💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Distribution: weekly

  • Corruption Perceptions Index (CPI), 2021

     

    The 2021 Corruption Perception Index by Transparency International places India 85th on a list of 180 countries, one position above last year.

    Corruption Perceptions Index (CPI)

    • The CPI is an index which ranks countries “by their perceived levels of public sector corruption, as determined by expert assessments and opinion surveys.”
    • The CPI generally defines corruption as an “abuse of entrusted power for private gain”.
    • The index is published annually by the non-governmental organisation Transparency International since 1995.
    • The index ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and business people.
    • It uses a scale of 0 to 100 to rank CPI, where 0 is highly corrupt and 100 is very clean.

    What kind of corruption does the CPI measure?

    The data sources used to compile the CPI specifically cover the following manifestations of public sector corruption:

    • Bribery
    • Diversion of public funds
    • Officials using their public office for private gain without facing consequences
    • Ability of governments to contain corruption in the public sector
    • Excessive red tape in the public sector which may increase opportunities for corruption
    • Nepotistic appointments in the civil service
    • Laws ensuring that public officials must disclose their finances and potential conflicts of interest
    • Legal protection for people who report cases of bribery and corruption
    • State capture by narrow vested interests
    • Access to information on public affairs/government activities

    The CPI does NOT cover:

    • Citizens’ direct perceptions or experience of corruption
    • Tax fraud
    • Illicit financial flows
    • Enablers of corruption (lawyers, accountants, financial advisors etc)
    • Money-laundering
    • Private sector corruption
    • Informal economies and markets

    Highlights of the 2021 Report

    • The top-performing countries were Denmark, Finland and New Zealand — all having a corruption perceptions score of 88 — followed by Norway, Singapore and Sweden, all of them scoring 85.
    • In contrast, the worst-performing countries were South Sudan with a corruption perceptions score of 11, followed by Syria (13), Somalia (13, Venezuela (14) and Afghanistan (16).

    India’s performance

    • In 2021, India ranked 86th with the same CPI score of 40.
    • The report highlighted concerns over the risk to journalists and activists who have been victims of attacks by the police, political militants, criminal gangs and corrupt local officials.
    • Civil society organizations that speak up against the government have been targeted with security, defamation, sedition, hate speech and contempt-of-court charges, and with regulations on foreign funding.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Who are the Chakmas and Hajongs?

    In Arunachal Pradesh, the Chakma and Hajong people are feeling heat since the State government decided to conduct a special census in December 2021.

    What is the news?

    • The North-Eastern States have had a history of being paranoid about outsiders outnumbering the indigenous communities and taking their land, resources and jobs.
    • The threat from “non-locals” in a specific area has also been perceived to be from communities indigenous elsewhere in the region.
    • This has often led to conflicts such as the recent attacks on non-tribal people in Meghalaya’s capital Shillong or an Assam-based group’s warning to a fuel station owner in Guwahati against employing Bihari workers.

    Who are the Chakmas and Hajongs?

    • The Chakmas and Hajongs of Arunachal Pradesh are migrants from the Chittagong Hill Tracts of erstwhile East Pakistan, now Bangladesh.
    • Displaced by the Kaptai dam on the Karnaphuli River in the 1960s, they sought asylum in India.
    • They settled in relief camps in the southern and south-eastern parts of Arunachal Pradesh from 1964 to 1969.
    • A majority of them live in the Changlang district of the State today.
    • Mizoram and Tripura have a sizeable population of the Buddhist Chakmas while the Hindu Hajongs mostly inhabit the Garo Hills of Meghalaya and adjoining areas of Assam.

    Why was a special census of the two communities planned?

    • The Arunachal Government has cited to resolve the protracted issue of racial antagonism.
    • It seeks to rehabilitate the Chakma-Hajongs in other States.
    • The census plan was however dropped after the Chakma Development Foundation of India petitioned the PMO.

    Issues with the census

    • Chakma organizations said the census was nothing but racial profiling of the two communities because of their ethnic origin and violated Article 14 of the Indian Constitution.
    • It is against Article 1 of the International Convention on the Elimination of All Forms of Racial Discrimination, ratified by India.

    What is their citizenship status?

    • Members of the two communities had been settled in Arunachal Pradesh six decades ago with a rehabilitation plan, allotted land and provided with financial aid depending on the size of their families.
    • Although local tribes claim the population of the migrants has increased alarmingly, the 2011 census says there are 47,471 Chakmas and Hajongs in the State.
    • They are granted citizenship by birth under Section 3 of the Citizenship Act, 1955, after having been born before July 1, 1987, or as descendants of those who were born before this date.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Specie in news: Spot-billed Pelicans

    A nematode infestation has led to mass mortality of spot-billed pelicans (Pelicanus philippensis) at Telineelapuram Important Bird Area (IBA) in Andhra Pradesh.

    Spot-billed Pelicans

    • The spot-billed pelican (Pelecanus philippensis) or grey pelican is a member of the pelican family.
    • It breeds in southern Asia from southern Iran across India east to Indonesia.
    • It is a bird of large inland and coastal waters, especially large lakes.
    • The breeding population of these pelican species is limited to India, Sri Lanka and Cambodia.
    • In the non-breeding season they are recorded in Nepal, Myanmar, Thailand, Laos and Vietnam.

    Conservation status

    • IUCN status: Near Threatened
    • Wildlife (Protection) Act, 1972: Schedule IV (Hunting prohibited but the penalty for any violation is less compared to the first two schedules)

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Dealing with the macroeconomic uncertainties

    Context

    Macroeconomic uncertainties are mounting.

    Impact of US Fed’s decision

    • Against the backdrop of possible interest rate hikes by the U.S. Federal Reserve and the taper tantrum, there is pressure on the Reserve Bank of India (RBI) to increase its interest rates to prevent capital outflows.
    • The monetary policy corridor is still “accommodative” to support the growth recovery.
    • Globally, central banks have started increasing the interest rates.

    Macroeconomic uncertainties

    1] Inflationary pressure

    •  In India, the wholesale price index (WPI) inflation rose to a record high of 14.32% in November 2021 as per the data released by the Ministry of Commerce and Industry.
    • The consumer price index (CPI) inflation now is 5.03%, though that is still within the comfort zone of the inflation targeting framework envisaged in India’s new monetary framework.
    • The official nominal inflation anchor in India is 4%, with a band of variations of +/- 2. 

    2] Absorbing excess liquidity

    • The RBI Financial Stability Report, published on December 29, 2021, revealed a possible worsening of the gross non-performing asset (GNPA) ratio of scheduled commercial banks — from 6.9% in September 2021 to 9.5% by September 2022.
    • Absorbing the excess liquidity that was injected to stimulate growth as part of the pandemic response is crucial to reversing trends in non performing assets (NPAs).
    • Absorption of excess liquidity was attempted by increasing the cut-off yield rate of variable rate reverse repo (VRRR) to 3.99%, and curtailing the government securities acquisition programme.

    3] Interest rate structure and implications for government borrowing

    •  The call money market rates are below the repo rate.
    • The bond yields are increasing ahead of the Union Budget 2022-23.
    • The rise in bond yields will result in higher borrowing costs for the Government.

    Way forward for fiscal policy

    • Maintain accommodative policy stance: Given these macroeconomic uncertainties, maintaining an accommodative fiscal policy stance in the upcoming Union Budget for FY23 is crucial for a sustainable recovery.
    • Don’t focus on fiscal consolidation: Any attempt at fiscal consolidation at this juncture employing capital expenditure compression rather than a tax buoyancy path can adversely affect economic growth. 
    •  Public investment — infrastructure investment in particular — is a major growth driver through “crowding-in” of private corporate investment.
    • Strengthening investments in the health-care sector is crucial at this juncture as a prolonged lockdown can accentuate the current humanitarian crisis and deepen economic disruptions.
    • When credit-linked economic stimulus has an uneven impact on growth recovery, the significance of fiscal dominance cannot be undermined.
    • Address unemployment: Rising unemployment needs to be addressed through an urgent policy response that strengthens job guarantee programmes.

    Conclusion

    The upcoming Union Budget for 2022-23 should maintain an accommodative fiscal stance in order to support the sustainability of the economic growth process and also for financing human development.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

     

  • Places in the news: Sittwe Port

    Context

    Notwithstanding the unfortunate developments since the Tatmadaw took over, a recalibration exercise for developing a robust relationship with Naypyidaw is the need of the hour.

    Need for proactive neighbourhood policy with Myanmar

    • Security and economic interests: India should implement an unbiased and proactive “Neighbourhood First” strategy that facilitates the Act East policy crucial for India’s long-term security and economic interests.
    • Myanmar — regardless of who governs its polity — is not only the decisive lynchpin for India’s Act East policy but critical for the economic development and security of India’s Northeast.
    • China factor: Such a policy should take into account the measures that China has taken to arm the Tatmadaw.

    How to support Myanmar?

    • Critical requirements: India should find ways to support Naypyidaw for its critical requirements of systems and platforms like UAVs, surveillance systems and communication equipment.
    • Economic engagement: There is a need for dynamic economic engagement with Myanmar, to expedite the completion of the earlier agreement on the operationalisation of the Sittwe port, the establishment of an oil refinery and joint vaccine production facilities at a cost of $6 billion.
    • People-to-people goodwill: India also needs to proactively employ the existing “people-to-people” goodwill and proximate ties between the two armies.
    • Engage with military leadership to stop highhandedness: India has the singular advantage of acceptability from both factions in Myanmar and it is, therefore, imperative that it takes the lead in engaging with the ruling military leadership, to stop the highhandedness.
    • The visit by India’s Foreign Secretary to Myanmar in the last week of December 2021 was significant.
    • It conveyed the message that India, notwithstanding its commitment to democracy, is amenable to conduct business with the country, regardless of who is in the seat of power.

    Conclusion

    It is of the utmost importance for India to positively engage Naypyidaw and stave off attempts to exploit Myanmar by countries inimical to India’s growth. Any ambiguity or delay in India’s constructive engagement with Myanmar would only serve the interests of anti-India forces.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • What is a K-shaped Economic Recovery?

    Former RBI Governor Raghuram Rajan has said that the government needed to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic.

    K-Shaped Recovery

    • A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
    • This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.
    • A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
    • This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter “K.”

    Try these PYQ:

     

    Q.Economic growth in country X will necessarily have to occur if-

     

    (a) There is technical progress in the world economy

    (b) There is population growth in X

    (c) There is capital formation in X

    (d) The volume of trade grows in the world economy

    Implications of a K-Shaped Recovery

    • Households at the bottom have experienced a permanent loss of income in the forms of jobs and wage cuts; this will be a recurring drag on demand, if the labour market does not heal faster.
    • To the extent that Covid has triggered an effective income transfer from the poor to the rich, this will be demand-impeding because the poor tend to spend-instead of saving.
    • If Covid-19 reduces competition or increases the inequality of incomes and opportunities, it could impinge on trend growth in developing economies by hurting productivity and tightening political economy constraints.

    Also read:

    Shapes of Economic Recovery

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • What are Non-Fungible Tokens (NFTs)?

    A French luxury fashion brand is suing American digital artist who created a series of NFTs (Non-Fungible Tokens), a rapidly growing part of the cryptoworld.

    Non-Fungible Tokens

    • An NFT is a unique, irreplaceable token that can be used to prove ownership of digital assets such as music, artwork, even tweets and memes.
    • The term ‘non-fungible’ simply means that each token is different as opposed to a fungible currency such as money (a ten-rupee note can be exchanged for another and so on).
    • Cryptocurrencies such as Bitcoin and Ethereum are also fungible, which means that one Bitcoin can be exchanged for another.
    • But an NFT cannot be exchanged for another NFT because the two are different and therefore unique.
    • Each token has a different value, depending on which asset it represents.

    How does NFT transaction take place?

    • NFT transactions are recorded on blockchains, which is a digital public ledger, with most NFTs being a part of the Ethereum blockchain.
    • NFTs became popular in 2021, when they were beginning to be seen by artists as a convenient way to monetize their work.

    Why are they in high demand?

    • One of the other attractions is that NFTs are a part of a new kind of financial system called decentralized finance (DeFi), which does away with the involvement of institutions such as banks.
    • For this reason, decentralized finance is seen as a more democratic financial system because it makes access to capital easier for lay people by essentially eliminating the role of banks and other associated institutions.
    • Even so, because NFTs operate in a decentralized system, any person can sell a digital asset as one.
    • This can sometimes create problems. For instance, if you were to sell someone else’s artwork as an NFT, you could essentially be infringing on a copyright.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [pib] One District One Product (ODOP) Initiative

    As a major boost to Centre and State collaboration in promoting products under the ODOP Initiative – a State Conference was recently held by the Department for Promotion of Industry and Internal Trade (DPIIT).

    One District One Product (ODOP)

    • ODOP spearheaded by the Uttar Pradesh government in 2018, is an important initiative that is being adopted all over India to realize the true potential of each district.
    • ODOP is an initiative which is seen as a transformational step forward towards realizing the true potential of a district, fuel economic growth and generates employment and rural entrepreneurship.
    • It is operationally merged with ‘Districts as Export Hub’ initiative being implemented by DPIIT as a major stakeholder.
    • The main philosophy is to select, brand and promote one product from each district of India that has a specific characteristic feature to enable profitable trade in that product and generate employment.

    Why need this scheme?

    • India is home to several agricultural and non-agricultural (including manufacturing) products that are region-specific.
    • Every district has products that are unique and provide livelihoods and generate income.
    • This scheme is in tune with the PM’s call to transform every district into an export hub and realize the goal of Atmanirbhar Bharat.

    What needs to be done for its success?

    The important aspect that the policy initiatives in India should thus be mindful of are:

    • Ownership of the initiative should lie at the center of implementation.
    • The stakeholders irrespective of the sector along the value chain need to be identified and provided information and awareness.
    • It is important to streamline other initiatives such as registration of Geographical Indications (GI), formation and development of farmer producer organizations etc.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [Burning Issue] IAS cadre rules amendments

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

    Context

    The Central Government has proposed four amendments to Rule 6(1) of the IAS (Cadre) Rules, 1954 dealing with deputation, and has sought the views of State governments before January 25, 2022.

    Historical background of All India Services

    • It was Sardar Patel who had championed the creation of the Indian Administrative Service (IAS) and the Indian Police Service (IPS) as “All India Services” (AIS) whose members would be recruited and appointed by the Centre and allotted to various States, and who could serve both under the State and the Centre.
    • Speaking to the Constituent Assembly on October 10, 1949, Patel said, “The Union will go, you will not have a united India if you have not a good All India Service which has the independence to speak out its mind, which has a sense of security….”.
    • The All India Services (AIS) comprises three civil services:
    1. the Indian Administrative Service,
    2. the Indian Police Service and
    3. the Indian Forest Service
    • A unique feature of the AIS is that the members of these services are recruited by the centre (Union government in federal polity), but their services are placed under various State cadres.
    • They have the liability to serve both under the State and under the centre.
    • Officers of these three services comply to the All India Services Rules relating to pay, conduct, leave, various allowances etc.
    • The All India Services Act, 1951, provides for the creation of two more All India Services, namely, the Indian Engineering Service and the Indian Medical Service.

    Central deputation of All India Service officers

    • Consultative process: AIS officers are made available for central deputation through a consultative process involving the Centre, the States and the officers concerned.
    • The Centre would choose officers only from among those “on offer” from the States.
    • Concurrence of the State government: The existing Rule 6(1) states that a cadre officer may be deputed to the Central Government (or to another State or a PSU) only with the concurrence of the State Government concerned.
    • However, it has a proviso which states that in case of any disagreement, the matter shall be decided by the Central Government.
    • Unfortunately, both the Centre and the States have at times flouted these healthy conventions for political considerations.

    The politicization of the deputation process

    • Unfortunately, both the Centre and the States have at times flouted the above healthy conventions for political considerations.
    • In July 2001, the Centre unilaterally “placed at its disposal” the services of three IPS officers of Tamil Nadu cadre.
    • In December 2020, the Centre did the same in respect of three IPS officers of West Bengal cadre.
    • In May 2021, the Centre unilaterally issued orders for the central deputation of the Chief Secretary of West Bengal just before his last day in service.
    • In all these cases, the States concerned refused to relieve the officers. 
    • Some States used to vindictively withhold the names of some of the officers who had opted for central deputation or delay their relief after they were picked up by the Centre.
    • On the other hand, Union government was unable to fill vacancies at director and joint secretary level in various Central ministries.
    • Around 40% or 390 Central Staffing Scheme (CSS) posts are at joint secretary level (more than 19 years experience) and 60% or 540 such posts are at the rank of deputy secretary (nine years) or director rank (14 years of service).
    • The proposed amendment to rule: The Central Government has proposed four amendments to Rule 6(1) of the IAS (Cadre) Rules, 1954 dealing with deputation.

    Proposed amendments

    Four amendments are proposed to Rule 6 of IAS (Cadre) Rules.

    • One of the major changes proposed is if the State government delays posting a State cadre officer to the Centre within the specified time, “the officer shall stand relieved from cadre from the date as may be specified by the Central government.”
      • Presently, officers have to get a no-objection clearance from the State government for Central deputation.
    • The other change proposed is the Centre will decide the actual number of officers to be deputed to the Central government in consultation with the State and the latter should make eligible the names of such officers
      • According to existing norms, States have to depute the All India Services (AIS) officers, including IPS officers, to the Central government offices and at any point it cannot be more than 40% of the total cadre strength.
    • The third proposed amendment says that in case of any disagreement between the Centre and the State, the matter shall be decided by the Central government and the State shall give effect to the decision of the Centre “within a specified time.”
    • The fourth change proposed is that in specific situation (discretionary power) where services of cadre officers are required by the Central government in “public interest” the State shall give effect to its decisions within a specified time.

    Is the problem acute?

    • According to 2021 data, of the total 6,709 IAS officers in the country, 445 were posted with the Union — only 6.6%. In 2014, of the 4,605 officers, 651 were posted with the Union (14 %).
    • In 2021, only 10% mid-level IAS officers (deputy secretary/director, 9-14 years experience) were posted with the Centre in 2021, a sharp fall from 19% in 2014, even though the total pool of such officers at this rank expanded from 621 in 2014 to 1130 in 2021, an increase of around 80%.

    Issues with the proposed amendments

    • The contemplated changes have grave implications for the independence, security and morale of IAS officers.
    • Infringement of rights of States: States are right in perceiving the proposed amendments as a serious infringement of their rights to deploy IAS officers as they deem best, especially when the cutting edge of policy implementation is mostly at the State level.
    • States may prefer officers of the State Civil Services to handle as many posts as possible.
    • Against cooperative federalism: In S.R. Bommai vs Union of India (1994), the Supreme Court held that “States have an independent constitutional existence and they have as important a role to play in the political, social, educational and cultural life of the people as the Union. They are neither satellites nor agents of the Centre”.
    • Consent of Officers neglected: The proposed amendment more or less compels a State government to offer IAS officers for central deputation even when these officers themselves may not wish to go on central deputation.
    • Scope for Political Misuse: New rules may be misused for political considerations. For instance: Centre can unilaterally place at its disposal the services of the Chief Secretary, Principal Secretary to CM and other key officers of a State ruled by a rival party, thereby hampering the smooth administration of states.
    • May decline the sheen of All India Services: The contemplated changes have grave implications for the independence, security and morale of IAS officers. If States begin to doubt the loyalty of IAS officers, they are likely to reduce the number of IAS cadre posts and also their annual intake of IAS officers. They may prefer officers of the State Civil Services to handle as many posts as possible

    Conclusion

    In a federal setup, it is inevitable that differences and disputes would arise between the Centre and the States. But all such quarrels should be resolved in the spirit of cooperative federalism and keeping the larger national interest in mind.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Budgeting for the education emergency

    Context

    Faced with an unprecedented education emergency, this is the time to substantially ramp up public spending on education and make it more effective.

    Low allocation for education

    • UNESCO’s 2030 framework for action suggests public education spending levels of between 4% and 6% of GDP and 15%-20% of public expenditure.
    • A recent World Bank study notes that India spent 14.1 % of its budget on education, compared to 18.5% in Vietnam and 20.6% in Indonesia, countries with similar levels of GDP.
    • But since India has a higher share of population under the age of 19 years than these countries, it should actually be allocating a greater share of the budget than these countries.
    • Public spending on education in most States in India was below that of other middle-income countries even before the pandemic.
    • Most major States spent in the range of 2.5% to 3.1% of State income on education, according to the Ministry of Education’s Analysis of Budgeted Expenditure on Education.
    • This compares with the 4.3% of GDP that lower-middle-income countries spent, as a group, between 2010-11 and 2018-19.
    •  In the 2021-22 Budget, the Central government’s allocation for the Education Department was slashed compared to the previous year, even though the size of the overall budget increased.
    • Of the major States and Delhi, eight either reduced or just about maintained their budget allocation for education departments in 2021-22 compared to 2020-21.

    Way forward

    • The vast majority of the 260 million children enrolled in preschool and school, especially in government schools, did not have meaningful structured learning opportunities during the 20 months of school closures.
    • Infusion of resources: The education system now needs not only an infusion of resources for multiple years, but also a strengthened focus on the needs of the poor and disadvantaged children.
    • What it is spent on and how effectively resources are used are important.
    • It is clear what additional resources are required for.
    • The needs include: back-to-school campaigns and re-enrolment drives; expanded nutrition programmes; reorganisation of the curriculum to help children learn language and mathematics in particular, and support their socio-emotional development, especially in early grades; additional learning materials; teacher training and ongoing support; additional education programmes and collection and analysis of data.
    • Focus on teacher training:  How does expenditure on technology compare with the amounts spent on teacher training, which represents just 0.15% of total estimated expenditure on elementary education?
    • Teachers are central to the quality of education, so why does India spend so little on teacher training?

    The opacity of education finance data in India

    • The opacity of education finance data makes it difficult to comprehend this.
    • For instance, the combined Central and State government spending on education was estimated to be 2.8% of GDP in 2018-19, according to the Economic Survey of 2020-21.
    • This figure had remained at the same level since 2014-15.
    • On the other hand, data from the Ministry of Education indicates that public spending on education had reached 4.3% of GDP in the same year, rising from 3.8% of GDP in 2011-12.
    • The difference in the figures is due to the inclusion of expenditure on education by departments other than the Education Department.
    •  Including expenditure on education by, for example, the Ministry of Tribal Affairs, the Ministry of Social Justice and Empowerment (on Anganwadis, scholarships, etc.), the Ministry of Science and Technology (for higher education) is of course legitimate.
    • However, the composition of these expenditures is not readily available.

    Conclusion

    The questions for this Budget should be clear. How much additional funds are being allocated for different levels of education by the principal departments in 2021-22? Are the funds being spent on the specific measures required to address the education emergency facing the children?

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)