9 PM Daily Brief – 2 February 2016

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

What is 9 PM brief?

• GS PAPER 2
  1. Supreme Court recalls notice to Governor – {Governor Actions and Judiciary}
  2. Towards a law on euthanasia – {Laws and Bills}
  3. A test of dignity and democracy / The court’s second chance– {Human Rights – LGBT}
  4. A scheme for change– {Welfare Scheme – MNREGA}
  5. Seizing the ‘One Belt One Road’ opportunity – {International Affairs}
• GS PAPER 3
  1. Trans pacific pact may impact exports– {Regional Trade Pacts}
  2. WHO declares Zika a global emergency– {Science & Technology}
  3. Panel suggests more freedom for India Inc. – {Doing Business in India}

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GS PAPER 2

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[1]. Supreme Court recalls notice to Governor

The Hindu

Context: The constitutional crisis in Arunachal Pradesh leading to imposition of President’s Rule in the state.

What has happened ? 

Supreme court shot of letter to Governor of Arunachal Pradesh asking him to explain why he recommended President’s rule in the state.

Mistake by Supreme Court: Any act done or decision taken by Governor in his “official capacity” enjoys immunity from court of law. It cannot be questioned and he is not answerable in any court of law for actions taken in official capacity. Provision in Constitution of India under Art. 361 (1) – protection of President and Governor from legal action.

[2]. Towards a law on euthanasia

The Hindu

Context: Union government informing the bench of Supreme Court govt. experts are examining draft bill on euthanasia proposed by 241st Law Commission.

The Cases:

1. Aruna Shanbaug Case: 2011 verdict of Supreme Court laid down a broad framework for passive euthanasia. Active euthanasia was still illegal as injecting the patient with lethal substance was not accepted.
2. NGO Common Clause: Right to live with dignity under Article 21 includes the right to die with dignity, and whether it is time to allow ‘living wills’, or written authorisations containing instructions given by persons in a healthy state of mind to doctors that they need not be put on life-support systems or ventilators in the event of their going into a persistent vegetative state or state of terminal illness.

Government’s Concern: 

Legislation on euthanasia would amount to doctors violating the Hippocratic Oath and that they should not yield to a patient’s “fleeting desire out of transient depression” to die.

The Draft Bill: 

No support for the idea of “living will” i.e. active euthanasia. There is a fear of its misuse.

Conclusion: 

There is a need to judge that whether giving the right to those likely to drift in terminal illness an advance opportunity to make a informed choice to avoid cruel and unwanted treatment to prolong their life. To resolve this conflict between pain and death, the sooner that a comprehensive law on the subject is enacted, the better it will be for society.

[3]. A test of dignity and democracy / The court’s second chance

The Hindu | The Indian Express

Context: Curative petition against section 377 ( criminalizes gay relations) is up for hearing in Supreme Court today.

Why curative petition?

Koushal vs Naz recriminalised section 377 of IPC by Supreme Court after it was decriminalised by Delhi High Court. The case seeked to question section 377 of IPC which criminalises queers (gays).

Why the curative petition is important?

The answer is the most basic principle of the quality and humanity of a democracy: dignity should not be a test. It should not take acts of courage, of defiance.

To make queer lives ordinary will take a number of different fights. The law is one such fight, and it is a critical one. In our lives, we feel the law not just as prosecution but as a moral register and ethical compass. It tells us how to think about ourselves and tells others how to think about us. It stands behind the gang rape in a police station, the forced conversion therapy in the psychiatrist’s office, in the drawing room of the family which disowns a gay child or forces a queer woman to marry.

Naz Foundation Case Verdict (Delhi High Court): 

The judges in Naz Foundation sought to use the law to build a space around our lives that would embrace, protect, nurture and even love queer people. They never spoke of tolerance. They imagined law at its best, its highest form, as a space that would not just protect difference but value it.

They urged us to breathe life into the spirit of our Constitution. They argued that the Supreme Court must, of all institutions, stand first and foremost to defend this spirit, to infuse the frozen letters of law with meaning and hope, to lead in a society scarred by layers of inequality and injustice.

[4]. A scheme for change

The Indian Express 

Context: 10th anniversary of Mahatama Gandhi Rural Employment Guarantee Act (MNREGA).

MNREGA: Path-breaking legislation in its scale, architecture and thrust. The demand driven legal framework gave it an open ended budget allocation.

Evaluation of MNREGA:

1. Has the MNREGA worked? 
   1. Whether the act has enhanced livelihood security?
      • The MGNREGA provides 40-45 days of employment to a fourth of rural households.
      • Seasonality trends indicate that the employment is supplementary and sustains households during periods when non-MGNREGA work opportunities are few. These figures validate its role in enhancing rural incomes.
   2. Whether it has served as a tool for rural empowerment? 
      • First uneven implementation of the act across the states makes the opinions divided on this.
      • But, there is a reversal after six years in rural wages stagnation.
      • Has brought better gender parity (50% women beneficiaries) owing to its condition of work within 5 kilometres from home.
      • reduced distress migration from villages
      • with its integration has brought focus on natural resource base like water -conservation works.
      • surveys suggest increased incomes among adivasis and dalits by 28 to 38 percent.
      • on the aspect of financial inclusion – between 2008 to 2014 10 crore no frills account opened up in rural areas.
2. Where does MNREGA stand today? 
   • According to author today’s’ government has no faith in the act and hence lack of will which has led to the capped budget.
   • At the same time with rising MNREGA wage, the demand is falling
   • Many states are showing negative fund balance hence not able to open up new avenues of work and hence delays in payments.
   • There was also an attempt to change wage material ratio from 60:40 to 51:49.
3. Arguments against MNREGA: 
   1. Full of leakages
   2. Full of doles which has not resulted in any capital assets.
      • This has been rectified by adding permissible work in 2013 – rural infrastructure, toilets and creating assets for marginalized community.
   3. Corruption
      • Corruption is being tacked through IT and community based accountability mechanism like social audit. Digitisation of all information and putting it in public domain.

Conclusion 

The shortcomings in the implementation of MNREGA should not be used to make case for worthiness of the act. There is a need to realise that MNREGA has been an instrument of empowerment for Gram Panchayats (GPs) with putting immense funds directly with the GPs.

MNREGA needs to be modified with intensified focus on most backwards blocks and on skill development for household that has completed 100 days of work.

[5]. Seizing the ‘One Belt One Road’ opportunity

The Hindu 

Context:-
China’s One Belt, One Road initiative, and its prospects for India.

What is One Belt, One Road initiative?
At the heart of One Belt, One Road lies the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe, as well as a maritime road that links China’s port facilities with the African coast, pushing up through the Suez Canal into the Mediterranean.

The project aims to redirect the country’s domestic overcapacity and capital for regional infrastructure development to improve trade and relations with ASEAN, Central Asian and European countries.

India’s Counter Initiatives:
Project Mausam: Project ‘Mausam’ is a Ministry of Culture project with Archaeological Society of India (ASI), New Delhi as the nodal agency. The endeavor of Project ‘Mausam’ is to position itself at two levels: at the macro level it aims to re-connect and re-establish communications between countries of the Indian Ocean world, which would lead to an enhanced understanding of cultural values and concerns; while at the micro level the focus is on understanding national cultures in their regional maritime milieu.

India’s stand on One Belt, One Road initiative of China:-
India is a growing economy. It needs multiple trade routes to deliver its goods. Currently, its land route to central Asian republics and Russia, which goes through Pakistan and Afghanistan, is blocked for political reasons — Islamabad is unwilling to allow India’s access to central Asia through its territories unless Delhi, inter alia, settles the Kashmir dispute. Since China continues to remain Pakistan’s all-weather friend and patron, India’s unremitting economic engagement with China could help softening Pakistan’s attitude towards India.

Moreover, the India-Pakistan-Afghanistan belt, economically speaking, remains one of south Asia’s least integrated regions. Since economic integration and trade are known ingredients for promoting peace, not only would economic engagement between India and China help allay some of India’s security concerns over the rising China; such an engagement could also have a positive fallout on India-Pakistan relations.
It is both a threat and opportunity for India. Chinese Political expansions and Economic ambitions are the two sides of the same coin. So, India should grab this opportunity with caution, so as to benefit it for India’s growth and development.

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GS PAPER 3

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[1]. Trans pacific pact may impact exports

The Hindu

Context: Formation of mega regional trade groupings/pacts and their speculated consequences on India. Article mostly deals with consequences of Trans Pacific Partnership.

Trans Pacific Partnership: TPP is a regional trade agreement between US and 11 Asia – Pacific countries.

Challenges and Probable Impacts on India:

1. There is a possibility of indirect consequences in the different trading sectors as well as having an impact on country’s regime on investment, labour standard, intellectual property rights (IPR).
2. TPP might set a very high standard regime for trade which might make India experience similar to those just Post 1991 economic liberalisation.
3. Certain standard in TPP are set higher than WTO like IPR which has a chance to hit India’s pharma company.
4. Trade in cotton yarn might also get affected as countries will prefer to trade with TPP members more.

Other Mega Trade Groupings:

1. Transatlantic Trade Investment Partnership (proposed between European Union and United States)
2. Regional Comprehensive Economic Partnership (ASEAN + Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam)

Options for India: India needs to focus on it’s trade relations with Africa and Southeast Asian countries to counter the negative consequence of these mega regional trade groupings.

[2]. WHO declares Zika a global emergency

The Hindu 

The News: With sudden rise in the number of cases associated with ZIKA virus World Health Organisation (WHO) has declare it a global emergency. There is expected to be 4 million cases of ZIKA virus infection already.

There is a suspicious link between ZIKA virus arrival in Brazil last year and surge in the number of babies born with abnormally small heads., but there is still no definitve proof for i.

[3]. Panel suggests more freedom for India Inc.

The Business Standard 

Context: Tapan Ray (Corporate Affairs Secretary) panel suggestions which was constituted to look into the amendments to Companies Act, 2013.

Recommendations & Suggestions: 

1. No governmental intervention in managerial remuneration. Also a nod from 75% of stakeholders is required for the same. Panel has recommended to bring it down to ordinary resolution with approval of 50% stakeholders.
2. Relaxing norms for start up to issue sweat equity upto 50% of paid up capital from existing 25% norms.
3. Relaxing employee stock ownership plan (ESOP) norms for startup.
   1. This will enable issuance of ESOPs to promoters who are working as employees or employee directors or whole-time directors. This would help the promoters gain from increase in future valuation of the company without in impacting finances of the company during its initial years.
4. Removal of provision, which prohibited the companies to not have more than two levels of subsidiaries.
5. Section 447 – lays down punishment for fraud of minimum six months imprisonment has the possibility of being misused also being a hinder in attracting nice people to post of directors. This should be changed to atleast 10 lakhs or 10% of company turnover whichever is less.
6. To bring the Companies Act in harmony with the Sebi regulations, the panel said that independent director should not have any kind of pecuniary relationship with the company.
7.  Forward dealing and insider trading by directors and key managerial professionals (KMPs) of any company – have also been recommended to be removed. These issues are already covered under Sebi regulations.
8. Panel has recommended formation of National Financial Reporting Authority (NFRA)

Glossary: 

a) Sweat Equity: is the ownership interest, or increase in value, that is created as a direct result of hard work by the owner(s). It is the preferred mode of building equity for cash-strapped entrepreneurs in their start-up ventures, since they may be unable to contribute much financial capital to their enterprise.

b)  Employee stock ownership plan (ESOP): An employee stock ownership plan (ESOP) is an employee-owner program that provides a company’s workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees. ESOP shares, however, are part of employees’ remuneration for work performed.

c) Forward Dealing: A transaction consisting of a purchase or sale (often of foreign currency) with settlement to occur at a specified future date. Such a transaction will state the specific amount of the asset to be delivered at the specific time, as well as the unit price at which it will be delivered.

d) Insider Trading: is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, trading based on insider information is illegal.

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By: ForumIAS Editorial Team

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