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GS Paper: GS2

  • Centre launches ‘Ration Mitra’ Portal to register for Rations

    The Centre has launched a common facility to register names in ration cards on a pilot basis for 11 States and Union Territories.

    Ration Mitra

    • Ration Mitra’ Portal aims to enable these States to identify and verify the eligible beneficiaries for coverage under the National Food Security Act.
    • Named as Ration Mitr, this software developed by the National Informatics Centre can be used to enrol people of any State.
    • The portal is an enabler for States/UTs to complete their inclusion exercise under NFSA.
    • The NFSA provides food security coverage for 81.35 crore persons in the country. The present NFSA coverage is about 79.74 crore.

    About National Food Security (NFS) Act

    • The NFS Act, 2013 aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion people.
    • It converts into legal entitlements for existing food security programs of the GoI.
    • It includes the Midday Meal Scheme, Integrated Child Development Services (ICDS) scheme and the Public Distribution System (PDS).
    • Further, the NFSA 2013 recognizes maternity entitlements.
    • The Midday Meal Scheme and the ICDS are universal in nature whereas the PDS will reach about two-thirds of the population (75% in rural areas and 50% in urban areas).
    • Pregnant women, lactating mothers, and certain categories of children are eligible for daily free cereals.

    Key provisions of NFSA

    • The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at a subsidised price.
    • It includes rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg — under the Targeted Public Distribution System (TPDS). These are called central issue prices (CIPs).

     

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  • When pharma companies cross red lines

    pharma companiesMarketing practices of pharma companies are under scrutiny after tax officials searched the premises of a drugmaker, and an association of medical representatives moved the Supreme Court alleging unethical marketing practices by drugmakers.

    paharma companiesThe Dolo controversy

    • Bengaluru-based pharmaceuticals company Micro Labs Ltd came under the spotlight recently over the promotion of its anti-fever drug Dolo 650, which was widely used during the covid-19 pandemic.
    • Surprisingly, this drug which contained paracetamol was widely endorsed by doctors all across the India.
    • The Supreme Court last week ordered the central government to respond to a petition filed on the issue of unethical marketing practices by drug makers.
    • The Income Tax department too has accused it of claiming unallowable expenses made on freebies meant to boost sales.

    How do drugmakers incentivize doctors?

    • While many medical professionals claim that financial incentives do not influence their practice, some say that private sector doctors are enticed by pharmaceutical companies’ marketing agents to promote their drugs.
    • Pharma companies’ sales executives visit doctors to brief them about new drugs or a new drug component.
    • They try to impress upon them to prescribe their brands and in return, doctors are offered some gifts name reminders such as pens, writing pads, books and sometimes expensive gifts and holidays.
    • Such benefits extended to doctors depend upon the kind of drug, the disease burden etc.

    pharma companiesIs this a widespread industry practice?

    • A government doctor said no pharma firm can sustain without marketing its drug.
    • It mostly happens when there is an outbreak, or if there is great demand for a particular drug or when a drug is being launched.
    • Unlike in the case of other products, the decision to buy a drug is not made by the consumer, but by the doctor.
    • This makes pharma a marketing-driven industry.

    Are hospitals incentivized too?

    • Yes; doctors at a top private hospital which treated a large number of covid-19 patients said drug giants do try to incentivize hospitals.
    • The possibilities increase when a large corporate hospital chain operating across the country buys a drug in bulk.
    • A doctor at a corporate hospital does not have any control over the drugs sold in the in-house pharmacy of the hospital.
    • Doctors running small clinics see limited patients, and they do not have pharmacies; so, the issue of incentivization does not arise.

    What does the I-T dept find wrong in this?

    • While pharma companies treat freebies as a marketing expense which is deducted while computing their taxable income, getting the beneficiary of this spending to report it as his income has been a challenge.
    • In some cases, tax officials have denied promotional expenses as a deduction.
    • Hence, the government introduced a 10% tax to be deducted at source (TDS) effective 1 July, so that doctors and social media influencers report such benefits in their tax returns and pay tax on what it is worth.

     

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  • Issue of withdrawal of Personal Data Protection Bill

    Context

    The Minister for the Ministry of Electronics and IT withdrew the Personal Data Protection Bill, 2019. The reasons for the withdrawal were circulated in a note to MPs, which stated that,“considering the report of the JPC (Joint Parliamentary Committee), a comprehensive legal framework is being worked upon
”.

    Background of Personal Data Protection Bill

    •  An expert committee headed by Justice (retd) A P Shah recommended in October, 2012,“a detailed framework that serves as the conceptual foundation for the Privacy Act”.
    • This did not come to fruition, with proposals buried by 2014 due to objections from the intelligence establishment on surveillance reforms.
    • While petitions on the constitutionality of Aadhaar and the right to privacy were pending before the Supreme Court, the Union government constituted an expert group headed by Justice (retd) B N Srikrishna in July, 2017.
    •  In August, a nine-judge bench unanimously pronounced the Puttaswamy judgment that reaffirmed the fundamental right to privacy for the autonomy, dignity and liberty for every Indian.
    • Justice D Y Chandrachud, who authored the majority opinion, noted the formation of the Srikrishna Committee as a positive obligation on the government to enact a law for informational privacy.
    • In December 2019, government introduced the Personal Data Protection Bill, 2019 in Parliament.
    • The draft law was referred to a JPC of 30 MPs that submitted a report after two years.
    • With the withdrawal in Parliament on August 3, it almost seems institutional processes, in which all three branches of government worked for years, are being jettisoned in favour of “a comprehensive legal framework”.

    Issues with reasons given for withdrawal of the Bill

    • The JPC has nowhere suggested a withdrawal in favour of a “comprehensive legal framework”.
    • The proper course was to consider the JPC’s recommendations including the dissent notes and expert analysis, redraft and introduce a new Data Protection Bill.
    • Compliance burden concern of government: With the government setting the goal of a one trillion dollar digital economy, fears of a compliance burden can impede innovation and growth.
    • Date protection is needed for innovation: Here, detailed reasoning is available in the Srikrishna Committee’s report as well as a growing international consensus suggesting that next-generation innovation in technology needs data protection.
    • Regulatory intervention will improve business practices requiring engineering decisions that focus on user trust.
    • Imperfections in law argument: With the imperfections within the Personal Data Protection Bill, 2019 and even the JPC report, there exists a reasonable argument that if passed into law, it may institutionalise bad privacy practices.
    •  Such a line of reasoning fails to recognise that institutional memory develops through reasonable due diligence and experience.
    • Legislative foresight is limited and no law is perfect, which is why there exist parliamentary amendments and judicial review.

    Conclusion

    Today, there is a relentless pace of digitisation that relies on gathering personal data in all spheres of our lives. All of this is done in a legal vacuum without any oversight or remedy. This underscores the urgent need for data protection law.

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  • US-Iran Nuclear talks restart with EU mediation

    Negotiators kicked off a fresh round of talks over Iran’s nuclear program in Vienna, seeking to salvage the agreement on Tehran’s atomic ambitions.

    Do you know how the enmity between Iran and the US came into reality?  We hope you have watched the Argo (2012) movie for sure!

    Context

    • After a gap of five months, Iran, Russia, China and the European countries resumed negotiations in Vienna to revive the 2015 nuclear agreement, known as the Joint Comprehensive Plan of Action (JCPOA).
    • The 2015 JCPOA agreement sought to cut Iran off a possible path to a nuclear bomb in return for lifting of economic sanctions.

    What is JCPOA?

    • The Iran nuclear agreement, formally known as the JCPOA is a landmark accord reached between Iran and several world powers, including the United States, in July 2015.
    • Under its terms, Iran agreed to dismantle much of its nuclear program and open its facilities to more extensive international inspections in exchange for billions of dollars’ worth of sanctions relief.

    Expected outcomes of the deal

    • Curb on the nuclear program: Proponents of the deal said that it would help prevent a revival of Iran’s nuclear weapons program.
    • Increasing regional engagement: It would thereby reduce the prospects for conflict between Iran and its regional rivals, including Israel and Saudi Arabia.

    Background of the JCPOA

    • Iran had previously agreed to forgo the development of nuclear weapons as a signatory to the Nuclear Non-proliferation Treaty, which has been in force since 1970.
    • However, after the overthrow of the Pahlavi dynasty in 1979, Iranian leaders secretly pursued this technology.
    • In 2007, U.S. intelligence analysts concluded that Iran halted its work on nuclear weapons in 2003 but continued to acquire nuclear technology and expertise.
    • Prior to the JCPOA, the P5+1 had been negotiating with Iran for years, offering its government various incentives to halt uranium enrichment.

    Issues with the deal

    (1) US withdrawal

    • The deal has been in jeopardy since President Donald Trump withdrew the US from it in 2018.
    • In retaliation for the US, Iran resumed some of its nuclear activities.

    (2) Iran’s insistence over sanctions removal

    • In 2021, President Joe Biden said the US will return to the deal if Iran comes back into compliance, though Iran’s leaders have insisted that Washington lift sanctions first.
    • Iran now has indicated that he will take a harder line than his predecessor in nuclear negotiations.

    Who are the participants?

    • The JCPOA, which went into effect in January 2016, imposes restrictions on Iran’s civilian nuclear enrichment program.
    • At the heart of negotiations with Iran were the five permanent members of the UN Security Council (China, France, Russia, the United Kingdom, and the United States) and Germany—collectively known as the P5+1.
    • The European Union also took part. Israel explicitly opposed the agreement, calling it too lenient.
    • Some Middle Eastern powers, such as Saudi Arabia, said they should have been consulted or included in the talks because they would be most affected by a nuclear-armed Iran.

    What did Iran agree to?

    • Nuclear restrictions: Iran agreed not to produce either the highly enriched uranium or the plutonium that could be used in a nuclear weapon.
    • Monitoring and verification:  Iran agreed to eventually implement a protocol that would allow inspectors from the International Atomic Energy Agency (IAEA), the United Nations’ nuclear watchdog.

    What did the other signatories agree to?

    • Sanctions relief: The EU, United Nations, and United States all committed to lifting their nuclear-related sanctions on Iran. However, many other U.S. sanctions on Iran, some dating back to the 1979 hostage crisis, remained in effect.
    • Weapons embargo: The parties agreed to lift an existing UN ban on Iran’s transfer of conventional weapons and ballistic missiles after five years if the IAEA certifies that Iran is only engaged in civilian nuclear activity.

    How has the deal affected Iran’s economy?

    • Prior to the JCPOA, Iran’s economy suffered years of recession, currency depreciation, and inflation, largely because of sanctions on its energy sector.
    • With the sanctions lifted, inflation slowed, exchange rates stabilized, and exports—especially of oil, agricultural goods, and luxury items­—skyrocketed as Iran regained trading partners, particularly in the EU.
    • After the JCPOA took effect, Iran began exporting more than 2.1 million barrels per day (approaching pre-2012 levels, when the oil sanctions were originally put in place).

     

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  • Election Symbols Issue in Maharashtra

     

    The Supreme Court has said it would decide the question of referring the battle between a political party leader and Maharashtra Chief Minister over the “real” heir of a political party to a Constitution Bench.

    What is the news?

    Why the split leader (the CM) is making such claims?

    • One of the cardinal issues, as pointed out by the CJI, would be whether the dissent of split faction, without subsequently forming a new party or merging with another, amounted to a “split” from the original political party.
    • The anti-defection law cannot be an “anti-dissent” law.

    Issues raised by the apex Court

    • The Bench warned that if the split is completely ignoring the political party after being elected then it is a danger to democracy.

    Note: For aspirants, one thing is very clear. The Supreme Court will definitely give another landmark judgment in this regard. Arriving at a conclusion is a tight rope walk for the judiciary too. But our judiciary never disappoints!

    EC’s powers in Election Symbol Dispute

    • The question of a split in a political party outside the legislature is dealt by Para 15 of the Symbols Order, 1968.
    • It states that the Election Commission of India’s (ECI) may take into account all the available facts and circumstances and undertake a test of majority.
    • The decision of the ECI shall be binding on all such rival sections or groups emerged after the split.
    • This applies to disputes in recognized national and state parties.
    • For splits in registered but unrecognized parties, the EC usually advises the warring factions to resolve their differences internally or to approach the court.

    How did the EC deal with such matters before the Symbols Order came into effect?

    • Before 1968, the EC issued notifications and executive orders under the Conduct of Election Rules, 1961.
    • The most high-profile split of a party before 1968 was that of the CPI in 1964.
    • A breakaway group approached the ECI in December 1964 urging it to recognize them as CPI(Marxist). They provided a list of MPs and MLAs of Andhra Pradesh, Kerala and West Bengal who supported them.
    • The ECI recognized the faction as CPI(M) after it found that the votes secured by the MPs and MLAs supporting the breakaway group added up to more than 4% in the 3 states.

    Options for ECI

    • The ECI in all likelihood can freeze the symbol so that neither of the two sides is able to use it until a final decision is made.
    • EC hearings are long and detailed and may take at least six months.

    What was the first case decided under Para 15 of the 1968 Order?

    • It was the first split in the Indian National Congress in 1969.
    • Indira Gandhi’s tensions with a rival group within the party came to a head with the death of President Dr Zakir Hussain on May 3, 1969.

    Is there a way other than the test of the majority to resolve a dispute over election symbols?

    • In almost all disputes decided by the EC so far, a clear majority of party delegates/office bearers, MPs and MLAs have supported one of the factions.
    • Whenever the EC could not test the strength of rival groups based on support within the party organization (because of disputes regarding the list of office bearers), it fell back on testing the majority only among elected MPs and MLAs.

    What happens to the group that doesn’t get the parent party’s symbol?

    • The EC in 1997 did not recognize the new parties as either state or national parties.
    • It felt that merely having MPs and MLAs is not enough, as the elected representatives had fought and won polls on tickets of their parent (undivided) parties.
    • The EC introduced a new rule under which the splinter group of the party — other than the group that got the party symbol — had to register itself as a separate party.
    • It could lay claim to national or state party status only on the basis of its performance in the state or central elections after registration.

     

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  • India and Minerals Security Partnership (MSP)

    India is aspiring to join the 11-member US-led partnership for critical mineral supply chains called ‘Minerals Security Partnership (MSP)’.

    Why in news?

    • A group of western nations are cooperating to develop alternatives to China to ensure key industrial supplies.
    • This is a part of a global ‘China-plus-one’ strategy adopted post pandemic that caused massive supply-chain disruptions.
    • India is not part of this arrangement but New Delhi is working through diplomatic channels to fetch an entry.

    What is the Minerals Security Partnership (MSP)?

    • The US and 10 partners — Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea (South Korea), Sweden, the United Kingdom, and the European Commission — have come together to form the MSP.
    • The new grouping is aimed at catalysing investment from governments and the private sector to develop strategic opportunities.
    • Demand for critical minerals, which are essential for clean energy and other technologies, is projected to expand significantly in the coming decades.
    • The MSP will help catalyse investment from governments and the private sector for strategic opportunities — across the full value chain — that adhere to the highest environmental, social, and governance standards.

    Focus of MSP

    • The new grouping could focus on the supply chains of minerals such as Cobalt, Nickel, Lithium, and also the 17 ‘rare earth’ minerals.
    • The alliance is seen as primarily focused on evolving an alternative to China, which has created processing infrastructure in rare earth minerals and has acquired mines in Africa for elements such as Cobalt.

    What are Rare Earth Elements?

    • The 17 rare earth elements (REE) include the 15 Lanthanides (atomic numbers 57 — which is Lanthanum — to 71 in the periodic table) plus Scandium (atomic number 21) and Yttrium (39).
    • REEs are classified as light RE elements (LREE) and heavy RE elements (HREE).
    • Some REEs are available in India — such as Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc.
    • Others such as Dysprosium, Terbium, and Europium, which are classified as HREEs, are not available in Indian deposits in extractable quantities.

    Why are these minerals important?

    • Minerals like Cobalt, Nickel, and Lithium are required for batteries used in electric vehicles.
    • REEs are an essential — although often tiny — component of more than 200 consumer products, including mobile phones, computer hard drives, electric and hybrid vehicles, semiconductors etc.

    Where does India stand?

    • There is a dependence on countries such as China for HREEs, which is one of the leading producers of REEs, with an estimated 70 per cent share of the global production.
    • India is seen as a late mover in attempts to enter the lithium value chain, coming at a time when EVs are predicted to be a sector ripe for disruption.
    • The year 2022 is likely to be an inflection point for battery technology — with several potential improvements to the Li-ion technology.
    • India has an ambitious plan to convert a large percentage of its transport to electric, and would require these minerals.
    • According to the plan, 80 per cent of the country’s two- and three-wheeler fleet, 40 per cent of buses, and 30 to 70 per cent of cars will be EVs by 2030.

    What is India’s major concern at this moment?

    • If India is not able to explore and produce these minerals, it will have to depend on a handful of countries, including China, to power its energy transition plans to electric vehicles.
    • That will be similar to our dependence on a few countries for oil.

    Why was India excluded?

    • Industry watchers say that the reason India would not have found a place in the MSP grouping is that the country does not bring any expertise to the table.
    • In the group, countries like Australia and Canada have reserves and also the technology to extract them, and countries like Japan have the technology to process REEs.

     

     

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  • Govt withdraws Data Protection Bill

    The government has withdrawn the Personal Data Protection Bill from Parliament after several amendments were proposed by the Joint-Parliamentary Committee.

    What is Personal Data?

    • Data can be broadly classified into two types: personal and non-personal data.
    • Personal data pertains to characteristics, traits or attributes of identity, which can be used to identify an individual.
    • Non-personal data includes aggregated data through which individuals cannot be identified.
    • For example, while an individual’s own location would constitute personal data; information derived from multiple drivers’ location, which is often used to analyse traffic flow, is non-personal data.

    What is Data Protection?

    • Data protection refers to policies and procedures seeking to minimise intrusion into the privacy of an individual caused by collection and usage of their personal data.

    Why was a bill brought for Personal Data Protection?

    • In August 2017, the Supreme Court had held that Privacy is a fundamental right under Article 21 of the Constitution.
    • The Court also observed that privacy of personal data and facts is an essential aspect of the right to privacy.
    • In July 2017, a Committee of Experts, chaired by Justice BN Srikrishna, was set up to examine various issues related to data protection in India.
    • The committee submitted its report, along with a Draft Personal Data Protection Bill, 2018 to the Ministry of Electronics and Information Technology in July 2018.

    How is personal data regulated currently?

    • Currently, the usage and transfer of personal data of citizens is regulated by the Information Technology (IT) Rules, 2011, under the IT Act, 2000.
    • The rules hold the companies using the data liable for compensating the individual, in case of any negligence in maintaining security standards while dealing with the data.

    Issues with IT Rules, 2011

    • The IT rules were a novel attempt at data protection at the time they were introduced but the pace of development of digital economy has shown its shortcomings.
    • For instance, (i) the definition of sensitive personal data under the rules is narrow, and (ii) some of the provisions can be overridden by a contract.
    • Further, the IT Act applies only to companies, not to the government.

    What the Personal Data Protection Bill sought to provide?

    • Collection and storage: The bill regulate personal data related to individuals, and the processing, collection and storage of such data.
    • Data Principal: Under the bill, a data principal is an individual whose personal data is being processed.
    • Data fiduciary: The entity or individual who decides the means and purposes of data processing is known as data fiduciary.
    • Data processing: The Bill governs the processing of personal data by both government and companies incorporated in India.
    • Data localization: It also governs foreign companies, if they deal with personal data of individuals in India.
    • General consent: The Bill provides the data principal with certain rights with respect to their personal data. Any processing of personal data can be done only on the basis of consent given by data principal.
    • Data Protection Authority: To ensure compliance with the provisions of the Bill, and provide for further regulations with respect to processing of personal data of individuals, the Bill sets up a DPA.

    Issues with the PDP Bill

    • Exemptions to the govt: Section 35 of the bill permits the Central Government to exempt any agency of the Government from the provisions of the law.
    • No reasonable exemptions: There is no sufficient reason for government agencies to be exempted from basic provisions of the Bill.
    • Easy breach: Though this would be subject to procedures, safeguards, and oversight mechanisms to be prescribed by the Government.
    • Executive hegemony: There is no scope for oversight over the executive’s decision to issue such an order.
    • Arbitrary and intrusive: As demonstrated by the Pegasus case, the current frameworks for protecting citizens from arbitrary and intrusive State action lack robustness.

    Why is the state given exemption?

    • Biggest needy of Data: The State is one of the biggest processors of data, and has a unique ability to impact the lives of individuals.
    • Welfare objectives: It has a monopoly over coercive powers as well have the obligation to provide welfare and services.

    Issues with Exemption to State

    • Grounds of expediency: the use of this provision on grounds of expediency is an extremely low bar for the Government to meet.
    • Non requirement for exemption order: There is no requirement for an exemption order to be proportionate to meeting a particular State function.
    • No oversight on executive actions: There is no scope for oversight over the executive’s decision to issue such an order or any safeguards prescribed for this process.
    • State surveillance: Section 36(a) of the Bill provides for an exception where personal data is being processed against criminal investigation. This provision could therefore encourage vigilantism or enable privatized surveillance.

    Best practices followed across the world

    • The European GDPR (General Data Protection Regulation) is commonly seen as the pinnacle of data protection regulation worldwide.
    • The EU law has in place a separate law that deals with the processing of personal data by law enforcement agencies.
    • UK’s Data Protection Act dedicates Part 3 that liberalises certain obligations while at the same time ensuring that data protection rights are also protected.

    Way forward

    • Balancing privacy interests with those of public needs (such as that of State security) is a difficult task.
    • This should undergo rigorous consultations in Parliament taking into confidence all stakeholders.
    • Once debated in Parliament, one can only hope that adequate time and attention is given to finding a better balance between competing interests.

     

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  • SC calls for a panel to inquire Freebies Issue

    The Supreme Court has said that Parliament may not be able to effectively debate the issue of doing away with “irrational freebies” offered to voters during elections, saying the “reality” is that not a single political party wants to take away freebies.

    Why in news?

    • The freebies were paving the way for an “economic disaster” besides “distorting the informed decision of voters”, CJI said.

    What did the CJI say?

    Ans. Compose a non-partisan panel

    • The court suggested setting up a specialized body composed of persons who can “dispassionately” examine the problem.
    • The court directed the parties to make “suggestions for the composition of a body”.
    • It proposed that this body could examine ways to resolve the issue of freebies and file a report before the Centre or the Election Commission of India (ECI).
    • The court said once the parties come up with suggestions on the composition of such a body in a week, it would pass orders.

    What is Freebie?

    • 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 assorted freebies.
    • From free water to free smartphones the Indian politicians promise everything to attract prospective voters in favour.
    • This trend has gained more momentum in the recent times with the political parties being innovative in their offerings as the ‘traditional free water and electricity’ is no longer sufficient as election goodies.

    Examples of freebies

    1. Promise of Rs 15 lakh in our bank accounts
    2. Free TV, Laptops
    3. Free electricity
    4. Loan waivers
    5. Offering free public transport ride to all women in Delhi

    Why are such policies popular among the public?

    • Failure of economic policies: The answer lies in the utter failure of our economic policies to create decent livelihood for a vast majority of Indians.
    • Quest for decent livelihood: The already low income had to be reoriented towards spending a disproportionately higher amount on education and health, from which, the state increasingly withdrew.
    • Prevailing unemployment:  Employment surveys have shown that employment growth initially slowed down from the 1990s, and then has turned negative over the past few years.
    • Increased cost of living: Real income growth of the marginal sections has actually slowed down since 1991 reforms.
    • Increased consumerism: The poor today also spend on things that appear to be luxuries; cellphones and data-packs are two such examples which are shown as signs of India’s increased affluence.
    • Necessity: For migrant workers, the mobile phone helps them keep in touch with their families back home, or do a quick video-call to see how their infant is learning to sit up or crawl.

    Can Freebies be compared with Welfare Politics?

    • These freebies are not bad. It is a part of social welfare.
    • Using freebies to lure voters is not good.
    • Voter’s greediness may lead to a problem in choosing a good leader.
    • When we don’t have a good leader then democracy will be a mockery.

    Impact of such policies

    • Never ending trail: The continuity of freebies is another major disadvantage as parties keep on coming up with lucrative offers to lure more number of votes to minimize the risk of losing in the elections.
    • Burden on exchequer: People forget that such benefits are been given at the cost of exchequer and from the tax paid.
    • Ultimate loss of poors: The politicians and middlemen wipe away the benefits and the poor have to suffer as they are deprived from their share of benefits which was to be achieved out of the money.
    • Inflationary practice: Such distribution freebie commodity largely disrupts demand-supply dynamics.
    • Lethargy in population: Freebies actually have the tendency to turn the nation’s population into: Lethargy and devoid of entrepreneurship.
    • Money becomes only remedy: Everyone at the slightest sign of distress starts demanding some kind of freebies from the Govt.
    • Popular politics: This is psychology driving sections of the population expecting and the government promptly responds with immediate monetary relief or compensation.

    What cannot be accounted to a freebie?

    • MGNREGA scheme (rural employment guarantee scheme)
    • Right to Education (RTE)
    • Food Security through fair price shops ( under National Food Security Act)
    • Prime Minister Kisan Samman Yojana (PM-KISAN)

    Arguments in favour

    • Social investment: Aid to the poor is seen as a wasteful expenditure. But low interest rates for corporates to get cheap loans or the ‘sop’ of cutting corporate taxes are never criticized.
    • Socialistic policy: This attitude comes from decades of operating within the dominant discourse of market capitalism.
    • Election manifesto: Proponents of such policies would argue that poll promises are essential for voters to know what the party would do if it comes to power and have the chance to weigh options.
    • Welfare: Economists opine that as long as any State has the capacity and ability to finance freebies then its fine; if not then freebies are the burden on economy.
    • Other wasteful expenditure: When the Centre gives incentives like free land to big companies and announce multi-year tax holidays, questions are not asked as to where the money will come from.

    A rational analysis of freebies

    • Winning election and good governance are two different things. The role of freebies to avail good governance is definitely questionable.
    • The social, political and economic consequences of freebies are very short-lived in nature.
    • There are many freebies and subsidies schemes available in many States but we still find starvation deaths, lack of electricity, poor education and health service.
    • Hence the sorrow of the masses of India cannot be solved by freebies or by incentives.

    So are not freebies meant only to attract voters and swing voters by concentrating on a preferential group or community?

    Way forward

    • It can be agreed that democracy requires popular support for its rule to continue. The sops and freebies to the poor buy it the requisite votes.
    • But the democratic process of election and election promises should be clear. It should not control voters thought.
    • What some people term as ‘populism’ actually constitutes what real economics should be.
    • If you deprive people of what they really need, you will have to throw allurements at them.
    • This can only be stopped if political masters try to follow what economist EA Schumacher had conveyed through his seminal work Small is beautiful – “Treat economics as if people matter.”

     

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  • CJI’s recommendation on ‘Successor’ sought

    Chief Justice of India N.V. Ramana has received a communication from the Union Law Minister seeking his recommendation on the appointment of the next top judge.

    What is the news?

    • Chief Justice Ramana is retiring this month.
    • It is now left to CJI to give the Law Minister his recommendation on his successor.

    How is CJI selected?

    • Justice U.U. Lalit is the senior-most judge in the Supreme Court now.
    • He is in line to be appointed the 49th CJI as per the seniority norm.
    • 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. 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.

    Try this PYQ:

    1. Who/Which of the following is the custodian of the Constitution of India?

    (a) The President of India

    (b) The Prime Minister of India

    (c) The Lok Sabha Secretariat

    (d) The Supreme Court of India

     

    [wpdiscuz-feedback id=”0dci9sxykf” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • UNSC

    In a first, India will host diplomats and officials from all 15 countries of the United Nations Security Council (UNSC), including China, Russia and the US, for a special meeting on terrorism, in Delhi and Mumbai in October.

    Key determinants of the meet

    The special meeting will specifically focus on three significant areas:

    1. Internet and social media
    2. Terrorism financing
    3. Unmanned aerial systems

    What is Counter-Terrorism Committee (CTC)?

    • The CTC is a subsidiary body of the United Nations Security Council (UNSC).
    • The 15-member CTC was established at the same time to monitor the implementation of the resolution.
    • In the wake of the 11 September 2001 terrorist attacks in the US, the UNSC unanimously adopted resolution 1373.
    • This among its provisions obliges all States
    1. To criminalize assistance for terrorist activities,
    2. Deny financial support and safe haven to terrorists and
    3. Share information about groups planning terrorist attacks

    Its executive body

    • Seeking to revitalize the Committee’s work, in 2004 the Security Council adopted Resolution 1535.
    • It created the Counter-Terrorism Committee Executive Directorate (CTED) to provide the CTC with expert advice on all areas covered by resolution 1373.
    • It was established also with the aim of facilitating technical assistance to countries, as well as promoting closer cooperation and coordination both within the UN.

    Its working

    • While the CTC is not a direct capacity provider it does act as a broker between those states or groups that have the relevant capacities and those in the need of assistance.
    • While the ultimate aim of the Committee is to increase the ability of States to fight terrorism, it is not a sanctions body nor does it maintain a list of terrorist groups or individuals.

    Significance of the event

    • India has been pushing for the UN members to adopt a Comprehensive Convention on International Terrorism (first proposed in 1996), which is likely to be raised during the meeting.
    • The event will showcase India’s role as a victim of terrorism as well as a country at the forefront of global counter-terrorism efforts.
    • CTC meeting in India could also pave the way for a possible visit to New York by PM Narendra Modi in December, when India will be the President of the UNSC for the entire month.

    Way ahead: Hitting the nerve

    • While terror financing was now recognised by FATF, it was necessary to build templates and “codes of conduct” for newer threats.
    • Today terror financing now includes financing through cryptocurrency and the use of drones for terror attacks.

     

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