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GS Paper: GS2

  • Four lessons for the Quad from Asia’s history and geopolitics

    The article highlights the 4 issues related to the history and geopolitics of Asian that the Quad members should pay attention to while formulating the future course of action. 

    The 4 factors

    If the Quad is to prosper as a geopolitical construct, it would do well to heed four lessons drawn from the long arc of Asia’s history and geopolitics.

    1) Lack of existence of Indo-Pacific system

    • There has never been Indo-Pacific system ever since the rise of the port-based kingdoms of Indochina in the first half of the second millennium.
    •  There were two Asian systems — an Indian Ocean system and an East Asian system — with intricate sub-regional balances.
    • The effort by a U.S. to artificially manufacture to combine the Indo and the Pacific into a unitary system is unlikely to succeed.

    2) Lack of peaceful existence dominated by any power

    • The Indo-Pacific region possesses no prior experience of long period of peace, prosperity and stability engineered from its maritime fringes.
    • Rather, dynamic long cycles of Chinese influence radiating outwards have alternated with sharp periods of turmoil.
    • The of ASEAN-centred multilateralism is more in tune with regional tradition and historical circumstance.
    • For their part, the Indo-Pacific’s ‘flanking powers’, India and Japan, have never balanced Chinese power throughout their illustrious histories.

    3) India must use its leverage judiciously

    •  The sea lines of communication constitute the important links connecting Indian Ocean to the Western Pacific.
    • It is also a valuable arena of leverage vis-à-vis Chinese shipping and resource flows.
    • This leverage must be wielded judiciously on India’s terms, not on the Quad’s terms.
    • The Quad, after all, has little to offer materially with regard to New Delhi’s continental two-front dilemma.
    • However, ceding this chokepoint leverage will invite overwhelming Chinese pressure against the full range of India’s South Asian interests — to which the other Quad members possess neither will nor desire to answer.

    4) Check on China’s India Ocean Ambitions

    •  The Quad has a valuable role to play as a check on China’s Indian Ocean ambitions.
    • India must develop ingrained habits of interoperable cooperation with its Quad partners.
    • This interoperable cooperation could pre-emptively dissuade China from mounting a naval challenge in its backyard.

    Conclusion

    The Quad must consider these factors while formulating the future course of action.

  • Pakistan likely to remain on FATF Greylist

    Pakistan is unlikely to exit the Financial Action Task Force (FATF’s) greylist with this plenary session as well.

    Practice question for mains:

    Q.What is FATF? Discuss its role in combating global financial crimes and terror financing.

    What is the FATF?

    • FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
    • The FATF Secretariat is housed at the OECD headquarters in Paris.
    • It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.

    Why is Pakistan under its scanner?

    • Pakistan has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
    • FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
    • In June 2018, Pakistan gave a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime, and to address its strategic counter-terrorism financing-related deficiencies.
    • Pakistan and the FATF then agreed on the monitoring of 27 indicators under a 10-point action plan, with specific deadlines.
    • The understanding was that the successful implementation of the action plan, and its physical verification by the APG, would lead the FATF to move Pakistan out of the Grey List.
    • However, Islamabad managed to satisfy the global watchdog over just five of them.

    B2BASICS

    What are the Black List and Grey List of the FATF?

    FATF has 2 types of lists;

    1.  Black List

    2. Grey List

    1. Meaning of Black List: Only those countries are included in this list that FATF considers as uncooperative tax havens for terror funding. These countries are known as Non-Cooperative Countries or Territories (NCCTs). In other words; countries that are supporting terror funding and money laundering activities are placed in the Blacklist.

    The FATF blacklist or OECD blacklist has been issued by the Financial Action Task Force since 2000 and lists countries which it judges to be non-cooperative in the global fight against money laundering and terror funding.

    The FATF updates the blacklist regularly, adding or deleting entries.

    grey list 2018

    (This map shows the countries included in the Greylist)

    2. Meaning of Grey List: Those countries which are not considered as the safe heaven for supporting terror funding and money laundering; included in this list. The inclusion in this list is not as severe as blacklisted.

    Now Grey list is a warning given to the country that it might come in Black list (Just like a yellow card in a football match). If a country is unable to curb mushrooming of terror funding and money laundering; it is shifted from grey list to black list by the FATF.

     

  • Foreign Contribution (Regulation) Act (FCRA)

    The Ministry of Home Affairs (MHA) has asked all NGOs seeking foreign donations to open a designated FCRA account at the State Bank of India’s New Delhi branch.

    What is the FCRA?

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    What happens once registered?

    • Registered associations can receive a foreign contribution for social, educational, religious, economic and cultural purposes.
    • Filing of annual returns, on the lines of Income Tax, is compulsory.
    • In 2015, the MHA notified new rules, which required NGOs to give an undertaking that the acceptance of foreign funds.
    • It ruled that it is not likely to prejudicially affect the sovereignty and integrity of India or impact friendly relations with any foreign state and does not disrupt communal harmony.
    • It also said all such NGOs would have to operate accounts in either nationalized or private banks which have core banking facilities to allow security agencies access on a real-time basis.

    Who cannot receive foreign donations?

    • Members of the legislature and political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
    • However, in 2017 the MHA amended the 1976-repealed FCRA law paving the way for political parties to receive funds from the Indian subsidiary of a foreign company or a foreign company in which an Indian holds 50% or more shares.

    How else can receive foreign funding?

    • The other way to receive foreign contributions is by applying for prior permission.
    • It is granted for receipt of a specific amount from a specific donor for carrying out specific activities or projects.
    • But the association should be registered under statutes such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or Section 25 of the Companies Act, 1956.
    • A letter of commitment from the foreign donor specifying the amount and purpose is also required.

    When is a registration suspended or cancelled?

    • The MHA on inspection of accounts and on receiving any adverse input against the functioning of an association can suspend the FCRA registration initially for 180 days.
    • Until a decision is taken, the association cannot receive any fresh donation and cannot utilise more than 25% of the amount available in the designated bank account without the permission of the MHA.
    • The MHA can cancel the registration of an organisation which will not be eligible for registration or grant of ‘prior permission’ for three years from the date of cancellation.

  • E-VIN network to handle COVID-19 vaccine supply

    The eVIN network, which can track the latest vaccine stock position; the temperature at storage facility; geo-tag health centres; and maintain facility-level dashboard, is being repurposed for the delivery of the COVID-19 vaccine.

    Try this question from CSP 2016:

    Q.‘Mission Indradhanush’ launched by the Government of India pertains to:

    (a) Immunization of children and pregnant women

    (b) Construction of smart cities across the country

    (c) India’s own search for the Earth-like planets in outer space

    (d) New Educational Policy

    What is eVIN network?

    • The eVIN is an innovative technological solution aimed at strengthening immunization supply chain systems across the country.
    • This is being implemented under the National Health Mission (NHM) by the Ministry of Health and Family Welfare.
    • It aims to provide real-time information on vaccine stocks and flows, and storage temperatures across all cold chain points in the country.
    • This system has been used during the COVID pandemic for ensuring the continuation of the essential immunization services and protecting our children and pregnant mothers against vaccine-preventable diseases.

    Components of eVIN

    • eVIN combines state-of-the-art technology, a strong IT infrastructure and trained human resource to enable real-time monitoring of stock and storage temperature of the vaccines kept in multiple locations across the country.
    • At present, 23,507 cold chain points across 585 districts of 22 States and 2 UTs routinely use the eVIN technology for efficient vaccine logistics management.

    Benefits of eVIN

    • It has helped create a big data architecture that generates actionable analytics encouraging data-driven decision-making and consumption-based planning.
    • It helps in maintaining optimum stocks of vaccines leading to cost savings. Vaccine availability at all times has increased to 99% in most health centres in India.
    • While instances of stock-outs have reduced by 80%, the time taken to replenish stocks has also decreased by more than half, on an average.
    • This has ensured that every child who reaches the immunization session site is immunized, and not turned back due to unavailability of vaccines.

  • Federalism, now a partisan internal dialogue

    Against the backdrop of the ongoing tussle between the states and the Centre over the issue of GST compensation, the article analyses the evolution of federalism and power-sharing in India.

    GST and federalism

    • At the first sign of stress, the nation unified in a singular system of taxation (GST) turned into a policy of every-state-for-itself.
    • Evidence of seriously miscued revenue estimates without pragmatic tax rate, was accumulating at an alarming pace.
    • The Comptroller and Auditor-General of India (CAG) recently revealed how a cess meant to remedy shortfalls in GST yields, was retained in central government revenues, in violation of all applicable norms.
    • This revelation does little to build trust between the Centre and the States at a time when the States’ facing lack of resource and the central government is advising them to borrow.
    • Some states believe that the onus of borrowing should rest with the central government.

    Higher borrowing limit for states with conditions

    • The central government sanctioned a higher borrowing limit for States through the current year.
    • In the bargain, it imposed conditionalities:
    • 1) Enforcing a singular standard for the implementation of policies across a vast and diverse country.
    • 2) Improving India’s ranking as a place for “doing business”.
    • States will have unconditional access to borrowings equivalent to half a percentage point of their gross output.
    • But, subsequently, every tranche of a quarter point will be premised on progress in implementing the “one nation, one ration card” scheme, and improvements in the “ease of doing business”.

    Federalism in India

    • Aside from the contents and definitions sections, the word “federal” occurs in only one operational article of the Indian Constitution, in reference to the apex judicial body created in colonial times.
    • When this body was transformed into the Supreme Court at the moment the Constitution came into force, the word seemingly lost all operative value.
    • The distribution of powers and responsibilities between various tiers of the governmental system, was achieved without explicit recognition of federalism as a governing principle.
    • In actual operational terms, the relationship of Centre and States followed different paradigms through various phases of politics.
    •  At the time of Independence, the distribution of powers between Centre and States was transformed into an internal discussion of the Congress.

    Evolution of power-sharing and politics

    • The “Congress system”, as the political scientist Rajni Kothari called it, was seen at one time to have sufficient internal flexibility and resilience to absorb all factional pressures.
    • The first challenge came from the cultural terrain, compelling a reluctant national leadership to accept linguistic reorganisation of States.
    • And then, as ambitions of nation-building through rapid industrialisation resulted in the possibility of a non-Congress politics.
    • The Congress lost power in a number of key States in 1967.
    • The polity moved into a new phase when politics was about “waves” at the national or state level either in favour of, or against the Congress.
    • From 1989 onwards, politics settled into another distinct phase, when outcomes at the national level were the resultant of very separate State-level results.

    Conclusion

    Though federal structure could not be free from Centre-State power struggle, that struggle should not come into the development of the nation. In this context, it is the responsibility of the Centre to address the issues facing the state amid pandemic.

  • Freedom of Navigation Operations (FONOPs)

    Indian Navy is scheduled to hold another Passage Exercise (PASSEX) with the US to undertake Freedom of Navigation Operations (FONOP).

    Try this question:

    Q.What do you mean by Freedom of Navigation Operations (FONOPs)? What are its legal backings?  Discuss its significance.

    Freedom of Navigation Operations

    • FONOPs are closely linked to the concept of freedom of navigation, and in particular to the enforcement of relevant international law and customs regarding freedom of navigation.
    • Freedom of navigation has been thoroughly practised and refined, and ultimately codified and accepted as international law under UNCLOS, in a legal process that was inclusive and consent-based.
    • The drafting of UNCLOS was driven in part by states’ concerns that strong national maritime interests could lead to excessive maritime claims over coastal seas, which could threaten freedom of navigation.
    • FONOPs are outgrowths of this development of international law, based on sovereign equality and international interdependence.

    Significance of FONOPs

    • FONOPs are a method of enforcing UNCLOS (United Nations Convention on the Law of the Sea) and avoiding these negative outcomes by reinforcing freedom of navigation through practice.
    • It is exercised by sailing through all areas of the sea permitted under UNCLOS, and particularly those areas that states have attempted to close off to free navigation as defined under UNCLOS.

    Back2Basics: UNCLOS

    • The Law of the Sea Treaty formally known as the Third United Nations Convention on the Law of the Sea was adopted in 1982 at Montego Bay, Jamaica. It entered into force in 1994.
    • The convention establishes a comprehensive set of rules governing the oceans and to replace previous U.N. Conventions on the Law of the Sea
    • The convention defines the distance of 12 nautical miles from the baseline as Territorial Sea limit and a distance of 200 nautical miles distance as Exclusive Economic Zone limit.

  • Greater Male Connectivity Project (GMCP)

    Following up on India’s announcement of a $500 million package to the Maldives, the Exim Bank of India and the Maldives’s Ministry of Finance signed an agreement for $400 million in Male.

    Try this question from 2014:

    Q.Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’?

    (a) Andaman and Nicobar

    (b) Nicobar and Sumatra

    (c) Maldives and Lakshadweep

    (d) Sumatra and Java

    Greater Male Connectivity Project

    • The GMCP consists of a number of bridges and causeways to connect Male to Villingili, Thilafushi and Gulhifahu islands that span 6.7 km.
    • It would ease much of the pressure of the main capital island of Male for commercial and residential purposes.
    • When completed, the project would render the Chinese built Sinamale Friendship bridge connecting Male to two other islands, thus far the most visible infrastructure project in the islands.
    • At present, India-assisted projects in the region include water and sewerage projects on 34 islands, reclamation project for the Addl island, a port on Gulhifalhu, airport redevelopment at Hanimadhoo, and a hospital and a cricket stadium in Hulhumale.

  • The federalism test

    The GST has been hailed as the grand bargain and the success story of the federalism. But the economic disruption caused by the pandemic has put it to test. The article deals with the issue of GST compensation.

    Compensating the loss of GST revenue: 2 options

    • In the 41st meeting of the GST Council, the Union government had presented the states with two options.
    • The Centre had estimated the states’ total loss of GST revenue at Rs 3 lakh crore, of which, Rs 65,000 crore was expected to accrue from the compensation cess.
    • Of the remaining Rs 2.35 lakh crore, the loss due to the pandemic was estimated at Rs 1.28 lakh crore.
    • The first option was to provide states a special window to borrow Rs 97,000 crore from the RBI, which was later revised to Rs 1.1 lakh crore.
    • Under this option, both the interest payments and the repayments would be made from future collections of the compensation cess.
    • In the second option, the entire shortfall of Rs 2.35 lakh crore could be borrowed from the market and the states would have to bear the interest costs, but the repayments would be adjusted against future collections of the cess.
    • 10 states have rejected both the options and have stated that it is the Centre’s responsibility to compensate the states, and therefore, it should borrow.

    Commitment of the Centre

    • The minutes of the 7th and 8th GST Council meeting show that most of the states wanted the Centre to commit on paying compensation from the Consolidated Fund of India (CFI).
    • On that demand the Union Finance Minister had stated that in case the amount in the GST compensation fund falls short of the compensation payable in any bi-monthly period, the GST Council shall decide the mode of raising additional resources including borrowing from the market which could be repaid by the collection of cess in the sixth year or further subsequent years.
    • Thus, there was a clear commitment of the Centre on the issue of compensation and the method of recouping the loss.

    Impact on the Centre-State relations

    • The payment of compensation has plunged the Union-state relationship to a new low.
    • First, not recognising the Centre’s commitment will make states wary of any future reforms involving an agreement with the Centre.
    • Second, giving selective press statements to pressurise the states into accepting one or the other option does not infuse confidence.
    • Third, there was a statement by the Union finance ministry officials that the GST Council does not have jurisdiction over-borrowing and borrowing is an individual state and Centre’s decision under Article 293 of the Constitution.
    • If so, why were the two borrowing options presented to the states in the meeting of the Council?

    Way forward

    • It is the Centre’s commitment to find the compensation mechanism and borrowing is one of the options — that must be discussed in the Council.
    • Furthermore, if the commitment of the Centre is recognised as admitted by the finance minister in the 7th GST council meeting, the Centre should take the responsibility to borrow.
    • Both interest payments and repayment of the principal liability can be met from future collections from the cess.

    Conclusion

    This issue is of immense significance for the future of Centre-state relations. But pressuring states on the basis of political strength will have adverse consequences for the country’s federal structure.

  • 15 Years of Right to Information

    Fifteen years after the Right to Information (RTI) Act came into force; more than 2.2 lakh cases are pending at the Central and State Information Commissions, which are the final courts of appeal under the transparency law.

    Try this question:

    Q.“RTI is a tool for empowering ordinary citizens and changing the culture of governance in India.” Discuss.

    Right to Information

    • RTI is an act of the parliament which sets out the rules and procedures regarding citizens’ right to information.
    • It replaced the former Freedom of Information Act, 2002.
    • Under the provisions of RTI Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within 30.
    • In case of the matter involving a petitioner’s life and liberty, the information has to be provided within 48 hours.
    • The Act also requires every public authority to computerize their records for wide dissemination and to proactively publish certain categories of information so that the citizens need minimum recourse to request for information formally.

    Governing of RTI

    The Right to information in India is governed by two major bodies:

    1. Central Information Commission (CIC) – Chief Information commissioner who heads all the central departments and ministries- with their own public information officers (PIO)s. CICs are directly under the President of India.
    2. State Information Commissions (SIC)– State Public Information Officers or SPIOs head over all the state department and ministries. The SPIO office is directly under the corresponding State Governor.
    • State and CIC are independent bodies and CIC has no jurisdiction over the SIC.

    Fundamental status of RTI

    • RTI is a fundamental right for every citizen of India.
    • Since RTI, is implicit in the Right to Freedom of Speech and Expression under Article 19 of the Indian Constitution, it is an implied fundamental right.

    Limitation to RTI

    • Information disclosure in India is restricted by the Official Secrets Act 1923 and various other special laws, which the new RTI Act relaxes.
    • RTI has proven to be very useful but is also counteracted by the Whistle Blowers Protection Act, 2011.

  • Redefining cities

    The article the need for liberal and realistic definition of the ‘urban’ area in the next Census and mention the implications of such change.

    2 ways to define urban areas

    1) Statutory town

    • These towns are defined by state governments and place India’s urbanisation rate at 26.7%.
    • A statutory town includes all places with a municipality, corporation, cantonment board or notified town area committee.

    2) Census-based criteria

    • Census adopts three criteria to define what is urban.
    • The three criteria are:
    • i) a minimum population of 5,000;
    • ii) at least 75% of the male main working population engaged in non-agricultural pursuits, and
    • iii) a density of population of at least 400 persons per sq km
    • This, coupled with statutory towns, pegs India’s urbanisation rate at 31%.
    • Total number of towns (state and census) stands at 7,933, together constituting a 377-mn population.

    Why there is a need for changing the definition of ‘urban’

    • There is growing evidence—mostly from satellite imagery—that India is way more urban than the 2011 Census estimate.
    • This is quite plausible because there is a large sum of money allocated for rural development, and it is in the interest of state governments to under-represent urbanisation.
    • Besides, the Census’s stringent definition was first carved out in 1961 which do not reflect the realities of the 21st century.
    • India won’t be alone in changing these definitions for Census 2021.
    • Many countries, such as China, Iran, the UK, among others, have changed the definition of ‘urban’ from one census to another.

    Getting the right picture of urbanisation

    •  A more liberal and realistic definition in the upcoming census will present the actual picture of urbanisation.
    • For instance, if we just use the population density criteria like 37 other countries, with the 400 people per sq km threshold, we will add around 500 mn people to the urban share of the population.
    • This pegs the urbanisation rate at over 70%!

    What will be its implications?

    • First, the budgetary allocation will reflect the reality and scales will balance between rural and urban areas.
    • Second, the urban areas will not be governed through rural governance structures of Panchayati Raj Institutions.
    • Third basic urban infrastructure like sewerage networks, fire services, building regulations, high-density housing, transit-oriented development, piped drinking water supply.
    • Fourth, these newly defined urban areas could act as a new source of revenue for funding local infrastructure development.
    • This would ease pressure on state finances.
    • Lastly, the rethink of urban definition would have an impact on the regional and national economy.
    • These newly defined urban areas will open them to new infrastructure such as railway lines, discom services, highway connectivity, creation of higher education institutes which will together increase the connectivity and resource capability at the local level.
    • This will not only boost the local economy but also ease pressure on bigger cities and help in cluster level development.

    Conclusion

    A rethink of urban definition in Census 2021, particularly with some degrowth in urban areas due to Covid, will bode well for India for coming decades in more ways than one.

    Source:-

    https://www.financialexpress.com/opinion/redefining-cities-a-new-urban-consensus/2102154/