9 PM Daily Brief – 18 February 2016

Brief of newspaper articles for the day bearing
relevance to Civil Services preparation

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GS PAPER 1


[1]. Dalits are still left out

The Indian Express

The Dalit mobilisation that is gaining momentum in the wake of Rohith Vemula’s suicide reflects structural issues.

Reservations have given birth to Dalit entrepreneurs and a Dalit middle class benefiting from government jobs. because of this, anti-Dalit attitudes have been on the rise.

Cases of anti-Dalit atrocities  :

  1. The number of registered cases of anti-Dalit atrocities jumped by 17.1 per cent in 2013 (compared to 2012) according to the National Crime Records Bureau (NCRB). The
  2. increase was even more dramatic between 2013 and 2014 is19.4 per cent.

The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 (the PoA act), gives a list of “offences and atrocities”. Which are,

  1. Someone forces a Dalit or an Adivasi “to drink or eat any inedible or obnoxious substance”
  2. “forcibly removes clothes from the person of a member of a Scheduled Caste or a Scheduled Tribe or parades him [sic] naked or with painted face or body”
  3. Dispossesses him “from his land”,
  4. Compels him to do “bonded labour”
  5. Exploits her sexually
  6. “corrupts or fouls the water” he or she is using,
  7. Denies him or her “right of passage to a place of public resort”
  8. Forces him or her “to leave his house, village or other place of residence”, etc.

Because of the detailed list the Constitution drafted by Ambedkar had already taken care of most of these issues.

  1. Article 17 abolishes untouchability
  2. Article 23 prohibits bonded labour and
  3. Article 15(2) stipulates that no citizen should be subject to restriction with regard to access to shops, public restaurants, hotels and places of entertainment, the use of wells, tanks, bathing ghats, roads and places of public resort on the grounds of caste.

In 1955, the Untouchability (Offences) Act reasserted that Dalits should not be prevented from entering any public place.

Then, in 1976, the Bonded Labour System (Abolition) Act was passed.

All the above mentioned Acts failed to fulfil its purpose. In 1989, The PoA Act was made. This also doesn’t make a huge impact either. Evident from the figures mentioned above regarding crime against Dalit.

Examples:

  1. In October 2014, a 15-year-old boy was burnt alive by an upper-caste man in Mohanpur village (Rohtas district) because his goats had eaten his paddy crop.
  2. In June 2015, two Dalit boys were killed because they were short of Rs 4 in a flour mill of Allahabad.
  3. In October 2015, two kids of three and eight were burnt alive in their house in Ballabgarh village (Haryana) after an argument with local Rajputs.
  4. Dalit women continue to be victims of violence and rape.

What has been the response of the state, lately?

A new law was passed , Last month. Existing legislation even more sophisticated. This law provides stringent action against atrocities against dalits.

Will that make any difference?

If the police and the judiciary do not change their attitude, No law will be effective. In spite of the fact that the PoA Act has introduced, special courts for speedy trials,

  1. the conviction rate under this act has remained very low and has declined even — from 30 per cent in 2011 to 22.8 per cent in 2013 .
  2. And the percentage of “pending cases” has increased from 80 to 84 per cent.
  3. On average, only one-third of the cases of atrocities are registered under the PoA Act. The police is reluctant to do so because of the severity of the penalties likely to be imposed by the act.

Many Dalits do not know their rights anyway and cannot fight a legal battle that is costly in terms of time and money.

2011 Census:

  1. 74 per cent Dalit live in rural areas
  2. The per-household land area they own on an average is less than 3 hectare.
  3. Most of them are landless.
  4. only 22 per cent of the Dalit households live in larger homes
  5. only 34 per cent of them have toilets in their premises
  6. More than 50 per cent Dalit households use firewood as their main fuel for cooking
  7. literacy rate crossed the 66 per cent landmark.
  8. Educated Dalits want more to join the university system.
  9. Some of them have succeeded in doing so, but they often face frustrating experiences when they are discriminated
  10. Rohith Vemula was one of them.
  11. Senthil Kumar from Jalakandapuram committed suicide in 2008.

GS PAPER 2


[1]. Union cabinet for lifting central rule in Arunachal / SC orders status quo in Arunachal

The Hindu | The Hindu

The Supreme Court ordered status quo in Arunachal Pradesh till it examined judicial and Assembly records on the disqualification of 14 rebel Congress MLAs by former Speaker Nabam Rebia.

What Centre wants?

Formation of new government in Arucnachal pradesh to fill the Constitutional Vaccum by withdrawing President’s rule.

Even if Supreme court declares president’s rule as unconstitutional the previous government will automatically come to power. So no harm in forming new government.

What the Suspended State Government Wants?

If centre withdraws president’s rule the old government will only come to power and no new government will be allowed to form.

[2].Restoring goodwill in India – Nepal Ties

The Hindu

Context:-

Nepal Prime Minister K.P. Sharma Oli will undertake his first official visit to India.

He is also expected to visit Bhuj, which is held up as an example of efficient post-quake reconstruction.

Objectives:-

The purpose of the visit is to remove recent differences between the two countries and  to strengthen the historic bilateral ties.

The visit will further Nepal’s relations with India based on principles of equality, mutual respect and benefit.

Madhesi issue:-

Demands:-

Madhesi  an ethnic community in Nepal demanded  ‘federalism’ and ‘proportional representation’.

Agitation:-

When the newly formed Nepal government and their constitution did not reflect their demands it led to Madhesi agitation claiming more than 50 lives and brought life in the Terai to a complete standstill.

Unofficial Blockade:-

Nepal blamed India for supporting the Madhesis by imposing an ‘unofficial blockade’ even as India urged to resolve political issues so that stability and security could be restored and normal movement of goods resumed.

Blame game:-

Nepali nationalism  was kindled by blaming India for its troubles.

Whenever Nepal’s domestic politics gets polarised, India gets blamed for interfering in Nepal’s internal affairs and anti-Indianism rises.

China Card:-

Nepal also flaunted the China card by sending delegations to China to develop alternative supply routes across the Tibetan border.

The limitations of the move soon became visible.

From a protest to movement:-

It started as a protest and became a movement .

Some voiced for an independent Madhes.

Prolonged shutdown of businesses and schools in the Terai increased the hardship for the local population.

Indian suggestions that outstanding issues be resolved on the basis of consultation and dialogue did not go down well as the Madhesi agitation intensified.

Ruined good will:-

The enormous amount of goodwill generated by Prime Minister Narendra Modi’s maiden visit to Nepal and India’s generous support following the devastating earthquake eroded rapidly, raising questions about the ‘neighbourhood first’ foreign policy.

Arriving at a compromise:-

It was understood that without some amendments to the Constitution, Madhesi demands could not be addressed.

The Nepal government proposed some amendments.

Even before the amendments were adopted, the Indian authorities responded positively and some alternative routes and crossing points were used to facilitate movement of trucks into Nepal.

Challenge Now:-

Reconstruction:-

Challenge now is to get the post-earthquake reconstruction activity going.

Improving growth:-

Before the earthquake, Nepal’s economy was expected to grow at 4 per cent; after the destruction caused by the quake, the political instability and the shutdown in the Terai, growth estimates for the current year are close to zero.

Indian Help:-

India had pledged $1 billion of reconstruction aid, of which 40 per cent was grant and the balance in the form of soft loans.

The two Project Development Agreements for hydropower generation signed by GMR (for Upper Karnali) and SJVN (for Arun III) during the last eighteen months will add 1800 MW to Nepal’s current generation of 800 MW and need to be fast-tracked.

India and Nepal the way forward:-

Nepal is a highly diverse society with over a hundred different ethnicities  the Prime Minister  needs to act as a unifying figure.

The  visit provides an opportunity to close the chapter on the rather unproductive politics of recent months and revive the ‘neighbourhood first’ policy  of a friendly and caring India, sensitive to Nepal’s concerns, and generous in seeking mutually beneficial partnerships.

[3].India’s nudge unit: An idea whose time has come

The Livemint

India needs to join the list of countries integrating behavioural research into public policy. Behavioural interventions have the potential to increase the efficacy of our social spending. It dramatically improve public policy design, and deliver better outcomes for taxpayer money.

US government asked US agencies to integrate ‘nudges’ in their daily operations. This is the clearest sign that behavioural public policy is here to stay.

Group of countries which already follows Behavioural approach are,

  1. UK (Behavioural Insights Team)
  2. Australia (NSW Behavioural Insights)
  3. Singapore (Behavioural Insights and Design Unit)
  4. Institutions like the World Bank (2015 Report on Mind, Behaviour and Society)

Why India must join ?

India needs to join the list of countries integrating behavioural research into public policy.Especially because,

  • India lags behind most developing countries in expenditure on social welfare,
  • It is crucial that India’s policy makers squeeze the most value out of every rupee allocated to a welfare programme.

But what are nudges?

At a conceptual level, if we assume of policy design as the map and development outcomes as the destination, then nudges can be the road signs that gently guide you towards the best route.

It requires expertise at two levels:

  1. Understanding why consumers pick less optimum routes
  2. Designing signs that guide users to better routes

Nudges and other behavioural change interventions primarily rely on design and messaging that address the effect of behavioural biases on human behaviour.

Common Biases: ( created by behavioural changes)

  1. leads to us placing a disproportionately high value on ideas or products that we had a hand in creating
  2. Prevent us from recognising early on that our much-valued product isn’t working well
  3. Being attached to the home-grown idea
  4. Psychological theory of framing—where the construction of a sentence or situation changes your perception or reaction of it (reactions in newspapers to the latest census results on religious groups are an excellent example of framing).

Do such interventions work? ( though activities changing Behavioural change)

If planned carefully, and backed by accurate bias-targeting, then yes.

  1. In Israel, during the issuing or renewal of an ID, passport or driving license, answering the question of becoming a registered donor was mandated. This increased the list of registered donors.
  2. In Singapore, average electricity usage of the locality the was given in back of bills .This let households to think about their own energy consumption, driving them towards reducing it to the average levels, an example of the groupthink effect.
  3. The colour-coded footprints in Delhi’s metro, guiding users to the correct metro line, are only a short step away from Copenhagen’s experiment of using green footsteps to lead to trash bins,
  4. Fictionalized photographs of a person getting run over by a train reduced incidences of railway-related deaths significantly at unmanned crossing . Railways can consider implementing this as a pilot project.
  5. Encourage large-scale signing up for organ donation, and rework the ‘give it up’ policy for cooking gas subsidy on this basis.

India can make use of this opportunity to lead the way in pioneering behavioural research in South Asia, focusing on the policy challenges unique to this region.

[4].AYUSH – WHO venture cleared

The Times of India

Context:-

Cabinet on approved a pact between the AYUSH ministry and World Health Organisation (WHO) in the field of traditional medicine.

Significance:-

  • Increase scope for collaborative activities in the area of traditional medicine,
  • to internationally promote the AYUSH system of medicine
  • enhance their acceptability
  • in facilitating awareness about AYUSH through education, skill development, workshops and exchange programmes
  • Facilitate advocacy and dissemination of information on AYUSH systems amongst the member states
  • collaboration with third parties for creating synergies in implementation of WHO Traditional Medicine Strategy 2014-2023 particularly in the context of AYUSH systems

AYUSH stands for ayurveda, yoga and naturopathy , unani, siddha and homoeopathy .

[5].Booster in the offing for consumer courts

The Times of India

Context:-

A three-member panel under former Supreme Court judge justice Arijit Pasayat  is constituted to assess infrastructure and manpower deficienci es in consumer fora, as well as suggest a “broad framework“ to tackle the impediments and strengthen the institutions at all levels.

Concerns:-

  • The total percentage of cases disposed of by all three categories of consumer fora -the national, statelevel and district commissions -is as high 91.23% but still the pendency stands at 3.9 lakh cases.
  • Hearings are deferred at the will of presidents or members.
  • High number of vacancies.
  • absence of parity in salary and allowances for members in the state and district fora.

GS PAPER 3


[1]. Government clears proposal for gravitational wave detector

The Hindu

Context:-

Government has approved a proposal to have a gravitational wave detector in India.

It is an important development, but a final decision regarding the money, and how it would be spent is yet to be finalised.

The gravitational waves were detected by the Laser Interferometer Gravitational Wave Observatory (LIGO) — a system of detectors in Washington and Louisiana.

[2]. Private sectors will build fighter jets for India

The Hindu

Context:-

India would select one or more fighter aircraft which will be manufactured locally by a private company under the Make in India initiative.

This is in addition to the Light Combat Aircraft (LCA), the production of which is being scaled up

Finance:-

This initiative could be done by reducing defence expenditure in other areas without increasing the Defence budget.

Improvisisng the LCA:-

Ministry is in an advanced stage of giving approval to Hindustan Aeronautics Limited for setting up a second assembly line for the LCA to increase the production rate from eight to 16 aircraft per year.

The Air Force is expected to induct over 100 of the improved LCAs which will feature an

  • Advanced Electronically Scanned Array radar,
  • mid-air refuelling
  • improved electronic warfare suite in addition to other minor improvements.

[3]. Right steps on saving schemes

The Hindu

Context:-

The 25-basis points reduction in interest rates on short-tenure small savings schemes from April 1 may have come as a huge disappointment for countless savers.

Impact:-

The scheme was beneficial for millions of retired persons and middle class as they are risk-free.

The returns these schemes offer also help them balance their budget.

The interest rate cut will lower returns on their savings.

Benefitting the economy:-

The decision must be viewed in the context of the big picture that is emerging on the national economy.

  • RBI has cut policy rates by 125 points last year.
  • But less than half of it is only transmitted to the people by banks.
  • The rising NPAs has put stress on the banks because of which Monetary policy transmission is not happening.
  • Inorder to transfer benefits to customer, banks have to reduce their deposit rates.
  • But the mobilization of deposits by banks is hindered by Small saving Schemes because such schemes offer  higher interest
  • By keeping small savings schemes interest on par with market rate will enable banks to reduce their deposit rates and thereby providing the environment for monetary policy transmission.

Long term savings unaffected:-

The government has left the interest rates on long-term and certain special category savings schemes unchanged.

This shows that the government has in mind the larger good of society and it is keen to encourage people to save for the future.

Conclusion:-

A distorted interest regime is the principal cause for driving the economy into a costlier zone.

The effect of such a cut will have a cascading effect on the entire value chain, and will bring the cost structure down for the economy.

[4]. Parekh cautions on RBI bad loan tack

The Hindu

Context:-

RBI has directed banks to follow an asset quality review (AQR) .

This will identify loans which lenders need to classify as non-performing in two quarters – Oct-Dec and Jan-March.

What is asset quality review?

Asset quality review (AQR)  is done to enhance the transparency of bank exposures, including the adequacy of asset and collateral valuation and related provisions.

Impact of AQR:-

Banks have reported a total loss in the third quarter to a tune of Rs.10,000 crore.

Dissent:-

Transparency in accounting for NPAs is needed but it has incapacitated banks.

What needs to be done?

Allowing  the right talent to run PSU banks encouraging  prospective new investors bringing in capital.

A Bankruptcy Code can ensure that large business houses are no longer default on loans wilfully.

[5]. Bulk drug policy to be unveiled

The Hindu

Context:-

Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers is expected to come out with a new bulk drug policy

Objective:-

To make the the Indian pharmaceuticals sector become a $200 billion industry by 2030.

To make India a pharmacy hub for the world.

Till now:-

Until 1970 -dependent on other countries for its pharmaceutical requirements

After that inn 20 years’ time it became self sufficient to meet its own requirements and has become a $32 billion industry.

A superpower in generic drugs.

Areas of concern:-

Developing new molecules and new drug discovery which is currently lacking.

Bulk Drugs otherwise called APIs are active raw materials that provide therapeutic effect to drugs. India is dependent on China for APIs and there is a concern on quality.

What will be done?

  • Build an ecosystem to help pharma companies to move up in the value chain and develop new molecules through innovation.
  • Concentration will be on states where growth is less to achieve the infrastructure requirements of the pharmaceutical industry.
  • Setting up our own APIs manufacturing capacities to overcome quality issues.
  • Efforts to Bring down imports of bulk drugs and increase the domestic output
  • Strengthen regulatory framework and brought on par with international practises.

[6]. The rationale behind India’s drug policy

The Livemint 

The Supreme Court’s description last year of India’s drug pricing policy—irrational and unreasonable

There have been two contradictory developments over the past few days:

  1. Government is planning to add stents (a small mesh tube used to treat narrow or weak arteries) in the National List of Essential Medicines (NLEM).
  2. Two weeks back customs duty exemptions on a number of drugs were lifted.

drug

Objective for this move:

  1. Reasonably priced medicines
  2. Allowing the marketplace to function well enough for pharmaceutical companies to invest in innovation.

The history of drug price control in India :

Two decades ago, the Drug Price Control Order (DPCO) 1995 was introduced, covering 74 bulk drugs and their formulations. The result was not quite as hoped.

  1. Half the products were discontinued after their producers exited.
  2. Indian production of something as vital as penicillin shifted to China.

Its successor, DPCO 2013, hasn’t fared much better. Since its introduction,

  1. No new investments have been seen.
  2. Instead, non-controlled products increased.
  3. The average number of incumbent brands and new introductions of drugs in the DPCO 2013 list has reduced compared to the non-DPCO 2013 list.

This “strengthens oligopolistic behaviour and reduces the choice set of doctors and patients.

Justice T.S. Thakur bench pointed out last year, the cost of the drugs in the NLEM(controlled by DPCO) remain above the maximum retail prices offered in some states.

In the context of the possible addition of stents to the list, might have unintended consequences like,

  1. intended control on prices will decrease in supply
  2. Fewer introductions of technologically advanced stents in India.

Possible Alternatives:

  1. Abandon any attempt at regulation. Leaving it to the market would create efficiency.but the benefits will be skewed towards pharmaceutical companies.
  2. Multi-pronged approach that has the NLEM and DPCO, with a transparency is more likely to be effective.
  3. India’s intellectual property rights (IPR) regime :
  4. In the context of the pharmaceutical industry, the courts have done well to clamp down on the practice of evergreening patents and protecting the country’s vital generic drug industry.
  5. But at the other end of the spectrum, impediments to legitimate patents have had high costs. on average, a patent application takes six years to get approval in India.Which affects Indian Pharma industry.
  6. The soon-to-be-announced National Intellectual Property Rights Policy will, hopefully, have a positive impact here.
  7. Insurance :Financing consumer price reductions via insurance has several long-term benefits over imposing price controls. As of March 2014, only 17% of the population had any health insurance coverage, as per the Insurance Regulatory and Development Authority.

The raising of the foreign direct investment cap in the insurance sector to 49% last year should, ideally, introduce benefits. But so far at least, there has been little in evidence.

Successive administrations have relied for decades on price control to increase public access to medicines. The results have not been optimal. It’s time to look for a new balance.

[7]. No small gain

The Indian Express 

The finance ministry decided to cut the interest on short-term small savings. The ministry cut the interest rate paid on post office savings of one, two and three-year terms, Kisan Vikas Patra (KVP) as well as five-year recurring deposits, by 25 basis points.(.25%)

Why it is reduced?

  1. Interest paid on small savings instruments, fixed arbitrarily by the government, has been higher than the interest rates prevailing in the markets. This has been one of the key reasons for poor monetary policy transmission in the economy.
  2. Banks were unwilling to cut the interest rates on deposits and on loans, even when the Reserve Bank cut interest rates repeatedly.
  3. Since the start of 2015, the RBI has cut interest rates by 125 basis points, yet the effective reduction passed on by the banks was just about 60 basis points.

Key benefits:

  1. Improvement of investor sentiment and activity through better policy transmission
  2. Persistently high lending rates have been a dampener for an investment-starved economy. This will come down.

Flip side:

  1. Small savers will not get as good a return
  2. overall gains to the economy from lower interest rates will outweigh the benefits to small savings deposit holders

The government left unchanged the interest rate paid on the long-term small savings instruments, such as

  1. Public provident fund (PPF)
  2. The national saving certificate
  3. New Sukanya Samriddhi Account Scheme (SSAS), which are politically more sensitive.
  4. In fact, the Employees’ Provident Fund rate has been increased by 0.05 per cent.

The non-inclusion of these schemes will certainly hold back transmission. Yet, the government has started the process of aligning the interest rates in the market, which is crucial to reviving investment.


Prelims Facts


[1]. New way to turn sunlight to hydrogen developed

Inspiration: To replicate the process of photosynthesis

Technology: Multi – layered photo-electrode , boosts the ability to split the water

solar solar 1

Photo-electrodes – Special photo-electrode {metal-dielectric hybrid-structured film with TiO2 for oxygen production} (Au NPs/TiO2/Au) – absorb visible sunlight and then use it to split water molecules.

Advantages:-

  • Photo-electrode uses approximately 95 per cent of the visible spectrum of sunlight, which makes up a substantial portion (40 per cent) of full sunlight.
  • It will improve hydrogen production efficiency.
  • Will also reduce the overall cost of producing hydrogen.

Misc:-

Using nanoimprint lithography, mass production of hydrogen will be soon possible

[2]. ISRO orbiter to scan India’s air for pollution

Next Generation Earth Monitoring and Observation and Aerosol Monitoring (NEMO-AM) satellite

ISRO’s one of the most important high-performance Nano-satellite missions for the country.

Placed 500 km above the earth and will cover, each day, up to 50,000 sq km area of the country’s 32.87 lakh sq km.

Purpose:-

  • The nano-satellite will monitor suspended particles and aerosols in the atmosphere of major indian cities.
  • Aerosols and particulate matter of size 2.5 micrometers (PM2.5) enter our lungs and restrict the free flow of air.

Working

The NEMO-AM satellite with its powerful imaging sensor analyses the sunlight reflected from the earth’s surface.

This light, which passes through the earth’s atmosphere before reaching NEMO will be analysed by the satellite from different angles to deter mine the nature of suspended particles and aerosol concentration in the ambient air of India cities.

[3]. IPR to build world most powerful sensing LIGO

Laser Interferometer Gravitational Observatory (LIGO-India – Indigo): being built by Institute for Plasma Research (IPR), Gandhinagar

 

Benefit: LIGO-India will enhance the accuracy of locating the source of gravitational waves by 5 to 10 times when it works in tandem with two other such detectors – both in the US.


By: ForumIAS Editorial Team


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Comments

6 responses to “9 PM Daily Brief – 18 February 2016”

  1. GS PAPER 1 – Dalits Article – Misinformed Examples.

  2. when interest rate is so high ,people tend to deposit in saving accounts others so that they get fixed risk free income.But when interest rate come down,income from interest reduces and people look for alternate ways rather than bank deposit.

  3. Diwakar chaturvedi Avatar
    Diwakar chaturvedi

    Thankyou so much FORUMIAS .

  4. Shahjahan Sk Avatar
    Shahjahan Sk

    THANK UUU

  5. how reducing deposit rate implies policy transmission?

  6. Thanku . please dont stop this 🙂

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