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GS Paper: GS2

  • No inner-party democracy

    Context

    The ousting of Boris Johnson as leader of the British Conservative Party is the latest in a series of coups periodically mounted by the party’s MPs. What is instructive about this whole process, however, is how much power ordinary MPs have over the Prime Minister.

    Lack of inner-party democracy in India

    • A Prime Minister in UK has to be able to maintain the confidence of his own backbencher MPs at all times or risk political oblivion.
    • If there is a sense that the leader is no longer acceptable to the country, then a well-oiled machine springs into action to protect the party’s electoral gains by providing fresh leadership.
    • In India, PM exercises absolute authority over party MPs, whose ability to even diverge slightly from the official government line on routine policy matters is almost non-existent.
    • Impact of anti-defection law: The Prime Minister’s power is strengthened by India’s unique anti-defection set-up, where recalcitrant MPs who do not manage to carry two-thirds of their colleagues with them can always be disqualified.
    • Lack of autonomy: In effect, MPs do not enjoy any autonomy at all to question and challenge their party leadership.
    • Prime Ministers or Chief Ministers at the State level are chosen by party high command, and then submitted to MPs/MLAs to be rubber stamped.

    Way forward

    • Strengthening local constituency party:  It is time for India to seriously consider empowering its elected representatives, to ensure accountability for party leadership.
    • MPs in the U.K. are able to act boldly because they do not owe their nomination to the party leader, but are selected by the local constituency party.
    • In India, however, it is the party leadership that decides candidates, with an informal consultation with the local party.
    • Amending anti-defection law: Neither do MPs in the U.K. stand a risk of disqualification if they speak out against the leader, a threat perpetuated in India through the anti-defection law.
    • These factors are the biggest stumbling blocks towards ensuring inner-party democracy in India.
    • System on the lines of 1922 Committee in UK: In U.K. where individual Conservative MPs write to the 1922 Committee (which comprises backbench MPs, and looks out for their interests) expressing that they have “no confidence” in their leader.
    • If a numerical or percentage threshold (15% of the party’s MPs in the U.K.) is breached, an automatic leadership vote is triggered, with the party leader forced to seek a fresh mandate from the parliamentary party.
    •  Of course, the only way such a model would work is if an exception is made to the anti-defection law.

    Conclusion

    Inner-party democracy is a essential for keeping the spirit of democracy alive. Westminster model dictates that control over candidates must shift from central party leaders to local party members.

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  • Explained: Weapons of Mass Destruction and their Delivery Systems Amendment Bill, 2022

    External Affairs Minister S Jaishankar has introduced The Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Amendment Bill, 2022, which will amend the 2005 Act.

    What is the WMD Bill?

    • The Bill amends the WMD and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 which prohibits the unlawful manufacture, transport, or transfer of WMD (chemical, biological and nuclear weapons) and their means of delivery.
    • It is popularly referred to as the WMD Act.
    • The recent amendment extends the scope of banned activities to include financing of already prohibited activities.
    • The WMD and their Delivery Systems (Prohibition of Unlawful Activities) Act came into being in July 2005.

    India’s 2005 WMD Act defines-

    1. “Biological Weapons” as “microbial or other biological agents, or toxins…of types and in quantities that have no justification for prophylactic, protective or other peaceful purposes; and weapons, equipment or delivery systems specially designed to use such agents or toxins for hostile purposes or in armed conflict”; and
    2. “Chemical Weapons” as “toxic chemicals and their precursors” except where used for peaceful, protective, and certain specified military and law enforcement purposes; “munitions and devices specifically designed to cause death or other harm through the toxic properties of those toxic chemicals”; and any equipment specifically designed for use in connection with the employment of these munitions and devices.

    What was the purpose of the original WMD Act?

    • Its primary objective was to provide integrated and overarching legislation on prohibiting unlawful activities in relation to all three types of WMD, their delivery systems, and related materials, equipment, and technologies.
    • It instituted penalties for contravention of these provisions such as imprisonment for a term not less than five years (extendable for life) as well as fines.
    • The Act was passed to meet an international obligation enforced by the UN Security Council Resolution (UNSCR) 1540 of 2004.

    What is the UNSCR 1540?

    • In April 2004 the UN Security Council adopted resolution 1540 to address the growing threat of non-state actors gaining access to WMD material, equipment or technology to undertake acts of terrorism.
    • In order to address this challenge to international peace and security, UNSCR 1540 established binding obligations on all UN member states under Chapter VII of the UN Charter.
    • Nations were mandated to take and enforce effective measures against proliferation of WMD, their means of delivery and related materials to non-state actors.
    • It was to punish the unlawful and unauthorised manufacture, acquisition, possession, development and transport of WMD became necessary.

    UNSCR 1540 enforced three primary obligations upon nation states —

    1. To not provide any form of support to non-state actors seeking to acquire WMD, related materials, or their means of delivery;

    2. To adopt and enforce laws criminalising the possession and acquisition of such items by non-state actors;

    3. To adopt and enforce domestic controls over relevant materials, in order to prevent their proliferation.

    What has the Amendment added to the existing Act?

    • The Amendment expands the scope to include prohibition of financing of any activity related to WMD and their delivery systems.
    • To prevent such financing, the Central government shall have the power to freeze, seize or attach funds, financial assets, or economic resources of suspected individuals (whether owned, held, or controlled directly or indirectly).
    • It also prohibits persons from making finances or related services available for other persons indulging in such activity.

    Why was this Amendment necessary?

    • India echoes these developments for having made the Amendment necessary.
    • Two specific gaps are being addressed-
    1. As the relevant organisations at the international level, such as the Financial Action Task Force have expanded the scope of targeted financial sanctions and India’s own legislation has been harmonised to align with international benchmarks.
    2. With advancements in technologies, new kinds of threats have emerged that were not sufficiently catered for in the existing legislation.
    • These notably include developments in the field of drones or unauthorised work in biomedical labs that could maliciously be used for terrorist activity.
    • Therefore, the Amendment keeps pace with evolving threats.

    What more should India do?

    • India’s responsible behaviour and actions on non-proliferation are well recognised.
    • It has a strong statutory national export control system and is committed to preventing proliferation of WMD.
    • This includes transit and trans-shipment controls, retransfer control, technology transfer controls, brokering controls and end-use based controls.
    • Every time India takes additional steps to fulfil new obligations, it must showcase its legislative, regulatory and enforcement frameworks to the international community.
    • It is also necessary that India keeps WMD security in international focus.

    Setting up a precedence

    • There is no room for complacency.
    • Even countries which do not have WMD technology have to be sensitised to their role in the control framework to prevent weak links in the global control system.
    • India can offer help to other countries on developing national legislation, institutions and regulatory framework through the IAEA (International Atomic Energy Agency) or on bilateral basis.

    Could the Amendment become troublesome to people on account of mistaken identity?

    • In the discussion on the Bill in Parliament, some members expressed concern on whether the new legislation could make existing business entities or people in the specific sector susceptible to a case of mistaken identity.
    • The External Affairs Minister, however, assured the House that such chances were minimal since identification of concerned individuals/entities would be based on a long list of specifics.

    What is the international significance of these legislation?

    • Preventing acts of terrorism that involve WMD or their delivery systems requires building a network of national and international measures in which all nation states are equally invested.
    • Such actions are necessary to strengthen global enforcement of standards relating to the export of sensitive items and to prohibit even the financing of such activities.

    Way forward

    • Sharing of best practices on legislations and their implementation can enable harmonization of global WMD controls.
    • India initially had reservations on enacting laws mandated by the UNSCR.
    • This is not seen by India as an appropriate body for making such a demand.
    • However, given the danger of WMD terrorism that India faces in view of the difficult neighbourhood that it inhabits, the country supported the Resolution and has fulfilled its requirements.

    Conclusion

    • It is in India’s interest to facilitate highest controls at the international level and adopt them at the domestic level.
    • Having now updated its own legislation, India can demand the same of others, especially from those in its neighbourhood that have a history of proliferation and of supporting terrorist organisations.

    Back2Basics:

    Nuclear Security Contact Group

    • The NSCG was established in 2016.
    • The NSCG or “Contact Group” has been established with the aim of facilitating cooperation and sustaining engagement on nuclear security after the conclusion of the Nuclear Security Summit process.
    • The Contact Group is tasked with:
    1. Convening annually on the margins of the General Conference of the International Atomic Energy Agency (IAEA), and, as may be useful, in connection with other related meetings
    2. Discussing a broad range of nuclear security-related issues, including identifying emerging trends that may require more focused attention

    Nuclear Suppliers Group

    • NSG is a group of nuclear supplier countries that seeks to contribute to the non-proliferation of nuclear weapons through the implementation of guidelines for nuclear exports and nuclear-related exports.
    • The NSG was set up as a response to India’s nuclear tests conducted in 1974.
    • The aim of the NSG is to ensure that nuclear trade for peaceful purposes does not contribute to the proliferation of nuclear weapons.

    Comprehensive Nuclear-Test-Ban Treaty

    • CTBT was negotiated at the Conference on Disarmament in Geneva and adopted by the United Nations General Assembly in 1996.
    • The Treaty intends to ban all nuclear explosions – everywhere, by everyone.
    • It was opened for signature in 1996 and since then 182 countries have signed the Treaty, most recently Ghana has ratified the treaty in 2011.

    Fissile material cut-off treaty

    • FMCT is a proposed international agreement that would prohibit the production of the two main components of nuclear weapons: highly-enriched uranium (HEU) and plutonium.
    • Discussions on this subject have taken place at the UN Conference on Disarmament (CD), a body of 65 member nations established as the sole multilateral negotiating forum on disarmament.
    • The CD operates by consensus and is often stagnant, impeding progress on an FMCT.
    • Those nations that joined the nuclear NPT as non-weapon states are already prohibited from producing or acquiring fissile material for weapons.
    • An FMCT would provide new restrictions for the five recognized nuclear weapon states (NWS—United States, Russia, United Kingdom, France, and China), and for the four nations that are not NPT members (Israel, India, Pakistan, and North Korea).

     

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  • [pib] NAMASTE scheme

    The Government has formulated a National Action Plan for Mechanized Sanitation Ecosystem- NAMASTE scheme for cleaning of sewers and septic tank.

    NAMASTE Scheme

    • The scheme is a joint venture of Department of Drinking Water and Sanitation, Ministry of Social Justice and Empowerment and the Ministry of Housing and Urban Affairs.
    • It aims to achieve outcomes like:
    1. Zero fatalities in sanitation work in India
    2. No sanitation workers come in direct contact with human faecal matter
    3. All Sewer and Septic tank sanitation workers have access to alternative livelihoods
    • The Ministry has shortlisted type of machineries and core equipments required for maintenance works, safety gear for Safai Mitras.

    Why such move?

    Ans. Prevalence of manual scavenging in India

    What is Manual Scavenging?

    • Manual scavenging is the practice of removing human excreta by hand from sewers or septic tanks.
    • India banned the practice under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (PEMSR).
    • The Act bans the use of any individual for manually cleaning, carrying, disposing of or otherwise handling in any manner, human excreta till its disposal.
    • In 2013, the definition of manual scavengers was also broadened to include people employed to clean septic tanks, ditches, or railway tracks.
    • The Act recognizes manual scavenging as a “dehumanizing practice,” and cites a need to “correct the historical injustice and indignity suffered by the manual scavengers.”

    Why is it still prevalent in India?

    • Low awareness: Manual scavenging is mostly done by the marginalized section of the society and they are generally not aware about their rights.
    • Enforcement issues: The lack of enforcement of the Act and exploitation of unskilled labourers are the reasons why the practice is still prevalent in India.
    • High cost of automated: The Mumbai civic body charges anywhere between Rs 20,000 and Rs 30,000 to clean septic tanks.
    • Cheaper availability: The unskilled labourers, meanwhile, are much cheaper to hire and contractors illegally employ them at a daily wage of Rs 300-500.
    • Caste dynamics: Caste hierarchy still exists and it reinforces the caste’s relation with occupation. Almost all the manual scavengers belong to lower castes.

    Various policy initiatives

    • Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2020: It proposes to completely mechanise sewer cleaning, introduce ways for ‘on-site’ protection and provide compensation to manual scavengers in case of sewer deaths.
    • Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013: Superseding the 1993 Act, the 2013 Act goes beyond prohibitions on dry latrines, and outlaws all manual excrement cleaning of insanitary latrines, open drains, or pits.
    • Rashtriya Garima Abhiyan: It started national wide march “Maila Mukti Yatra” for total eradication of manual scavenging from 30th November 2012 from Bhopal.
    • Prevention of Atrocities Act: In 1989, the Prevention of Atrocities Act became an integrated guard for sanitation workers since majority of the manual scavengers belonged to the Scheduled Caste.
    • Compensation: As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan vs Union of India case, a compensation of Rs 10 lakh is awarded to the victims family.

    Way forward

    • Regular surveys and social audits must be conducted against the involvement of manual scavengers by public and local authorities.
    • There must be proper identification and capacity building of manual scavengers for alternate sources of livelihood.
    • Creating awareness about the legal protection of manual scavengers is necessary.

     

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  • Renouncement of Indian Citizenship

    Over 1.6 lakh Indians renounced their citizenship in 2021, highest in the past five years, according to information provided by the Ministry of Home Affairs (MHA).

    Destination US

    • Over 78,000 Indians acquired the US citizenship, the highest among all other countries.
    • India does not allow dual citizenship (Pakistan does allow).
    • As many as 362 Indians living in China also acquired Chinese citizenship.

    Citizenship in India

    • Citizenship is in the Union List under the Constitution and thus under the exclusive jurisdiction of Parliament.
    • The Constitution does not define the term ‘citizen’ but gives, in Articles 5 to 11, details of various categories of persons who are entitled to citizenship.
    • Unlike other provisions of the Constitution, which came into being on January 26, 1950, these articles were enforced on November 26, 1949 itself, when the Constitution was adopted.

    Various provisions for Indian Citizenship

    Article 5

    • It provided for citizenship on the commencement of the Constitution.
    • All those domiciled and born in India were given citizenship.
    • Even those who were domiciled but not born in India, but either of whose parents was born in India, were considered citizens.
    • Anyone who had been an ordinary resident for more than five years, too, was entitled to apply for citizenship.

    Article 6

    • Since Independence was preceded by Partition and migration, Article 6 laid down that anyone who migrated to India before July 19, 1949, would automatically become an Indian citizen if either of his parents or grandparents was born in India.
    • But those who entered India after this date needed to register themselves.

    Article 7

    • Even those who had migrated to Pakistan after March 1, 1947 but subsequently returned on resettlement permits were included within the citizenship net.
    • The law was more sympathetic to those who migrated from Pakistan and called them refugees than to those who, in a state of confusion, were stranded in Pakistan or went there but decided to return soon.

    Article 8

    • Any Person of Indian Origin residing outside India who, or either of whose parents or grandparents, was born in India could register himself or herself as an Indian citizen with Indian Diplomatic Mission.

    Various Amendments for Citizenships

    • According to Article 11, Parliament can go against the citizenship provisions of the Constitution.
    • The Citizenship Act, 1955 was passed and has been amended four times — in 1986, 2003, 2005, and 2015.
    • The Act empowers the government to determine the citizenship of persons in whose case it is in doubt.
    • However, over the decades, Parliament has narrowed down the wider and universal principles of citizenship based on the fact of birth.
    • Moreover, the Foreigners Act places a heavy burden on the individual to prove that he is not a foreigner.

    (1) 1986 amendment

    • The constitutional provision and the original Citizenship Act gave citizenship on the principle of jus soli to everyone born in India.
    • However, the 1986 amendment to Section 3 was less inclusive as it added the condition that those who were born in India on or after January 26, 1950 but before July 1, 1987, shall be an Indian citizen.
    • Those born after July 1, 1987 and before December 4, 2003, in addition to one’s own birth in India, can get citizenship only if either of his parents was an Indian citizen at the time of birth.

    (2) 2003 amendment

    • The then government made the above condition more stringent, keeping in view infiltration from Bangladesh.
    • Now the law requires that for those born on or after December 4, 2004, in addition to the fact of their own birth, both parents should be Indian citizens or one parent must be Indian citizen and other should not be an illegal migrant.
    • With these restrictive amendments, India has almost moved towards the narrow principle of jus sanguinis or blood relationship.
    • This lay down that an illegal migrant cannot claim citizenship by naturalization or registration even if he has been a resident of India for seven years.

    (3) Citizenship (Amendment) Act, 2019

    • The amendment proposes to permit members of six communities — Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Pakistan, Bangladesh and Afghanistan — to continue to live in India if they entered India before December 14, 2014.
    • It also reduces the requirement for citizenship from 11 years out of the preceding 14 years, to just 6 years.
    • Two notifications also exempted these migrants from the Passport Act and Foreigner Act.
    • A large number of organisations in Assam protested against this Bill as it may grant citizenship to Bangladeshi Hindu illegal migrants.

    Losing of Indian Citizenship

    • The Citizenship Act, 1955 also lays down the three modes by which an Indian citizen may lose his/her citizenship.
    • It may happen in any of the three ways: renunciation, termination and deprivation.

    (1) Renunciation

    • An Indian Citizen of full age and capacity can renounce his Indian citizenship by making a declaration to that effect and having it registered.
    • But if such a declaration is made during any war in which India is engaged, the registration shall be withheld until the Central Government otherwise directs.
    • When a male person renounces his citizenship, every minor child of him ceases to be an Indian citizen.
    • Such a child may, however, resume Indian citizenship if he makes a declaration to that effect within a year of his attaining full age, i.e. 18 years.

    (2) Termination

    • If a citizen of India voluntarily acquires the citizenship of another country, he shall cease to be a citizen of India.
    • During the war period, this provision does not apply to a citizen of India, who acquires the citizenship of another country in which India may be engaged voluntarily.

    (3) Deprivation

    • Deprivation is a compulsory termination of citizenship of India.
    • A citizen of India by naturalization, registration, domicile and residence, may be deprived of his citizenship by an order of the Central Government if it is satisfied that the Citizen has:
      1. Obtained the citizenship by means of fraud, false representation or concealment of any material fact
      2. Shown disloyalty to the Constitution of India
      3. Unlawfully traded or communicated with the enemy during a war
      4. Within five years after registration or neutralization, been imprisoned in any country for two years
      5. Ordinarily resident out of India for seven years continuously

     

    Try this PYQ:

    Q.With reference to India, consider the following statements:

    1. There is only ‘one citizenship and one domicile’.
    2. A citizen by birth only can become the Head of State.
    3. A foreigner once granted the citizenship cannot be deprived of it under any circumstances.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 2 and 3 only

     

    [wpdiscuz-feedback id=”rk12hyha1y” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Curtailing ‘unparliamentary’ expressions could stifle voice of MPs

    Context

    The Lok Sabha secretariat recently released a booklet of unparliamentary words that will henceforth be banned and if used, will be expunged, it created an uproar among the opposing parties.

    Historical Background

    • In the early days of parliamentary functioning in England, members would challenge one another to a duel if they felt dishonoured by another member’s speech.
    • It led to the Speaker of the House of Commons removing the offending words from the written proceedings.
    • In 1873, the constitutional theorist Erskine May started recording words and expressions that the Speaker considered unparliamentary in an eponymous guide to parliamentary procedure.
    •  Later editions of the book laid down the principle of parliamentary language.

    Who decides the nature of a word

    • MPs have freedom of speech in Parliament.
    • But the presiding officers of Parliament have the final authority on what gets recorded in the day’s proceedings.
    •  MPs can also draw attention to any unparliamentary words and urge the chair to delete them.
    • Any reporting of the parliamentary discussion that includes the deleted portion is a breach of parliamentary privilege and invites the ire of the House.
    • Deleted words are then added by the parliament secretariat to its compilation of unparliamentary expressions.
    • Why context is important? In any language, the context in which an individual uses a word is critical.
    • “Context” means how the word is said, the circumstances in which it is said and when it is said.

    Issues with addition of unparliamentary words

    • Effectiveness of measure: The first issues about the list is its effectiveness in maintaining decency in parliamentary debates.
    • Impact on the debate: The second that that needs to be considered is the effectiveness of such a list help in promoting or stifling discussion.
    • Role of technology: Technological advances have ensured that Parliament can no longer control how its proceedings are recorded and disseminated.
    • As a result, even if Parliament edits its record, the unparliamentary expression will be available online.
    • In such a scenario, a compilation of the words classified as unparliamentary will not deter an MP from using them.

    Conclusion

    Parliament is all about the cut and thrust of debate. And in a political discussion, a restriction of unparliamentary expression, without considering context, will unnecessarily stifle the voices of MPs.

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  • Lessons on navigating the evolving geopolitics in the Middle East

    Context

    The US President’s visit to Saudi Arabia and Israel highlights not only some new trends that are reshaping the region but also eternal truths about international politics that are lost in the din of public discourse about the Middle East.

    What is the significance of the visit

    1] The US is not abandoning the Middle East

    • Contrary to the popular perception in the US, the region, and India, the US is not about to abandon the Middle East.
    • Many in the US political class believed that given America’s oil independence from the Middle East no longer needed the region.
    • American withdrawal from Afghanistan last year intensified these concerns and the region looked for alternative means to secure itself.
    • But as in the Indo-Pacific and Europe, the Biden Administration has concluded that it can’t cede its regional primacy in the Middle East and is ready to reclaim its leadership.
    • But as in the Indo-Pacific and Europe, the Biden Administration has concluded that it can’t cede its regional primacy in the Middle East and is ready to reclaim its leadership.

    2] No direct involvement

    • While the US will stay put in the Middle East, it is certainly changing the manner in which it acts.
    • In the past, the US saw itself as the sole provider of regional security and was ready to send its troops frequently into the region.
    • While the US does not want to be drawn directly into the region’s wars, it is determined to help its partners develop capabilities to secure themselves.
    • Arab-Israel reconciliation: Efforts are also being taken to produce greater reconciliation among Arabs and Israel and create stronger networks within and beyond the region to strengthen deterrence against adversaries.
    • The current effort to craft a Middle East Air Defence coalition is an example of this,
    • The I2U2 signals that the US no longer views the Middle East in isolation from its neighbourhood.

    3] Setting aside the differences on democracy vs autocracy debate

    • Biden had to modify his sweeping rhetoric about the “conflict between democracies and autocracies” as the principal contradiction in the world.
    • To sustain the US position in the region, Biden had no option but to sit with leaders of monarchies and autocracies that are America’s long-standing partners.

    4] Nation above identities

    • Biden’s focus on national interest found an echo in the Middle East, which is learning to put nation above other identities such as ethnicity and religion.
    • In the past, the region seemed immune to nationalism as it focused on transcendental notions of “pan Arabism” and “pan Islamism”.
    • Although the idea of Arab solidarity on the Palestine issue endures, many Arab leaders are not willing to let that come in the way of normalisation of relations with Israel.
    • A critical section of the Arabs, long seen as irreconcilably opposed to Israel, are now joining hands with the Jewish state to counter threats to their national security from Iran.
    • Many Gulf kingdoms, including Saudi Arabia and the UAE, are now consciously promoting a national identity among their peoples.
    •  Despite shared religion, Turkey’s leader Recep Erdogan has in recent years sought to undermine many of the Arab regimes.
    • Qatar has often found itself closer to non-Arab Turkey and in opposition to its Gulf Arab neighbours.

    Conclusion

    Delhi, whose Middle East policy today is imbued with greater realism, can hopefully discard the inherited ideological inertia, avoid the temptation of seeing the Middle East through a religious lens, and strive hard to realise the full possibilities awaiting India in the region.

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  • Pakistan and IMF talks: What lies ahead?

    The latest IMF press release maintains it would consider an extension of the current Extended Fund Facility (EFF) to end June 2023 and augment the fund amount to $7 billion for Pakistan.

    Pakistan seeks IMF bailout

    • Surprisingly, it took five months to reach the staff-level agreement.
    • The total disbursement under the current EFF to Pakistan has now been $4.2 billion.
    • The talks were originally aimed at releasing a tranche of $900 million.

    What is Extended Fund Facility (EFF)?

    • The EFF was established by the IMF to provide assistance to countries experiencing serious payment imbalances because of structural impediments or slow growth and an inherently weak balance-of-payments position.
    • An EFF provides support for comprehensive programs including the policies needed to correct structural imbalances over an extended period.

    What was the Pakistani EFF?

    • The 39-month EFF between the two was signed in July 2019 to provide funds amounting to Self-Drawing Rights (SDR) — $4,268 million.
    • The EFF was signed by Pakistan to address the medium-term balance of payment problem, and work on structural impediments and increase per capita income.

    Why did the talks take longer to conclude?

    • The IMF placed demands (all of which seem impossible for Pakistan) includes :
    1. Fiscal consolidation to reduce debt and build resilience
    2. Market-determined exchange rate to restore competitiveness
    3. Eliminate ‘quasi-fiscal’ losses in the energy sector and
    4. Strengthened institutions with transparency
    • Ousted Pakistani PM eased fuel prices. This was considered a major deviation under the EFF benchmarks.
    • Then govt gave tax amnesties to the industrial sector, impacted the tax regime and a structural benchmark for fiscal consolidation.
    • The IMF insisted on its demands before approving any release of the tranche.

    How important is the IMF support to Pakistan?

    • Pakistan’s economic situation is dire.
    • According to the Economic Survey of Pakistan 2022, the fiscal deficit in FY 22 was $18.6 billion, and the net public debt at $252 billion, which is 66.3% of the GDP.
    • The power sector’s circular debt is $14 billion.

    Why have the Pakistan-IMF relations remained complicated?

    • Structural reforms require long-term commitment, which have been sacrificed due to Pakistan’s short-sighted political goals.
    • Hence the urge to go to the IMF for fiscal stability has been repeated over time.

    Risks posed by a failed Pakistan

    • There is also a narrative that Pakistan has the fifth largest population with nuclear weapons that cannot be allowed to fail.
    • A section within Pakistan also places the geo-strategic location of the country would provide an edge for cooperation, rather than coercion.
    • Hence, this section believes, the IMF would continue to support.
    • Given the IMF’s increased assertion, Pakistan’s political calculations and the elections ahead, the relationship between the two is likely to remain complicated.

    What lies ahead for Pakistan and the IMF?

    • Despite the latest agreement, the road ahead for the IMF and Pakistan is not an easy one.
    • Political calculations and the elections ahead will play a role in Pakistan’s economic decision-making.
    • However, one thing is eminent Pakistan will certainly collapse someday badly like Sri Lanka.

    Try this PYQ from CSP 2022

    “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?

    (a) Asian Development Bank

    (b) International Monetary fund

    (c) United National Environment Programme Finance initiative

    (d) Word bank

     

    [wpdiscuz-feedback id=”md50hycvo5″ question=”Please leave a feedback on this” opened=”1″]Post your answer here.[/wpdiscuz-feedback]

    Back2Basics: Special Drawing Rights (SDRs)

    • SDRs, created by the IMF in 1969, are an international reserve asset and are meant to supplement countries’ reserves.
    • Adding SDRs to the country’s international reserves makes it more financially resilient.
    • Providing liquidity support to developing and low-income countries allows them to tide over the balance of payments (BOP) situations like the one India has been experiencing due to the pandemic and the one it faced earlier in 1991.
    • SDRs being one of the components of foreign exchange reserves (FER) of a country, an increase in its holdings is reflected in the BOP.

     

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  • Minority Status in India is State-dependent: Supreme Court

    The minority status of religious and linguistic communities is “State-dependent”, said the Supreme Court.

    What did the Supreme Court say?

    • Every person in India can be a minority in one State or the other.
    • One can be a minority outside his/her State.
    • Similarly, a Kannada-speaking person may be in minority in States other than Karnataka.

    What was the petition about?

    • The court was hearing a petition complaining that followers of Judaism, Bahaism and Hinduism are the real minorities in Ladakh, Mizoram, Lakshadweep, Kashmir, Punjab and the North-East States.
    • However, they cannot establish and administer educational institutions of their choice because of the non-identification of ‘minority’ at the State level.
    • Religious communities such as Hindus here are socially, economically, politically non-dominant and numerically inferior in several States.

    Various states on Minorities

    • The Centre gave the example of how Maharashtra notified ‘Jews’ as a minority community within the State.
    • Again, Karnataka notified Urdu, Telugu, Tamil, Malayalam, Marathi, Tulu, Lambadi, Hindi, Konkani and Gujarati as minority languages within the State.

    Who are the Minorities?

    • Muslims, Sikhs, Christians, Buddhists, Jain and Zoroastrians (Parsis) have been notified as minority communities under Section 2 (c) of the National Commission for Minorities Act, 1992.
    • As per the Census 2011, the percentage of minorities in the country is about 19.3% of the total population of the country.
    • The population of Muslims are 14.2%; Christians 2.3%; Sikhs 1.7%, Buddhists 0.7%, Jain 0.4% and Parsis 0.006%.
    • Minority Concentration Districts (MCD), Minority Concentration Blocks and Minority Concentration Towns, have been identified on the basis of both population data and backwardness parameters of Census 2001 of these areas.

    Defining Minorities

    • The Constitution recognizes Religious minorities in India and Linguistic minorities in India through Article 29 and Article 30.
    • But Minority is not defined in the Constitution.
    • Currently, the Linguistic minorities in India are identified on a state-wise basis thus determined by the state government whereas Religious minorities in India are determined by the Central Government.
    • The Parliament has the legislative powers and the Centre has the executive competence to notify a community as a minority under Section 2(c) of the National Commission for Minorities Act of 1992.

    Article 29: It provides that any section of the citizens residing in any part of India having a distinct language, script, or culture of its own, shall have the rights of minorities in India to conserve the same. Article 29 is applied to both minorities (religious minorities in India and Linguistic minorities in India) and also the majority. It also includes – rights of minorities in India to agitate for the protection of language.

    Article 30: All minorities shall have the rights of minorities in India to establish and administer educational institutions of their choice. Article 30 recognizes only Religious minorities in India and Linguistic minorities in India (not the majority). It includes the rights of minorities in India to impart education to their children in their own language.

    Article 350-B: Originally, the Constitution of India did not make any provision with respect to the Special Officer for Linguistic minorities in India. However, the 7th Constitutional Amendment Act, 1956 inserted Article 350-B in the Constitution. It provides for a Special Officer for Linguistic Minorities appointed by the President of India. It would be the duty of the Special Officer to investigate all matters relating to the safeguards provided for linguistic minorities under the Constitution.

    Try this PYQ:

    Which one of the following categories of Fundamental Rights incorporates protection against untouchability as a form of discrimination?

    (a) Right against Exploitation

    (b) Right to Freedom

    (c) Right to Constitutional Remedies

    (d) Right to Equality

     

    [wpdiscuz-feedback id=”l83g3tx53v” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Municipal finances

    Context

    Recently, the Indian Institute for Human Settlements (IIHS) analysed data from 80 urban local bodies (ULBs) across 24 States between 2012-13 and 2016-17 to understand ULB finance and spending, and found some key trends.

    Health of municipal finances

    • The 74th Constitution Amendment Act was passed in 1992 mandating the setting up and devolution of powers to urban local bodies (ULBs) as the lowest unit of governance in cities and towns.
    • Constitutional provisions were made for ULBs’ fiscal empowerment.
    • Challenges in fiscal empowerment: Three decades since, growing fiscal deficits, constraints in tax base expansion, and weakening of institutional mechanisms that enable resource mobilisation remain challenges.
    • Revenue losses after implementation of the Goods and Services Tax (GST) and the pandemic have exacerbated the situation.

    Analysing the trends in municipal finances

    Recently, the Indian Institute for Human Settlements (IIHS) analysed data from 80 ULBs across 24 States between 2012-13 and 2016-17 to understand ULB finance and spending, and found some key trends.

    1] Own sources of revenue less than half of total revenue

    •  Key sources of revenue: The ULBs’ key revenue sources are taxes, fees, fines and charges, and transfers from Central and State governments, which are known as inter-governmental transfers (IGTs).
    • Important indicator of financial health: The share of own revenue (including revenue from taxes on property and advertisements, and non-tax revenue from user charges and fees from building permissions and trade licencing) to total revenue is an important indicator of ULBs’ fiscal health and autonomy.
    • The study found that the ULBs’s own revenue was 47% of their total revenue.
    • Of this, tax revenue was the largest component: around 29% of the total.
    • Property tax, the single largest contributor to ULBs’ own revenue, accounted for only about 0.15% of the GDP.
    • Figures for developing countries: The corresponding figures for developing and developed countries were significantly higher (about 0.6% and 1%, respectively) indicating that this is not being harnessed to potential in India.

    2] High dependence on IGTs

    • Most ULBs were highly dependent on external grants — between 2012-13 and 2016-17, IGTs accounted for about 40% of the ULBs’ total revenue.
    •  Transfers from the Central government are as stipulated by the Central Finance Commissions and through grants towards specific reforms, while State government transfers are as grants-in-aid and devolution of State’s collection of local taxes.

    3] Tax revenue is largest revenue for larger cities, while smaller cities are more dependent on grants

    • here are considerable differences in the composition of revenue sources across cities of different sizes.
    • Class I-A cities (population of over 50 lakh) primarily depend on their own tax revenue, while Class I-B cities and Class I-C cities (population of 10 lakh-50 lakh and 1 lakh-10 lakh, respectively) rely more on IGTs.
    • Own revenue mobilisation in Class I-A cities increased substantially.
    • It was primarily driven by increases in non-tax revenue

    4] Increasing operations and maintenance (O&M) expenses

    • Operations and maintenance (O&M) expenses are on the increase but still inadequate.
    • While the expenses were on the rise, studies (such as ICRIER, 2019 and Bandyopadhyay, 2014) indicate that they remained inadequate.
    • For instance, O&M expenses incurred in 2016-17 covered only around a fifth of the requirement forecast by the High-Powered Expert Committee for estimating the investment requirements for urban infrastructure services.
    • O&M expenses should ideally be covered through user charges, but total non-tax revenues, of which user charges are a part, are insufficient to meet current O&M expenses.
    • The non-tax revenues were short of the O&M expenditure by around 20%, and this shortfall contributed to the increasing revenue deficit in ULBs.

    Way forward

    • Improving own revenue: It is essential that ULBs leverage their own revenue-raising powers to be fiscally sustainable and empowered and have better amenities and quality of service delivery.
    • Stability in IGT: Stable and predictable IGTs are particularly important since ULBs’ own revenue collection is inadequate.
    • O&M expenses: Increasing cost recovery levels through improved user charge regimes would not only improve services but also contribute to the financial vitality of ULBs.
    • Measures need to be made to also cover O&M expenses of a ULB for better infrastructure and service.
    • Tapping into property taxes, other land-based resources and user charges are all ways to improve the revenue of a ULB.

    Conclusion

    The health of municipal finances is a critical element of municipal governance which will determine whether India realises her economic and developmental promise.

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  • In news: India-Bhutan Relations

    After over two years of the COVID-19-induced lockdown, Bhutan will open its doors to tourists on September 23 with a new expensive policy for Indians and other foreign tourists.

    India-Bhutan Relations: A backgrounder

    • India and Bhutan have had long-standing diplomatic, economic and cultural relations
    • Bhutan and India relations are governed by a friendship treaty that was renegotiated only in 2007, subjecting the Himalayan nation’s security needs to supervision.
    • Treaty of Friendship in 2007, which brought into the India-Bhutan relationship “an element of equality.”
    • The Treaty provides for perpetual peace and friendship, free trade and commerce, and equal justice to each other’s citizens.

    What is the Treaty of Friendship?

    • On August 8, 1949, Bhutan and India signed the Treaty of Friendship, calling for peace between the two nations and non-interference in each other’s internal affairs.
    • India re-negotiated the 1949 treaty with Bhutan and signed a new treaty of friendship in 2007.
    • The new treaty replaced the provision requiring Bhutan to take India’s guidance on foreign policy with broader sovereignty and not require Bhutan to obtain India’s permission over arms imports.
    • Under the 2007 India-Bhutan Friendship Treaty, the two sides have agreed to “cooperate closely with each other on issues relating to their national interests.”
    • Neither Government shall allow the use of its territory for activities harmful to the national security and interest of the other

    Various facets of ties

    (1) Commercial Relations

    • India is Bhutan’s largest trading partner.
    • India and Bhutan have signed an Agreement on Trade, Commerce and Transit on in 2016, which provides for a free trade regime between the two countries.
    • Tourism is another point of convergence.

    (2) Energy Cooperation

    • A scheme titled “Comprehensive Scheme for Establishment of Hydro-meteorological and Flood Forecasting Network on rivers Common to India and Bhutan” is in operation.
    • The network consists of 32 Hydro-meteorological/ meteorological stations located in Bhutan and being maintained by the Royal Government of Bhutan with funding from India.
    • The data received from these stations are utilized in India for formulating flood forecasts.

    Significance of Bhutan to India

    • Buffer to China: Bhutan is a buffer state between India and China. Bhutan shares a 470 km long border with China.
    • Vital connectivity through chicken’s neck: The Chumbi Valley is situated at the tri-junction of Bhutan, India and China and is 500 km away from the “Chicken’s neck” in North Bengal.
    • Security in North-East: Bhutan has in the past cooperated with India and helped to flush out militant groups in NE.
    • Chinese inroad in Bhutan: China is interested in establishing formal ties with Thimphu, where it does not yet have a diplomatic mission.

    China factor in ties: China predates on small neighbours

    • Bhutan is strategically important for both India and China. Chinese territorial claims in western Bhutan are close to the Siliguri Corridor.
    • Beijing is reportedly insisting on Bhutan establishing trade and diplomatic relations as a quid pro quo for a border settlement.
    • Bhutan is currently India’s only neighbour who has stayed away from joining China’s Belt and Road Initiative (BRI), but that may change if India can’t make itself an attractive ally and neighbour.

    Why does India need Bhutan?

    • Bhutan has always been India’s most trusted ally in South Asia and has often put India’s security at the forefront.
    • Come to think of it, in December 2003, Bhutan’s fourth king personally led the army to throw out Indian militants living in Bhutan’s jungles.
    • Bhutan was also the only South Asian country besides India not to attend China’s Belt and Road Initiative forum in May 2017.
    • In other words, land-locked Bhutan has held its end of the bargain.

    Various cooperation developments

    • Maitri Initiative: Bhutan is the first country to receive the Covishield vaccines under India’s Vaccine Maitri Initiative.
    • Financial connectivity: It has touched new heights through the launch of the RuPay card and the BHIM app.
    • Start-Up ecosystem: Both nations successfully linked up the Start-Up systems of our two countries via structured workshops; through the National Knowledge Network & the Druk-REN connection.
    • E-Library project: It has opened up new vistas of education and knowledge sharing between two countries.

    Irritants in ties

    • India has not invested in significantly in Bhutan and other smaller neighbours that modicum of trust which is critical in building genuine goodwill.
    • This means not only increasing people-to-people contact but also being sensitive to Bhutan’s desire for a wider engagement beyond India’s borders. This means respecting Bhutan as an equal, sovereign nation-state.

    Conclusion

    • The Indo-Bhutan friendship is built on shared values and aspirations, trust and mutual respect.
    • Bhutan’s foreign policy framework holds the relationship with India as being integral to its national interest.
    • The Indian approach to Bhutan has necessarily to be tailored while being sensitive to the growing Bhutanese aspirations of being considered equal.

     

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