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  • Insolvency and Bankruptcy Code

    Insolvency code should be suspended for six months to help companies recover

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    This article argues the suspension of IBC for six months. The issues arising out of suspension like damage to the creditors are also dealt with here. Reading of this article will help us understand the finer details of IBC that are relevant from the UPSC point of view. We have also covered one article from livemint dealing with the same issue, but that article covered the issue in a broader sense.

    Who are operational and financial creditors?

    • After the lockdown is over, several companies are likely to default on their dues to both operational and financial creditors.
    • Who is a financial creditor? The financial creditors include banks and others who have given financial assistance to a company in the form of loans and debentures.
    • According to a 2018 amendment to the Insolvency and Bankruptcy Code (IBC) 2017, flat purchasers are also deemed as financial creditors.
    • An operational creditor is just about anyone who has to receive money from a company.
    • The IBC provides a fast-track mechanism to deal with companies which are unable to repay their creditors and have become financially unviable.
    • Section 22 of the Code mandates the appointment of a Resolution Professional (RP) who is expected to miraculously turn around the company in 330 days.
    • If this attempt fails, the company goes into liquidation.

    The two types of creditors were in the news, so pay attention to these terms.

    Increase in threshold limit to file an insolvency petition

    • The IBC’s provisions have been extensively used by various creditors whose dues were not paid.
    • What was the threshold limit? Initially, the threshold limit was just Rs 1 lakh and the IBC became an effective recovery mechanism for all operational creditors.
    • What is the limit now? Just before the lockdown, the finance minister raised the threshold for invoking the insolvency provisions to Rs 1 crore.
    • This limit was raised to prevent proceedings being initiated against small and medium enterprises.

    Possibility of the domino effect after the lockdown is over

    • After the lockdown, several enterprises, large, medium and small, might not be able to pay their dues, at least in the short-term.
    • The easiest way for a creditor to recover money is to initiate insolvency proceedings against the debtor company and threaten it with liquidation.
    • The shutdown of business after the lockdown could have a domino effect.
    • How would the domino effect come into play? If an auto-manufacturer has shut down its operations, the ancillary units will not get their dues.
    • This would then lead to non-payment to downstream vendors and service providers as well.
    • It might take at least three to four months for the situation to stabilise.

    Steps that should be taken to avoid the domino effect

    • Moratorium on the IBC: The most important, and immediate, step that needs to be taken is to have a six-month moratorium on the IBC.
    • It may be necessary to promulgate an ordinance suspending the prospective operation of Sections 7 and 9 of the IBC so that no fresh petition is filed against a company.
    • Impact on creditors: While this could hurt some of the creditors, the damage that could be done to the corporate sector by invoking the IBC is likely to be far greater.
    • A distressed creditor is not without a remedy as he can always approach the civil courts for relief, which will not be so severe on a defaulting company.
    • If an insolvency petition is filed and the RP appointed, it is difficult to stop the insolvency process.
    • The IBC requires a financially-stressed company to be taken over by a financially-sound
    • For example, Essar Steel was taken over by ArcelorMittal and Bhushan Steel was taken over by Tata Steel.
    • In the current scenario, it will be difficult, if not impossible, for an RP to find a suitable buyer and the only option would be to liquidate the company.
    • Using the insolvency process to recover dues is contrary to the IBC’s objectives.

    The objective of the IBC is not just insolvency but the reorganisation of companies, maximisation of value of assets and the need to balance the interests of all stakeholders. Pay attention to this point.

    How the suspension of the IBC will be beneficial?

    • Suspending the IBC for a short period would enable several companies to return to normalcy.
    • It will help them function without the constant threat of an insolvency application and its Board of Directors and management being taken over by the RP.
    • Moreover, the National Company Law Tribunal benches will simply be unable to take any additional workload.

    Conclusion

    Suspending the IBC for six months would be a much-needed step to prevent further damage to the economy. It would be in the larger public interest. Indeed, at this critical stage, permitting the legal remedy of insolvency could be the last nail in the coffin of many companies.

    Back2Basics: What is the Insolvency and Bankruptcy Code?

    • IBC provides for a time-bound process to resolve insolvency.
    • When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency.
    • Under IBC debtor and creditor both can start ‘recovery’ proceedings against each other.
    • Insolvency and Bankruptcy Code 2016 was implemented through an act of Parliament.
    • It got Presidential assent in May 2016.
    • The law was necessitated due to huge pile-up of non-performing loans of banks and delay in debt resolution.
    • Insolvency resolution in India took 4.3 years on an average against other countries such as United Kingdom (1 year) and United States of America (1.5 years), which is sought to be reduced besides facilitating the resolution of big-ticket loan accounts.

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  • Zoonotic Diseases: Medical Sciences Involved & Preventive Measures

    What is Post-intensive Care Syndrome (PICS)?

    | Governance | Mains Paper 2: Health & Education

    • Various news reports in recent weeks have pointed out that for some COVID-19 patients who needed intensive care, the journey to recovery is a long one.
    • After leaving the ICU, they may suffer from what is known as post-intensive care syndrome (PICS), which can happen to any person who has been in the ICU.

    Infectious disease outbreaks, like the current Coronavirus (COVID-19), can be scary and can affect our mental health. This pandemic is going to leave a bigger trauma for those who had lost their dear ones as well those who recovered.

    What is PICS?

    • PICS comprise impairment in cognition, psychological health and physical function of a person who has been in the ICU.
    • Further, such patients may experience neuromuscular weakness, which can manifest itself in the form of poor mobility and recurrent falls.
    • The psychological disability may arise in a person in the form of depression, anxiety and post-traumatic stress disorder (PTSD).

    Its symptoms

    • The most common PICS symptoms are generalized weakness, fatigue, decreased mobility, anxious or depressed mood, sexual dysfunction, sleep disturbances and cognitive issues.
    • These symptoms may last for a few months or many years after recovery, the authors of the aforementioned article note.
    • Patients who develop this may take at least a year to fully recover, until which time they may have difficulty in carrying out everyday tasks such as grooming, dressing, feeding, bathing and walking.

    What causes PICS?

    • A combination of factors can affect aspects of an ICU survivor’s life.
    • PICS may be induced if a person was on prolonged mechanical ventilation, experienced sepsis, multiple organ failure and a prolonged duration of “bed-restore deep sedation”.

    Treatment

    • It is recommended that to avoid PICS, patients’ use of deep sedation is limited and early mobility is encouraged, along with giving them “aggressive” physical and occupational therapy.
    • Further, patients should be given the lowest dose of pain medications when possible and should be put on lung or cardiovascular rehabilitation treatments along with treatments for depression, anxiety and PTSD.

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  • Innovations in Biotechnology and Medical Sciences

    Anastomosis surgery for re-implantation

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    The chopped off-hand of a Punjab Police officer has been successfully re-implanted after hours of surgery.

    Anastomosis is a general term in surgical sciences used to join amputated limbs or organs. The term has made headline due to its recent application. A piece of general information regarding novelties of medical sciences should be known to the aspirants.

    Anastomosis Surgery

    • A surgical Anastomosis is a surgical technique used to make a new connection between two body structures that carry fluid, such as blood vessels or bowel.
    • It involves conjoining various parts of the arm and the hand — bones, muscles, tendons, arteries, veins as well as nerves.
    • Both radial and ulnar arteries, accompanying nerves and the dorsal vein were anastomosed successfully, allowing for the hand to receive adequate circulation.
    • The bones are attached using K wires (used for orthopaedic surgery) which can be removed once the bones conjoin organically.

    In which cases is re-implantation possible?

    • When a surgeon makes that decision, the factors that he or she considers include how much time has elapsed since the injury.
    • The condition of the severed organ and the nature of the injury are also taken into account.

    Can a reattached hand get its function restored?

    • That is the goal of doing such surgery. The extent of restored function, however, can vary from case to case.
    • While a successful surgery can result in the good return of motor function, studies have shown that sensory recovery can often be poor.
    • Whether the blood circulation is optimum after surgery can only be observed within the next few days.
    • The patient also needs to attend regular physiotherapy sessions for total restoration of motor movement and sensation in his hand.

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  • Wildlife Conservation Efforts

    Species in news: Trimeresurus Salazar

    Species | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    The new species, Trimeresurus Salazar is a snake been discovered in Arunachal Pradesh.

    Another specie spotted with one more peculiarity, the name Salazar 🙂 Such species are most likely to be asked in prelims to match the columns with their habitat state.

    Trimeresurus Salazar

    • Salazar’s pit viper belongs to the genus Trimeresurus Lacépède comprising “charismatic venomous serpents with morphologically as well as ecologically diverse species”.
    • Pit vipers are venomous snakes distinguished by their heat-sensing pit organs between the eye and the nostril.
    • The name was inspired by Salazar Slytherin, the co-founder of J.K. Rowlings’ fictional Hogwarts School of Witchcraft and Wizardry.

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    [pib] Plasmonic Semiconductor Nanomaterials

    PIB | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Researchers are exploring ways to develop plasmonic semiconductor nanomaterials for removal of toxic organic compounds from water by harvesting solar light.

    Nanotechnology is a pathbreaking technology which can create many new materials and devices with a wide range of applications, such as in nanomedicine, nanoelectronics etc.  PSN is one such application. Topics like PSN are most likely to be asked in the competitive examinations.

    Plasmonic Semiconductor Nanomaterials

    • PSN are metal-like materials with free electrons on the surface that oscillate collectively when hit by light.
    • It uses solar light to increase the photocatalytic efficiency to degrade pollutants as well as generate renewable Hydrogen.
    • These materials can easily adsorb toxic ions like arsenic and fluoride, which are often found in water in North East India and convert it to its not toxic forms when they are exposed to sunlight.
    • PSN can be used for hydrogen energy generation, a process which has shown high photon to hydrogen conversion efficiency under visible and near infra-red light.

    What are Semiconductors?

    • Semiconductors are materials which have a conductivity between conductors (generally metals) and nonconductors or insulators (such as most ceramics).
    • Its resistance falls as its temperature rises; metals are the opposite.
    • They can be pure elements, such as silicon or germanium, or compounds such as gallium arsenide or cadmium selenide.

    Back2Basics: Nanomaterials

    • Nanomaterials are materials of which a single unit small-sized (in at least one dimension) between 1 and 100 nm (the usual definition of nanoscale).
    • Materials with structure at the nanoscale often have unique optical, electronic, or mechanical properties.
    • They are created from the gas phase by producing a vapour of the product material using chemical or physical means.
    • Examples of nanomaterials include carbon nanotube, nanoparticles, metal rubber, quantum dots, nanopores and many more.

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  • Insolvency and Bankruptcy Code

    Can the insolvency code handle the aftermath of the corona crisis?

    | Economics | Mains Paper 3: Indian Economy

    The article is about the aftermath of Covid-19 for the Indian business. Though the government has announced the slew of relief packages, one expects a significant spike in the number of bankruptcies. Will India’s Insolvency and Bankruptcy Code be able to deal with this new normal? Some pressing issues that could arise and solutions are discussed here.

    Rise in the pending cases with NCLT

    • Since the commencement of the IBC and setting up of the National Company Law Tribunal (NCLT), 12,000 cases have been filed.
    • Around 4,500 cases have been settled before resolution, with a settlement amount of almost ₹2 trillion.
    • 1,500 cases have been admitted and 6,000 cases are waiting in the queue.
    • The covid-19 epidemic will only increase this traffic jam.
    • Increasing the capacity of NCLT: The pile-up of cases needs to be addressed by increasing capacity of the NCLT, and by ensuring that as many cases as possible are settled without going to the IBC.

    Every issue mentioned here is important from Mains point of view. IBC has been a significant step by the government to streamline the process of insolvency and bankruptcy.

    Need for a relook at section 29A(c) of IBC

    • What is section 29A(c) of IBC? This provision makes ineligible the defaulting person (promoter) from bidding for the asset (buying back) if it has been NPA for a year or more.
    • What was the purpose of section 29A(c): The intent of section 29A is to prevent persons who, by their misconduct or fraudulent motives contributed to the default of the corporate debtor, from “buying back” the corporate debtor from the creditors, potentially at steep discounts.
    • What’s the issue? While this is clearly a justifiable objective, the short window of one year has prevented even genuine promoters who faced major setbacks on account of unforeseen circumstances from being given a second chance.
    • Even though such promoters are often in good the best position to revive their businesses.
    • In view of the current force majeure, we recommend that the grace period of one year under section 29A(c) be extended to two years.
    • And further extensions should be made possible on the approval of a supermajority (i.e. 75%) of the Committee of Creditors.
    • Further, the newly introduced Section 12A allows the bank, which was the insolvency applicant, to exit the insolvency process.
    • Which brings the promoter back in control—provided 90% of the Committee of Creditors agrees and the public bidding process has not commenced.
    • The requirement for exit should be reduced to 75% of the committee.

    Extension of timelines

    • Recently, the Supreme Court did well by passing a suo-moto order on the extension of limitation generally.
    • Based on these SC orders, the National Company Law Appellate Tribunal has ordered that such extension also apply to the outer limit of 330 days for the resolution of corporate insolvency cases.
    • This could be further extended once the gravity of the situation becomes clear over the next few months.
    • The moratorium period on debt financing recently announced by RBI should also be extended to cover money market instruments.

    Need for providing more financing options to corporate debtors

    • While the IBC does provide for interim finance with a preferential position for a corporate debtor, there are known limitations and residual risks on the provision of such finance.
    • The government would do well to look at expanding the market by making changes.
    • The changes could include permitting interim funding by asset reconstruction companies even without being creditors.
    • And making provisions for a minimum return even in case of liquidation, and extending the enhanced priority standing given to interim financiers in the IBC phase to the pre-IBC phase.
    • Post the lockdown, incremental working capital support upto, say, 25% of existing working capital exposure could be allowed in deserving cases even if the account is in default or NPA.
    • This can be deemed to be priority lending to also protect bankers’ interests.
    • The provision could also be made for the extension of concessional finance within limits based on demonstrated export potential.
    • For example- order, short lead-time business, margin adjustments) in order to contribute to the recovery of exporting industries.

    Equitable treatment of operational creditor

    • In the Swiss Ribbons judgment, the Supreme Court urged equitable, though not equal, treatment of operational creditors.
    • The need to protect the interests of operational creditors in bankruptcy proceedings is all the more critical in difficult market conditions where credit would be hard to obtain.
    • Some broad guidelines appear to be desirable.
    • For instance, one could stipulate that in the absence of quality issues, two operational creditors belonging to the same sub-class in terms of the type of product or service sold, should be treated equally.
    • This should be irrespective of group relationships or continuity in the business of the resolved entity.

    Facilitating resolution outside the corporate insolvency resolution process

    • On the issue of closing a case before the onset of insolvency proceedings, there was a case for doing this even before the corona outbreak, and even without the paucity of processing capacity.
    • The labelling of a company as insolvent or bankrupt has a chilling effect on its already dim prospects.
    • Vendors, customers and employees start having second thoughts about associating with this company.
    • Certain rules get triggered—for instance, the rule barring an infrastructure company from accepting new orders.
    • The current outbreak amplifies the case for facilitating resolution outside the corporate insolvency resolution process.
    • At the same time, there is a need to streamline the process to ensure enhanced proceeds.

    Conclusion

    All institutions of the economy will need to fire together in order to maximize the prospects of recovery. A suitably modified bankruptcy framework has a crucial role to play.

    Back2Basics: Difference between financial and operational creditors

    • Financial and operational creditors are different in the sense that their liabilities arise from different origins.
    • Where a financial creditor is liable because of a contract such as a loan or debt and operational creditor is liable because of operational transactions.
    • The difference between a financial creditor and an operational creditor is that a financial creditor is an individual whose relationship with the entity is solely based on financial contracts, such as a loan or debt security.
    • Whereas, an operational creditor is an individual whose liabilities from the entity comes in the form of future payments in exchange for goods or services already delivered.

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  • Coronavirus – Health and Governance Issues

    China manipulates the WHO, India needs to be cautious

    op-ed snap | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests,Important International Institutions

    The article elaborates on the role played by China in manipulating WHO to its advantage and to the detriment of the rest of the world. India must take cognisance of the growing Chinese influence at various global platforms and act accordingly.

    China’s role in electing Director-General of WHO

    • Tedros was Ethiopia’s Minister of Health (2005—2012) and Minister of Foreign Affairs (2012 to 2016).
    • In 2017, China catapulted him to lead the WHO as its Director General (DG).
    • India, the world’s largest democracy, played second fiddle.
    • We will never know who gamed India inside and abroad, but tough questions must be asked.

    Pandemic as a wake-up call for India

    • Public health is a rights-driven developmental track for any country, especially for India.
    • The ministries of foreign, trade, information and broadcasting, home, finance, women and child development, law, infrastructure and industry, among others, should be part of the country’s health equation and decision-making on a daily basis.
    • Should the WHO be sitting in on high-level health ministry discussions given what we now know about its allegiance to all things Chinese?
    • China, an economic and military behemoth, now seeks the same power in public health.
    • India, with its double burden of disease and an uncritical alignment with the WHO, is fertile ground for data and dollars.

    Dependence on China for API

    • For now, India, like most countries, is at China’s mercy because of years of short-sightedness and corruption in the health sector.
    • While it is hailed as the pharmacy of the world and has sent drugs as humanitarian assistance, India relies heavily on raw materials from China.
    • Quick thinking and swift action can reverse this.

    The above points highlight the implications of Chinese dominance for India. Questions related to China is a recurrent theme in the UPSC papers. Next thing to note here is India’s dependence on China for APIs.

    The US’s stand on WHO funding

    • Some are blaming US President Donald Trump for contemplating cutting off funding for the WHO and not Tedros, for taking orders from China about the pandemic.
    • The war is not between an American President and Tedros.
    • It is between Tedros, a global public health head, and his subservience to China.
    • That ship of trust, the cornerstone of public health work that the WHO should have been leading, has long set sail.
    • Protecting Tedros is important as the WHO needs money to help poor countries with weak health systems.

    Last year, UPSC asked about UNESCO when the US and Israel withdrew from it. This year, WHO has been in focus for allegedly towing China’s line.

    Issue of funding and spending by the WHO

    • War chests are being mobilised to help the WHO help China disburse aid and assistance to dying people and gasping economies.
    • The recent announcement by the World Bank to fast track $1.9 billion for health systems to respond to Covid-19 also includes Ethiopia.
    • For the first time in its history, the WHO has opened its doors to private funding via a Solidarity fund and China is expected to keep an eye on this.
    • To keep track of how the money is spent is a problem.

    Conclusion

    India must decide if it wants to blindly follow the blind or lead by bringing the WHO back to its original promise. At stake is the country’s economic security of which public health is a key component. India can either be a part of history or pick up the pen even in these times of distress and rewrite it.

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  • Coronavirus – Health and Governance Issues

    Partnership with the private sector in a fight against Covid-19

    op-ed snap | Governance | Mains Paper 2: Health & Education

    The article delineates five areas in which partnership with the private sector is essential to deal effectively with the epidemic and ensure a whole-of-society response. Ensuring the participation of the private sector has been the recurring theme of many op-eds we have come across after the outbreak.

    Significance of private healthcare in India

    • According to the WHO, a critical lesson from the 2014-16 West African Ebola epidemic was that both the public and private sector need to work in tandem in responding to large-scale epidemics.
    • In the COVID-19 response in India, the private sector has to play an even more important role, as it is the dominant provider of health services in the country.
    • The private sector includes the for-profit and not-for-profit segments.
    • The dominance of the private sector in India: The NSSO 71st round data on social consumption of health show that private hospitals, clinics and nursing homes provide over 70 per cent of healthcare.
    • Data on the nearly 1 crore treatments received under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) corroborate this finding.
    • AB PM-JAY data shows that over half of all treatments are being availed of from private providers, accounting for over 60 per cent of total disbursements.

    UPSC asked about community-level healthcare intervention in 2018. So, pay attention to the significant role played by the private health sector in India.

    Following five are the areas in which cooperation with the private sector will be essential-

    1 Testing

    • Creating a large and accessible testing infrastructure is the first weapon in the armoury.
    • Countries like South Korea, Singapore, Germany and Japan have been successful at controlling the spread of COVDID-19 and reducing mortality through early detection and quick containment.
    • This has been possible only through widespread testing.
    • India has opened testing up to private labs.
    • Testing has been included under the AB PM-JAY as well.
    • We need to substantially expand testing capacity.
    • This cannot happen without the active participation of the private sector.

    2 Converting private hospitals into Covid-19-only hospitals

    • As the government deepens its containment efforts, the country will need to rapidly surge the numbers of quarantine units, isolation wards and ICU beds in COVID-19-only
    • It will also need to ensure increased and continued supply of essential medical products — from testing kits, masks and other PPEs to oxygen and ventilators.
    • According to a recent ICMR study, around five per cent of those infected will need intensive care and half of those in intensive care units will need mechanical ventilation.
    • These projections translate into large numbers that considerably exceed the capacity of the government health system.
    • Private hospitals with adequate infrastructure will need to convert in COVID-19-only hospitals.
    • There should be a clear policy framework of designated hospitals, reporting and referral systems and an appropriate payment system.
    • With many government facilities being converted into COVID-19-only hospitals, a large number of non-COVID-19 patients will need facilities and providers to take care of their other urgent, critical or continuing healthcare needs.
    • The AB PM-JAY has started a process to bring on board more hospitals to respond to such needs.

    3 Protecting healthcare workers

    • As more private providers join this fight, a major concern that will arise is keeping healthcare workers from becoming infected.
    • In addition to being at a high risk of contracting the virus, healthcare workers are also potential carriers.
    • Ensuring their protection is of paramount importance.
    • Increasing the production: Companies manufacturing essential medical products such as ventilators, masks will need to crank up their production.
    • Direct support from banks may be needed to keep production and supply chains going.

    4 The private sector has to support the ecosystem driving health system

    • The private sector will need to vigorously support the large ecosystem that drives the health system as the lockdown and ongoing epidemic restrict movement and normal economic activities.
    • Activities such as the production of essential drugs and medical products, logistics to maintain smooth supply need to not only continue but also accelerate.
    • Support for community activities such as night shelters and community kitchens will need to be strengthened.

    5 Collaborate to share knowledge on the epidemic

    • An adequate stage-wise response to the pandemic and its economic, social and political aftermath will require the rapid filling of the many knowledge gaps.
    • Government, private and not-for-profit research institutions need to collaborate to understand the nature of transmission of the virus.
    • They must understand the factors that slow its spread, the most at-risk communities, or the optimal quarantine period.

    In 2015, UPSC asked whether the private health sector could help bridge the gap in providing universal health coverage. A question can be asked based on the same theme but in reference to dealing with the pandemic.

    Conclusion

    The fight against COVID-19 is not a race to a hilltop. It involves the continuous management of an evolving public health crisis that threatens to spawn economic and social crises. These multiple dimensions will require a whole-of-society approach that goes beyond the government alone.

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  • Coronavirus – Health and Governance Issues

    The WHO balance sheet

    IOCR | International Relations | Mains Paper 2: Important International Institutions

    The US has announced to halt the funding it gives to the WHO accusing it of mismanagement of the COVID-19 spread.

     

    WHO is facing the biggest pandemic in human history. For all the responsibility vested in the WHO, it has little power.  Whatever the causes of this disaster are, it is clear that the WHO has failed in its duty to raise the alarm in time. This shortfall of WHO is failure indicative of a deeper malaise: the global institutional framework is a pawn in the hands of the great powers, cash-strapped.

    About WHO

    • The WHO is a specialized agency of the United Nations responsible for international public health.
    • It is part of the U.N. Sustainable Development Group.
    • The WHO Constitution, which establishes the agency’s governing structure and principles, states its main objective as ensuring “the attainment by all peoples of the highest possible level of health.”
    • It is headquartered in Geneva, Switzerland, with six semi-autonomous regional offices and 150 field offices worldwide.

    Where does WHO get its funding from?

    • It is funded by a large number of countries, philanthropic organisations, UN organisations etc.
    • Voluntary donations from member states (such as the US) contribute 35.41%, assessed contributions are 15.66%, philanthropic organisations account for 9.33%, UN organisations contribute about 8.1%; the rest comes from myriad sources.
    • India contributes 1% of member states’ donations.
    • Countries decide how much they pay and may also choose not to.

    Its expenditure

    • The WHO is involved in various programmes. For example, in 2018-19, 19.36% (about $1 bn) was spent on polio eradication, 8.77% on increasing access to essential health and nutrition services, 7% on vaccine preventable diseases and about 4.36% on prevention and control of outbreaks.
    • The Africa countries received $1.6 bn for WHO projects; and South East Asia (including India) received $375 mn.

    How does WHO prioritise its spending?

    • The annual programme of work is passed by the WHO’s decision-making body, the World Health Assembly.
    • It is attended by delegates from all member states and focuses on a specific health agenda prepared by the Executive Board.
    • The main functions of the Assembly, held annually in Geneva, are to determine WHO policies, appoint the Director-General, supervise financial policies, and review and approve the proposed programme budget.
    • The decision on which country gets how much depends on the situation in the countries.

    WHO and India

    • India became a party to the WHO Constitution on January 12, 1948.
    • The first session of the WHO Regional Committee for South-East Asia was held on October 4-5, 1948 in the office of India’s Health Minister, and inaugurated by Prime Minister Jawaharlal Nehru.
    • The WHO India Country Cooperation Strategy (CCS) 2019-2023 has been developed jointly by the Health Ministry and the WHO India country office.
    • The CCS aims to address complex challenges such as the prevention of NCDs, the control of antimicrobial resistance (AMR), the reduction of air pollution, and the prevention and treatment of mental illnesses.
    • On the ground, the WHO has been a key partner in the immunisation programme, tackling TB and neglected diseases such as leprosy and kala azar, and nutrition programmes across states.

    Immediate reason for US withdrawal

    • The US contributes almost 15% of the WHO’s total funding and almost 31% of the member states’ donations, the largest chunk in both cases.
    • It receives $62.2 mn for WHO projects.
    • That is where most of the WHO funding comes from and the least of it goes.

    Impact

    • For the WHO, the loss of about 15% of its total funding is bound to have an impact on the world over.
    • However, unless other countries do the same as the US, the move may not severely hamstring WHO operations.

    Also read:

    [Burning Issue] World Health Organization (WHO) And Coronavirus Handling

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  • Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

    TRAI wants set top boxes to be made interoperable

    | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    The Telecom Regulatory Authority of India (TRAI) has recommended that all set-top boxes (STBs) in the country must be interoperable, meaning that consumers should be able to use the same STB across different DTH or cable TV providers.

    The TRAI and Telecom Disputes Settlement and Appellate Tribunal are quite often seen in the news.  Most recent was the dispute risen due to AGR dues.

    TRAI has a wide range of jurisdiction over Telecoms. Keep a track on all such news.

    Why such a recommendation?

    • TRAI noted that while the STBs deployed in the cable TV networks are non-interoperable, those by DTH players complied with licence conditions to support common interface module based interoperability.
    • However, in practice, even in the DTH segment the STBs are not readily interoperable.
    • The lack of interoperability of set-top boxes between different service providers deprives the customer of the freedom to change her/his service provider.
    • It also creates a hindrance to technological innovation, improvement in service quality, and the overall sector growth.

    About TRAI

    • The TRAI is a statutory body set up under section 3 of the Telecom Regulatory Authority of India Act, 1997.
    • It is the regulator of the telecommunications and its tariffs in India.
    • The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
    • TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, DTH services and mobile number portability.

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