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  • Species in news: Thanatotheristes

     

    Scientists have found that a dinosaur fossil, found in Alberta in Canada in 2010, belongs to a new species of tyrannosaur. They have named it Thanatotheristes, which means “reaper of death”.

    Thanatotheristes

    • Tyrannosaurs were one of the largest meat-eating dinosaurs to have ever lived, with very large and high skulls, and the best known among them is the Tyrannosaurus rex, celebrated in the Jurassic Park series.
    • The 79-million-year-old fossil that the researchers have found is the oldest tyrannosaur known from northern North America.
    • Thanatotheristes preyed on large plant-eating dinosaurs such as the horned xenoceratops and the dome-headed colepiochephale.
    • The research suggests that tyrannosaurs did not have one general body type; rather different tyrannosaur species evolved distinct body sizes, skull forms and other such physical features.
    • The fossil specimen is important to understand the Late Cretaceous period, which is the period when tyrannosaurs roamed the Earth.

  • SuperCam on Mars Rover 2020

     

    In its mission to Mars this summer, NASA is sending a new laser-toting robot called SuperCam as one of seven instruments aboard the Mars 2020 rover.

    SuperCam

    • Called SuperCam, the robot is used for studying mineralogy and chemistry from up to about 7 metres away.
    • It might help scientists find signs of fossilized microbial life on Mars.
    • SuperCam packs what would typically require several sizable pieces of equipment into something no bigger than a cereal box.
    • It fires a pulsed laser beam out of the rover’s mast to vaporise small portions of rock from a distance, providing information that will be essential to the mission’s success.

    NASA lists five things to know

    • From more than 7 m away, SuperCam can fire a laser to study rock targets smaller than a pencil point. That lets the rover study spots it can’t reach with its arm.
    • SuperCam looks at rock textures and chemicals to find those that formed or changed in water on Mars long ago.
    • SuperCam looks at different rock and “soil” types to find ones that could preserve signs of past microbial life on Mars — if any ever existed.
    • For the benefit of future explorers, SuperCam identifies which elements in the Martian dust may be harmful to humans.
    • Scientists can learn about how atmospheric molecules, water ice, and dust absorb or reflect solar radiation. This helps predict Martian weather better.

  • Protected Special Agriculture Zone

    The Cauvery delta region in Tamil Nadu will be declared as ‘Protected Special Agricultural Zone’ (PSAZ) by the TN govt.

    Cauvery delta PSAZ

    • Declaring PSAZ ensures that particular region will not be granted permission for any new projects like those related to hydrocarbons.
    • Only Agro based Industries would be given permission to be built.
    • The special protection will be bestowed on Cauvery Delta districts such as Thanjavur, Tiruvarur, Nagappattinam, Pudukottai, Cuddalore, Ariyalur, Karur and Tiruchirappalli districts.

    Significance of the move

    • The Cauvery Delta Region is Tamil Nadu’s rice bowl comprising above eight districts.
    • It is just and reasonable that projects like hydrocarbon exploration have raised concerns among farmers and other agriculture-based labourers.
    • Drilling for extraction of oil and gas in these regions that hampers agriculture and posing much environmental impact or health hazards will be stopped immediately.

  • Reservation as right: on Supreme Court judgment

    Context

    The recent Supreme Court judgment, that there is no fundamental right to claim reservation in promotions, has caused some political alarm.

    Received wisdom in affirmative action jurisprudence

    • Presence of sound legal framework for a reservation: The received wisdom in affirmative action jurisprudence is that a series of Constitution amendments and judgments have created a sound legal framework for reservation in public employment, subject to the fulfilment of certain constitutional requirements.
    • Solidification of reservation as an entitlement: It is also accepted that the framework has solidified into an entitlement for the backward classes, including the SCs and STs.

    What does the judgement mean?

    • Reservations are not rights: The latest judgment is a reminder that affirmative action programmes allowed in the Constitution flow from “enabling provisions” and are not rights as such.
    • Not a new legal position: This legal position is not new. Major judgments- these include those by Constitution Benches-note that Article 16(4), on the reservation in posts, is enabling in nature.
    • The state is not bound to provide reservation: In other words, the state is not bound to provide reservations. But if the state provides reservations, it must satisfy the following two criteria-
      • For the backward class: It must be in favour of sections that are backward.
      • Inadequately represented: And inadequately represented in the services based on quantifiable data.
    • What happened in the Uttarakhand case? The Court set aside the Uttarakhand High Court order directing data collection on the adequacy or inadequacy of representation of SC/ST candidates in the State’s services.
      • What was the reasoning? Its reasoning is that once there is a decision not to extend reservation — in this case, in promotions — to the section, the question whether its representation in the services is inadequate is irrelevant.

    Question of government obligation

    • The idea in consonance with the Constitution: The idea that reservation is not a right may be in consonance with the Constitution allowing it as an option.
    • The larger question of the government obligation: But a larger question looms is there no government obligation to continue with affirmative action if-
      • The social situation that keeps some sections backwards.
      • And at the receiving end of discrimination persists?

    Why reservation matters for equality?

    • Reservation as a faced of equality-the SC: Reservation is no more seen by the Supreme Court as an exception to the equality rule; rather, it is a facet of equality.
    • Completion of equality norm: The terms “proportionate equality” and “substantive equality” have been used to show that the equality norm acquires completion only when the marginalised are given a legal leg-up.

    What may be the consequences of this judgement?

    • Possibility of the unequal system: Some may even read into this an inescapable state obligation to extend reservation to those who need it, lest its absence renders the entire system unequal.
    • Possibility of perceptible imbalance: For instance, if no quotas are implemented and no study on backwardness and extent of representation is done, it may result in a perceptible imbalance in social representation in public services.

    Conclusion

    Ensuring adequate representation to disadvantaged sections is a state obligation and the state must play its role in ensuring their representation by appropriate legislation.

     

  • [Burning Issue] Divestment of LIC

     

    Context

    • Finance Minister has said that the government will sell a part of its holding in Life Insurance Corporation of India (LIC) through an initial public offering (IPO).
    • The government owns 100 per cent of LIC. The government’s move is a part of efforts to push through an aggressive disinvestment and asset monetisation programme.
    • Some are calling it India’s Saudi Aramco, a listing on Indian stock exchanges like none other.

    Background

    Life Insurance Corporation of India (LIC)

    • LIC is an Indian state-owned insurance group and investment corporation owned by the Government of India.
    • It was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India.
    • Over 245 insurance companies and provident societies were merged to create the state-owned LIC.

    Beginning of life insurance in India

    • The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818.
    • Its primary target market was the Europeans based in India, and it charged Indians heftier premiums.
    • Surendranath Tagore had founded Hindusthan Insurance Society, which later became Life Insurance Corporation.
    • The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider.

    Nationalization in 1956

    • In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance agencies.
    • The Parliament passed the Life Insurance of India Act on 19 June 1956 creating the LIC which started operating in September of that year.
    • It consolidated the business of 245 private life insurers and other entities offering life insurance services; this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies.
    • The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance.

    Present capital base

    LIC is India’s largest financial institution, and if LIC shares are listed on stock exchanges, it could easily emerge as the country’s top listed company in terms of market valuation, overtaking current leaders Reliance and TCS.

    The corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of INR 45.9 crores (US$92 million as per the 1959 exchange rate of roughly ₹5 for US$1), had grown to 25,000 servicing around 350 million policies and a corpus of over ₹800,000 crore by the end of the 20th century.

    • From its creation, LIC, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses and by 2006 was contributing around 7% of India’s GDP.
    • As of 2019, LIC had toa tal life fund of ₹28.3 trillion.
    • The total value of sold policies in the year 2018-19 is ₹21.4 million.
    • LIC settled 26 million claims in 2018-19. It has 290 million policyholders.

    LIC: A milch cow for government

    • Governments have long shied away from considering listing India’s top insurer, given the institution’s perceived role in supporting the markets by buying shares during major sell-offs and also shares of state-owned companies during divestment and when investor participation has been weak.
    • The corporation had invested heavily in IPOs and follow-on offers of companies such as ONGC.
    • It is also the largest investor in government securities and stock markets every year. On an average, LIC invests Rs 55,000 crore to Rs 65,000 crore in stock markets every year and emerges as the largest investor in Indian stocks.
    • LIC also has huge investments in debentures and bonds besides providing funding for many infrastructure projects according to its Annual Report for 2017-18.

    Initial Public Offerings (IPO) of LIC

    A big-bang announcement

    • The government could start by initially selling a small tranche of the government controlled institution through an IPO, and subsequently dilute the government’s holdings.
    • The IPO is likely to fetch a huge premium as LIC currently has a small equity base.
    • In the Budget of July 2019, the government had announced a proposal to make minimum public holding of 35 per cent for listed companies.
    • The government had listed the shares of General Insurance Corporation and New India Assurance through IPOs three years ago.
    • Public listing of LIC will lead to more disclosures of investment and loan portfolios and better governance, with greater transparency and accountability.

    How will the IPO go?

    • The government will have to amend the LIC Act first before taking the Corporation public.
    • LIC is currently under the supervisory oversight of the Insurance Regulatory Development Authority of India (IRDAI), but it is governed by The LIC Act of 1956,
    • The act enables it to obtain a special dispensation in several areas including higher stakes in companies beyond the limit set by the IRDAI.
    • Under Section 37 of The LIC Act, the government has guaranteed the sum assured with bonus in all LIC policies to ensure the availability of financial security to the family of the deceased.

    Implications

    • It seems like the government is trying to make the most of the brand value of LIC, given that it is one of the few remaining profit-making entities owned by the state.
    • Will the listing of LIC, which is the country’s largest financial institution with assets under management of close to ₹30 trillion, do any good to its policyholders?

    Let’s have a look:

    1) Listing will boost LIC’s efficiency and thereby policy returns

    • The listing of LIC will be a positive move for policyholders. The benefit will, however, be indirect.
    • As a 100% government-owned entity, LIC’s financial health is largely outside the scrutiny of the financial markets.
    • Investment returns for traditional policies are dependent on the insurer’s performance. Such plans form a big portion of LIC’s book.
    • Unlike unit-linked insurance plan investors, who have a clear visibility on the daily performance of underlying funds, the endowment policyholders’ visibility is limited to annually declared bonuses.
    • Listing will allow analysts to monitor LIC’s governance. LIC will come under Sebi’s direct watch and will have to comply with the requirements meant for other listed firms.
    • Such compliance is likely to strengthen its overall corporate governance, financial and investment discipline. Over time, this will increase its efficiency and it may deliver higher returns to policyholders.

    2) Peers will be under pressure to improve pricing and features

    • Any company going public is good news for stakeholders since it ensures higher transparency, better governance, more disclosures and scrutiny from the investors.
    • However, LIC is not a typical company. LIC has in the past invested in the equity markets to stem its fall.
    • After being listed, LIC will be answerable to public shareholders and, hence, will be a prudent investment decision, which is good for policyholders.
    • LIC will also become more competitive. This will put pressure on its peers to innovate, benefitting policyholders in terms of pricing, product features and services.
    • LIC policyholders enjoy a sovereign guarantee on the sum assured and the bonus declared. This has been one of the main selling points for LIC policies.
    • The proposed “partial” divestment, in all likelihood, will ensure that the majority stake is still with the government, thereby continuing the sovereign guarantee.

    3) Less govt interference will be a positive for LIC’s financial health

    • For LIC, it will be a significant task to enhance the quality of asset management given that the government sometimes is reliant on it to bail out PSUs, without delving deep into the fiscal prudence of these assets.
    • Being under scrutiny, the quality of asset management by LIC will be enhanced as the government’s influence on its asset management will reduce.
    • Further, LIC services a few state-sponsored schemes which have underwriting challenges on the commercial front. With the IPO, these services might fall into place, improving the overall stability of LIC.
    • In a nutshell, with less federal interference, LIC will be more accountable with strong governance protocols, which will be a positive for its financial health.
    • However, the sovereign guarantee element currently enjoyed by each LIC policyholder might cease to exit after the IPO. Some policyholders may then find it hard to trust LIC.

    4) If sovereign guarantee continues, policyholders won’t perceive risk

    • So far, LIC has operated almost like a mutual insurance company by passing on most of the earnings to the policyholders and keeping very little as profits, despite having a massive operation.
    • The listing of LIC is a positive move which will result in transparency of the corporation in public view, sparking renewed interest in the insurance industry in international markets.
    • Government-owned General Insurance Co. of India is already listed, so the process and transparency will not be any different.
    • As long as sovereign guarantee over the maturity proceeds and sum assured continue, policyholders won’t perceive any risk.
    • The return on policies may have to be moderated to boost profitability and technical reserves in the face of shareholder and analyst scrutiny.
    • It is not clear how much of the company will be diluted. So, the opportunity for the general public to pick up equity in LIC in the IPO may be limited.

    Challenges

    Structural challenges

    • LIC can even evolve into a bank like many of its global peers like Axa, Berkshire, and Munich Re.
    • But even after the listing, the LIC stock will still be controlled by the Indian government.
    • And, it will continue to exercise some amount of control.
    • So, investors in LIC might face what those of PSU banks do – be a part of poor governance, bad decisions — despite controlling 70% of the country’s banking system.

    Market hurdles

    • LIC’s own issues are not the only challenge the company would face in going public. It also remains to be seen if the Indian share market is ready to absorb such a large public issue.
    • Whilst it will definitely help deepen the markets, given that SEBI regulations need a minimum dilution of 10 per cent to the public, it is unclear if there is enough liquidity for such a large sized IPO.
    • Additionally, LIC has been a port of call for various PSU fund raises in the past.
    • Once a behemoth the size of LIC goes for listing, it will be interesting to see if other private life insurance companies will still be able to attract funds at expected valuation.

    Impact on growth

    • The size of the IPO will determine the extent of liquidity it will suck out, but Indian markets do not have depth to take the issue of a very size.
    • Critics argue that it’s too early for LIC to go public. LIC could see plenty of high growth despite the ongoing slowdown in the economy.

    Fears of disclosure

    • The company’s books and operations have been opaque for far too long but it is trusted by 250 million policyholders.
    • It could have been the saviour for many more listed state-owned companies, but the government has decided to sell the golden goose itself.
    • LIC is also famous for investing millions whenever stock market tanks, just to prop it up.
    • But once it is listed in the market, these tricks will be impossible to execute. The disclosures will lead to a lot of discontents due to NPAs.

    Investors trust

    • Being one of the biggest financial institutions of the country, the move to privatise LIC will shake the confidence of the common man and will be an affront to our financial sovereignty.
    • The very purpose of LIC to provide insurance coverage to socially and economically backward class at a reasonable cost will be defeated and motto will change from service to profit.

     

    Way Forward

    • LIC is all set to see significant disruption. The scale of that disruption would be unprecedented within the organisation and outside.
    • Over the years, LIC has become ‘the lender of last resort’ to the Government of India.
    • Confronted with an unprecedented fiscal deficit and worried by an economy in crisis, the government has to find resources.
    • This disinvestment is also a preferred option for ideological and practical reasons.
    • The government could utilize the money gained by selling off its stakes to improve services in public goods like infrastructure, health and education.
    • However, listing LIC wouldn’t be an easy task and calls for a political will.
    • Private insurers in India like HDFC Life, SBI Life and ICICI Pru Life are growing faster than LIC due to their small size.
    • In the new avatar, LIC would have to benchmark itself against private insurers and global insurance giants like

     

    Also read

    Disinvestment Policy in India.

     

    References

    https://www.livemint.com/money/personal-finance/what-does-partial-divestment-in-lic-mean-for-its-policyholders-11580664343791.html

    https://www.moneycontrol.com/news/business/moneycontrol-research/listing-lic-a-big-reform-4893191.html

    https://indianexpress.com/article/explained/life-insurance-corporation-lic-ipo-explained-6245933/

    https://www.businesstoday.in/markets/ipo-corner/lic-ipo-nirmala-sitharaman-budget-lic-npas-reliance-industries-tcs-hdfc-bank-stocks/story/395342.html

    https://www.firstpost.com/business/lic-ipo-about-1-lakh-employees-stage-walk-out-across-country-against-proposed-stake-sale-future-course-of-action-to-be-decided-next-month-8005191.html

  • 11th February 2020 | Prelims Daily with Previous Year Questions

    [WpProQuiz 363]

  • A mix Indian health care can do without

    Context

    In India, multiple policy pronouncements over the last few years have expressed an implicit intent to emulate certain features of the U.S. health system which is one of the most prodigal health systems, and it is a well-known reality that it is infamously poor-performing.

    Emulating the U.S. health system in India and problems in this approach

    • Implicit intent to emulate the U.S. system: In India, multiple policy pronouncements over the last few years have expressed an implicit intent to emulate certain features of the U.S. health system like-
      • Enhance private initiative.
      • And uphold the insurance route as the way to go for health care.
    • AB-NHPS scheme: These are being largely envisaged while riding on the back of the Ayushman Bharat-National Health Protection Scheme (AB-NHPS).
      • AB-NHPS aims to provide insurance cover to nearly 50 crores poor Indians.
      • The mechanism to check insurance frauds: The AB-NHPS affirmed strong mechanisms to check insurance fraud which was commonplace in its precursor programme, the Rashtriya Swasthya Bima Yojana (RSBY).
      • New of fraud in AB-NHPS: Recently, 171 hospitals were reported to have been de-empanelled from the AB-NHPS on charges of fraud.
    • How are the frauds in AB-NHPS sought to be tackled? The response to these has been envisaged through an unprecedented bolstering of administratively-heavy and technology-driven mechanisms.
      • Anti-fraud units: National- and state anti-fraud units have been established and partnerships with fraud control companies conceived.
      • One would ask this question: what is wrong in all of this?
    • What is wrong with this approach? Let us return to the U.S. once again.
      • Administrative intensive: Multiple layers of complex arrangements and concomitant complex regulatory provisions have made the U.S. system one of the most administratively and technologically intensive systems in the world.
      • 50% spending going for the wages: More than 50% of health-care spending in the U.S. in 2010 went into health worker’s wages, with a large chunk of the growth in health-care labour taking place in the form of non-clinical workers.
      • Very little going into improving health: What this entails is that for every penny spent on health care, very little goes into actually improving health.

    What are the concerns in emulating the U.S. system?

    • Sub-satisfactory operations at the large cost: The new system necessitates-
      • A battery of new structures.
      • Personnel cadres.
      • Data systems.
      • And working arrangements only in order to sub-satisfactorily operate an insurance scheme that would cover less than half the population.
      • Disregarding the death spiral that policy-driven over-reliance on private health care could lead to considerable costs which would not primarily contribute to improving health outcomes.
      • Ethical concerns over unnecessary spending: While a besottedness with cutting-edge technology and state-of-the-art systems can help garner eyes and promote businesses, each unnecessary penny incurred this way raises significant ethical concerns.
    • Problems of inadequate funding
      • Funding sufficient only for a quarter of beneficiary: Gupta and Roy have shown how the allocation for the AB-NHPS for 2019-20 would have covered less than a quarter of the targeted beneficiaries.
      • Paltry increase in allocations: For 2020-21, there has been a paltry increase in health-care sector allocation (5.7% above 2019-20 RE), while the allocation for the AB-NHPS is unchanged.
      • It is very possible that the AB-NHPS continues to remain insufficiently funded and incapable of extending considerable financial risk protection to the poor.
    • Diversion of limited funds to wasteful areas
      • Attractive on face: Embracing the complexities associated with robust regulation of the insurance programme and making the requisite technological and administrative investments appear attractive and commendable on the face.
      • Diversion of limited fund: However, these complexities entail diverting highly limited resources towards wasteful and dispensable high-end areas.
      • These funds could have been set aside for much more pressing and productive domains, such as public hospitals and health centres.
      • Improvements in these areas would have strongly reflected in terms of tangibly better health outcomes.
      • AB-NHPS reinforcing contradictions: Rather, the AB-NHPS appears attuned to reinforcing a stark contradiction wherein trailblazing but unproductive high-end structures thrive alongside decrepit but potentially fructuos basic structures.

    Conclusion

    The fanfare with which AB-NHPS was launched, can hide the pressing concerns which lie underneath. The government must ensure that every penny spent on improving healthcare is used in the most optimal way and ensure that India’s AB-NHPS won’t end up the US healthcare way.

  • The battle in Beijing

    Context

    The coronavirus epidemic poses a challenge to China’s place in global affairs, its political leadership.

    The possible implications of coronavirus crisis

    • The Chines leadership might not be able to escape the blame: If the epidemic turns into a pandemic, as some analysts bet, China’s all-powerful leader Xi Jinping might not be able to escape the blame.
      • And will likely come under considerable political pressure.
    • It could also turn into a systemic threat: Some also speculate that the backlash against the government’s mishandling of the crisis could turn into a systemic threat against the dominance of the Chinese Communist Party.
    • Speculations as perennial hope among China’s critics: Sceptics, however, dismiss above speculation as merely reflecting the perennial hope among Beijing’s harshest critics who can’t wait to see a China without the CCP.
      • Realist’s stand: Realists point to the massive mobilisation of state power by President Xi in limiting the spread of the virus.

    Handling of the crisis by China

    • Initial faltering response: To be sure, there were major failures in the initial faltering response to the crisis.
      • Cover-up attempts from the lower level: The attempts at the lower levels to cover-up or underplays the crisis and the inadequate appreciation at the higher levels of the potential consequences are common to all large bureaucracies. The party-state in China is not an exception.
    • Praise for handling the crisis: China’s handling of the crisis had drawn much respect, grudging or otherwise, from the international community.
      • Whether it is the lockdown of Hubei province and its capital Wuhan, from where the virus began to spread.
      • Or in deploying thousands of doctors and health workers in the province and building massive hospitals for treating the infected.
    • Possibility of some political impact: Yet, there is no question that a crisis of this magnitude -will have some political impact.
      • The party-state is certainly having some difficulty in containing the public outrage against the initial failures.
    • Efforts to shield top leadership from blame: The CCP, however, is bound to shield the supreme leader from any damaging criticism and in fact, celebrate a triumph in containing the spread through a determined effort.
      • Responsibility will be affixed on provincial officials in Hubei and a purge of some kind may have already begun.

    Addressing the economic consequences of the crisis

    • International dimension: Nearly two decades after the SARS epidemic -China is now a much larger economy and its interdependence with the world has only deepened.
      • This interdependence, in turn, lends a strong international dimension to China’s crisis.
    • Optimist’s hope of future uptick: Optimists hope that a sharp drop in economic activity in the current quarter will be followed by a steep uptick in growth in the next when the virus is contained and normalcy returns.
    • Pessimist’s fear of economic disruption: Pessimists suggest that the economic disruption — in terms of the impact on internal and external trade and the breakdown of the global supply chains- could have lasting effects.
      • Reinforcing the disruption: Some suspect that the disruption could reinforce the slowdown driven by a number of other internal and external factors including the trade war with the US.

    China’s response to the rest of the world

    • Channelling of resentment against the West: Some in the West hope that a prolonged economic crisis might turn the people against the CCP. For now, though, Beijing is channelling the resentment against the West.
    • Terming evacuation as an over-reaction: Beijing has criticised the advisories from various countries against travel to China and the cancellation of flights as over-reaction.
      • Lukewarm response to evacuation efforts: China has also been lukewarm to efforts of various countries to evacuate their citizens from Wuhan and Hubei.
      • India evacuated students: India has managed to convince Beijing to let India airlift its students from Wuhan.
      • Pakistan has declared that it will not evacuate its students as a gesture of political solidarity with China in a time of crisis.
      • South Asian neighbour’s response: Many of India’s other South Asian neighbours are torn between the reluctance to offend Chinese sentiment and the mounting domestic pressures to bring students back.
      • Cooperation with the US: While being critical of the US travel restrictions against China, Beijing has certainly been open to cooperation with the US in dealing with the crisis.
    • India’s offer to help other countries in evacuation: The external affairs minister Subrahmanyam Jaishankar said last week that India has been willing to bring back students from all the neighbouring countries.
      • Balancing between Delhi and Beijing: The logic of balancing between Delhi and Beijing has prevented most of the smaller neighbours from requesting Indian assistance.
      • The Maldives has been the only exception.
    • The response of the East and Southeast Asia: Beyond South Asia, many countries in East and Southeast Asia have been hesitant to be seen as rushing to cut themselves from China.
      • What is making these countries hesitant: Deep economic interdependence and massive flows of Chinese tourists led to much dithering among the East Asian countries in their early responses to the crisis.

    Conclusion

    India must explore all potential cooperative engagement with Beijing as well as its other international partners on pandemics-an important but the under-addressed challenge for national, regional and international security.

  • Explained: Uniform Civil Code — the debate, the status

    Last week, while hearing a matter relating to properties of a Goan, the Supreme Court described Goa as a “shining example” with a Uniform Civil Code, observed that the founders of the Constitution had “hoped and expected” a UCC for India but there has been no attempt at framing one.

    What is a Uniform Civil Code?

    • A UCC is one that would provide for one law for the entire country, applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption etc.
    • Article 44 of the Constitution lays down that the state shall endeavour to secure a UCC for the citizens throughout the territory of India.
    • Article 44 is one of the directive principles. These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.
    • Fundamental rights are enforceable in a court of law. While Article 44 uses the words “state shall endeavour”, other Articles in the ‘Directive Principles’ chapter use words such as “in particular strive”; “shall in particular direct its policy”; “shall be obligation of the state” etc.
    • Article 43 mentions “state shall endeavour by suitable legislation” while the phrase “by suitable legislation” is absent in Article 44.
    • All this implies that the duty of the state is greater in other directive principles than in Article 44.

    What are more important — fundamental rights or directive principles?

    • There is no doubt that fundamental rights are more important.
    • The Supreme Court held in Minerva Mills (1980): “Indian Constitution is founded on the bed-rock of the balance between Parts III (Fundamental Rights) and IV (Directive Principles).
    • To give absolute primacy to one over the other is to disturb the harmony of the Constitution”.
    • Article 31C inserted by the 42nd Amendment in 1976, however, lays down that if a law is made to implement any directive principle, it cannot be challenged on the ground of being violative of the fundamental rights under Articles 14 and 19.

    Does India not already have a uniform code in civil matters?

    • Indian laws do follow a uniform code in most civil matters – Indian Contract Act, Civil Procedure Code, Sale of Goods Act, Transfer of Property Act, Partnership Act, Evidence Act etc.
    • States, however, have made hundreds of amendments and therefore in certain matters, there is diversity even under these secular civil laws.
    • Recently, several states refused to be governed by the uniform Motor Vehicles Act, 2019.
    • If the framers of the Constitution had intended to have a Uniform Civil Code, they would have given exclusive jurisdiction to Parliament in respect of personal laws, by including this subject in the Union List.
    • But “personal laws” are mentioned in the Concurrent List. Last year, the Law Commission concluded that a Uniform Civil Code is neither feasible nor desirable.

    Is there one common personal law for any religious community governing all its members?

    • All Hindus of the country are not governed by one law, nor are all Muslims or all Christians.
    • Not only British legal traditions, even those of the Portuguese and the French remain operative in some parts.
    • In Jammu and Kashmir until August 5, 2019, local Hindu law statutes differed from central enactments.
    • The Shariat Act of 1937 was extended to J&K a few years ago but has now been repealed.
    • Muslims of Kashmir were thus governed by a customary law, which in many ways was at variance with Muslim Personal Law in the rest of the country and was, in fact, closer to Hindu law.
    • Even on registration of marriage among Muslims, laws differ from place to place. It was compulsory in J&K (1981 Act), and is optional in Bengal, Bihar (both under 1876 Act), Assam (1935 Act) and Odisha (1949 Act).
    • In the Northeast, there are more than 200 tribes with their own varied customary laws.
    • The Constitution itself protects local customs in Nagaland. Similar protections are enjoyed by Meghalaya and Mizoram. Even reformed Hindu law, in spite of codification, protects customary practices.

    How does the idea of a UCC relate to the fundamental right to religion?

    • Article 25 lays down an individual’s fundamental right to religion; Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”; Article 29 defines the right to conserve distinctive culture.
    • An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to fundamental rights, but a group’s freedom under Article 26 has not been subjected to other fundamental rights
    • In the Constituent Assembly, there was division on the issue of putting Uniform Civil Code in the fundamental rights chapter.
    • The matter was settled by a vote. By a 5:4 majority, the fundamental rights sub-committee headed by Sardar Patel held that the provision was outside the scope of fundamental rights and therefore the UCC was made less important than freedom of religion.

    What was the view of Muslim members in the Constituent Assembly?

    • Some members sought to immunise Muslim Personal Law from state regulation.
    • Mohammed Ismail, who thrice tried unsuccessfully to get Muslim Personal Law exempted from Article 44, said a secular state should not interfere with the personal law of people.
    • B Pocker Saheb said he had received representations against a common civil code from various organisations, including Hindu organisations.
    • Hussain Imam questioned whether there could ever be uniformity of personal laws in a diverse country like India.
    • B R Ambedkar said “no government can use its provisions in a way that would force the Muslims to revolt”.
    • Alladi Krishnaswami, who was in favour of a Uniform Civil Code, conceded that it would be unwise to enact Uniform Civil Code ignoring strong opposition from any community.
    • Gender justice was not mentioned in these debates.

    How did the debate on a common code for Hindus play out?

    • In June 1948, Rajendra Prasad, President of the Constituent Assembly, warned Jawaharlal Nehru that to introduce “basic changes” in personal law was to impose “progressive ideas” of a “microscopic minority” on the Hindu community as a whole.
    • Others opposed to reforms in Hindu law included Sardar Patel, Pattabhi Sitaramayya, M A Ayyangar, M M Malaviya and Kailash Nath Katju.
    • When the debate on the Hindu Code Bill took place in December 1949, 23 of 28 speakers opposed it.
    • On September 15, 1951, President Prasad threatened to use his powers of returning the Bill to Parliament or vetoing it.
    • Ambedkar eventually had to resign. Nehru agreed to trifurcation of the Code into separate Acts and diluted several provisions.

  • Fine-tuning the Surrogacy Bill

    Context

    • In a recent report, a Select Committee of Parliament has recommended that the contentious clause limiting surrogacy only to “close relatives” to be removed from the Surrogacy (Regulation) Bill, 2019.
    • These recommendations aim to make the benefits of modern technology more easily available to infertile couples.
    • A look at the genesis of the Bill, its provisions and why the current report could signal some progressive amendments in the Bill:

    What are the provisions of the Surrogacy (Regulation) Bill?

    • The Surrogacy Bill proposes to allow altruistic ethical surrogacy to intend infertile Indian married couples in the age groups 23-50 years (women) and 26-55 years (men).
    • It was first mooted in 2016 in the wake of repeated reports of exploitation of women who were confined to hostels, not provided adequate post-pregnancy medical care and paid a pittance.
    • The couple should have been legally married for at least five years and should be Indian citizens.
    • They cannot have a surviving child, either biological or adopted, except when they have a child who is mentally or physically challenged or suffers from a life-threatening disorder with no permanent cure.
    • It requires surrogacy clinics to be registered, and national and state surrogacy boards to be formed.
    • It makes commercial surrogacy, and abandoning or disowning a surrogate child punishable by imprisonment up to 10 years and a fine up to Rs 10 lakh.

    What changes has the Select Committee suggested?

    • The Select Committee recommended that the “close relatives” clause should be removed, and any “willing” woman should be allowed to become a surrogate mothe.
    • It has strongly backed the ban on commercial surrogacy.
    • It has also recommended that divorced and widowed women aged between 35 and 45 years should be able to be a single commissioning parent.
    • It has emphasised the need for a five-year waiting period for childless married couples could be waived if there is a medical certificate that shows that they cannot possibly conceive.
    • It has recommended that persons of Indian origin should be allowed to avail surrogacy services.
    • It has not, however, recommended expanding the definition of commissioning parent to include singles, either men or women.
    • It also recommended that the ART Bill (which deals with assisted reproductive technologies) should be brought before the Surrogacy bill so that all the highly technical and medical aspects could be properly addressed.

    What is the ART Bill?

    • The Assisted Reproductive Technology (Regulation) Bill has been in the making since 2008.
    • It aims to regulate the field through registration of all IVF clinics and sperm banks, segregation of ART clinics and gamete banks etc.
    • It also requires national and state boards to be established for the purpose of regulation of the fertility market.
    • The Select Committee report says: “Surrogacy is a part and parcel of ART and hence the Surrogacy Bill should come into force only after the enactment of ART Bill.
    • Bringing Surrogacy Bill before the ART will be irrelevant and also create duplication of Boards.
    • The Standing Committee on Health and Family Welfare, too has “strongly recommended” to the government that the two Bills should be brought together and not in isolation.

    How big is India’s surrogacy market?

    • Estimations by the ICMR put it around 2,000-odd babies per year through commercial surrogacy — when a woman is paid an agreed sum for renting her womb.
    • CII figures say surrogacy is a $2.3-billion industry fed by a lack of regulations and poverty.

    What happened the last time the Bill was scrutinized by a parliamentary panel?

    • The Bill was earlier scrutinized by the Parliamentary Standing Committee on Health and Family Welfare.
    • That committee had recommended that compensation should be the norm and the word “altruistic” should be replaced with “compensated”.
    • Couples — including those in live-in relationships — should be allowed to choose surrogates from both within and outside the family. Altruistic surrogacy, it observed, is tantamount to exploitation.
    • The “close relative” condition is open to misuse in a patriarchal setup, the committee had observed.
    • Given the patriarchal familial structure and power equations within families, not every member of a family has the ability to resist a demand that she be a surrogate for another family member.
    • A close relative of the intending couple may be forced to become a surrogate which might become even more exploitative than commercial surrogacy.
    • These recommendations were not accepted by the government.

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