| Economics | Mains Paper 3: Agriculture and related issues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UN Food Systems Summit

Mains level: Paper 3- Transforming food system in India

Context

The country faces the dual challenge of achieving nutrition security, as well as addressing declining land productivity, land degradation and loss of ecological services with change in land use. Not surprisingly, widespread concerns about poverty, malnutrition and the need for a second Green Revolution are being made in tandem.

Challenges for India

Macro- and micronutrient malnutrition is widespread in India.
18.7% of women and 16.2% of men are unable to access enough food to meet basic nutritional needs.
Over 32% of children below five years are still underweight as per the recently released fifth National Family Health Survey (2019-2021) phase 2 compendium.
India is ranked 101 out of 116 countries in the Global Hunger Index, 2021.
Although India is now self-sufficient in food grains production in the macro sense, it has about a quarter of the world’s food insecure people, a pointer to the amount of food necessary to allow all income groups to reach the caloric target (2,400 kcal in rural and 2,100 kcal in the urban set-up).

India needs to adopt ‘food systems’ for ‘sustainability’ and ‘better nutrition’

The UN Food Systems Summit called for action by governments in five areas: nourish all people; boost nature-based solutions; advance equitable livelihoods, decent work and empowered communities; build resilience to vulnerabilities, shocks and stresses; and accelerate the means of implementation.
Wholistic policy approach: In the context of the intensifying economic, environmental and climate challenges and crisis, the need of the hour is a good theory of transition encompassing the spatial, social and scientific dimensions, supported by policy incentives and mechanisms for achieving a sustainable, resilient and food secure agriculture.
Agro-climatic approach: An agro-climatic approach to agricultural development is important for sustainability and better nutrition.
Potential for crop diversification: Data compiled in the agro-climatic zones reports of the Indian Council of Agricultural Research and the erstwhile Planning Commission of India reveal enormous potential for crop diversification and precision for enhanced crop productivity based on soil type, climate (temperature and rainfall), and captive water resources.
The focus should be on improving farmers’ competitiveness, supporting business growth in the rural economy, and incentivising farmers to improve the environment.
Review of agro-climatic zones: It is assumed that a meticulous review of agro-climatic zones could make smallholders farming a profitable business, enhancing agricultural efficiency and socio-economic development, as well as sustainability.
Strengthening and shortening food supply chains, reinforcing regional food systems, food processing, agricultural resilience and sustainability in a climate-changing world will require prioritising research and investments along these lines.
A stress status of the natural resource base — soil and water in different agro-climatic zones — will help understand the micro as well as meso-level interventions needed with regard to technologies, extension activities and policies.
Infrastructure: Lastly, infrastructure and institutions supporting producers, agri-preneurs and agri micro, small and medium enterprises (MSMEs) in their production value chain are central to the transition.
Alignment with national and State policies: This should be aligned to the national and State policy priorities such as the National Policy guidelines 2012 of the Ministry of Agriculture for the promotion of farmer producer organisations, and the National Resource Efficiency Policy of 2019 of the Ministry of Environment, Forest and Climate Change.

Conclusion

Clearly, science, society and policy have a lot to gain from an effective interface encompassing the range of actors and institutions in the food value-chain and a multidisciplinary and holistic approach, along with a greater emphasis on policy design, management and behavioural change.

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Government Budgets

Budget falls short on green ambitions

| Economics | Mains Paper 3: Government Budgeting

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Deep Ocean Mission

Mains level: Paper 3- Green ambitions and allocations in Budget

Context

One can analyse the budget from three standpoints: Direct allocations for the environment sector, allocations for environment in non-environment sectors, and allocations for other sectors with environmental impacts.

Analysing the Budget from an environmental standpoint

1] Allocation for MoEFCC

There is a slight increase in the budget of the Ministry for Environment, Forests and Climate Change (MoEFCC) from 2021-22’s revised estimate of Rs 2,870 crore to Rs 3,030 crore.
This is a meagre 0.08 per cent of the total budgetary outlay.
While some sectors like forestry and wildlife have seen a healthy rise in allocation, the outlay for others like the National River Conservation Plan has declined.

2] Focus on natural and organic farming

There is a welcome stated focus on natural and organic farming, and on promoting millets.
No details on allocation: There are no details on the allocations, including for linkages necessary to make such farming viable, such as manure and markets.
Also, given the major push for food processing in the budget, without making reservations for community-run businesses, there is a danger of big corporations capturing the organic space.
Missing focus on rainfed farming: Completely missing is a focus on rainfed farming that involves 60 per cent of the farming population and is ecologically more sustainable than artificially irrigated agriculture.
The FM announced the government’s support to “chemical-free farming throughout the country,” but she has also allocated a massive chemical fertiliser subsidy of Rs 1,05,222 crore.
A recent announcement that palm plantations are proposed in Northeast India and the Andaman Islands, both ecologically fragile, makes this a worrying prospect.

3] Positive provisions on the climate front

On the climate front, there are several positive provisions — use of biomass for power stations, boost to batteries, energy-efficiency measures in large commercial buildings, and sovereign green bonds.
Renewable and “clean” energy has received substantially higher allocations.
But the focus remains on mega-parks in solar/wind energy, nuclear power, and large hydro that have serious ecological impacts.
The additional budget for farm-level solar pumps and rooftop solar generation is welcome, but it’s minuscule compared to mega-projects.
Missed opportunity for decentralised renewable energy: Another chance to shift towards decentralised renewable energy with less ecological impacts and greater community access has been missed.
The budget does promise greater support for public transport, something demanded by citizens’ groups for decades.
Unfortunately, most of the allocation in this will go to metros that are extremely carbon-intensive in terms of construction.
The National Climate Action Plan gets an abysmally inadequate Rs 30 crore — the same as in 2021-22.
And there is no focus on a “just transition” that could help workers in fossil fuel sectors, like coal, to transition to jobs in cleaner, greener sectors.

4] Concerns with focus on infrastructure in Budget

As highlighted by the FM, this is predominantly an “infrastructure budget”.
While investments in infrastructure for small towns and villages are urgently needed, much of what is proposed are mega-projects.
The proposed 25,000 km increase in highways will further fragment forests, wetlands, mountains, grasslands, agricultural lands and bypass most villages.
A shift in paradigm to decentralised, sustainable, and community-oriented infrastructure is missing.
Several specific allocations are of further concern. For instance, the Ken-Betwa river-linking project, given over Rs 40,000 crore, will submerge valuable tiger habitat.
The Deep Ocean Mission and the Blue Revolution allocations are oriented towards commercial exploitation rather than conservation and sustainable use.

5] Missed opportunity on green jobs

The budget misses out on a major shift to “green jobs”.
This includes support to decentralised (including handmade) production of textiles, footwear, and other products.
Even the MGNREGS, which could have been used for regenerating two-thirds of India’s landmass that is ecologically degraded, has got reduced allocation.

Conclusion

Another chance to turn the economy towards real sustainability and equity — a real “Amrit Kaal” as India heads to a centenary of Independence — has been missed.

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Foreign Policy Watch: India-Russia

Russian Aggression on Ukraine and International Law

Prelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Russia-Ukraine War

The Russian annexation of Russia has been condemned widely and raised several questions concerning violation of international law.

How is Russia violating the UN Charter?

(1) Principle of Non-Intervention

The Russian attack on Ukraine is violative of the non-intervention principle, and amounts to aggression under international law.
The principle of non-intervention in domestic affairs is the foundational principle on which existing international order is based.
The principle is enshrined in article 2(4) of the UN Charter requiring states to refrain from using force or threat of using force against the territorial integrity or political independence of any state.
It prohibits any kind of forcible trespassing in the territory of another state, even if it is for temporary or limited operations such as an ‘in and out’ operation.

(2) Principle of Non-Aggression

The UN General Assembly Resolution 3314 (1974) defines aggression as the use of armed force by a state against the sovereignty, territorial integrity or political independence of another state.
Additionally, allowing one’s territory to be used by another state for aggression against a third state, also qualifies as an act of aggression.
Accordingly, Belarus can also be held responsible for aggression as it has allowed its territory to be used by Russia for attacking Ukraine.
Aggression is also considered an international crime under customary international law and the Rome statute establishing the International Criminal Court.

(3) Principle of Political Independence

Russia’s desire to keep Ukraine out of NATO is a prime reason for its use of force against Ukraine.
This is violative of Ukraine’s political independence under article 2(4) as Ukraine being a sovereign state is free to decide which organizations it wants to join.
Also, by resorting to use of force, Russia has violated article 2(3) which requires the states to settle their dispute by peaceful means in order to preserve international peace and security.

(4) Principle of Self-Defence

In face of the use of force by Russia, Ukraine has the right to self-defence under international law.
The UN Charter under article 51 authorizes a state to resort to an individual or collective self-defense until the Security Council take steps to ensure international peace and security.
In this case, it seems implausible for the UNSC to arrive at a decision as Russia is a permanent member and has veto power.

Russia’s hype:

(1) Nuclear escalation

It has been claimed by Russia that Ukraine may acquire nuclear weapons with the help of western allies.
However, the International Court of Justice (ICJ) in the Legality of Threat of Nuclear Weapons case held that mere possession of nuclear weapons does not necessarily constitute a threat.
Thus, even if Ukraine has, or were to acquire nuclear weapons in the future, it does not become a ground for invoking self-defence by Russia.

(2) Aggression against Russia

Further, mere membership in a defence alliance such as NATO cannot necessarily be considered as a threat of aggression against Russia.
Thus, here too Russia cannot invoke self-defence.

(3) Act in self-defence

Russia can also not invoke anticipatory self-defence.
Such invocation according to the Caroline test would require that the necessity of self-defence was instant, overwhelming, leaving no choice of means, and no moment for deliberation.
However, this is not the case with Russia.

What options is Ukraine left with?

Ukraine has a right under international law to request assistance from other states in form of military assistance, supply of weapons etc.
On the other hand, Russia has also claimed that it is acting in self-defence.
This claim is questionable, as there has been no use of force, or such threats against Russia by Ukraine.

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Cyber Security – CERTs, Policy, etc

Cyber warfare

Prelims Only | Security Issues | Mains Paper 3: Cyber Security

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Cyberwarfare

Alongside the missiles and bombs slamming down in Ukraine, the country has also been hit by a wave of cyber-attacks targeting critical infrastructure companies.

What is Cyberwarfare?

Cyberwarfare has emerged as a new form of retaliation or passive aggression deployed by nations that do not want to go to actual war but want to send a tough message to their opponents.
In June 2020, security experts from Cyfirma uncovered a conspiracy by Gothic Panda and Stone Panda, two China-based hacker groups, to target media and critical infra companies in India.
They led large-scale attacks amid the border stand-off between India and China in Ladakh.
For many countries, cyberwarfare is a never-ending battle as it allows them to constantly harass and weaken geopolitical rivals.

What has happened in Ukraine so far?

Ukraine has been one of the primary targets of Russia since 2020.
The recent spate of attacks started in mid-January and knocked out websites of the ministry of foreign affairs and the ministry of education.
Government websites and a number of banks have been hit by another mass distributed denial of service (DDoS) attacks.
DDoS attacks disrupt online services by overwhelming websites with more traffic than their server can handle.

Which countries are behind state-backed cyberattacks?

Russia is one of the top perpetrators of state-backed cyberattacks.
According to an October 2021 report by Microsoft Corp., Russia accounted for 58% of state-backed attacks worldwide, followed by North Korea (23%), Iran (11%), and China (8%).
North Korea is said to have built a cyber-army of 7,000 hackers.

Which companies are targeted and why?

State-backed cyberattacks are usually carried out to steal state secrets, trade deals and weapons blueprint, or target large multinationals to steal their intellectual property (IP) and use it to build local industry.
Cryptos are also on the radar now. North Korean hackers reportedly stole cryptos worth $400 million in 2021.
However, when states launch cyberattacks on other states as a result of worsening of geopolitical relations, the target is usually critical infrastructure firms to disrupt economic activity.

How often is India targeted?

Such cyberattacks rose 100% between 2017 and 2021, according to a global study by Hewlett-Packard and the University of Surrey.
In 2019, the administrative network of the Kudankulam Nuclear Power Plant was hit by a malware attack by North Korea-backed Lazarus Group.
China-backed hackers were believed to be behind a power outage in Mumbai in 2020.
According to Black Lotus Labs, Pakistan-based hackers targeted power firms and one government organization in India in early 2021 using Remote Access Trojans.

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Forest Fires

Fire Ready Formula by UNEP

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

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UNEP’s Fire Ready Formula

Mains level: Wildfires prevention

The United Nations Environment Programme (UNEP) has called on global governments to adopt a new ‘Fire Ready Formula,’ as it warned that incidences of wildfires would rise in the future.

What is the Fire Ready Formula?

The new formula envisages that 66 per cent of spending be devoted to planning, prevention, preparedness and recovery.
The remaining 34 per cent can be spent on response.

New “Fire Ready Formula” focuses on Planning and Prevention
Serial No	Budget item	Percentage share of the total on wildfire management recommended
1	Planning	1 %
2	Prevention	32 %
3	Preparedness	13 %
4	Response	34 %
5	Recovery	20 %

Why need such a formula?

The UNEP report projected that the number of wildfires is likely to increase by up to 14 per cent by 2030.
Integrated wildfire management was key to adapting to current and future changes in global wildfire risk, the UNEP.
There is a need to invest more in fire risk reduction, work with local communities and strengthen global commitment to fight climate change.
Achieving and sustaining adaptive land and fire management requires a combination of policies, a legal framework and incentives that encourage appropriate land and fire use.

Back2Basics: United Nations Environment Programme (UNEP)

UNEP is responsible for coordinating responses to environmental issues within the United Nations system.
It was established by Maurice Strong, its first director, after the United Nations Conference on the Human Environment in Stockholm in June 1972.
Its mandate is to provide leadership, deliver science and develop solutions on a wide range of issues, including climate change, the management of marine and terrestrial ecosystems, and green economic development.
UNEP hosts the secretariats of several multilateral environmental agreements and research bodies, including:

1. Convention on Biological Diversity (CBD),

2. Minamata Convention on Mercury,

3. Convention on Migratory Species and

4. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

In 1988, the World Meteorological Organization and UNEP established the Intergovernmental Panel on Climate Change (IPCC).
UNEP is also one of several Implementing Agencies for the Global Environment Facility (GEF) and the Multilateral Fund for the Implementation of the Montreal Protocol.

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Modern Indian History-Events and Personalities

Who was Narsinh Mehta?

Prelims Only | | Mains Paper 1: Arts & Culture

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Narsinh Mehta

Mains level: Bhakti Movement

Recently Junagadh University discovered a new species of spider and named it Narsinhmehtai in honour of Narsinh Mehta, the 15th-century poet who was a devotee of Lord Krishna.

Narsinh Mehta

Mehta is believed to have been born in Talaja in present-day Bhavnagar district in 1410 and died in Junagadh in 1480s.
The family had its origin in Vadnagar in north Gujarat, and the caste name is believed to be Pandya but as members of the family were officers in kingdoms of those days.
They were called Mehta (one who keeps books of accounts) which later on became the family name.
His father died when Mehta was just 5 and it is believed that Mehta learnt to speak only when he was eight years old, after a holy man asked him to utter the name of Lord Krishna.
His elder brother Bansidhar and Bansidhar’s wife raised Mehta and arranged his marriage.

Miracles in his life

Mehta used to spend time in Krishna-bhakti (devotion to Lord Krishna) even after his marriage to Manekba, paying little attention to family duties.
Mehta is believed to have run away from home and done tapashcharya at a Shiva temple in Talaja for seven days.
After that, Mehta relocated with his family to Junagadh.
Nonetheless, folklore has it that Lord Krishna, by impersonating as Mehta, helped the devout poet organise shraadhha (a ritual performed post death of a family member) of his father, marriage of his son Shamaldas etc.
One of his bhajans narrates how Ra Mandlik, the then ruler of Junagadh had imprisoned him, accusing the poet of not having seen Lord Krishna and yet claiming to have done so.

His poetry

Mehta penned more than 750 poems, called padd in Gujarat.
They mainly deal with devotion to Lord Krishna, gyan (wisdom) vairagya (detachment from worldly affairs).
Others like Shalmshano Vivah, Kunvarbainu Mameru, Hundi and Harmala are believed to be autobiographical accounts of different occasions in his life.
Vaishanavajn to tene kahiye, Mahatma Gandhi’s favourite bhajan is Mehta’s creation.

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Foreign Policy Watch: India-Russia

Changing dynamics of Pakistan-Russia Relations

| International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: TAPI gas pipeline

Mains level: Russia-Pakistan affinity and its impact on India

The two-day visit to Moscow by Pakistan’s PM Imran Khan comes at a time when President Vladimir Putin is the bad boy of the world for his actions against Ukraine.

Pakistan–Russia Relations: A backgrounder

The Soviet Union and Pakistan first established diplomatic and bilateral relations on 1 May 1948.
For most of the Cold War, the Soviet Union’s relations with Pakistan have seen ups and downs during the different periods in the history of Pakistan.
Pakistan is credited for playing a key role for allying and supporting the West during this time period of the Cold War.
In recent years their ties have warmed as a countermeasure to warming ties between India and the United States.

Instances of Russia defying India

The two countries carried out their first-ever joint military drills in 2016 despite Indian requests to postpone due to the Uri attack.
Pakistan and Russia signed an agreement for the Pakistan Stream Gas pipeline from Karachi to Kasur, and reached a price accord by December 2016.
Pakistan has also granted Russia access to a warm water port in the Arabian Sea (Gwadar Port).
Their mutual partnership with China that has grown in recent years signals the undeniable development of a new axis in South Asia and Central Asia.
The two countries take the lead in projecting the Taliban as the rightful claimants to power in Kabul.

A timeline of relations

Cold war era: Pakistan’s relations with Russia have come a long way since the time it was a willing ally and treaty partner of the US bloc against the Soviet Union. It had helped the US repair its relations with China, which sent Beijing and Moscow further apart.
Paving way for India: In response, India and USSR solidified their ties with a defense pact and increased economic and people-to-people exchanges.
Afghan War: Pakistan saw itself as a frontline state against the spread of communism, and actively aided and assisted in the defeat of the Red Army in the first Afghan war, with the US and Saudi Arabia using the Pak Army.
Fall of USSR: The collapse of the Soviet Union led to major shifts in international relations. From their vantage points, Pakistan and Russia watched the US and post-economic-reforms India draw closer.

Pakistan parted with the US

Putin’s Russia began looking for new markets for its military hardware, as well as new international partners, began building ties with Pakistan.
By then, serious rifts had emerged between the Obama Administration and Pakistan.
The killing of Osama bin Laden in a stealth raid by US marines in Pakistan’s Abbottabad became the turning point.

Russia-Pakistan-China

(1) Helping the lonely Pakistan

In 2011, to New Delhi’s shock, Russia lifted its four-decade-old arms embargo on Pakistan — and within four years, would sell Pakistan its first MiG attack helicopters.
As a US defeat in Afghanistan began to look certain, both countries made common cause on Afghanistan, again to India’s dismay.
In September 2016, after the Jaish-e-Mohammed attack in Uri, Russia went ahead with a joint military exercise with Pakistan, ignoring New Delhi’s appeal.
In 2017, with Indo-Pak relations at their lowest, Russia sold more helicopters to Pakistan.

(2) Enters the old dragon

After its 2014 annexation of Crimea, Russia found a friend in China, the long-time friend of Pakistan, triangulating the relationship.
Both Pakistan and Russia are participants in China’s Belt and Road Initiative.
After the Taliban takeover in Afghanistan, the world has seen the three take common positions and in tacit acknowledgment of each other’s interests in that country.

Impact on ties with India

The Russia-India relationship is not what it used to be in the Soviet days, both sides recognise its continued mutual benefits. However-

Russia is hardly starry-eyed about its relations with Pakistan.
It has clear views against Pakistan’s patronage of terrorists.
While it is supportive of the Taliban regime, Russia is concerned about radical terrorism expansion from Afghanistan.

Russia remains India’s biggest arms supplier, and India took the risk of being sanctioned by the US when it bought the Russian S 400 missile defence system.
New Delhi has not yet allowed its close ties with the US to tilt its delicate balance on the Ukraine issue.

Significance of Pak Visit

IK is visiting Russia on the Kremlin’s invitation sides to convey their own messages to the West about building partnerships in a changing world.
He will become the first foreign leader to visit Russia after Putin recognized two breakaway regions of Ukraine as independent republics.
He is also the first Pakistani PM to travel to that country since the landmark visit by Nawaz Sharif in 1999.

What does Pakistan seeks to have?

Pakistan wants Russia to invest in, and construct a $2.5 billion gas pipeline from the seaport in Karachi to Kasur in the Punjab hinterland, even though this pipeline is unlikely to transport Russian gas.
Moscow, however, appears to be more interested in the possibility of building the 1,800-km Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.

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International Space Agencies – Missions and Discoveries

NASA to decommission the International Space Station

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

Note4Students

From UPSC perspective, the following things are important :

Prelims level: International Space Station

Mains level: Space research

The National Aeronautics and Space Administration (NASA) has announced plans to retire and decommission the International Space Station (ISS) by 2031.

What is the ISS?

The ISS was launched in 1998 as part of joint efforts by the U.S., Russia, Japan, Canada and Europe.
The idea of a space station originated in the 1984 State of the Union address by former U.S. President Ronald Reagan.
The space station was assembled over many years, and it operates in low-earth orbit.
Since its inception, it has served as a laboratory suspended in space and has aided multiple scientific and technological developments.
The ISS was originally built to operate for 15 years.

Why was ISS launched?

A space station permits quantum leaps in research in science, communications, and in metals and lifesaving medicines which could be manufactured only in space.
ISS has consistently maintained human presence for the past 21 years, providing astronauts with sophisticated technologies for scientific research.

Why is NASA planning to decommission the ISS?

The space station has already surpassed that checkpoint by being active for 21 years, with plans to continue operations till 2030.
The ISS goes through 16 rotations of the earth per day, causing extreme temperature changes on the exterior.
The side facing the sun can get heated up to 121°C while the temperature on the opposite, darker side can fall to –157°C, causing intense expansion and contraction of the building material.
This orbital thermal cycling, coupled with dynamic loading, affects the longevity of the primary structure of the space station.
The technical lifetime is also limited by parts like radiators, modules and truss structures that tend to degrade over time.

What is the procedure to de-orbit the ISS?

NASA plans to remove the ISS from its orbit around the earth and eventually plunge it into the ocean at a point farthest from human civilisation.
The space agency will use the dual method of natural orbit decay and a re-entry manoeuvre to bring an end to the ISS as we know it.
According to the plan, the earth’s natural atmospheric drag will be used in lowering the altitude of the ISS while setting up the de-orbit.
The space station operators will then provide the final push to it to lower the structure to the maximum possible height and ensure safe re-entry into the earth’s atmosphere.
It would then lead to Point Nemo over the South Pacific Oceanic Uninhabited Area (SPOUA).
Dissembling process would have posed huge logistical and financial challenges.

How big is it?

The ISS is a huge structure — almost the size of a football field — and it was not designed to be disassembled easily in space.
The station currently operates in low-earth orbit above 400 km in altitude, at a point where it still experiences atmospheric drag and requires re-boosts to continue in its orbit.
The station also has a mass of over 4,30,000 kg.
Existing propulsion systems do not have the capacity to raise the station’s altitude to a high target and escape low-earth orbit.
The random re-entry method was discarded since it carries a huge risk for the human population on the ground.

What is the future of space stations?

As the ISS plans to end operations in space, new players are already lining up to replace it.
In January 2022, China announced that its space station will be ready for operations this year.
Blue Origin, the aerospace company founded by Jeff Bezos, has also announced its plans to build Orbital Reef, a commercially developed, owned, and operated space station in low-earth orbit.
Blue Origin is working alongside Sierra Space on the project.

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Who is a Chess Grandmaster?

Prelims Only | Trivia | Mains Paper 2: Health & Education

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various titles in Sports

Mains level: NA

India’s teenage chess grandmaster Rameshbabu Praggnanandhaa has won praise for a stunning victory over world number one Magnus Carlsen in an online championship.

Why are we reading this?

UPSC had asked three questions on sports in CSP 2021. They were based on Laureus World Sports Award, Summer Olympics, and ICC World Test Championship.
Try to ace uncertainties. No one can memorize such facts.

Grandmaster: Behind the Title

Grandmaster is the highest title or ranking that a chess player can achieve.
The Grandmaster title — and other chess titles — is awarded by the International Chess Federation, FIDE (acronym for its French name Fédération Internationale des Échecs).
It is the Lausanne-Switzerland-based governing body of the international game.
The title is the badge of the game’s super elite, a recognition of the greatest chess talent on the planet, which has been tested and proven against a peer group of other similarly talented players.

Other (lesser) titles

Besides Grandmaster, the Qualification Commission of FIDE recognises and awards seven other titles:

International Master (IM)
FIDE Master (FM)
Candidate Master (CM)
Woman Grandmaster (WGM), Woman International Master (WIM), Woman FIDE Master (WFM), and Woman Candidate Master (WCM) and so on .

Titles are for life

All the titles, including that of Grandmaster, are valid for life, unless a player is stripped of the title for a proven offence such as cheating.

Qualifications for Grandmaster

The qualifications for Grandmaster were changed several times, including in 1957, 1965, and 1970.
Currently, FIDE awards chess’s highest honour to a player who is able to achieve a FIDE Classical or Standard rating of 2,500, plus three Grandmaster norms.
Grandmaster norms are defined by a set of complex and rigorous rules regarding tournaments, games, and players, that are set out in the FIDE Title Regulations.
The current regulations were approved by the FIDE Council on October 27, 2021, and came into effect on January 1, 2022.
Each norm is very difficult to attain.
Broadly, a player must have a performance rating of 2,600 or higher in a FIDE tournament that has nine rounds.

Who holds maximum titles?

FIDE has so far recognized fewer than 2,000 Grandmasters out of the millions who play the game around the world.
A vast majority of Grandmasters have been male. Russia (and the erstwhile USSR) has produced the most Grandmasters in the world, followed by the United States and Germany.

Grandmasters in India

India became a chess powerhouse in the 2000s, and now has more than 70 Grandmasters.
In 2016, Praggnanandhaa had become the world’s youngest IM at age 10 years, 10 months, and 19 days.

Try this question from CSP 2021:

Q. Consider the following statements in respect of the Laureus World Sports Award which was instituted in the year 2000:

American golfer Tiger Woods was the first winner of this award.

The award was received mostly by ‘Formula One’ players so far.

Roger Federer received this award maximum number of times compared to others.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Post your answers here.

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

[pib] Quantum Key Distribution

PIB | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

Note4Students

From UPSC perspective, the following things are important :

Prelims level: QKD

Mains level: Secured Communications, QKD

A joint team of scientists from DRDO and IIT Delhi, for the first time in the country successfully demonstrated Quantum Key Distribution (QKD) link between Prayagraj and Vindhyachal in Uttar Pradesh, a distance of more than 100 kilometers.

What is QKD Technology?

Quantum key distribution (QKD) is a secure communication method that implements a cryptographic protocol involving components of quantum mechanics.
It enables two parties to produce a shared random secret key known only to them, which can then be used to encrypt and decrypt messages.
It gives the ability of the two communicating users to detect the presence of any third party trying to gain knowledge of the key.
This is a result of a fundamental aspect of quantum mechanics: the process of measuring a quantum system, in general, disturbs the system.
By using quantum superposition or quantum entanglement and transmitting information in quantum states, a communication system can be implemented that detects data leak.

How does it work?

QKD works by transmitting many light particles, or photons, over fiber optic cables between parties.
Each photon has a random quantum state, and collectively, the photons sent make up a stream of ones and zeros.
This stream of quantum states that make up ones and zeros are called qubits — the equivalent of bits in a binary system.
When a photon reaches its receiving end, it will travel through a beam splitter, which forces the photon to randomly take one path or another into a photon collector.
The receiver will then respond to the original sender with data regarding the sequence of the photons sent, and the sender will then compare that with the emitter, which would have sent each photon.

Benefits offered

It allows the detection of data leak or hacking because it can detect any such attempt.
It also allows the process of setting the error level between the intercepted data in dependence.

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WTO and India

India risks being left out of TRIPS waiver

| Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- TRIPS waiver for Covid-19 treatment issue

Context

When the Covid-19 pandemic pounded the globe, India, with South Africa, piloted a proposal to waive key provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement on Covid-19 vaccines.

Significance of TRIPS waiver for Covid-19 related medical products

The TRIPS agreement is part of the international legal order on trade enshrined in the World Trade Organization (WTO).
The core idea behind the proposal is that intellectual property (IP) rights such as patents should not become a barrier in scaling up the production of medical products like vaccines, diagnostics and therapeutics essential to combat Covid-19.
However, the WTO has failed to adopt a TRIPS waiver to date.
Geographically limited waiver: The developed world is talking of a TRIPS waiver that would be geographically limited and exclude India.
This is a failure of India’s economic diplomacy.
There are also attempts at limiting the waiver to vaccines alone, leaving out diagnostics and therapeutics.

Domestic factors that affected India’s global campaign for TRIPS waiver

1] India failed to use provisions under Indian Patent Act

During the entire pandemic, India rarely made use of the existing flexibilities under the Indian Patent Act, such as compulsory licences (CL), which are consistent with the TRIPS agreement, to increase the supply of Covid-19 medical products despite being nudged by the judiciary to do so.
On the contrary, during the peak of the second Covid wave, the central government filed an affidavit in the Supreme Court stating that the main constraint in boosting the production of key drugs is the unavailability of raw materials, not IP-related legal hurdles.
.This stand completely contradicted India’s argument internationally that views IP as an obstacle to augmenting the supply of Covid-19 medical products.

2] Lack of national strategy

India did not proactively develop a national strategy to implement the TRIPS waiver as and when it is adopted.
In other words, a TRIPS waiver at the WTO would only be an enabling framework.
It would then require member countries to amend their domestic IP laws to implement the waiver.

3] Failure to involve Indian pharma industry

The government failed to get the Indian pharmaceutical industry on board.
Pharmaceutical bodies are a divided lot with many Indian companies speaking against the waiver, thus denting India’s global campaign.

4] Failure to walk the talk on indigenously developed Covaxin

India should have unlocked the technical know-how of Covaxin to the world.
While technology transfer agreements for Covaxin have been inked with domestic companies, making the vaccine technology available to anyone interested globally, at a minimal price.
This would have exhibited India’s resolve to walk the talk on the TRIPS waiver.

Conclusion

While India would oppose the attempted exclusion, the lesson is that for economic diplomacy to flourish, it should be backed by concrete actions on the domestic front.

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Corruption Challenges – Lokpal, POCA, etc

Untangling Kerala’s Lokayukta controversy

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

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Lokpal and Lokayuktas Act

Mains level: Paper 2- Lokpal Acts of states

Context

The controversy surrounding the amendment to the Lokayukta Act of Kerala — effected through an ordinance —has raised the political temperature in the State.

The background of the Lokayukta

The term Lokpal was first used in a report of the Administrative Reforms Commission headed by Morarji Desai as far back as in 1966.
The first Bill on Lokpal was introduced in the Lok Sabha in 1968 which lapsed with the dissolution of the House.
Finally, after 45 years the Lokpal and Lokayuktas Bill was passed by Parliament in 2013.
The Lokpal and Lokayukta Act delegates the power to States to establish by law the Lokayukta to deal with complaints relating to corruption against public functionaries.
The Lokpal has jurisdiction to inquire into allegations of corruption against the Prime Minister, Ministers, Members of Parliament, Group A, B, C and D officers and officials of the central government.
After the conclusion of the investigation, the Lokpal may file a case in the special court in case the findings disclose the commission of offence under the Prevention of Corruption Act by the Prime Minister, Ministers or Members of Parliament.
Some States already have established Lokayuktas. For example, Maharashtra in 1971, and Kerala in 1999.

How Lokpal is different from other investigative bodies

The Lokpal is no ordinary investigative body.
Connection with judiciary: It is headed by the incumbent Chief Justice of of India or a retired judge.
It has eight members, four of whom are judicial members.
The Lokpal has an inquiry wing and a prosecution wing to deal with investigation and prosecution, respectively.
The director of prosecution files the case in the special court based on the findings of the Lokpal.

Issue in Kerala

In order to get a clearer perspective on the Kerala Lokayukta controversy, it is necessary to understand the scheme of the Lokpal and Lokayuktas Act enacted by Parliament.
The long title of the Act says: “An Act to provide for the establishment of a body of Lokpal for the Union and Lokayukta for States to inquire into allegations of corruption against certain public functionaries….”
Investigative body: Thus, the Lokpal is conceived of as a body which will inquire into allegations of corruption.
Section 14 of the Lokayukta Act in Kerala which has now been amended said that if the Lokayukta is satisfied on the complaint against the public servant being substantiated that he should not continue to hold the post held by him.
In other words, if the public servant is the Chief Minister or a Minister, he shall forthwith resign his office.
It may be noted here that such a provision does not exist in any of the State laws or the Lokpal Act of the Centre.
An investigative body does not have the legal authority to direct the public servant to resign his post on the basis of its findings.
The Chief Minister or a Minister holds office during the pleasure of the Governor (Article 164).
The Constitution of India does not contemplate any external pressure on the Governor to withdraw his pleasure.
The Sarkaria Commission had suggested that the Governor can dismiss a Chief Minister only when he loses his majority in the Assembly and refuses to step down.
The Supreme Court has accepted this recommendation of the Sarkaria Commission.
No agency created by a law made by the Assembly, particularly an investigative body, can declare that its decision be carried out by the Governor.
It would amount to a violation of the Constitution.
State law includes the office bearers of political parties within its definition of ‘public servant’.
The Lokayukta law was enacted to inquire into cases of corruption of public functionaries such as Ministers, legislators, etc. who are covered by the Prevention of Corruption Act.
This Act does not include office-bearers of political parties in its definition clause.
Another problematic provision in this law is the one which deals with the reports of Lokayukta (Section 12).
It says that the Lokayukta shall, on the allegation of corruption being substantiated, send the findings along with recommendation of action to the competent authority who is required to take action as recommended by the Lokayukta.
It further says that if the Lokayukta is satisfied by the action taken by the competent authority, he shall close the case.
There is no provision in the central law under which the Lokpal can close the case before it reaches the court.
The Lokayukta not being a court does not have the legal capacity to close the corruption case under any circumstances.

Conclusion

The Kerala Lokayukta Act should be re-examined by a committee of the Assembly and should be brought on a par with the Lokpal Act. A legislation which seeks to punish corrupt public functionaries should be placed above controversies.

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Foreign Policy Watch: India-Russia

Russia-China Axis

| International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: China-Russia axis and implications on India

Russian President Vladimir Putin’s visit to China this month, as well as the Ukraine crisis, have turned the spotlight on Russia’s relations with China.

News: China-factor in Ukraine Crisis

Many in the west have blamed the Russia-China axis for motivating Moscow’s recent moves and ensuring it will not be completely isolated in the face of western sanctions.
At the same time, Beijing has found itself walking a tightrope in its response and has so far stopped short of endorsing Russia’s actions.

Russia-China Relations: A backgrounder

Relations between China and the former Soviet Union were frosty, marked by mistrust and doctrinal differences for most of the Cold War decades.
The change came in 1989, when Mikhail Gorbachev became the first Soviet leader to land in Beijing since Nikita Khrushchev in 1958.

Economic dependency: A decade after the Soviet Union broke up, disappointed and humiliated and deep in economic crisis, Russia under Putin’s first presidency turned to China under President Jiang Zemin.
Neighborhood: In 2001, the two countries signed the Treaty of Good-Neighbourliness and Friendly Cooperation, paving the way for expanding economic and trade ties.
Technological support: For the new People’s Republic of China, the Soviet Union was the most important source of financial and technological support.
Respect for sovereignty: Russia’s backing for China’s position on Taiwan is also a benchmark.

Current state of ties

Last year, Russia’s Foreign Minister has described relations as the “best in their entire history”. Both premiers have met 38 times (in person and virtually) since 2013.
The biggest factor behind their current closeness is:

Shared discomfort with the US and its allies
NATO and its ideological cold war approaches
Indo-Pacific strategy and QUAD
One-China Principle

Military closeness

China in 2014 became the first foreign buyer of the S-400 missile defence system, which India has also purchased (although there have been reported delays in delivery for reasons unknown).
Their joint exercises have also grown in scope.
Last year, a third “joint strategic air patrol” was held over the East China Sea.

Trade and Commerce

Russia is China’s largest source of energy imports and second largest source of crude oil.
Energy set to account for 35% of trade in 2022.
China has been Russia’s biggest trading partner for 12 consecutive years and accounts for close to 20% of Russia’s total foreign trade (Russia, on the other hand, accounts for 2% of China’s trade).
But Russia is, for China, a key market for project contracts besides energy supplies.
Chinese companies signed construction project deals worth $5 billion last year — for the third straight year.

Chinese response to the Ukraine Crisis

Given these deep trade linkages, China does not want instability (or, for that matter, a spurt in energy prices).
China has iterated that the sovereignty, independence and territorial integrity of all countries should be respected and safeguarded.
China has preferred resolution to the current crisis through diplomacy and a return to the Minsk Agreement.

Minsk Agreement: They were a series of international agreements which sought to end the war in the Donbas region of Ukraine.

Implications for the world

China has repeatedly underlined that it is sympathetic to Russia’s concerns on NATO, which mirror its own opposition to America’s allies in the Indo-Pacific.
As strategic back-to-back fraternal partners, China is obliged to bolster Russia in time of need.
With consistent support from China, the Russian economy has become increasingly resilient following years of sanctions imposed by the US and other Western developed countries.
A strong economy will back up Moscow to deflect ruthless economic coercion from the US.

Implications for India

Strategists in the west and in India have often questioned the robustness of the relationship as well as Russia’s possible unease at being the “junior partner” and increasingly beholden to Chinese interests.
The Russian President’s invite to Pak PM Imran Khan is the recent unwelcomed moved for India.
In this regard, New Delhi expects Sino-Russian closeness to continue, which poses its own challenges.
This is not, however, an entirely new situation, as history reminds us, on how the Soviet Union responded to China’s attack on India in 1962.

Conclusion

It is no doubt that India would restrict its foreign policy choices and undermine its own status as a rising power of global standing by taking sides in a conflict that has nothing to do with it.

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Right To Privacy

IT Ministry pitches for Data Monetization Policy

| Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Data Monetization

Mains level: India Data Accessibility and Use Policy, 2022

The Ministry of Electronics and Information Technology’s proposal to monetise data collected at the central level has data policy and other experts divided.

Backgrounder to this policy

The idea of monetising citizens’ data for greater public good was first floated by the government in the Economic Survey of 2018-19.
It had noted that since such data is generated and belongs to the people, it should be used for the people.
The survey had also noted that private sector could be granted access to “select databases” for commercial use.

India Data Accessibility and Use Policy, 2022

Key Propositions:

Sale of Public Data: The data, which has been collected by the central government and undergone some value addition be allowed to be sold for some price.
Identifying value data: The draft of the policy suggests new framework for identifying “high value data-set” on the basis of the data’s degree of importance in the market.
Establishment of India Data Office: The draft has also suggested setting up of a central India Data Office will be created under MeitY.

Chief Data Officer: All the central government’s line ministries will have to form their respective Data Management Unit, which will be headed by a Chief Data Officer.
India Data Council: These chief data officers along with the India Data Officer will together form the IDC, which will decide on the policy matters of data accessibility and its usage.

Data sharing toolkit: It will be the broad umbrella to help respective central or state government ministries and departments “assess and optimally manage” the risks associated with the release and sharing of such data.

Significance of the move

Non-personal data as national resource: The thought process to consider non personal data as community or national resource, in itself is commendable.
Revenue generation: The core problem with the government selling citizens’ data is the revenue generation.
Boosting investments: The new policy will encourage data sharing among government departments and potentially help the investor ecosystem.

Issues flagged with the Policy

Individual privacy: Data monetization may happen at cost of individual privacy. The most sought-after datasets are those that contain sensitive personal data of individuals, ex. medical history, financial data.
Absence of Data Protection Law: The new draft policy has been announced at a time when the country is yet to finalise the countours of a data protection law.
State interference: The policy could also face pushback from big tech companies whose business model is based on the monetisation of large-scale data collection model.
Political risks: When the govt starts selling citizen data, even if anonymised, the government gets into business its making money.
Un-regulation: Once the govt starts making money, its very hard to reduce that activity or to regulate it in a manner where it is impartial to the public.
Anonymisation of data: There is a lack of proper standard and framework on data anonymisation leading to a possible that such data may be “reverse-engineered”.

Way forward

This policy is a good intent in which the government can monetise the wide range of data it currently holds.
However it remains to be seen how the pricing mechanism would work.
It is important to understand that datasets cannot be priced uniformly, and the value of a particular dataset varies depending on the context in which it is solved.

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Armed Forces (Special Powers) Act

Panel on AFSPA removal misses ‘45-day’ deadline

| Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AFSPA

Mains level: Read the attached story

A committee constituted by the Union Home Ministry to study the withdrawal of the Armed Forces (Special Powers) Act, or AFSPA, from Nagaland, slated to submit a report within 45 days is yet to conclude its findings.

AFSPA: A Backgrounder

The AFSPA, 1958 came into force in the context of insurgency in the North-eastern States decades ago.
It provides “special power” to the Armed Forces applies to the Army, the Air Force and the Central Paramilitary forces etc.
It has been long contested debate whether the “special powers” granted under AFSPA gives total immunity to the armed forces for any action taken by them.

Armed Forces (Special Powers) Act, 1958

Armed Forces Special Powers Act, to put it simply, gives armed forces the power to maintain public order in “disturbed areas.”
AFSPA gives armed forces the authority use force or even open fire after giving due warning if they feel a person is in contravention of the law.
The Act further provides that if “reasonable suspicion exists”, the armed forces can also arrest a person without warrant; enter or search premises without a warrant; and ban the possession of firearms.

What are the Special Powers?

The ‘special powers’ which are spelt out under Section 4 provide that:

(a) Power to use force, including opening fire, even to the extent of causing death if prohibitory orders banning assembly of five or more persons or carrying arms and weapons, etc are in force in the disturbed area;

(b) Power to destroy structures used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;

(c) Power to arrest without warrant and to use force for the purpose;

(d) Power to enter and search premises without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

What are the Disturbed Areas?

A disturbed area is one that is declared by notification under Section 3 of the AFSPA.
As per Section 3, it can be invoked in places where “the use of armed forces in aid of the civil power is necessary”.

Who can declare/notify such areas?

The Central Government or the Governor of the State or administrator of the Union Territory can declare the whole or part of the State or Union Territory as a disturbed area.
A suitable notification would have to be made in the Official Gazette.

Presently ‘Disturbed Areas’

AFSPA is currently in force in Assam, Nagaland, Manipur, 3 districts of Arunachal Pradesh, and areas falling within the jurisdiction of 8 police stations in Arunachal Pradesh bordering Assam.
In Jammu and Kashmir, a separate law Armed Forces (Jammu and Kashmir) Special Powers Act, 1990 has been in force.

Is it a License to Kill?

While the operation of the Section has been controversial in itself, it has attracted much criticism when actions have resulted in the death of civilians.

Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
Protection against prosecution: This power is further bolstered by Section 6 which provides that legal can be instituted against the officer, except with the previous sanction of the Central Government.

Supreme Court’s Observations over AFSPA

These extra-judicial killings became the attention of the Supreme Court in 2016.
It clarified that the bar under Section 6 would not grant “total immunity” to the officers against any probe into their alleged excesses.
The judgment noted that if any death was unjustified, there is no blanket immunity available to the perpetrator(s) of the offense.
The Court further noted that if an offense is committed even by Army personnel, there is no concept of absolute immunity from trial by the criminal court constituted under the CrPC.

Constitutionality of AFSPA

Attempts have been made to examine the constitutionality of the Act on the grounds that it is contravention to the:

Right to Life and Personal Liberty (Article 21) and
Federal structure of the Constitution since law and order is a State subject

Recommendations to repeal AFSPA

(1) Justice B.P. Jeevan Reddy Commission

The 2004 Committee headed by Justice B.P. Jeevan Reddy, the content of which has never officially been revealed by the Government, recommended that AFSPA be repealed.
Additionally, it recommended that appropriate provisions be inserted in the Unlawful Activities Prevention Act, 1967 (UAPA) instead.
It also recommended that the UAPA be modified to clearly specify the powers of the armed forces and paramilitary forces and grievance cells should be set up in each district where the armed forces are deployed.

(2) ARC II

The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.
It recommended adding a new chapter to be added to the Unlawful Activities Prevention Act, 1967.
However, the recommendation was considered first and then rejected.

Controversies with AFSPA

(1) Sexual Misconduct by Armed Forces

The issue of violation of human rights by actions of armed forces came under the consideration of the Committee on Amendments to Criminal Law (popularly known as Justice Verma Committee) set up in 2012.
It observed that- in conflict zones, legal protection for women was neglected.

(2) Autocracy

The reality is that there is no evidence of any action being taken against any officer of the armed forces or paramilitary forces for their excesses.

Caution given by the Supreme Court

A July 2016 judgment authored by Justice Madan B. Lokur in Extra Judicial Execution Victim Families Association quoted the “Ten Commandments” issued by the Chief of the Army Staff for operations in disturbed areas:

Definite circumstances: The “power to cause death is relatable to maintenance of public order in a disturbed area and is to be exercised under definite circumstances”.
Declaration preconditions: These preconditions include a declaration by a high-level authority that an area is “disturbed”.
Due warning: The officer concerned decides to use deadly force on the opinion that it is “necessary” to maintain public order. But he has to give “due warning” first.
No arbitrary action: The persons against whom the action was taken by the armed forces should have been “acting in contravention of any law or order for the time being in force in the disturbed area”.
Minimal use of force: The armed forces must use only the “minimal force required for effective action against the person/persons acting in contravention of the prohibitory order.”
Empathy with perpetrators: The court said that: the people you are dealing with are your own countrymen. All your conduct must be dictated by this one significant consideration.
People friendliness: The court underscored how the Commandments insist that “operations must be people-friendly, using minimum force and avoiding collateral damage – restrain must be the key”.
Good intelligence: It added that “good intelligence is the key to success”.
Compassion: It exhorted personnel to “be compassionate, help the people and win their hearts and minds. Employ all resources under your command to improve their living conditions”.
Upholding Dharma (Duty): The judgment ended with the final Commandment to “uphold Dharma and take pride in your country and the Army”.

Conclusion

Despite demands by civil society groups and human rights activities, none of the recommendations have not been implemented to date.

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Corruption Challenges – Lokpal, POCA, etc

What are Swiss Banks?

Prelims Only | Economics | Mains Paper 3: Money-Laundering & Its Prevention

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Swiss Banks

Mains level: Corruption and money laundering

A whistleblower has leaked information on more than $100 billion held in 30,000 accounts of Zurich-headquartered Credit Suisse, one of the world’s most infamous banks which hold black money.

What is the news?

The investigation refocused attention on Swiss banks and their famous, century-old culture of secrecy.
This swiss tradition is under pressure as countries around the world try to get their super-rich to pay legitimate taxes on their wealth.

Swiss Banks: Defined by Secrecy

Since at least the beginning of the 18th century, Geneva had become a favoured destination of French royalty and other European elites seeking discreet havens to stash their wealth.
In 1713, Swiss government authorities announced laws prohibiting bankers from giving out information about their customers.
Thus began a powerful culture of silence and secrecy that went on to become the defining feature of Swiss banking.
In 1934, Switzerland passed the Federal Act on Banks and Savings Banks, commonly known as the Banking Law of 1934 or the Swiss Banking Act.

What’s behind this upmost secrecy?

Article 47 made it a crime to reveal details or information of customers to almost anyone — including the government — without their consent and in the absence of a criminal complaint.
Violators can get five years in prison; Article 47 lies at the heart of some of the most stringent banking secrecy laws anywhere.

Why are they favourite destination to park black money?

As wealth became easily mobile across international borders, the safety and stability of Swiss banks, located in a peaceful country presented an irresistible attraction for the super-rich.
Switzerland itself is a politically neutral country.
Swiss bank accounts are attractive to depositors because they combine low levels of risk with very high levels of privacy.
The Swiss economy is extremely stable, and the banks are run at very high levels of professionalism.
Almost any adult in the world can open an account in a Swiss bank. Opening an account is not difficult, and requires not much more than basic KYC, including a proof of identity such as a passport.

Question of ‘black money’

“Black money” allegedly stashed away by Indians in Swiss banks is a political issue in India, and parties and political functionaries have often made promises to “bring it back”.
Swiss authorities have maintained that they cooperate with the Indian government to fight tax evasion and fraud.

Indian motives and moves

The two countries have had a system of automatic exchange of information in tax matters since 2018.
Under this, detailed financial information on all Indian residents with accounts in Swiss financial institutions was provided for the first time to Indian authorities in September 2019.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Who are the Angadias?

Prelims Only | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Angadias

Mains level: NA

An FIR has been registered against some Mumbai Police officials last week for allegedly threatening Angadias and extorting money from them in south Mumbai.

Who are Angadias?

The Angadia system is a century-old parallel banking system in the country where traders send cash generally from one state to another through a person called Angadia that stands for courier.
It is by and large used in the jewellery business with Mumbai – Surat being the most popular route as they are two ends of the diamond trade.
The cash involved is huge and it is the responsibility of the Angadia to transfer cash from one state to another for which they charge a nominal fee.
Generally, it is the Gujarati, Marwari and Malbari community that are involved in the business.

How does the system work?

The Angadia system works completely on trust as large sums, at times in crores, are involved.
Generally, traders have the same Angadias for decades together.
If a trader from Zaveri Bazaar in south Mumbai wants to pay a diamond trader in Surat, he will send an Angadias who usually delivers the money within 24 hours.
They also have fixed trains that leave from Mumbai at night and reach Gujarat by early morning.
Usually, to verify authenticity, the trader will, for example, will give a Rs 10 note to the Angadia and provide the number of the note to the recipient.
It is only after the recipient confirms the note number that the Angadia will hand over the money to the person.
After making the payment, the Angadias return to Mumbai the same day.

Is the system legal?

While the Angadia system per se is legal, there hangs a cloud over the activity as it is suspected that a lot of times it is used to transfer unaccounted money.
Since the business deals in cash and there is no account maintained for the same, there have been suspicions that it is also used for transfer of black money like the hawala.

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Issues with corporate governance in the context of NSE scam

| Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SEBI

Mains level: Paper 3- Issues with corporate governance in India

Context

Over the past 10 days, the revelations about the functioning of the National Stock Exchange (NSE) during the tenure of Chitra Ramkrishna as Managing Director and Chief Executive Officer (CEO) have raised questions about the governance.

Managerial misconduct at NSE

There was managerial misconduct at NSE.
An effective board of directors: That is why we need checks on management such as an effective board of directors.
After the board was informed about the irregularities in Mr. Subramanian’s appointment, it discussed the matter but chose to keep the discussions out of the minutes on grounds of confidentiality and the sensitivity of the matter.
Second, despite being aware of Ms. Ramkrishna’s transgressions, it allowed her to resign and on generous terms instead of taking action against her.
Third, the Public Interest Directors (PIDs) failed to keep SEBI informed about the goings-on at the NSE.

Issues with corporate governance

In the corporate world, much is forgiven on grounds of performance.
When a performing CEO chooses to unduly favour a particular individual or individuals, boards see that as a forgivable infirmity.
As for dysfunctional or ineffective boards, these remain the norm despite numerous regulations, seminars and papers over the past four decades.
In case of the the NSE, the problem is structural.
Selection and absence of penalty: It has to do partly with the way board members are selected and partly with the absence of penalties where directors do not live up to their mandate.
Board members are selected by top management (or, in India, by the promoter who is also top management).
Board members have every incentive to nod their heads to whatever the management wants to be done.

Way forward

1] Diversity in the selection of board members: As long as the top management selects all board members or can influence their selection, there is little hope of any active challenge to management.
The top management must be allowed to choose not more than 50% of the independent directors.
The rest must be chosen by various other stakeholders — financial institutions, banks, small shareholders, employees, etc.
2] Accountability of board members: A second thing that needs to happen is holding board members accountable for lapses.
Regulators act against directors where there is financial malfeasance.
This must change. Regulators must penalise errant directors through a whole range of instruments — strictures, financial penalties, removal from boards and a permanent ban from board membership.
3] Accountability of regulator: Regulators themselves must be held to account.
In the NSE affair, questions have been asked of SEBI.
For instance, why did SEBI not seek the help of the cyber police to ascertain the identity of the yogi?
SEBI needs to explain itself.

Conclusion

Convulsions of outrage after particular episodes will not take us very far. We need significant institutional reform if corporate governance is not to remain an illusion.

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Foreign Policy Watch- India-Central Asia

India’s Ukraine dilemma

| International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Three Seas Initiative

Mains level: Paper 2- Rethinking India's position on Ukraine crisis

Context

As diplomatic efforts to de-escalate the crisis in Ukraine continue, the time has come for Delhi to devote greater attention to Central Europe, which is at the heart of the contestation between Russia and the West.

Recognising the role of Central Europe in shaping the geopolitics of Europe

Central Europe today has an identity of its own and the political agency to reshape European geopolitics.
It is important to remember that Central Europe is no longer just a piece of territory that Russia and the Western powers can divide into “spheres of influence”.
A grand bargain between Russia and the West will work only if it is acceptable to Central Europe.

Need for diplomatic balancing on Ukraine by India

As war clouds gather over Ukraine, there is much focus on India’s diplomatic balancing act, its unwillingness to publicly caution Russia against invading Ukraine, and above all its reluctance to defend Ukraine’s sovereignty.
This is not the first time that Russia’s approach to Central Europe has put Delhi in a tight corner.
The Soviet invasion of Hungary in 1956, and Czechoslovakia in 1968, exposed an important tension in Indian diplomacy.
In Central Europe, India’s pragmatism in not offending Moscow (an important partner) runs against the utter unacceptability of Putin’s doctrine of “limited sovereignty”, a continuation of the Soviet era policy of saying that the socialist states must subordinate their sovereignty for the sake of the “collective interests of the socialist bloc”.

Factors shaping India’s stand

Tension with China: The prospective Russian invasion of Ukraine comes amidst India’s military tensions with China and Delhi’s continued dependence on Moscow’s military supplies.
It also comes at a time when Delhi is trying to build an international coalition against China’s brazen attacks on the territorial sovereignty of its Asian neighbours.
For the moment, Delhi is in a safe corner by calling for diplomacy in resolving the Ukraine crisis.
But if Russia does invade Ukraine, the pressure on India to rethink its position will mount.
Any such review must eventually lead to an independent appreciation of the geopolitics of Central Europe.

Five factors that must shape India’s perspective on the geopolitics of Central Europe

1] No taker for sphere of influence: Russia’s claim for a broad sphere of influence in the region has no takers in Central Europe.
2]Need for political accommodation: While Russia has legitimate security interests in Central Europe, they can only be realised through political accommodation.
Moscow cannot enforce a sphere of influence against the will of its prospective members.
3] NATO as better option: few Central Europeans buy into the French vision for “European sovereignty” and “strategic autonomy”.
They bet that NATO, led by the US, is a better option than a Europe that is independent of Washington.
They view with even greater distaste the prospects for Russo-German condominium over Central Europe.
4] Resentment against imposition of political value:While they are eager to be part of the Western institutions, Central Europeans resent any attempt by the US and EU to impose political values that run against their traditional cultures.
5] Sub regional institution: Central Europeans are eager to develop sub-regional institutions that can enhance their identity.
The Visegrad Four — Poland, Hungary, Czech Republic, and Slovakia — is one of them.
The so-called “Three Seas Initiative” brings together 12 European states running in a vertical axis from the Baltic Sea in the north to the Adriatic and Black Sea in the south.

Conclusion

Delhi can’t forever view this critical region through the prism of Russia’s conflict with the West. It must come to terms with its growing strategic significance.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

What are CRZ norms?

| Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CRZ

Mains level: Sea level rise and threats to coastal cities

The Brihanmumbai Municipal Corporation (BMC) inspected a bungalow owned by a Union Minister for alleged violation of Coastal Regulation Zone (CRZ) norms.

What is the news?

The Union Minister’s bungalow named has been illicitly constructed within 50 metres of the sea in violation of the CRZ rules.
The crackdown assumes significance in the escalating verbal spats between the two political rivals (which were allies for years).

What are CRZ norms?

In India, the CRZ Rules govern human and industrial activity close to the coastline, in order to protect the fragile ecosystems near the sea.
They restrict certain kinds of activities — like large constructions, setting up of new industries, storage or disposal of hazardous material, mining, reclamation and bunding — within a certain distance from the coastline.
After the passing of the Environment Protection Act in 1986, CRZ Rules were first framed in 1991.
After these were found to be restrictive, the Centre notified new Rules in 2011, which also included exemptions for the construction of the Navi Mumbai airport and for projects of the Department of Atomic Energy.
While the CRZ Rules are made by the Union environment ministry, implementation is to be ensured by state governments through their Coastal Zone Management Authorities.

Where do they apply?

In all Rules, the regulation zone has been defined as the area up to 500 m from the high-tide line.
The restrictions depend on criteria such as the population of the area, the ecological sensitivity, the distance from the shore, and whether the area had been designated as a natural park or wildlife zone.
The latest Rules have a no-development zone of 20 m for all islands close to the mainland coast, and for all backwater islands in the mainland.

New Rules under CRZ regulations

The government notified new CRZ Rules with the stated objectives of promoting sustainable development and conserving coastal environments.
For the so-called CRZ-III (Rural) areas, two separate categories have been stipulated.
In the densely populated rural areas (CRZ-IIIA) with a population density of 2,161 per sq km as per the 2011 Census, the no-development zone is now 50 m from the high-tide level, as against the 200 m stipulated earlier.
In the CRZ-IIIB category (rural areas with population density below 2,161 per sq km) continue to have a no-development zone extending up to 200 m from the high-tide line.
The new Rules have a no-development zone of 20 m for all islands close to the mainland coast, and for all backwater islands in the mainland.

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