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GS Paper: GS2

  • China’s Renaming Exercise Undermines International Law

    Central Idea

    • China’s recent move to rename 11 places in Arunachal Pradesh and standardise those names on the basis of a map is an exercise of the Chinese perspective of international law, which goes against the international law widely adhered to by most members of the United Nations.

    Historical Basis of China’s Claims

    • China’s claims over disputed territories, such as the South China Sea, are often based on historical records, maps, and cultural relics.
    • China argues that these territories had been its territory since the Song Dynasty and, therefore, should be considered part of its sovereign territory. However, this approach is not recognized under international law and undermines the basis of the international legal system.

    Chinese perspective of international law

    • Jurisdiction rights: The Chinese perspective of international law is based on its strong stress on the principle of sovereignty. According to this view, sovereign states have an inalienable right to exercise jurisdiction over their territories and their people without interference from other states.
    • Historic rights: China combines its vision of sovereignty with the historic right to exercise jurisdiction over those territories or maritime areas as well, which were once ruled by a Chinese dynasty in the mediaeval or ancient era.
    • Undermines international legal system: The historic right approach makes China undermine the basis of the international legal system grounded in the sovereign equality of states and the general rules of international law.

    Contravention of international courts and tribunals

    • Contravenes the decisions of international courts and tribunals: China’s attempt to rename 11 disputed locations on historical and administrative bases contravenes the decisions of international courts and tribunals.
    • No convincing proofs: The International Court of Justice (ICJ) considers direct evidence of possession and the actual exercise of sovereignty as more convincing proof of title to a territory than indirect presumption from events in history.
    • Against the principle of uti possidetis juris: China’s renaming exercise goes against the principle of uti possidetis juris, which is the principle that the boundaries of newly independent states should follow those of the previous colonies.
    • Help of cartographic materials: China tries to buttress its territorial and maritime claims with the support of maps, but cartographic materials do not have any legal value by themselves. They constitute extrinsic evidence of varying reliability that might, depending on the circumstances, be used together with other evidence to establish a fact.

    What is the principle of uti possidetis juris?

    • The principle of uti possidetis juris is a Latin phrase that means as you possess under law.
    • It is a principle of international law that was developed in the context of decolonization. The principle holds that newly independent states should inherit the territorial boundaries that existed at the time of their independence.
    • The idea is that the territorial integrity of a new state should be protected and that the boundaries of the state should not be subject to change without the consent of the state.
    • The principle of uti possidetis juris is meant to prevent disputes over territorial boundaries that could lead to instability or conflict.

    Implications of China’s actions

    • China’s actions in Arunachal Pradesh undermine the international legal system based on the sovereign equality of states and the general rules of international law.
    • China’s historic right approach to sovereignty over territories and maritime areas is a cause for concern for other countries with territorial disputes with China.
    • China’s use of maps to support its territorial and maritime claims is not a legally valid argument and undermines the legal basis for resolving territorial disputes.

    Conclusion

    • China’s attempt to rename disputed territories in Arunachal Pradesh goes against established principles of international law and undermines the sovereign equality of states. The use of historical claims and maps to support territorial and maritime claims is not recognized in international law. This renaming exercise is likely to further strain India-China relations and impact regional stability. It is essential to uphold the principles of international law to ensure the independence and stability of new states and prevent challenges to territorial boundaries.

    Mains Question

    Q. What is the principle of uti possidetis juris? How does China’s attempt to rename territories in Arunachal Pradesh contravene the decisions of international courts and tribunals?

  • Data Protection Bill in Monsoon Session

     

    data

     

    The Union government informed the Supreme Court that a new law, namely the Digital Personal Data Protection Bill, 2022, to enforce individual privacy in online space was “ready”.

    Legislation on ‘Data’: A Backgrounder

    • The personal data protection bill has been in the works for about five years.
    • The first draft of the Bill was presented by an expert panel headed by Justice B.N. Srikrishna in July 2018, after a year-long consultation process.

    Timeline of key events

    data

     

     

    • July 2018: After a year of consultations and deliberations, the PDP Bill, 2018, drafted by an expert committee headed by Justice BN Srikrishna, is presented to MeitY. Subsequently, MeitY begins drafting the next iteration of the Bill.
    • December 2019: The PDP Bill, 2019, prepared by MeitY, is referred to a Joint Parliamentary Committee (JPC) for review.
    • December 2021: After multiple extensions, and a leadership change, JPC Chairperson tabled the report of the JPC on the PDP Bill, 2019, as well as the draft Data Protection Bill 2021, in the parliament.
    • August 2022: On August 3 this year, MeitY withdrew the 2021 Bill, stating that a more “comprehensive legal framework” will be presented soon.

    DPDP Bill, 2022 is based on seven principles

    According to an explanatory note for the bill, it is based on seven principles-

    • Lawful use: The first is that “usage of personal data by organisations must be done in a manner that is lawful, fair to the individuals concerned and transparent to individuals.”
    • Purposeful dissemination: The second principle states that personal data must only be used for the purposes for which it was collected.
    • Data minimisation: Bare minimum and only necessary data should be collected to fulfill a purpose.
    • Data accuracy: At the point of collection. There should not be any duplication.
    • Duration of storage: The fifth principle talks of how personal data that is collected cannot be “stored perpetually by default,” and storage should be limited to a fixed duration.
    • Authorized collection and processing: There should be reasonable safeguards to ensure there is “no unauthorised collection or processing of personal data.”
    • Accountability of users: The person who decides the purpose and means of the processing of personal data should be accountable for such processing.

    Key features of the bill

    (1) Data Principal and Data Fiduciary

    • The bill uses the term “Data Principal” to denote the individual whose data is being collected.
    • The term “Data Fiduciary” the entity (can be an individual, company, firm, state etc.), which decides the “purpose and means of the processing of an individual’s personal data.”
    • The law also makes a recognition that in the case of children –defined as all users under the age of 18— their parents or lawful guardians will be considered their ‘Data Principals.’

    (2) Defining personal data and its processing

    • Under the law, personal data is “any data by which or in relation to which an individual can be identified.”
    • Processing means “the entire cycle of operations that can be carried out in respect of personal data.”
    • So right from collection to storage of data would come under processing of data as per the bill.

    (3) Individual’s informed consent

    • The bill also makes it clear that individual needs to give consent before their data is processed.
    • Every individual should know what items of personal data a Data Fiduciary wants to collect and the purpose of such collection and further processing.
    • Individuals also have the right to withdraw consent from a Data Fiduciary.
    • The bill also gives consumers the right to file a complaint against a ‘Data Fiduciary’ with the Data Protection Board in case they do not get a satisfactory response from the company.

    (4) Language of information

    • The bill also ensures that individuals should be able to “access basic information” in languages specified in the eighth schedule of the Indian Constitution.
    • Further, the notice of data collection needs to be in clear and easy-to-understand language.

    (5) Significant Data Fiduciaries

    • The bill also talks of ‘Significant Data Fiduciaries, who deal with a high volume of personal data.
    • The Central government will define who is designated under this category based on a number of factors ranging from the volume of personal data processed to the risk of harm to the potential impact on the sovereignty and integrity of India.

    (6) Data protection officer & Data auditor

    • Such entities will have to appoint a ‘Data protection officer’ who will represent them.
    • They will be the point of contact for grievance redressal.
    • They will also have to appoint an independent Data auditor who shall evaluate their compliance with the act.

    (7) Right to erase data, right to nominate

    • Data principals will have the right to demand the erasure and correction of data collected by the data fiduciary.
    • They will also have the right to nominate an individual who will exercise these rights in the event of death or incapacity of the data principal.

    (8) Cross-border data transfer

    • The bill also allows for cross-border storage and transfer of data to “certain notified countries and territories.”
    • However an assessment of relevant factors by the Central Government would precede such a notification.

    (9) Financial penalties

    • The draft also proposes to impose significant penalties on businesses that undergo data breaches or fail to notify users when breaches happen.
    • Entities that fail to take “reasonable security safeguards” to prevent personal data breaches will be fined as high as Rs 250 crore.
    • As per the draft, the Data Protection Board — a new regulatory body to be set up by the government — can impose a penalty of up to ₹500 crore if non-compliance by a person is found to be significant.

    What distinguishes this bill from its earlier versions?

    • Gender neutrality:  Significantly, and for the first time in the country’s legislative history, the terms ‘her’ and ‘she’ have been used irrespective of an individual’s gender. This, as per the draft, is in line with the government’s philosophy of empowering women.
    • Imbibes best global practices: To prepare it, best global practices were considered, including review of data protection legislations of Australia, European Union (EU), Singapore, and a prospective one of the USA.
    • Comprehensiveness: The draft has outlined six ‘Chapters’ and a total of twenty-five points. The ‘Chapters’ are: ‘Preliminary,’ ‘Obligations of Data Fiduciary,’ ‘Rights and Duties of Data Principal,’ ‘Special Provisions,’ ‘Compliance Framework,’ and ‘Miscellaneous.’
    • Special emphasis for child protection: If personal data is likely to cause harm to a child, its processing will not be allowed.

    Hits of the bills

    • Widening the scope of data: Narrowing the scope of the data protection regime to personal data protection is a welcome move, as it resonates with the concerns of various stakeholders.
    • Harnessing economic potential: Now non-personal data could be used to unlock social and economic value to benefit citizens, businesses, and communities in India with appropriate safeguards in place.
    • Doing away with aggressive push for Data localisation:  Relaxing data localisation provisions to notify countries to which data can flow, could aid India in unlocking the comparative advantage of accessing innovative technological solutions from across the globe, which in turn helps domestic companies.
    • Free flow of data: In addition, the free flow of data will help startups access cost-effective technology and storage solutions, as our research shows.
    • Allowing data transfers: This will also ensure that India is not isolated from the global value chain, helping businesses stay resilient in production and supply chain management and fostering overseas collaboration.

    Some criticisms of the bill

    • Wordplay: There had been use of open-ended language such as “as necessary” or “as may be prescribed”.
    • Govt monopoly: The Bill did not seem to work towards protecting people, but ensures that the government retains all power without any checks or balances.
    • Exemption provisions: The government has been given the power to exempt not only government agencies but any entity that is collecting user data, from having to comply with the provisions of this bill when it is signed into law.
    • No protection against data breach: The Executive in India has a track record of exploiting to expand its powers. There is no right for compensation to individuals in case of a data breach. They have no right to data portability.

    Conclusion

    • Crafting such crucial legislation is no mean task. It may require some more trial and error to succeed.
    • Definitely, it will involve some time and deliberation to arrive at a comprehensive legal framework.

     

     

  • Russia and China Aim To Build A Post-Western Order

    Central Idea

    • Russia and China aim to exploit divisions within the West to transform the global order and build a post-Western order. However, the Indian strategic community should not expect the fault lines within the West to be fatal, as history has shown that such dreams have not come to fruition.

    Post-Western Order

    • Building a post-Western order: Russia and China have talked of upending the world order before, with the history of international communism in the 20th century being about building a post-Western order.
    • America’s internal fissures and divisions between the US and Europe: While Moscow and Beijing are convinced that they can put the West on the defensive by pooling their strengths, the success of this strategy rests on the Moscow-Beijing axis successfully leveraging America’s internal fissures and divisions between the US and Europe.

    Dividing America from Europe

    • The Moscow and Beijing are hoping to divide America from Europe: Russia’s latest version of its foreign policy doctrine singles out the US as the main instigator, organizer, and executor of the aggressive anti-Russian policy of the collective West.
    • China’s diplomatic Europe strategy: China’s love for Europe’s strategic autonomy is equally passionate. However, it is unlikely that there will be a decisive movement on either issue, but both sides see the diplomatic dance as a valuable exercise.

    Sino-European Engagement

    • Europe’s pressure on Russia: Europe wants Xi to put pressure on Putin to end the war in Ukraine, and Beijing would like Europe to distance itself from the US on its China policy.
    • Europe not ready to busy China’s peace initiative: While Europe is not ready to buy China’s peace initiative on Ukraine, it has convinced itself that Xi is the only leader who can nudge Putin towards peace.

    India’s Perspective

    • The realists in India are aware of the many differences between the US and Europe, but they are also aware that Western strategic unity has endured since World War II.
    • The Russian and Chinese overreach has cemented broad Western unity rather than separating Europe from the US.

    Conclusion

    • While Russia and China aim to exploit divisions within the West to transform the global order, it is unlikely that they will succeed in building a post-Western order. The fault lines within the West are real, but they are by no means fatal.

  • Finland-NATO-Russia: Search For Ways To Lower The Tensions

    NATO

    Central Idea

    • Finland has become the 31st member of the North Atlantic Treaty Organization (NATO) and its decision to join the alliance should be viewed through the lens of conventional deterrence. The accession of Finland into NATO is a rational choice that may provide additional security guarantees and help to defend against possible aggression from Russia.

    Historical context of Finland-Russia relations

    • The relationship between Finland and Russia has been a combination of struggle and compromise, dating back nearly 200 years.
    • In 1809, the Russian Tsar Alexander I acquired Finland and made it an autonomous Grand Duchy of the Russian empire.
    • Between the two world wars, the Finns felt less threatened by Germany than by Russia.

    NATO

    Finland’s decision to join NATO

    • 31st NATO member: Finland has become the 31st member of NATO, triggering possible countermeasures from Russia.
    • Independent choice: The decision to join NATO is seen as an independent choice, triggered largely by the Russia-Ukraine conflict.
    • Security guarantee: Finland’s accession to NATO is a rational choice to receive additional security guarantees from the alliance. Article 5 of NATO’s founding treaty binds the members together, committing them to protect each other and setting a spirit of solidarity within the alliance.

    Preparations for defense against possible aggression

    • Defence against possible aggression: Even prior to its membership in NATO, Finland had been preparing to defend itself against possible aggression.
    • The Finnish system of conscription has generated sufficient resources for the army, navy, and air force to act effectively in a war situation.

    NATO

    Implications for India and the Arctic region

    • Real punch to the Western alliance in the Nordic region: Finland has maintained a small but capable armed force that is well-trained and resilient, and its inclusion in NATO adds real punch to the Western alliance in the Nordic region.
    • High north is commercial attraction: As the Arctic ice cap melts amidst global warming, the high north has become attractive commercially and contested geopolitically.
    • India is an observer of the Arctic Council: India is an observer of the Arctic Council that seeks to promote wide-ranging cooperation in the polar north.
    • China raising profile in the Arctic: The militarisation of the high north appears inevitable as Finland and Sweden turn from neutrals to Western allies and China raises its profile in the Arctic in partnership with Russia.
    • Global governance: This might make global governance of the Arctic region increasingly problematic

    Way ahead: The need for cautious behavior by NATO and Russia

    • Both NATO and Russia should exercise cautious behavior vis-à-vis each other to avoid further escalation of tensions.
    • Finland’s newly elected centre-right government should engage in bilateral dialogue with Russia, trying to understand each other’s security concerns.
    • There should be at least some NATO members who would be willing to rely more on diplomatic tools and lower the temperatures.

    NATO

    Conclusion

    • The decision of Finland to join NATO is seen as a rational choice, triggered largely by the Russia-Ukraine conflict. The accession of Finland into NATO should be viewed through the lens of conventional deterrence and could potentially persuade an adversary not to initiate a war. NATO and Russia should search for ways to lower the tensions and avoid implementing measures and imposing countermeasures.

    Mains Question

    Q. Finland has become the 31st member of NATO. In this light discuss the rationale behind this decision its implications.

  • India-U.S. relationship: Critical Next Six Months

    India-U.S.

    Central Idea

    • The India-U.S. relationship will be crucial in the next six months with engagements set to happen between the two countries on various forums like the G20, Quad, and I2U2.

    Divergence and Convergence

    • The appointment of Eric Garcetti as the U.S. Ambassador to India signals the potential for greater partnership, but there are also differences to be overcome.
    1. The U.S. may want India to change its stance on the Ukraine crisis.
    2. India may want a stronger position against China.
    • However, the two countries share strong areas of convergence such as
    1. The India-U.S. Initiative on Critical and Emerging Technology and
    2. The Indo-Pacific partnership aimed at promoting security, economic growth, and connectivity in the region.

    India-U.S.

    What is I2U2?

    • In July 2022, India, Israel, the United States (US), and the United Arab Emirates (UAE) in a hybrid summit announced the establishment of a new minilateral grouping called the I2U2.
    • The four countries envision their alliance as an ad-hoc, informal, issue-specific and geoeconomic initiative.

    Realignment of U.S. Supply Chains

    • Disrupted supply chains: In recent years, there has been growing interest in diversifying supply chains away from China due to geopolitical tensions, trade disputes, and concerns about over-reliance on a single country.
    • India is emerging as attractive destination: India’s growing consumer market makes it an attractive destination for U.S. businesses looking to expand their customer base.

    India-U.S.

    Ups and Downs in India-U.S. relationship

    • The India-U.S. relationship has had its ups and downs over time, with key moments such as the nuclear deal, liberalisation of markets, and the outsourcing of Indian techies for U.S. companies.
    • The U.S. has also played an important role in making India an IT superpower.
    • The two countries are also partners in combating climate change and aligned on the importance of space technology.

    Trust Deficit

    • In the past, there has been a trust deficit between India and the U.S., with Indians feeling that the U.S. has not always supported India and has instead supported Pakistan.
    • The U.S. has flagged issues related to terrorism, human rights, and democracy in India. However, the two countries can become stronger together by building on their strategic partnership.

    Conclusion

    • The next six months will be critical for India-U.S. ties, with both countries looking to enhance collaboration and partnership. While there are differences in opinions to be addressed, the two countries also share strong areas of convergence that can be leveraged to strengthen their strategic partnership.

    Mains Question

    Q. What is I2U2 initiative? Evaluate how does it fit into the broader context of the India- US relationship?

  • What do OPEC+ production cuts mean for India?

    opec

    OPEC+ countries announced a voluntary oil production cut of 1.16 million barrels per day, which could impact the Indian economy, which depends on oil imports for 85% of its energy needs.

    Recent trend in crude oil prices

    • Crude oil prices crashed in April 2020 due to the pandemic and recovered when economies opened up.
    • Subsequently, prices rocketed in early 2022, but then the global economy slowed and a recession in advanced markets looms large.
    • This has resulted in declining demand for crude oil from major economies, causing oil prices to start falling again.

    What is OPEC+?

    • OPEC+ is a group of oil-producing countries that cooperate to manage the global supply and prices of crude oil.
    • It is made up of the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC countries, including Russia, Mexico, Kazakhstan, and others.
    • OPEC was founded in 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • The organization’s primary objective was to coordinate and unify petroleum policies among member countries to secure fair and stable prices for petroleum producers and a regular supply for consumers.

    Key functions of OPEC+

    • Oil Production Regulation: OPEC+ regulates oil production of its member countries to ensure that oil prices remain stable and there is no oversupply or undersupply of oil in the market.
    • Price Control: It aims to control the price of crude oil by regulating the supply of oil to the market.
    • Market Monitoring: OPEC+ closely monitors the global oil market to understand the demand and supply dynamics of oil.
    • Coordination: OPEC+ member countries work together to make decisions on oil production levels, pricing policies, and other matters that impact the global oil market.
    • Research and Development: OPEC+ invests in research and development to explore new technologies and methods that can help member countries to produce oil more efficiently and sustainably.

    Reason behind recent production cuts

    • OPEC+ countries aim to support market stability by reducing oil supplies.
    • The recent production cuts, totalling 3.7% of global demand, will raise crude oil prices per barrel and help cover up the losses producer countries faced after prices crashed.

    Impact on Indian economy

    • India is the third-largest oil consumer and imports 85% of its total crude oil requirement.
    • The cut could raise crude by $10/barrel, increasing import bill and worsening the current account deficit by around 0.4% of GDP.
    • This will impact foreign exchange reserves and result in the depreciation of the rupee, which in turn can increase imported inflation.

    Impact on common people

    • If the rise in crude oil import bill is passed on to the public, it may lead to cost-push inflation as every economic activity gets affected by oil price movement.
    • On the flip side, state-controlled oil marketing companies may be stopped from passing on the increased burden to consumers, further worsening the financial balance of the oil public sector units.

    Alternatives for India

    • India can turn to Russia for more supplies of cheap crude, but of late there has been a small decline in Russia’s share in India’s oil imports.
    • As a long-term strategy, the government should focus on alternative energy sources and building better roads.
    • The government should work on bringing petroleum products within the goods and services tax, and promote energy-efficient use of vehicles or an eco-driving culture.

     

  • Set time limit to Governor to grant assent to Bills: TN urges Centre

    governor

    Central idea: The Tamil Nadu Legislative Assembly passed a resolution urging the Union Government to issue appropriate instructions to Governor to give his assent to bills passed by the Assembly within a specific period.

    Who is Governor?

    • Parallel to President: The Governors of the states of India have similar powers and functions at the state level as those of the President of India at the Central level.
    • Nominal head: The governor acts as the nominal head whereas the real power lies with the Chief Ministers of the states and her/his councils of ministers.
    • Similar offices: Governors exist in the states while Lieutenant Governors or Administrators exist in union territories including the National Capital Territory of Delhi.
    • Non-local appointees: Few or no governors are local to the state that they are appointed to govern.

    Governor-State Relations: How are they guided?

    • Acting on aid and advice: Although envisaged as an apolitical head who must act on the advice of the council of ministers, the Governor enjoys certain powers granted under the Constitution.
    • Discretion: He has monopoly for giving or withholding assent to a Bill passed by the state legislature, or determining the time needed for a party to prove its majority, or which party must be called first do so, generally after a hung verdict in an election.
    • Apparatus of interaction: There are no provisions laid down for the manner in which the Governor and the state must engage publicly when there is a difference of opinion. The management of differences has traditionally been guided by respect for each other’s boundaries.

    Role of Governor in Legislature

    • Integral part: A Bill passed by the State Assembly becomes law only after it is assented to by the Governor. The Governor being a part of the State legislature, the process of law making is complete only when he signs it, signifying his assent.
    • Established practice: In all democratic countries, similar provision exists in their constitutions.

    Power of Governor vis-a-vis legislature

    • What Article 200 says: The Constitution provides certain options for the Governor to exercise when a Bill reaches him from the Assembly.
    • There are four possible scenarios:
    1. Assent: He may give assent.
    2. Reconsider: He can send it back to the Assembly requesting it to reconsider some provisions of the Bill, or the Bill itself. In this case, if the Assembly passes the Bill without making any change and sends it back to the Governor, he will have to give assent to it.
    3. Reserve: The third option is to reserve the Bill for the consideration of the President.
    4. Withhold: The fourth option, of course, is to withhold the assent.

    Why there is ambiguity over the role of governors in India?

    • Role of the governor: The question of whether a Governor is permitted by the Constitution to cause uncertainty in the matter of giving assent to the Bills passed by State legislatures assumes great importance.
    • Presidential Assent: The provision concerned makes it clear that a Bill can be reserved for the consideration of the President only if the Governor forms an opinion that the Bill would endanger the position of the High Court by whittling away its powers. The Constitution does not mention any other type of Bill which is required to be reserved for the consideration of the President.
    • Constitution is silent: the Constitution does not mention the grounds on which a Governor may withhold assent to a Bill.
    • No remedy: The Indian Constitution, however, does not provide any such remedy as that of USA or UK. The courts too have more or less accepted the position that if the Governor withholds assent, the Bill will go. Thus, the whole legislative exercise will become fruitless. It does not square with the best practices in old and mature democracies.

    Various friction points

    In recent years, these have been largely about:

    1. Selection of the party to form a government
    2. Deadline for proving the majority
    3. Sitting on Bills
    4. Withhold of assents
    5. Passing negative remarks on the state administration

    Why does this happen?

    • Political appointment: This is because Governors have become political appointees. Politicians become Governors and then resign to fight elections.
    • Nature of appointment: In the Constitution, there are no guidelines for exercise of the Governor’s powers, including for appointing a CM or dissolving the Assembly.
    • Defying constituent assembly: The Constituent Assembly envisaged governor to be apolitical.
    • Nature of appointment: The CM is answerable to the people. But the Governor is answerable to no one except the Centre.
    • Constitutional vacuum: Once can sugercoat it with ideas of constitutional morality and values, but the truth is there is a fundamental defect in the Constitution.
    • Security of Tenure: There is no provision for impeaching the Governor, who is appointed by the President on the Centre’s advice. While the Governor has 5-year a tenure, he can remain in office only until the pleasure of the President.
    • Powers in legislation: There is no limit set for how long a Governor can withhold assent to a Bill.

    What reforms have been suggested?

    • From the Administrative Reforms Commission of 1968 to Sarkaria Commission of 1988 and the one mentioned above, several panels have recommended reforms, such as:
    1. Selection of the Governor through a panel comprising the PM, Home Minister, Lok Sabha Speaker and the CM,
    2. Fixing his tenure for five years
    3. Provision to impeach the Governor by the Assembly
    • No government has implemented any of these recommendations.

     

  • What is UN Democracy Fund?

    democracy

    Central Idea: The article provides an explanation of the UN Democracy Fund (UNDEF), its history and objectives, as well as the involvement of India and the United States in its establishment.

    Why in news?

    • There is a controversy surrounding the fund’s support for NGOs funded by George Soros, who is on a watchlist in India.
    • He had alleged the Adani turmoil will weaken Indian politics and lead to a “democratic revival” in the country.

    What is UN Democracy Fund?

    • The UNDEF was established in 2005 with an initial contribution of $10 million each from the United States and India.
    • Its aim is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • It is funded entirely by voluntary contributions from member states and is governed by an advisory board composed of 16 members representing different regions of the world.

    Role in promoting democracy and civil society

    • UNDEF’s mission is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • The fund solicits and receives up to 3,000 proposals from NGOs around the world each year.
    • An advisory board considers these proposals and recommends proposals for approval by the Secretary-General.
    • Between 30 to 50 projects are chosen every year, and in 15 rounds of funding so far, UNDEF has supported over 880 two-year projects in more than 130 countries.

    India’s involvement in the governance of UNDEF

    • India has been a member of the UNDEF advisory board since the fund’s inception.
    • The board is composed of 16 members representing different regions of the world, and it includes the eight largest member state contributors and six other states to reflect diverse geographical representation, including one “small island” and developing states.
    • It also has two individual members and two CSOs.
    • The CSOs currently serving on the board include CIVICUS and Transparency, Accountability and Participation Network.

    India’s involvement in the establishment of UNDEF

    • India played a key role in the establishment of UNDEF as it was one of the founding members of the fund.
    • In 2005, India’s then PM, Manmohan Singh, and US President George W. Bush announced the US-India Global Democracy Initiative, which included support for the UNDEF.
    • India has contributed to the fund on several occasions since its inception, although its contributions have decreased in recent years.

    Contradictions with UNDEF

    • India’s relationship with UNDEF has been marked by contradictions.
    • While India has supported the fund and contributed to it, it has also put George Soros on a watchlist in India while UNDEF has no objections to the fund giving grants to NGOs funded by Soros.
    • This underscores a contradiction between the imperatives of the Modi government’s high table diplomacy and its domestic political ideology.
    • It requires only Delhi to deploy a soft touch in the former while playing hardball at home for domestic audiences.

    India’s contribution so far

    • India has contributed to UNDEF on several occasions since its inception, although its contributions have decreased in recent years.
    • India gave $5 million to the fund in 2005, 2006, 2008, 2009 and 2011, but no contribution was made in 2007 and 2010.
    • The contributions began dipping from 2012, with the amount being $4.71 million that year.
    • In 2014, India slashed its funding, contributing only $200,000 that year and in 2015.
    • In 2016, it was a mere $50,000, and no contribution was made in 2017.
    • In 2018 and 2019, India was back with $100,000, and in 2020, 2021 and 2022, it gave $150,000.

     

  • How is a ‘National Party’ in India defined?

    The Election Commission of India recognised the Aam Aadmi Party (AAP) as a national party, while revoking the status of the All India Trinamool Congress, Nationalist Congress Party (NCP) and the Communist Party of India (CPI).

    What is National Party?

    • The name suggests that a national party would be one that has a presence ‘nationally’, as opposed to a regional party whose presence is restricted to only a particular state or region.
    • National parties are usually India’s bigger parties.
    • However, some smaller parties, like the communist parties, are also recognised as national parties in India.
    • A certain stature is sometimes associated with being a national party, but this does not necessarily translate into having a lot of national political clout.

    How is a political party defined?

    The ECI’s Political Parties and Election Symbols, 2019 handbook species following criteria:

    National Party Definition

    For recognition as a “National Party” in India, the conditions specified are:

    1. a 6% vote share in the last Assembly polls in each of any four states, as well as four seats in the last Lok Sabha polls; or
    2. 2% of all Lok Sabha seats in the last such election, with MPs elected from at least three states; or
    3. Recognition as a state party in at least four states.

    For recognition as a “State Party”, any one of five conditions needs to be satisfied:

    1. two seats plus a 6% vote share in the last Assembly election in that state; or
    2. one seat plus a 6% vote share in the last Lok Sabha election from that state; or
    3. 3% of the total Assembly seats or 3 seats, whichever is more; or
    4. one of every 25 Lok Sabha seats (or an equivalent fraction) from a state; or
    5. an 8% state-wide vote share in either the last Lok Sabha or the last Assembly polls.

    Benefits for recognized National Parties in India

    • This is subject to the fulfillment of the conditions prescribed by the Commission in the Election Symbols (Reservation and Allotment) Order, 1968.

    (a) Reserved Symbol

    • If a party is recognised as a ‘state party’, it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it in the state in which it is so recognised.
    • If a party is recognised as a ‘national party’ it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it throughout India.

    (b) Proposer for nomination

    • Recognised ‘state’ and ‘national’ parties in India need only one proposer for filing the nomination.

    (c) Campaigning benefits

    • National Parties in India are also entitled for two sets of electoral rolls free of cost and broadcast/telecast facilities over state-owned Akashvani/Doordarshan during the general elections.

     

  • 16th Finance Commission to be constituted in November

    The Union government is gearing up to constitute the Sixteenth Finance Commission in November this year to recommend the formula for sharing revenues between the Centre and the States for the five-year period beginning 2026-27.

    What is the Finance Commission?

    • The Finance Commission (FC) was established by the President of India in 1951 under Article 280 of the Indian Constitution.
    • It was formed to define the financial relations between the central government of India and the individual state governments.
    • The Finance Commission (Miscellaneous Provisions) Act, 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
    • As per the Constitution, the FC is appointed every five years and consists of a chairman and four other members.
    • Since the institution of the First FC, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the FC’s recommendations over the years.

    Constitutional Provisions

    Several provisions to bridge the fiscal gap between the Centre and the States were already enshrined in the Constitution of India, including Article 268, which facilitates levy of duties by the Centre but equips the States to collect and retain the same.

    Article 280 of the Indian Constitution defines the scope of the commission:

    1. Who will constitute: The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
    2. Qualifications: Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection.
    3. Terms of references: The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

    Important functions

    • Devolution of taxes: Distribution of net proceeds of taxes between Center and the States, to be divided as per their respective contributions to the taxes.
    • Grants-in-aid: Determine factors governing Grants-in-Aid to the states and the magnitude of the same.
    • Augment states fund: To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance committee of the state.
    • Any financial function: Any other matter related to it by the president in the interest of sound finance.

    Members of the Finance Commission

    • The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards.
    • It laid down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers.
    • The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who:
    1. Are, or have been, or are qualified, as judges of a high court,
    2. Have knowledge of government finances or accounts, or
    3. Have had experience in administration and financial expertise; or
    4. Have special knowledge of economics

    Key challenges ahead for 16th FC

    • Overlap with GST Council: A key new challenge for the 16th FC would be the co-existence of another permanent constitutional body, the GST Council.
    • Conflict of interest: The GST Council’s decisions on tax rate changes could alter the revenue calculations made by the Commission for sharing fiscal resources.
    • Feasibility of recommendations: Centre usually takes the Commission’s recommendations on States’ share of tax devolution and the trajectory for fiscal targets into account, and ignores most other suggestions.

    Major outstanding recommendations

    • Creating a Fiscal Council: The 15th FC has suggested creating a Fiscal Council where Centre and States collectively work out India’s macro-fiscal management challenges, but the government has signalled there is no need for it, he pointed out.
    • Creating a non-lapsable fund for internal security: The centre accepted to set up a non-lapsable fund for internal security and defense ‘in principle’, its implementation still has to be worked out.