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Coronavirus – Economic Issues

Is printing money an option to tide over the crises

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Monetisation of debt

Mains level: Paper 3-Option to find revenue to deal with the crises.

India has been dealing with unprecedented crises-with China on border and with economy and pandemic within. Fighting these crises require resources. So, this article examines the options to raise revenue and the consequences that come with them.

Increase in financial burden to counter China

  •  The Chinese military threat calls for immediate and strategic action by our defence and foreign affairs establishments.
  • India’s war against Pakistan in Kargil in May 1999 provides hints of the financial burden of a military threat.
  • India’s defence expenditure in the war year shot up by nearly 20% from the previous year.
  •  India’s defence budget for the next financial year was 2.7% of nominal GDP, the highest in decades.
  • China is a far mightier power than Pakistan.
  • India’s defence budget has been whittled down to just 2% of GDP for the financial year 2021.
  • China’s defence budget is nearly four times larger.
  • In all likelihood, the Chinese conflict will stretch central government finances by an additional one to two percentage points of GDP.

Economics of healthcare

  •  The combined public health expenditure of States and the central government in India is a mere 1.5% of GDP.
  • While China’s is at 3% and America’s at 9%.
  • The COVID-19 epidemic is expected to linger on for another two years.
  • There is no option other than to significantly ramp up India’s health expenditure.
  • So, government will need additional funds of the equivalent of at least one percentage point of GDP to continue the fight against COVID-19.

But economy is in bad shape

  • India’s economy has four major drivers: 1) Spending on consumption. 2) Government spending. 3) Investment. 4) external trade.
  • Spending by people is the largest contributor to India’s economic growth every year.
  • For every ₹100 in incremental GDP, ₹60 to ₹70 comes from people’s consumption spending.
  • The lockdown shut off people from spending for two full months.
  • India’s economy will contract for the first time in nearly five decades.
  • With the global economy in tatters, trade is not a viable alternative to offset the loss from consumption.
  • Investment is also not a viable option at this stage since the demand for goods and services has fallen dramatically.

So, what we want is new “New Deal”

  • There are only two options to come out of this situation.
  • 1) Either put money in the hands of the needy to stimulate immediate consumption.
  • 2) Or, the government has to embark on a massive spending spree, akin to the “New Deal”.
  • New Deal was a series of programmes and projects instituted in the U.S. during the Great Depression of the 1930s.
  • Government will need to inject incremental funds of five percentage points of GDP to absorb the economic shock and kick start the spending cycle again.

Findind resources while aoiding “junk rating”

  • Additional expenditure on health, defence and stimulus package plus making up for a shortfall in revenue will lead to a fiscal deficit of 10% of GDP.
  • The only option for the government to finance its needs is to borrow copiously.
  • Borrowing will obviously push up debt to ominous levels.
  • When government debt rises dramatically, it gives rise to a “junk” crisis.
  • With rising debt levels, international rating agencies will likely downgrade India’s investment rating to “junk”.
  • Junk rating will then trigger panic among foreign investors.
  • India thus faces a tough dilemma — save the country’s borders, citizens and economy or prevent a “junk” rating.

Is printing money an option?

  • Economic theory states that if money is printed at will, it can lead to a massive spike in prices and inflation.
  • This theory has fallen flat in the past decade in developed nations such as America.
  • The U.S dollar, by virtue of being the world’s reserve currency, has in-built protection against a currency crisis that can be triggered by at-will printing of money.
  • India don’t have that protection.
  • Hence, the Reserve Bank of India can just create money at will and transfer them to government coffers electronically, some argue.
  • Whether money is printed or borrowed from others, it will still be counted as government debt.
  • And so, cannot escape a potential downgrade to a “junk” rating.

Consider the question “As the government has been dealing with the unprecedented crises, it has to explore the option of monetisation of its debt. Examine the issues with such a move.”

Conclusion

How India emerges from this crisis will shape not just India’s destiny but the world’s. The best course of action is to borrow unabashedly to pull India out of the crisis and deal with the consequences of a potential “junk” nation label.

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Higher Education – RUSA, NIRF, HEFA, etc.

Online education in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MOOC

Mains level: Paper 2- Adopting online mode for education amid pandemic

What are the benefits of Online Learning in distress situations?

  • In pandemic situation like today’s, where due to nationwide lockdown, all schools, colleges, universities were shut down, online learning comes as a savior to students and provided them with an opportunity to continue learning even while at home.
  • There was anxiety, particularly about the graduating batches of students, lest the ongoing session should be declared a ‘zero semester’. There were attempts from individual teachers to keep their students engaged. A few universities made arrangements for teachers to hold their classes virtually through video conferencing services such as Zoom. These are well-meaning attempts to keep the core educational processes going through this period.
  • Many private and government colleges in the country had been conducting online classes. Very small aperture terminals (VSATs) are still used by top Business schools in the country to create a closed user group (CUGs), which offers online classes globally. However, COVID-19 has hastened
  • Online education, a result of the digital world has brought a lot to the learning table at all levels of education, beginning from preschool up to higher level institutions. The move to remote learning has been enabled by several online tech stacks such as Google Classroom, Blackboard, Big Blue Button, Zoom and Microsoft Teams, all of which play an important role in this transformation.
  • With the development of ICT in education, online video-based micro-courses, e-books, simulations, models, graphics, animations, quizzes, games, and e-notes are making learning more accessible, engaging, and contextualized.
  • To ensure that learning never stops, the online education sector, and mobile networks have become the preferred platform. Teachers are preparing lessons using distance learning tools, and parents are learning new teaching techniques at home. Providing aid are the entrepreneurs offering online learning apps like BYJU’s, Adda24x7, Duolingo, Khan Academy, Witkali and several others.
  • Universities like World University of Design, Jawahar Lal Nehru University, Jamia Millia Islamia, Amity, IP University, Lovely Professional University and Mumbai University are offering online classes across different subjects.
  • Schools in 165 countries around the world have closed due to the Corona virus outbreak, according to UNESCO. And, according to the International Telecommunication Union(ITU), more than 1.5 billion school children around the world are using online education, following the global lockdown.
  • Online learning is not for everyone. Schools located in remote areas of the country with limited availability of electricity and internet is making restricted use of WhatsApp to stay connected with their classrooms.

    3.) Less intimidating

    Many students in classroom environments aren’t comfortable speaking in public. In an online environment, it can be much easier to share thoughts with others

    5.) Focus on ideas

    With an estimated 93 percent of communication being non-verbal, online students don’t have to worry about body language interfering with their message. While body language can be effective sometimes, academics are more about ideas, and online education eliminates physical judgments that can cloud rational discussion.

    5.) Focus on ideas

    With an estimated 93 percent of communication being non-verbal, online students don’t have to worry about body language interfering with their message. While body language can be effective sometimes, academics are more about ideas, and online education eliminates physical judgments that can cloud rational discussion.

    8.) Cost

    Although the cost of an online course can be as much or more than a traditional course, students can save money by avoiding many fees typical of campus-based education, including lab fees, commuting costs, parking, hostels, etc. Imagine living in Dhule but going to college in Mumbai.

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Issues with draft EIA Notification 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: EIA

Mains level: Paper 3- Environment Impact Assessment

The changes made in the recent notification gives rise to several issues. These changes and issues that could arise are discussed in this article.

  • Environmental Impact Assessment (EIA) is a process of evaluating the likely environmental impacts of a proposed project or development, taking into account inter-related socio-economic, cultural and human-health impacts, both beneficial and adverse.
  • UNEP defines Environmental Impact Assessment (EIA) as a tool used to identify the environmental, social and economic impacts of a project prior to decision-making.
  • It aims to predict environmental impacts at an early stage in project planning and design, find ways and means to reduce adverse impacts, shape projects to suit the local environment and present the predictions and options to decision-makers.
  • Environment Impact Assessment in India is statutorily backed by the Environment Protection Act, 1986 which contains various provisions on EIA methodology and process.

History of EIA in India

  • The Indian experience with Environmental Impact Assessment began over 20 years back. It started in 1976-77 when the Planning Commission asked the Department of Science and Technology to examine the river-valley projects from an environmental angle.
  • Till 1994, environmental clearance from the Central Government was an administrative decision and lacked legislative support.
  • On 27 January 1994, the then Union Ministry of Environment and Forests, under the Environmental (Protection) Act 1986, promulgated an EIA notification making Environmental Clearance (EC) mandatory for expansion or modernisation of any activity or for setting up new projects listed in Schedule 1 of the notification.
  • The Ministry of Environment, Forests and Climate Change (MoEFCC) notified new EIA legislation in September 2006.
    • The notification makes it mandatory for various projects such as mining, thermal power plants, river valley, infrastructure (road, highway, ports, harbours and airports) and industries including very small electroplating or foundry units to get environment clearance.
    • However, unlike the EIA Notification of 1994, the new legislation has put the onus of clearing projects on the state government depending on the size/capacity of the project.

The EIA Process

EIA involves the steps mentioned below. However, the EIA process is cyclical with interaction between the various steps.

  • Screening: The project plan is screened for scale of investment, location and type of development and if the project needs statutory clearance.
  • Scoping: The project’s potential impacts, zone of impacts, mitigation possibilities and need for monitoring.
  • Collection of baseline data: Baseline data is the environmental status of study area.
  • Impact prediction: Positive and negative, reversible and irreversible and temporary and permanent impacts need to be predicted which presupposes a good understanding of the project by the assessment agency.
  • Mitigation measures and EIA report: The EIA report should include the actions and steps for preventing, minimizing or by passing the impacts or else the level of compensation for probable environmental damage or loss.
  • Public hearing: On completion of the EIA report, public and environmental groups living close to project site may be informed and consulted.
  • Decision making: Impact Assessment Authority along with the experts consult the project-in-charge along with consultant to take the final decision, keeping in mind EIA and EMP (Environment Management Plan).
  • Monitoring and implementation of environmental management plan: The various phases of implementation of the project are monitored.
  • Assessment of Alternatives, Delineation of Mitigation Measures and Environmental Impact Assessment Report: For every project, possible alternatives should be identified, and environmental attributes compared. Alternatives should cover both project location and process technologies.
    • Once alternatives have been reviewed, a mitigation plan should be drawn up for the selected option and is supplemented with an Environmental Management Plan (EMP) to guide the proponent towards environmental improvements.
  • Risk assessment: Inventory analysis and hazard probability and index also form part of EIA procedures.

Importance of Precautionary Principle

  • The basis in global environmental law for the EIA is the “precautionary principle”.
  • Environmental harm is often irreparable and it is cheaper to avoid damage to the environment than to remedy it.
  • We are legally bound to the precautionary principle under international treaties and obligations, as well as by Supreme Court judgments.

What is the issue?

  • Streamlining the EIA process and bringing it in line with recent judgments are the reasons given by the government for latest notification.
  • The Draft EIA Notification disables it, shrinks its scope and removes what teeth it did have.
  • The most devastating blow to the EIA regime is the creation of an ex-post-facto clearance route. 

1.What is ex-post-facto clearance route?

  • It applies to ongoing or completed project for which an EIA clearance was never sought or granted, and the construction of the project took place regardless.[violating the norms]
  • The project now can be slapped with minor fines for the violations and get cleared.
  • Where such ex-post-facto clearances were being granted previously, the courts cracked down on them as illegal.
  • Therefore, what could not be ratified will now find itself notified.
  • The legality of sidestepping the courts is questionable and will have to be tested.

How it will affect?

  •  It will become a business decision as to whether the
  • There is an argument that this route will be an “exception”.
  • But it is difficult to believe in India. Our law has a long history of expanding the exception into the rule.

Time to furnish response shortened

  • The draft notification also shortens the time for the public to furnish responses on the project.
  • For project-affected people, who are frequently forest dwellers or otherwise do not have access to information and technology.
  • This will make it harder to put forth representations.

2.Monitoring requirements reduced

  • Monitoring requirements have been slackened.
  • The draft EIA notification halves the frequency of reporting requirements from every six months to once a year.
  • It also extends the validity period for approvals in critical sectors such as mining.

3.Scope of EIA reduced

  • Industries that previously required a full assessment have been downgraded.
  • The construction industry will be one such beneficiary, where only the largest projects will be scrutinised fully.
  • While defence and national security installations were always understandably exempt, a vague new category of projects “involving other strategic considerations” will also now be free from public consultation requirements.

4.Recent industrial mishaps

  • Oil India Limited’s oil wells in the Tinsukia district, Assam went up in flames this month.
  • It is situated only a few kilometres away from protected forest.
  • Recent processes for expansion and modification apparently took place without fresh environmental clearance.
  • There was a deadly gas leak at LG Polymers’ Visakhapatnam plant in May.
  • The plant had been operating without a valid environmental clearance for decades.

Consider the question “Examine the changes made in the draft EIA Notification and what are the issues with it? “

Way Forward

On a positive note, the 2020 draft notification has a clause dedicated to definitions to several terms related to EIA. It may be beneficial in the sense that it consolidates the EIA rules and has the potential of alleviating some ambiguity in the present law.

  • The ministry, instead of reducing the time for public consultation, should focus on ensuring access to information as well as awareness about the public hearing and its impact upon the whole EIA process.
  • In order to improve ease of doing business, the government should bring down the average delay of 238 days in granting environmental clearance, that emanates from bureaucratic delays and complex laws.
  • Grow now, sustain later should not be the policy, as the notion is dangerously tilted against the concept of sustainable development.

Conclusion

Environmental regulation must balance damage to the environment with sustainable development and possible benefits but the new notification lays more emphasis on the benefits and so must be reconsidered.

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Foreign Policy Watch: India-China

Will banning Chinese imports hurt India’s exports?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: India-China trade relations

  • Following the recent clashes with Chinese troops in Ladakh, there has been a growing clamour in the country to boycott goods from the neighbouring country.
  • However, the development has caused an alarm among various industry bodies that are concerned about the adverse impact in the event of a blanket ban on exports in several sectors.

Practice question for mains:

Q.“Curbing Chinese imports to India will do more harm than any good”. Analyse.

How dependent is India on Chinese imports?

China accounts for a sizable portion of India’s top imports, especially where intermediate products or components and raw materials are concerned.  Electronics: The neighbouring country also accounts for 45 per cent of India’s total electronics imports.

  • A third of machinery and almost two-fifths of organic chemicals that India purchases from the world come from China.
  • Automotive parts and fertilizers are other items where China’s share in India’s import is more than 25 per cent.
  • Several of these products are used by Indian manufacturers in the production of finished goods, thus thoroughly integrating China in India’s manufacturing supply chain.
  • For instance India sources close to 90 per cent of certain mobile phone parts from China.

India’s export to China

  • Even as an export market, China is a major partner for India. At $15.5 billion, it is the third-largest destination for Indian shipments.
  • At the same time, India only accounts for a little over two per cent of China’s total exports, according to the Federation of Indian Export Organisation (FIEO).

How could a blanket ban on Chinese imports hit India’s exports?

  • Across sectors from pharmaceuticals to telecommunications and automobiles, industry associations have been speaking up against a complete boycott of Chinese imports.
  • A “blanket ban” may not be feasible because of India’s dependence on the country for crucial raw materials.
  • Banning the imports of raw materials from China without which products over here cannot be manufactured will make things difficult.
  • If China takes any retaliatory measures, it would impact India more negatively.

Most crucial: The Pharma sector could be worst hit

  • For instance, of the nearly $3.6 billion worth of ingredients that Indian drug-makers import to manufacture several essential medicines, China catered to around 68 per cent.
  • India is considered one of the largest pharma industries in the world and accounts for a considerable portion of imports of finished formulations by other large economies like the US.
  • While pharma consignments from China have unofficially been stopped at ports in India, and are expected to be cleared after thorough checks,
  • A ban could create shortages of medicines both for India’s domestic and export markets.

Are there any alternatives in this situation?

  • The decision to boycott non-essential products made in China can be left to the individuals.
  • However, trade-related measures like raising duties on cheaper raw materials imported from China would be better than an outright embargo.
  • This would still allow access to crucial ingredients in the short-term while India looks to build self-reliance or maybe switch to alternate trade partners.
  • It would be better to maybe raise duties on cheaper raw materials instead of going in for a blanket ban.

Alternatives to Chinese imports

  • Countries like the US, Vietnam, Japan, Mexico and certain European countries could be tapped as alternate import sources for some critical electronic, vehicular and pharmaceutical components as well.
  • It is likely that the costs of the raw materials from these alternate sources will be higher and may get passed on to consumers if the manufacturers cannot absorb them.
  • India will need to look into the totality of its trade with China and Hong Kong and implement certain short- to long-term plans to reduce its dependence on them, according to FIEO.

Way forward

  • The government’s “Atmanirbhar” focus is expected to help ministries handhold industries where self-reliance needs to be built.
  • Some measures, like the decision to push bulk drug parks in India, have to be executed.
  • While an increase in tariff can be one way to achieve import substitution, the more effective strategy would be to provide an ecosystem that addresses the cost disability of Indian manufacturing leading to such imports.

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Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

Global Education Monitoring (GEM) Report 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Impact of coronovirus outbreak on Education system

The COVID-19 pandemic has exacerbated inequalities in education systems across the world a/c to the latest GEM report.

Practice question for mains:

Q.Discuss the impact of COVID-19 induced lockdown on India’s education sector.

About the report

  • Originally the EFA Global Monitoring Report, it has been renamed as the Global Education Monitoring Report.
  • It is developed by an independent team and published by UNESCO aimed to sustain commitment towards Education for All.
  • The ‘UNESCO Institute for Statistics (UIS), based in Montreal provides data for the report on students, teachers, school performance, adult literacy and education expenditure.

Highlights of the 2020 report

  • The report noted that efforts to maintain learning continuity during the pandemic may have actually worsened exclusion trends.
  • During the height of school closures in April 2020, almost 91% of students around the world were out of school.
  • About 40% of low- and lower-middle-income countries have not supported learners at risk of exclusion during this crisis, such as the poor, linguistic minorities and learners with disabilities.

1. Risks of school closure

  • School closures also interrupted support mechanisms from which many disadvantaged learners benefit.
  • For poor students who depend on school for free meals or even free sanitary napkins, closures has been a major blow.
  • Cancellation of examinations in many countries, including India, may result in scoring dependence on teachers’ judgements of students, which could be affected by stereotypes of certain types of students.

2. Substitutes were imperfect

  • Education systems responded with distance learning solutions, all of which offered less or more imperfect substitutes for classroom instruction said the report.
  • Many poorer countries opted for radio and television lessons, while some upper-middle-income countries adopted for online learning platforms for primary and secondary education.
  • India has used a mix of all three systems for educational continuity.

3. The digital divide has resurfaced yet again

  • Even as governments increasingly rely on technology, the digital divide lays bare the limitations of this approach.
  • Not all students and teachers have access to an adequate internet connection, equipment, skills and working conditions to take advantage of available platforms.

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Wildlife Conservation Efforts

“Money Laundering and the Illegal Wildlife Trade” Report

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FATF

Mains level: Wildlife trade and its prevention

A first global report on the illegal wildlife trade has been recently published by the Financial Action Task Force (FATF).

Try this MCQ:

Q.The report “Money Laundering and the Illegal Wildlife Trade”  recently seen in news is released by:

A. TRAFFIC/ B. CITES/ C. IUCN/ D. FATF

Highlights of the Report

  • FATF has described illegal wildlife trade as a “global threat”, which also has links with other organised crimes like modern slavery, drug trafficking and arms trade.
  • The illegal trade is estimated to generate revenues of up to $23 billion a year.
  • The report flagged a lack of focus on the financial aspects of wildlife crime.

(1)Economy of illicit wildlife trade

  • It said that criminals are frequently misusing the legitimate wildlife trade, as well as other import-export type businesses.
  • The FATF found that jurisdictions often did not have the required knowledge, legislative basis and resources to assess and combat the threat posed by the funds generated through the illegal trade.
  • The study has highlighted the growing role of online marketplaces and mobile and social media-based payments to facilitate the movement of proceeds warranting a coordinated response from government bodies, the private sector and the civil society.

(2)Money laundering is prominent

  • According to the report, criminal syndicates are misusing the formal financial sector to launder the proceeds.
  • Funds are laundered through cash deposits, under the guise of loans or payments, e-banking platforms, licensed money value transfer systems, and third-party wire transfers via banks.
  • Accounts of innocent victims are also used and high-value payments avoided evading detection.

(3)Misuse of front companies

  • Another common trend is the misuse of front companies with links to the legal wildlife trade, said the report.
  • Front companies, often linked to import-export industries, and shell firms are used for the movement of goods and trans-border money transfers.

Recommendations of the report

  • The report says the financial probe is the key to dismantling the syndicates involved, which can in turn significantly impact the associated criminal activities.
  • It recommended that jurisdictions should consider implementing good practices, as observed during the study.
  • They include providing all relevant agencies with the necessary mandate and tools; and cooperating with other jurisdictions, international bodies and the private sector.
  • The FATF said that legislative changes were necessary to increase the applicability of anti-money laundering laws to the illegal wildlife trade-linked offences.

Back2Basics

Financial Action Task Force (FATF)

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Global Geological And Climatic Events

What is the Anthropause Period?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Anthropause, Anthropocene

Mains level: Human impact on gelological time scale

Researchers in the UK are set to study the “Anthropause”, a term they have coined to refer to the coronavirus-induced lockdown period and its impact on other species.

Practice question for mains:

Q. What is the significance of declaring Anthropocene epoch? Discuss how it is different from any geological events. Discuss the Anthropause Period.

Anthropause Period

  • Researchers have suggested the lockdown period, which is also being referred to as the “Great Pause”, be referred to with a more precise term.
  • It is referred specifically to a considerable global slowing of modern human activities, notably travel.
  • The unprecedented curbs imposed on millions of people around the world, mainly due to restrictions in travel, led to reports of unusual animal behaviour.
  • For instance, there were pumas sighted in Chile’s Santiago, jackals in the parks of Tel Aviv in Israel, dolphins in the waters of Italy and even a monkey fight on the streets of Thailand.
  • The researchers believe studying this period will provide valuable insights into the relationship between human-wildlife interactions in the 21st century.

What do the researchers hope to find?

  • As a result of the lockdown, nature appears to have changed, especially in urban environments, since not only are there now more animals, but also some “unexpected visitors.”
  • In their outline, researchers mention how the scientific community can use these “extraordinary circumstance” provided by global lockdowns to understand how human activity affects wildlife.
  • On the other hand, there are some animals for which the lockdown may have made things more challenging.
  • For instance, for various urban-dwelling animals, such as rats, gulls and monkeys who depend on food provided or discarded by humans, the lockdown would have made life more difficult.

Why is studying the lockdown important?

  • Expanding human populations continue to transform their environments at unprecedented rates.
  • Further, because the reduction in human activity during the lockdown on both land and sea has been “unparalleled” in recent history, the effects have been “drastic, sudden and widespread”.
  • Essentially, this gives them a chance to study the extent to which modern human mobility affects wildlife.
  • The study can be linked can help provide insights that may be useful in preserving global biodiversity, maintaining the integrity of ecosystems and predicting global zoonoses and environmental changes.

Back2Basics

Anthropocene as Earth’s new epoch

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North-East India – Security and Developmental Issues

Article 371A and Nagaland

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 370 and 371

Mains level: Naga Peace Accord and its outcomes

In a scathing letter to CM, Nagaland Governor has said the “scenario in the State is grim” and that “law and order has collapsed”.

Practice question for mains:

Q.Discuss the success of Naga Peace Accord in light of the ongoing law and order crisis in the state.

Nagaland (Article 371A, 13th Amendment Act, 1962)

  • Parliament cannot legislate in matters of Naga religion or social practices, the Naga customary law and procedure, administration of civil and criminal justice involving decisions according to Naga customary law.
  • Parliament also cannot intervene in ownership and transfer of land and its resources, without the concurrence of the Legislative Assembly of the state.
  • This provision was inserted in the Constitution after a 16-point agreement between the Centre and the Naga People’s Convention in 1960, which led to the creation of Nagaland in 1963.
  • Also, there is a provision for a 35-member Regional Council for Tuensang district, which elects the Tuensang members in the Assembly.
  • A member from the Tuensang district is Minister for Tuensang Affairs. The Governor has the final say on all Tuensang-related matters.

What is the issue?

  • Challenging the legitimacy of the government without any resistance from the State law and order machinery has created a crisis of confidence in the system.
  • The constitutional establishment is being challenged on a day-to-day basis by armed gangs who question the integrity and sovereignty of the nation.
  • The instruments of law and order have remained totally unresponsive.

Armed militancy is back again

  • Their armed miscreants appoint their own dealers for every commodity from salt to construction material coming into the State and levy illegal taxes on every item.
  • There is over 200% cost escalation in transportation the moment a goods laden truck enters Nagaland due to gunpoint extortions by the armed miscreants.

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