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GS Paper: GS2

  • Bringing Business friendly Industrial Laws

    Business

    Context

    • The government’s proposal to bring a “holistic decriminalisation” bill in the Winter Session of Parliament, If gets enacted into law, it will be one of India’s greatest reforms since 1991. One of the objectives of this proposed law is to “end harassment and reduce compliance burden on businesses.

     What is Holistic decriminalisation Bill?

    • A new holistic decriminalisation bill is set to amend burdensome provisions in laws related to businesses.
    • Union Minister of Commerce and Industry, Piyush Goyal said that the Decriminalising sections of various laws will end the harassment faced by businesses and reduce compliance burden. Seeking quick industry feedback on problematic areas that can be covered in the proposed Bill.

    What is the status of existing laws in India?

    • Burden of Imprisonment clauses: Business regulatory universe comprises 1,536 laws, of which more than half, or 843 laws, carry imprisonment clauses. Under these laws, there are 69,233 compliances businesses face as an aggregate, of which almost two out of five, or 26,134, carry imprisonment clauses.
    • Union and state legislations on the compliance: Of the 843 laws with imprisonment clauses, 28.9 percent, or 244 laws, have been enacted by Parliament; the rest by State legislatures and rules. Of the 26,134 compliances that carry imprisonment clauses, a fifth, or 5,239 clauses are situated in Union laws.
    • No institutional support for informal sector: Of the 69 million enterprises in India, only 1 million are formal employers; as a result, the remaining informal enterprises get no access to institutional capital, talent, or supply chains.
    • Smaller the better attitude: India’s predatory and rent-seeking policy infrastructure ensures that businesses choose to remain under the regulatory radar—small may not be beautiful but it is certainly safe. For instance, a small business with 150 employees or more has to deal with 500 to 900 compliances a year, on which it can end up spending up to INR 12-18 lakhs by hiring consultants to be compliant with labour laws, taxes, factories, and so on.
    • Burden of compliance is cost-effective: Creating a regulatory bias against small businesses once a line of scale is crossed, managing a compliance department becomes cost-effective; until then, for the small business owner-manager, compliances becomes a risk-management strategy, almost an economic activity.

    Business

    Why such reforms in business laws are necessary?

    • To attract more investment: When viewed through the lens of the government’s intention to make India an investment destination for global and domestic capital, it would be a reform that should end the endemic of harassment, corruption, and rent-seeking by officials of the Union government.
    • To end corruption at state level: Corruption by officials of state governments will end when criminal provisions in State laws and rules get similarly rationalised; some of these will get rationalised with amendments to Union laws that are enforced by state governments.
    • Encouraging the entrepreneurial spirit: Regulatory framework is cumulative policy actions of the three arms of the State the executive, the legislature, and the judiciary using instruments of legislations, rules, regulations, or orders, to create or raise barriers to a smooth flow of ideas, organisation, money, and, most importantly, the flow of the entrepreneurial spirit.

    Business

    What are the recommendations for Holistic decriminalization?

    • Amend the overreaching laws: Reform all compliances with overarching legislation, across ministries and departments. Smaller steps being taken to ease doing business in India, such as shifting the responsibility under the Legal Metrology Rules from directors to executives, should converge into this single bill.
    • There should be Justifiable imprisonment: Use criminal penalties in business laws with extreme restraint the idea of using a criminal clause as a default option should be done away with and replaced by a justification for imprisonment, including the term in jail.
    • Ending the criminalisation: End the criminalisation of all compliance procedures such as filing on a wrong form or mislabelling.
    • Introducing new laws: Introduce sunset clauses for all imprisonment clauses this needs a new enabling law as a precursor.
    • Bringing extensive Digitisation: Digitise all compliance filings, as has been done by the income tax department.
    • Focus on paperless work: Convert every department that acts as a regulatory body to go paperless and faceless. This should look beyond merely creating a website and uploading records. This will enable automated record reconciliation, identify leakages, detect frauds, and flag discrepancies.
    • More such steps in the right direction: By reducing the compliance burden such that it ends harassment, the government is moving in the right direction. To prevent any policy holes left after the passage of the bill into an act, this is a law that needs to be studied hard, debated well, and only then enacted. Of course, there will be political opposition. It is up to the government to ignore the rhetoric and embrace the solutions for the greater good of the country.

    BusinessConclusion

    • The country is getting ready for third-generation reforms. Among them are reforms that rationalise compliances and imprisonment clauses—retain a handful, reduce or remove most, compound the rest and turn physical imprisonment into financial penalties. The Inspector Raj, expressed through the colonial, corrupt, and rent-seeking policy infrastructure, must be disassembled and jobs, wealth, and large enterprises created.

    Mains Question

    Q. Why current industrial policy and laws are causing the harassment of entreprenuers? Discuss the reforms needed in the light of proposed “ Holistic Discrimination” Bill.

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  • Justice DY Chandrachud nominated as next CJI

    cji

    Chief Justice of India U.U. Lalit nominated Justice D.Y. Chandrachud as his successor. He will be 50th CJI.

    How is CJI selected?

    • Justice U.U. Lalit is the senior-most judge in the Supreme Court now.
    • The ‘Memorandum of Procedure of Appointment of Supreme Court Judges’ says “appointment to the office of the CJI should be of the seniormost Judge of the SC considered fit to hold the office”.
    • The process begins with the Union Law Minister seeking the recommendation of the outgoing CJI about the next appointment.

    What is the time frame?

    • The Minister has to seek the CJI’s recommendation at the “appropriate time”.
    • The Memorandum does NOT elaborate or specify a timeline.

    Making final appointment

    The Memorandum says:

    1. Receipt of the recommendation of the CJI
    2. The Union Minister of Law, Justice and Company Affairs will put up the recommendation to the PM
    3. PM will advise the President in the matter of appointment
    4. The President of India appoints the CJI

    Chief Justice of India: A brief background

    • The CJI is the chief judge of the Supreme Court of India as well as the highest-ranking officer of the Indian federal judiciary.

    Appointment

    • The Constitution of India grants power to the President to nominate, and with the advice and consent of the Parliament, appoint a chief justice, who serves until they reach the age of 65 or until removed by impeachment.
    • Earlier, it was a convention to appoint seniormost judges.
    • However, this has been broken twice. In 1973, Justice A. N. Ray was appointed superseding 3 senior judges.
    • Also, in 1977 Justice Mirza Hameedullah Beg was appointed as the chief justice superseding Justice Hans Raj Khanna.

    Qualifications

    The Indian Constitution says in Article 124 (3) that in order to be appointed as a judge in the Supreme Court of India, the person has to fit in the following criteria:

    • He/She is a citizen of India and
    • has been for at least five years a Judge of a High Court or of two or more such Courts in succession; or
    • has been for at least ten years an advocate of a High Court or of two or more such Courts in succession; or
    • is, in the opinion of the President, a distinguished jurist

    Functions

    • As head of the Supreme Court, the CJI is responsible for the allocation of cases and appointment of constitutional benches which deal with important matters of law.
    • In accordance with Article 145 of the Constitution and the Supreme Court Rules of Procedure of 1966, the chief justice allocates all work to the other judges.

    On the administrative side, the CJI carries out the following functions:

    • maintenance of the roster; appointment of court officials and general and miscellaneous matters relating to the supervision and functioning of the Supreme Court

    Removal

    • Article 124(4) of the Constitution lays down the procedure for removal of a judge of the Supreme Court which is applicable to chief justices as well.
    • Once appointed, the chief justice remains in the office until the age of 65 years. He can be removed only through a process of removal by Parliament as follows:
    • He/She can be removed by an order of the President passed after an address by each House of Parliament supported by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present.
    • The voting has been presented to the President in the same session for such removal on the ground of proven misbehavior or incapacity.

     

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  • Israel and Lebanon reach an Agreement on Maritime Border

    israel

    Israel has reached a US-brokered agreement with Lebanon to settle their long-disputed maritime border. This has been seen as a historic deal.

    Israel-Lebanon Boundary Issue

    • The draft agreement aims to settle Israel and Lebanon’s competing claims over offshore gas fields in the region.
    • A major source of friction was the Karish gas field, which Israel insisted fell entirely within its waters and was not a subject of negotiation.
    • The issue is a little over a decade old, after the two countries declared overlapping boundaries in 2011 in the Mediterranean Sea.
    • Since both countries have been technically at war, the United Nations was asked to mediate.
    • The issue gained significance after Israel discovered two gas fields off its coast a decade ago, which experts had believed could help turn it into an energy exporter.

    Key terms of the Agreement

    • The agreement seeks to resolve a territorial dispute in the eastern Mediterranean Sea, in an area that Lebanon wants to explore for natural gas.
    • The gas field in question is located on the maritime boundary between the two countries and this agreement would allow both countries to get royalties from the gas.
    • It also sets a border between the maritime waters of Lebanon and Israel for the first time.

    Why is this agreement signed?

    • Averting terror threats: The agreement is expected to avert the immediate threat of conflict between Israel and Hezbollah militants in Lebanon, after fears of escalation if negotiations fell apart.
    • Energy exploitation: The agreement will create new sources of energy and income for both countries, particularly important for Lebanon, which is facing a crippling energy and financial crises.
    • Alternative energy for Europe: It could also have a potentially wider impact: it would likely provide Europe with a potential new source of gas amid energy shortages caused by the Russian invasion of Ukraine.

    What the agreement does not address?

    Ans. Blue Line Issue

    • The agreement does not touch on the shared land border between Israel and Lebanon, which is still disputed, but where both countries are committed to a ceasefire.
    • This border is also called the Blue Line, a boundary that was drawn up by the UN after Israel withdrew from southern Lebanon in 2000.
    • This land border is currently patrolled by the United Nations forces.

     

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  • UN World Geospatial Information Congress (UNWGIC)

    UNWGIC

    PM has inaugurated the second United Nations World Geospatial Information Congress (UNWGIC) in Hyderabad.

    What is UNWGIC?

    • The first United Nations World Geospatial Information Congress was held in Deqing, Zhejiang Province, China in 2018.
    • The United Nation Committee of Experts on Global Geospatial Information Management (UN-GGIM) organizes the UNWGIC every four years.
    • It is hosted by the Ministry of Science and Technology of the Government of India.
    • The objectives are enhancing international collaboration among the Member States and relevant stakeholders in Geospatial information management and capacities.
    • The theme of UNWGIC 2022 is ‘Geo-Enabling the Global Village: No one should be left behind’.

    Objectives of UNWGIC

    • The move aims to provide high-quality and trustworthy geospatial data to support global and national policy agendas.
    • It also stresses international cooperation and coordination in the development of human data linked to geography.
    • It promotes societal development and well-being, addresses environmental and climate challenges, and embraces digital transformation and technological advancement.

    Why collaborate on geospatial technology?

    • Geospatial technology can be used to create intelligent maps and models which help to collect geographically referenced data.
    • Decisions based on the value and importance of resources, most of which are limited, can become easy through geospatial technology.
    • Intelligent maps and models can be created using geospatial technology.
    • It can be used to reveal spatial patterns hidden in large amounts of data that are complex to access collectively through mapping.

     

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  • Back in news: Supreme Court Collegium

    The Supreme Court Collegium has issued an unprecedented statement acknowledging differences between Chief Justice of India and two senior judges over the procedure to select candidates for appointment as apex court judges.

    What is the news?

    • Two senior judges of the apex court objected to the CJI’s never-before act of circulating his written recommendations among the collegium members for their approval.
    • The standard procedure instead is to have adopt across-the-table discussions.

    What is the issue over this?

    • CJI Lalit is slated to retire on 8
    • As per the Supreme Court convention, the outgoing CJI does not hold collegium meetings when the appointment of his successor has already started.

    What exactly is the Collegium System?

    • The collegium system was born out of years of friction between the judiciary and the executive.
    • The hostility was further accentuated by instances of court-packing (the practice of changing the composition of judges in a court), mass transfer of HC judges and two supersessions to the office of the CJI in the 1970s.
    • The Three Judges cases saw the evolution of the collegium system.

    Evolution: The Judges Cases

    • First Judges Case (1981) ruled that the “consultation” with the CJI in the matter of appointments must be full and effective.
    • However, it rejected the idea that the CJI’s opinion, albeit carrying great weight, should have primacy.
    • Second Judges Case (1993) introduced the Collegium system, holding that “consultation” really meant “concurrence”.
    • It added that it was not the CJI’s individual opinion, but an institutional opinion formed in consultation with the two senior-most judges in the Supreme Court.
    • Third Judges Case (1998): On a Presidential Reference for its opinion, the Supreme Court, in the Third Judges Case (1998) expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues.

    How does the collegium system work?

    • The collegium of the CJI and four senior-most judges of the Supreme Court make recommendations for appointments to the apex court and High Courts.
    • The collegium can veto the government if the names are sent back by the latter for reconsideration.
    • The basic tenet behind the collegium system is that the judiciary should have primacy over the government in matters of appointments and transfers in order to remain independent.

    The procedure followed by the Collegium

    Appointment of CJI

    • The President of India appoints the CJI and the other SC judges.
    • As far as the CJI is concerned, the outgoing CJI recommends his successor.
    • In practice, it has been strictly by seniority ever since the supersession controversy of the 1970s.
    • The Union Law Minister forwards the recommendation to the PM who, in turn, advises the President.

    Other SC Judges

    • For other judges of the top court, the proposal is initiated by the CJI.
    • The CJI consults the rest of the Collegium members, as well as the senior-most judge of the court hailing from the High Court to which the recommended person belongs.
    • The consultees must record their opinions in writing and it should form part of the file.
    • The Collegium sends the recommendation to the Law Minister, who forwards it to the Prime Minister to advise the President.

    For High Courts

    • The CJs of High Courts are appointed as per the policy of having Chief Justices from outside the respective States. The Collegium takes the call on the elevation.
    • High Court judges are recommended by a Collegium comprising the CJI and two senior-most judges.
    • The proposal, however, is initiated by the Chief Justice of the High Court concerned in consultation with two senior-most colleagues.
    • The recommendation is sent to the Chief Minister, who advises the Governor to send the proposal to the Union Law Minister.

    Does the Collegium recommend transfers too?

    • Yes, the Collegium also recommends the transfer of Chief Justices and other judges.
    • Article 222 of the Constitution provides for the transfer of a judge from one High Court to another.
    • When a CJ is transferred, a replacement must also be simultaneously found for the High Court concerned. There can be an acting CJ in a High Court for not more than a month.
    • In matters of transfers, the opinion of the CJI “is determinative”, and the consent of the judge concerned is not required.
    • However, the CJI should take into account the views of the CJ of the High Court concerned and the views of one or more SC judges who are in a position to do so.
    • All transfers must be made in the public interest, that is, “for the betterment of the administration of justice”.

    Loopholes in the Collegium system

    • Lack of Transparency: Opaqueness and a lack of transparency, and the scope for nepotism are cited often.
    • Judges appointing Judge: The attempt made to replace it with a ‘National Judicial Appointments Commission’ was struck down by the court in 2015 on the ground that it posed a threat to the independence of the judiciary.
    • Criteria: Some do not believe in full disclosure of reasons for transfers, as it may make lawyers in the destination court chary of the transferred judge. It has even been accused of nepotism.

    Way ahead

    • In respect of appointments, there has been an acknowledgment that the “zone of consideration” must be expanded to avoid criticism that many appointees hail from families of retired judges.
    • The status of a proposed new memorandum of procedure, to infuse greater accountability, is also unclear.
    • Even the majority of opinions admitted the need for transparency, now Collegiums’ resolutions are now posted online, but reasons are not given.

     

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  • Mental health in India

    10th October, yesterday was observed as World Mental Health Day.

    What is the news?

    • The Lancet released a new report calling for radical action to end stigma and discrimination in mental health.
    • It stated that 90% of people living with mental health conditions feel negatively impacted by stigma and discrimination.

    Mental Illness in India

    • Mental disorders are now among the top leading causes of health burden worldwide, with no evidence of global reduction since 1990.
    • In 2017, an estimation of the burden of mental health conditions for the states across India revealed that as many as 197.3 million people required care for mental health conditions.
    • This included around 45.7 million people with depressive disorders and 44.9 million people with anxiety disorders.
    • The situation has been exacerbated due to the Covid-19 pandemic, making it a serious concern the world over.

    Reasons for Persistence of Mental Illness

    • Stigma to seek help: The staggering figures are void of millions of others directly, or indirectly impacted by the challenge and those who face deep-rooted stigma, many times rendering them unable to seek help.
    • Lack of awareness: This growing challenge in dealing with mental health issues is further compounded by a lack of information and awareness, self-diagnosis, and stigma.
    • Psycho-social factors: Institutions like gender, race, and ethnicity, are also responsible for mental health conditions.
    • Post-Treatment gap: There is a need for proper rehabilitation of mentally ill persons post/her treatment which is currently not present.
    • Rise in Severity: Mental health problems tend to increase during economic downturns, therefore special attention is needed during times of economic distress.

    Need for immediate intervention

    • Neglected Area: Mental health which forms the core of our personhood is often neglected which impeded the development of an individual to full potential.
    • Disproportionate impact: It is the poor, dispossessed and marginalised who bear the greatest burden of mental health problems, but historically their sufferings are dismissed as a natural extension of their social and economic conditions.
    • Vulnerability of the ills: Mentally ill patients are vulnerable to and usually suffer from drug abuse, wrongful confinement, even at homes and mental healthcare facilities which is a cause of concern and a gross human right violation.
    • Suicidal tendencies: Suicidal behavior was found to have relation with female gender, working condition, independent decision making, premarital sex, physical abuse and sexual abuse.
    • Gendered nature: Females are more predisposed to mental disorders due to rapid social change, gender discrimination, social exclusion, gender disadvantage like marrying at young age, concern about the husband’s substance misuse habits, and domestic violence.

    Policy initiatives

    • National Mental Health Program (NMHP): To address the huge burden of mental disorders and shortage of qualified professionals in the field of mental health, the government has been implementing the NMHP since 1982.
    • Mental HealthCare Act 2017: It guarantees every affected person access to mental healthcare and treatment from services run or funded by the government.
    • Rights of Persons with Disabilities Act, 2017: The Act acknowledges mental illness as a disability and seeks to enhance the Rights and Entitlements of the Disabled and provide an effective mechanism for ensuring their empowerment and inclusion in the society
    • Manodarpan Initiative: An initiative under Atmanirbhar Bharat Abhiyan aims to provide psycho-social support to students for their mental health and well-being.

    Way Forward

    • Policy boost: Mental health situation in India demands active policy interventions and resource allocation by the government.
    • Public sensitization: To reduce the stigma around mental health, we need measures to train and sensitize the community/society.
    • Awareness: People should be made aware of the significance of mental health, as much as that of physical health.
    • Destigmatising: Sharing one’s story about mental health (through media campaigns) is the most effective strategy to reduce stigma attached with mental illness
    • Community Approach: There is need to deploy community health workers who, with appropriate training and supervision, effectively deliver psychosocial interventions for the needy
    • Broadening the scope: Mental health care must embrace the diversity of experiences and strategies which work, well beyond the narrow confines of traditional biomedicine with its emphasis on “doctors, diagnoses, and drugs”.

     

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  • Pakistan to take part in SCO anti-terror exercise hosted by India

    Pakistan has been invited to the closing ceremony of the ongoing Joint Anti-Terror Exercise (JATE) within the ambit of the Shanghai Cooperation Organisation (SCO) being hosted by India.

    What is the news?

    • The National Security Guard (NSG) is hosting the multinational JATE “Manesar Anti-Terror 2022”, under the framework of the SCO Regional Anti-Terrorist Structure (RATS).
    • Pakistan team would be participating in the event as a member of the SCO.

    What is SCO RATS?

    • Regional Anti-Terrorist Structure (RATS) is a permanent organ of the SCO which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism.
    • It is headquartered in Tashkent.
    • Its head is elected to three-year term.
    • Each member state of SCO sends permanent representative to RATS

    About Shanghai Cooperation Organization’s (SCO)

    • The SCO, in which China plays an influential role, is also comprised of Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India and Pakistan.
    • India and Pakistan were admitted into the bloc in 2017.
    • It is Eurasian economic, political and security organisation headquartered in Beijing, China.
    • Its main objective is military cooperation between member states.
    • It is primarily centred on security-related concerns of Central Asian members with main threats being terrorism, separatism and extremism.
    • It was established in June 2001 as a successor of Shanghai Five mechanism which was established in 1996 with China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan as members.
    • Iran, Afghanistan, Belarus and Mongolia enjoy observer status of SCO.
    • Turkey, Azerbaijan, Armenia, Cambodia, Sri Lanka and Nepal are dialogue partners of SCO.

     

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  • Classifying Merit and Non merit Freebies

    FreebieContext

    • The debate that began with an RBI 2022 report on state finances followed by Prime Minister Narendra Modi’s comment on revdi culture aka freebies, has garnered substantial attention so much so that the Supreme Court is hearing on this issue. Freebies have now assumed more importance than ever.

    What are freebies?

    • Freebies could be defined as non-merit subsidies. The term Freebies is not new; rather it is a prevalent culture in Indian politics (in the name of socialism).
    • The political parties are always trying to outdo each other in luring the Indian voters with freebies.

    What are Subsidies?

    • Subsidies are money transfers (implicit or explicit) by the government in an attempt to drive prices artificially below market prices.
    • As a National Institute of Public Finance and Policy (NIPFP) study by Sudipto Mundle and Satadru Sirkar puts it, budget subsidies, in particular, are defined as the unrecovered cost of economic and social services.
    • However, all subsidies cannot be easily classified into merit or non-merit.

    FreebieWhat are the objectives behind providing freebies?

    • Welfare state: It could be said that providing freebies empowers the state to, first, deliver welfare as a welfare state should, by providing subsidised merit goods like health and education;
    • Combating poverty: To help households combat poverty (especially in economically stressed times characterised by fewer job opportunities, lower incomes, high inflation, etc.) by providing subsidised public goods like food, electricity, etc.
    • Populist spending: To appeal to the electorate through outright populist spending.

    Question of classification between a merit and a non-merit freebies?

    • Blur Boundary: The boundaries between the aforementioned objectives begin to blur when it comes to classifying one form of freebie as a merit or a non-merit subsidy.
    • Few examples: Are corporate tax cuts non-merit subsidies or a measure to boost investment? 2. Is making bus rides free for women in the national capital a non-merit subsidy or a way to boost women’s mobility and labour-force participation? 3. Are free laptops to students in Tamil Nadu not a way to bridge the digital divide in education?
    • Varying definition: The existing arguments develop an understanding that freebies cannot be defined in a finite context, and that the definition varies across space and economic conditions.

    FreebieHow freebies impact revenue of the state?

    • Adverse impact on revenues: Regardless of which one gets classified as good or bad, freebies are simply expenditures or foregone revenues. Any freebie-induced debt burden could have an adverse effect on the state finances if, one, it hasn’t been properly accounted for through transparent budgeting procedures (including off-budget borrowings in debt calculations)
    • Increase in Fiscal deficit: Either way, they lead to an increase in fiscal deficit whose financing could necessitate taking on debt. It threatens fiscal sustainability, i e, it limits the state’s ability to service its debt-related commitments without making an unrealistic fiscal adjustment.
    • Lack of data leading to leakages: The targeting of beneficiaries to ease the burden on the exchequer is one way to check these expenditures but lack of data has forced a situation wherein leakages and duplication of beneficiaries is commonplace.
    • Jeopardises long-term growth and development: In the absence of adequate avenues of revenue mobilisation, any fiscal adjustment achieved by contracting critical expenditures on the social sector and capital formation further jeopardises long-term growth and development. The emanating risk of fiscal sustainability means a “revdi” today would take a toll on tomorrow’s generation.

    What could be the solution?

    • Setting up an independent fiscal council: Setting up an independent fiscal council that has been recommended by the FRBM Review Committee (2017), and recently constituted Finance Commissions too, including the 15th Finance Commission.
    • Providing information and advisory: FRBM report says, the council will serve both an ex-ante role providing independent forecasts on key macro variables like real and nominal GDP growth, tax buoyancy, commodity prices as well as an ex-post monitoring role, and also serve as the institution to advise on triggering the escape clause and also specify a path of return.
    • Monitoring finance: Such a council should work for the union as well as the states. Monitoring of finances and fiscal rules could also help ensure that states comply with a medium-term fiscal policy framework, which has been long argued for by economists.

    FreebieConclusion

    • Freebies cannot be defined easily, and constitutionally, any state government should be empowered to spend the way it wants, provided the fiscal policy is sustainable. The message from the freebies debate is to make informed economic decisions whilst attending to key development objectives.

    Mains Question

    Q. There is nothing wrong in having social security programme that aims to lift the poor get out of poverty and empower the vulnerable sections of the society. In this context, where do you see the goal of sustainable economic development? Comment.

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  • Places in news: Solomon Islands

    solomon

    Solomon Islands PM has assured Australia that his nation will not allow a Chinese military presence in its territory.

    Where is the Solomon Islands located?

    • The Solomon Islands is a sovereign country consisting of six major islands and over 900 smaller islands in Oceania, to the east of Papua New Guinea and northwest of Vanuatu.
    • Its capital, Honiara, is located on the largest island, Guadalcanal.
    • It is part of the ethnically Melanesian group of islands in the Pacific and lies between Papua New Guinea and Vanuatu.
    • The country takes its name from the Solomon Islands archipelago, which is a collection of Melanesian islands that also includes the North Solomon Islands (a part of Papua New Guinea).
    • It excludes outlying islands, such as the Santa Cruz Islands and Rennell and Bellona.

    Quick recap of its past

    • The islands, which were initially controlled by the British Empire during the colonial era, went through the hands of Germany and Japan.
    • It then went back to the UK after the Americans took over the islands from the Japanese during World War II.
    • The islands became independent in 1978 to become a constitutional monarchy under the British Crown, with a parliamentary system of government.
    • Nevertheless, its inability to manage domestic ethnic conflicts led to close security relations with Australia, which is the traditional first responder to any crisis in the South Pacific.

    How did China enter the picture?

    • Earlier this year, the Solomon Islands established a security agreement with China, saying it needed Beijing’s assistance with its domestic security situation.
    • But the announcement had rattled the west, esp. the US, Australia and others in the Indo-Pacific region.
    • The concerns were that the agreement could potentially lead to a Chinese military base on the island nation and a gain in power-projection capabilities.
    • At that time, following intense scrutiny, the Solomon Islands had denied that the agreement would allow China to establish a naval base.
    • The Island insisted that the agreement was only to assist the Solomon Islands with what he called “hard internal threats”.

    What is the Solomon Islands’ stance?

    • The government has asked all partner countries with plans to conduct naval visits or patrols to put them on hold until a revised national mechanism is in place.
    • The revised national mechanism applied to all foreign vessels seeking access to the country’s ports.
    • The nation wanted to build up its own naval capacity.
    • It has some unfortunate experiences of foreign naval vessels entering its waters without any diplomatic clearance.

    What is behind China’s growing influence in the region?

    • There is no dispute that China has been rapidly increasing its presence and influence in the region for over three decades, particularly in the South Pacific.
    • Certainly Beijing views the Pacific Island region as an important component of its Belt and Road Initiative (BRI).
    • Specifically, it sees the region as a critical air freight hub in its so-called Air Silk Road, which connects Asia with Central and South America.

    Concerns of the West

    • The United States and its regional allies, such as Australia and New Zealand, are concerned that the China-Solomon Islands security pact allows Chinese naval vessels to replenish there.
    • That could open the door to a Chinese naval base, which would significantly extend China’s military reach in the South Pacific.”
    • It is likely that this security agreement between China and the Solomon Islands has been driven by, what the CFR calls, Beijing’s “sense of vulnerability” in the region.

    What is the rationale for the Solomon Islands’ increasing proximity to China?

    • The Solomon Islands had cultivated strong ties with Taiwan, which ended with the emergence of the current government in Honiara.
    • In 2019, the regime change switched Taiwan for China.
    • This was supposedly after Beijing offered half a billion US dollars in financial aid, roughly five times what Taiwan spent on the islands in the past two decades.
    • It has been alleged by the pro-Taiwan Opposition that the incumbent government has been bribed by China.

    Why is China interested in the Solomon Islands?

    • Isolating Taiwan: The Solomon Islands was one among the six Pacific island states which had official bilateral relations with Taiwan.
    • Supporter in UN: The small Pacific island states act as potential vote banks for mobilising support for the great powers in international fora like the United Nations.
    • Larger EEZ: These states have disproportionately large maritime Exclusive Economic Zones when compared to their small sizes.
    • Natural resources: Solomon Islands, in particular, have significant reserves of timber and mineral resources, along with fisheries.
    • Countering US: But more importantly, they are strategically located for China to insert itself between America’s military bases in the Pacific islands and Australia.

    What does this mean for the established geopolitical configuration in the region?

    • Diminishing western influence: The Pacific islands, in the post-World War II scenario, were exclusively under the spheres of influence of the Western powers, in particular, the US, UK, France and Australia and New Zealand.
    • Inserting into western hegemony: All of them have territorial possessions in the region, with the three nuclear powers among them having used the region as a nuclear weapons testing ground.
    • Shifting of dependencies: The smaller island nations of the region are heavily dependent on them, especially Australia as it is a resident power.

     

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  • Amendments to Bharat Series Rules

    bharat

    The Ministry of Road Transport and Highway has issued a draft notification proposing new rules to further increase the scope of implementation of the BH series vehicle registrations.

    Bharat series (BH-series)

    • There was a procedure of re-registration of a vehicle while moving to another state.
    • A vehicle bearing BH registration mark shall not require assignment of a new registration mark when the owner of the vehicle shifts from one State to another.
    • Format of Bharat series (BH-series) Registration Mark –

    Registration Mark Format:

    1. YY BH #### XX
    2. YY – Year of first registration
    3. BH- Code for Bharat Series
    4. ####- 0000 to 9999 (randomized)
    5. XX- Alphabets (AA to ZZ)

    Why such move?

    • Station relocation occurs with both Government and private sector employees.
    • Such movements create a sense of unease in the minds of such employees with regard to transfer of registration from the parent state to another state.
    • Under section 47 of the Motor Vehicles Act, 1988, a person is allowed to keep the vehicle for not more than 12 months in any state other than the state where the vehicle is registered.

    Who can get this BH series?

    • BH-series will be available on voluntary basis to Defense personnel, employees of Central Government/ State Government/ Central/ State PSUs and private sector companies/organizations.
    • The motor vehicle tax will be levied for two years or in multiple of two.
    • This scheme will facilitate free movement of personal vehicles across States/UTs of India upon relocation to a new State/UT.
    • After the completion of the fourteenth year, the motor vehicle tax shall be levied annually which shall be half of the amount which was charged earlier for that vehicle.

     

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