9 PM Daily Brief -14 June 2016

14th-june

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

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GS PAPER 2


[1]No threat to strategic autonomy, yet +  Raja Mandala: After the US entente

The Hindu                                                                                   Indian Express

Issue

  • India-US relations

The joint declaration signed between 2 countries

Climate change

  • India conceded heavily, agreeing
  • To negotiate the reduction of hydrofluorocarbons (HFCs)  under the Montreal Protocol  and
  • Airplane emissions under the International Civil Aviation Organisation Assembly (ICAO)

Defence cooperation

  • In the first look at the joint statement, it may seems that India has tilted towards US.
  • However, India’s designation by the U.S. as a ‘major defence partner’ is not by itself likely to translate into any meaningful engagement because exports of sensitive technologies will continue to be dictated by U.S. law.
  • By no means does the joint statement limit the scope of India’s defence engagements with Russia.

Cyber issues

  • India committed to norms that the U.S. sees important for its digital sector.
  • India has extracted a number of significant commitments, including U.S. support to tackle cybercrime that “emanates from its territory”.
  • The U.S. has agreed to “strengthen” critical information infrastructure in India, which can be interpreted as a promise to host a “root server” within the country.
  • Trade
  • The U.S. continues to push India on “relaxing” its intellectual property rights regime, but there is no indication in the joint statement of any major concession on New Delhi’s part.

Analysis of the joint statement

  • The joint statement set out to advance substantive engagement with the U.S but it does not mean that  it constrain India’s ability to conduct its diplomacy with other major powers like China and Russia.
  • The joint statement should not be understood as tilt of India towards US, Indian negotiators have done well to secure India’s interests.
  • The statement does not  limit India’s engagement with the G77, China, or other emerging economies.
  • In fact, New Delhi should work with like-minded countries to balance U.S. preferences in new regimes.

Conclusion

  • India should assess the consequences and deal it makes with the key countries.
  • It must now broaden its diplomatic activism to reduce the potential costs and maximise benefits.
  • The government, however, appears aware of the need to reassure its other partners in the international arena, especially Russia and China, who have some concerns about India’s relations with the United States.
  • A similar effort will also be needed with our neighbours (especially Pakistan).
  • So that they does not take any step which is not in India’s interests.
  • India government should move decisively to take full advantage of the arrangement with America.
  • And at the same time, anticipate and manage some of the inevitable consequences of the new strategic warmth towards Washington.

[2] India, Ghana sign three agreements

The Hindu

Context

During the first ever visit by President Pranab Mukherjee, India and Ghana have signed three bilateral agreements covering varied areas.

The three agreements signed

  1. Exemption of visa requirement for holders of diplomatic and official passports.
  2. Establishment of a joint commission to review bilateral ties and investments.
  3. Academic interaction between the Foreign Service Institute of the Ministry of External Affairs in India and Ministry of Foreign Regional Integration of Ghana.

On civil nuclear cooperation

Ghana has also asked India for civil nuclear cooperation as it aims at reducing the use of traditional energy sources and shift to cleaner , environmentally sustainable options.

Some other facts

  • Presently, India is the largest foreign investor in Ghana with major investments in Ghana’s manufacturing sector.
  • Education, low cost housing, advanced healthcare, agriculture and IT have been identified as other potential sectors for cooperation.
  • The bilateral trade between India and Ghana stands at $1.2 billion.

[3]Dual diplomacy for Mission NSG

The Hindu

Issue

About NSG

  • The NSG (initially known as the London Club) came into being in 1974, in response to India’s peaceful nuclear explosion.
  • Its original members were the U.S., U.S.S.R., U.K., France, West Germany, Canada and Japan.
  • Today, the NSG has grown to 48 countries and in order to get away from the notion of a ‘club’, members are called ‘Participating Governments’ (PGs).

Factors to be considered while admitting a new member into NSG

Since the NSG is an informal grouping consisting of PGs (and not member states), it has set out five factors for considering applications of prospective PGs. These are

  1. The ability to supply items on NSG control lists
  2. Acting in accordance with NSG guidelines
  3. A legally based export control system  
  4. Support international non-proliferation efforts
  5. Membership of treaties like the NPT that require full-scope safeguards.

India’s case for NSG

  • India fulfils the above mentioned criterions but does not meet the last one.
  • However, it should be noted that these are not mandatory criteria but only factors for consideration.
  • India has  maintained an impeccable non-proliferation record coupled with a strong commitment to controlling exports of nuclear materials, equipments and technologies.
  • The exceptional waiver provided by the NSG in 2008 was an acknowledgement of India’s non-proliferation record.
  • India has declared its intention to join NSG, MTCR (Missile Technology Control Regime), Australia Group (set up to control exports of chemical and biological agents), and Wassenaar Arrangement (covering exports of munitions and dual-use goods and technologies).

Two-track diplomacy

  • India needs to pursue two diplomatic tracks simultaneously.
  • One track should focus on those countries that reportedly raised concerns about the impact of an India exception on the regime.
  • Ireland, Switzerland and Mexico have been brought around; South Africa, New Zealand, Austria and Turkey still need to be persuaded.

The second track should focus on China.

  • China has vocally opposed India’s membership.
  • It maintains that an exception for India would weaken the non-proliferation rules; since there is Pakistan’s application too, a criterion-based approach should be developed; and finally, nothing should be done in hurry that would upset the South Asian balance.
  • The real objective of China is to delay India’s joining by employing dilatory tactics.
  • As it knows very well that Pakistan is not ready to join the NSG.

Road ahead

  • Meanwhile, it is expected that India will get the access to MCTR comparatively easily, as there are no such blocks which acts as hindrance.
  • And China is not a member of MCTR, as its  application has been on hold since 2004 on account of its missile proliferation activities with North Korea.
  • As, both China and India are aware of this, so both should try to get favourable outcomes from each other, keeping the above factors in mind.

 

[4]More Delhi hospitals likely to be fined + Public land and private treatment

The Hindu                                                                                         The Hindu

Context

  • Five private hospitals in Delhi were fined Rs 600 crores as they failed to treat the poor patients.
  • Similar fine will be slapped on other private hospitals who have failed to provide the treatment to poor patients.

Is it obligatory for private hospital to treat the poor patients?

  • Yes. Since the private hospitals receive land at concessional rates that too at as low a lease as Re 1/month for 30 years in some cases, from the government, they are obligated to reserve some percentage of their medical services and facilities for poor patients.
  • Delhi High court mandated that 10% of inpatient facilities and 25% of outpatient facilities must be provided free of cost to poor.
  • Since the private hospitals have failed to carry this obligation, they must now face a fine.
  • The amount of fine will depend on the extent to which the hospitals have been complying with the norms.

Why should there be such obligations on private hospitals?

  • Since they are receiving large chunks of land at concessional rates to set up hospitals, they must oblige by following some social obligation.
  • Another reason is that in India,  private sector accounts for the larger chunk of health care sector and 86% of the health expenditure comes from people’s own pocket. Since affordance is a big problem here private hospitals must provide some services to those who can not afford their costly treatment.

Conclusion

This is not only a case of penalising a small wrongdoing.It is a case about making health care more accessible to poor. Govt must make sure that in whichever state these legal obligations on private hospitals exist, they must be regularly monitored and properly enforced.

[5] Why women want prohibition

Indian Express

Issue

  • Prohibition of liquor v/s Regulation of liquor

Arguments in favour of liquor regulation

Counselling:- The problem of addiction should be tackled at the individual level through de-addiction and counseling.

Self-care:-Women and families should  “handle” their drunken men and resolve their personal health issues rather than demand any kind of accountability regarding the over-supply of alcohol in their communities.

Unsafe drinking :- Banning good legal liquor will drive people towards the obnoxious illegal hooch.

Source of revenue:-Tax on liquor sales is an important source of revenue for the states.

Regulation is better:- States should regulate alcohol rather than impose blanket bans. Prohibition is a gimmick tool used by the politicians to gather support  from the women vote bank

Arguments in favour of liquor prohibition

  • Alcohol is not a moral issue, rather it is a political issue.
  • There is a strong nexus between politicians and breweries owners. Their mutual interest lies in that the alcohol should not be banned altogether.
  • Politicians whose political and/or business interests are served through increase in liquor sales would rather use their power to increase such sales rather than think about regulation.
  • By power, it means both money power and muscle power, thus enters the third element in this nexus, the criminals.
  • Licensed liquor is also sold illegally as much as hooch and it kills just as many people.

Conclusion

  • Liquor is not a moral issue but a political one and therefore, more power to the women by way of vote bank should be welcomed so that this menace can be controlled.
  • If the politician-business-criminal triad can come together to protect their vested interests, why should the women not form a vote bank to break this nexus?

GS PAPER 3


[1] India must ensure energy efficiency in irrigation: Experts

The Hindu

Context

  • Out  of total usage, agriculture’s share of electricity consumption at 18 per cent.
  • Due to the increasing demand for water to meet the agricultural needs, about 0.25 to 0.5 million new pump sets are being added annually.
  • So,  country must move toward energy efficiency in irrigation to ensure food security and meet demand for water.

European Union seeks partnership with India to offer  concrete solutions for energy efficiency in irrigation

According to EU,  partnership between India and the EU would

  • Facilitate policy dialogue
  • Bring in best practices
  • Business solutions and joint research and innovation,
  • Would help with finding financing models for clean energy and climate change.

Additional points:-

  • There is a need to make international technology easily accessible and mindset change towards transition to energy efficient technology.
  • By adoption of high-efficiency pumps about 25-30 per cent energy can be saved.

[2] How to fix India’s broken banks? Take a leaf from China

Livemint

Context

  • Indian banks have been facing huge losses due to rising NPAs. The losses are to such an extent that even recapitalization is not helping the situation.
  • Compounded by the problem that the banks also do not have access to equity market, there is a need to immediately do something to improve the condition.

How bad is the condition?

11 state run banks have combinedly reported a loss of $3 billion and the bad loan situation is still not over, it is growing day by day despite all efforts towards recapitalization and attempt to learn from past mistakes.

What could be the possible solution

  • One of the solutions to come out of this cycle of growing bad loans is that the banks should themselves not lend but redirect the borrowers to finance companies (shadow banks) which are growing in leaps and bounds. This was the strategy which China followed.

Now the question is that if banks would not do lending, what would they do?

The answer to this again is the chinese strategy. The banks should start investing the money of depositors into wealth management products which these shadow banks create.

How is this sustainable in the longer run?

Circular financing makes it sustainable in the longer run :

  1. Let the shadow bank buy government bonds for the same amount that the banks agree to invest in their wealth management products.
  2. The govt can then use the bond proceeds to buy bank’s equity.
  3. After a decade or so of doing this India (like China) will also have soaring GDP to credit ratios and negligible NPAs.

Conclusion

India has already tried all other means to solve the problems of rising bank losses and has not seen any fruitful results. There is no harm in taking a shot at the Chinese strategy to rescue our financial system.

 

 


Comments

2 responses to “9 PM Daily Brief -14 June 2016”

  1. Lady Batman Avatar
    Lady Batman

    Thanks alot ForumIAS!

  2. kingka2 Avatar
    kingka2

    Thank you FORUMIAS

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