Brief of newspaper articles for the day bearing
relevance to Civil Services preparation
- GS PAPER 2
- Companies Bill affects independence of Directors {Bills and Laws}
- Delhi seems ready to compete with Beijing where it must and cooperate where it can{Foreign Policy}
- GS PAPER 3
- All about the Obama Doctrine {International Affairs}
- Oceanic Opportunities{Maritime security}
GS PAPER 2
[1] Companies Bill affects independence of Directors
Context
An amendment bill proposed in the existing Companies Act 2013
What Companies(amendment) Bill, 2016 proposes
It allows for the independent directors to have transaction with companies in which they are independent directors upto 10% of their income
Who is an independent director
An Independent director (also sometimes known as an outside director) is a director (member) of a board of directors who does not have a material or pecuniary(money related) relationship with company or related persons, except sitting fees. Independent Directors do not own shares in the company.
How it may be misused
- Self dealing merchants will now have legitimacy
- Limit of 10% could be altered or changed in terms of money as when required by the independent director as prescribed altered limit
- Interests of different parties could influence the executives of the company to alter the limit
Why it should not be passed
- Poor corporate governance exist in our companies today, this would add to more corruption
- It would further weaken the corporate boards
What else
- A relative of an independent director will be indebted to the company within a limit as prescribed by the central government
- In Companies Act 2013, only close relatives came under definition of relatives and also the relative should not have been a senior employee in the company for last three years
- In Companies Act 1956, the independence of independent director, if relative of independent was indebted to company, was looked at with suspicion
Conclusion
- the proposed change in law should be referred to the Parliamentary Standing Committee before it is considered by the Parliament.
- An informed discussion and debate regarding the proposed change in law relating to independent directors in India is a national priority.
[2] Delhi seems ready to compete with Beijing where it must and cooperate where it can
Context
PM Modi has a pragmatic solution in engagement with China
What UPA did
- It could not hide the real differences and only dealt with China with a fake face of friendship
- It put pressure on global issues when it talked with China
- And was not keep to expand its economic cooperation with China
What NDA intends to do
- It acknowledges the differences and seeks to accept Beijing as an economic partner
- Delhi knows that China has risen in last few decades and China is under no compulsion to make any concessions in border territory conflict and that India will need to work towards if it wants a settlement on the boundary
- As India makes more infrastructure along the border, it is expected that the conflicts will rise, so it has to be prepared for that too
Belt and Road initiative
- This sobering recognition has shaped India’s response to China’s grand “Belt and Road” initiative, which is moving massive amounts of Chinese capital into the subcontinent and improving overland and maritime connectivity with South Asia.
- If more Chinese investments occur then there is very less objection to deepening economic relation
- Also within the initiative the BCIM corridor seeks to connect southwestern China with Myanmar, Bangladesh and eastern India.
For India
- India should bring about a change in its perspective and make infrastructure projects and beyond its borders without thinking politics
- India has to compete with China if it wants some influence in the South Asian region
Security
- In defence ties it has only competed with China, when China has been making ties with the India’s neighbours
- India should offer military partnership to its neighbours and PM Modi has lent greater energy and intensity to some of the regional security initiatives
- Modi is betting that creating strategic leverage is more effective than meekly deferring to presumed Chinese opposition to India’s relations with third countries.
Conclusion
- Although diplomacy is hard when it comes to China but Modi woos China’s investment with unprecedented vigour
- Modi has calculated that as its economy slows down, China needs reliable foreign destinations for its capital. The prime minister hopes that by raising Chinese economic stakes in India, he might improve Delhi’s overall terms of engagement with Beijing.
GS PAPER 3
[1] All about the Obama Doctrine
Context
India should see according to its own needs how its international strategy is laid out and not through the prism of US
What has happened in since Bill Clinton
- India-US partnership has increased from the presidency of Bill Clinton to George Bush and to Barack Obama
- Relations were not under any hidden pretext which George Bush confirmed, hidden pretext being as a counterweight to China
- Barack Obama is a little different having accommodative attitude towards China
What is Obama Doctrine
An unofficial name given by the readers of a his foreign policy which is recorded as an essay of the interviews given by Obama to Jeffrey Goldberg of The Atlantic Magazine
What it talks about briefly
- He has least regard of the so called foreign policy experts of Washington
- Even lesser regard that military force is the answer to all questions as people in Washington believe
- He has less interest in west asian affairs and in the politics of oil
- He is interested in “Pivot to Asia” and the consequence of rise of China and India
- No geopolitical competition with Russia and China
- Egypt collapse is of little importance to US
- Protect the lives of US citizens
- US security deficit in military should be fulfilled otherwise US credibility might be undermined
Relations with old Allies
Saudi Arabia
Criticized the Sheikhs of Saudi Arabia as free riders, although Saudi Arabia has been a closest ally
Iran
Helped out Iran in nuclear deal as far as west asia is concerned
Russia
Sees Putin in contempt after the events of Ukraine and the West’s debacle in Crimea
France and UK
Blames Sarkozy and Cameron for Libyan complicated and embarrassing situation
For India
- India should not stand aside with US in every issue and look through its own lenses
- India should keep away from conflict of South China sea and not provoke China
- Should not ask for US help if it has a conflict along its borders or anywhere else with China
- Concerns were raised about US willing to give F16 and helicopters to Pakistan for battles in Afghanistan
- India must be careful that its approach to China is not conducted through the prism of U.S. strategic interests. We need an independent policy in keeping with our national interests in the region and beyond.
[2] Oceanic Opportunities
Context
India should effectively control its maritime backyard piracy and utilise the economic routes
What has India done to improve economic routes
- Sagarmala Program-Sagar Mala project is a strategic and customer-oriented initiative of the Government of India to modernize India’s Ports so that port-led development can be augmented and coastlines can be developed to contribute in India’s growth
- In collaboration with Bangladesh and Myanmar, India is building waterways and ports
What about maritime strategy?
- Indian navy has played a major role in securing the Indian Ocean piracy, conducted joint exercises and increased multilateral exchanges
- Navy’s quick reponse in 2004 tsunami showed its preparedness
- Humanitarian assistance to people stuck in war torn countries and helping them escape the war has been Navy’s positives
- To keep a check in Indian Ocean, trade routes for economic growth have to be secured and free of piracy
1. The lead article of the day is covered under Editorial Today. Click here to read.
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