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  • Law to deal with pandemics

    India lacks specific legislation to deal with pandemics like COVID. While NDMA 2005 and Epidemic Diseases Act 1897 has been invoked to deal with the present situation, both acts lack specific provision in dealing with the pandemics. Here we can take lessons from UK’s Coronavirus Act and Singapore’s regulations to create a well-drafted Indian COVID 19 law.

    Which acts were used for enforcing lockdown?

    • The home ministry issued directions to State governments and district authorities under the Disaster Management Act of 2005.
    • Under the Act, the National Disaster Management Authority (NDMA) was set up under the Prime Minister, and the National Executive Committee (NEC) was chaired by the Home Secretary.
    • The State governments and authorities exercised powers under the Epidemic Diseases Act of 1897 to issue further directions.
    • District authorities such as the Commissioner of Police have consequently issued orders to impose Section 144 of the Criminal Procedure Code in public places.

    Issues with the laws used for lockdown

    • The invoking of the Disaster Management Act has allowed the Union government to communicate seamlessly with the States.
    • But serious questions remain whether the Act was originally intended to or is sufficiently capable of addressing the threat of a pandemic.
    • The use of the archaic Epidemic Diseases Act reveals the lack of requisite diligence and responsiveness of government authorities in providing novel and innovative policy solutions to address a 21st-century problem.
    • Another serious problem is that any violation of the orders passed would be prosecutable under Section 188 of the Indian Penal Code.
    • But section 188 of IPC is a very ineffective and broad provision dealing with disobedience of an order issued by a public servant.

    The UK and Singapore’s laws to deal with the pandemic

    • U.K’s Coronavirus Act, 2020: It deals with issues including emergency registration of healthcare professionals, temporary closure of educational institutions, audio-visual facilities for criminal proceedings, powers to restrict gatherings, and financial assistance to industry.
    • Singapore’s Infectious Diseases Regulations, 2020: These regulations provides for the issuance of stay orders which can send ‘at-risk individuals’ to a government-specified accommodation facility.
    • Both U.K.’s and Singapore’s laws set out unambiguous conditions and legally binding obligations.
    • As such, under Singaporean law, the violators may be penalised up to $10,000 or face six months imprisonment or both.
    • In contrast, Section 188 of the Indian Penal Code has a fine amount of ₹200 to ₹1,000 or imprisonment of one to six months.
    • Even then, proceedings under Section 188 can only be initiated by private complaint and not through a First Information Report.
    • As such, offences arising out of these guidelines and orders have a weak basis in terms of criminal jurisdiction thereby weakening the objectives of the lockdown.

    Problems in the government’s approach

    • The Union government showed no inclination towards drafting or enacting COVID-19-specific legislation that could address all the issues pre-emptively.
    • There has been little clarity on a road map to economic recovery.
    • A consolidated, pro-active policy approach is absent.
    • In fact, there has been ad hoc and reactive rule-making, as seen in the way migrant workers have been treated.
    • This has also exposed the lack of coordination between the Union and State governments.

    Consider the question, “Unlike many countries which legislated specific acts to deal with Covid-19 pandemic, India was already equipped with acts which enabled it to deal with the pandemic. Describe the acts and their provisions used to deal with the pandemic. What were the issues  with these provisions?”

    Conclusion

    In past instances, the Union government has not shied away from promulgating ordinances. These circumstances call out for legislative leadership, to assist and empower States to overcome COVID-19 and to revive their economic, education and public health sectors.

    Back2Basics: National Disaster Management Act 2005

    • On 23 December 2005, the Government of India enacted the Disaster Management Act.
    • The act envisaged the creation of the National Disaster Management Authority (NDMA), headed by the Prime Minister.
    • The act also provides for State Disaster Management Authorities (SDMAs) headed by respective Chief Ministers.
    • NDMA and SDMAs spearhead and implement a holistic and integrated approach to Disaster Management in India.
    • The NDMA was formally constituted on 27thSeptember 2006, in accordance with the Disaster Management Act, 2005 with Prime Minister as its Chairperson and nine other members, and one such member to be designated as Vice-Chairperson.
    • According to the Disaster Management Act, 2005 a disaster is defined as-
    • A catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or manmade causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area.
    • The MHA has defined a disaster as an “extreme disruption of the functioning of a society that causes widespread human, material, or environmental losses that exceed the ability of the affected society to cope with its own resources.

    Epidemic Diseases Act  1897

    • The Epidemic Diseases Act is routinely enforced across the country for dealing with outbreaks of diseases such as swine flu, dengue, and cholera.
    • The colonial government introduced the Act to tackle the epidemic of bubonic plague that had spread in the erstwhile Bombay Presidency in the 1890s.
    • Using powers conferred by the Act, colonies authorities would search suspected plague cases in homes and among passengers, with forcible segregations, evacuations, and demolitions of infected places.
    • Historians have criticised the Act for its potential for abuse.
    • In 1897, the year the law was enforced, Lokmanya Tilak was punished with 18 months’ rigorous imprisonment after his newspapers Kesari and Mahratta admonished imperial authorities for their handling of the plague epidemic.

    Provisions of the 1897 Epidemic Diseases Act

    • The Act is one of the shortest Acts in India, comprising just four sections. It aims to provide for the better prevention of the spread of Dangerous Epidemic Diseases.
    • The then Governor-General of colonial India had conferred special powers upon the local authorities to implement the measures necessary for the control of epidemics.
    • Although, the act does define or give a description of a “dangerous epidemic disease”.

    Its various sections can be summarized as under

    • The first section describes all the title and extent, the second part explains all the special powers given to the state government and centre to take special measures and regulations to contain the spread of disease.
    • The second section has a special subsection 2A empowers the central government to take steps to prevent the spread of an epidemic, especially allowing the government to inspect any ship arriving or leaving any post and the power to detain any person intending to sail or arriving in the country.
    • The third section describes the penalties for violating the regulations in accordance with Section 188 of the IPC. Section 3 states, “Six months’ imprisonment or 1,000 rupees fine or both could be charged out to the person who disobeys this Act.”
    • The fourth and the last section deals with legal protection to implementing officers acting under the Act.

  • Transforming the Military

    The COVID blaze caused economic disruption and now even the military is feeling the heat. The military is grappling with multiple issues like freezing of fresh capital acquisition and delay in procurement. But this could also be considered as an opportunity to transform the Indian military. 4 areas where this transformation could start are discussed in this article. Read to know more.

    The difference in approaches to security

    • Pakistan’s approach: Pakistan stagnates in an existential-threat-based and India-centric approach to national security.
    • What is China’s approach? China’s expansive global strategy and unbridled capability-based development surge have overcome the dangers of direct competition with the US.
    • It has closed the gap through an “indirect approach to international security”.
    • This indirect approach looks at building on strengths in areas such as cyberspace, non-contact warfare, economic and diplomatic coercion.

    So, what should be India’s approach to security?

    • Strategic guidelines for India’s must shift from a threat-based methodology to a multi-disciplinary capability.
    • An outcome-based orientation to fit with the nation’s power aspirations.

    4 most critical means to kick-start the transformation:

    1. Creation of indigenous defence capability

    • Doing this without brushing away the short and medium-term requirement of selective imports will be the key to a calibrated march to self-sufficiency.

    2. Leadership

    • India’s military leadership is very hierarchical and sequential in its approach.
    • However, this same leadership has superb operational skills and possesses a quick understanding of technology, tactics, techniques and procedures.
    • Consequently, strategic leaders need to be identified and their transition towards becoming more than mere executors of operational plans and campaigns needs to be enabled.
    • Multi-disciplinary thinking, lateral assimilation and a world-view are among the specific skill-sets that need to be nurtured.

    3. Training and Education

    • Training and education form the next two silos in the process of transformation.
    • The US example: Several military officers at the colonel level — fresh out of war colleges and the university environment where they spend a year of education (not training) — are posted at the Pentagon and NATO HQ.
    • Here, they work alongside civilians, politicians, lawmakers, not forgetting their own joint leadership.
    • In such an environment, it is not difficult to mark, train and recognise talent in ways that go beyond the mere rank structure.
    • It is high time India goes down that road because even though economic globalisation may be on hold for a while post-COVID-19, there is going to be a flattening of the world from a security perspective.
    • There will be common threats that would need to be fought jointly by nations.
    • The three pre-requisites in these silos will be an amalgam of 1)service-centric and joint operations expertise, 2) operational acumen in a global environment, and 3) broad-based education that develops intellectual capital.
    • Training in the Indian military is top-notch and needs a little tweaking to help officers and men understand the rules of engagement in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world.
    • It is diversified education at all levels of leadership that is a weak area.

    4. Jointness and integration

    • Finally, the silo of jointness and integration without losing identities and compromising competencies is an outcome that needs to be chased down with focus and determination.

    Consider the question based on the issues discussed in the article “Strategic guidelines for India’s security managers must shift from a threat-based methodology to a multi-disciplinary capability and outcome-based orientation to fit with the nation’s power aspirations. Based on some expert committee reports, discuss the ways which the Indian military follow to achieve the transformation to satisfy the nation’s power aspirations.”

    Conclusion

    Some difficulties caused to the military due to COVID pandemic should be considered as an opportunity. It should be an opportunity to evolve a transformational culture in the Indian military. This should be based on clear political guidelines driven by existing and futuristic capabilities, expected strategic outcomes and anticipated strategic challenges.

     

  • Attack on Pearl Harbor (1941)

    US President Mr Trump has said the COVID-19 pandemic is a worse “attack” on the U.S. than either Pearl Harbor or 9/11.

    Practice Question :

    Discuss how the world order changed post Pearl Harbour attack with context to the US hegemony in Asia-Pacific.

    Attack on Pearl Harbor

    • The December 7, 1941 attack on Pearl Harbour was among the most significant moments of the World War II.
    • It signalled the official entry of the US into the hostilities, which eventually led to the dropping of nuclear bombs on the Japanese cities of Hiroshima and Nagasaki in 1945.
    • Significantly, in December 2016, Shinzo Abe became the first sitting Japanese Prime Minister to visit Pearl Harbour.

    What led up to the attack on Pearl Harbour?

    • Before Japan attacked Pearl Harbour in 1941, relations between the US and Japan were already worsening.
    • In 1910, Japan annexed Korea and, in 1937, it invaded China, sending alarm bells ringing in the US and other Western powers about Japan’s manifest expansionist agenda.
    • Between December 1937 and January 1938, an episode which is referred to as the “Nanking Massacre” or the “Rape of Nanking”, occurred — Japanese soldiers killed and raped Chinese civilians and combatants.
    • Japanese historians estimate that anywhere between tens of thousands and 200,000 Chinese were killed.
    • The US was against Japan’s aggression in China, and imposed economic sanctions and trade embargoes after its invasion.

    Immediate causes

    • Japan was reliant on imports for oil and other natural resources — this was one of the reasons why it invaded China and later French Indo-China (present-day Vietnam, Laos and Cambodia).
    • The intention was to take control of the major Chinese ports to have access to resources such as iron, rubber, tin, and most importantly, oil.
    • In July 1941, the US ceased exporting oil to Japan.
    • Negotiations between the two countries ended with the “Hull Note”, the final proposal delivered to Japan by the US. Essentially, the US wanted Japan to withdraw from China without any conditions.
    • Ultimately, the negotiations did not lead to any concrete results, following which Japan set its task for Pearl Harbour in the last week of November 1941.
    • Japan considered the attack to be a preventive measure against the US interfering with Japan’s plans to carry out military operations in some parts of Southeast Asia.

    What happened at Pearl Harbour?

    • About 7.55 am on December 7, 1941, about 180 aircraft of the Imperial Japanese Navy attacked the US Naval base at Pearl Harbour on the island of Oahu in Hawaii.
    • The bombing killed over 2,300 Americans and destroyed the battleships USS Arizona and USS Oklahoma.
    • Roughly 160 aircraft were destroyed, and 150 were damaged.

    Impact on the US

    • In the short term, the American naval presence in the Pacific was severely weakened.
    • However, the Japanese had largely ignored the harbour’s infrastructure, and many of the damaged ships were repaired on-site and returned to duty.
    • American opinion immediately shifted to favouring war with Japan, a course that would conclude with Japan’s unconditional surrender less than four years later.

  • Vizag Gas Leak: What is Styrene Gas?

    A gas leak has claimed at least 11 lives and affected thousands of residents in five villages in Visakhapatnam in Andhra Pradesh.  The source of the leak was a styrene plant owned by South Korean electronics giant LG.

    Practice question:

    Despite a robust policy framework governing the hazardous chemicals in India, the recent gas leakage incident in Vizag highlights India’s unaddressed vulnerability to chemical disasters. Criticallly comment.

    Vizag gas lead: What is styrene?

    • It is a flammable liquid that is used in the manufacturing of polystyrene plastics, fibreglass, rubber, and latex.
    • Styrene is also found in vehicle exhaust, cigarette smoke, and in natural foods like fruits and vegetables.
    • According to The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989, styrene is classified as a toxic and hazardous chemical.

    What happens when exposed to styrene?

    • A short-term exposure to the substance can result in respiratory problems, irritation in the eyes, irritation in the mucous membrane, and gastrointestinal issues.
    • And long-term exposure could drastically affect the central nervous system and lead to other related problems like peripheral neuropathy.
    • It is, likely, a carcinogenic substance that can react with oxygen in the air to mutate into styrene dioxide, a substance that is more lethal.
    • However, there is no sufficient evidence despite several epidemiology studies indicating there may be an association between styrene exposure and an increased risk of leukaemia and lymphoma.

    What are the symptoms?

    • Symptoms include headache, hearing loss, fatigue, weakness, difficulty in concentrating etc.
    • Animal studies have reported effects on the nervous system, liver, kidney, and eye and nasal irritation from inhalation exposure to styrene.

    How bad is the situation in Visakhapatnam?

    • It is yet unclear whether the deaths are due to direct exposure to styrene gas or one of its byproducts.
    • However, hundreds of people including many children were admitted to hospitals.
    • The cases are high as the gas leak was only detected at 3 am in the morning, meaning several crucial hours have been lost till safety precautions were taken.
    • More fatally, the gas was leaked while people were fast asleep.

    What caused the leak?

    • Styrene monomer was used at the manufacturing plant to produce expandable plastics.
    • The storage requirement of styrene monomer strictly mentions that it has to be below 17 degrees Celsius.
    • There was a temporary and partial shutdown of the plant because of the nationwide lockdown.
    • The leak occurred as a result of styrene gas not being kept at the appropriate temperature.
    • This caused a pressure build-up in the storage chamber that contained styrene and caused the valve to break, resulting in the gas leakage.

    Is it under control?

    • The leak has been plugged and NDRF teams moved into the five affected villages and have started opening the houses to find out if anyone was stranded inside.
    • The Covid-19 preparedness helped a lot as dozens of ambulances with oxygen cylinders and ventilators were readily available.
    • The spread of the gas depends on wind speeds. So far it is estimated that areas within a five-kilometre radius have been affected.

    What are the guidelines on the storage of hazardous chemicals in plants?

    After the Bhopal disaster, much legislation was enacted starting from the Environment (Protection) Act, 1986 to the Public Liability Insurance Act, 1991. They are-

    Environment (Protection) Act, 1986 Omnibus act, which gives sweeping powers to Central government to take all measures to protect the environment
    Environment (Protection) Rules, 1986 Set discharge and product standards – source standards for restricting pollution; product standards for manufactured goods and ambient air and water standards – for regulating quality of life and environmental protection
    Hazardous Waste (Management Handling and Transboundary Movement) Rules, 1989 Industry required to identify major accident hazards, take preventive measures and submit a report to the designated authorities
    Manufacture, Storage And Import Of Hazardous Chemicals Rules, 1989 Importer must furnish complete product safety information to the competent authority and must transport imported chemicals in accordance with the amended rules.
    Chemical Accidents (Emergency, Planning, Preparedness and Response) Rules, 1996 Centre is required to constitute a central crisis group for management of chemical accidents; set up quick response mechanism termed as the crisis alert system. Each state is required to set up a crisis group and report on its work.
    Factories Amendment Act, 1987 Provision to regulate siting of hazardous units; safety of workers and nearby residents and mandates for on-site emergency plans and disaster control measures
    Public Liability Insurance Act, 1991 Imposes a no-fault liability on the owner of hazardous substance and requires the owner to compensate victims of accident irrespective of any neglect or default. For this, the owner is required to take out an insurance policy covering potential liability from any accident.

     

  • [pib] Seasonal rapid advancement of Surging Glaciers in Karakoram Range

    Indian researchers have found a seasonal advancement in 220 surge-type glaciers in the Karakoram Range of Ladakh.

    Points to note:

    1) Open you map and revise the glaciers of Himalayan region.

    2) Glacial landforms as Geographic phenomenon.

    What are Glacial Surges?

    Click here to see the animated view

    • Glacial surges are short-lived events where a glacier can advance substantially, moving at velocities up to 100 times faster than normal.
    • Until recently, most glaciologists believed that a glacier’s physical characteristics, such as its thickness and shape, and the properties of the terrain it sits on determining whether it can surge.
    • Now, it is proved to believe an external factor also plays a major role: water from precipitation and melting.
    • Pooling on the surface, it can infiltrate the glacier through crevasses and reach its base, warming, lubricating, and, ultimately, releasing the ice.

    Why surging in the Karakoram is a concern?

    • The behaviour of these glaciers, which represent 40% of the total glaciated area of the Karakoram, goes against the normal trend.
    • Surging of glaciers is potentially catastrophic as it can lead to the destruction of villages, roads and bridges.
    • It can also advance across a river valley and form the ice-dammed lake.
    • These lakes can form catastrophic outburst floods.
    • Therefore, monitoring of glacier surges, ice-dammed lake formation, and drainage is of paramount importance.

    Which are these glaciers?

    • The scientists focused on the Shispare and Muchuhar glaciers, former tributaries of the once larger Hasanabad Glacier situated in Hunza Valley, Gilgit-Baltistan.

    Significance of the study

    • The Surge-type glaciers oscillate between brief (months to years) rapid flow and lengthy (tens to hundreds of years) slow flow or stagnation, which are called the ‘active’ (or ‘surge’) and ‘quiescent’ phases, respectively.
    • This unsteady glacier flow makes it difficult to accurately assess individual glacier mass balances using in-situ observations.
    • The study will help to understand the diversity of glacial behaviour and help make accurate assessments of individual glacier mass balances for disaster planning and management.

  • Is the perpetual bond a suitable option to raise money?

    The government is exploring ways to raise money to deal with the destruction caused by COVID pandemic. One of the suggestion is the monetisation of fiscal deficit. But this article looks into an alternative approach of issuing bonds based on the idea of Consol bond issued by the British government during WW 2. So, how much amount needs to be raised? and why a perpetual bond like Consol bond is a suitable option for India? Read to know!

    A gathering financial storm

    • India projected a deficit of ₹7.96-lakh crore in the Budget before the pandemic.
    • Adding to the above concern: 1) Off-balance sheet borrowings of 1% of GDP. 2) The overly excessive target of ₹2.1 lakh crore through disinvestments.
    • Thus, financial deficit number is set to grow by a wide margin owing to corona crisis.
    • There will be revenue shrinkage from the coming depression that will most certainly be accompanied by a lack of appetite for disinvestment.

    Need for stimulus package and measures taken by the RBI

    • In addition to the expenditure that was planned, the government has to spend anywhere between ₹5-lakh crore and ₹6-lakh crore as a stimulus package.
    • The stimulus provided by the government so far and recent announcements by the Reserve Bank of India (RBI) achieved little.
    • All the RBI’s schemes are contingent on the availability of risk capital, the market for which has completely collapsed.
    • The government and the RBI have tried several times to increase lending to below investment grade micro, small and medium enterprises, but have come up short each time.
    • Furthermore, while the 60% increase in ways and means limits for States is a welcome move, many States have already asked for doubling the limits due to the shortages in indirect taxation collections from Goods and Services Tax, fuel and liquor.
    • The government and the central bank need to understand that half measures will do more harm than good.

    What is the Consol Bond?

    • Consol bond is a form of British government bond that has no maturity and that pays a fixed coupon.
    • Consols are basically rare examples of actual perpetual bonds.
    • The bonds were issued in 1917 as the government sought to raise more money to finance the ongoing cost of the First World War.

    So, why bond like Consol Bonds is a good option for India?

    • There is no denying the fact that the traditional option of monetising the deficit by having the central bank buy government bonds is one worth pursuing.
    • Citizens’ active participation is ensured in Consol Bond type alternative.
    • Furthermore, with the fall of real estate and given the lack of safe havens outside of gold, the bond would offer a dual benefit as a risk-free investment for retail investors.
    • When instrumented, it would be issued by the central government on a perpetual basis with a right to call it back when it seems fit.
    • An attractive coupon rate for the bond or tax rebates could also be an incentive for investors.
    • The government can consider a phased redemption of these bonds after the economy is put back on a path of high growth.

    The solution of bond offered here could be a valuable addition in points to the answer to the question which asks about the ways to raise money. Consider the question, “Economic devastation caused by the COVID pandemic has forced the government to explore the various ways to raise the money. Discuss the options available with the government and issues associated with the options.”

    Conclusion

    Politicians and epidemiologists across the world have used the word “war” to describe the situation the world is currently in. So, to raise the money to fight this war against Covid-19, we can take the cue from past and issue bond based on the Consol bond.

    Back2Basics: What is fiscal deficit?

    • A fiscal deficit is a shortfall in a government’s income compared with its spending.
    • The government that has a fiscal deficit is spending beyond its means.
    • A fiscal deficit is calculated as a percentage of gross domestic product (GDP).
    • There can be different types of deficit in a budget depending upon the types of receipts and expenditure we take into consideration. Accordingly, there are three concepts of the deficit, namely-
    • Revenue deficit = Total revenue expenditure – Total revenue receipts.
    • Fiscal deficit = Total expenditure – Total receipts excluding borrowings.
    • Primary deficit = Fiscal deficit-Interest payments.
    • Primary deficit shows how much government borrowing is going to meet expenses other than interest payments.
    • Thus, zero primary deficits mean that the government has to resort to borrowing only to make interest payments.
    • To know the amount of borrowing on account of current expenditure over revenue, we need to calculate the primary deficit.
    • Thus, the primary deficit is equal to fiscal deficit less interest payments.

    Perpetual Bonds

    • A perpetual bond, also known as a “consol bond” or “prep,” is fixed income security with no maturity date.
    • This type of bond is often considered a type of equity, rather than debt. One major drawback to these types of bonds is that they are not redeemable.
    • However, the major benefit of them is that they pay a steady stream of interest payments forever.
    • Perpetual bonds exist within a small niche of the bond market.
    • This is mainly due to the fact that there are very few entities that are safe enough for investors to invest in a bond where the principal will never be repaid.
    • AT-1 bonds which were recently in news due to YES bank failure is an example of a perpetual bond.

     

  • Co-operative banks can use SARFAESI Act to recover dues: Supreme Court

    A five-judge Constitution Bench of the Supreme Court (SC) has ruled that all co-operative banks in the country could make use of the SARFAESI Act to make recovery against defaulting persons.

    Possible mains question:

    What is the SARFAESI Act, 2002? Discuss its various provisions and efficacy to curb Non-Performing Assets (NPAs)?

    What is Sarfaesi Act, 2002?

    • Sarfaesi is an acronym for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest.
    • It allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.
    • The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.
    • Under this act secured creditors (banks or financial institutions) have rights for enforcement of security interest under section 13 of SARFAESI Act, 2002.

    Provisions of the Act

    • If the borrower of financial assistance makes any default in repayment of a loan or any instalment and his account is classified as NPA by secured creditor, then secured creditor may require before the expiry of a period of limitation by written notice.
    • The act does not apply to unsecured loans, loans below ₹100,000 or where remaining debt is below 20% of the original principal.
    • This law allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARC’s (which are regulated by the RBI).
    • Banks are allowed to take possession of the collateral property and sell it without the permission of a court.

    To summarize, the SARFAESI Act empowers financial institutions to ‘seize and desist’. They should give a notice to the defaulting borrower asking to repay the amount within 60 days.

    If the debtor doesn’t comply, the bank can resort to one of the three following measures:

    1) Take possession of loan security

    2) Sell or lease or assign the right over the security

    3) Manage the asset or appoint someone to manage the same

    Ambit of the Act

    • The recent judgment said that the SARFAESI Act qualifies the test of legislative competence, as well as the definition, cannot be said to be beyond the competence of the Parliament.
    • In 2013, the Gujarat High Court had, while hearing a challenge to the amendment of Banking Regulation Act of 1949, to include cooperative societies as financial institutions, ruled it null and void.
    • The high court had then agreed with the submissions of the petitioners who had argued that Sarfaesi would not be applicable to cooperative banks formed under the state law.
    • The Delhi High Court had, on the other hand, ruled that the cooperative banks and societies were for all purposes banks and financial institutions and thus were allowed to use Sarfaesi to make recoveries against defaulters.
    • In its judgment, the apex court held that all such cooperative banks involved in the activities related to banking are covered within the meaning of ‘banking company’.

  • Taiwan makes new push for inclusion in World Health Assembly

    Following its successful containment of coronavirus outbreak, Taiwan has made a new push for inclusion in the World Health Assembly (WHA).

    Locate the seas and straits around Taiwan using your Atlas.

    What is World Health Assembly (WHA)?

    • The WHA, composed of representatives from all 194 member states, serves as the WHO’s supreme decision-making body.
    • The WHA convenes annually and is responsible for selecting the Director-General, setting goals and priorities, and approving the WHO’s budget and activities.
    • The first meeting of the WHA the WHO’s agency’s governing body, took place on 24 July 1948.
    • Its work began in earnest in 1951 following a significant infusion of financial and technical resources.

    Why Taiwan must be included in WHA?

    • Taiwan has been praised over its handling of the pandemic, despite being just a short flight from China where the virus was first detected late last year.
    • Taiwan since then has been in a state of constant readiness to the threat of emerging infectious disease.
    • Hence, its exclusion from the upcoming World Health Assembly would harm the global response to the coronavirus pandemic.

    Issues with Taiwan’s inclusion

    • Taiwan is claimed as part of Chinese territory by Beijing, which has excluded it from the United Nations and its subsidiary organisations.
    • China’s growing influence in the U.N. has made officials wary of crossing it, even while the U.S. has withdrawn from or suspended funding for some of its bodies, including WHO.
    • Beijing’s Communist leadership has increasingly shut Taiwan out of gatherings such as the World Health Assembly as part of a diplomatic and military drive to force Taiwan’s independence-leaning tendencies.

    Also read:

    [Burning Issue] World Health Organization (WHO) And Coronavirus Handling

  • Pathways to design a resilient economy

    The pandemic of COVID is a watershed moment in the way we look at the world. Truly, the future vocabularies will consist of ‘Pre COVID world’ and ‘Post COVID world’. Undoubtedly, the economic system shall be deeply affected by the COVID wave. The focus of this article is to redesign our economy through new 7 golden rules in the aftermath of Covid-19. As we read these ideas we also come across the faults that lie at the bottom of the present system. This is our opportunity to design a resilient and just system. So, what is the way forward to achieve this? Read to know!

    • When complex systems come to catastrophes, they re-emerge in distinctly new forms.
    • The COVID-19 global pandemic is a catastrophe, both for human lives and our complex
    • Economists cannot predict in what form the economy will emerge from it. But we can develop principles for what lies ahead.

    7 Radical ideas to build back economy

    The COVID-19 catastrophe has challenged the tenets of economics that have dominated public policy for the past 50 years.

    Here are seven radical ideas emerging as pathways to build a more resilient economy and a more just society.

    1. Time to rethink GDP as a measure of growth

    • The obsession with GDP as the measure of progress has been challenged often, but its challengers were dismissed.
    • Now, Nobel laureates in economics-Joseph Stiglitz, Amartya Sen, Abhijit Banerjee, Esther Duflo and others-are calling upon to rethink the fundamentals of economics, especially the purpose of GDP.
    • A five-point ‘de-growth’ manifesto by 170 Dutch academics has gone viral amidst the heightened Internet buzz during the lockdown.
    • Goals for human progress must be reset.

    2. Opening boundaries is not always good

    • Boundary-lessness is a mantra for hyper-globalisers. Boundaries, they say, impede flows of trade, finance, and people.
    • However, since countries are at different stages of economic development, and have different compositions of resources, they must follow different paths to progress.
    • According to systems’ theory, sub-systems within complex systems must have boundaries around them, be permeable ones, so that the sub-systems can maintain their own integrity and evolve.
    • This is the explanation from systems science for the breakdown of the World Trade Organization (WTO).
    • In WTO system, all countries were expected to open their borders.
    • Opening borders caused harm to countries at different stages of development.
    • Now COVID-19 has given another reason to maintain sufficient boundaries.

    3. Role of the government is indispensable

    • Ronald Reagan’s dictum, “Government is not the solution… Government is the problem”, has been upended by COVID-19.
    • Even capitalist corporations who wanted governments out of the way to make it easy for them to do business are lining up for government bailouts.

    4. Problems caused by marketization

    • The “market” is not the best solution.
    • Money is a convenient currency for managing markets and for conducting transactions.
    • Whenever goods and services are left to markets, those who do not have money to obtain what they need are at loss.
    • Moreover, by a process of “cumulative causation”, those who have money and power can acquire even more in markets.
    • The “marketization” of economies has contributed to the increasing inequalities in wealth over the last 50 years, which Thomas Piketty and others have documented.

    5. Focus on citizen welfare, not consumer welfare

    • In economies, human beings are consumers and producers. In societies, they are citizens.
    • Citizens have a broader set of needs than consumers.
    • Citizens’ needs cannot be fulfilled merely by enabling them to consume more goods and services.
    • They value justice, dignity, and societal harmony too.
    • Economists’ evaluations of the benefits of free trade, and competition policy too, which are based on consumer welfare alone.
    • Such evaluations fail to account for negative impacts on what citizens value.

    6. Competition Vs. Collaboration

    • Competition must be restrained: Collaboration is essential for progress.
    • Faith in “Darwinian competition”, with the survival of only the fittest, underlies many problems of modern societies and economies.
    • Blind faith in competition misses the reality that human capabilities have advanced more than other species’ have, by evolving institutions for collective action.
    • Further progress, to achieve the Sustainable Development Goals will require collaboration among scientists in different disciplines and among diverse stakeholders, and collaboration among sovereign countries.
    • Improvement in abilities to share and govern common resources have become essential for human survival in the 21st century.

    7. Public ownership of technologies

    • We are living in an era of knowledge.
    • Just as those who owned more land used to have more power before, now those who own knowledge have more power and wealth than the rest.
    • Intellectual property monopolies are producing enormous wealth for their owners, though many were developed on the back of huge public investments.
    • Moreover, powerful technologies can be used for benign or malign purposes.
    • It is imperative to evolve new institutions for public ownership of technologies and for the regulation of their use.

    How to walk the talk?

    • COVID-19 has revealed structural weaknesses in the global economy. Putting more liquidity in the system as was done in case of 2008 crisis will not be sufficient.
    • The system is in the need of paradigm change.
    • 1. Coordination among experts
    • Experts need to work together with keeping in mind the larger picture.
    • The economic system cannot be redesigned by domain experts devising solutions within their silos.
    • 2. Focus on innovation
    • Innovations are required at many levels to create a more resilient and just world.
    • Innovations will be required in business models too, not just for business survival but also to move businesses out of the 20th-century paradigm that “the business of business must be only business”. 

    The UPSC can ask a question based on the issues discussed here. Consider this question- “COVID has upended the global economy in such a way that it would need an overhaul. The basic tenets of the global economic order would undergo a revaluation. In light of the above statements examine the factors that contributed to the vulnerability of the Indian economy. Suggest the ways to make it more resilient and just.”

    Conclusion

    The redesign of economies, of businesses, and our lives, must begin with questions about purpose. What is the purpose of economic growth? What is the purpose of businesses and other institutions? What is the purpose of our lives? What needs, and whose needs, do institutions, and each of us, fulfil by our existence?

  • Vande Bharat and Samudra Setu Missions to repatriate Indian nationals

    India is all geared to operate flights and naval vessels to repatriate Indian nationals stranded abroad.

    The name Samudra Setu typically sound like a combatant naval exercise whereas Vande Bharat reminds us of Train-18. Both ideas have opposite context and meaning. One must keep this in mind.

    What is the ‘Vande Bharat Mission’ mission about?

    • ‘Vande Bharat Mission’ will see the operation of 64 flights from May 7 to May 13 to bring back around 15,000 Indian nationals stranded abroad.
    • Once completed, it may turn out to be the largest evacuation operation ever since the 1990 airlift of 1.7 lakh people from Kuwait.
    • Approximately, 2,000 people from abroad will fly back to India daily.

    What is Indian Navy’s ‘Operation Samudra Setu’?

    • The Indian Navy launched ‘Operation Samudra Setu’ (Sea Bridge) as a part of national effort to repatriate Indian citizens from overseas.
    • Indian Naval Ships Jalashwa and Magar are presently enroute to the port of Malè, Republic of Maldives to commence evacuation operations from 08 May 2020 as part of Phase-1.
    • INS Jalashwa is the largest amphibious platform in the Navy and is based at the Eastern Naval Command headquarters in Visakhapatnam.
    • It can normally accommodate 1,000 people but will take about 800.