9 PM Daily Current Affairs Brief – December 13th, 2021

Mains Oriented Articles

GS Paper 1

• Challenges with Globalization: An olde fairy tale of the new world order we must brace for
• “Technology can either save or doom capitalism”

GS Paper 2

• Defining democracy: Biden’s summit is a good context for democracies to remind themselves what the system means
• Judges cannot be shielded from citizens’ questions
• India-Afghanistan relations: India sending medical aid to Afghanistan is a sign of thaw in bilateral relations

GS Paper 3

• The stepping stones in the post-pandemic world
• The good and not so good of new bank ownership norms
• The question of US monetary policy
• The curious case of India’s rising forex reserves and falling rupee
• Poverty and Hunger stalk India’s countryside
• Challenges associated with China’s economy: Dragon Stumbling, World Ok
• How the pandemic has worsened inequality in India
• Poverty and Hunger stalk Indias countryside
• “The Parliament attack was 20 years ago, are we more prepared today?”
• “The dream of being a Chip hub”
• “How Delhi is leading the charge in electric vehicle adoption”

Prelims Oriented Articles (Factly)

• RBI Governor, PM signal reforms in trouble-prone urban co-operative banks
• Over 1 lakh people getting pension directly into their bank accounts through SAMPANN project
• Earth is getting a ‘black box’ to hold humans accountable for climate change
• DRDO & Indian Air Force successfully flight-test indigenous Stand-Off Anti-Tank Missile
• Successful tests carried out for Pinaka Extended Range System, Area Denial Munitions & New Indigenous Fuzes
• Centre to organize the first of its kind innovation week to encourage Startup ecosystem in India
• Kerala row and beyond: Governor’s role in state, central universities
• Explained: Bank deposit insurance programme and norms to access funds
• United Nations grants observer status to International Solar Alliance in a historic decision
• Haiderpur Wetland added to Ramsar site; total tally goes up to 47
• 14566 – National Helpline Against Atrocities on SCs/STs
• The evolution and framing of the constitution

Mains Oriented Articles

GS Paper 1

Challenges with Globalization: An olde fairy tale of the new world order we must brace for

News: Current phase of digital technology-enabled globalization has disturbed the fabric of human society and sovereign states.

Signs of globalization in the past

Human beings have travelled to distant places to survive, trade, and communicate. Harappan seals dating back to 3000 BCE found in Mesopotamia indicate trade and contacts between ancient civilizations. The number Zero, algebra, gunpowder, religions spread around the world like wildfire.

How has globalization impacted nation-states at present?

MNC’s began the wave by selling dreams and their products. As they expanded beyond boundaries, Non-profit organizations followed suit, enabled by advances in telecom and communication.

This was famously described by Jessica Mathews in her 1997 article, Power Shift. She suggested that these networks were inverting traditional nation-state borders, which were established by the 1645 Peace of Westphalia.

Anne-Marie Slaughter added to Mathews “new-medievalist” world order that instead of being a weakened State was being transformed into a new trans-governmental order. Here the governments across the world were connected and working together on fields like banking, antitrust environment or justice.

What were the challenges associated with globalization?

Stieglitz highlighted the issue that MNC’s were impacting the local business like street vendors.

Some opined that these networks also supported the rise of transnational terror networks.

This also created a generation of ‘Baby Zoomers’ (new ‘generation’ of babies) driven by social media, e-commerce and AI.

Virtual transnational networks have increased inequalities, particularly during pandemics. Those with access to technology and capital have enjoyed growth and employment. Others have been left behind.

This shows that the view of Yuvan Harari’s reality of two worlds, one of the people with technology and capital and another of unskilled and unemployed workers, seems to be coming true.

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“Technology can either save or doom capitalism”

News-Tech firms have a key role in preserving open and democratic society. Most often technology is perceived to be an enabler for democracy. 

Do Democracy and capitalism work on similar philosophical foundations? 

Although both democracy and capitalism uphold liberty as a core value, they also sometimes show inconsistencies. While capitalism leads to an asymmetric distribution of private property ownership, democracy has equal civil and political rights at its core.  

Governments have tried to align capitalism with democratic ideals through efforts such as progressive taxation and welfare provisions, etc. But still as the recent World Inequality Lab report shows capitalism has only increased inequality. 

How new technologies have failed to deliver their promise of an equal world 

1)Digital technology – Technology, especially the internet was perceived as a leveler that would serve all sections of society equally. The technology-enabled digital divide has only helped consolidate the hold of the privileged over resources.  

Example- Unequal access to resources and digital technology prevented many school going students to attend classes during pandemic. 

2)Intellectual property– It was supposed to foster innovation and usher humankind into an era that would benefit from sharing of knowledge under the protection offered by IPR. Yet it has failed to deliver the results and has led to polarization of power and wealth. It has on one side helped some to have supernormal profits while other are completely deprived of it. 

Example– COVID has revealed how big pharma companies have in the times of a global crisis gave preference to their profits over a faster global recovery and saving thousands of lives. 

Way forward- 

If technology has to be used for the progress of democratic values and equality there is need for multilateral efforts to address the inequities. Although Individual nations have tried to make some but these are insufficient and can’t be a permanent solution. 

GS Paper 2

Defining democracy: Biden’s summit is a good context for democracies to remind themselves what the system means

News: USA President hosted the “Summit for Democracy“. There are 100-plus countries that participated in the summit to build a wide-ranging alliance against autocracies.

Why China is against this Summit for Democracy?

China claimed it does a better job of reflecting “the people’s will”. It also attacked the US dismissal of “forms of democracy” different from its own as itself undemocratic. For instance, Pakistan was invited, and it did not participate. On the other hand, countries such as Bhutan, Bangladesh and Sri Lanka were not invited at all.

Why the Summit for Democracy is in question?

While the USA plans to bring together the democracies of the world, it itself left Afghan democracy’s forces crushed under the Taliban’s brute wheels. Also, there is a painful retreat of democracy from Afghanistan to Hong Kong and Myanmar.

Why does democracy need to be widened?

Democracies should also always be alive to what democracy really means. Democracy needs to be widened to look beyond elections and focus on values like liberty, freedom of expression, and vibrant civil society. Thus, democracy should be wider than limited democracy.

Judges cannot be shielded from citizens’ questions

News: CJI has raised his concerns over attacks on judges owing to the judgements they delivered. Although the consumer of justice has every right to critically examine every word of the judge spoken or written, none has the right to make personal attacks on judges.

Instances of attack on the judges

ADM Jabalpur case, 1976: The court held that the right to life and personal liberty of a citizen under Article 21 of the Constitution would remain suspended during the emergency. The judiciary is under so much criticism that they had to overrule the judgement.

Shashi Tharoor speech in Parliament: He said that the judiciary had failed to stem the tide of militant majoritarianism. He further blamed that the “judiciary’s inaction almost always favors those in power”.

Trinamool MP: criticized the transfer of former Madras High Court Chief Justice as the Chief Justice of Meghalaya High Court.

Also, the collegium is under question several times for transfer and re-transfer of judges.

Pending judgment on important cases: Several cases of national importance and which are obstructing the fundamental right of citizens are waiting for the final judgements. For instance, cases on Article 370, the Citizenship Amendment Act, electoral bonds, and others.

Also, it can be noticed that some bail applications just took only 1-2 days while others are pending for months.

What is the way forward?

As suggested by the CJI, the legal community should be obliged to protect vulnerable sections of society from the human rights atrocities perpetrated by the State or any anti-social element.

India-Afghanistan relations: India sending medical aid to Afghanistan is a sign of thaw in bilateral relations

News: Recently, India decided to send a consignment of medicines to Afghanistan. The medicines were sent on a return flight of a plane that brought evacuees to India last week. This along with previous initiatives are aimed to improve India-Afghan ties.

About Afghanistan and assistance from the region

The Taliban have welcomed India’s offer and expect assistance from all countries in the region. For instance, Afghanistan negotiated with Pakistan. As a result, Pakistan has allowed India to send wheat to Afghanistan through the Wagah border, which is the shortest route from India. But the wheat is yet to be transported.

Why does this wheat is not sent to Afghanistan so far?

1. Logistics required to send the 50,000 metric tons is complex, 2. Challenges with paperwork and an interchange of trucks at Wagah border, 3. There is a nearly three-year-long absence of trade relations between India and Pakistan. This has led to the dismantling of systems at the land border.

What are the other challenges associated with the Taliban in power?

The security concerns, arising from the Taliban’s proximity to Pakistan and the terrorist groups based there, will continue to limit Indian efforts. But, the dispatch of humanitarian aid may provide a diplomatic opportunity for India.

GS Paper 3

The stepping stones in the post-pandemic world

News: India must leverage international partnerships for ensuring a robust and sustained economic growth path.

Why International partnerships are important ?

Firstly, the COVID-19 pandemic has affected growth, trade and investments, and employment, among others. In this context, international cooperation is critical to combat the current & future challenges related to growth.

Secondly, strengthening global partnerships will help in building resilience to cope with the threats posed by pandemics and other man-made and natural disasters.

Thirdly, Global partnerships will help in building mutual trust and understanding by agreeing upon common rules and standards and sharing of best practices.

Fourthly, for India, integration with the world economy can help to attain a faster growth path.

What are the areas that necessitates international partnerships and how it can be done?

Sustainable Growth: Mechanisms for reviving growth in certain parts of the world should be coordinated effectively so as not to disrupt it in other parts of the world.

Because, Massive stimulus packages given to stimulate growth is currently posing risks to economic and financial instability.

Inclusive development: The issue of growing inequality of incomes among countries as well as within countries must be addressed.

Resilient Global supply chain: Partnership to build back resilient global supply chains is very critical. Because, the pandemic had severely disrupted the global supply chains and this has led to decline in trade.

Trade facilitation: Countries across the world should facilitate trade partnerships at both regional and multilateral levels to better protect consumers and producers. It can be done by promoting open and transparent markets, technical assistance and reduction of complex process and arrangements.

Entrepreneurship and innovation: New opportunities in potential high growth sectors such as manufacturing and start-ups must be leveraged. It will contribute to enhancing productivity and generating employment.

Digital economy: The rise of telemedicine, remote work and e-learning, delivery services, etc. necessitates equitable adaptation to advanced technologies and tools, building robust infrastructure, and occupational transitions. Skill development and worker training, investments in education and vocational training etc, should be focused to fill the technology gaps and to nurture new and existing talent.

Investments in innovation: Global collaboration in areas including research and development and Industry 5.0 and investments in digital and corporate strategy can become key drivers of industrial development.

Climate change: International alliances and cooperation on building sustainable solutions, green technology, resource efficiency, sustainable finance, etc., must be promoted to achieve sustainable development goals.

What is the way forward for India?

First, in the post-pandemic world, it will be critical for India to improve on its investment climate and target its export capabilities across sectors and regions.

Second, ease of doing business and new free trade agreements with major markets will help India to integrate closely with the world through trade and investment partnerships.

The good and not so good of new bank ownership norms

News: RBI’s internal working group, set up in June 2020, had made 33 recommendations on the ownership and corporate structure of private sector banks.

The RBI has accepted 21 of them, with minor modifications in some cases. The rest, are under examination.

What are the key recommendations made by the RBI’s IWG?

Entry of corporate and large non-banking financial companies into banking: IWG recommended that large corporates and industrial houses be allowed as promoters of banks but only after necessary amendments to the Banking Regulation Act, 1949.

Changes in Promoter’s shareholding in a bank: A promoter can hold at least 40 per cent stake for the first five years and by the 15th year, it can be reduced to 26 per cent. All intermediate sub-targets between five and 15 years have been removed.

Changes in Capital requirement for universal banks, SFB’s and cooperative banks: Capital requirement for universal banks has been raised to Rs 1,000 crore from Rs 500 crore and that of SFBs, to Rs 300 crore from Rs 100 crore.

For an urban cooperative bank that wants to transform itself into an SFB, it will need to bring in Rs 150 crore capital, but in five years the capital must be doubled.

Recommendation regarding the Corporate structure of a bank: Non-operative financial holding company (NOFHC) should continue to be the preferred structure for all new licenses to be issued for universal banks where the promoters have other companies under their fold.

However, existing banks, which have been following the NOFHC structure, could be allowed to exit from such a structure if they do not have other business entities within the group.

Timeframe for listing: The new SFBs are required to be listed within eight years from the date of commencement of operations, but for the universal banks, the timeframe for listing is six years.

Harmonisation of Different Licensing Guidelines: IWG recommends for a comprehensive document on the licensing and ownership guidelines, making all norms equal for legacy as well as the new banks.

The criteria for selecting CEOs: The call for a monitoring mechanism to ensure that control of a bank doesn’t fall in the hands of persons who are not found to be fit and proper is welcome.

However, the observation that the existing criteria to assess the ‘fit and proper’ status of promoters are appropriate and may be continued is a cause of concern

Why the continuation of the ‘fit and proper’ status of promoters is not welcomed?

Recent developments in some banks in India put the spotlight on role of the board of banks, the CEO, corporate governance and conflict of interest.

In this context, it is necessary for RBI to scrutinise appointment of CEOs and the role of the board of the banks. But the Banking Regulation Act has only given limited powers for RBI in this regard. For instance,

One, The Banking Regulation Act empowers the RBI to supersede the board of directors of banks in public interest. But this is only for a period not exceeding six months.

Two, The RBI’s prior approval is a must for the appointment and reappointment of the CEO. Further, the central bank could seek the CEO’s removal also. But the Act doesn’t specify what qualities a CEO should possess apart from solvency.

So, the existing measures are not enough. It is time to review the ‘fit and proper’ criteria for banking licence, particularly with reference to individual CEOs.

The question of US monetary policy

News: Headline inflation in the US has reached 6.8%, the highest value in 40 years.

In this context, if the US Federal Reserve resort to monetary tightening policy (Fed Tapering) to control inflation, it will have important consequences for the world economy.

What are the implications of Fed tapering?

Flight of capital from the emerging markets: High interest rates in the US suck capital into the US.

Value Erosion: In international asset pricing, the cost of capital goes up, and the net present value of Indian equities will decline.

Financial Scandals will get exposed: Many dubious schemes fall apart, as we saw with the financial scandals in India from 2008 to 2013.

Autonomy of monetary policy: The retreat of capital will generate currency depreciation. To fight the currency depreciation, high interest rate hikes are required, which is often harmful for the local economy.

The curious case of India’s rising forex reserves and falling rupee

News: Further expansion of RBI’s balance sheet without normalizing credit offtake (demand for credit) will only raise economic risks.

How RBI manages its balance sheet?

RBI’s balance sheet consists of the asset side and the liability side.

Reserve Money (RM) or base money – Asset side:  It consists of net domestic assets (NDA) and net foreign assets (NFA).

Reserve Money (RM) or base money – Liability side: it is composed of Currency in Circulation (CIC) and Deposits made by banks.

During normal operations, RBI balances the two accounts, the Asset side and the Liability side.

However, during extraordinary situations like the Pandemic, the RBI gets inundated by cheap money from overseas due to ‘quantitative easing’.

This disturbs the RBI’s balance sheet by making the Asset side component disproportional to the liability side.

In order to balance, RBI adjusts the liability side by increasing the Currency in Circulation (CIC), thereby creating new money.

But again, when monetary policy normalization occurs in the developed world, capital flight occurs in emerging markets like India. During this phase, capital flight creates demand for dollars, depreciating the rupee.

RBI intervenes in the open market to stabilize the rupee, selling some of its dollar reserves. While reducing its net foreign assets (NFA), this process increases its net domestic assets (NDA).

How excess liquidity created during the quantitative easing phase is being managed?

Theoretically, CIC already created leads to the formation of broad money with the help of a multiplier effect.

The subsequent liquidity in the system will be absorbed into RBI’s balance sheet through the liquidity adjustment facility (LAF), balancing out the asset side and liability side as per the state of credit demand.

Additionally, an expanding economy and a rise in credit demand results in a steady deposit rate. Resultantly, bank deposits with RBI in the form of a cash-reserve-ratio (CRR) increase, completing the Reserve money adjustment on the liability side.

What is the current anomaly?

Throughout the current crisis, the continuous inflow of foreign money increased foreign currency assets, creating new money that had nowhere to go.

This dilemma was caused by weak credit offtake for much of the pandemic, along with rising deposits.

RBI responded via massive reverse repo operations, that resulted in increasing its deposit account and contributed vastly to reserve money.

What are the implications due to flight of capital?

Opportunities: While market volatility is creating a difficult situation for the rupee, for RBI’s balance sheet, such conditions are supportive. Global volatility involving outflows raises the value of foreign holdings on the asset side.

Risks: As credit offtake picks up, reverse repo operations will decline, opening space for an increase in CIC. This is often inflationary and may result in the rupee losing value.

Any further growth in Net Foreign Assets (NFA) without simultaneous degrowth in deposits will create incremental CIC, expanding RBI’s balance sheet unintentionally.

Also, in the event of rapid rupee depreciation, RBI will have no option but to use its reserves to safeguard the currency, exposing its balance sheet to external shocks.

Poverty and Hunger stalk India’s countryside

News: Although Macroeconomic Indicators are showing an improvement, but rural India shows a different reality. Pandemic has only heightened the problems faced by people of hinterland.  

This is a direct consequence of the inadequate safety net amid pandemic-induced joblessness and pitifully low wages. This can lead to a vicious cycle: low demand leading to lower wages, which, in turn, leads to lower incomes and a further slide in demand.

What challenges/issues is rural India facing due to the pandemic? 

i). Declining rural wages: Real wages in Rural areas are declining along with rising input prices of fertilizer and diesel. Workers are struggling to get work even for 15 days a month and even if they find some, the wage paid is significantly lower than the minimum wages for informal workers.  

ii). Unavailability of work under MGNREGA: Funds allocated to MGNREGA have been even lower than last year. People were already facing problem in getting work under MGNREGA due to heightened demand after pandemic and involvement of local politics which show bias for some beneficiaries. Less allocation of funds only compounds the problem.  

iii) Non-Functioning anganwadis – Many anganwadis are shut since pandemic and many of opened anganwadis have no proper clean spaces, no well-maintained toilets, no water connection and they also don’t provide cooked meals (which is a violation of ICDS which mandates providing cooked meals to all children in the age group of 0-6 years). 

iv). Beneficiaries left out of the NFSA– Some beneficiaries (some of whom are landless and are daily wagers) complain of being left out of the NFSA Beneficiaries list. It deprived them of the additional 5 kg of free grains supplied per person per month towards pandemic assistance.  

v) Education- Although Government schools are seeing increased enrolment recently, but they face some challenges like lack of funds for midday meals, etc. 

What are the implications?

Collapsing demand: Due to declining real wages and farm income, demand in rural areas is collapsing. This fall in income forces families to sell ration they get under scheme to buy other necessary consumables like oil, spices, etc. to meet their other essential demands 

Lack of nutritious food – This often translated into lack of nutritious food. Recently released National Family Health Survey (2019-21) show that more than a third of children in rural India continue to be underweight (low weight for age). This is also impacting the nutrition status of poor households. 

Widening knowledge gap– This may widen the knowledge gap that has arisen in the pandemic due to prolonged shutdown of schools. 

Challenges associated with China’s economy: Dragon Stumbling, World Ok

News: At present, China’s economy is growing significantly slower than other emerging markets for the first time in three decades. But the present rapid slowdown in China does not impact the world economy like it used to be. This is against the popular saying that as China goes, so goes the global economy.

China accounted for around 35% of global GDP growth in the years before the pandemic, but that share dropped in 2020 and is now around 25%.

Why Chinese economy is slowing down?

China is facing the drag of a shrinking population and its massive debts.

-China has been turning inward, replacing a growth model driven by trade with one driven by domestic consumers. China launched Made in China 2025 campaign in 2015 to become more self-sufficient by buying more supplies and developing more technology at home. That means relying less on the US and other emerging markets.

-The US and other European nations adopted policies to “decouple” from China. This resulted in buying more supplies from China’s commercial rivals, like Mexico, Vietnam and Thailand.

Why the global economy is not slowing when China is slowing down?

-Earlier, other economies were in close sync with China. But economic links have weakened during the pandemic,

–Promotion of greener technology: This is raising prices for all kinds of raw materials, which are the main exports for many emerging markets. “Green metals” like aluminium and copper, which are essential to electric vehicles as well as wind and solar power, are supplied mainly by emerging markets such as Peru and Chile.

Other global growth drivers are gaining momentum: The digital revolution is raising demand for computer chips and other high-tech products, boosting exports out of advanced emerging markets like Taiwan and South Korea. Similarly, Mobile internet technology is rapidly transforming the domestic economies of larger, less advanced emerging markets.

How the pandemic has worsened inequality in India

News: Inequality in India is rising. Covid has exacerbated the issue.

What are the latest findings?

The latest edition of the World Inequality Report shows that the top 10% earn 57% of national income, and within that top 1% earns 22% while the bottom 50% earn only 13% of the income. This deeply impacts social mobility. This has also translated to inequalities in education and the labour market.

What trends emerge from labour market analysis?

Since the onset of the pandemic, there has been a decline in labour force participation. This means that despite a young population, the number of people looking for jobs has fallen.

Second, over the same period, the unemployment rate has risen from 7.5% to 8.6%. So among those looking for jobs, those unable to find jobs, even at lower wages have risen.

Third, among those in jobs, the casualization of labour has increased.

How does inequality affect social mobility?

Rapid growth lowers the obstacles to mobility. But subdued or uneven growth leads to disproportionate benefits to richer people. For instance, there will be disparities in consumption, income, and wealth.

According to ASER Report, the learning gaps between children from poor and affluent households will widen with inequality.

This will lead to greater demand for redistribution. Thus, this scenario needs to be arrested for better social mobility.

Poverty and Hunger stalk Indias countryside

Introduction– Although Macroeconomic Indicators are showing an improvement but rural India shows a different reality. Pandemic has only heightened the problems faced by people of hinterland.  

What are the issues facing rural India as an effect of pandemic and what are their implications? 

1) Declining rural wages:  

Real wages in Rural areas are declining along with rising input prices of fertilizer and diesel. Workers are struggling to get work even for 15 days a month and even if they find some, the wage paid is significantly lower than the minimum wages for informal workers.  

Unavailability of work under MGNREGA: Funds allocated to MGNREGA have been even lower than last year. People were already facing problem in getting work under MGNREGA due to heightened demand after pandemic and involvement of local politics which show bias for some beneficiaries. Less allocation of funds only compounds the problem.  

Implications– Due to declining real wages and farm income, demand in rural areas is collapsing. This fall in income forces families to sell ration they get under scheme to buy other necessary consumables like oil, spices, etc. to meet their other essential demands 

2) Food Security 

Non-Functioning anganwadis – Many anganwadis are shut since pandemic and many of opened anganwadis have no proper clean spaces, no well-maintained toilets, no water connection and they also don’t provide cooked meals (which is a violation of ICDS which mandates providing cooked meals to all children in the age group of 0-6 years). 

Beneficiaries left out of the NFSA– Some beneficiaries (some of whom are landless and are daily wagers) complain of being left out of the NFSA Beneficiaries list. It deprived them of the additional 5 kg of free grains supplied per person per month towards pandemic assistance.  

Implications – This often translated into lack of nutritious food, recently released National Family Health Survey (2019-21) show that more than a third of children in rural India continue to be underweight (low weight for age). This is also impacting the nutrition status of poor households. 

3)Education- 

Although Government schools are seeing increased enrollment recently but they face some challenges like lack of funds for mid-day meals, etc. 

Implications– This may widen the knowledge gap that has arisen in the pandemic due to Prolonged shutdown of schools. 

Conclusion– 

This is a direct consequence of the inadequate safety net amid pandemic-induced joblessness and pitifully low wages. This can lead to a vicious cycle: low demand leading to lower wages, which, in turn, leads to lower incomes and a further slide in demand.   

“The Parliament attack was 20 years ago, are we more prepared today?”

Source– This post is based on the article “The Parliament attack was 20 years ago, are we more prepared today?” published in The Indian express on 13th Dec 2021.  

News– 20 years of 2001 Attack on parliament, an analysis of how much we have improved. 

What has been the scene in Internal security landscape since the 2001 attack on parliament  

Despite the innovations and improvements in intelligence infrastructure there have been several terrorist attack on India since the 2001 attack like 2008 Mumbai attacks, Uri, Pathankot attack, 2019 pulwana strike, Chinese incursions in Ladakh and many more.  

How can India improve its situation 

1. Most of the times government responds to terrorist attacks with immediate retaliatory measures which have short shelf life. Example- Operation Parakram after the parliament attack. However what is needed is a clear political strategy 
2. Strong hard power capability. Example- Israel conveys its firm anti-terrorism stand by having a robust intelligence gathering mechanism and social media messaging. 
3. A social environment needs to be created which does not give impetus to such activities. Adversaries can take advantage of unstable social environment.(discord) 
4. India needs to undertake reform of its intelligence infrastructure and there is also pressing need for robust intelligence gathering mechanism . 
5. There is need to fix accountability given that there are plethora of intelligence agencies in India and they have often overlapping functions. 
6. India’s efforts at reforming its security architecture and processes have historically been reactive, piecemeal and only incremental rather than holistic. For example, in the aftermath of the kargil War with Pakistan in 1999. 

Conclusion 

India needs to undertake proactive reforms and not just implement corrective measures subsequent to these crises. 

“The dream of being a Chip hub”

News-India is aiming to manufacture silicon semiconductor chip, it has recently made efforts to set up a fabrication plant with the help of Taiwan, which is a leader in the Chip making industry. 

Have there been any initiatives for setting up Chip making Industry in the past  

NASSCOM had in the past tried to set up ecosystem for establishing chip making industry in Andhra Pradesh  

What are the factors that make any place an ideal location for chip making Industry 

Availability of water, sand (raw material for making silicon ingots), connectivity to all three major transport means (air, rail, road) and availability of human resource (technical experts). 

What other factor should be taken care of while setting up the foundation of chip making industry 

Although establishment of Chip making Industry is an important step, but what is needed is a system on a chip ecosystem (SoCs). 

SoCs is a combination of chip making, designing and intellectual property.  

Intellectual Property will enable India to take complete advantage of chip making capability, in the absence of which it will just remain a mere manufacturer of base material. 

Way forward- 

Government needs to take definite steps to enable India to make a mark in niche chip making industry. Also, it needs to be ensured that the industry keeps growing even after government support is withdrawn after some years. 

“How Delhi is leading the charge in electric vehicle adoption”

News– Electric Vehicle Penetration in Delhi has reached 9 percent as against the national average of 1.6 percent, making Delhi leading state in India in EV penetration. This anomaly exists despite the countrywide launch of FAME (Faster Adoption and Manufacturing of E-vehicles) Scheme by the central government.  

How Electric vehicle adoption may help Delhi and Country to fight Pollution 

Vehicular emission is one of the most significant sources of pollution in the country and especially in Delhi. Several studies show that a third of all PM 2.5 emissions and over 80 percent of CO2 and NOx emissions are from vehicular exhaust. Experts suggest that a reduction in vehicular pollution will require a mass shift of people to EVs, apart from greater adoption of public and non-motorised transport. 

What inhibits the adoption of Electric Vehicle Nationally and how Delhi has overcome these 

1. High upfront cost of EVs– Even after subsidies under schemes like FAME, buyers still need to pay more for EVs upfront than for petrol/diesel vehicles. The wide acceptance in Delhi for Electric vehicle can be attributed to policies of Delhi government like targeting the most polluting vehicle segments (two and three wheeler). It has fully exempted such EVs from road tax and registration fees, making subsidies available hassle free for the masses. 
2. Unavailability of charging infrastructure- India will need widespread charging infrastructure to make EV a popular choice. Delhi is planning to provide public charging within 3 km anywhere in the area.  It already has the highest number of installed charging stations in the country. Delhi government is planning to provide charging infrstructure at all important public places like metro stations, offices, malls ,etc. 
3. Low public awareness of EVs and its benefits — both economic and environmental. 

Delhi launched widespread campaign comprising print, radio, TV ads and targeted outreach to RWAs, youth and corporates was launched that involved public and celebrities. 

For widespread adoption of Electric vehicle there is need of strong political will, comprehensive reform roadmaps and their implementation. Best practices from states can be implemented nationally to have palpable outcomes in near future. 

Prelims Oriented Articles (Factly)

RBI Governor, PM signal reforms in trouble-prone urban co-operative banks

Source: This post is based on the article “RBI Governor, PM signal reforms in trouble-prone urban co-operative banks” published in The Hindu on 12th Dec 2021.

What is the news?

Reserve Bank of India (RBI) Governor has indicated that the banking regulator will bring in sweeping regulatory changes to reform urban co-operative banks.

The Prime Minister, the Union Finance Minister and the Governor were present at an event to mark the payment of nearly ₹1,300 crore to over 1 lakh depositors whose funds were stuck in distressed banks for years.

PM, speaking at the event, said that an additional three lakh depositors would get their hard-earned savings, stuck in other banks, soon.

What are the views expressed by the PM, the Union Finance Minister and the RBI Governor on various issues?

By the PM:

When the RBI will oversee co-operative banks’ functioning, this will also raise depositors’ confidence further. The Govt has created a new Co-operation Ministry. The idea is to strengthen the co-operative system and empowering the co-operative banks further.

By Union Finance Minister:

Union Finance Minister, also stressed that the approach of the government has been sensitive to the needs of the middle class.

While laws are generally applied prospectively from the date they are passed by Parliament and notified, the Finance Minister said the government made an exception while amending the relevant Deposit Insurance laws.

By RBI Governor:

Urban Cooperative Banks have been plagued by a series of failures, and warned people against parking their savings in banks offering high returns.

Govt’s decision to raise the insured limit for bank deposits to ₹5 lakh from ₹1 lakh with a 90-day time limit to pay out such deposits is a landmark development. But the payment of Deposit Insurance should be seen as a measure of last resort.

The Central bank keeps depositors’ interests on top while dealing with policy challenges and will continue to ensure that the entire banking system remains robust.

RBI has come out with new governance guidelines for commercial banks, and it has constituted a committee for bringing about reforms in the urban co-operative sector. That report has been received, and RBI will be taking action based on it.

Over 1 lakh people getting pension directly into their bank accounts through SAMPANN project

Source: This post is based on the article “Over 1 lakh people getting pension directly into their bank accounts through SAMPANN project” published in PIB on 9th December 2021.

What is the News?

Over one lakh people have received pensions directly in their bank accounts through the SAMPANN (System for Accounting and Management of Pension) project.

What is SAMPANN?

The SAMPANN Initiative was launched in 2018 by the Controller General of Communication Accounts (CGCA), Department of Telecommunications.

Purpose: It is a seamless online pension processing and payment system for Department of Telecommunications pensioners. It provides direct credit of pension into the bank accounts of pensioners.

Key Features of SAMPANN

Direct disbursement of pension on a timely basis without intermediaries,

Single window system for complete pension process,

Every pensioner gets access to key information like payment history along with a login option,

Tracking of pension status from home encourages transparency and accountability,

Online submission of grievances and timely SMS alerts.

Significance of SAMPANN Initiative

The system has helped the Department in the faster settlement of pension cases, improved reconciliation/auditing and ease of accounting.

It has also ensured recurring monthly savings to the Government of India on account of the Commission being paid to Banks/Post Offices for payment of Pension.

Earth is getting a ‘black box’ to hold humans accountable for climate change

Source: This post is based on the article “Earth is getting a ‘black box’ to hold humans accountable for climate change” published in Indian Express on 11th December 2021.

What is the News?

A steel structure is known as “Earth’s Black Box” will soon record rising temperature trends as well as other information related to climate change from a remote Australian island.

What is the Earth Black Box?

Earth Black Box is a steel structure that will record every step humans take towards the civilization to crash. It will basically provide an unbiased account of the events that lead to the demise of the planet, hold accountability for future generations and inspire urgent action.

This project was created as a collaboration between researchers from the University of Tasmania, artists from the Glue Society collective and members of marketing communications company Clemenger BBDO among others.

Location: The box will be constructed in Tasmania, an Australian island state off the south coast. This location was chosen for its geopolitical and geological stability.

This Box is expected to be completed in early 2022.

How will the Earth Black Box work?

The box will be filled with a mass of storage drives and have internet connectivity, all powered by solar panels on the structure’s roof. Batteries will provide backup power storage.

The box will record our actions (or inaction) by searching the internet for keywords relating to climate change from newspapers, social media and peer-reviewed journals. 

It will also collect daily metrics including average oceanic and land temperatures, atmospheric carbon dioxide concentration and biodiversity loss.

Hence, the idea behind this box is that if the Earth does crash as a result of climate change, this indestructible recording device will be there for whoever’s left to learn from that.

DRDO & Indian Air Force successfully flight-test indigenous Stand-Off Anti-Tank Missile

Source: This post is based on the article “DRDO & Indian Air Force successfully flight-test indigenous Stand-Off Anti-Tank Missile” published in PIB on 11th December 2021.

What is the News?

Defence Research and Development Organisation (DRDO) and Indian Air Force (IAF) flight have successfully tested helicopter-launched Stand-off Anti-Tank (SANT) missile from Pokhran ranges.

What is SANT Missile?

Stand-off Anti-Tank(SANT) is an indigenously designed and developed air-to-surface missile.

The missile has been designed and developed by Research Centre Imarat (RCI), Hyderabad in coordination with other DRDO labs.

Key Features of SANT Missile

Firstly, the missile is equipped with a state-of-the-art millimetre wave(MMW) seeker, which provides high precision strike capability from a safe distance.

Secondly, the missile can neutralise targets in a range of up to 10 km. 

Significance of the launch of SANT Missile

In recent times, SANT is the third in the series of indigenous stand-off weapons which has been tested. The others were the long-range bombs and smart anti airfield weapons.

Hence, the missile is expected to further strengthen the arsenal of the Indian Air Force(IAF).

Successful tests carried out for Pinaka Extended Range System, Area Denial Munitions & New Indigenous Fuzes

Source: This post is based on the article “Successful tests carried out for Pinaka Extended Range System, Area Denial Munitions & New Indigenous Fuzes” published in PIB on 11th December 2021.

What is the News?

The Pinaka-ER Multi Barrel Rocket Launcher System was successfully tested at the Pokhran range in Jaisalmer district.

What is Pinaka-ER?

​​Pinaka-ER is the upgraded version of the Pinaka which has been in service with the Indian Army for the last decade. 

Designed by: The system is jointly designed by laboratories of Defence Research and Development Organisation (DRDO) – Armament Research & Development Establishment (ARDE), Pune and High Energy Materials Research Laboratory (HEMRL), Pune.

Range: The extended range of the new Pinaka is over 70 km, as opposed to the 45 km the system currently has.

Moreover, it has the ability to strike within 10 metres of where it is aimed, allowing the army to destroy a terrorist camp, or an enemy post, logistics dump or headquarters without needing to send soldiers across the border.

What is Pinaka?

Pinaka is a multiple rocket launcher. It is used for attacking the adversary targets prior to the close-quarter battles. 

Centre to organize the first of its kind innovation week to encourage Startup ecosystem in India

Source: This post is based on the article “Centre to organize the first of its kind innovation week to encourage Startup ecosystem in India” published in PIB on 12th December 2021.

What is the News?

The Government of India is organizing the first of its kind innovation week titled “Celebrating Innovation Ecosystem” to encourage the Startup ecosystem in India.

About Celebrating Innovation Ecosystem Week

Organized by: Department for Promotion of Industry and Internal Trade (DPIIT)

Aim: To bring together India’s key startups, entrepreneurs, investors, policymakers and other national or international stakeholders to exchange knowledge on best practices on nurturing startup ecosystems.

Themes: The main themes of the event are international engagements, market access and incubation support, funding support to start-ups.

Significance: The event will also mark the 6th anniversary of the ‘Startup India’ initiative launch.

About Startup India Initiative

Click Here to read about it

Startups in India

As of June 2021, 50,000 startups across have been recognized as startups by DPIIT.

Each State and UT has at least one startup. About 1.7 lakh jobs were created by recognized startups in the 2020-2021 period alone. 

The sectors that had the maximum registered startups were ‘Food Processing’, ‘Product Development’, ‘Application Development’, ‘IT Consulting’ and ‘Business Support Services’. 

The leadership teams of 45% of startups have a woman entrepreneur, a trend that will inspire more women entrepreneurs to turn their ideas into startups.

Kerala row and beyond: Governor’s role in state, central universities

Source: This post is based on the article “Kerala row and beyond: Governor’s role in state, central universities” published in Indian Express on 13^th Dec 2021.

What is the news?

Kerala Governor has written a letter to the Kerala Chief Minister expressing his desire to step down as Chancellor, alleging political interference in the universities. 

What is the role of Governor in State Universities?

The governor of the state is the ex-officio chancellor of the universities in that state. As the chancellor, he presides over the university convocation and also appoints the Vice-Chancellor.

But the Governor’s exact power as the Chancellor are laid out in the statutes that govern the universities under a particular state government.

For example: In Kerala, the Governor’s official portal states that as Chancellor, he acts independently of the Council of Ministers and takes his own decisions on all University matters.

On the other hand, the website of Rajasthan’s Raj Bhawan states that the Governor appoints the Vice Chancellor on the advice/ in consultation with the State Government.

What about Central universities?

Under the Central Universities Act, 2009, the President of India shall be the Visitor of a central university.  

With their role limited to presiding over convocations, Chancellors in central universities  are appointed by the President in his capacity as Visitor. 

The VCs too are appointed by the Visitor from panels of names picked by search and selection committees formed by the Union government. 

The President, as the Visitor, also has the right to authorise inspections of academic and non-academic aspects of the universities and also to institute inquiries.

Explained: Bank deposit insurance programme and norms to access funds

Source: This post is based on the article “Explained: Bank deposit insurance programme and norms to access funds” published in Indian Express on 13th December 2021.

What is the news?

The Prime Minister has addressed a programme titled ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to ₹5 Lakh’.

What did the PM say on deposit insurance?

Recently, Parliament passed the Deposit Insurance and Credit Guarantee Corporation (DICGC) Amendment Act, 2021. Under the Act, each depositor in a bank is insured upto a maximum of ₹5 lakh for both principal and interest amount.Earlier, the depositor insurance limit was ₹ 1 lakh. 

Also, earlier, the liability of DICGC kicked in only when the order of liquidation was passed against a bank.

But now the account holders can access their insured deposit amount within 90 days of such a liability arising in the event of a bank coming under the moratorium imposed by the Reserve Bank of India (RBI).

Hence, this has ensured that the deposits worth Rs 76 lakh crore were insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act providing full coverage to around 98% of bank accounts.

Other Articles Related to DICGC Act:

– Depositors to get up to Rs 5 lakh within 90 days if bank under moratorium

– Changes to deposit insurance

United Nations grants observer status to International Solar Alliance in a historic decision

Source: This post is based on the article “United Nations grants observer status to International Solar Alliance in a historic decision” published in PIB on 11^th Dec 2021.

What is the news?

The United Nations General Assembly (UNGA) has granted Observer Status to the International Solar Alliance (ISA).

This will help provide for regular and well-defined cooperation between the Alliance and the United Nations that would benefit global energy growth and development.

About International Solar Alliance (ISA)

– Click Here to read about ISA

Current Members of ISA: 101 members after being joined by the US.

ISA Major Initiative: ISA is the nodal agency for implementing One Sun One World One Grid (OSOWOG), which seeks to connect 140 countries through a common grid that will be used to transfer solar power generated in one region to feed the electricity demands of others.

Headquarters: Gurugram

Haiderpur Wetland added to Ramsar site; total tally goes up to 47

Source: This post is based on the article “Haiderpur Wetland added to Ramsar site; total tally goes up to 47” published in AIR on 11^th Dec 2021.

What is the news?

Haiderpur Wetland of Western Uttar Pradesh has been recognized as 47th Ramsar site in the country and 10th in Uttar Pradesh.

About Haiderpur Wetland

Haiderpur Wetland is a human made wetland situated on the Muzaffarnagar-Bijnor border in Uttar Pradesh. 

It was formed in 1984 by the construction of Madhya Ganga Barrage at the confluence of Solani and Ganga rivers and is a part of Hastinapur Wildlife Sanctuary.

Haiderpur Wetland supports a variety of plant species as it is a source of freshwater and groundwater recharge.

It also supports more than 15 globally threatened species such as the critically endangered gharial and the endangered hog deer, black-bellied tern, steppe eagle, Indian skimmer and gold mahseer.

The site also regularly supports more than one per cent of the population of greylag goose (Anser anser) and bar-headed goose (Anser indicus).

What is the significance of this recognition?

The recognition of the Haiderpur wetland is significant for the ecology that is suffering the impact of climate change and losing varied plant and animal species. 

As per the Ramsar Convention on wetlands report, the wetlands are disappearing three times faster than forests, with 35% of the wetlands lost from 1970-2015.

Hence, this is an alarming situation demanding urgent attention, as 40% of the world’s plant and animal species breed in wetlands. They are also vital feeding and breeding grounds for migratory birds.

14566 – National Helpline Against Atrocities on SCs/STs

Source: This post is based on the article “14566 – National Helpline Against Atrocities on SCs/STs” published in PIB on 11^th Dec 2021.

What is the news?

The Ministry of Social Justice and Empowerment has launched a National Helpline Against Atrocities(NHAA) – 14566.

About National Helpline Against Atrocities (NHAA) 

The helpline has been launched to generate informed awareness about the various provisions of the Prevention of Atrocities (PoA) Act,1989 and the Protection of Civil Right (PCR) Act,1955 that are aimed at ending discrimination and providing protection to all.

The Helpline is available on toll-free number “14566” across the country in Hindi, English and regional language of the State/UTs.

Mandate: The helpline will ensure that every complaint is registered as FIRs, relief is provided, all registered complaints are investigated, and all chargesheets filed are prosecuted in the Courts for decision – all within the given timelines in the Act.

Key Features of the National Helpline Against Atrocities (NHAA) 

Way to Access: The Helpline can be accessed by making a voice call /VOIP either from a mobile or landline number of any Telecom Operator across the country. It is also available as a web based self-service portal. 

Grievances Redressal & Tracking System: A Docket number is given for each complaint received from Victim/Complainant/NGOs regarding non-compliance of the POA Act, 1989 and the PCR Act, 1955. The status of the grievance can be tracked by complainant/NGOs online.

Auto Compliance & Feedback Mechanism: Every provision of the POA Act, 1989 and the PCR Act, 1955 related to the victim is monitored and compliance is ensured by triggering communication.

The evolution and framing of the constitution

Source: This post is based on the article “The evolution and framing of the constitution” published in The Hindu on 13th December 2021.

What is the news? 26th November 2021, marked as India’s 72nd Constitution Day.

About the framing of the constitution

It starts with the demand of Pt. Jawahar Lal Nehru in 1935 constituent assembly to frame a constitution for free India. He wanted the election to be held in the assembly on the basis of adult franchise.

The making of the constitution was completed in November 1949 after almost three years. The draft constitution was adopted by the Constituent Assembly on 26^th November 1949 but came into force on January 26, 1950. The reason for choosing this day is because Nehru declared Poorna Swaraj in 1930 on that day.

What are the contribution of famous leaders?

Jawahar Lal Nehru: Nehru gave the objective resolution, which is the basis of the Preamble of the constitution.

Dr B.R. Ambedkar: He deferred with Gandhi on many crucial issues and had serious differences with Congress. He ridiculed civil disobedience, non-cooperation and Satyagraha and said “these methods are nothing but the grammar of anarchy and the sooner they are abandoned, the better for us”. The constituent Assemble who is the majority of congressmen chose him as chairman of the drafting committee.

What does the constitution say, about justice?

Article 142  of the Constitution of India, deals with the Enforcement of decrees and orders of the Supreme Court, in which the judiciary is neither responsible to Executive and Legislative in respect of its functions.

The doctrine of ‘basic structure’ propounded by the Supreme Court in the Kesavananda Bharati case has in a way saved the Constitution from being mutilated by politicians who believe in neither democracy nor justice.