{"id":19188,"date":"2018-04-27T14:51:51","date_gmt":"2018-04-27T09:21:51","guid":{"rendered":"http:\/\/blog.forumias.com\/?p=19188"},"modified":"2018-04-27T14:51:51","modified_gmt":"2018-04-27T09:21:51","slug":"answers-mains-marathon-upsc-mains-current-affairs-questions-april-26-2018","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answers-mains-marathon-upsc-mains-current-affairs-questions-april-26-2018\/","title":{"rendered":"Answers: Mains Marathon \u2013 UPSC Mains Current Affairs Questions \u2013 April 26, 2018"},"content":{"rendered":"<p><strong><a href=\"http:\/\/blog.forumias.com\/mains-marathon\/\" target=\"_blank\" rel=\"noopener\">Archives<\/a><\/strong><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">Q.1) In the recent past, India and China has witnessed a seesaw effect. However, there have been significant efforts from each side to reach out to each other. What are the major issues on the table which need immediate attention and how these issues are to be tackled effectively? (GS \u2013 2)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India and China are rising economies whose interests have clashed on various fronts. Both the countries have been careful to accommodate each others concerns and not let a conflict escalate into a full blown war as was seen in the recent Doklam standoff.<\/span><\/p>\n<p><strong> Major issues between India and China:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">1)Disputed boundary<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2)Widening trade deficit in China\u2019s favour<\/span><\/p>\n<p><span style=\"font-weight: 400;\">3)Dumping of Chinese goods in India<\/span><\/p>\n<p><span style=\"font-weight: 400;\">4)China Pakistan Economic Corridor, which runs through disputed territory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">5)China\u2019s silent veto in United Nations Security Council against designating Masood Azhar as a global terrorist. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">6)China\u2019s opposition to India\u2019s entry into Nuclear Suppliers Group and support for Pakistan\u2019s entry<\/span><\/p>\n<p><span style=\"font-weight: 400;\">7)Trying to encircle India through \u201cString of Pearls\u201d which is now a part of One Belt One Road initiative.<\/span><\/p>\n<p><strong>Steps to tackle the issues:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">1)Efficient use of existing mechanisms such as Joint Working Group<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2)Strengthening and encouraging India\u2019s exports to narrow trade gap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">3)Tackling the issue of dumping at multilateral forums like WTO along with the support of other countries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">4)Taking steps to resolve the Kashmir issue and defining China\u2019s rights and territorial limits in the region. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">5)Approaching other countries to pressurise China to designate Masood Azhar as a global terrorist.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">6)Assessing the pros and cons of One Belt one Road initiative and consider joining it or looking for alternatives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India and China are neighbours who are trying to establish themselves in the region due to which clashes are inevitable. The way in which Doklam standoff was handled shows the maturity of both the nations. Taking this as a new beginning, all outstanding issues should be resolved one by one for the peace and prosperity of the region.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Q.2) What is Rashtriya Gram Swaraj Abhiyan? How it\u2019ll help in strengthening the Panchayati Raj system across the country? (GS-2)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Discuss the role of the recently launched Rashtriya Gram Swaraj Abhiyan in strengthening the Panchayati Raj system across the country. (GS \u2013 2) \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India has adopted a three tier system of federation with the Panchayati Raj at the bottom. Various steps have been taken over the years to strengthen the grassroot level democracy and pave way for inclusive growth. Rashtriya Gram Swaraj Abhiyan is another step in this direction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rashtriya Gram Swaraj Abhiyan aims at making rural local bodies self-sustainable, financially stable and more efficient.It seeks to address critical gaps that hinder the success of Panchayats by enhancing their capacities and effectiveness, and promote devolution of powers and responsibilities. It seeks to provide training to the elected representatives to effectively discharge their duties. Recently, under the scheme a roadmap for development of tribal areas of Madhya Pradesh over the next five years was developed and Rs 2 lakh crore has been allocated for the development of areas under tribal panchayats.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The major problems plaguing panchayati raj in India are Funds, Functions and Functionaries. This scheme seeks to address all these issues. Sufficient funds have been allocated for the development of these regions. By providing proper training the functionaries i.e, the elected representatives would be able to better equipped to handle all the functions. Also schemes are already in place to train women representatives so that they do not act as mere proxies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, the newly launched scheme tries to cover all the critical gaps in the working of Panchayati Raj in India and strengthen india\u2019s democracy from below.<\/span><span style=\"font-weight: 400;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Q.3) Write short notes on:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">a) \u2018Liquidity crisis\u2019 in economics (GS \u2013 3)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">b)\u00a0 Infrastructure Investment Trusts in economics (GS \u2013 3)<\/span><\/p>\n<p><b>a) Liquidity crisis:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Liquidity crisis is a situation where an individual, banks, financial markets, business or government face <\/span><b>shortage of cash or lack of immediately available funds <\/b><span style=\"font-weight: 400;\">to meet financial needs such as repayments and\/or urgent spending.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In case of liquidity crisis, <\/span><b>value of an entity\u2019s assets remain greater than the value of its liabilities<\/b><span style=\"font-weight: 400;\">. However, in case of solvency crisis, the total value of an entity\u2019s assets is less than the value of its overall liabilities.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Liquidity crisis occur in banks when there is a shortage of immediately available customer deposits and other monetary resources. In such a case, banks have insufficient cash to meet depositors\u2019 withdrawals or payments and also to finance loans<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In financial markets, liquidity crisis occurs when there is either a shortage of assets offered for sale or the money to buy them, become unavailable.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Liquidity crisis can have a domino effect by spreading to different financial institutions and markets thus affecting the entire economy<\/span><\/li>\n<\/ul>\n<p><b>b)Infrastructure Investment Trusts<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Infrastructure Investment Trusts or InvITs are instruments that work like mutual funds. An InvIT <\/span><b><i>allows one to invest in infrastructure projects <\/i><\/b><span style=\"font-weight: 400;\">such as road and power sectors.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">InvITs raise funds from a large number of investors and directly invest in infrastructure projects or through a special purpose vehicle<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><b>Purpose:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">o \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Infrastructure projects suffered from lack of availability of long-term capital and have depended on temporary bank finance<\/span><\/p>\n<p><span style=\"font-weight: 400;\">o \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Therefore, InvITs were designed to:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0attract low-cost, long term capital <\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0generate fresh equity capital for infrastructure projects<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0reduce funding pressure on the banking system<\/span><\/li>\n<\/ol>\n<ul>\n<li><b>Legislation:<\/b><span style=\"font-weight: 400;\"> InvITs are formed by complying with the <\/span><b><i>Sebi Infrastructure Investment Trust Regulation, 2014 <\/i><\/b><\/li>\n<\/ul>\n<p><b>Structure:<\/b><span style=\"font-weight: 400;\"> There are<\/span><b> 4<\/b><span style=\"font-weight: 400;\"> important parties to an InvIT \u2014 <\/span><b><i>sponsors, investment managers, project managers and the trustee.<\/i><\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><b>Two types:<\/b><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0One investing completed and revenue generation infrastructure projects<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0One which has flexibility to invest in completed or under-construction projects<\/span><\/li>\n<\/ol>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><b>Benefits:<\/b><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Facilitate financing\/refinancing of infrastructure projects<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Unlock tied up capital of developers<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Lower domestic financial institutions\u2019 loan exposure<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Attract foreign capital<\/span><\/li>\n<\/ol>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><b>Risks:<\/b><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Subjected to the vagaries of the stock exchanges<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Economic downturn or project delays may hit infrastructure projects and result in lower returns<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0Investors in InvITs have no control over investments<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Archives Q.1) In the recent past, India and China has witnessed a seesaw effect. However, there have been significant efforts from each side to reach out to each other. What are the major issues on the table which need immediate attention and how these issues are to be tackled effectively? (GS \u2013 2) India and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answers-mains-marathon-upsc-mains-current-affairs-questions-april-26-2018\/\">Continue reading <span class=\"screen-reader-text\">Answers: Mains Marathon \u2013 UPSC Mains Current Affairs Questions \u2013 April 26, 2018<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":2292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[25,9],"tags":[],"class_list":["post-19188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mains-marathon-answers","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2017\/06\/pen-paper-laptop.jpg?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704600181},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/19188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=19188"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/19188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/2292"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=19188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=19188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=19188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}