidity and solvency).

Their inception

• In India, the first DFI was operationalized in 1948 with the setting up of the Industrial Finance Corporation (IFCI).
• Subsequently, India’s Industrial Credit and Investment Corporation (ICICI) was set up with the World Bank’s backing in 1955.
• The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.

Their disbanding

• However, during the 1970-80s, DFI got discredited for mounting non-performing assets, allegedly caused by politically motivated lending and inadequate professionalism in assessing investment projects for economic, technical, and financial viability.
• Due to these factors, Narsimhan Committee (1991) recommended disbanding of the DFI, and the existing DFI were converted into commercial banks.

With the NaBFID Bill, the DFI model has made a comeback.

Why need DFIs?

The intent behind setting up a DFI is to provide long-term financing for infrastructure. India has since long time needed infra push due to various reasons:

Infra boost: Infrastructure projects are complex, capital-intensive, and have long gestation periods that often pose risks to project financiers. The scale and complexity of infrastructure projects make financing a challenge.

Banking limitations: There are difficulties in bank-led financing of infrastructure; their liability profile is not suited for financing long-term high-risk infrastructure projects.

NPA Crisis: The surge in NPAs in the banking sector, and the need to augment financing of infrastructure for kick-starting the growth cycle have led to a renewed policy attention on setting up DFIs.

Pandemic induced crisis: Covid-19 pandemic is impacting business and economy, globally. It has exacerbated inequality, the poverty gap, unemployment, and the economy’s slowing down. Thus, infrastructure building through DFIs can help in quick economic recovery.

Economic boost: The government has envisaged attaining the target of becoming a USD 5 trillion economy by 2025.  However, this goal will depend on infrastructure across the country. DFI is a step in the right direction towards this goal.

Global success stories: DFIs in China, Brazil, and Singapore has been successful in both domestic and international markets.

Various challenges

(1) Sources of funds

The lack of a sustainable source of funds, however, can prove to be a serious constraint to the proposed DFIs. Subsidised credit from the government and the Reserve Bank of India (RBI) has not proved to be a sustainable source in the past.

(2) Banking Crisis

At the heart of this old idea coming back in a new shape is the banking crisis in India, which emerged as a consequence of banks trying to fulfill the funding requirements of infrastructure projects.

(3) Regulatory forbearance

There could also be need for some regulatory forbearance — the older DFIs (IDBI, ICICI) operated in an era with no regulatory norms for quite a while, save their own internal guidelines.

Way Forward

Overcoming finance hurdles

• To ensure that the proposed institution is able to finance infrastructure investment, it should be allowed to raise long-term financing from domestic and external sources.
• The DFI should be allowed to tap the pools of capital in the form of pension funds, insurance companies and mutual funds.
• The proposed DFI should also be allowed to raise long-term financing from external markets and from multilateral financial institutions.

Sound management structure

• The proposed DFI needs to have a sound management structure.
• The government’s commitment to have a professional board with 50 per cent non-executive members is a step in the right direction.

Competency

• The proposed DFI should be able to attract competencies such as those of investment professionals and other experts who are able to assess the project from the development standpoint and the risks involved.

Going beyond infra

• NABFID must also help take infrastructure beyond roads and power, because there are other crucial sectors, especially health, social and urban infrastructure (water supply, sanitation) that has more pressing needs.
• More importantly, these sectors need the benefit of private expertise and skills more than finance.

Ensuring Good Governance

• While freeing a DFI from political interference or crony lending is necessary, merely having private shareholders or professional managers on board isn’t sufficient to ensure good governance.
• This has to be backed by a robust system of external checks and balances such as supervision by RBI and proper due diligence by auditors and rating agencies.

Ensuring Ease of Doing Business

• In the past, ambitious highway and pipeline projects have been continually held up by local protests and land acquisition woes, retrospective taxes, and poor contract enforcement.
• The success of DFIs is contingent on ironing out such issues and removing on-ground impediments to the ease of doing business.

Lastly, fix the distorted demand side (grappled with twin balance sheet) before increasing supply. Any number of institutions can be launched, but cannot be expected to work miracles in a corroded system.

Conclusion

NABFID, with the support of the government, must go beyond being a provider of capital, to helping enable the return of private sector to infrastructure; else it could end up as just one more DFI in the financing spectrum.

While boosting investment in the infrastructure sector is imperative for sustained growth, the need for the hour is to resolve persistent issues in the debt market that impede long-term financing flow.

References

https://www.thehindubusinessline.com/opinion/editorial/return-of-dfis/article33794397.ece

https://www.prsindia.org/content/examining-rise-non-performing-assets-india

https://www.thehindubusinessline.com/opinion/the-new-dfi-must-look-beyond-financing/article34217199.ece

https://www.livemint.com/opinion/columns/nostalgia-holds-lessons-for-new-financial-institutions-11616951998342.html