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  • Corruption Perceptions Index (CPI), 2021

     

    The 2021 Corruption Perception Index by Transparency International places India 85th on a list of 180 countries, one position above last year.

    Corruption Perceptions Index (CPI)

    • The CPI is an index which ranks countries “by their perceived levels of public sector corruption, as determined by expert assessments and opinion surveys.”
    • The CPI generally defines corruption as an “abuse of entrusted power for private gain”.
    • The index is published annually by the non-governmental organisation Transparency International since 1995.
    • The index ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and business people.
    • It uses a scale of 0 to 100 to rank CPI, where 0 is highly corrupt and 100 is very clean.

    What kind of corruption does the CPI measure?

    The data sources used to compile the CPI specifically cover the following manifestations of public sector corruption:

    • Bribery
    • Diversion of public funds
    • Officials using their public office for private gain without facing consequences
    • Ability of governments to contain corruption in the public sector
    • Excessive red tape in the public sector which may increase opportunities for corruption
    • Nepotistic appointments in the civil service
    • Laws ensuring that public officials must disclose their finances and potential conflicts of interest
    • Legal protection for people who report cases of bribery and corruption
    • State capture by narrow vested interests
    • Access to information on public affairs/government activities

    The CPI does NOT cover:

    • Citizens’ direct perceptions or experience of corruption
    • Tax fraud
    • Illicit financial flows
    • Enablers of corruption (lawyers, accountants, financial advisors etc)
    • Money-laundering
    • Private sector corruption
    • Informal economies and markets

    Highlights of the 2021 Report

    • The top-performing countries were Denmark, Finland and New Zealand — all having a corruption perceptions score of 88 — followed by Norway, Singapore and Sweden, all of them scoring 85.
    • In contrast, the worst-performing countries were South Sudan with a corruption perceptions score of 11, followed by Syria (13), Somalia (13, Venezuela (14) and Afghanistan (16).

    India’s performance

    • In 2021, India ranked 86th with the same CPI score of 40.
    • The report highlighted concerns over the risk to journalists and activists who have been victims of attacks by the police, political militants, criminal gangs and corrupt local officials.
    • Civil society organizations that speak up against the government have been targeted with security, defamation, sedition, hate speech and contempt-of-court charges, and with regulations on foreign funding.

     

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  • What is World Economic Forum’s Davos Agenda ’22?

    PM Modi has made a special address ahead of the theme-setting World Economic Forum (WEF) Agenda on the ‘State of the World’ at Davos.

    About World Economic Forum (WEF)

    • WEF is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland.
    • It was founded on 24 January 1971 by German engineer and economist Klaus Schwab.
    • The foundation, which is mostly funded by its 1,000 member companies – typically global enterprises with more than five billion US dollars in turnover – as well as public subsidies.
    • It aims at improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

    Major reports released:

    • Engaging Tomorrow Consumer Report
    • Inclusive growth & Development Report
    • Environmental Performance Index
    • Global Competitive Index
    • Global Energy Architecture Performance Index Report
    • Global Gender Gap Report
    • Global Information Technology Report
    • Human Capital Report
    • Inclusive growth & Development Report
    • Global Risk Report
    • Travel and Tourism Competitiveness Report by WEF

    Important agenda: Davos meeting

    • The WEF is mostly known for its annual meeting at the end of January in Davos, a mountain resort in the eastern Alps region of Switzerland.
    • The meeting brings together some 3,000 paying members and selected participants – among which are investors, business leaders, political leaders, economists, celebrities and journalists.

    Why is WEF important?

    • Common platform: The WEF summit brings together the who’s-who of the political and corporate world, including heads of state, policymakers, top executives, industrialists, media personalities, and technocrats.
    • Influence global decision-making: Deliberations at the WEF influence public sector and corporate decision-making.
    • Discusses global challenges: It especially emphasizes on the issues of global importance such as poverty, social challenges, climate change, and global economic recovery.
    • Brings in all stakeholders: The heady mix of economic, corporate, and political leadership provides an ideal opportunity for finding solutions to global challenges that may emerge from time to time.

    What are the main initiatives?

    • Agenda 2022 will see the launch of other WEF initiatives meant for:
    1. Accelerating the mission to net-zero emissions
    2. Economic opportunity of nature-positive solutions
    3. Cyber resilience

    Criticisms of WEF

    • WEF has been criticized for being more of a networking hub than a nebula of intellect or a forum to find effective solutions to global issues.
    • It is also criticized for the lack of representation from varied sections of the civil society and for falling short of delivering effective solutions.

    Way forward

    • WEF sees large-scale participation of top industry, business leaders, civil society, and international organizations every year.
    • This collaboration is necessary for addressing global concerns such as climate change and pandemic management.
    • It is one of such few platform, that provides an opportunity for collaboration through comprehensive dialogue.

     

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  • World Employment and Social Outlook – Trends, 2022

    Global unemployment is projected to stand at 207 million in 2022 (21 million more than in 2019 before the COVID-19 pandemic began) says ILO World Employment and Social Outlook – Trends 2022.

    World Employment and Social Outlook – Trends 2022

    • The report examines the impacts of the crisis on global and regional trends in employment, unemployment and labour force participation, as well as on job quality, informal employment and working poverty.
    • It also offers an extensive analysis of trends in temporary employment both before and during the COVID-19 crisis.

    Key highlights

    (1) Job Losses in 2022

    • It is estimated that in 2022 around 40 million people will no longer be participating in the global labour force.
    • The downgrade in the 2022 forecast reflects the impact of ever new variants of COVID-19 on the world of work.
    • Global working hours in 2022 will be almost two per cent below their pre-pandemic level.
    • This is equivalent to the loss of 52 million full-time jobs.

    (2) Pauperization

    • The pandemic has pushed millions of children into poverty.
    • It is estimated that in 2020, an additional 30 million adults fell into extreme poverty (living on less than $1.90 per day in purchasing power parity) while being out of paid work.
    • The number of extreme working poor — workers who do not earn enough through their work to keep themselves and their families above the poverty line — rose by eight million.

    (3) Impact on women

    • Women have been worse hit by the labour market crisis than men and this is likely to continue.
    • The closing of education and training institutions will have long-term implications for young people, particularly those without internet access.

    Key suggestions

    • There is the need for a broad-based labour market recovery — the recovery must be human-centred, inclusive, sustainable and resilient.
    • The recovery must be based on the principles of decent work — including health and safety, equity, social protection and social dialogue.

    Back2Basics: International Labour Organization (ILO)

    • The ILO is a UN agency whose mandate is to advance social and economic justice through setting international labour standards.
    • Founded in 1919 under the League of Nations, it is the first and oldest specialised agency of the UN.
    • The ILO has 187 member states: 186 out of 193 UN member states plus the Cook Islands.
    • The ILO’s international labour standards are broadly aimed at ensuring accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security and dignity.

    Its Governing Body

    • The Governing body is the apex executive body of the ILO which decides policies, programmes, agenda, budget and elects the Director-General.
    • It meets three times a year, in March, June and November.

    Major reports released:

    1. World Employment and Social Outlook
    2. World Social Protection Report
    3. Global Wage Report

     

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  • Highlights of the Inequality Kills Report

    The COVID-19 pandemic has heightened economic inequalities across the world says the Inequality Kills Report.

    Try substantiating this:

     

    Q. Extreme inequality is a form of ‘economic violence’—where structural and systemic policy and political choices are skewed in favor of the richest and the most powerful people. Critically examine.

    What is the “Inequality Kills” Report?

    • “Inequality Kills: The unparalleled action needed to combat unprecedented inequality in the wake of COVID-19” is a report released in January 2022 by Oxfam, a U.K.-based consortium.
    • The report argues for sustained and immediate action to end the pandemic, address global inequality and initiate concerted measures to tackle the climate emergency.
    • The central argument of the report is that inequality is a death sentence for people that are marginalized by social and economic structures and removed from political decision-making.

    Key highlights

    • Billionaire variants: Identifying this process as “the billionaire variant”, the report says that this vertical aggregation of global wealth into the hands of a few is “profoundly dangerous for our world”.
    • Pauperization: 160 million people were rendered poor during the pandemic, while the ten richest people doubled their fortunes since the start of the pandemic.
    • Vaccine apartheid: Holding governments to account the report identifies “vaccine apartheid” (unequal access to vaccines between countries) and the lack of universal vaccination programs in many countries.
    • Inflation: It also demonstrates how emergency government expenditure (estimated at $16 trillion) that was meant to keep economies afloat during this crisis, inflated stock prices.
    • Collective: This resulted in billionaires’ collective wealth increasing by $5 trillion during the pandemic.

    Why does the report say that inequality kills?

    • For the writers of the report inequality is not an abstract theory.
    • Instead, they see it as institutionalized violence against poorer people.
    • Extreme inequality is a form of ‘economic violence’—where structural and systemic policy and political choices that are skewed in favor of the richest and the most powerful people.
    • This results in direct harm to the vast majority of ordinary people worldwide.

    Implications of inequality

    • Crime and violence: The report identifies higher inequality with more crime and violence and less social trust.
    • Impact on marginalized: The brunt of inequality and the violence is borne, for instance, by women across the world, Dalits in India, Black, Native American and Latin persons in the US and indigenous groups in many countries.
    • Victimization of women: Pointing to the example of women, the problem runs a lot deeper as 13 million women have not returned to the workforce and 20 million girls are at risk of losing access to education.

    Way ahead

    The “Inequality Kills” report proposes far-reaching changes to structures of government, economy and policy-making to fight inequality.

    • Vaccine sharing: It urgently asks for “vaccine recipes” to be made open-source so that every qualified vaccine manufacturer can manufacture them.
    • Taxing the opportunists: The report then asks for governments to claw back the wealth from billionaires by administering solidarity taxes higher than 90% especially on the billionaires that have profited during pandemic.
    • Taxation reforms: The report asks for permanent cancellation of tax havens, progressive taxation on corporations and an end to tax dodging by corporations.
    • Welfare: The report then suggests that this regained wealth be redirected towards building income safety nets, universalizing healthcare for everyone, investing in green technologies and democratizing them, and, investing in protecting women from violence.

     

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  • Philippines approves deal for BrahMos Missile

    In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.

    About BrahMos Missile

    • BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
    •  They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
    • It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
    • The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
    • Such weapons are in the arsenal of most major militaries in the world.

    Its capability

    • BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
    • It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
    • An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.

    Various versions

    • The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
    • Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
    • The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.

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    Back2Basics:

    Explained: India’s Missile Capability

     

  • India appeals against WTO order on Sugar

    India has appealed against a ruling of the World Trade Organisation’s (WTO) trade dispute settlement panel on domestic sugar subsidies, stating that the panel had committed “certain errors of law” in its report.

    What is the case?

    • India’s Minimum Selling Price system for Sugarcane was brought to notice to the WTO by Brazil, Australia and Guatemala.

    What was the complaint against India?

    Australia, Brazil, and Guatemala said India’s domestic support and export subsidy measures appeared to be inconsistent with various articles against WTO’s:

    1. Agreement on Agriculture
    2. Agreement on Subsidies and Countervailing Measures (SCM)
    3. Article XVI (which concerns subsidies) of the General Agreement on Trade and Tariffs (GATT)
    • Domestic Support: All three countries complained that India provides domestic support to sugarcane producers that exceed the de minimis level of 10% of the total value of sugarcane production.
    • Various subsidies: They also raised the issue of India’s alleged export subsidies, subsidies under the production assistance and buffer stock schemes, and the marketing and transportation scheme.
    • Notifying support: Australia accused India of “failing” to notify its annual domestic support for sugarcane and sugar subsequent to 1995-96, and its export subsidies since 2009-10.

    India’s reply to WTO panel

    • India rejected the panel’s findings as “erroneous”, “unreasoned”, and “not supported by the WTO rules”.
    • It argued that the requirements of Article 3 of the SCM Agreement are not yet applicable to India.
    • It has a phase-out period of 8 years to eliminate export subsidies under the agreement.
    • India also argued that its mandatory minimum prices are not paid by the governments but by sugar mills, and hence do not constitute market price support.

    Backgrounder: Sugarcane Pricing in India

    Who determines Sugarcane prices?

    Sugarcane prices are determined by the Centre as well as States.

    1. The Centre announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
    2. The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.

    Minimum Selling Price (MSP) for Sugar

    • The price of sugar is market-driven & depends on the demand & supply of sugar.
    • However, with a view to protecting the interests of farmers, the concept of MSP of sugar has been introduced since 2018.
    • MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.

    Basis of price determination

    • With the amendment of the Sugarcane (Control) Order, 1966, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the Fair and Remunerative Price (FRP)’ of sugarcane in 2009-10.
    • The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • This is done in consultation with the State Governments and after taking feedback from associations of the sugar industry.

    What is FRP?

    • FRP is fixed under a sugarcane control order, 1966.
    • It is the minimum price that sugar mills are supposed to pay to the farmers.
    • However, states determine their own State Agreed Price (SAP) which is generally higher than the FRP.

    Factors considered for FRP:

    • The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:

    a) cost of production of sugarcane;

    b) return to the growers from alternative crops and the general trend of prices of agricultural commodities;

    c) availability of sugar to consumers at a fair price;

    d) price at which sugar produced from sugarcane is sold by sugar producers;

    e) recovery of sugar from sugarcane;

    f) the realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value;

    g) reasonable margins for the growers of sugarcane on account of risk and profits.

     

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  • India improves position in Henley Passport Index, 2021

    India now ranks at 83rd position in the Henley Passport Index, climbing seven places from 90th rank last year.

    Henley Passport Index

    • The Henley & Partners publishes the ranking and the Index of the world’s passports according to the number of destinations their holders can access without a prior visa.
    • It was launched in 2005.
    • The ranking is based on data from the IATA (International Air Transport Association), a trade association of some 290 airlines, including all major carriers.
    • The index includes 199 different passports and 227 different travel destinations.
    • The data are updated in real time as and when visa policy changes come into effect.

    India’s performance this year

    • India is ranked at 83rd position and shares the rank with Sao Tome and Principe in Central Africa, behind Rwanda and Uganda.
    • It now has visa-free access to 60 destinations worldwide with Oman and Armenia being the latest additions.
    • It has added 35 more destinations since 2006.

    Global performance

    • Japan and Singapore has topped the list.
    • The US and the UK passports regained some of their previous strength after falling all the way to eighth place in 2020.
    • The passport of the Maldives is the most powerful in South Asia (58th) enabling visa-free entry to 88 countries.
    • In South Asia, Bangladesh (103rd) is ahead of Pakistan (108th) and Nepal (105th).
    • Afghanistan undoubtedly stands at the last rank.

     

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  • CSTO troops deployed in Kazakhstan

    A Moscow-led military alliance called Collective Security Treaty Organization (CSTO) dispatched troops to help quell mounting unrest in Kazakhstan.

    Ongoing situation in Kazakhstan

    • Long seen as one the most stable of the ex-Soviet republics of Central Asia, energy-rich Kazakhstan is facing its biggest crisis.
    • There are ongoing protests over rising fuel prices escalated into widespread unrest.
    • The nationwide protests are also signifying a wider, region-wide longing for political change.
    • Under increasing pressure, Kazakh President appealed to the Russia for CSTO army to be deployed in Kazakhstan.

    Concerns over CTSO troop’s deployment

    • It is argued that domestic turmoil could be utilized by Russian nationalists for asserting their claims in Northern Kazakhstan.

    What is CSTO?

    • The CSTO is a Russia-led military alliance of seven former Soviet states that was created in 2002.
    • Current CSTO members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan.
    • Afghanistan and Serbia hold observer status in the CSTO.
    • Its purpose is to ensure the collective defence of any member that faces external aggression.

    Outlined functions of CSTO

    • Version of NATO: It has been described by political scientists as the Eurasian counterpart of NATO, which has 29 member states, while the CSTO has just six.
    • Arms trade and mutual defense: CSTO supports arms sales and manufacturing as well as military training and exercises, making the CSTO the most important multilateral defence organization in the former Soviet Union.
    • Non- proliferation of weapons:  CSTO also coordinates efforts in fighting the illegal circulation of weapons among member states and has developed law enforcement training for its members in pursuit of these aims.

    What does CSTO membership provide?

    • Barring relations with NATO: While CSTO membership means that member states are barred from joining other military alliances, limiting, for example, their relationship with NATO.
    • Benefits in arms import from Russia: Its members receive discounts, subsidies, and other incentives to buy Russian arms, facilitating military cooperation.
    • Assurance against military conquest: In the CSTO, aggression against one signatory is perceived as aggression against all. It however remains unclear whether this feature works in practice.

     

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  • China’s new Border Law and India

    China’s new law on land borders has come into effect on January 1.

    Key takeaways of the Border Law

    China passed the law for the “protection and exploitation of the country’s land border areas”.

    • Sacrosanct nature of Borders: Under the law, “the sovereignty and territorial integrity of China are sacred and inviolable”.
    • Border defense: It mandates the state to take measures “to strengthen border defense, support economic and social development as well as opening-up in border areas.
    • Habitation near borders: It seeks to improve public services and infrastructure in such areas, encourage and support people’s life and work there.
    • Consultations with neighbors: The law asks the state to follow the principles of equality, mutual trust, and friendly consultation, handle land border related-affairs with neighboring countries.

    Why did China bring it?

    Several factors may have led to China’s move.

    • Aggressive actions: The new law is a tool the Chinese government will use if it wants, as its actions have been aggressive even before this law.
    • Maritime assertion: This law reflects Beijing’s renewed concerns over the security of its land border while it confronts a slew of unsettled disputes on its maritime front (in the South China Sea).
    • Land boundary issues: The confrontations on the Sino-Indian borders in recent years may have reminded Beijing about this law.
    • Fear of radicalization: Afghanistan under the Taliban may become a hotbed for terrorism and extremism that could spread to Xinjiang amongst Uyghurs.
    • One-China Policy: China officially (constitutionally) claims mainland China and Taiwan as part of their respective territories. It has similar assertions for Hong Kong.

    Does it concern India?

    • No specific mention: Although the law is not meant specifically for India, it is bound to have some impact.
    • May hamper disengagement:  The date for the round meeting is still awaited, amid concerns that the Chinese delegation can use the new law to try to bolster their existing positions.
    • Possible misadventures: The new law provides for the construction of permanent infrastructure close to the border. This has been observed in Arunachal Pradesh.

    What impact can it have on India-China relations?

    • Onus on China: The view is still divided. Much depends on China’s actions, regardless of the new law.
    • Unilateral action: The new law might be the latest attempt by China to unilaterally delineate and demarcate territorial boundaries with India and Bhutan.
    • Maintain status-quo: The new law will make China dig its heels in, on the ongoing standoff as well as for the resolution of the larger boundary issue.
    • Permanent demarcation of borders: There is also a possibility that Beijing appears to be signaling a determination to resolve the border disputes on its preferred terms.

    Recent mis-adventures

    • China has been building “well-off” border defense villages across the LAC in all sectors, which the new law encourages.
    • President Xi visited a village in Tibet near the border with Arunachal Pradesh followed by renamings.
    • China has constructed a bridge in Eastern Ladakh connecting the North and South Banks of Pangong Tso.

    Conclusion

    • The law only “states the obvious” as “every country is in the business of protecting its territorial integrity.
    • The big question is what your territory is, and there we don’t agree with each other.

     

    [RSTV Archive] India-China Ties Post-Galwan

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  • Pakistan ready to host SAARC Summit

    Pakistan Foreign Minister Shah has said that his country was ready to host the 19th SAARC Summit and invited India to join it virtually if it is not willing to visit Islamabad.

    About SAARC

    • The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia.
    • Members: Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.
    • It was established in Dhaka on 8 December 1985. Its secretariat is based in Kathmandu, Nepal.
    • The organization promotes the development of economic and regional integration.
    • It maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union.

    Formation of SAARC

    • After the USSR invaded Afghanistan in 1979, the security situation in South Asia rapidly deteriorated.
    • In response, the foreign ministers of the initial seven members met in Colombo in 1981.
    • At the meeting, Bangladesh proposed forming a regional association that would meet to discuss matters such as security and trade.
    • While most of the countries present were in favour of the proposal, India and Pakistan were skeptical.
    • Eventually, both countries relented and in 1983 in Dhaka, joined the other five nations in signing the Declaration.

    Economic significance of SAARC

    • The SAARC comprises 3% of the world’s area, 21% of the world’s population and 4.21% (US$3.67 trillion) of the global economy, as of 2019.
    • It launched the South Asian Free Trade Area in 2006.

    Major accomplishments

    • Forum for discussions: It has provided a platform for representatives from member countries to meet and discuss important issues, something that may have been challenging through bilateral discussions.
    • Diplomatic tool: India and Pakistan for example would struggle to publicly justify a meeting when tensions between the two are particularly high, but both countries often come together under the banner of SAARC.
    • Crisis management: The bloc has also made some headway in signing agreements related to climate change, food security and combating the Covid-19 crisis.
    • Technology: It has been another avenue of cooperation marked by the launch of South Asia Satellite by India.

    Limitations to SAARC

    • Small scale: Despite its lofty ambitions, SAARC has not become a regional association in the mould of the European Union or the African Union.
    • Internal divisions: Its member states are plagued by internal divisions, most notably the conflict between India and Pakistan.
    • Trade disputes: This in turn has hampered its ability to form comprehensive trade agreements or to meaningfully collaborate on areas such as security, energy and infrastructure.
    • Terrorism: The last SAARC summit to be held in Pakistan has been cancelled several times due to many nations pulling out of the summit citing fears of regional insecurity.

    Why must India rethink on SAARC?

    • Extended diplomacy: India continued to attend Shanghai Cooperation Organisation (SCO) meetings along with their Pakistani counterparts.
    • Pandemic mitigation: Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
    • Economic cooperation: Apart from the overall GDP slowdown, global job cuts has led to fall in revenue for migrant labour and expatriates from South Asian countries.
    • Countering China: While dealing with China, a unified South Asian platform is a crucial countermeasure for India.

     

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