9 PM Daily Brief – 28th November 2015

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


National


[1]. Human development holds the key

What is Naxalism?
The term Naxal is derived from the name of the village Naxalbari in West Bengal
• The Naxals support Maoist political sentiment and ideology.
• The Naxalism movement originated with the split of the Communist Party of India (Marxist), which resulted into the formation of the

Causes of Naxalism
• Mismanagement of Forests,
• The Growing inter and intra regional disparities,
• Absence of proper Industrialisation
• Lack of land Reforms
• Lack of proper tribal policies

What is tiger reserve?
A tiger reserve is a specific area within the borders of which a particular species or animal is protected by the law. In a tiger reserve a tiger is protected under the law. Killing or hunting a tiger in such a reserve is an offence and illegal.

1970– A ban on tiger hunting was imposed in India
1972– Wildlife Protection Act came into force

Project Tiger
Project Tiger is a tiger conservation programme launched in 1973 by the Government of India during Prime Minister Indira Gandhi’s tenure.
In India, tiger reserves have been constituted under Project Tiger via a core-buffer strategy meaning separate areas have been marked as core and buffer.
Core areas: The core areas are freed of all human activities. It has the legal status of a national park or wildlife sanctuary
Buffer areas: The buffer areas are subjected to ‘conservation-oriented land use. It comprises forest and non-forest land.

At present, India has around 27 Project Tiger reserves. The government has set up a Tiger Protection Force to combat poachers and funded relocation of villagers to minimize human-tiger conflicts.

National Tiger Conservation Authority
The National Tiger Conservation Authority was established in December 2005 following a recommendation of the Tiger Task Force, constituted by the Prime Minister of India for reorganised management of Project Tiger and the many Tiger Reserves in India.
The Wildlife Protection Act of 1972 was amended to provide for constituting of the National Tiger Conservation Authority responsible for implementation of the Project Tiger plan to protect endangered tigers. The National Tiger Conservation Authority is set up under the Chairmanship of the Minister for Environment and Forests.

Penalties under Wildlife Protection Act, 1972
An offence involving a species listed in Schedule I or Part II of Schedule II, or an offence committed within a sanctuary or natural park, attracts a
• Mandatory prison term of three years, which may extend to seven years
• Mandatory fine of at least Rs. 10,000.
For a subsequent offence, the prison term remains the same, while the mandatory fine is at least Rs.25, 000

An offence committed inside the core area of a Tiger Reserve,
• Mandatory prison term of three years, extendable to seven years
• A fine of Rs. 50,000 extendable to Rs. 2 lakhs
In case of a subsequent conviction of this nature,
• An imprisonment term of at least seven years
• a fine of Rs. 5 lakhs which may extend to Rs. 50 lakhs

Current status of tigers in India
India holds over half the world’s tiger population. According to the latest tiger census report released on March 28, 2011 by the National Tiger Conservation Authority, the current tiger population estimated is 1,706 (i.e. ranging between a minimum of 1,571 to a maximum of 1,875). The results include figures from 17 Indian states with a tiger population.

How tiger population is ascertained?
In India, Tiger census is carried out every 4 years started in 2006.
Pugmark Technique: pugmark technique has been one of the most popular ways of counting tigers. Each tiger is known to leave a distinct pugmark on the ground and these are different from the others in the big cat family. Photographs or plaster casts of these pugmarks are then analysed to assess the tiger numbers. This technique is not accurate enough.
Using cameras: Cameras are left in dense forests for several days to capture images of individual tigers. These cameras are heat and motion sensitive. They lie idle till they detect any motion or a sudden change in temperature.
This means, they capture just about anything that moves — other animals, even birds. All these get captured by the camera. The images of the tigers captured have to be de-duplicated to find the number of individual tigers. Each tiger is known to have a very unique stripe pattern.
This is used to differentiate one tiger from the other. While this differentiation can be done relatively easily with the naked eye in case of two or three tigers, comparing a large number of images becomes difficult. The researchers have developed software that matches the stripes on any one image with those on all the other images and throws the best five matches.
These are then analyzed manually to assess whether the selected images are of different tigers. The exercise does not end here. It’s impossible for the cameras to capture every single tiger present in India.
So, based on the ground surveys and camera trapping methods, an extrapolation is done to estimate the number of tigers in the entire country. The drawbacks of this technique being that it is not possible to install cameras at every place that is likely to have tigers, and even in places where they are installed, there is no certainty that the tiger would walk into a camera’s range.
DNA testing: DNA analysis of cats can also be used to estimate the tiger population.

What is happening?
Of late the Kawal Tiger Reserve (KTR) in Adilabad district has become a safe zone more for the resurgent Maoists than tigers.

Main issue: Without the backing of the locals, Maoists can’t thrive as Adivasis have no belief in the corrupt system and when Maoists show them a hope, they simply tag along and help them

How can this problem be resolved?
Reducing dependence upon forests: Adivasis’ dependence upon forests can be decreased so that they do not have to rely on the forests for their livelihood and it has been seen that people who are on the path of development are less likely to support Maoists.
Maharashtra Model can be followed in this regards wherein the development of villages in the buffer area of the Tadoba Andhari Tiger Reserve in Chandrapur district of Maharashtra decreased the forest communities’ dependence on forest and inclusive development.

Steps that can be taken specifically in KTR,
In KTR buffer areas activity should be concentrated on,
• formation of eco-development committees,
• Capacity building for enhancing livelihoods,
• Provision of LPG kits to decrease dependence of Adivasi families on forest for fuel needs
• Facilitation of value addition and marketing of non timber forest produce

Issue of corruption
The concept of physical development of villages to contain extremism began to be implemented since the year 2000 but most of the schemes could not reach the poor owing to corruption. Though the economic activity in other villages saw some change, the tribal villages in the Mangi-Indervelli belt falling in KTR by and large remained deprived of it.

Funds given under Integrated Action Plan (IAP) never reach the proper beneficiaries due to corruption.

What is IAP?
In February 2009, the Indian Central government announced a new nationwide initiative, to be called the “Integrated Action Plan” (IAP) for broad, co-ordinated operations aimed at dealing with the Naxalite problem in all affected states (namely Karnataka, Chhattisgarh, Odisha, Andhra Pradesh, Maharashtra, Jharkhand, Bihar, Uttar Pradesh, and West Bengal).

Importantly, this plan included funding for grass-roots economic development projects in Naxalite-affected areas, as well as increased special police funding for better containment and reduction of Naxalite influence in these areas.

[2]. Sundarbans to become separate district next year

Sundarbans
The Sundarbans is a cluster of low-lying islands in the Bay of Bengal, spread across India and Bangladesh, famous for its unique mangrove forests. This active delta region is among the largest in the world, measuring about 40,000 sq km.
The Sundarbans archipelago comprises 104 islands (of the Indian side of the delta) of which 54 are inhabited. Along with a population of five million, Sundarbans are also home to about 76 tigers and a huge variety of fauna and flora found in the mangrove forests.

What is an archipelago?
Archipelago sometimes called an island group or island chain, is a chain, cluster or collection of islands.

Sundarban forests
The Sundarbans forest is about 10,000 sq km across India and Bangladesh, of which 40% lies in India, and is home to many rare and globally threatened wildlife species. The forest in India is divided into the Sundarbans Tiger Reserve (STR ) and 24 Parganas (South) Forest Division, and together with the forest in Bangladesh is the only mangrove forest in the world where tigers are found.

Sundarban Delta
The delta supports a sizeable population of wild tigers and other wildlife; it is also an ecologically fragile and climatically vulnerable region that is home to over 4.5 million people.

India’s vision wrt Sundarbans
India’s vision for this landscape is to develop a climate resilient Sundarbans that supports biodiversity, ecosystems services and sustainable development.

sundarbans

  Sundarbans (Image source: wwfIndia.org)

What has happened?
It has been announced by the West Bengal government that Sundarbans would be designated as a district from the year 2016.

Why is this being done?
This announcement has been made due to the following reasons,
Sundarbans lack even basic emergency or healthcare infrastructure: In times of flood or any natural calamity, any assistance from the state takes days to reach the people. Also, in absence of proper health infrastructure many quacks have made this area their home.
Fragile ecosystem: Sundarbans is a very fragile ecosystem which has exceeded its carrying capacity of the population as per a report by World Bank in February 2015

Carrying capacity
In ecological terms, the carrying capacity of an ecosystem is the size of the population that can be supported indefinitely upon the available resources and services of that ecosystem.

 


Opinions & Editorials


[1]. Grasp the climate moment

Context: 21st session of the conference of parties (COP) that commences on November 30th, 2015 presents an opportunity for world leaders to come together on the issue of environmental change and carve a framework for sustainable development.

 

Challenges before India

India needs to balance its growth requirements and the consequent environmental impact. India also has to adapt to the severe consequences of changing climate, such as catastrophic droughts and storms, damage to agriculture, loss of biodiversity and harm to human health.

 

Core agenda of Paris meet

The negotiations revolve around a target of further maximum rise in global temperatures of only 2 degrees Celsius over pre-industrial levels.

This goal imposes a ceiling on the amount of carbon dioxide that can be added to the atmosphere by all countries put together, which is about 1,000 billion tonnes. Without radical decarbonisation measures, this carbon budget would be exhausted in less than two decades according to some estimates.

 

Point of conflict between the developed and the developing

From past few years, the developed countries have been demanding that the,

  • Burden to adapt to the climate change should be shared equally by all the nations and that
  • Developing nations should also accept the legally binding emissions cuts.

 
Why is this not fair?

The demands of developed countries are not fair because developed countries have contributed more to the environmental pollution. So, how can they ask other developing nations to share the burden equitably? They should help the developing nations to adapt their economies to cleaner options by providing suitable funds and technologies. It is on this front that developed nations hesitate.

A $100 billion annual fund to be available from 2020 has made no great leap, having received only pledges of aid. A smaller Green Climate Fund has set apart a mere $168 million for eight projects, some of which have run into hurdles.

 

Conclusion

Meeting at Paris is a great opportunity for the nations to work out their differences and craft an agreement that incorporates all the key elements needed to attain the climate target.

 

[2]. The radicalization myth: Islam doesn’t propagates hatred, it teaches equality

Context: In the light of recent Paris attacks followed by the events in Bamako, the capital city if Mali, author herein clearly enunciates that Islam is being falsely associated with ISIS. Islam’s ideology is that of love, peace and brotherhood, not of war and bloodshed.

 

Author is Mahmood A. Madani, general secretary of Jamiat Ulama-i-hind.

He says that,

  • Islam doesn’t justify violence or targeting of innocent lives in the manner in which it was done in Paris.
  • The Prophet was a messenger of peace.
  • Islam teaches equality, it doesn’t propagate hatred.
  • Individuals and organisations engaging in such criminal acts have no place in any religion.
  • He says that this was also the message at the countrywide anti-IS protests organised by members of the Jamiat Ulama-i-Hind in 75 cities after the Paris attack.
  • Attacks should not be projected as clash between religions. For example, Syria is not just Muslims. There are Christians, Jews, Druze and other religious groups who are suffering alongside their Muslim brethren. To reiterate, any violent attack targeting innocents is an assault on humanity and that is how it should be looked at.
  • He points to evidence which states that U.S and even France might be responsible for the creation of IS.
  • Indian Muslims are immune to the radicalization that is being carried out by IS in other countries, in the name of Islam and jihad.
  • PM recently called the Indian tradition of Sufi Islam a message of peace. Not just Sufis, but all Muslim sects have been strong believers in peaceful coexistence.

 

Conclusion

Author concludes by asserting that instead of a de-radicalisation programme targeted specifically at Muslims, government should focus on creating equal job opportunities and address their safety concerns.

 


Economic Digest


[1]. Govt panel to evaluate candidates for RBI Deputy Governor post

 

What has happened?

Government appointed panel will interview candidates next month for the post of Deputy Governor of the Reserve Bank of India as the term of Urjit Patel, the central bank’s incumbent (incumbent means one who holds the office) in charge of monetary policy, expires in January 2016.

 

A central bank Deputy Governor can be appointed for a term with a maximum of five years or till the age of 62, whichever is earlier

The RBI has four deputy governors and typically two are from the outside, of which traditionally one is a commercial banker and the other an economist.

 

Urjit Patel committee

Mr. Patel, headed the important committee to review the structure of the monetary policy that was set up by central bank governor Raghuram Rajan

 

[2]. Structural reforms: now the difficult fiscal part

 

What has happened?

The proposed changes in corporate tax structure has been met by criticism from the industry

Government’s present emphasis on structural reforms confirms the following observation,

‘The strongest reform momentum tends to coincide with periods of economic stress or turbulence’

 

IMF report

A report by IMF analysed reform experiences of 108 countries.
Objective: to infer linkages between structural reforms and macroeconomic performance

Result: reform efforts gathered pace when many emerging markets faced financial crises. Like,

  • in the mid-1970s (breakdown of the Bretton Woods system and the first oil price shock)
  • the late-1980s and early-1990s (Latin American debt crisis and recession in many countries after the 1987 stock market crash)
  • in the late 1990s and early 2000s

 

[3]. Insolvency and Bankruptcy Bill, 2015: The return to reforms

 

What has happened?

Government has released for public comments the draft Insolvency and Bankruptcy Bill, 2015, prepared by the Bankruptcy Law Reform Committee chaired by TK Viswanathan.

 

Let us understand about the key stakeholders and players in the insolvency resolution process.

 

Creditors – In simplest terms, those who loan money are creditors

The creditors to the company are divided into,

  • Financial creditors (such as banks and bond holders)
  • Operational creditors (trade creditors).

Corporate Insolvency process: The insolvency process is aptly called a corporate insolvency resolution process. Any creditor with an undisputed debt (A undisputed debt is one that you agree is owed to the creditor) can initiate a corporate insolvency resolution process by making an application to the National Company Law Tribunal with jurisdiction over the company.

 

If the tribunal admits the application, the control and management of the affairs of the company automatically vests in the hands of an insolvency professional appointed by creditors. The new industry for insolvency professionals is overseen by insolvency agencies which are also regulated under the Bill. A new regulatory body, the Insolvency and Bankruptcy Board of India, has been empowered to make rules under the Bill and oversee the regime.

 

A good bankruptcy law needs to balance the interests of creditors, employees and the company itself. Let us see define few areas and see how this bill does the balancing act.

  • Speed of the process – Inordinate and often unnecessary delay is the overwhelming problem with the existing insolvency regime in India. In an insolvency situation, speed is paramount, so as to preserve value and ensure chances of the company’s revival. The Bill takes the timing of the process seriously. The tribunal is required to decide whether to admit a corporate insolvency resolution process within a time-bound period (usually 2-5 days, weekends and national holidays notwithstanding!). The entire corporate insolvency resolution process is required to be completed within 180 days from commencement, extendable once, under exceptional circumstances, for a further 90 days.

In the Bill any creditor can propose a resolution plan. Thus, there would likely be a flood of resolution plans. So, success of this feature also depends upon whether a lively and robust insolvency professionals market develops in India. Failure to adhere to 180/270 days timeline results in commencement of liquidation process.

  • Balancing stakeholder rights – The Bill attempts to establish a delicate balance between (a) creditors, as a whole, and the company; (b) financial creditors and operational creditors; and (c) secured creditors and unsecured creditors.

 

(1). Creditor- company bargain– The typical needs for a company in an insolvent situation are stay on the enforcement of debts against the company; and management control to steer the company out of financial distress. The Bill gives the former but not the latter. In India, under this bill the control and management of the company vests with insolvency professionals appointed by the creditors.

(2). financial creditors – operational creditors bargain: The Bill denies operational creditors a seat at the creditors committee table. In return, the interests of operational creditors are protected under a statute. The tribunal, when reviewing the resolution plan, needs to ensure that operational creditors are treated fairly. The Bill has delegated the Board the power to provide further guidance on this.

(3). Secured creditors-unsecured creditors bargain: The Bill appears to club secured creditors with unsecured creditors. For example, the creditors committee comprises of all financial creditors and the resolution plan is approved by 75% (in value) of all financial creditors (regardless of whether secured or unsecured). As drafted, if secured creditors constitute less than 25% of the financial debt of the company, the unsecured creditors would be able to “cram down” a resolution plan on such creditors. Unsecured creditors would also be able to vote to extend the corporate insolvency resolution process by a further 90 days.

  • Providing for a fresh start: The intent and purpose of the Bill, captured in its preamble, is “to promote entrepreneurship, availability of credit by consolidating and amending the laws relating to reorganisations and insolvency. The bill gets into the detail about the corporate resolution process, appointment of qualified insolvency professionals and even introduces a fast-track mechanism.
  • Providing for optimal judicial intervention: One of the primary reasons for the failure of the existing insolvency regime has been the excessive intervention of courts. Courts should be facilitators in a resolution process rather than a mere negotiation tool. The Bill recognises the balance that is required between excessive court intervention and excessive power in the hands of creditors. It seeks to achieve this delicate balance by giving the tribunal limited but precise powers. It appears that the tribunal can reject a corporate insolvency resolution commencement application and the ultimate resolution plan itself only in certain limited circumstances. The tribunal and courts will need to recognise and comply with this restrained approach for the Bill to really make a difference.

 

Conclusion

The Bill is clearly a major reform initiated by the government and has attempted to strike a delicate bargain between various stakeholders. Perhaps a re-look at the treatment of secured creditors is merited.

By: ForumIAS Editorial Team

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