A brief of newspaper articles for the day bearing
relevance to Civil Services preparation
National
[1]. NDC to be scrapped, NITI Aayog council likely to get its powers:
What is National Development Council (NDC)?
The News:
NDC which acted as an approval body for planning commission’s five year plan and development agenda is going to be scrapped.
Who gets its power?
NITI Aayog governing council will need to pass the resolution to absorb the powers of NDC.
What is NITI Aayog? Click Here to Read
What is NITI Aayog Governing Council?
The governing council is the highest decision making body. The composition of Governing Council is as follows:
1) Prime Minister – Chairperson
2) Ex – Officio Members
3) Vice – Chairperson
4) Full time members
5) Chief Ministers of States
6) Lt. Governor/Administrators of Union Territories
[2]. Location too matters for Growth
The Question: Development: Is it aided by community or location?
Observations Based on Census 2011 Data:
A. COMMUNITY WISE
1) Highest Sex Ratio: Christians followed by Muslims
2) Low Sex Ratio: Hindu, Jain and Sikhs followed by Buddhists
3) Sex Ratio among Jains and Sikhs have improved since 2001.
B. REGION WISE
1) Kerala has high sex ratio among all Hindus, Muslims and Christians. The southern states and states with high tribal population has shown high sex ratio cutting across all the communities.
2) Haryana the low sex ratio area has low sex ratio across the communities including Muslims.
3) While Muslims by large seem unaffected by location with sex ratio dipping to 910 there is a severe drop in sex ratio in Christian community in areas like Punjab and Haryana falling even below 900.
Other Indices:
Literacy among the Muslims are the lowest among the country. But literacy rate for Muslim women in Kerala is higher than that for men of all communities in Bihar.
FACTS:
- Literacy as defined per the need of census: Literacy, as defined in Census operations, is the ability to read and write with understanding in any language. A person who can merely read but cannot write is not classified as literate. Any formal education or minimum educational standard is not necessary to be considered literate.
- Sex Ratio: is the ratio of females to males in a population.
- Average Sex Ratio of India: 943
- State with Higest Sex Ratios: Kerala;1084 Tamil Nadu;995
- UT with Highest Sex Ratio: Puducherry;1037
[3]. $50-mn loan to fund education of minorities
Context: The Union government and the World Bank signed a $50-million credit agreement for a project aimed at helping young people from minority communities complete their education and improve their employment opportunities.
The Scheme: Nai Man
zil
Objectives of the Scheme:
a) Integrated Education and Training Programme
b) Target: Minority Youth
c) Improving the employability and performance of minority youth in labour market by providing modern education and skill training.
Why the Need?
Around 20 per cent of those between 17 and 35 years of age from minority groups such as Muslims, Parsees, Jains, Buddhists, Christians, and Sikhs are out of the labour force, according to the World Bank.
[4]. Smart Planning for Smart Cities
Context: Implementation stage of Smart City Plan of Government of India
According to Author, For the SMART CITY MISSION to succeed there are five essential components:
a) Visionary leadership;
b) Global open standards;
c) Public private partnership;
d) Smart regulation (concerted efforts to identify regulations which do not lend themselves to a smart city and proactively address them—like stamping of boarding passes and hand baggage tags at airport security); and
e) Establishing new ecosystems to deliver these projects.
The whole program needs to be demand-driven, citizen-led phenomenon for it to be a success.
The author states that India should inspire itself from solution in west but should not try to copy paste the same in India.
Some major initiatives for the mission should be:
a) Building an integrated masterplan or a blueprint on how we conceive our smart city to be in the next 15-20 years;
b) Leveraging ICT as a key enabler to delivering the smart city vision;
c) Building an implementation plan with prioritised services based on citizen feedback and the monetisation potential of those services, thereby reducing overall funding requirements;
d) Focusing on the most pressing problems of the city and looking for solutions specific to the city through consultation—what works for Pune might not work for Vizag. In the process, not forgetting the culture of the city;
e) Planning an integrated network across all verticals in the city and avoiding the silo-based approach that most cities today use. This will allow for a more efficient means of service delivery to the citizens;
f) Building an innovation ecosystem.
International
[1]. Beijing’s race for Eurasian Heartland
Context: The recent understanding between China and Russia and the effect it can have on global geopolitics and the quick clever reply of China to US on its Pivot to Asia doctrine.
Pivot to Asia Doctrine: For Washington, improving relations with established markets like Tokyo and Seoul and emerging ones like Jakarta and Manila presents tremendous opportunity, while for these countries the American presence acts as a check against growing Chinese power. This is what US has precisely have in mind to counter Chinese power it looks to align itself with regional powers of Asia who are wary of China as well as emerging nations who are apprehensive of Chinese Power.
China’s Reply:
China is building a credible Pacific-centred nuclear and conventional deterrents in 2015.
This includes
a)reinforcement of its nuclear second-strike capability by mounting JL-2 missiles, with a range of 7,350 km, on its JIN class submarines.
b) Russia was a major partner in building the Chinese military deterrent. Beijing concluded with Moscow a decisive S-400 air defence deal. The contract nullifies threats by fighter jets or ballistic missiles by the U.S. or Japan
c) Russians are also supplying Su-35 fighter jets to China. The acquisition of 24 Su-35 planes would greatly extend China’s reach over the South China Sea. Su-35 planes, capable of taking off from short runways, will cover a large footprint if deployed from China’s newly developed artificial islands in the South China Sea.
Energy Cooperation:
China has signed a $400 billion import deal that would funnel gas in copious quantities for the next 30 years through the Power of Siberia pipeline.
Both China and Russia are working together on undermining the hegemony of the U.S. dollar. The two have already accelerated trading in the Chinese yuan and the Russian ruble. The currency swap tool has significantly eased pain inflicted upon Moscow through sanctions imposed after the crisis in Ukraine.
Trading in local currencies, exemplified by the two partners, is now being reinforced in an institutional manner by two powerful non-western financial entities — The New Development Bank (NDB) of the Brazil-Russia-India-China-South Africa (BRICS) grouping and the China-led Asian Infrastructure Investment Bank (AIIB).
Restructuring the Economy
China through its One Belt One Road initiative and $ 40 billion Silk Road economic belt took major steps to restructure its economy through mega-investments in Eurasia under its Belt and Road initiative. China understand the cooperation it needs from not just Russia but South Asian flank and proactive engagement of India and Pakistan to realise the two initiatives.
Also, China has brought India on board the Eurasian platform by partnering it in major initiatives to transform the international financial architecture.
In causing a structural breach of uniploar world, China and Russia have set the stage either for a new cold war or a more harmonious multipolar world, provided “exceptionalist’ America agrees to a strategic realignment.
Economic Digest
[1]. More pain for emerging markets
The reasons why the pressure is again on the emerging markets:
a) US monetary tightening
b) Strong dollar
c) Slowing Chinese industrial demand
e) Collapsing commodity prices; Oil keeps on falling due to supposed breakdown of OPEC
Given the tight relationship between global commodity prices and the dollar, the outlook for further appreciation of the dollar—as the US Federal Reserve slowly but steadily continues to nudge up interest rates next year—is another reason to remain cautious about commodity prices.
The Scene in India:
a) As a net commodity importer, particularly of oil, India’s ‘policy space’ is expanded by commodity deflation in contrast to most emerging markets.
b) Oil’s continued swoon gives Reserve Bank of India more chance of hitting its demand 5% inflation target set for early 2017 despite this year’s deficient monsoon and the inflationary risks prompted by the Seventh Pay Commission.
c) The apex bank may yet be able to squeeze through another 25 bp rate cut to support growth. Fiscal space is also augmented by lower oil prices , allowing finance minister Jaitley to remain on course to hit his 3.9% deficit target even as the Centre’s capital spending shows a welcome acceleration.
Conclusion:
Overall, 8% GDP growth for FY2017 looks achievable, leaving India as the fastest growing of all the emerging markets.
[2]. New Year resolutions
“Reforms by themselves do not result in growth. They only create the necessary environment”
In recent times any slowdown in economy and falling ratings have been attributed to lack of reforms. The author asks :
{1} what are the kinds of reforms that are needed?
{2}Second, what are the priorities and what should be the sequence?
{3} And third, are reforms the only prerequisite for growth?
The author states that the factors responsible for economic growth are: Competition and Efficiency. Competition is a precursor to production and efficiency.
According to author what is needed is:
a) Auction of natural resources, what author suggest is regulators in sectors should be avoided as long as if there is a security and stability angle or in the sector where competition is weak.
b) The GST and other fiscal reform are essential and it is a high time that they are taken up
c) Reforms in administrative structure which is plaguing sectors like Public Sector Distribution.
d) 7th pay commission that has provided a huge pay off needs to accompanied with accountability and transparency measures.
The author also speaks about timing of reforms are essential, for eg. the labour laws reforms need to be implemented when the economy is booming so that labours can take advantage of the boom and will be more adaptable to change and hence having more employment opportunities.
According to author reform should be a continuing agenda which has to innovate itself according to the times. The reform as well as growth are not the end but a path to achieve equity and efficiency.
[3]. The big impact of China Slowdown
Context: The economic slowdown in China .
Countries that are feeling the pinch:
The producer of raw material like oil, copper etc. for the manufacturing industry of China e.g Kazakhstan and Chile .
Also the intermediate good producer for e.g. Japan for toys and electronics sector of China can see the shrink in its net exports.
The beneficiaries:
A) Countries like Vietnam – being low cost producers have come up as an strong alternative to China’s smartphone and electronics market as the demand for same has not dipped. Low cost coupled with increase in production and exports driving Vietnam up
B) Countries like India and Indonesia but constrained by infrastructure and policy reforms
C) China though facing a slow down household consumption is rising which has been taken advantage by Germany through its auto industry and US through it high tech innovations
D) Fourth set is of those countries who are populous and has available low cost labour can diversify their manufacturing where China is seen retreating.
What is needed to be done?
The space the China is retreating is not going to come automatically to other countries. Countries vying for the piece of pie needs to bring in policy reform and invest in infrastructure : power, energy, transport and urban infrastructure to make investment climate attractive and competitive
Opinions & Editorials
[1]. Labour’s love lost
Context: Labour reforms and the Trade Unions in the countryThe author is cynical about the labour reforms as he feels such reforms can lead to the exploitation of labour.
What capitalists needs?
Corporates requires two things: one, trade unions must be neutralised; two, contractualisation (temping/casual labour) must become the legal norm for regular work.
Indian scenario:-
Both the above requirements of corporates are effectively a reality in today’s India. But our legislative framework militates against it, leaving the capitalist class vulnerable to being challenged by the working classes on legal grounds.
The right to collective bargaining is enshrined in our Constitution. Article 19(1)(c) grants all citizens the right to form a union. On top of it, we also have a Contract Labour (Regulation and Abolition) Act, 1970 that prohibits employment of contract workers for core industrial work.
As global capitalism yet to recover from the shock delivered in 2008, the only way out of the crisis is to tighten the screws on labour to extract more value.
Maruti workers issue:-
The author feels that the Maruti workers issue was an example of how the corporate effectively silenced the workers union and nipped the relation between the temporary and permanent workers.
It has now introduced the system of “company temps” ( the temporary worker will work for six months. Then he is laid off for five months, after which he may be recalled for another six months).
This is considered as a move designed to prevent unity between permanent and temporary workers by regularly churning the latter.
[2]. This year, don’t speed dial the army
Context: Disaster Management in India recently Chennai floods. A regular occurrence army providing rescue and logistics in all the cases.
Reality:
The army was generally to follow “last in, first out” policy but the same has turned on it head and has become “first in, last out”.
What is the role of Army according to Disaster Management Act 2005?
It does not indicate any primacy for the role of the armed forces, it does not even formalise their role; merely stating that the management of disasters could include the “deployment of naval, military and air forces, other armed forces of the Union or any other civilian personnel as may be required for the purposes of this Act”.
Involvement in every rescue operation big or small or to be involved in all the stages has a negative impact on army as they pay a heavy price by way of training time, deployment and equipment losses.
What is the other options?
2005 Act established the NDMA or National Disaster Management Authority (planning and coordinating body), and the NDRF or National Disaster Response Force (has manpower, training and equipment to handle rescue operations).
NDRF – is composed of personnel from Border Security Force, Central Industrial Security Force and Central Reserve Police Force on a 5 year deputation basis.
At present the strength of NDRF is around 13,000 personnel
They why is a need for army to step in at every small disaster rescues?
A) For India’s size and population, these numbers are too few, but the NDRF is expanding slowly.
B) There is no mechanism to hold NDMA and NDRF accountable even though 350 crores are being spent annually to upgrade them and maintain the units.
C) The bigger reason why NDRF is not as effective as it could be is because of, as always in India, bureaucratic failure. The mandarins in Delhi have not empowered NDMA, made it functionally independent or accountable.
States need to step up – Is it a viable option to make NDMA and NDRF more effective?
One national level unit is just not enough, States need to maintain units at state and district level to have quick response time in case of a calamity.
There has been an indifferent attitude by bureaucracy with around 90% of allocated money for disaster management remains unused.
Also, the state police and home guards department are not very eager to undergo training in relef and resuce operations, most of them have to be urged to attend the training.
There has been question on intelligenece of bureaucracy to handle resources optimally, this was evident when Chennai airport was closed but 100s CISF personnel employed there were not diverted to rescue operations.
Rule of Engagement: When should be the army called ?
A) First, the Home Ministry must be asked to define just what its arms can deliver. For instance, trained personnel from the police, fire services, civil defence, and home guards must be available on call along with equipment.
B) Second, threshold levels must be set for when the armed forces will be called in and pulled out. And last, we must define what a national calamity is, and reserve the armed forces only for those occasions.
Author states by defining rule of engagement of the army the NDMA and NDRF could be hold accountable and will be utilised in what they were designed for.
[3]. Road to Mandalay
Context: India’s look east policy and the road transport agreement between India, Thailand and Myanmar.
What is needed to be known,
The transport route has benefits for India both economically and strategically especially countering China which has improved highways and open up hinterlands in east connecting them with their won highway system.
Initiatives:
India always has the opportunity to forge stronger links on the strength of proximity and specific needs, such as medical tourism.
Imphal – Mandalay (proposed in 2012) bus route can serve as the seed of an open-handed, open-hearted outreach programme which can clear the air and improve the basis on which the two major powers of the region relate to each other.
By: ForumIAS Editorial Team
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