💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Archives: News

  • Scrapping Tax Benefit for Debt Mutual Funds: Analysis

    Central Idea

    • The Finance Bill 2023, passed by the Lok Sabha with 64 amendments, includes the controversial decision to remove the tax benefit for debt mutual funds. While the aim is to remove the advantage of debt funds over bank deposits, this decision will have far-reaching consequences that need to be examined.

    Mutual Funds

    • Investment decisions on behalf of the investors: Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors in the fund.
    • Diversified portfolio of securities: Investors in a mutual fund own a proportional share of the fund’s underlying assets, and the value of their investment rises or falls in response to changes in the value of the securities held by the fund. Mutual funds can provide investors with access to a diversified portfolio of securities, which can help to mitigate the risk of investing in individual securities.

    Key differences between Mutual funds and debt mutual funds

    • Mutual funds and debt mutual funds are both types of investment funds, but there are some key differences between them
    Comparison Mutual Funds Debt Mutual Funds
    Types of Investments Stocks, bonds, commodities, and other asset classes Fixed-income securities such as bonds, debentures, treasury bills, and commercial papers
    Risk Generally higher risk due to the inclusion of stocks and other volatile assets Generally lower risk due to the focus on fixed-income securities
    Returns Potentially higher returns over the long term, but subject to more volatility Lower returns compared to equity mutual funds, but also come with lower risk
    Investment Objective Can vary widely depending on the type of fund Provide regular income to investors while preserving capital
    Liquidity Can be less liquid than debt mutual funds due to volatility in underlying securities Generally considered more liquid due to less volatility in underlying securities

    The Debate Over Scrapping Tax Benefit for Debt Mutual Funds

    • Removal of the tax benefit for debt mutual funds: The Finance Bill 2023 passed by voice vote in the Lok Sabha last week with 64 amendments, including the removal of the tax benefit for debt mutual funds.
    • What it means: This change means that investors in debt mutual funds cannot avail the benefit of indexation for the calculation of long-term capital gains. From April 1, such investments will now be taxed at income tax rates applicable to an individual’s tax slab.
    • Motive: This move aims to remove the advantage that such debt funds have over bank deposits. However, the consequences of this decision need to be carefully examined.

    The Impact of Removing Tax Benefit

    • Impact on flow of funds: The removal of the tax benefit will lead to investors reassessing their allocations to debt mutual funds, which may impact flows into these funds.
    • Impact on bond market: This, in turn, may impact the growth and development of the bond market in India since debt mutual funds channel funds into the bond market.
    • For instance: According to a report by Crisil, 70% of the investment in debt funds flows from institutional investors, while individual investors, including high net worth individuals, accounted for 27% as of December 2022.
    • Impact on corporate debt: This change in rule may trigger a shift in investments away from debt mutual funds to other instruments, which will possibly affect flows to the corporate bond market, and demand for corporate debt is likely to be impacted.

    The Need for Rationalization

    • There is a need to acknowledge the finer points of differentiation between bank deposits and debt funds since bank deposits are insured up to Rs 5 lakh while debt mutual funds carry risk depending on the risk profile of the bonds they hold.
    • It has been argued that the capital gains architecture in India needs to be reexamined and reconfigured.
    • Not only are there different rates of taxation for different asset classes, but even the holding period for differentiating between short- and long-term capital gains varies across assets. Thus, rationalisation with regard to the tax rate and/or the holding period is desirable.

    Conclusion

    • While the removal of the tax benefit for debt mutual funds may remove the advantage of such funds over bank deposits, its far-reaching consequences need to be carefully examined. There is a need to acknowledge the finer points of differentiation between bank deposits and debt funds, as well as rationalisation of the tax architecture in India. Therefore, there is a need for broader discussions and debates on these issues.
    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • Blue Economy: India’s G20 Presidency Offers An Opportunity

    Blue Economy

    Central Idea

    • The potential of the oceans for the sustainable development of the blue economy is immense and the initiatives taken by the Government of India towards achieving it demonstrate India’s commitment to building a sustainable future for its marine resources and the global community. India’s G20 presidency provides an opportunity to promote collective action for the transition.

    What is Blue Economy?

    • Blue Economy is defined by the World Bank as the Sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ecosystem.
    • Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
    • The UN first introduced “blue economy” at a conference in 2012 and underlined sustainable management, based on the argument that marine ecosystems are more productive when they are healthy. In fact, the UN notes that the Blue Economy is exactly what is needed to implement SDG 14, Life Below Water.
    • The term ‘blue economy’ includes not only ocean-dependent economic development but also inclusive social development and environmental and ecological security.

    The Potential of the Oceans

    • The oceans offer vast opportunities for the prosperity of our planet, with 45% of the world’s coastlines and over 21% of the exclusive economic zones located in G20 countries.
    • They are reservoirs of global biodiversity, critical regulators of the global weather and climate, and support the economic well-being of billions of people in coastal areas.

    Facts for prelims: Government Initiatives

    • The Government of India has launched several initiatives to promote the development of a blue economy, such as
    Initiative Description
    Sagarmala initiative A program launched in 2015 to promote port-led development and boost the country’s maritime sector. It aims to modernize ports, improve connectivity and logistics, and promote coastal community development.
    Shipbuilding Financial Assistance Policy A policy introduced in 2016 to provide financial assistance to Indian shipyards for the construction of ships. It aims to boost domestic shipbuilding and make Indian shipyards globally competitive.
    Pradhan Mantri Matsya Sampada Yojana A scheme launched in 2020 to boost the fisheries sector in India. It aims to increase fish production, modernize fishing infrastructure, and create employment opportunities in the sector.
    Sagar Manthan dashboard An online dashboard launched in 2018 to track the progress of the Sagarmala initiative. It provides real-time information on project implementation, fund utilization, and other related metrics.
    Deep Ocean Mission A program launched in 2021 to explore the deep sea and harness its resources for national benefit. It aims to explore the deep sea, map its resources, develop technologies for deep-sea mining, and promote ocean conservation.
    Coastal Regulation Zone notification A regulation introduced in 2019 to manage development activities along India’s coastline. It aims to balance the economic development of coastal areas with the conservation of coastal ecosystems and livelihoods of coastal communities.
    • The government has also taken steps to eliminate single-use plastic and combat plastic pollution, including in the marine environment.

    India’s G20 Presidency and the Blue Economy

    • Key priority: India’s G20 presidency has prioritized the blue economy as a key area under the Environment and Climate Sustainability Working Group.
    • Promote sustainable and equitable development: The aim is to promote the adoption of high-level principles for sustainable and equitable economic development through the ocean and its resources while addressing climate change and other environmental challenges.
    • A guide for future G20 presidencies: India’s commitment to prioritizing oceans and the blue economy under its presidency would ensure continued discussions on this crucial subject and pave the way for future G20 presidencies.
    • Communication and collaboration: Effective and efficient ocean and blue economy governance presents a significant challenge, and India’s G20 presidency can build an effective communication with all stakeholders to share best practices, foster collaborations for advancements in science and technology, promote public-private partnerships, and create novel blue finance mechanisms.

    Challenges and Responsibility

    • Ambitious efforts by countries to expand their blue economies are threatened by intensifying extreme weather events, ocean acidification, and sea-level rise.
    • Marine pollution, over-extraction of resources, and unplanned urbanization also pose significant threats to the ocean, coastal and marine ecosystems, and biodiversity.
    • The inherent inter-connectedness of oceans implies that activities occurring in one part of the world could have ripple effects across the globe.
    • Therefore, the responsibility of their protection, conservation, and sustainable utilization lies with all nations.

    Conclusion

    • India’s G20 presidency offers an opportunity to promote individual and collective actions towards a sustainable blue economy. The stewardship of oceans is an investment that will sustain future generations, and the global community must unite for the well-being of our ocean commons.
    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • What is Bilkis Bano Case?

    bilkis bano

    The Supreme Court has indicated it will primarily focus on the question of Gujarat’s jurisdiction to prematurely release 11 men sentenced to life for the gang rape of Bilkis Bano and the murder of her family during the 2002 riots.

    Central idea

    • The Bilkis Bano case is a landmark case of gangrape and mass murder that occurred during the 2002 Gujarat riots in India.
    • Bilkis Bano, then a 21-year-old pregnant woman, was raped and her family members were murdered during the riots that followed the Godhra train burning incident.
    • The case was initially left unnoticed, but after persistent efforts by Bano and her supporters, the case was reopened and the perpetrators were brought to justice.

    Initial investigation and cover-up

    • No proper investigation: Despite the gravity of the crime, the initial investigation was not conducted properly.
    • Evidence tampered: The medical examination of Bano was conducted after several days, by which time crucial evidence had been lost.
    • No FIR registered: The police refused to file a First Information Report (FIR) initially, and when they did, they left out crucial details of the incident.

    Reopening of the case

    • Bano and her supporters continued to fight for justice, and in 2004, the case was transferred to the Central Bureau of Investigation (CBI) on the order of the Supreme Court.
    • The CBI conducted a thorough investigation and filed a charge sheet against 19 accused persons, including police officers and doctors who had tried to cover up the crime.
    • In 2008, the trial began in a Mumbai court.

    Conviction and sentencing

    • In 2017, after a long legal battle, a Mumbai court convicted 11 accused persons, including one police officer, for gang rape and murders.
    • The police officer, who was the main accused, was sentenced to life imprisonment, while the others were given seven years’ imprisonment.
    • The court also acquitted seven other accused persons due to lack of evidence.

    Key issue: Release of convicts

    • In February 2021, the Bombay High Court acquitted five of the convicted persons, citing lack of evidence.
    • The court also upheld the life imprisonment of the police officer and reduced the sentence of the other convicts to three years.
    • The convicts were released from prison after serving their sentence.

    What are the laws on remissions?

    • Prisoners are often granted remission of sentences and released on important occasions such as birth and death anniversaries of prominent leaders.
    • The President and the Governors have the power to pardon, suspend, remit, or commute a sentence passed by the courts under Articles 72 and 161 of the Constitution.
    • Under Section 432 of the Code of Criminal Procedure (CrPC), the state governments also have the power to remit sentences as prisons are a state subject.
    • However, the powers of remission of the state government are restricted by Section 433A of the CrPC.
    • It mandates a person serving a life imprisonment sentence for an offence where death is a punishment or where a death sentence has been commuted, cannot be released until they have served at least 14 years in prison.

    Critical reception of the judgement

    • Justice vindicated: Bano and her family members expressed disappointment with the decision of the court to acquit some of the convicts, and they plan to challenge the verdict in the Supreme Court.
    • Communal angle to the release: Bano has been a symbol of courage and determination for survivors of sexual violence in India, and her case has highlighted the need for justice and accountability for crimes committed during communal riots.

    Significance of the case

    • The Bilkis Bano case is significant as it highlights the issue of communal violence in India and the failure of the authorities to provide justice to the victims.
    • The case also underscores the need for the protection of the rights of women and minorities in India.
    • The long legal battle fought by Bano and her supporters shows that justice is possible, but it requires persistence, courage and the support of civil society.

     

     

  • India’s Support for Marine Protected Areas in Antarctica

    marine

    Central idea: India has pledged its continued support for the establishment of two Marine Protected Areas (MPAs) in Antarctica, with the aim of protecting marine life and the ecosystem services that it provides.

    What are Marine Protected Areas?

    • An MPA is a defined region that is managed for the long-term conservation of marine resources, ecosystem services, or cultural heritage.
    • They can be established in national and international waters to preserve the biodiversity of the marine environment.

    Criteria used for MPAs declaration

    The International Union for Conservation of Nature (IUCN) has developed a set of criteria for the identification and management of marine protected areas (MPAs). These criteria include:

    • Representativeness: MPAs should include a range of habitats, ecosystems, and species that are representative of the region.
    • Biological diversity: MPAs should conserve a wide range of biodiversity, including species, habitats, and genetic diversity.
    • Rarity: MPAs should protect rare, unique, or endemic species or habitats.
    • Productivity: MPAs should conserve areas of high productivity, such as spawning and nursery grounds.
    • Resilience: MPAs should protect ecosystems that are able to withstand disturbances and recover from damage.
    • Ecological processes: MPAs should conserve important ecological processes, such as nutrient cycling and migration patterns.
    • Connectivity: MPAs should be connected to other protected areas to allow for the movement of species and genetic material.
    • Cultural and social importance: MPAs should consider the cultural and social importance of the area to local communities.

    MPA in focus: Southern Ocean

    • The Southern Ocean, which encircles Antarctica, covers around 10 per cent of the global ocean and is home to nearly 10,000 unique polar species.
    • The ecosystem is an important source of marine resources, including fish and krill, which support commercial fisheries and provide a food source for larger animals.

    Threats to the Southern Ocean and its marine life

    marine

    • Climate change is affecting the Southern Ocean, altering habitats such as sea ice and the sheltered seafloor under ice shelves that are home to a variety of species.
    • Commercial fishing, particularly for krill (shrimp-like crustacean), is also threatening the ecosystem.

    Need for an MPA in Antarctica

    • The Southern Ocean needs protection to prevent the further impact of climate change and commercial exploitation.
    • A new MPA would help limit human activities, including fishing, mining, and drilling, and help conserve the region’s marine resources and unique biodiversity.

    Existing MPAs in the Southern Ocean

    • The Southern Ocean currently has two MPAs:
    1. In the southern shelf of the South Orkney Islands and
    2. In the Ross Sea
    • These MPAs protect only 5 percent of the ocean, with all types of fishing, other than scientific research, prohibited within the southern shelf of the South Orkney Islands MPA.

    Resistance to proposed MPAs  

    • Proposals to establish MPAs in East Antarctica, the Weddell Sea, and the waters surrounding the Antarctic Peninsula have been met with resistance by China and Russia.
    • The two countries have a different view than the rest of the members of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR), which is an intergovernmental body set up in 1982 to conserve Antarctic marine life.

    India’s interest in the commercial exploitation of krill

    • India has expressed interest in commercial exploitation of krill in the region.
    • However, increased harvesting of krill threatens animals that feed on them, including fish, whales, seals, penguins, and other seabirds.

    Contribution of proposed MPAs to the United Nations 30×30 Framework

    • If the proposed MPAs take form in Antarctica, they will contribute to the United Nations 30×30 Framework, which aims to protect 30 percent of the world’s land and sea.
    • This agreement was reached at the 15th Conference of Parties to the Convention on Biological Diversity in 2022.

    Conclusion

    • Most countries have agreed in principle to establish MPAs in Antarctica, and it is expected to be discussed further at the next Antarctic Treaty Consultative Meeting.
    • The establishment of MPAs in Antarctica is crucial to preserving the region’s marine resources and unique biodiversity, and for contributing to the global

     

     

     

  • Mahila Samman Savings Certificate operationalized

    Finance Minister while presenting the Budget 2023 announced a new scheme for women, Mahila Samman Saving Certificate. This scheme has now been operationalized.

    Mahila Samman Saving Certificate

    • It is a one-time new small savings scheme of the government of India announced in the Budget 2023.
    • It will be made available for a two-year period up to March 2025.
    • This will offer deposit facility upto Rs 2 lakh in the name of women or girls for a tenure of 2 years.
    • The deposit facility will offer fixed interest rate of 7.5 per cent with a partial withdrawal option.

    Benefits offered

    • It is a suitable alternative to fixed deposits (FDs) invested in the name of a woman for the short term.
    • The returns are higher than bank FDs and partial withdrawal makes liquidity less of a concern.

    Other details

    • The Scheme will be rolled out through banks and post offices across the country.
    • The taxation structure is yet to be known and the scheme is expected to be available from April 1, 2023.

    How is it different from Sukanya Samriddhi Yojana?

    • SSY is a small deposit scheme of the government of India meant exclusively for a girl child. The scheme is meant to meet the education and marriage expenses of a girl child.
    • The current rate of interest offered by Sukanya Samriddhi Yojana is 7.6%, which is compounded annually.
    • Account can be opened in the name of a girl child till she attains the age of 10 years.
    • The total amount deposited in an account shall not exceed Rs 1,50,000 in a financial year.
    • Sukanya Samriddhi scheme has tax benefits under Section 80C.
    • The account matures after 21 years from the date of opening or on marriage of the girl child under whose name the account is opened, whichever is earlier.

     

     

  • Healthcare: Public Health and The Insurance Funding

    Central Idea

    • The Tamil Nadu public health model has achieved success in improving healthcare outcomes and maintaining equity in healthcare delivery. However, the shift in healthcare funding to insurance companies has brought both benefits and drawbacks to the public healthcare system.

    The key features of the Tamil Nadu public health model

    • Primary Healthcare: The Tamil Nadu public health model is based on a strong emphasis on primary healthcare, which is the first point of contact for patients seeking medical attention. Primary healthcare centres provide basic healthcare services and preventive care, which are critical to reducing the burden of disease.
    • Public Health Infrastructure: The state has a well-established public health infrastructure, including a network of primary healthcare centres, secondary and tertiary care hospitals, and medical colleges. The state government has also invested in health infrastructure, including sanitation facilities, water supply, and waste management.
    • Health Insurance: The Tamil Nadu government has implemented a comprehensive health insurance scheme, the Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS), which provides free healthcare services to families living below the poverty line and low-income groups.
    • Human Resource Development: The state government has also focused on developing human resources in healthcare. It has set up a large number of nursing and paramedical institutions to train healthcare professionals.
    • Health Awareness: The Tamil Nadu government has launched various health awareness campaigns to educate people about health issues, including communicable and non-communicable diseases. The government has also launched campaigns to promote healthy lifestyle choices, such as a balanced diet and regular exercise.
    • Partnership with NGOs: The government has partnered with non-governmental organizations (NGOs) to implement various health programs. These partnerships have helped in the effective delivery of healthcare services in remote and rural areas of the state.
    • Innovations: Tamil Nadu has implemented several innovative approaches in healthcare, such as telemedicine, which enables patients to receive medical consultation and treatment remotely using technology. The state has also established mobile clinics to provide healthcare services to people living in remote areas.

    Benefits of Decentralization

    • Improved access to healthcare: Decentralization can help to improve access to healthcare services, particularly in rural or remote areas. By empowering local communities and healthcare providers to make decisions about healthcare delivery, services can be tailored to meet the specific needs of the population.
    • Better quality of care: Decentralization can lead to better quality of care by enabling healthcare providers to respond more quickly and effectively to the needs of their patients. It can also promote innovation and experimentation in healthcare delivery, leading to new and improved approaches to patient care.
    • Increased accountability: Decentralization can increase accountability in healthcare delivery by empowering local communities and healthcare providers to monitor and evaluate the quality of care. This can help to identify and address problems in healthcare delivery, leading to improved outcomes for patients.
    • Cost savings: Decentralization can lead to cost savings in healthcare delivery by reducing the administrative costs associated with centralized decision-making and management. It can also promote greater efficiency in healthcare delivery, leading to reduced waste and duplication of services.

    Insurance Funding in healthcare

    • Insurance funding in healthcare refers to the use of insurance mechanisms to finance healthcare services. This involves pooling financial resources from individuals or groups through insurance schemes, which are then used to pay for healthcare services.
    • Insurance funding can help to mitigate the financial risks associated with healthcare, and ensure that individuals have access to the care they need without incurring excessive costs.

    Drawbacks of Insurance Funding

    • Shifted focus: The focus on indemnity and negotiations with insurance companies has shifted the focus of hospitals from patient care to claiming money.
    • Compromised quality of service: The appointment of contractual employees with meager pay has created a divide between permanent high-paid staff and temporary low-salaried staff, leading to a compromise in the quality of service.

    Facts for prelims

    Type of Insurance Funding Description
    Private health insurance Purchased by individuals or employers to cover healthcare costs. Coverage, cost, and benefits vary widely and may be offered by commercial insurers, nonprofit organizations, or government programs
    Public health insurance Provided by government-run programs, typically funded through taxes or other government revenues. Coverage is provided to eligible individuals based on criteria such as age, income, or medical need. Pradhan Mantri Jan Arogya Yojana (PMJAY) is a government-funded health insurance program that provides free health coverage to economically disadvantaged families across India.
    Social health insurance A hybrid model that combines elements of private and public insurance. Individuals and employers contribute to a national insurance fund that is used to pay for healthcare services, typically managed by a government agency but delivered by private providers
    Employer-sponsored insurance Private insurance provided by employers to their employees, often mandatory in many countries. Employers are required to provide a certain level of coverage to their employees.

    Conclusion

    • While insurance funding has brought benefits, it has also created challenges, including the erosion of compassion among health professionals and a diversion of funds from public to private hospitals. It is necessary to strike a balance between decentralization, insurance funding, and preserving the fundamental principles of equity, compassion, and excellence in care to maintain the success of Tamil Nadu’s public healthcare system.

    Mains Question

    Q. Highlight the benefits of decentralization in healthcare delivery. Analyse the benefits and drawbacks of insurance funding in India?

    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • Climate Change: Mission Adaptation A Comprehensive Measure

    Central Idea

    • The budget for 2023-24 in India includes some measures towards climate change mitigation, but adaptation has not been given adequate attention. The government needs to adopt a Mission Adaptation to create a supportive ecosystem for all entities to come together and work towards developing locally-sound adaptation solutions.

    Climate Change Mitigation Measures

    • Allocation for green transition: The budget for 2023-24 in India has allocated funds towards climate change mitigation, with a focus on green growth initiatives targeted at reducing the carbon intensity of the economy such as green mobility, energy efficiency, and the green hydrogen mission announcement.
    • Promoting nature based initiatives: Nature-based solutions such as the mangrove plantation initiative and the community-based wetland conservation scheme also promise to have potentially positive impacts in mitigating climate change.

    Lack of Attention to Climate Change Adaptation

    • Climate change is addressed indirectly: While climate change mitigation has received attention in the budget, climate change adaptation has been addressed only indirectly.
    • No measures towards enhancing resilience: The budget does not include measures towards enhancing the resilience of communities and habitations to climate change’s impact, despite India’s high vulnerability to climate change.
    • For instance: Measures to account for climate change-induced risks, such as the recent example of Joshimath, do not find explicit mention in the budget.

    Funding for Adaptation

    • Adaptation has traditionally received far less attention than mitigation in the global climate discourse, resulting in lower funding for adaptation.
    • In India, the ratio of funding for climate adaptation to mitigation stands at 1:10. While funding for mitigation is also underfunded, with only 25% of the requirement met, the gap for adaptation stands much higher, at only 7.9% of the needed funds.

    Challenges in Funding Adaptation

    • Adapting to climate change often requires highly local and nature-based solutions that do not have a classically-measured ROI. Consequently, mainstream, interest-seeking capital flowing into adaptation is scant.
    • Climate adaptation has largely remained a publicly-funded endeavor in India, with nearly 100% of the funding for adaptation coming from public sources. International funding has also remained scarce due to the skewed discourse on climate change.

    The Need for a Strategic Investment

    • Climate shocks are anticipated to get more frequent and severe, and in the absence of resilience-building for communities and habitations, the impact could be devastating.
    • The public sector must view resilience building as a strategic priority and actively address this matter.
    • Climate adaptation must come to be seen as a strategic investment by the public sector, which it must make in order to climate-proof lives, livelihoods, the environment, and the economy.

    Mission Adaptation

    • Mission Adaptation is a term used in the context of climate change and refers to the need for a strategic, proactive approach to building adaptive capacity in order to climate-proof lives, livelihoods, the environment and the economy.
    • It is a proposed initiative for creating a supportive ecosystem for all entities, including the private sector, non-profits, and civil society, to come together and work towards developing and scaling up locally-sound adaptation solutions in India.
    • The idea is to view climate adaptation as a strategic investment by the public sector and to bridge complex challenges faced by society today using the idea of public purpose to guide policy and business activity.

    Conclusion

    • Given the increasing frequency at which climate-related stress is occurring and is expected to occur, the public sector will remain a crucial contributor to funding for climate adaptation. The government must work towards developing a more systemic understanding of resilience and support efforts aimed at building such an understanding across the ecosystem to make Mission Adaptation a reality.
    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • Internet Shutdowns in India: A Growing Concern

    Central Idea

    • Earlier this month, the Punjab government suspended mobile internet and SMS services for more than four days as it launched an operation to arrest a pro-Khalistani preacher. This is not an isolated incident in India, with the country recording the highest number of internet shutdowns in the world.

    Internet shutdowns in the world

    • India has recorded the highest number of internet shutdowns in the world.
    • Such shutdowns are never or almost never implemented in most parts of Europe, North and South America, and Oceania, while they are rampant in Africa and Asia.

    State-wise Instances of Internet Shutdowns

    • Punjab: The Software Freedom Law Center has recorded eight such shutdowns in Punjab alone.
    • Southern states: Southern states, on the other hand, have only recorded six such shutdowns in the same period, with no instance of internet shutdown in Kerala.
    • Northern states: Jammu and Kashmir, Rajasthan, and Uttar Pradesh have recorded the highest number of internet shutdowns in India.

    Absence of Centralised Data

    • Absence of data: The Central government does not collate data on internet shutdowns imposed by state governments, which was strongly recommended by the Standing Committee on Communications and Information Technology.
    • Standing Committee on Communications and Information Technology: The Committee came down heavily on the use of internet shutdowns as a substitute for enforcing law and order and wanted the reasons, duration, decision of the competent authority and of the review committees to be noted for every internet shutdown, and for the information to be made public.

    Need for Internet Shutdowns

    • Civil unrest: Internet serves as a medium for the transmission of information through pictures, videos and text that have the potential to cause civil unrest and exacerbate the law and order.
    • Fake news: Shutdowns in order to block the flow of information about government actions or to end communication among activists and prevent the spread of rumors and fake news.
    • Rumors: Shutdown helps prevent the “spreading of rumors and misinformation using social media platforms which can hinder peace and law and order”.
    • Preventive Response: Cutting off the Internet is both an early and preventive response to block restive groups to organize riots against the Government.
    • National Interest: The Internet cannot be independent of national sovereignty. Therefore, the necessary regulation of the internet is a reasonable choice of sovereign countries based on national interests.

    Costs of Internet Shutdowns

    • Education: Shutdowns also impact education, as students and teachers are unable to access online learning materials and tools. This can lead to a disruption of education and a negative impact on academic performance.
    • For instance: A UN report noted that in Kashmir, long-standing restrictions on connectivity undermined the education of students relying on remote education,
    • Economy: Businesses that rely on the internet to operate may suffer significant financial losses during shutdowns. This is particularly true for online retailers, e-commerce platforms, and other digital service providers.
    • For instance: A 2018 paper estimated that India lost around $3 billion between 2012 and 2017 due to shutdowns.
    • Health: The internet plays a critical role in disseminating health information and enabling telemedicine. Shutdowns can make it difficult for people to access vital health information or receive medical care.
    • Communication: Internet shutdowns severely limit people’s ability to communicate with one another, both within the affected region and with the rest of the world. This can make it difficult to coordinate protests or other forms of social and political activism, as well as to stay in touch with friends and family members.
    • Human rights: Internet shutdowns violate people’s human rights, including freedom of expression and access to information. They can also hinder the ability of journalists and activists to report on human rights abuses.
    • Politics: Shutdowns can be used to suppress political opposition and prevent dissent. This is particularly true during elections or times of political unrest, where the government may seek to limit the spread of information that could be used against them.

    Mains Question

    Q. What are the reasons behind the high number of internet shutdowns in India also discuss socio economic impact of such shutdowns.

    Conclusion

    • Internet shutdowns in India are a growing concern, with a significant impact on education, healthcare, and the economy. However, the government has no mechanism to assess the socioeconomic impact of internet shutdowns. It is also important to consider the principle of proportionality and the socioeconomic impact of such shutdowns while enforcing law and order.
    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • Disqualification of a MP: Constitutional and Legal Issues

    Central Idea

    • The recent conviction and disqualification of Congress leader Rahul Gandhi have raised some important constitutional and legal issues, especially related to the disqualification of members of the legislature. The interpretation of Section 8 of the Representation of the People Act, 1951, and the role of the President in cases of disqualification is resurfaced again.

    Background of the case

    • The Congress leader during campaigning for the 2019 parliamentary polls had made a remark, “How come all the thieves have Modi as the common surname?”
    • On the basis of this remark, a criminal defamation case was filed against him in a surat court by a BJP MLA who had alleged that the congress leader while addressing a poll rally in 2019 in Karnataka defamed the entire Modi community with his remark.
    • The Surat court on Thursday convicted the Congress leader in a criminal defamation case and awarded him a two-year jail term.
    • On basis of this, the Congress leader has been disqualified from the Lok Sabha,. A notice issued by the Lok Sabha Secretariat said that he stood disqualified from the House from March 23, the day of his conviction.

    Disqualification under the Representation of the People Act (RPA), 1951

    • Grounds of disqualification: Section 8 of the RPA, 1951 specifies the various offenses, conviction for which entail the disqualification of a member of the legislature.
    • Clause (3): Clause (3) of this section says that a person convicted of any offense other than those mentioned in the other two clauses, and sentenced to not less than two years shall be disqualified from the date of conviction.
    • Exemption under clause (4): The clause (4) has exempted sitting members from instant disqualification for three months to enable them to appeal against the conviction.

    Role of the President in Disqualification

    • President has the authority: Article 103 of the Indian Constitution provides the President of India as the authority who decides that a sitting member has become subject to disqualification in all cases which come under Article 102(1).
    • President’s adjudicatory and declaratory functions: There are differences of opinion on the scope of Article 103, but the Supreme Court, in Consumer Education and Research Society vs Union of India (2009), upholds the position that the President performs adjudicatory and declaratory functions here.

    Flaws in the Judgment in Lily Thomas Case

    • Parliament cannot enact a temporary exemption: It says that Parliament cannot enact a temporary exemption in favor of sitting members of the Legislature.
    • Article 103 provides an exception: But Article 103 itself provides an exception in the case of sitting Members by stating that the disqualification of sitting Members shall be decided by the President.
    • Distinction between the candidates and sitting Members: The Constitution itself makes a distinction between the candidates and sitting Members. This was ignored by the judgment and the Court struck down the three months window given to the sitting members to enable them to appeal against their conviction.

    Defamation in India

    • What is Defamation: Defamation refers to the act of publication of defamatory content that lowers the reputation of an individual or an entity when observed through the perspective of an ordinary man. Defamation in India is both a civil and a criminal offence.
    • The Laws which Deal with Defamation: Sections 499 and 500 of IPC: Sections 499 and 500 in the IPC deal with criminal defamation. While the former defines the offence of defamation, the latter defines the punishment for it.

    Facts for prelims: Lily Thomas Verdict

    • The Lily Thomas verdict was a landmark judgment delivered by the Supreme Court of India in 2013.
    • The verdict struck down a provision in the Representation of the People Act (RPA), which allowed convicted lawmakers to continue in office if they filed an appeal within three months of their conviction.
    • The provision, which was part of Section 8(4) of the RPA, had been criticized for allowing convicted politicians to continue to hold public office while their appeals were pending in higher courts, and for contributing to the criminalization of politics in India.
    • The verdict was seen as a major step towards cleaning up Indian politics and ensuring that convicted criminals do not get to occupy public offices.

    Conclusion

    • The recent conviction and disqualification of Congress leader Rahul Gandhi have raised important constitutional and legal issues related to the disqualification of members of the legislature. While the issues relating to the disqualification of Rahul Gandhi will be dealt with by the appellate courts, the legal and constitutional issues raised by this case need to be examined carefully
    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left

     

  • Understanding IMF Bailouts and their drawbacks

    imf

    Central idea: The International Monetary Fund (IMF) last week confirmed a $3 billion bailout plan for Sri Lanka’s struggling economy. However, Pakistan failed to get a penny. Countries seek help from the IMF usually when their economies face a major macroeconomic risk, mostly in the form of a currency crisis.

    International Monetary Fund (IMF)

    • IMF is an international organization that provides loans, technical assistance, and policy advice to its member countries.
    • It was established in 1944 with the goal of promoting international monetary cooperation and exchange rate stability, facilitating balanced economic growth, and reducing poverty around the world.
    • It has 190 member countries, and its headquarters is located in Washington, D.C.
    • Its main function is to provide financial assistance to countries facing economic difficulties, such as the balance of payments problems, currency crises, and high levels of debt.
    • It also provides technical assistance and policy advice to help countries improve their economic policies and institutions, and to promote economic stability and growth.

    Governing of IMF

    • The IMF is governed by its Board of Governors, which consists of one governor and one alternate governor from each member country.
    • The day-to-day operations of the IMF are managed by its Executive Board, which is responsible for making decisions on financial assistance and policy advice.

     

    What is an IMF Bailout?

    • An IMF bailout, also known as an IMF program, is a loan package provided by the International Monetary Fund (IMF) to financially troubled countries.
    • These loan packages come with specific terms and conditions that the borrowing country must meet to access the funds.
    • They typically have a set of conditions that a country must meet to qualify for the loan package.
    • These conditions, also known as “conditionalities,” typically include measures that promote fiscal discipline, monetary stability, and structural reforms to improve the country’s economic competitiveness.

    IMF programs are often seen as a last resort for countries facing financial crises, and they are only granted if a country cannot access capital markets on its own. IMF programs can be classified into three main types:

    1. Stand-by Arrangements: They are short-term lending programs designed to provide financial assistance to countries experiencing short-term balance of payments problems. These programs typically last for one to two years and require countries to implement specific macroeconomic policies to stabilize their economies.
    2. Extended Fund Facility: Such programs are medium-term lending programs designed to help countries with balance of payments difficulties resulting from structural weaknesses. These programs are typically longer-term and come with more extensive policy conditionality, which requires more significant structural reforms to the country’s economy.
    3. Rapid Financing Instrument: It is a loan program designed to provide quick financing to countries facing an urgent balance of payments need. The program is designed to be more flexible than other IMF programs, with fewer conditions and a shorter application process.

    Why do countries seek IMF bailouts?

    • Countries need IMF bailout when their economies face major macroeconomic risks, such as a currency crisis, due to gross mismanagement of the nation’s currency by the central bank under the covert influence of the ruling government.
    • Such currency crises cause a rapid rise in the overall money supply, which causes prices to rise across the economy and the exchange value of the currency to drop.
    • Bad luck such as a decrease in foreign tourists can also contribute to a crisis in a country like Sri Lanka.

    Benefits provided by IMF bailout:

    IMF programs provide several benefits to countries in financial distress. For instance:

    • Access to funding: An IMF bailout provides immediate funding to a country experiencing a financial crisis, allowing it to meet its immediate financial obligations.
    • Credibility push: A bailout can provide credibility to a country’s economic policies, signalling to international investors that the country is taking the necessary steps to restore its economy.
    • Assistance with structural reforms: IMF programs require countries to implement structural reforms that can help address the underlying problems that led to the financial crisis, improving the country’s long-term economic prospects.

    Limitations of an IMF bailout

    • Harsh austerity measures: IMF programs often require countries to implement strict economic policies, which can be unpopular and difficult to implement.
    • Limited resources: The IMF has limited resources, which can limit the amount of assistance it can provide to countries in need.
    • Stigmatization: Bailout can stigmatize a country in the eyes of international investors, signaling that the country is unable to manage its own economy without outside assistance.

    Try this PYQ from CSP 2022

    “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?

    (a) Asian Development Bank

    (b) International Monetary Fund

    (c) United National Environment Programme Finance Initiative

    (d) Word Bank

     

    [wpdiscuz-feedback id=”0bg8oemwws” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

    Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test

    Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left