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Type: Op-ed

  • Gaps in draft regulations on Extended Producer Responsibility (EPR)

    Context

    In October, the Environment Ministry published draft regulations on Extended Producer Responsibility (EPR), set to come into effect by the end of this year. These regulations denote a backslide, particularly with respect to integration of the informal sector.

    What is EPR?

    • Extended Producer Responsibility (EPR) requires the manufacturer of a product, or the party that introduces the product into the community, to take responsibility for its life cycle.
    • An FMCG company should not only account for the costs of making, packing and distributing a packet of chips, but also for the collection and recycling/reuse of the packet.

    Shortcomings in the guidelines

    The guidelines fall short in three areas: people, plastics and processing.

    [1] Integration of informal sector is lacking

    • By failing to mention waste pickers or outlining mechanisms for their incorporation under EPR, the guidelines are retrogressive.
    • For decades, waste pickers, working in dangerous and unsanitary conditions, have picked up what we throw away.
    • Besides, by diverting waste towards recycling and reuse, waste pickers also subsidise local governments responsible for solid waste management.
    • Further, they reduce the amount of waste accumulating in cities, water bodies and dumpsites and increase recycling and reuse, creating environmental and public health benefits.
    • Between 1.5 and 4 million waste pickers in India work without social security, health insurance, minimum wages or basic protective gear.
    • Suggestions:  An effective EPR framework should address the issue of plastics and plastic waste management in tandem with the existing machinery, minimise duplication and lead to a positive environmental impact, with monitoring mechanisms including penalties for non-compliance.
    • EPR funds could be deployed for mapping and registration of the informal sector actors, building their capacity, upgrading infrastructure, promoting technology transfer, and creating closed loop feedback and monitoring mechanisms.

    [2] The scope of plastic covered need to be altered

    • The EPR guidelines are limited to plastic packaging.
    • There are other multi-material plastic items like sanitary pads, chappals, and polyester that pose a huge waste management challenge today, but have been left out of the scope of EPR.
    • Three categories of plastic packaging: Plastic packaging can be roughly grouped into three categories: recyclable and effectively handled by the informal sector, technologically recyclable but not economically viable to recycle, technologically challenging to recycle (or non-recyclable).
    • [1] Rigid plastics like PET and HDPE are effectively recycled.
    • Suggestion: The government could support and strengthen the informal recycling chain by bridging gaps in adequate physical spaces, infrastructure, etc.
    • [2] Typically flexible plastics like LDPE and PP bags are recyclable, but due to their contamination with organic waste, lightweight, and high volume, the costs of recycling are prohibitively expensive relative to the market value of the output.
    • Suggestion: Market value for these plastics can be increased by increasing the demand for and use of recycled plastics in packaging, thus creating the value to accommodate the current costs of recycling.
    • [3] Multi-layered and multi-material plastics are low weight and voluminous, making them expensive to handle and transport.
    • Since they are primarily used in food packaging, they often attract rodents, making storage problematic.
    • Even if this plastic is picked, recycling is technologically challenging as it is heterogeneous material.
    • The Plastic Waste Management Rules mandated the phase-out of these plastics.
    • However, in 2018, this mandate was reversed.

    [3] Processing technologies need to be closely evaluated

    • Not all processing is recycling.
    • Processes like waste-to-energy, co-processing and incineration have been proven to release carbon dioxide, particulate matter, harmful dioxins and furans which have negative climate and health impacts.
    • While the environmental impact and desirability of these processes continues to be debated, the draft regulations legitimise them to justify the continued production of multi-layered plastics.
    • Technologies like chemical recycling and pyrolysis are capital-intensive, yielding low returns and running into frequent breakdowns and technological problems.
    • They also release carbon dioxide and other pollutants.
    • These end-of-life processes are economically, environmentally and operationally unsustainable.
    • A number of gasification, pyrolysis and other chemical recycling projects have figured in accidents such as fires, explosions and financial losses.

    Way forward

    • Address issues of the informal sector: The consultation process should involve informal workers.
    • Alter the scope of plastics covered: The scope of plastics covered by the guidelines could be altered to exclude those plastics which are already efficiently recycled and to include other plastic and multi-material items.
    • Processing technologies should be closely evaluated: And end-of-life processing technologies should be closely evaluated, based not only on their health and environmental impacts, but also on the implications for continued production of low-quality and multi-layered plastics.

    Consider the question ” The Environment Ministry published draft regulations on Extended Producer Responsibility (EPR). Examine the issues with the regulations and suggest the way forward” 

    Conclusion

    In conclusion, the government should redo the consultation process for the draft guidelines.

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  • A chance to tap India’s high equity in Myanmar

    Context

    The recent short visit to Myanmar by India’s Foreign Secretary had a clearly-etched mandate: to deepen cooperation with an important neighbour. His mission succeeded to a large extent, but challenges remain.

    Background of the current political scenario in Myanmar

    • Transition to democracy and derailment: Since the military coup on February 1, 2021, the international community has stayed divided on how to address the derailment of Myanmar’s transition to democracy.
    •  For a decade, the country’s system based on power-sharing between the military and elected representatives ran well enough.
    • An overwhelming electoral victory of the National League for Democracy (NLD) led by Daw Aung San Suu Kyi in November 2020, unnerved the military leadership.
    • The Tatmadaw (Myanmar’s military) moved faster, seizing power in violation of the Constitution and putting down the Opposition with an iron hand.
    • Global reaction: Global dismay was evident in the western sanctions, but others such as Russia saw the opportunity to strengthen ties with the new rulers.
    • China took urgent steps to stabilise and expand cooperation with the military regime.
    • The Association of Southeast Asian Nations (ASEAN) first showed creativity through its ‘Five-Point Consensus’ formula, but later its unity stood damaged once Myanmar’s top leader Senior General Min Aung Hlaing refused to cooperate.

    India’s position and bilateral concerns

    • In Indian foreign Secretary Mr. Shringla visit he succeeded in holding substantive discussions with various stakeholders.
    • India’s position: India’s position, as conveyed to Myanmar, is similar to and supportive of ASEAN: release of political prisoners; resolution of issues through dialogue; cessation of “all violence”; and full cooperation with ASEAN.
    • Assistance for capacity building: In recent years, India has assisted Myanmar through capacity-building programmes for strengthening the transition to democracy.
    • This assistance remains available, but it is not an offer of mediation by India in the military-NLD conflict.
    • This burden will have to be borne by ASEAN.
    • India’s concerns: India’s principal concerns pertaining to border security and stability in its neighbourhood were clearly conveyed, especially the noticeable escalation of activities of anti-India insurgent groups.
    • Refugee issue: The second issue — the outcome of Myanmar’s instability — is that of refugees. Several thousands of Myanmar people have sought shelter in Mizoram.
    • This will only be reversed by a political settlement in Myanmar, through dialogue.
    • Economic cooperation: Economic cooperation has always been a major agenda item in all bilateral discussions with Myanmar.
    • Central to this is India’s long-delayed commitment to “expeditious implementation” of mega initiatives such as the Trilateral Highway and Kaladan projects.

    Way forward

    • China is not the only friend: India continues to have high equity in Myanmar, which it must now carefully leverage.
    •  It is reflected in the special gesture made by Senior General Min Aung Hlaing to receive Mr. Shringla and hold detailed discussions in Yangon. This is unusual.
    • The protocol departure for Mr. Shringla revealed current political realities which should be carefully factored in against the argument that China is the only friend Myanmar has.
    • Leverage the gainst of the visit: India can leverage the gains of this visit and keep up the momentum by inviting Myanmar’s Foreign Minister at an appropriate time as well as other important stakeholders to India for deliberations with their counterparts here.

    Conclusion

    The single goal should be to put Myanmar back on the path of becoming “a stable, democratic and federal union.

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  • Extending outpatient health care coverage

    Context

    Over the past two decades, initiatives announced to extend health care coverage to the indigent sections have come under criticism due to their near-exclusive focus on hospitalisation (inpatient, IP) care.

    Significance of outpatient health care

    • What is outpatient health care: Outpatient (OP) health care, mainly comprising doctor consultations, drugs, and tests, can be called ‘the elephant in the room’ of Indian public health care policy.
    • OP expenses have the majority share in total out-of-pocket (OOP) expenditure on health.

    Why do we need to extend OP care coverage?

    • How IP care differs from OP care? IP care comprises high-impact and unavoidable episodes that are less prone to misuse than OP care, for which demand is considerably more sensitive to price and is thus more prone to overuse under health insurance.
    • IP insurance prioritised: This logic, among other reasons, has led to IP insurance schemes being prioritised.
    • [1] OP care and preventive care is neglected: While a price-sensitive demand for OP care entails that it could be misused under insurance, it also means that OP care is the first to come under the knife when there is no insurance.
    • In India, where there are many public IP insurance schemes but no OP coverage, this incentive is further amplified.
    • The mantra of ‘prevention is better than cure’ thus goes for a toss.
    • [2] Against economic sense: It defies economic sense to prioritise IP care over OP care for public funds.
    • Preventive and primary care services which often come with externalities, elicit little felt need and demand, and must therefore be the primary recipients of public investment.
    • Not conducive to epidemiological profile: Greater investments in IP care today translate to even greater IP care investments in future, further reduction in primary care spending, and ultimately lesser ‘health’ for the money invested.
    • None of these are conducive to the epidemiological profile that characterises this country.

    Issues with using private commercial insurance to extend OP care coverage nationwide

    • Some recent policy pronouncements by the Centre have conveyed an inclination to expand healthcare coverage with little fiscal implications for the government.
    • Challenges:
    • [1] The OP practices are under-regulated and there is a lack of standards.
    • [2] The difficulty to monitor OP clinical and prescribing behaviours and the concomitant higher likelihood of malpractices.
    • [3] Low public awareness of insurance products and a low ability to discern entitlements and exclusions.
    • [4] Add to it the inexperience that a still under-developed private OP insurance sector brings.
    • All these entail tremendous and largely wasteful costs and administrative complexity, and it would be of little help even if the government was to step in with considerable subsidies.

    Suggestion

    • Need for fiscal and time commitment: Significant improvements in healthcare are implausible without significant fiscal and time commitments.
    • No perfect model: There is no ‘perfect’ model of expanding healthcare — the emphasis must be on finding the best fit.
    • Implementing even such a best fit could involve adopting certain modalities with known drawbacks.
    • Expand public spending: The focus must be on expanding public OP care facilities and services financed mainly by tax revenues.
    • For India, wisdom immediately points to successful countries that are (or were, at one point) much closer to its socioeconomic fabric, such as Thailand, than countries like the U.S. which we currently look to emulate.
    • Now, the sparse number and distribution of public facilities offers various modes of rationing care, and their expansion is likely to result in a considerable spike in demand.
    • Contracting with private players: Contracting with private players based on objective and transparent criteria would also be called for, with just enough centralised supervision to deter corruption while preserving local autonomy.
    • To deter supply-side malpractices, low-powered modes of provider payment, such as capitation, may be considered for private providers wherever possible.

    Conclusion

    There are several compelling reasons for extending outpatient health care coverage even though there are several challenges to overcome to achieve this.

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  • India needs thoughtful legislation on digital currency

    Context

    The dramatic changes in technology have created new challenges for the law, lawmakers, courts and lawyers to confront.

    Challenges posed by technological transformation

    • Technology has outpaced the law, and lawmakers are being challenged by how quickly “we the people” have embraced technological transformations.
    • Challenges of regulation: Challenges include regulation of digital media platforms, censorship of Over The Top (OTT) streaming services, fixing accountability for procuring and deploying spyware like Pegasus, dealing with the bias within artificial intelligence etc.
    • Regulation of cryptocurrencies: In probably no other area are lawmakers required to appreciate science and technology than in cryptocurrency.
    • With 10 crore users of cryptocurrency and crypto assets in India, this ever-expanding market is almost entirely unregulated.

    Practices or legislative models that have been adopted the other countries for regulation of cryptocurrencies

    • KYC, AML and CFT: Countries where cryptocurrencies and crypto-assets are legal have frameworks that mandate KYC (know your customer), AML (Anti-Money Laundering) mechanisms and demand adherence to CFT (Combating Financing of Terrorism) requirements.

    [1] How Singapore regulates crypto-currencies?

    • Singapore adopted the approach which favours strong regulation rather than ban.
    • Common law to regulate traditional and cryptocurrencies: Singapore has the Payments Services Act, 2020 that has streamlined both traditional and cryptocurrencies under one law.
    • Provision for licences: The law also provides a framework to obtain licences to operate crypto businesses.

    [2] How Switzerland regulates cryptocurrencies?

    • Switzerland has also favoured the strong regulation model overseen by an already established financial regulator.
    • Provision for licences: The Swiss Financial Market Supervisory Authority (FINMA) that oversees the country’s financial markets mandates that all virtual asset service providers, including cryptocurrency exchanges must be licenced.
    • KYC, AML and CFT procedures must be strictly complied with. These are the checks on the use of cryptocurrencies and crypto assets that could facilitate criminal enterprise.

    [3] Approach adopted by the US

    • Crypto exchanges to be transmitters: The US does not consider cryptocurrency to be legal tender but defines cryptocurrency exchanges to be money transmitters.
    • Cryptocurrencies as property: The Internal Revenue Service (IRS) treats cryptocurrency as property for US federal taxation purposes.
    • Exchanges must obtain requisite licences from the Financial Crimes Enforcement Network and implement the standard AML and CFT requirements that have become the norm in most jurisdictions that regulate cryptocurrencies.
    • Revenue potential: One of the most important lessons to absorb from the US is the revenue potential of cryptocurrencies and crypto assets.

    Conclusion

    In India, the need of the times is thoughtful legislation and rigorous regulation of cryptocurrencies and crypto-assets that are already here and being used.

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  • Electoral reform is welcome, but shouldn’t be selective

    Context

    The Election Laws (Amendment) Bill that seeks to link the electoral rolls with the Aadhaar database has been passed by both the Houses of the parliament.

    Three electoral reforms

    • A wide range of electoral reform proposals has been pending with the government, several of them for over two decades.
    • The three reforms — common electoral rolls for Vidhan Sabha and panchayat elections, extending the qualifying date for registration of young new voters, and linking of Aadhaar with electoral rolls — taken up by the Union Cabinet on December 15 are, therefore, significant.

    [1] Common electoral rolls

    • For years, the ECI has been advocating a common electoral roll for all elections.
    • Currently, separate electoral rolls are maintained for elections to the Lok Sabha, Vidhan Sabha and local government bodies (panchayats or municipal).
    • Role of ECI and SECs: There are two types of election management bodies in the country — the ECI that conducts the Lok Sabha and Vidhan Sabha elections and SECs that conduct panchayat and municipal elections.
    • The process for making electoral rolls is laid down in the Registration of Electors Rules, 1960.
    • The SECs have the option of either adopting the electoral rolls created by the ECI or preparing such rolls on their own.
    • Most prefer to use the rolls prepared by the ECI.
    • Some states, however, develop their rolls independently.
    • These are Uttar Pradesh, Uttarakhand, Madhya Pradesh, Kerala, Odisha, Assam, Arunachal Pradesh, Nagaland and the Union Territory of Jammu and Kashmir.
    • Considering that a voter for all three tiers of elected bodies is the same, why is it that she finds her name missing from one of the rolls, mostly the panchayat rolls?
    • This is particularly surprising when the officials responsible for making both these rolls are the same.
    • A common electoral roll is thus a logical solution. 

    Benefits of common electoral rolls

    • Tackling stuffing voters: A common experience has been the stuffing of bogus voters in the panchayat/municipal rolls.
    • Corrupt practices are proportionately higher in PRI polls.
    • Avoid the involvement of teachers in the non-teaching work: The process of making electoral rolls is usually done by the schoolteachers.
    • Their involvement in non-teaching work takes its toll.
    • Cost-saving: A common electoral roll will obviate the need for deploying them repeatedly, besides saving enormous costs.

    Suggestions for preparation of common electoral rolls

    • Issue joint instructions: The ECI and SECs can issue joint instructions for preparing the common rolls. The roll-making machinery stays the same.
    • Pilot studies may be conducted in random constituencies to identify the discrepancies between two sets of rolls and their reasons.

    What are the constitutional and legal changes required?

    • Amendment in Article 243K and 243ZA: The SECs derive their powers to supervise local body elections from Articles 243K and 243ZA of the Constitution.
    • Changes in State laws: All state governments would have to change their electoral laws to adopt ECI electoral rolls for local elections.

    [2] Eligibility date of new voters

    • According to Section 14(b) of the Representation of People Act of 1950, only those who have turned 18 on or before January 1 of the year are to be registered.
    • This implies that all those who turn 18 between January 2 and December 31 of a year must wait till the next year.
    • This technicality results in the exclusion of a large section of 18-year-olds.

    Suggestion by ECI on eligibility date

    • The ECI had sent a letter to the Law Ministry on November 4, 2013, which recommended the issuing of a voter card to an individual ideally on their 18th birthday, or updating voter rolls every month or quarter.
    • A committee of the Ministry of Law and Justice under Sushil Kumar Modi has proposed quarterly cut-off dates for voter registration — January 1, April 1, July 1 and October 1.

    [3] Aadhar linking

    • The proposal to link electoral rolls with Aadhaar was first mooted by the ECI in 2015 but work on it had to be stopped when the Supreme Court ruled that Aadhaar cannot be used except voluntarily for beneficiary-oriented schemes.
    • Benefits of linking: The linking will help in identifying duplicate voters, something that ECI has been desperately attempting for years using various “de-duplication” software with limited success.

    Consider the question “What are the concerns with linking of Aadhar and electoral rolls? Suggest the way forward.”

    Conclusion

    Any progress in addressing the vexed issue of electoral reform — even in a piecemeal manner — is welcome. The time has, however, come for the government to consider the 40-plus pending proposals, instead of selectively going for some reforms.

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  • In electoral reform bill’s passing, a missed opportunity

    Context

    The Election Laws (Amendment) Bill, 2021 was passed in the Lok Sabha recently. It seeks to link electoral rolls with the Aadhaar ecosystem.

    What are the concerns with linking of Aadhar with electoral roll?

    [1] Aadhar is not proof of citizenship

    • Aadhaar is not meant to be a citizenship proof but only a digital identity for all residents.
    • Residence of 182 days can make even a non-citizen eligible for an Aadhaar ID.

    [2] Aadhar is not address proof

    • According to public statements by several government functionaries, Aadhaar was only meant to be identity proof but not address proof.
    • Electoral roll is based on Aadhar: In contrast, the RER clearly stipulates address to be a key index for electoral rolls.
    • Different enrollment process: Moreover, the enrolment processes for voters’ lists and Aadhaar are completely different.
    • Whereas Aadhaar enrolment is based on production of existing documents and the “introducer system”, voter enrolments involve physical verification and “house visits” by a registration officer or representative.

    [3] No audit report on the efficacy of Aadhaar deduplication or on the authenticity of the Aadhaar database

    • Even the Supreme Court accepted the Unique Identification Authority of India’s (UIDAI) claims on the integrity of the Aadhaar database at face value without any scrutiny.
    • Risk of exclusion error: Using Aadhaar to clean the electoral rolls involved the risk of disenfranchisement, especially of the marginalised communities.
    • It is to be noted that there is ample publicly documented evidence of large-scale exclusion in PDS and welfare disbursal due to Aadhaar.

    [4] Conflict of interest

    • UIDAI is under government control: Maintenance of the voters’ lists is a primary responsibility of the ECI, which is an independent constitutional body, whereas Aadhaar is a government instrument and UIDAI is under government control.
    • Since the ECI has no control on either enrolment or deduplication in Aadhaar, it appears inappropriate — and a potential conflict of interest — to use Aadhaar for electoral rolls.
    • In particular, since Aadhaar is directly used for disbursal of welfare and direct benefit transfers, linking it with voter ID may provide a direct method for the government to influence and manipulate voters.

    [5] Risk of profiling and targeting of voters

    • Aadhaar is a ubiquitous ID that is used in a variety of applications.
    • Linking it with the voter ID will open up avenues for profiling and targeting of voters.
    • No audit for purpose limitation: This is of particular concern because neither the UIDAI nor the ECI have publicly audited architectures for purpose limitation and protection against insider attacks.
    • While profiling using public data is not illegal according to current laws, both the electorate and Parliament need to clearly understand the risks of such profiling.
    • It is far easier to win elections through digital analysis of electoral rolls than through attacking the electronic voting process, especially when election results are available at booth-level granularity
    • Both privacy and integrity of the electoral rolls are of paramount importance in the digital age, and the clear tension between the two makes the problem challenging.

    Way forward

    • Use of cryptography: The RER of 1960 clearly opted for transparency as a means to the integrity of the electoral rolls, thereby ensuring that all additions and deletions can be publicly audited.
    • However, with the possibility of digital processing of electoral data, the risks associated with such complete transparency have increased manifold.
    • Yet, there are several modern techniques from cryptography and computer science that may help mitigate the risks by enabling both privacy and public auditability.

    Consider the question “The Election Laws (Amendment) Bill, 2021 enable the linking of electoral rolls with the Aadhaar ecosystem. What are the objectives of such linking and concerns raised against it?”

    Conclusion

    An electoral reforms bill at the onset of 2022 needed to explore and address these issues head-on.

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  • Impact of Reorganisation Act on Ladakh’s autonomy

    Context

    The article deal with the impact of the passage of the Jammu and Kashmir Reorganisation Act of 2019 on Ladakh’s autonomy or participatory democracy.

    What has changed?

    • Hill Councils: The Autonomous Hill Development Councils of Leh and Kargil read along with the framework of J&K’s special status and its bicameral legislative system gave Ladakh autonomy and participatory democracy.
    • The Hill Councils had the powers over land in Ladakh while the majority of the bigger concerns regarding land remained protected under Article 370 and J&K’s robust land protection laws.
    • Power to recruit the officers: Gazetted officers were recruited through the State Public Service Commission.
    • The District Service Selection Board made recruitments at the district level.
    • But today, there is no Public Service Commission in Ladakh and the Hill Councils’ power to make recruitments at the district level has also been affected by the Lieutenant Governor (LG)’s presence.
    • No law to protect the jobs: Technically, there also exists no law in Ladakh now that protects the land or even the jobs.
    • Loss of representation: the Reorganisation Act has taken away the six seats of the Members of Legislative Assembly and the Legislative Council and wakened the functioning of the Hill Councils.
    • The only elected representation from Ladakh outside of Ladakh is a lone MP.

    Conclusion

    Steps need to be taken to address the issues related to the lack of representation in Ladakh in the wake of the passage of the Reorganisation Act of 2019.

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  • India is keeping an eye on Central Asia

    Context

    The government is inviting the leaders of the five Central Asian countries — Tajikistan, Uzbekistan, Turkmenistan, Kazakhstan and Kyrgyzstan — as guests for Republic Day on January 26.

    Significance of Central Asian region for India

    • Return of Taliban in Afghanistan: The Taliban takeover in Afghanistan has made Central Asia a region where great contestations for influence are unfolding.
    • There is a growing awareness that for leveraging influence in Kabul and harvesting that influence in the form of material gains, a firm footing in Central Asia is a prerequisite.
    • Economic dimension: Given the vast untapped mineral wealth of the region encompassing the five Central Asian countries and Afghanistan — estimated to be worth a few trillion dollars — there is a significant economic dimension to the unfolding saga.
    • Geopolitical angle: Washington hopes to create in Central Asia a vector of its Indo-Pacific strategy to contain China and Russia. At the same time, governments in Moscow and Beijing are circling the wagons.

    Suggestions for India

    • India needs to work on an intricate network of relationships with the regional states while remaining mindful of the “big picture”.
    • Delhi’s non-aligned mindset needs to be turned into a strategic asset to navigate its long-term interests.
    • India’s membership of the BRICS and SCO will help.
    • Cooperation of  Russia and China: The deepening of the traditional Indo-Russian mutual understanding has injected dynamism into Delhi’s regional strategy on the whole.
    •  It is bound to have a calming effect on India’s tensions with China.
    • Delhi cannot have an effective Central Asia strategy without the cooperation of these two big powers.
    • Regional connectivity: India can use the card of regional connectivity to stimulate partnerships.
    • The time may have come to reopen the files on the TAPI and IPI gas pipeline projects. Both involve Pakistan.
    • Normalisation of India-Russia ties: Russia is well-placed to act as guarantor and help build both these pipelines, while China too will see advantages in the normalisation of India-Pakistan ties.

    New geoeconomic partnership

    • Recently concluded third meeting of the India-Central Asia Dialogue in Delhi served a purpose to sensitise the Central Asian interlocutors that it attaches primacy to geoeconomics.
    • But India will have a challenge on its hands to flesh out the “4Cs” concept that External Affairs Minister S Jaishankar presented at the event — commerce, capacity enhancement, connectivity, and contact being the four pillars of a new geoeconomic partnership.
    • The key areas are transit and transport, logistics network, regional and international transport corridors, free trade agreements, manufacturing industry and job creation.
    • They ought to be front-loaded into India’s Central Asian strategy.
    • Certainly, the EAEU integration processes must be speeded up.

    Consider the question “With changing geopolitical scenario, India’s stake in Central Asia has drastically increased. In the context of this, examine India’s outreach efforts toward the region and the challenges it faces in it.”

    Conclusion

    A host of new possibilities open up if India’s initiative on Central Asia runs on a parallel track with an improvement in relations with China.

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  • What rising inequality means

    Context

    In the aftermath of Covid-19 pandemic, evaluating the state of inequality serves as an eye-opener on the income/wealth divides prevailing across regions.

    Income and wealth inequality in the world

    • The top 10% of the global population share 52% of the total income, while the bottom half survives with a mere 8.5% of it.
    • This leaves the 40% in the middle with 40% of the income.
    • This distribution shows the tendency of a rising middle class with lower disparity in income, but it also shows that the status of the poor is worsening day by day.
    • Inequality of wealth: In terms of wealth, the top 10% of the global population own 76% of the total wealth, while the bottom 50% share a mere 2%.
    • Some additional features of this exposition of inequality also relate to imbalance of women’s share in income as well as the ecological inequities indicated by the differential carbon emission levels.

    Factors responsible for rising inequality

    [1]  Absence of effective measures of redistribution

    • Inequality varies across regions. It is moderate in Europe and sharp in Africa.
    •  The top 10% have an income share of 36% in Europe vis-à-vis the top 10% with a share of 58% of the total income in West Asia and North Africa.
    • Measures for redistribution: This disparity shows that worsening inequalities are avoidable with appropriate measures in place.

    [2] The absence of measures discouraging undue accumulation

    • Kuznet’s curve not follower everywhere: While there is an argument in literature that inequalities are a manifestation of the average level of income, as explained by the Kuznets’ theory, the prevailing pattern across countries does not follow the same.
    • Average income level is poor predictor of inequality: The average income levels seem to be poor predictors of the levels of inequality, with high-income countries such as the U.S. having higher levels of inequality as against countries such as Sweden, which have moderate levels of inequality.
    • Similar contradictions are also seen when we contrast middle-income nations such as Brazil, India and China as against Malaysia and Uruguay.
    • Hence, emerging inequalities are not necessarily an outcome of rising levels of income in the post-liberalisation era, but a depiction of poor redistributive policies towards discouragement of accumulation by governments with due sensitivity towards inequalities.

    How inequality hurts government finances

    • This prevailing pattern of wealth concentration and differential levels of income around the world has also resulted in rich nations having poor governments.
    • Such a situation has two underpinnings: one, governments have a limited capacity to act on inequality aversion measures and two, private interests overshadow the distributional fairness of wealth. 

    Way forward

    • Focus also needs to be placed on reducing disparities in capability domains like education and differential endowments (tangible and intangible) that have the potential to sustain inequalities.

    Consider the question “How rising income and wealth inequality could harm us in various ways? What are the factors responsible for the rising inequality? Suggest the way forward.”

    Conclusion

    The rising levels of income and wealth need to be addresses by policy measures and reducing disparity in capacity domains.

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  • Why the Russia-West equation matters to India

    Context

    Thirty years ago this week, the Soviet Union collapsed — after seven decades of an expansive global role. Few countries have been as significant as Russia for modern India’s evolution.

    Impact of Russian geopolitics on India’s worldviews

    • Russia’s relations with the West have always had consequences for India’s international relations.
    • India’s fear of a unipolar world dominated by the US: After the collapse of the USSR in December 1991, the loss of the long-standing Soviet ally left Delhi in fears of a unipolar world dominated by the US.
    • These anxieties were accentuated by post-Soviet Russia’s quick embrace of the US and the West.
    • However, by the turn of the millennium, relations between Russia and the West had begun to sour.
    • That drew India once again closer to Russia.
    • Russia’s growing closeness to China: Moscow also roped in Beijing to build a new coalition — the RIC — to promote a multipolar world that would limit the dangers of American hyperpower.
    • Improvement in India-US relations: India’s fears of the unipolar moment turned out to be overblown and Delhi’s ties with Washington began to see rapid improvement since 2000.
    • The upswing in India’s ties with America, however, coincided with a steady downturn in the relations between Russia and the US.

    Tension between Russia and the West

    • The continuous escalation of tensions between Russia and the West culminated in the last few weeks in Ukraine — at the heart of Europe.
    • Moscow’s military mobilisation on the frontier with Ukraine — that was part of the Soviet Union until 1991 — raised alarm bells of a new war between the forces of Russia and the US-led European military alliance, North Atlantic Treaty Organisation (NATO).
    • Last week, Russia presented several proposals for a new European security architecture.
    • Moscow is calling for an end to NATO’s further eastward expansion.
    • Moscow also wants NATO to rescind its earlier promise to make Ukraine and Georgia — two former Soviet Republics — members of the military alliance.

    Major compromises between US and Russia

    • The resolution of US-Russian differences, however, involves some major compromises.
    • Russia aware of the over reliance on China: While Russia has demonstrated that its interests can’t be simply ignored by the West, it also recognises the costs of a prolonged confrontation with the US and Europe and the dangers of relying solely on China to secure its geopolitical interests.
    • Russia seeking accommodation with US and Europe: While Moscow is unlikely to abandon the partnership with China, there is no doubt that an accommodation with America and Europe is a high priority for Russia.
    • US to focus on China challenge: The US, which is now focused on the China challenge, appears interested in easing the conflict with Russia.
    • Despite its extraordinary military resources, Washington can’t afford to fight in both Asia (with China) and Europe (with Russia).

    Implications for India

    • Role of ideological sentiment: While coping with the complex dynamic of Russia’s relations with the West has been an enduring element of independent India’s foreign policy, Delhi’s thinking on Russia has too often been coloured by ideological sentiment.
    • In Delhi, the tendency is to over-determine Russia’s contradictions with the West.
    • It is not Russia’s national destiny to forever confront the West.
    • Russia’s current problems with the West are not about ideological principles.
    • It is about the terms of an honourable accommodation.
    • Prior to the 1917 revolution, Russia was a leading part of the European great power system.
    • Delhi can’t influence the new effort to build a mutually acceptable security order in Europe, but it can welcome and support it.
    • Role of Asian geopolitics: That the pressure for this attempted reset in Russia’s relations with the West is coming from Asian geopolitics is of some significance.
    • A reconciliation between Russia and the West will make it a lot easier for India to manage its own security challenges.

    Conclusion

    Delhi knows that stabilising the Asian balance of power will be difficult without a measure of US-Russian cooperation in Europe. If Moscow — at odds with the West in the last two decades — deepens its current close alignment with Beijing, it will be a lot harder to prevent Chinese dominance over Asia.

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