May 2022
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As Indian economy grows, Centre and states must work together

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Tailored approach to cooperation and competition

Context

The ongoing discords between the Centre and states over issues ranging from the allocation of financial resources to fixing of GST rates has once again brought to the fore issues pertaining to our federal structure, the resolution of which is essential for the country’s growth.

Combination of cooperative and competitive spirit

  • Positive competition: It is undeniable that cooperation is key to the smooth functioning of federal design.
  • However, if it is coupled with positive competition among the states, then the overall result would be large-scale economic development across the country.
  • The competitive aspect of federalism can positively be harnessed by encouraging states to adopt each other’s best practices.
  • Exclusivity and mutualism: Indian federalism today enables the Centre and states to function with both exclusivity and mutualism.
  • Vertical and horizontal level: Cooperation between the Centre and states is required at both vertical (between Centre and states) and horizontal (among states) levels and on various fronts.
  • What does it mean? This includes fine-tuning of developmental measures for desired outcomes, development-related policy decisions, welfare measures, administrative reforms, strategic decisions, etc.

Steps in the direction of cooperation

  • Recent efforts in this direction, such as according greater leeway to states in the functioning of the NITI Aayog, frequent meetings of the prime minister with chief ministers as well as with chief secretaries and district magistrates, periodic meetings of the President of India with governors, and the functioning of “PRAGATI” to review the progress of developmental efforts have generated the requisite synergy between the Centre and states.
  • Positive efforts of states towards attracting investment can create a conducive environment for economic activities in urban and backward regions alike.
  • Healthy competition coupled with a transparent ranking system would ensure the full materialisation of the vast but least utilised potential of the federal framework.
  • Sector specific indices: In this direction, NITI Aayog’s initiatives such as launching sector-specific indices like the School Education Quality Index, Sustainable Development Goals Index, State Health Index, India Innovation Index, Composite Water Management Index, Export Competitiveness Index, etc. could prove to be a great contribution.
  • Central efforts toward synchronisation of cooperation and competition can be observed in the implementation of the 14th and 15th Finance Commission reports, which have greatly contributed to resource devolution.
  • Recent reform measures in the form of the New Labour Code and other amendments/enactments by the legislature also exhibit this trend.

Conclusion

The rising stature of the Indian economy on the world stage can only be strengthened by a tailored approach to cooperation and competition. The mandate to marry the two would inevitably be the collective responsibility of the Centre and the states. Any ideological differences between them will have to be inevitably put on the backburner for the great Indian federal structure to succeed and prosper.

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Panchayati Raj Institutions: Issues and Challenges

Structural interventions by state governments that can create higher-wage jobs

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Structural interventions by State for creating high wage jobs

Context

The recent decision to deduct off-budget borrowings from state borrowing limits reminds chief ministers to be good policy ancestors.

Financing welfare state

  • In A Brief History of Equality, economist Thomas Piketty suggests that “the world of the early 2020s, no matter how unjust it may seem, is more egalitarian than that of 1950 or 1900, which were… more egalitarian than those of 1850 or 1780”.
  • But how the welfare state is financed matters.
  • Changes in state borrowing limits: Adjusting state borrowing limits for their off-budget borrowings leads to transparency because they are routinely breached through vehicles for schemes whose bill comes due far in the future.
  • The confiscation of future spending — interest payments crowd out expenditure and revenue expenditure crowd out capex — matters because our prosperity problem is productivity, wages, not jobs.

5 Structural interventions that can create high wage jobs

1] Reduce regulatory hurdles

  • States control 80 per cent of India’s employers’ compliance ecosystem of 67,000+ compliances, 6,500+ filings and 26,000+ criminal provisions.
  • State governments that rationalise, decriminalise, and digitise their compliance ecosystem will reap lower corruption and higher formality.

2] Fix government schools

  • The most powerful tool for social mobility and employability is free and quality school education.
  • State governments that undertake a significant overhaul of school performance management (the fear of falling and hope of rising for teachers) and governance (the allocation of decision rights around resources and hiring) will create an unfair advantage in human capital.

3] Converge education and employability

  • States should set up skill universities that create qualification modularity (between certificates, diplomas, advanced diplomas, and degrees), delivery flexibility (equate online, apprenticeships, on-site and on-campus classrooms), and pray to the one god of employers.
  • Degree apprentices innovate at the intersection of employment, employability and education.
  • State governments that remove barriers in their path will see their population of employed learners exceed full-time learners.

4] Devolution of money and power

  • Cities drive productive job creation — New York City’s GDP is higher than Russia’s.
  •  It took 70 years after 1947 for the budget of 28 states to cross the central government’s budget.
  • The combined budget of state governments now exceeds Rs 45 lakh crore, but 2.5 lakh municipalities and panchayats have a budget of only Rs 3.7 lakh crore.
  • Governments that devolve money and power from state capitals to their towns will avoid the curse of megacities and create the competition that drove China’s growth (they have 375 cities with more than a million people versus our 52).

5] Civil service reforms

  • State governments must sell their 1,500+ loss-making public sector units, cut civil service compensation to less than 40 per cent of budget spending, and replace expenditure with capex.
  • Moving from outlays to outcomes needs a new human capital regime for civil servants via seven interventions; structure, staffing, training, performance management, compensation, culture, and HR capabilities.

Shifting resources to protective and productive  version of states

  • Nobel Laureate James Buchanan said any state had three versions — the protective state (police, rule of law, defence, courts), the productive state (common goods like roads, power, health, education, etc.), and the redistributive state.
  • Too many state governments accept the status quo in the first two and “innovate” in the third version.
  • It’s time to shift resources to the first two.

Conclusion

Chief Ministers ought to create high wage jobs, and not borrow money future generations will have to repay.

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Cyber Security – CERTs, Policy, etc

SC tests phones for Pegasus Spyware

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pegasus

Mains level: Whatsapp snooping

The Supreme Court has said its technical committee had so far received and tested 29 mobile devices suspected to be infected by Pegasus malware.

Why in news?

  • It was alleged that the government used the Israel-based spyware to snoop on journalists, parliamentarians, prominent citizens and even court staff.

What is Pegasus?

  • Pegasus is a spyware developed by NSO Group, an Israeli surveillance firm that helps spies hack into phones.
  • In 2019, when WhatsApp sued the firm in a U.S. court, the matter came to light.
  • In July 2021, Amnesty International, along with 13 media outlets across the globe released a report on how the spyware was used to snoop hundreds of individuals, including Indians.
  • While the NSO claims its spyware is sold only to governments, none of the nations have come forward to accept the claims.

Threats created by Pegasus

  • What makes Pegasus really dangerous is that it spares no aspect of a person’s identity.
  • It makes older techniques of spying seem relatively harmless.
  • It can intercept every call and SMS, read every email and monitor each messaging app.
  • Pegasus can also control the phone’s camera and microphone and has access to the device’s location data.
  • The app advertises that it can carry out “file retrieval”, which means it could access any document that a target might have stored on their phone.

Dysfunctions created

  • Privacy breach: The very existence of a surveillance system, whether under a provision of law or without it, impacts the right to privacy under Article 21 and the exercise of free speech under Article 19.
  • Curbing Dissent: It reflects a disturbing trend with regard to the use of hacking software against dissidents and adversaries. In 2019 also, Pegasus software was used to hack into HR & Dalit activists.
  • Individual safety: In the absence of privacy, the safety of journalists, especially those whose work criticizes the government, and the personal safety of their sources is jeopardised.
  • Self-Censorship: Consistent fear over espionage may grapple individuals. This may impact their ability to express, receive and discuss such ideas.
  • State-sponsored mass surveillance: The spyware coupled with AI can manipulate digital content in users’ smartphones. This in turn can polarize their opinion by the distant controllers.
  • National security: The potential misuse or proliferation has the same, if not more, ramifications as advanced nuclear technology falling into the wrong hands.

Snooping in India:  A Legality check

For Pegasus-like spyware to be used lawfully, the government would have to invoke both the IT Act and the Telegraph Act. Communication surveillance in India takes place primarily under two laws:

  1. Telegraph Act, 1885: It deals with interception of calls.
  2. Information Technology Act, 2000: It was enacted to deal with surveillance of all electronic communication, following the Supreme Court’s intervention in 1996.

Cyber security safeguards in India

  • National Cyber Security Policy: The policy was developed in 2013 to build secure and resilient cyberspace for India’s citizens and businesses.
  • Indian Computer Emergency Response Team (CERT-In): The CERT-In is responsible for incident responses including analysis, forecasts, and alerts on cybersecurity issues and breaches.
  • Indian Cyber Crime Coordination Centre (I4C): The Central Government has rolled out a scheme for the establishment of the I4C to handle issues related to cybercrime in the country in a comprehensive and coordinated manner.
  • Budapest Convention: There also exists Budapest Convention on Cybercrime. However, India is not a signatory to this convention.

Issues over government involvement

  • It is worth asking why the government would need to hack phones and install spyware when existing laws already offer impunity for surveillance.
  • In the absence of parliamentary or judicial oversight, electronic surveillance gives the executive the power to influence both the subject of surveillance and all classes of individuals, resulting in a chilling effect on free speech.

Way forward

  • The security of a device becomes one of the fundamental bedrock of maintaining user trust as society becomes more and more digitized.
  • Constituting an independent high-level inquiry with credible members and experts that can restore confidence and conduct its proceedings transparently.
  • The need for judicial oversight over surveillance systems in general, and judicial investigation into the Pegasus hacking, in particular, is very essential.

Conclusion

  • We must recognize that national security starts with securing the smartphones of every single Indian by embracing technologies such as encryption rather than deploying spyware.
  • This is a core part of our fundamental right to privacy.
  • This intrusion by spyware is not merely an infringement of the rights of the citizens of the country but also a worrying development for India’s national security apparatus.

 

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Indian Army Updates

Project WARDEC: India’s upcoming AI-powered Wargame Centre

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Project Wardec

Mains level: Not Much

The Army Training Command signed a memorandum of understanding (MoU) with Gandhinagar-based Rashtriya Raksha University (RRU) to develop a ‘Wargame Research and Development Centre (WARDEC)’ in New Delhi.

What is Project WARDEC?

  • The project ‘WARDEC’ will be a first-of-its-kind simulation-based training centre in India that will use artificial intelligence (AI) to design virtual reality war-games.
  • The Wargame Research and Development Centre will be used by the Army to train its soldiers and test their strategies through “metaverse-enabled gameplay”.
  • The wargame models will be designed to prepare for wars as well as counter-terror and counter-insurgency operations.

Where will the centre come up and when?

  • The centre will come up in a military zone in New Delhi, confirmed RRU officials privy to the development.
  • The RRU will join hands with Tech Mahindra to develop the centre in the coming three to four months.
  • The RRU, an institute under the Ministry of Home Affairs (MHA), specialises in national security and policing.
  • Located in Gandhinagar’s Lavad village, it is an “institute of national importance” – a status granted to it by an Act of Parliament.

How will these simulation exercises play out?

  • Soldiers will test their skills in the metaverse where their surroundings will be simulated using a combination of virtual reality (VR) and augmented reality (AR).
  • In metaverse, the players will get a realistic experience of the actual situation.
  • If a weapon weighing 5 kg drops or the air pressure falls, they will feel it like anyone would in a live situation, real-time.
  • The game would play out player versus player, player versus computer or even computer versus computer.

How will the centre help the Army?

  • The Army intends to use the war-game centre to train its officers in military strategies.
  • Indian Army will provide data to set the backdrop of the gameplay, so that participants get a realistic experience.
  • In Army, it is often said that the enemy can ambush you from 361 directions, where 360 sides are around the soldier, and one is above in case there is an airdrop.
  • So, wargame simulation helps the Army think of all possible scenarios.

What promise does AI-based wargame simulation hold?

  • Apart from the armed forces, the BSF, CRPF, CISF, ITBP and SSB can also use the metaverse-enabled simulation exercises for better training.
  • The use of AI can provide a totally immersive training experience as it can simulate a battlefield close to reality and map several eventualities in the probable event of a war.

How many countries use such wargaming drills?

  • Since the 9/11 attacks, use of information technology-enabled wargaming is preferred by several countries like the US, Israel, the UK to prepare for possibilities in case of terror attacks or war.
  • In March 2014, several world leaders, including former German chancellor Angela Merkel, former US president Barack Obama and Chinese president Xi Jinping had played a war simulation game.
  • It was during the Hague Summit about how to react in case of a nuclear attack.
  • In that case, the target of the nuclear attack was a fictional country named Brinia.

 

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