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Distribution: weekly

  • Election Campaign Funding by Political Parties

    With several Assembly elections coming up, the issue of campaigning is back on the track. Campaign funding reforms are one of the biggest issues in electoral reforms worldwide.

    Why in news?

    • Elections are fought with huge funds nowadays.
    • Estimates vary, but a candidate may spend in crores in just one constituency.
    • This vital issue is neglected by voters in the noise of campaigns, leaders, celebrities, and media coverage.

    Caps on Election Expenditure

    The Election Commission of India (ECI) imposes limits on campaign expenditure incurred by a candidate and not political parties.

    The ceiling on poll expenditure varies across States:

    (a) Bigger states

    • With candidates in Assembly Elections in bigger states like Bihar, Uttar Pradesh, and Tamil Nadu now allowed to spend up to 40L (from ₹30.8 lakhs as against ₹28 lakhs earlier.)
    • For a candidate contesting a Lok Sabha Poll in these States, the revised ceiling on poll expenditure is now 90lakh (₹77 lakhs earlier).

    (b) Smaller states

    • While the enhanced ceiling for a Lok Sabha candidate is now 75Lakh (Earlier ₹59.4 lakhs) those contesting an Assembly can spend up to 28 Lakh( earlier ₹22 lakhs.)
    • Goa, Arunachal Pradesh, Sikkim and a few Union Territories (AGMUT states) based on the size of their constituencies and population, have a lower ceiling on poll expenditure.

    How are such ceilings made?

    • Such changes are made by amending the Conduct of Elections Rules.
    • The last time the expenditure ceiling was enhanced was in 2014 just ahead of the Lok Sabha polls.

    What happens when expenditure exceeds the limit?

    • Contesting candidates are required to file a mandatory true account of election expenses with the EC.
    • An incorrect account or expenditure beyond the ceiling can attract disqualification for up to three years as per Section 10A of The Representation of the People Act, 1951.

    What doesn’t account to Election expenditure?

    • The expenditure incurred by leaders of a political party on account of travel by air or by any other means of transport for propagating programme of the political party is not considered to be the election expenditure.
    • Any expenditure which is done for service of the Government and discharge of official duty is also not considered to be election expenditure.

    Why is this issue important for the voter?

    • Voters vote for candidates, political parties and leaders so that they deliver benefits to the citizens.
    • If election funds are obtained from other sources, the Governments in power are obliged to the funders more than the voters.
    • The government may take decisions that benefit the donors rather than the voters.
    • Even if a rich candidate funds his own election, the focus is on recovering the investment made rather on public service.

    Situation in India on Election Funding

    • Transparency in funding is absent after the introduction of Electoral Bonds.
    • Now citizens cannot know who is funding the political parties.

    Way forward

    There is also much to learn from international experience. Broadly there are three classes of remedies.

    • First is to make all election funding completely transparent so that voters know who is funding whom.
    • Second is to prevent private interests from unduly influencing elections or Governments. This is done by a set of rules on limiting funding.
    • Third is to try and have a more level playing field so that good politicians, candidates and parties with less funds also stand a chance of competing in elections.

     

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  • Mullaperiyar Dam Issue

    The Supreme Court has told Tamil Nadu and Kerala that it was not there to “administer the dam” when a supervisory committee was already in place to examine the issue of safety of the Mullaperiyar Dam and the management of its water level.

    Do you know?

    The Mullaperiyar dam is located in Kerala on the river Periyar but is operated and maintained by the neighbouring state of Tamil Nadu.

     

    John Pennycuick (the architect of this dam) sold his family property in England to mobilize money to fund the project! People of the region fondly name their children under his name a remark of reverence.

    Mullaperiyar Dam

    • It is a masonry gravity dam on the Periyar River in Kerala.
    • It is located on the Cardamom Hills of the Western Ghats in Thekkady, Idukki District.
    • It was constructed between 1887 and 1895 by John Pennycuick (who was born in Pune) and also reached in an agreement to divert water eastwards to the Madras Presidency area.
    • It has a height of 53.6 m (176 ft) from the foundation, and a length of 365.7 m (1,200 ft).

    Operational issue

    • The dam is located in Kerala but is operated and maintained by Tamil Nadu.
    • The catchment area of the Mullaperiyar Dam itself lies entirely in Kerala and thus not an inter-State river.
    • In November 2014, the water level hit 142 feet for first time in 35 years.
    • The reservoir again hit the maximum limit of 142 feet in August 2018, following incessant rains in the state of Kerala.
    • Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among water managers across States.

    The dispute: Control and safety of the dam

    • Supreme court judgment came in February 2006, has allowed Tamil Nadu to raise the level of the dam to 152 ft (46 m) after strengthening it.
    • Responding to it, the Mullaperiyar dam was declared an ‘endangered’ scheduled dam by the Kerala Government under the disputed Kerala Irrigation and Water Conservation (Amendment) Act, 2006.
    • For Tamil Nadu, the Mullaperiyar dam and the diverted Periyar waters act as a lifeline for Theni, Madurai, Sivaganga, Dindigul and Ramnad districts.
    • Tamil Nadu has insisted on exercising the unfettered colonial rights to control the dam and its waters, based on the 1886 lease agreement.

    Rule of Curve issue

    • A rule curve or rule level specifies the storage or empty space to be maintained in a reservoir during different times of the year.
    • It decides the fluctuating storage levels in a reservoir.
    • The gate opening schedule of a dam is based on the rule curve. It is part of the “core safety” mechanism in a dam.
    • The TN government often blames Kerala for delaying the finalization of the rule curve.

    Back2Basics: Periyar River

    • The Periyar is the longest river in the state of Kerala with a length of 244 km.
    • It is also known as ‘Lifeline of Kerala’ as it is one of the few perennial rivers in the state.
    • It originates from Sivagiri hills of Western Ghats and flows through the Periyar National Park.
    • The main tributaries of Periyar are Muthirapuzha, Mullayar, Cheruthoni, Perinjankutti.

     

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  • Issues with India’s GDP data

    Context

    There are three major reasons why the GDP data, and hence any narrative of economic recovery based on it, are questionable.

    Background

    • The NSO released the current GDP series in 2015, using 2011-12 as its base year.
    • Some have argued that the problem in the new series is the real growth rate. This is debatable.
    • Scholars have pointed to measurement problems, both in the nominal and real GDP growth rates.

    Three issues with the GDP data, and  narrative of economic recovery based on it

    [1] Double deflation problem

    • The new series entailed a shift from a volume-based measurement system to one based on nominal values, thereby making the deflator problem more critical.
    • Simply put, the NSO calculates real GDP by gathering nominal GDP data in rupees and then deflating this data using various price indices.
    • The nominal data needs to be deflated twice: Once for outputs and once for inputs.
    • But the NSO — almost uniquely amongst G20 countries — deflates the nominal data only once.
    • It does not deflate the value of inputs.
    • To see why this is a problem, consider what happens when the price of imported oil goes down.
    • In that case, input costs will fall and the profits recorded by Indian firms will rise.
    • This increase in profits is merely the result of a fall in input prices, so it needs to be deflated away.
    • But the NSO doesn’t deflate away the increase in profits.
    • Since the cost of inputs is measured by the WPI (wholesale price index), a crude measure of the overestimation caused by the absence of “double deflation” is given by the gap between the WPI and the CPI (consumer price index).
    • In the 2014-2017 period, oil prices plunged, causing the WPI to fall sharply relative to the CPI.
    • This meant that real growth was probably overstated.
    • In the last few months, the exact opposite has been happening. WPI inflation is soaring.
    • The rapid increase in the WPI relative to the CPI is imparting an upward bias to the deflator.

    [2] Sectoral weight not updated

    • When it calculates GDP, it takes a sample of activity in each sector, then aggregates the figures by using sectoral weights.
    • To make sure that the weights are reasonably accurate, the NSO normally updates them once a decade.
    • It has now been more than 10 years since the weights were changed, and there are no signs of a base year revision.
    • As a result, the sectoral weights are still based on the structure of the economy in 2010-11, when in particular the information technology sector was much smaller.

    [3] Measurement of unorganised sector

    • Measurement of the unorganised sector has always been difficult in India.
    • Once in a while, the NSO undertakes a survey to measure the size of the sector.
    • In the meantime, it simply assumes that the sector has been growing at the same rate as the organised sector.
    • However, starting in 2016 the unorganised sector has been disproportionately impacted by a series of shocks.
    • In 2018, the NBFC sector reported serious problems, which in turn impacted unorganised sector firms since they were heavily dependent on NBFCs for funds.
    • From 2020 onwards, the pandemic has impacted the unorganised sector more than the organised sector enterprises.
    • Despite these shocks, the NSO does not seem to have made any adjustments to its methodology for estimating the growth of the unorganised sector.

    Consider the question “Elaborate the issues with India’s GDP data. Suggest the way forward.”

    Conclusion

    There are serious problems with India’s GDP data. Any analysis of recovery or growth forecast based on this data must be taken with a handful of salt.

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  • Places in news: Darvaza Gas Crater

    Turkmenistan President has ordered experts to find a way to extinguish a fire in a huge natural gas crater, the Darvaza gas crater also known as the ‘Gateway to Hell’.

    Darvaza Gas Crater

    • Located in the Karakum desert, 260 kilometres away from Turkmenistan’s capital, Ashgabat, the crater has been burning for the last 50 years.
    • The crater is 69 metres wide and 30 metres deep.
    • While the details of the origin of the crater are contested but it has been said that the crater was created in 1971 during a Soviet drilling operation.
    • In 1971, Soviet geologists were drilling for oil in the Karakum desert when they hit a pocket of natural gas by mistake, which caused the earth to collapse and ended up forming three huge sinkholes.

    Why is it flamed?

    • This pocket of natural gas contained methane, hence to stop that methane from leaking into the atmosphere, the scientists lit it with fire, assuming the gas present in the pit would burn out within a few weeks.
    • The scientists seemed to have misjudged the amount of gas present in the pit, because the crater has been on fire for five decades now.

    A popular tourist attraction

    • The crater has become a significant tourist attraction in Turkmenistan.
    • In 2018, the country’s president officially renamed it as the “Shining of Karakum”.

    Why did Turkmenistan order to extinguish it?

    • Calling it a human-made crater, it has negative effects on both environment and the health of the people living nearby.
    • It also ends up losing valuable natural resources for which could fetch significant profits.

    How harmful are methane leaks?

    • Methane is the primary contributor to the formation of ground-level ozone, a hazardous air pollutant and greenhouse gas, exposure to which causes 1 million premature deaths every year.
    • Methane is also a powerful greenhouse gas. Over a 20-year period, it is 80 times more potent at warming than carbon dioxide.

    Back2Basics: TAPI Gas Pipeline

    • The Turkmenistan–Afghanistan–Pakistan–India (TAPI) Pipeline is a natural gas pipeline being developed with the participation of the Asian Development Bank.
    • It will be a 1,814km trans-country natural gas pipeline running across four countries.
    • It will transport natural gas from the Galkynysh Gas Field in Turkmenistan through Afghanistan into Pakistan and then to India.
    • The plan for the TAPI project was originally conceived in the 1990s to generate revenue from Turkmenistan’s gas reserves by exporting natural gas via Afghanistan to Pakistan and India.
    • Construction on the project started in Turkmenistan on 13 December 2015, work on the Afghan section began in February 2018, and work on the Pakistani section was planned to commence in December 2018.
    • Presently, the construction work has been stalled due to terror activities of Taliban in Afghanistan since few years.

     

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  • Red Sanders falls back in IUCN’s ‘endangered’ category

    Red Sanders (Red Sandalwood) has fallen back into the ‘endangered’ category in the International Union for Conservation of Nature’s (IUCN) Red List.

    A recently released and trending Telugu movie plot provides a fictional account of red sandal smuggling.

    About Red Sanders

    • The species, Pterocarpus santalinus, is an Indian endemic tree species, with a restricted geographical range in the Eastern Ghats.
    • It is endemic to a distinct tract of forests in Andhra Pradesh.
    • It is mainly found in Chittoor, Kadapa, Nandhyal, Nellore, Prakasam districts of Andhra Pradesh.
    • It was classified as ‘near threatened’ in 2018 and has now joined the ‘endangered’ list once again in 2021.
    • It is listed under Appendix II of CITES and is banned from international trade.

    Status of legal protection in India

    • The Union Environment Ministry had decided to keep Red Sanders (red sandalwood) OUT of the Schedule VI of Wild Life Protection Act, 1972, arguing that this would discourage the cultivation of the rare plant species.
    • Schedule VI regulates and restricts the cultivation, possession, and sale of a rare plant species.

    Significance of listing

    • It was a moment of celebration when the species was lifted off from the endangered category for the first time since 1997.
    • Over the last three generations, the species has experienced a population decline of 50-80 percent.
    • It is also scheduled in appendix II of the CITES and Wildlife Protection Act.

    Threats to this species

    • Red Sanders are known for their rich hue and therapeutic properties, are high in demand across Asia, particularly in China and Japan.
    • They are used in cosmetics and medicinal products as well as for making furniture, woodcraft and musical instruments.
    • Its popularity can be gauged from the fact that a tonne of Red Sanders costs anything between Rs 50 lakh to Rs 1 crore in the international market.

    Try this question from CSP 2016:

    Q.With reference to ‘Red Sanders’, sometimes seen in the news, consider the following statements:

    1. It is a tree species found in a part of South India.
    2. It is one of the most important trees in the tropical rain forest areas of South India.

    Which of the above statements is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    [wpdiscuz-feedback id=”wtga11jsfj” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    Back2Basics: Red List Categories of IUCN

    Species are classified by the IUCN Red List into nine groups specified through criteria such as rate of decline, population size, area of geographic distribution, and degree of population and distribution fragmentation. They are:

    • Extinct (EX) – beyond reasonable doubt that the species is no longer extant.
    • Extinct in the wild (EW) – survives only in captivity, cultivation and/or outside native range, as presumed after exhaustive surveys.
    • Critically endangered (CR) – in a particularly and extremely critical state.
    • Endangered (EN) – very high risk of extinction in the wild, meets any of criteria A to E for Endangered.
    • Vulnerable (VU) – meets one of the 5 red list criteria and thus considered to be at high risk of unnatural (human-caused) extinction without further human intervention.
    • Near threatened (NT) – close to being at high risk of extinction in the near future.
    • Least concern (LC) – unlikely to become extinct in the near future.
    • Data deficient (DD)
    • Not evaluated (NE)

     

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  • National Ambient Air Quality Standards (NAAQS)

    Delhi and most of the other non-attainment cities under the National Clean Air Programme (NCAP) have shown only a marginal improvement, said a new analysis released.

    About NCAP

    • The NCAP was implemented across India in 2019 to reduce particulate matter levels in 132 cities by 20-30% in 2024.
    • Cities are declared non-attainment if they consistently fail to meet the National Ambient Air Quality Standards (NAAQS) over a five-year period.

    What are NAAQ standards?

    • The mandate provided to the Central Pollution Control Board (CPCB) under the Air (Prevention and Control of Pollution) Act empowers it to set standards for the quality of air.
    • Hence the current National Ambient Air Quality Standards were notified in November 2009 by the CPCB.
    • Prior to this, India had set Air Quality standards in 1994, and this was later revised in 1998.
    • The 2009 standards further lowered the maximum permissible limits for pollutants and made the standards uniform across the nation.
    • Earlier, less stringent standards were prescribed for industrial zones as compared to residential areas.

    Pollutants covered:

    • Sulphur Dioxide (SO2)
    • Nitrogen Dioxide (NO2),
    • Particulate Matter (size less than 10 µm) or PM 10
    • Particulate Matter (size less than 2.5 µm) or PM2.5
    • Ozone (O3)
    • Carbon Monoxide (CO)
    • Ammonia (NH3)

    (Air Pollutants that most of us NEVER heard of:)

    • Lead
    • Benzene (C6H6)
    • Benzo(a)Pyrene (BaP)
    • Arsenic(As)
    • Nickel (Ni)

    Source: Arthpaedia

     

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  • [Burning Issue] Gig Economy in India

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    The surge in demand for gig workers, particularly in the shared services and logistics segments, in the aftermath of the Covid-19 pandemic led to mushrooming of job discovery platforms.

    What is the gig economy?

    • In a gig economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees.
    • A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career. e.g Employee models of Uber, Ola, Swiggy etc
    • In this economy, tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis. Gig workers include self-employed, freelancers, independent contributors and part-time workers.
    • This project-based gig economy allows the service adopter to cut overhead costs, and the gig worker to get paid for a specific task performed instead of receiving a fixed salary.
    • The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand for flexible lifestyles.
    • At the same time, the gig economy can have downsides due to the erosion of traditional economic relationships between workers, businesses, and clients.
    • Sectors such as media, real estate, legal, hospitality, technology-help, management, medicine, allied and education are already operating in gig culture.

    Is Gig economy a new concept?

    • The ‘Gig concept’ is very common in advanced countries like the US, Europe, who hire part time workers.
    • With freelancing evolving into the Gig Economy, the concept is attracting a lot of people in India as well.
    • Gig economy is remunerative and gives a wide range of choices but it also leads to casualization of the labor.

    Trends in Gig Economy 

    • The digital gig economy generated a gross volume of approximately $204 bn from worldwide customers in 2018. Transportation-based services contributed to over 50% of this value.
    • The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of ~$455 bn by 2023.
    • Digital platforms have emerged as enablers for employment creation with the power to easily discover job seekers and job providers in the absence of middlemen.
    • Due to the rapid developments in technology, the transaction cost for outsourcing non-core activities is reducing and facilitating an increase in the number of tasks which can be performed by each worker.
    • Thus, firms are shrinking in size and we are witnessing a rise in start-ups which are outsourcing many activities to expert service providers on a contractual basis.
    • While the gig economy is popular amongst the blue-collar workers in India, there is now huge potential for the white-collar workers as well, due to increasing demand in industries – project-specific consultants, logo/content design, web design etc.
    • The gig economy is expanding from less skilled services to more skilled jobs.

    Gig Economy in India

    • The COVID-19 pandemic-induced remote working has blurred the age-old skepticism over the efficiency and dependability of contractual or part-time employees, with companies increasingly looking to hire gig workers.
    • As per a report by ASSOCHAM, India’s gig sector is expected to increase to US$455 billion at a CAGR of 17% by 2024 and has the potential to expand at least 2x the pre-pandemic estimates.
    • India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan. 
    • Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat and Telangana have most opportunities in terms of growth for the flexi-workers.
    • In another estimate, India is likely to have 350 million gig jobs by 2025, presenting a huge opportunity for job seekers to capitalize and adapt to the changing work dynamics.
    • At present, India has a pool of ~15 million freelance workers staffed in projects across IT, HR and designing. In addition, India’s workforce is growing by ~4 million people annually.
    • And as most of them are young millennials, they are showing an increasing preference for gig contracts. This trend is expected to significantly impact gig economy in the near future.

    Key Drivers for Gig Economy

    (1) Unconventional work approach by millennials

    • Hectic lifestyles of employees in private sectors have created a negative perception of full-time employment among millennials.
    • Factors such as growth opportunities, flexibility, better work-life balance and option to not acquire a college degree are encouraging millennials to opt for freelancing opportunities as opposed to corporate work culture.

    (2) Emergence of a start-up culture

    • The start-up ecosystem in India has been developing rapidly. For start-ups, hiring full-time employees leads to high fixed costs and therefore, contractual freelancers are hired for non-core activities.
    • Start-ups are also looking at hiring skilled technology freelancers (on a per project basis) in areas such as engineering, product, data science and ML to bolster their tech platforms.

    (3) MNCs are hiring contractual employees

    • MNCs are adopting flexi-hiring options, especially for niche projects, to reduce operational expenses after the pandemic. This trend is significantly contributing to the gig culture in India.

    (4) Rise in freelancing platforms

    • Rise in freelancing platforms has also aided in the development of the gig economy. Many home-grown platforms such as Upwork, Truelancer and Guru provide access to high-skilled freelancers.
    • The number of freelancing platforms has significantly increased—from 80 in 2009 to 330 in 2021. These platforms boast of a clientele comprising not only start-ups, but also Fortune 500 companies.

    (5) Business Models

    • Gig employees work on various compensation models such as fixed-fee (decided during contract initiation), time & effort, actual unit of work delivered and quality of outcome.
    • The fixed-fee model is the most prevalent; however, time & effort model comes a close second.

    (6) Impact of Covid-19

    • According to the survey, India stands to lose ~135 million jobs because of the pandemic and this is likely to push the full-time workforce towards the gig economy.
    • Moreover, many laid-off employees are focusing on developing skills to avail freelance job opportunities and become a part of this burgeoning economy.

    Why is Gig Economy preferred by workers?

    • One can work on freelancing as well as work full-time somewhere else. Hence it is profitable to the worker as he can hit two targets together and multitask.
    • It is very beneficial for women who work on this concept when they cannot continue their work or take a break from career due to marriage or child birth.
    • Retired people can stay active after retirement as this will keep them engaged away from loneliness and depression and can earn as well on their own rather than depending on their children or pensions.
    • It offers flexibility and diversity to the workers. It offers flexibility when workers can work according to their convenience and schedule rather than routine like in full-time jobs.
    • The travel costs and energy to travel to the workplace is reduced.

    Why is Gig Economy preferred by Employers?

    • The efficiency, efficacy and productivity of workers in gig economy are much more than that of a stable full-time job.
    • More Economical for employers – When employment givers can’t afford to hire full-time workers, they hire people for specific projects and pay them.
    • Start-up companies and entrepreneurs – who do not have big financial space – can grow only if they can leverage the services of contract employees or freelancers.
    • In a gig economy, businesses save resources in terms of benefits, office space and training. (Reference – Whatis)
    • Competition and efficiency among workers improved.

    Challenges faced in Gig economy

    • There are no labour welfare emoluments like pension, gratuity, etc. for the workers.
    • Gig workers may face unfair termination. They may also attain minimum wages and less paid leave.
    • Workers do not have the bargaining power to negotiate a fair deal with their employers.
    • Unionization of workers will be difficult.
    • Confidentiality of documents etc of the workplace is not guaranteed
    • The gig economy is not accessible for people in many rural areas where internet connectivity and electricity is unavailable.
    • The social welfare objectives can be neglected if business and profitable avenues of freelancing are prioritized.

    What are the major impacts of the gig economy?

    • Gig economy companies had introduced innovative systems and methods to the labour market. These methods are offering workers flexibility and the freedom to choose how and when they work.
    • But this chaotic and amoebic environment has helped create an environment of exploitation where workers get minimal protection and low wages.
    • A government study in the UK recently established that a quarter of the people working in the country’s gig economy are being paid below the national minimum wage.
    • As most of the gig economy companies act as an aggregator and digital companies, their interaction with the labourers and customers is minimal.

    Gig Economy and the women empowerment

    • The women are considerably placed in a victimised position in the workplace. The flexibility that the gig economy offers women help to come out of the shackles of the male domination.
    • The financial independence is often considered as the first step towards the women empowerment. The labour of the women will be valued and paid worth for.
    • Rise and participation of the women in the job market would help in improving the indicators where women participation is considered the least and they will occupy roles as the decision makers.
    • But women due to lack of certain options are forced to perform the dual responsibility of work and home.
    • Dual exploitation faced as they are sandwiched between the familial and professional responsibilities where they have to forego their professional lives.

    Code on Social Security 2019

    • To aid gig workers, the govt passed the ‘Code on Social Security’, which will provide workers with life and disability cover, accidental insurance, health & maternity benefits old age protection and others.
    • Under this code, the central and state governments will primarily fund social security measures, with a nominal contribution (1-2% of their annual turnover) by the aggregator.
    • Also, the contribution made by the aggregator/platform will not exceed 5% of the amount payable to gig and platform workers.
    • In addition, the code proposed to establish a ‘National Social Security Board’, which will supervise and formulate schemes for the well-being of gig and platform workers.

    Way Forward

    • The gig economy has been on the rise and is expected to beat the pre-pandemic estimates due the expected influx of gig workers transitioning from full-time employment.
    • While the government has taken the initial steps to ensure social security of gig workers, the ‘Code on Social Security’ needs to be fine-tuned.
    • Further, all platform workers should be offered mandatory coverage under the Bharat Pradhan Mantri Jan Arogya Yojana, Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana.
      • This can be facilitated through the employer companies and will ensure employee protection; thus, guaranteeing a sustainable gig economy.
    • There should be revamped of employee policy assessments and evaluations. An effective evaluation process is required to ensure consistent and quality work, where customized assessment procedures need to be developed.
    • India should learn from developed countries like the US and basic training and courses on freelancing, etc. should be provided to people.
    • Career Avenues, choices, counselling should be available to students and workers on gig economy.
    • Companies will also need a human resource department that can manage a diverse workforce and imbue the company’s culture into gig workers.

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  • The Bilateral Investment Treaties (BITs) to review

    Context

    The report of the Standing Committee on External Affairs on ‘India and bilateral investment treaties (BITs)’ was presented to Parliament last month.

    Factor’s that necessitated the review of India’s BITs

    • Investor’s started suing India frequently: Since 2011, when India lost its first investment treaty claim in White Industries v. India, foreign investors have sued India around 20 times for alleged BIT breaches.
    • This made India the 10th most frequent respondent-state globally in terms of investor-state dispute settlement (ISDS) claims from 1987 to 2019 (UNCTAD).
    • Adoption of new Model BIT: India adopted a new Model BIT in 2016, which marked a significant departure from its previous treaty practice.
    • Negotiating new BITs: India is in the process of negotiating new investment deals (separately or as part of free trade agreements) with important countries such as Australia and the U.K.

    Recommendations of the Committee

    • 1] Speed of the existing negotiations: India has signed very few investment treaties after the adoption of the Model BIT.
    • It recommends that India expedite the existing negotiations and conclude the agreements at the earliest because a delay might adversely impact foreign investment.
    •  2] Sign more BIT’s in core sector: The committee recommends that India should sign more BITs in core or priority sectors to attract FDI.
    • Generally, BITs are not signed for specific sectors.
    •  It will require an overhauling of India’s extant treaty practice that focuses on safeguarding certain kinds of regulatory measures from ISDS claims rather than limiting BITs to specific sectors.
    • 3] Fine-tune Model BIT: Model BIT gives precedence to the state’s regulatory interests over the rights of foreign investors.
    • The Model BIT should be recalibrated keeping two factors in mind:
    • a) tightening the language of the existing provisions to circumscribe the discretion of ISDS arbitral tribunals.
    • b) striking a balance between the goals of investment protection and the state’s right to adopt bonafide regulatory measures for public welfare.
    • 4] Improve the capacity of government officials: The committee recommends bolstering the capacity of government officials in the area of investment treaty arbitration.
    •  While the government has taken some steps in this direction through a few training workshops, more needs to be done.
    • What is needed is an institutionalised mechanism for capacity-building through the involvement of public and private universities.
    • The government should also consider establishing chairs in universities to foster research and teaching activities in international investment law.

    Need to improve poor governance

    • A very large proportion of ISDS claims against India is due to poor governance.
    • This includes changing laws retroactively which led to Vodafone and Cairn suing India.
    • Annulling agreement in the wake of imagined scam which resulted in taking away S-band satellite spectrum from Devas.
    • The judiciary’s fragility in getting its act together (sitting on the White Industries case for enforcement of its commercial award for years).

    Suggestions

    • The Committee could have emphasised on greater regulatory coherence, policy stability, and robust governance structures to avoid ISDS claims.
    • The government should promptly assemble an expert team to review the Model BIT.

    Consider the question “India is one of the most frequent respondent-state globally in terms of investor-state dispute settlement (ISDS) claims. In context of this, examine the reasons for such frequent disputes and suggest the way forward.” 

    Conclusion

    The committee’s report on India’s BITs have novel suggestions, but it is lacking in several aspects.

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    Back2Basics: ISDS mechanism

    • Investor-state dispute settlement (ISDS) is a mechanism in a free trade agreement (FTA) or investment treaty that provides foreign investors, with the right to access an international tribunal to resolve investment disputes.
    •  ISDS promotes investor confidence and can protect against sovereign or political risk.
    • If a country does not uphold its investment obligations, an investor can have their claim determined by an independent arbitral tribunal, usually comprising three arbitrators.

  • Punishing Online Abusers of Women

    Taking cognizance of multiple complaints that photographs of women had been posted on a mobile app (with a very informal slang name) for fake auctions, the police in Delhi and Mumbai have registered cases.

    What is the controversy?

    • Hundreds of women in India including journalists, social workers, and other prominent personalities found their images and derogatory content about them on a new app.
    • The app was created on hosting platform Github, offered an online “auction” of women (esp from a particular community).
    • This controversy is part of the routine harassment women faced on social media in an increasingly polarized communal environment.

    Online Abuse of Women

    • Online abuse includes a diversity of tactics and malicious behaviors ranging from:
    1. Sharing embarrassing and cruel content about a person to impersonation
    2. Stalking and electronic surveillance
    3. Nonconsensual use of photography
    4. Violent threats and hate speech
    5. Defamation
    6. Flaming- use of vitriolic and hostile messages including threats, insults
    7. Trolling
    • The online harassment of women, sometimes called Cybersexism or cybermisogyny, is specifically gendered abuse targeted at women and girls online.
    • It incorporates sexism, racism and religious prejudice.

    Recent controversy: A critical case of abuse

    • The app is clearly an example of online trolling where the dignity and modesty of a woman is highly downgraded.
    • This has not been the very first time. Earlier, no arrests were ever made showing Police inaction.
    • The authorities were using the Mutual Legal Assistance Treaty (MLAT) to obtain information about the creators of such apps from California-based GitHub.

    Legal provisions against such Crimes

    For making arrests, the police have invoked Sections 153A, 153B, 295A, 354D, 500 and 509 of the Indian Penal Code (IPC) and Section 67 of the Information Technology Act.

    • Section 153A pertains to the offence of promoting enmity between different groups on grounds of religion, etc., and doing acts prejudicial to the maintenance of harmony
    • Section 153B relates to imputations, assertions prejudicial to national-integration
    • Section 295A provides punishment for deliberate and malicious acts intended to outrage religious feelings
    • Section 354D provides that any man who monitors the use by a woman of the internet, email or any other form of electronic communication with malintent, commits the offence of stalking.
    • Section 500 defines the punishment for defamation
    • Section 509 addresses the offence of word, gesture or act intended insulting the modesty of a woman
    • Section 67 of the IT Act lays down the punishment for publishing or transmitting obscene material in electronic form

    Penalty for such crime

    • The first conviction attracts imprisonment up to three years and fine up to ₹5 lakh and the second or subsequent conviction may lead to imprisonment up to five years and fine that may extend to ₹10 lakh.

    What are the other provisions related to cybercrimes?

    • Section 66E of the IT Act prescribes punishment for violation of privacy.
    • Also, sections 354A (sexual harassment and punishment for sexual harassment) and 354C (voyeurism) of the IPC were introduced along with sections 354B and 354D in 2013.
    • These may also be applied in conjunction with the relevant IT Act provisions, based on the nature of the offence.

    What are the responsibilities of intermediaries like social media platforms?

    • As of now, the intermediaries are not liable for any third-party data or communication link hosted or stored by them.
    • They are required to retain the requisite data for duration as prescribed by the Government and supply the same to the authorities concerned, as and when sought.
    • Any contravention attracts punishment as prescribed under the IT Act.

    Additional steps been taken

    • The Ministry of Electronics and Information Technology notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
    • Its provision —“Due diligence by intermediaries and grievance redressal mechanism” —requires them to inform their users not to host, display, upload, modify, publish, transmit, store, update or share any illegal information.
    • They include contents that are defamatory, obscene, pornographic, paedophilic, invasive of another’s privacy, insulting or harassing on the basis of gender, libellous, racially or ethnically objectionable, etc.
    • The intermediaries, on the direction of the court or appropriate government agency, are prohibited from hosting, storing or publishing any information declared unlawful.
    • Within 24 hours from the receipt of a complaint from, or on behalf of, an individual about any offensive content, they are required to take all reasonable and practicable measures to remove or disable access to it.

    Way forward

    • The government can take action beyond passing and enforcing platform regulations.
    • It can promote digital education to recognize and report inappropriate online conduct and to communicate respectfully online.
    • Social media companies have the primary responsibility to prevent the amplification of online abuse and disinformation.

    Conclusion

    • Gender-based harassment is marked by the intent of the harasser to denigrate the target on the basis of sex.
    • But this proliferation of online harassment of women has now incorporated religious polarization.
    • This is very harmful for the existing communal harmony of the nation in the long run.

     

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  • What is Inner Line Permit System (ILPS)?

    A petition has been filed in the Supreme Court opposing the implementation of the Inner Line Permit System (ILPS) in Manipur.

    What is Inner Line Permit?

    • A concept drawn by colonial rulers, the Inner Line separated the tribal-populated hill areas in the Northeast from the plains.
    • The concept originates from the Bengal Eastern Frontier Regulation Act (BEFR), 1873.
    • To enter and stay for any period in these areas, Indian citizens from other areas need an Inner Line Permit (ILP).
    • Arunachal Pradesh, Nagaland and Mizoram are protected by the Inner Line, and lately, Manipur was added (in December last year).

    Its’ Inception

    • The policy of exclusion first came about as a response to the reckless expansion of British entrepreneurs into new lands which threatened British political relations with the hill tribes.
    • The BEFR prohibits an outsider’s — “British subject or foreign citizen” — entry into the are beyond the Inner Line without a pass and his purchase of land there.
    • On the other hand, the Inner Line also protects the commercial interests of the British from the tribal communities.
    • After Independence, the Indian government replaced “British subjects” with “Citizen of India”.
    • Today, the main aim of the ILP system is to prevent settlement of other Indian nationals in the States where the ILP regime is prevalent, in order to protect the indigenous/tribal population.

    Why need ILP?

    • Despite the fact that the ILP was originally created by the British to safeguard their commercial interests, it continues to be used in India.
    • It aims to protect tribal cultures in northeastern India.
    • There are different kinds of ILP’s, one for tourists and others for people who intend to stay for long-term periods, often for employment purposes.
    • ILP’s valid for tourism purposes are granted as a matter of routine.

    Issues with ILP

    • It has been extensively used to restrict the entry of tribals.

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