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  • 29th June 2020 | Prelims Daily with Previous Year Questions

    [WpProQuiz 469]

    [WpProQuiz_toplist 468]

  • Reimagining South Asian boundaries

    State-centric politics is the issue that plagues the regional cooperation in the region. But the consequences for the lives, livelihoods and the well-being of the people located at the edges of nation-states are overlooked. This issue is discussed in this article.

    State plays central role in disputes

    • One of the major problems of South Asian politics is that it has to flow from within a state-centric paradigm.
    • This state-centrism has given the state structure the propriety to be the sole arbiter of disputes.
    • It is the state that articulates, defines, and represents “national” interests in negotiations with other states.
    • States in South Asia places importance on political boundaries as the “natural” shield even in the arbitration of South Asian affairs.
    • This approach happens to be the dominant South Asian pattern.
    • In this approach territorial boundaries are valued more than lives, livelihoods and the well-being of the people located at the edges of nation states.
    • “Patriotism” looms large as and when inter-state relationships are viewed through the statist lens.
    •  Hostility, real or imagined, is used as the governing principle in the arbitration of territorial disputes across South Asia.

    Lack of regional identity

    • Basically, the term “region” seems to be a contested idea in a South Asian context.
    • This is because none of the South Asian states has ever recognised and respected the idea of regional identity or regional politics.
    • They have been wary of such natural division in politics.
    • Given that this is a reality, how could one even think of South Asia as a region to reckon with?

    South Asia as region of regions

    • One must understand that South Asia is perhaps the most natural regional grouping of states around the world.
    • And, at the same time, it is also the most difficult and contested grouping.
    • South Asia needs to be rethought, not as a region of states, but as a region of regions.
    • As such it demonstrates itself more as a borderland that needs to be cultivated out of contact zones.
    • Such contact zone exists beyond the limits of territorial boundaries shared by the member-states.

    So, how this applies to India-Nepal border dispute?

    • There is a need to go beyond the popular debates revolving around such “troubling” questions such as: how much area has been “encroached” upon by which state and on what basis.
    • Such questions appear to be “normal” in the way a “statist paradigm” deals with the issue.
    • To those who are to maintain their lifeworld at those zones these issues are troubling.

    Interconnected (fluid) life

    • South Asian life, essentially at the edges of the nation state, is bound to be fluid.
    • This is because the boundary, which confirms the territorial limits of a nation state, is at the same time the affirmed threshold of another nation state.
    • In a certain sense, the people living at the edges of nation states within South Asia do not actually belong to any of the two nation states.
    • Or in other words, they belong to both the states at the same time.
    • Plurality, differences and inclusivity bring coherence to borderland ontology.
    • They defy the logic of singular, unifying, exclusive identities that the nation states privilege.

    Implications for regional cooperation

    • Unless both India and Nepal agree to see the reality beyond the gaze of the statist paradigm, they would harm regional experiments such as the BIMSTEC or the Bangladesh, Bhutan, India, Nepal (BBIN) sub-regional initiative.
    • South Asian states need to realise the difference between “regional cooperation” merely as advocacy and as an issue that demands self-approval and self-promotion.
    • South Asian countries may claim success on regional cooperation while closing all doors of recognising difference and mutual tolerance.
    • Powerful countries operating within and beyond the orbit of South Asia might become successful in establishing their control.
    • To establish control these countries may use the token of “regional cooperation” as an issue of realpolitik.

    Consider the question “South Asia is perhaps the most natural regional grouping of states around the world, yet it is also the most difficult and contested grouping. Comment.”

    Conclusion

    Region and regional identity are not just issues of “realpolitik” in South Asia; rather, the need is to “officially” accommodate this rather naturally drafted way of doing politics, if we are genuinely concerned about South Asian geopolitics.

  • Governance of the commercial banks

    This article discusses the nitty-gritty of the recently released discussion paper by the RBI on governance. Governance in the commercial bank has been in the news following the failures of some banks.

    Discussion paper by RBI

    • Recently RBI released a discussion paper on ‘Governance in Commercial Banks in India’.
    • Recently there have been high-profile instances involving governance failures in certain banks.
    • These instances have called into question the adequacy of the existing legal regime for ensuring good governance in commercial banks.
    • Internationally, the question of governance norms in banks is treated differently given the complex nature of functions performed by banks in comparison to other businesses.
    • Functions of the banks make them critical for allocation of resources in the economy, protection of consumer interests and maintenance of financial stability.

    Objectives of the discussion paper

    • The stated objective of the discussion paper is to align the current regulatory framework on bank governance with global best practices.
    • Best practices include the guidelines issued by the Basel Committee on Banking Supervision and the Financial Stability Board.

    Current regulatory framework

    • To this end, RBI adopts international standards for bank governance into the general corporate governance framework in India.
    • This general governance framework comprises the Companies Act, 2013, and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Requirements, 2015.
    • These governance norms focus on the responsibilities of the board of directors, board structure and practices.
    • And it also includes aspects of risk management, internal audit, compliance, whistle-blowing, vigilance, disclosure and transparency.

    Issue of connection between management and owner

    • RBI also constituted an internal working group to review the extant regulatory guidelines relating to ownership and control in private sector banks.
    • This group is expected to submit its report by September 30, 2020.
    • But the assumption that deeper connections between the management and the owners necessarily lead to mismanagement needs to evaluated carefully and recalibrated to ensure balanced reforms.
    • The governance risks attributable to such connections might be relevant for government-owned banks as well.

    Key recommendations in the paper

    • (1) The majority of a commercial bank’s board must comprise of independent directors.
    • This is a standard higher than that prescribed under the Companies Act and the SEBI Regulations.
    • (2) The chairperson of the board must be an independent director.
    • (3) Chairpersons of crucial board committees (the audit committee, the risk management committee and the nomination and remuneration committee) must be independent directors who are not chairpersons of any other board committee.
    • (4) The tenures of non-promoter CEOs and WTDs should be limited to 15 years.

    Way forward

    • In order to make the reform effective, the appointment process for independent directors also needs to be re-evaluated to limit the role of controlling-shareholders.
    • The liability regime for directors on the boards of banking companies should also be revisited to balance the rights and liabilities of the directors.
    • The efficacy of implementation of norms as prescribed will depend on adequate enforcement.
    • The findings of the report of the working group have to be considered to formulate a comprehensive and effective governance framework for commercial banking in India.

    Consider the question “Given the complex nature of functions performed by the banks in comparison to other businesses subjecting them to stricter norms of governance is necessary. In light of this examine the adequacy of existing governance norms and suggest ways to improve them.”

    Conclusion

    RBI must exercise caution to ensure that the reforms balance the interests of all the stakeholders and do not come at the cost of discouraging investments and entrepreneurship in the Indian banking industry.

  • Why India is producing less and less oil?

    India’s crude oil production fell 7.1% in May 2020 compared to May 2019 on the back of low demand due to the Covid-19 pandemic.

    Practice question for mains:

    Q.Discuss the impact of Covid-19 pandemic on the global crude oil dynamics.

    Crude oil exploration in India

    • Crude oil production in India is dominated by two major state-owned exploration and production companies, ONGC and Oil India.
    • These companies are the key bidders for crude oil block auctions and end up acquiring most of the blocks that are put up for auction in India.

    Falling production

    • Domestic production of crude has been falling every year since FY 2012.
    • This has led to a steady climb in the proportion of imports in domestic crude oil consumption from 81.8% in 2012 to 87.6% in 2020.

    Why is production falling?

    • Most of India’s crude oil production comes from ageing wells that have become less productive over time.
    • A lack of new oil discoveries in India coupled with a long lead time to begin production from discovered wells has led to a steady decline in India’s crude oil production making dependency on imports.
    • The output of these ageing wells is declining faster than new wells can come up according to experts.
    • Domestic exploration companies are attempting to extend the life of currently operational wells.

    Why are there not more private players?

    • There has been a lack of interest in exploration and production in India from major private players, particularly those based abroad.
    • According to experts, this is because of long delays in the operationalization of production even after an oil block is allotted due to delays in approvals.
    • Some of the key approvals which are required to begin production include environmental clearances and approval by the Directorate General of Hydrocarbons after the allottee completes a seismic survey and creates a field development plan.

    What policy changes could help?

    • Existing public and private sector players have asked for reduced levies of oil production including oil cess, royalties, and profit petroleum especially when crude oil prices are below $45/barrel.
    • Experts say the requirement to pay royalties to the government at low crude prices can make it unviable for these companies to invest in further exploration and production.

    OALP could help

    • The government introduced the Open Acreage Licensing Programme (OALP) in 2019 to allow companies to carve out blocks that they are interested in and with lower royalties and no oil cess.
    • However, existing players are calling for a relaxation of royalties and oil cess on block allotted under previous policies.
    • The Chinese government offered a floor price to oil producers insulating them somewhat from any sharp falls in international crude prices.
    • This kind of policy at least allows for a company to have a fixed worst-case scenario for the sale of crude oil attracts more investment in exploration and production.

    Back2Basics: OALP

    • The OALP, a part of the government’s Hydrocarbon Exploration and Licensing Policy (HELP), gives exploration companies the option to select the exploration blocks on their own, without having to wait for the formal bid round from the Government.
    • The company then submits an application to the government, which puts that block up for bid.
    • OALP offers single license to explore conventional and unconventional oil and gas resources to propel investment in and provide operational flexibility to the investors.

  • New rules to regulate exotic animal trade

    The Environment Ministry’s wildlife division has introduced new rules to regulate the import and export of ‘exotic wildlife species’.

    Practice questions for mains:

    Q.What are Zoonotic Diseases? Discuss how the illicit trade in wildlife has resulted in the spread of zoonotic diseases of the scale of the ongoing COVID-19?

    Which exotic species are these new regulations talking about?

    • The Wildlife Crime Control Bureau is an organisation that is tasked with monitoring illegal trade.
    • The advisory says ‘exotic live species’ will cover animals under Appendices I, II and III of the Convention on International Trade in Endangered Species (CITES) of Wild Fauna and Flora.
    • It will not include species from the Schedules of the Wild Life (Protection) Act, 1972.

    What are the new rules?

    • Currently, it is the Directorate-General of Foreign Trade, Ministry of Commerce that oversees such trade.
    • Under the new rules, owners and possessors of such animals and birds must also register their stock with the Chief Wildlife Warden of their States.
    • Officials of the Wildlife Department will also prepare an inventory of such species and have the right to inspect the facilities of such traders to check if these plants and animals are being housed in inhumane conditions.
    • Additionally, stockists will have six months to declare their stock.

    Why such a move?

    • The illegal trade is estimated to generate revenues of up to $23 billion a year, a/c to FATF.
    • India continues to battle wildlife crime, with reports suggesting that many times such species are available for trade on online market places.

    Also read:

    Guidelines for Import of Exotic Species

    Back2Basics: CITES

    • CITES stands for the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
    • It is as an international agreement aimed at ensuring “that international trade in specimens of wild animals and plants does not threaten their survival”.
    • It was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.
    • It entered into force on July 1, 1975, and now has 183 parties.
    • The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.
    • India is a signatory to and has also ratified CITES convention in 1976.

    CITES Appendices

    • CITES works by subjecting international trade in specimens of selected species to certain controls.
    • All import, export, re-exports and introduction from the sea of species covered by the convention has to be authorized through a licensing system.

    It has three appendices:

    • Appendix I includes species threatened with extinction. Trade-in specimens of these species are permitted only in exceptional circumstances.
    • Appendix II provides a lower level of protection.
    • Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling trade.

  • What is ‘Last Glacial Maximum’?

    Researchers analysed simulations of this past climate and predicted that the ongoing climate change could reawaken an ancient climate pattern of the Indian Ocean Region (IOR).

    Try this question from CSP 2017:

    Q.With reference to ‘Indian Ocean Dipole (IOD)’, sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct?

    1. IOD phenomenon is characterized by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean.

    2. An IOD phenomenon can influence El Nino’s impact on the monsoon.

    Select the correct Option using the code given below:

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    The Last Glacial Maximum

    • The Last Glacial Maximum (LGM) was the most recent time during the Last Glacial Period that ice sheets were at their greatest extent.
    • Vast ice sheets covered much of North America, Northern Europe, and Asia and profoundly affected Earth’s climate by causing drought, desertification, and a large drop in sea levels.
    • Growth of ice sheets commenced 33,000 years ago and maximum coverage was between 26,500 years and 19–20,000 years ago, when deglaciation commenced in the Northern Hemisphere.
    • It caused an abrupt rise in sea level.

    Shells predict IOR climate variability

    • By studying microscopic zooplankton called foraminifera, the team had published a paper in 2019 which first found evidence from the past of an Indian Ocean El Niño.
    • Foraminifera builds a calcium carbonate shell, and studying these can tell us about the properties of the water in which they lived.
    • The team measured multiple individual shells of foraminifera from ocean sediment cores and was able to reconstruct the sea surface temperature conditions of the past.
    • The Indian Ocean has the capacity to harbour much larger climate variability than observed during the last few decades or a century.

    Lessons to learn

    • There are many lessons to be learnt from this cooler period about our warmer future.
    • As it is, under present-day conditions, changes in the Indian Ocean Dipole and the El Niño–Southern Oscillation strongly affect Indian Monsoon variability from year to year.
    • If the hypothesized ‘equatorial mode’ emerges in the near future, it will pose another source of uncertainty in rainfall prediction and will likely amplify swings in monsoon rainfall.
    • It could bring more frequent droughts to East Africa and southern India and increased rainfall over Indonesia.

    Back2Basics

    What is the Indian Ocean Dipole? Explain its connection with the Indian monsoons

  • Species in news: Jungle Fowl

    A recent study by scientists has revealed new details about the earliest domestication of chicken from the Jungle Fowl.

    Try this question from CSP 2012:

    Q.What is the difference between the antelopes’ Oryx and Chiru?

    (a) Oryx is adapted to live in hot and arid areas like Africa and Arabia whereas Chiru is adapted to live in steppes and semi-desert areas of cold high mountains of Tibetan Plateau.

    (b) Oryx is poached for its antlers whereas Chiru is poached for its musk

    (c) Oryx exists in western India only whereas Chiru exists in northeast India only.

    (d) None of the statements (a), (b) and (c) given above is correct.

    Jungle Fowl

    • The DNA sequencing of 863 genomes has shown the first domestication of chicken occurred in southwestern China, northern Thailand and Myanmar.
    • The study involved sequencing of genomes from all four species of the genus Gallus, five subspecies of Red Jungle Fowl and various domestic chicken breeds collected worldwide.
    • It revealed single domestication from Red Jungle Fowl sub-species Gallus spadiceous.
    • The study also demonstrated that all five Red Jungle Fowl sub-species were genetically differentiated from each other approximately 50,000 years ago much earlier than domestication.
    • The results contradicted the earlier claim that chickens were domesticated in northern China and the Indus Valley.

    Domestication of Chicken

    • The question of domestication of chickens has intrigued scientists for centuries and has been the subject of debate.
    • Charles Darwin postulated that chickens were domesticated around 4,000 B.C. from a single ancestor, Red Jungle Fowl in the Indus Valley.
    • An important study published earlier from Uppsala University claimed the Grey Jungle Fowl had contributed to chicken domestication.
    • With this, a couple of studies from India, China and other South-Asian countries have argued the monophyletic origin of chicken.

  • Statistics Day and P.C. Mahalanobis

    Statistics Day will be celebrated today on 29th June 2020 to popularize the use of Statistics in everyday life and sensitize the public as to how Statistics helps in shaping and framing policies.

    Try this question from CSP 2016:

    A recent movie titled The Man Who Knew Infinity is based on the biography of-

    (a) S. Ramanujan
    (b) S. Chandrasekhar
    (c) S. N. Bose
    (d) C. V. Raman

    Who was P.C. Mahalanobis?

    • Prasanta Chandra Mahalanobis (29 June 1893 – 28 June 1972) was an Indian scientist and statistician.
    • He is best remembered for the Mahalanobis distance, a statistical measure, and for being one of the members of the first Planning Commission of free India.
    • He made pioneering studies in anthropometry (the science of obtaining systematic measurements of the human body) in India.
    • He founded the Indian Statistical Institute and contributed to the design of large-scale sample surveys.
    • For his contributions, Mahalanobis has been considered the father of modern statistics in India.

  • 29th June 2020| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 30th June-

    GS-1  Salient features of the world’s physical geography.

    GS-4 Ethical concerns and dilemmas in government and private institutions.

    Question 1) 

    Critically examine how globalization has affected urban and rural society differently in India. 10 marks

     

    Question 2)

    South Asia is perhaps the most natural regional grouping of states around the world, yet it is also the most difficult and contested grouping. Comment. 10 marks

     

    Question 3)

    Given the complex nature of functions performed by the banks in comparison to other businesses subjecting them to stricter norms of governance is necessary. In light of this examine the adequacy of existing governance norms and suggest ways to improve them. 10 marks

    Question 4)  

    Discuss the new public service management model. What are the principles of it? Explain. 10 marks

     

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • Live at 6:00 pm, today | “Don’t let anybody else fix your limits – S Krithiga, IFoS” | Register now | Set a reminder

    Live at 6:00 pm, today | “Don’t let anybody else fix your limits – S Krithiga, IFoS” | Register now | Set a reminder

    CLICK ON SET REMINDER ON THIS VIDEO. WEBINAR LINK SHARED BELOW.

    Dear friends,

    Get ready to meet S Krithiga ma’am, AIR 18, UPSC IFoS 2019. This is going to be a super informative session. You don’t want to miss out on this session. 

    • Time: 6:00 pm
    • Date: 28th June 2020, Today
    • Link: Click on the video below and set a reminder for 6pm.

    There will be a Q/A session where Krithiga ma’am will be answering your questions.

    Register here for the Webinar

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    About S Krithiga

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