Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important IR Pacts in News

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14 April 2020 

BRICS Interbank Cooperation mechanism

• The Union Cabinet has given its approval to the signing of the (i) Interbank Local Currency Credit Line Agreement and (ii) Cooperation Memorandum Relating to Credit Ratings by Exim Bank with participating member banks under BRICS Interbank Cooperation Mechanism.
• As both the Agreement and the MoU are umbrella pacts, and are non-binding in nature, the Board of Directors of Exim Bank has been authorized to negotiate and conclude any individual contracts and commitments within their framework.

Impact

• The Agreements will promote multilateral interaction within the area of mutual interest whichØ will deepen political and economic relations with BRICS nations.
• Signing of the Agreement will position Exim Bank in the international platform along with largeØ development finance institutions, like CDS, VEB and BNDES.
• Exim Bank, leveraging this umbrella agreement, could enter into bilateral agreement with any ofØ these member institutions to raise resources for its business.
• As and when an opportunity arises for co-financing in commercial terms, by any two memberØ institutions (say India and South Africa), lending in single currency by both the institutions would also be possible.

BRICS ‘Beijing Declaration on Education

• BRICS ministers of education and assigned representatives have adopted ‘Beijing Declaration on Education’ in the 5th meeting of BRICS Ministers of education at Beijing.
• The Indian delegation was led by Prakash Javadekar, the Union Minister of Human Resource Development (HRD).
• According to the declaration, member states are committed to the UN Sustainable Development Goal 4 (SDG4)-Education 2030 which aims to “Ensure inclusive and equitable quality education and promote life-long learning opportunities for all”.
• The declaration reiterated support for the BRICS Network University (NU) to collaborate in the fields of education, research and innovation.
• It also encouraged universities to participate in the BRICS University League.
• BRICS member states also decided to increase cultural cooperation through language education and multilingualism.

INDIA-ASEAN: REVIEW OF FREE TRADE PACT

• India and South Korea concluded two agreements on defence educational exchanges and extension of logistical support to each other’s Navies, during recent India defence minister’s visit to Seoul.

BRICS Leaders’ Xiamen Declaration              

• 9th BRICS summit was held in Xiamen, China. This is the second time China has hosted
• the summit after the 2011 summit.
• At the end of the summit, Xiamen declaration was adopted by the leaders of the five countries.

Highlights of the Xiamen declaration:

• BRICS countries will strive towards broad partnerships with emerging markets and developing countries.
• To promote the development of BRICS local currency bond markets and to jointly establish a
• BRICS local currency bond fund and also to facilitate financial market integration.
• Explorations toward the establishment of the BRICS Institute of Future Networks.
• To strengthen BRICS cooperation on energy and work to foster open, flexible and transparent markets for energy commodities and technologies.
• BRICS Agriculture Research Platform is proposed to be established in India.
• To establish a genuinely broad counterterrorism coalition and support the UN’s central coordinating role in this regard.
• Importance of people-to-people exchanges in promoting development and enhancing mutual understanding, friendship and cooperation.
• To work together to promote most effective use of fossil fuels and wider use of gas, hydro and nuclear power.

Interbank Local Currency Credit Line Agreement:

• The initial Master Agreement on Extending Credit Facility in Local Currency under the BRICS.
• Interbank Cooperation Mechanism had a validity of five years, which has expired in March 2017.
• It is understood that some of the member banks (like CDB and VEB; CDB and BNDES) have entered into bilateral agreements for local currency financing under the Master Agreement signed in 2012.
• Although the current conditions are not conducive to usage, it was useful to keep the same alive as an enabling feature in case a suitable opportunity materializes in future.
• Exim Bank raises resources in the off-shore market in diverse currencies and swaps to mitigate the risk.
• The umbrella Agreement would serve as an enabler to enter into bilateral agreements with member banks subject to national laws, regulations and internal policies of the signatories.
• Cooperation Memorandum Relating to Credit Ratings:
• It would enable sharing of credit ratings amongst the BRICS member banks, based on the request received from another bank.
• This would be an ideal mechanism to mitigate the credit risks associated with cross-border financing.
• In future, such a mechanism could also serve as pre-cursor to the proposal of having an alternate rating agency by BRICS nations.

UN’s Global Compact on Migration

• The global compact for migration is the first, intergovernmental negotiated agreement, prepared under the auspices of the United Nations, to cover all dimensions of international migration in a holistic and comprehensive manner.
• In the New York Declaration for Refugees and Migrants, adopted in September 2016, the General
• Assembly decided to develop a global compact for safe, orderly and regular migration.
• The global compact is a significant opportunity to improve the governance on migration, to address the challenges associated with today’s migration, and to strengthen the contribution of migrants and migration to sustainable development.
• The global compact is framed consistent with target 10.7 of the 2030 Agenda for Sustainable
• Development in which member States committed to cooperate internationally to facilitate safe, orderly and regular migration.

BANGLADESH, BHUTAN, INDIA, NEPAL (BBIN) INITIATIVE

• It is the regional sub-grouping India had planned for ease of access among the four countries.
• The agreement will permit the member states to ply their vehicles in each other’s territory for transportation of cargo and passengers, including third-country transport and personal vehicles.

Members and Structure

• Bangladesh, Bhutan, India and Nepal are the members of BBIN initiative. These all are members of SAARC grouping as well.
• It was an alternative proposed by the government after Pakistan rejected the Motor Vehicle Agreement (MVA) at the SAARC summit in Kathmandu in 2014.
• Of the other SAARC members, Sri Lanka and the Maldives are not connected by land, and Afghanistan could only be connected if Pakistan was on board.

BANGLADESH–CHINA–INDIA–MYANMAR FORUM FOR REGIONAL COOPERATION (BCIM)

• BCIM is a sub-regional organisation of Asian nations aimed at greater integration of trade and investment between the four countries.
• The idea was given a shape in the form of BCIM forum in 1999 in the first ‘Kunming Initiative’, the capital of Chinese Yunnan province.
• The aim of the forum was to create a platform for discussion among the major stakeholders regarding issues concerning trade and growth in the region, strengthen cooperation and institutionalize the arrangements to deepen BCIM ties.
• On December 18, 2013, the four nations drew up a long-discussed plan, emphasising the need to quickly improve physical connectivity in the region, over two days of talks in the south-western Chinese city of Kunming— the provincial capital of Yunnan, which borders Myanmar.
• This marked the formal endorsement on the BCIM-EC by the four nations, whereby it was agreed that the corridor will run from Kunming to Kolkata, linking Mandalay in Myanmar as well as Dhaka and Chittagong in Bangladesh.
• The 2,800 square kilometer multi-modal corridor was to be the first expressway between India and China, passing through Bangladesh and Myanmar.

Members and Structure

• Bangladesh, China, India and Myanmar are the members of this grouping.

MEKONG-GANGA COOPERATION (MGC)

History

• The Mekong-Ganga Cooperation (MGC) is an initiative for cooperation in tourism, culture, education, as well as transport and communications.
• The proposal for the formation of the Mekong-Ganga Cooperation (MGC) was finalized by the foreign ministers of the six members at the sidelines of the ASEAN Ministerial Meeting (AMM) in Bangkok, Thailand, in July 2000.
• It was launched in 2000 at Vientiane, Lao PDR.
• Both the Ganga and the Mekong are civilizational rivers, and the MGC initiative aims to facilitate closer contacts among the people inhabiting these two major river basins.

Members and Structure

• The Mekong-Ganga Cooperation (MGC) is an initiative by six countries – India and five ASEAN countries, namely, Cambodia, Lao PDR, Myanmar, Thailand and Vietnam.
• The institutional structure of the MGC is yet to evolve properly.
• Ministerial Meetings would be held annually back-to-back with the AMMs.
• The chairmanship will be rotated in alphabetical order.
• The country which serves as chair shall act as the Secretariat to carry out coordination and implementation of the Cooperation plan.

 EAST ASIA SUMMIT

History

• The East Asia Summit is a unique Leaders-led forum of 18 countries of the Asia-Pacific region formed to further the objectives of regional peace, security and prosperity.
• It was established in 2005.
• India is a founding member of the East Asia Summit.
• Initially, 16 countries in the East Asian, Southeast Asian and South Asian regions were the members of the forum.
• The membership expanded to 18 countries including the United States and Russia at the Sixth EAS in 2011.
• EAS is seen by India as an alternative to the APEC, in which India doesn’t enjoy the membership.

Members and Structure

• All 10 ASEAN members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
• 6 Regional partners: China, Japan, South Korea, India, Australia and New Zealand.
• 2 Superpowers US, Russia (from 2011 onwards)

ASIA COOPERATION DIALOGUE

HISTORY

• The ACD is a continent-wide forum, the first of its kind in Asia.
• The Asia Cooperation Dialogue (ACD) was inaugurated in June 2002 in Cha-Am, Thailand.
• The ACD aims to constitute the missing link in Asia by incorporating every Asian country and building an Asian Community without duplicating other organizations or creating a bloc against others. India was among the founding members of the group.

HEADQUARTERS

The Provisional Secretariat was inaugurated in October 2013 with its Headquarter in Kuwait city, the State of Kuwait.

MEMBERS

• Currently, the ACD comprises 34 countries:
• Bahrain, Bangladesh, Brunei Darussalam, Bhutan, Cambodia, China, India, Indonesia, Iran, Japan, Kazakhstan, Republic of Korea, Kuwait, Kyrgyz Republic, Lao PDR, Malaysia, Mongolia, Myanmar, Pakistan, Philippines, Oman, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Tajikistan, Thailand, United Arab Emirates, Uzbekistan, Vietnam, Afghanistan, Turkey and is awaiting the accession of Nepal as the 34th Member on March 2016 at the 14th Ministerial Meeting in Bangkok, Thailand.

 NORTH AMERICAN FREE TRADE AGREEMENT

History

• The North American Free Trade Agreement is an agreement, creating a trilateral trade bloc in North America.
• NAFTA went into effect on January 1, 1994.
• This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1989.
• NAFTA does not create a set of super-national governmental bodies, nor does it create a body of law which is superior to national law, which was the case with EU.
• NAFTA is a treaty under international law.
• The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico.

Headquarters

• The NAFTA Secretariat is comprised of: the Canadian Section located in Ottawa; the Mexican Section located in Mexico City; and. the United States Section located in Washington, D.C.

Members and Structure: Canada, Mexico, the United States

Bunker Convention

• The convention was adopted in 2001 and came into force in 2008.
• Its aim is to ensure that adequate, prompt, and effective compensation is available to persons who suffer damage caused by spills of oil, when carried as fuel in ships’ bunkers.
• It applies to damage caused on the territory, including the territorial sea, and in exclusive economic zones of States Parties.
• It is modelled on the International Convention on Civil Liability for Oil Pollution Damage, 1969.
• Upon ratification, it applies to an Indian vessel, wherever it is situated, and to a foreign flag vessel while it is within Indian jurisdiction.
• 2015 – India ratified in 2015, the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (Bunker Convention) which ensures adequate, prompt and effective compensation for damage caused by oil spills.

Nuclear Weapons Ban Treaty

• The Treaty on the Prohibition of Nuclear Weapons was adopted recently in the United Nations
• It is the first multilateral legally-binding instrument for complete nuclear disarmament.
• Even the Non-Proliferation Treaty (NPT) of 1968 and nuclear-weapon-free zone contains only partial prohibitions.
• This treaty prohibits a full range of nuclear-weapon related activities, such as undertaking to develop, test, produce, manufacture, acquire, possess or stockpile nuclear weapons or other nuclear explosive devices.
• It also prohibits the use or threat of use of these weapons as well.
• 122 of the 124 nations that participated in the negotiations had voted in favour of the treaty.
• The treaty will enter into force 90 days after it has been ratified by at least 50 countries.
• The eight nuclear weapon states i.e US, Russia, Britain, China, France, India, Pakistan and North Korea along with Israel had not participated in the negotiations.
• India maintained that it recognises the „Geneva-based Conference on Disarmament‟-(CD) as the single multilateral disarmament negotiation forum & it is not convinced of the potential of the current treaty to address the disarmament issue.

New START Treaty

• New START (Strategic Arms Reduction Treaty) is a nuclear arms reduction treaty between the United States and the Russian Federation.
• The formal name of the treaty is Measures for the Further Reduction and Limitation of Strategic Offensive Arms.
• It was signed on 2010 in Prague and entered into force in 2011, it is expected to last at least until 2021.
• New START replaced the Treaty of Moscow (SORT).
• Under terms of the treaty, the number of strategic nuclear missile launchers will be reduced by half.
• A new inspection and verification regime will be established, replacing the SORT mechanism.
• It does not limit the number of operationally inactive stockpiled nuclear warheads that remain in the high thousands in both the Russian and American inventories

Budapest Convention

• It is the sole legally binding multilateral treaty that coordinates cybercrime investigations between nation-states and criminalises certain cybercrime conduct.
• The convention is led by Council of Europe, which is distinct from European Union.
• Both members and non-members of Council of Europe are parties to the convention.
• Totally 64 nations are party to this convention and 3 countries have signed but yet to ratify the convention.
• India, Russia and China are not members to this convention.

TIR Convention

• Transports Internationaux Routiers Convention is an international transit system under the auspices of the United Nations Economic Commission for Europe (UNECE).
• It came into force from 1975to facilitate the seamless movement of goods within and amongst the Parties to the Convention.
• It facilitates the international carriage of goods from one or more customs offices of departure to one or more customs offices of destination and through as many countries as necessary.
• India also ratified the convention.

 

 

 

 

 

 

 

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Amendments in the Indian Constitution

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13 April 2020 

First Amendment Act, 1951

• Empowered the state to make special provisions for the advancement of socially and economically backward classes.
• Provided for the saving of laws providing for the acquisition of estates, etc.
• Added Ninth Schedule to protect the land reforms and other laws included in it from the judicial review. After Article 31, Articles 31A and 31B were inserted.

The Constitution (Seventh Amendment) Act, 1956

• The Seventh Amendment brought about the most comprehensive changes so far in the Constitution. This amendment was designed to implement the State Reorganisation Act.
• The Second and Seventh schedules were substantially amended for the purpose of the States Reorganization Act.

Constitutional (10th Amendment) Act, 1961

• The Tenth Amendment integrates the areas of Free Dadra and Nagar Haveli with the Union of India and provides for their administration under the regulation of making powers of the President.

Constitutional (13th Amendment) Act,1963

• Gave the status of a state to Nagaland and made special provisions for it.

The Constitution (24th Amendment) Act, 1971

• It amended Article 13 and 368 with a view to removing all possible doubts regarding the power of Parliament to amend the Constitution and procedure thereof.
• It gets over the Golak Nath ruling and asserts the power of Parliament, denied to in the Golak Nath, to amend Fundamental Rights.

The Constitution (Twenty-fifth) Amendment Act, 1971

• The 25th amendment of the Constitution in 1971 added a new clause, Article 31C to the Constitution. Up to 1971, the position was that Fundamental Rights prevailed over the Directive Principles of State Policy and that a law enacted to implement a Directive Principle could not be valid if it conflicted with a Fundamental Right.
• Article 31C sought to change this relationship to some extent by conferring primacy on Articles 39(b) and 39(c) over Articles 14, 19 and 31.

Twenty-Sixth Amendment Act, 1971

• Abolished the privy purses and privileges of the former rulers of princely states.

The Constitution (Thirty-fourth Amendment) Act, 1974

• By this amendment twenty State Acts concerning land ceiling and land tenure reforms were added to the Ninth Schedule to the Constitution.

The Constitution (Thirty-eight Amendment) Act, 1975 

• Made the declaration of emergency by the President non-justiciable.
• Made the promulgation of ordinances by the President, governors and administrators of Union territories non-justiciable.
• Empowered the President to declare different proclamations of national emergency on different grounds simultaneously

The Constitution (42nd Amendment) Act, 1976

• The Amendment was meant to enhance enormously the strength of the Government. The major Amendments made in the Constitution by the 42nd Amendment Act are: Preamble The characterization of India as ‘Sovereign Democratic Republic’ has been changed to ‘Sovereign Socialist Secular Democratic Republic’.
• The words ‘Unity of the nation’ have been changed to ‘Unity and integrity of the nation’.
• Parliament and State Legislatures: The life of the Lok Sabha and State Legislative Assemblies was extended from 5 to 6 years.
• Executive: It amended Article 74 to State explicitly that the President shall act in accordance with the advice of the Council of Ministers in the discharge of his functions.
• Judiciary: The 42nd Amendment Act inserted Article 32A in order to deny the Supreme Court the power to consider the Constitutional validity of the State law. Another new provision, Article 131A, gave the Supreme Court an exclusive jurisdiction to determine question relating to the Constitutional validity of a central laws. Article 144A and Article 128A, the creatures
  of the Constitutional Amendment Act made further innovation in the area of judicial review of the Constitutionality of legislation. Under Article 144A, the minimum number of judges of the Supreme Court to decide a question of  Constitutional validity of a Central or State law was fixed as at least seven and further, this required two-thirds majority of the judges sitting declare law as unconstitutional. While the power  of the High Court to enforce Fundamental Rights remained untouched, several restrictions were imposed on its power to issue writs ‘for any other purpose’.
• Federalism: The Act added Article 257A in the Constitution to enable the Centre to deploy any armed force of the Union, or any other force under its control for dealing with any grave situation of law and order in any State.
• Fundamental Rights and Directive Principles: A major change that was made by42nd Constitutional Amendment was to give primacy to all Directive Principles over the Fundamental Rights contained in Articles 14, 19 or 31.
• The 42nd Constitutional Amendment added a few more Directive Principles – free legal aid, participations of workers in the management of industries, protection for environment and protection of forests and wildlife of the country.
• Fundamental Duties: The 42nd Amendment Act inserted Article 51-A to create a new part called IV-A in the Constitution, which prescribed the Fundamental Duties to the citizens.
• Emergency: Prior to the 42nd Amendment Act, the President could declare an emergency under Article 352 throughout the country and not in a part of the country alone. The Act authorized the President to proclaim emergency in any part of the country.

The Constitution (44th Amendment) Act, 1978

• It reduced the life of Lok Sabha and State Legislative Assemblies again to five years and thus restore the status quo ante.
• It cancelled 39th Amendment which had deprived the Supreme Court of its jurisdiction to decide disputes concerning election of the President and the Vice-President
• A new provision was added to Article 74(1) saying that the President could require the council of ministers to reconsider its advice to him, either generally or otherwise and the President should Act in accordance with the advice tendered after such re-consideration. Article 257A was Omitted
• It has been provided that an Emergency can be proclaimed only on the basis of written advice tendered to the President by the Cabinet.
• Right to Property has been taken out from the list of Fundamental Rights and has been declared a legal right.

The Constitution (Fifty-first Amendment) Act, 1984

• The Amendment effectuates some changes in Articles 330 and 332 with a view to provide for reservation of seats in the Lok Sabha for Scheduled Tribes in Meghalaya, Aruncahal Pradesh and Mizoram, as well as in the Legislative Assemblies of Nagaland and Meghalaya.

The Constitution (52nd Amendment) Act, 1985

• The amendment is designed to prevent the scourge of defection of Members of Parliament and State Legislatures from one political party to another.

 The Constitution (61st Amendment) Act, 1989

• The 61st Amendment reduces the voting age from 21 years to 18 years for the Lok Sabha and Assembly election.

The Constitution (Sixty-fifth Amendment) Act, 1990

• Article 338 of the Constitution has been amended for the Constitution of a National Commission for Scheduled Castes and Scheduled Tribes consisting of a chairperson, vice-chairperson and five other members who shall be appointed by the President by warrant under his hand and seal.

The Constitution (Sixty-ninth Amendment) Act, 1991

• The Amendment Act was to grant Statehood to Delhi as ‘National Capital Territory of Delhi’. It also provides a 70 member assembly and a 7 member Council of Ministers for Delhi.

 The Constitution (73rd Amendment) Act, 1992

• April 20,1993 as it got rectification by the State legislatures and was assented to by the President of India. After notification, the Panchayati Raj Institutions have now got Constitutional legitimacy.
• After part VIII of the Constitution, a separate part IX has been added to the Constitution with the addition in Article 243A and fresh Schedule called Eleventh Schedule enumerating the powers and functions of Panchayti Raj Institutions.
• The Act provides for Gram Sabha, a three-tier model of Panchayati Raj, reservation of seats for SCs and STs in proportion to their population and one-third reservation of seats for women.

The Constitution (74th Amendment) Act, 1992

• The Act provides constitutional status to Urban Local Bodies. After part VIII of the Constitution, a separate part IXA has been added to the Constitution with the addition in Article 243A and a fresh schedule called Twelfth schedule enumerating the powers and functions of urban local bodies has been incorporated.
• The Act provides Municipal Panchayat, Municipal Council and Municipal Corporation, reservation of seats for SCs and STs in proportion to their population and one-third reservation of seats for women

The Constitution (76th Amendment) Act, 1994

• This Amendment Act raises the reservation quota of government jobs and seats for admission in the educational institutions in favor of socially and educationally backward classes to 69 per cent in Tamil Nadu.
• Further, the Amendment Act has been included in the Ninth Schedule of the Constitution to exempt it from the purview of judicial scrutiny

The Constitution (Seventy-seventh Amendment) Act, 1995

• This Amendment has added a new clause (4-a) to Article 16 of the Constitution which empowers the State to make any provisions for reservation in promotions in Government jobs in favour of SCs and STs, if it is of opinion that they are inadequately represented in the services under the State.
• This has been done to nullify the effect of the Supreme Court Judgment in the Mandal Commission Case (Indra Sawhney vs. Union of India) in which the Court has held that reservation in promotions cannot be made.

The Constitution (80th Amendment) Act, 2000

• Based on the recommendations of the Tenth Finance Commission, an alternative scheme for sharing taxes between the Union and the State has been enacted by the Constitution (Eightieth Amendment) Act, 2000.
• Under the new scheme of devolution of revenue between Union and the States, 26 per cent out of gross proceeds of Union taxes and duties is to be assigned to the States in lieu of their existing share in the income-tax, excise duties special excise duties and grants in lieu of tax on railway passenger fares. 

The Constitution (85^th Amendment) Act, 2001

• This Act amended Article 16 (4A) of the Constitution to provide for consequential seniority in the case of promotion by virtue of rule of reservation for Government servants belonging to the Scheduled Castes and the Scheduled Tribes.

The Constitution (86^th Amendment) Act, 2002

• With a view to making right to free and compulsory education a fundamental right, the Act inserts a new Article, namely, Article 21A conferring on all children in the age group of 6 to 14 years the right to free and compulsory education.
• The Act amends in Part-III, Part –IV and Part-IV(A) of the Constitution.

The Constitution (89^th Amendment) Act, 2003

• The Act adds Article 338A and provides for the creation of National Commission for Scheduled Tribes.

 The Constitution (90^th Amendment) Act, 2003

• The Act amends Article 332 and adds section (6) regarding representation in the Bodo Territorial Areas District in the State of Assam.

The Constitution (Ninety-one Amendment) Act,2003

• The Act makes provisions for limiting the size of the Council of Ministers at the Center and in the States and gives teeth to debar a defector from holding any remunerative political post for the remaining tenure of the legislature unless reelected.

The Constitution (Ninety- third Amendment) Act, 2005

• Providing reservation for the socially and educationally backward classes, besides the Schedules Castes and the Scheduled Tribes, in private unaided educational institutions.

The Constitution (97th Amendment) Act, 2012

• In Part IIIof the constitution, after the words “or unions” the words “Cooperative Societies” was added.
• In Part IVa new Article 43Bwas inserted, which says: The state shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of the co-operative societies”.
• After Part IXAof the constitution, a Part IXBwas inserted to accommodate state vs centre roles.

The Constitution (99th Amendment) Act, 2014

• The National Judicial Appointments Commission (NJAC) was established by the Union government of India by amending the constitution of India through the 99^th Constitutional Amendment Act, 201

The Constitution (100th Amendment) Act, 2015

• Constitution (100th Amendment) Act 2015 ratified the land boundary agreement between India and Bangladesh.
• The act amended the 1st schedule of the constitution to exchange the disputed territories occupied by both the nations in accordance with the 1974 bilateral Land Boundary Agreement.
• India received 51 Bangladeshi enclaves (covering 7,110 acres) in the Indian mainland, while Bangladesh received 111 Indian enclaves (covering 17,160 acres) in the Bangladeshi mainland

The Constitution (101st Amendment) Act, 2017

• Introduced the Goods and Services Tax.

The Constitution (102nd Amendment) Act, 2018

• Constitutional status to National Commission for Backward Classes

The Constitution (103rd Amendment) Act, 2019

• A maximum of 10% Reservation for Economically Weaker Sections (EWSs) of citizens of classes other than the classes mentioned in clauses (4) and (5) of Article 15, i.e. Classes other than socially and educationally backward classes of citizens or the Scheduled Castes and the Scheduled Tribes.
• Inserted Clause [6] under Article 15 as well as Inserted Clause [6] under Article 16.

 

[WpProQuiz 420]

Mock tests are not just about evaluating your level of understanding and checking your knowledge. They are also about knowing the weaknesses in your approach to attempting a paper. 

A quality mock test will cover and highlight your shortcomings in all these areas. For that, it should be designed and curated in that way.

We at Civilsdaily understand the nuances and nitty-gritty of setting a paper. Through five cases explaining five questions, we’ll try to give you an idea about the relevance of the questions.

It will also give a rough idea about the mindset of UPSC paper setters. 

These questions have been taken from the first test of Nikaalo Prelims All India Open Mock Test 2020.  It is on Government schemes and policies.   

REGISTER (CLICK HERE) FOR THE ALL INDIA OPEN MOCK TEST (FREE)

(First test to go live on 12th April 2020 @ 9:30 a.m.)

CASE 1 – The oldest trick in the book. 

Deliberately changing names to confuse you.

Be it for schemes or concepts. UPSC is known to flip names of similar-sounding schemes and concepts. Look at this question. 

Ques. Which of the following are the result areas of  STRIVE

1. Improved performance of ITI.
2. Improved and Broadened Apprenticeship Training.
3. India International Skill Centers 

Select the  correct answer from the  codes given below:

a. 1 and 2 only

b. 2 and 3 only

c. 1 and 3 only

d. 1 only

Correct answer- 1 and 2 only

In the above question, STRIVE has been used for SANKALP.  Both of them were announced at the same time for boosting Skill India Mission. It is very easy to get confused and mark it wrong.

 

CASE 2: Misleading names

A lot of times especially in match the following type of questions misleading names are used. Take this example:

Ques. Consider the following pairs:

   Schemes                          Objectives

1. NIDHI: nurturing ideas and innovations into successful startups.
2. SATYAM: rejuvenate research in yoga and meditation.
3. MANAK: to help build a critical human resource pool for strengthening and increasing the research & development base.

Which of the pairs given above are correctly matched?

a. 1 and 2 only

b. 2 and 3 only

c. 1 and 2 only

d. 1, 2 and 3

Correct answer: 1, 2 and 3

Misleading yet important names of initiatives under Ministry of Science and Technology have been used here. All pairs are correctly matched here but it is very easy to get confused. 

 

CASE 3: Are you rooted in society?

UPSC has been playing with the expenditure figures and other such facts.

UPSC deliberately does this. It is done not for the shallow reason of checking your rote memory, but the ability to think in-depth about the issues faced by various sections. 

Ques. With reference to ‘Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) Scheme’, consider the following statements:

1. The scheme provides for the installation of grid-connected solar power plants each of capacity up to 2 MW in the rural areas.
2. The farmers will have to spend 50% of the total expenditure to acquire and install solar pumps.

Which of the statements given above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Correct answer: 1 only

A very important scheme. The farmers have to tolerate only 10% of the total expenditure to acquire and install solar pumps. The Central Govt. will provide 60% cost while the remaining 30% will be taken care of by bank as credit.

One must understand the inability of Indian farmers to spend 50% on solar pumps. This would have helped in eliminating options also.

 

CASE 4: Going international.

International collaboration and aid in our schemes and policies are relevant. If you ever read about them, know that the issue is of critical importance for the government and society.

Ques. With reference to Atal Bhujal Yojana, consider the following statements:

1. It is a Centrally Sponsored Scheme with funding pattern of 50:50 between Government of India and states.
2. This scheme is approved by the World Bank.

Which of the following statements given above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Correct answer: 2 only

Here the Government of India’s collaboration with World Bank makes it important. Half of the financial contribution is from the World Bank in this initiative.

Students must not ignore the contribution of international institutions especially if it is of such overwhelming nature.

 

CASE 5: Core of the core

You should be able to remember the bare minimum. There is no other way in such questions. You either know them or you don’t.

Ques. Which of the following are the components of the National Social Assistance Programme (NSAP)?

1. National Family Benefit Scheme (NFBS) 
2. Annapurna.
3. Indira Gandhi National Widow Pension Scheme (IGNWPS)

Select the correct answer from the codes given below:

a. 1 and 3

b. 2 and 3

c. 3 only

d. 1, 2, and 3

Correct answer: 1, 2 and 3

The National Social Assistance Programme (NSAP) which came into effect from 15th August 1995, represents a significant step towards the fulfilment of the Directive Principles in Article 41 of the Constitution.

It is a very important scheme under Ministry of Rural Development. Students are supposed to do flagship schemes of various ministries.

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Important Keywords Regarding Budgeting, Fiscal Policy, and Taxation – Part 2

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11 April 2020 

Fiscal Performance Index (FPI)

• The composite FPI developed by CII is an innovative tool using multiple indicators to examine the quality of Budgets at the Central and State levels.
• The index has been constructed using UNDP’s Human Development Index methodology which comprises six components for holistic assessment of the quality of government budgets, subsidies, pensions and defence in GDP
• Quality of capital expenditure: measured by the share of capital expenditure (other than defence) in GDP
• Quality of revenue: the ratio of net tax revenue to GDP (own tax revenue in case of States)
• Degree of fiscal prudence I: fiscal deficit to GDP
• Degree of fiscal prudence II: revenue deficit to GDP and
• Debt index: Change in debt and guarantees to GDP

Other measures of FPI

• As per the new index, expenditure on infrastructure, education, healthcare and other social sectors can be considered beneficial for economic growth.

Sabka Vishwas-Legacy Dispute Resolution Scheme

• This Scheme is introduced to resolve and settle legacy cases of the Central Excise and Service Tax.
• The proposed scheme would cover all the past disputes of taxes which may have got subsumed in GST; namely Central Excise, Service Tax and Cesses.
• The Government expects the Scheme to be availed by a large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST so they can focus on GST.
• The Scheme is, especially, tailored to free a large number of small taxpayers of their pending disputes with the tax administration.

Components of the Scheme

• The two main components of the Scheme are dispute resolution and amnesty.
• The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums.
• The amnesty component of the Scheme offers an oppor­tunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law.
• The most attractive aspect of the Scheme is that it provides substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine, penalty,
• In all these cases, there would be no other liability of interest, fine or penalty. There is also a complete amnesty from prosecution.

Direct Tax Code:

• The Direct Tax Code (DTC) is an attempt by the Govern­ment of India to simplify the direct tax laws in India.
• It will revise, consolidate and simplify the structure of direct tax laws in India into a single legislation.
• When implemented, it will replace the Income-tax Act, 1961 (ITA), and other direct tax legislation like the Wealth Tax Act, 1957.
• The task force was constituted by the government to frame draft legislation for this proposed DTC in November 2017 and review the existing Income Tax Act.

Direct Tax:

• These are the taxes, paid directly to the government by the taxpayer. Under the direct tax system, the incidence and impact of taxation fall on the same entity, which cannot be transferred to another person.
• It is termed as a progressive tax because the proportion of tax liability rises as an individual or entity’s income increases.
• Examples- Income tax, corporate tax, Dividend Distri­bution Tax, Capital Gain Tax, Security Transaction Tax.
• The system of Direct taxation is governed by the Cen­tral Board of Direct Taxes (CBDT). It is a part of the Department of Revenue in the Ministry of Finance.

Corporate Tax

• A corporate tax also popularly known as the company tax or the corporation tax is the tax levied on the capital or income of corporations or analogous legal entities.
• In most countries, such taxes are levied at the national level, and a tax that is similar to that imposed at the na­tional level could be imposed at the local or state levels.
• The taxes could also be termed as capital tax or income tax.
• Generally, Partnership firms are not taxed at the entity level.
• In most of the nations, the corporations functioning in a country are taxed for the income from that country.
• Many countries tax all income of corporations incorpo­rated in the country or those deemed to be resident for tax purposes in the country.
• The income of the company that is to be taxed is computed similarly to the taxable income for individuals.
• Tax is generally imposed on net profits.
• In India, companies, both private and public which are registered in India under the Companies Act 1956, are liable to pay corporate tax.

Securities transaction tax (STT)

• Sale of any asset (shares, property) results in loss or profit. Depending on the time the asset is held, such profits and losses are categorised as long-term or short-term capital gain/loss.
• In Budget 2004-05, the government abolished long-term capital gains tax on shares (tax on profits made on the sale of shares held for more than a year) and replaced it with STT.
• It is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid/received in a share transaction.

Banking cash transaction tax (BCTT)

• Introduced in Budget 2005-06, BCTT is a small tax on cash withdrawal from bank exceeding a particular amount in a single day.
• The basic idea is to curb the black economy and generate a record of big cash transactions

Cess

• This is an additional levy on the basic tax liability Governments resort to cess for meeting specific expenditure. For instance, both corporate and individual income is at present subject to an education cess of 2%.
• In the last Budget, the government had imposed another 1% cess – secondary and higher education cess on income tax – to finance secondary and higher education.

Countervailing Duties (CVD)

• Countervailing duty is a tax imposed on imports, over and above the basic import duty CVD is at par with the excise duty paid by the domestic manufacturers of similar goods
• This ensures a level playing field between imported goods and locally-produced ones.
• An exemption from CVD places the domestic industry at the disadvantage and over long run discourages investments in affected sectors.

Export Duty

• This is a tax levied on exports. In most instances, the object is not revenue, but to discourage exports of certain items.
• In the last Budget, for instance, the government imposed an export duty of Rs 300 per metric tonne on the export of iron ores and concentrates and Rs 2,000 per metric tonne on the export of chrome ores and concentrates.

Pass-through Status

• A pass-through status helps avoid double taxation. Mutual funds, for instance, enjoy pass-through status.
• The income earned by the funds is tax-free. Since mutual funds’ income is distributed to the unit-holders, who are in turn taxed on their income from such investments any taxation of mutual funds would amount to double taxation.
• Essentially, it means the income is merely passing through the mutual funds and, therefore, should not be taxed.
• The government allows venture funds in some sectors pass-through status to encourage investments in start-ups.

[WpProQuiz 419]

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important Temples/Monasteries/Stupa/Caves

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10 April 2020

1. Important Temples/Monasteries/Stupa/Caves- Click2view

2. Important Historical Sculptures- Click2view

Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

Important IR Terms in News

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9 April 2020

APC Network: Association for Progressive Communications comprises more than 20,000 subscribers to electronic listservers in 95 countries, and have recently been very much involved in agitating for global development and democratization of the United Nations

Balance of payments: The net flow of goods, services and financial transactions that takes into account outflows and inflows of money from a state

Balance of payments deficit: a state spends more than it receives from other countries

Balance of payments surplus: a state receives more than it spends in other countries

Balance of power: a condition in which the distribution of military and political forces among nations means no one state is sufficiently strong to dominate all the others. It may be global, regional or local in scope

Bargaining power: the general capacity of a state to control the behaviour of others, power to cause another actor to do an action (also see structural power)

Biodiversity: two kinds: species and genetic diversity, species diversity refers to the differences between species, while genetic diversity refers to differences within species

Brezhnev Doctrine: reinforced the right of the Soviets to intervene where Moscow deemed socialism was threatened by ‘counter-revolutionary forces’

Brundtland Commission Report: published 1987, commissioned 1983 with Gro Harlem Brundtland, Prime Minister of Norway, as commissioner, a mandate was to look into the alarming rate at which environmental resources were being consumed,  the levels of their waste, particularly in the case of development, at the ways in which developing countries were falling further and further behind the industrialized world in their standards of living, coined term ‘sustainable development’

Cold War: The period in world affairs from c.1947-1990, marked by ideological, economic and political hostility and competition between the US and the Soviet Union, and drawing in other powers at various levels of involvement

Common unit of exchange: a currency in which international economic exchanges are valued

Comparative advantage: Doctrine says that states should 1) produce and export whatever they can produce most efficiently relative to other states i.e., whatever they have a comparative advantage in; and they should 2) import those things they can’t produce as efficiently from states that can

Concert of Europe: the informal system of consultation set up by the Great Powers (Austria, Britain, France, Prussia and Russia) to manage the balance of power at the end of the Congress system

Conflict: perceived rival and incompatible claims over some desired “good”

Congress of Vienna: meeting of the four main victors over Napoleon and France: Austria, Britain, Prussia and Russia.

Containment: policy pursued by the US toward the Soviet Union c. 1947-1989, the aim of which was to deny Moscow opportunities to expand its political influence abroad, to draw a line and contain the Soviets within their borders, (also see Truman Doctrine )

CSCE: Conference on Security and Cooperation in Europe, from 1973-75 all European states (except Albania) plus the US and Canada met to discuss regional security (now the Organization on Security and Cooperation in Europe, and one of the central security organizations in Europe

D5: denuclearization, demilitarization, dealignment, democratization, and development, five main goals of peace and social movements

Defence strategy: involves the assumption that war will be fought with three aims in mind: 1. to punish the aggressor 2. to deny territorial gains 3. to limit the damage to oneself (also see deterrence)

Deterrence: efforts of an actor to dissuade the opponent from doing something considered against the actor’s interests by making the costs of action outweigh the benefits with the threat of punishment, the implicit or explicit purpose of this strategy was to avoid actually fighting the war (also see defence)

The Doctrine of Flexible Response: a nuclear utilization strategy which legitimized the notion of limited nuclear war, involved two dimensions: limited targetting (‘counterforce strategy’) and the use of battlefield nuclear weapons (also see MAD)

Dollar overhang: the amount of US dollars overseas exceeded US reserves of gold, undermining dollar convertibility to gold

Ethnic group: a group of people who define themselves as distinct from other groups because of cultural differences

Eurodollar markets: free market where buyers and sellers exchange currencies outside of their country of origin

Exchange rate: value at which one currency is traded for another

Fixed exchange rate: the rate of exchange of a currency or currency is set by agreement between governments or by government policy (see also gold standard)

Floating exchange rate: the rate of exchange of currencies is permitted to rise and fall with supply and demand on the international private market

Free trade: means the buying or selling of goods and services across international borders with few or no restrictions (see also protectionism)

Fungibility: the extent to which one form of power can be converted into another

GATT: General Agreement on Tariffs and Trade, drawn up in 1947 to codify the rules of conduct in trade for its members, in the GATT, states agreed to negotiate “reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade” and to increase free and fair trade

Glasnost: ‘openness’, a term introduced by Mikhail Gorbachev about his post-1985 opening of Soviet society to dissidents, public criticism and limited admission of past Soviet mistakes (also see perestroika)

Gold standard: the value of a currency is fixed relative to an amount of gold, can be converted to gold at a fixed rate (see also fixed exchange rates)

GSP: Generalized System of Preferences: early 1970’s nineteen advanced industrial states agreed to eliminate tariffs on manufactured and semi-manufactured goods exported by 140 LDCs unilaterally for ten years, renewed during 1980s for another decade (see UNCTAD, IPC)

Holy Roman Emperor: the supreme secular authority in Medieval Europe

Hugo Grotius (1583-1645): the ‘father’ of international law, a Dutch jurist, humanist and diplomat His great work ‘On the Law of War and Peace’ is widely regarded as a landmark in the development of international law

HYV’s: high-yielding varieties of agricultural plants, genetically designed to produce higher quantities of product with the aid of fertilizer, pesticides, and mechanized agricultural methods

ICBM’s: inter-continental ballistic missiles

IPC: Integrated Programme for Commodities, concerted attempt to control price fluctuations in commodities on which LDC’s depended for foreign exchange income (see UNCTAD, GSP)

LDC: Less Developed Country

MAD: Mutually Assured Destruction, a strategic doctrine which guarantees that each side in a nuclear exchange would survive a first strike by its opponent with enough arms intact to launch a second-strike sufficient to destroy the aggressor (also see Doctrine of Flexible Response)

massive retaliation: a nuclear strategy which calls for a nuclear response to any aggressive action

MFN: Most Favoured Nation: every member is treated as well as the “most favoured one”: ie: if U.S. offers low tariff to Canada on ice cubes: every other GATT member is entitled to the same treatment (see also free trade, GATT)

MIRV’S: multiple independently targetted re-entry vehicles (see also ICBM’S)

monetarism: a policy of manipulating the money supply (inflating or deflating a currency) to influence economic growth

monoculture: refers to the use of one genetic strain of plant or animal to replace a diversity of strains

Multiple-sum game: both actors can mutually gain (also see zero sum game)

Natural law: the idea there existed rights and duties attached to human beings as such that existed in all times and all places, that could be discovered by reason, and that should be applied in the relations between groups

Negative peace: the absence of war and physical (direct) violence (also see positive peace)

Netwar: the primary objective of “netwar” is to use computer networks and databases to inflict cultural and political damage to the international image of the opponent.

News values: the criteria for determining what kinds of stories are reported; used to identify, define and present a story

NIEO: United Nations Resolution of May 1974 for a New International Economic Order to address concerns of LDC’s

Non-Aligned Movement: loose organization of Third World countries which dealt with statements on a wide variety of issues from nuclear proliferation to trade and development, first meeting: Bandung, Indonesia, 1955, led by a few relatively strong, independent personalities: Tito, Nehru, and Nasser (Yugoslavia, India, Egypt) (see also UNCTAD, NIEO)

Non-governmental organization (NGO): any private organization involved in activities that have transnational implications
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Nuclear fusion: relies on forcing two hydrogen atoms together, and in the process destroying some extra matter that is converted into energy (called H-bomb)

NWIO: New World Information and Communication Order, begun in the 1970s around the same time as the Group of 77 launched its drive for a NIEO, called for a more balanced flow of communications globally, development of communication infrastructure in LDC’s, control or elimination of information monopolies, and respect for each people’s cultural identity

OECD: Organization for Economic Cooperation and Development, organization of 29 industrialized countries

OPEC: Organization of Petroleum Exporting Companies: A cartel of oil producers formed to control the price and supply of oil on world markets

Perestroika: ‘restructuring’, a term used by Mikhail Gorbachev to describe his plans to reform, modernize and partly decentralize the Soviet economy (also see glasnost)

Positive peace: the absence of structural violence as well as direct violence (see also negative peace)

Protectionism: protecting your economy from the international economy by imposing various restrictions on the flow of imports or exports of goods or services into or out of your country (see also free trade)

Reserve currency: a currency that countries hold in reserve because of its strength and stability

Security dilemma: a situation in which states’ actions taken to assure their own security, tend to threaten the security of other states

Self-help: necessity to rely on a the states’ own resources and capabilities

SLBM’s: submarine-launched ballistic missiles

specie money: solid money (gold or silver, traditionally)

spheres of influence: an area declared by a Great Power to be its exclusive area of interest, where it acts to defend its dominance and to exclude other Great Powers.

SOP’s: standard operating procedures

Sovereignty: means a government has the right, at least in principle, to do whatever it liks in its own territory (also see state)

Structural power: the power to change the rules of the game for others, the power to structure the choices of other actors

Structural violence: latent or hidden forms of social conflict

Stockholm Conference: UN Conference on the Human Environment, held 1972, was first worldwide environmental conference in history

Sustainable development: term coined by Brundtland Commission Report 1987, defined as development which can “ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs”

Terms of trade: the ratio in prices between a country’s exports and its imports

Truman Doctrine: a promise of US aid to all ‘free peoples who are resisting attempted subjugation by armed minorities or by outside powers” (also see Brezhnev Doctrine)

UNCED: United Nations Conference on Environment and Development, also known as the Earth Summit, held in Rio 1992. Effort by the int. Community to reach consensus on principles and a long-term workplan for global sustainable development, major output was Agenda 21 (referring to the Twenty-First Century), a global plan of action containing 294 pages encompassing every sectoral environmental issues as well as international policies affecting both environment and development and the full range of domestic social and economic policies.

UNCTAD: United Nations Conference on Trade and Development: formed 1964: First Secretary General Raul Prebisch: called for reform of the system of international trade based on liberalism and comparative advantage, in order to assist the development of poor countries, included calls for a GSP and IPC (see also NIEO)

War: legitimate use of organized violence or force to achieve “goods” (also see conflict)

zero-sum game: one actors’ gain is another’s loss

[WpProQuiz 417]