Front Page / NATIONAL [The Hindu]
Editorial/OPINION [The Hindu]
ECONOMY [The Hindu]
- ‘Govt., industry must fight abuse of market power together’
- Market regulator tightens merger norms
- It’s time to say ‘Irasshaimase’ to Japan
- We expect budget to boost employment’
Indian Express
Live Mint
Front Page / NATIONAL [The Hindu]
[1] Stay on hearing public appeals till polls
Context
Article details Election Commission’s new order
What has happened?
The Election Commission has issued an order barring chief ministers, ministers and political appointees in the five poll-bound States from hearing appeals filed by people before statutory bodies till the election process was over as their decisions could influence voters.
Rationale behind the move
EC has said the hearings by politicians “may have direct or indirect influence on voters and may also disturb the level-playing field” during the elections.
[2] Why can’t FM stations broadcast news, asks SC
Context
If the Supreme Court has its way, private FM radio stations will have an essential role to play in the world’s oldest democracy — dissemination of news.
What has happened?
SC has picked up from a plethora of pending public interest litigation petitions a 2013 one filed by Common Cause regarding broadcasting of news and current affair programmes
The petition
Petition asks for a judicial declaration to end the monopoly of the PrasarBharati Corporation, which owns and operates All India Radio, over news broadcasting and current affairs programmes.
- The government’s prohibition, Common Cause argued, was in clear violation of the Supreme Court’s landmark verdict in 1995 in the Ministry of Information & Broadcasting vs Cricket Association of Bengal. The apex court then held that “airwaves are public property to be used to promote public good and expressing a plurality of views, opinions and ideas
- Violation of FRs: Policy Guidelines and of the Grant of Permission Agreements framed by the government which prohibit private FM radio stations and community radio stations from broadcasting their own news and current affairs programmes are clearly violative of the fundamental right of freedom of speech and expression as guaranteed under Article 19 (1) (a) of the Constitution. The right to freedom of speech and expression also includes the right to information, which encompasses diverse interpretations of news and current affairs
- No such ban in other countries: The NGO argued that no other democratic country had similar curbs. None of the USA’s 14,000-plus radio stations, the 2,000-odd stations in Spain or the 1,000-plus stations each in Italy, France, Greece and Australia are barred from airing news and cultural affairs. In fact, many stations are solely news channels, including specialised ones for community radio
Bench’s contention
The Bench asked
- Why there should be a continuing prohibition on FM radio stations and community radios from airing their own news and current affairs on a par with private TV channels and the print media
- Why the government wanted to control news on radio, which covers almost the entire population, even the rural masses, as per official estimates
Directions by Bench
- Explain gag orders: Bench has directed the government to explain, in four weeks, the series of orders systematically passed between 2008 and 2013 to gag private radio from airing their own news and current affairs broadcasts.
Policy guidelines and regulations
- On November 28, 2008, the Telecom Regulatory Authority of India recommended that for private FM radio broadcasting Phase III, FM broadcasters “may only be permitted to broadcast news, taking content from AIR, Doordarshan, authorised TV news channels, United News of India, Press Trust of India and any other authorised news agency without any substantive change in the content”.
- On July 25, 2011, a minor change was made under Phase III policy guidelines for FM to allow broadcast of FM radio news bulletins of AIR without any addition or modification
- During the third National Community Radio Sammelan on February 10, 2013, the Union Information and Broadcasting Ministry said that community radio stations would not be allowed to broadcast news for some time to come. As a stopgap measure, they could be permitted to re-transmit unedited AIR news.
Editorial/OPINION [The Hindu]
[1] Julian Assange: Scapegoat or villain?
Context
To blame Donald Trump’s victory on Julian Assange or, for that matter, on Russia, not only amounts to a refusal by the Democrats to take responsibility for Hillary’s defeat but is also an insult to the U.S. electorate.
Give it a light read.
[2] Smoking e-cigarettes is injurious to health
Context
In the absence of clear evidence on the effect of e-cigarettes on tobacco de-addiction, the sale of these products must be accompanied by accurate health warnings.
Electronic Nicotine Delivery Systems (ENDS)
Electronic Nicotine Delivery Systems (ENDS), also called e-cigarettes, personal vaporizers, vape pens, ecigars, e-hookah, or vaping devices, are products that produce an aerosolized mixture containing flavored liquids and nicotine that is inhaled by the user. ENDS can resemble tobacco products like cigarettes, cigars, pipes, or common gadgets like flashlights, flash drives, or pens.
- ENDS are battery-powered; some can be recharged via a USB port, others are disposable
- Main constituents: The main constituents of the solution by volume, in addition to nicotine when nicotine is present, are propylene glycol, with or without glycerol and flavoring agents
Seller’s contention: tobacco cessation products
Sellers of ENDS market these products as tobacco cessation products meaning they help in tobacco de-addiction
Author’s contention: serious public threat
The tobacco cessation effects of ENDS are not scientifically proven yet, hence, are completely anecdotal at this point. Moreover, absence of any regulatory approval for their use makes them a serious public threat
Increasing import
Market research also projects the compound annual growth rate of the Indian e-cigarette industry at 63.38 per cent in the period 2013-2018 (Research and Markets Report on E-cigarette Market in India 2014-2018)
Cigarettes and Other Tobacco Products Act, 2003 doesn’t cover ENDS
As e-cigarettes contain nicotine and not tobacco, they do not fall within the ambit of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), which mandates stringent health warnings on the packaging and advertisements of tobacco products
Findings of a survey conducted of 26 prominent and easily accessible e-commerce websites that sell e-cigarettes,
- 50 per cent have no health warnings on the consumption of e-cigarettes despite the fact that these products contain nicotine
- 30 per cent display warnings in an inaccessible manner: These websites carry health warnings stating the addictive properties of nicotine and other ill effects of e-cigarettes (including the warning that e-cigarettes are not meant for non-smokers) but do not display them as a part of the description of the product. Instead, these warnings are displayed at the bottom of the web page or clubbed with the section on terms and conditions, unlikely to be noticed by a regular buyer
- Important dangers missed: Some important dangers of e-cigarettes are not even mentioned on the products. Other dangers posed by e-cigarettes, which do not feature in the health warnings, are the possibilities of the product exploding (incidents have been reported globally) and accidental consumption of the liquid inside the e-cigarette, which leads to death
Unregulated sale of e-cigarettes in India is dangerous. Why?
The current unregulated sale of e-cigarettes is dangerous for a country like India where the number of smokers is on the decline (WHO Global Report, 2015) because of following concerns,
- Gateway effect: The gateway effect refers to two potential circumstances:
- The possibility that children (and generally non-smokers) will initiate nicotine use with ENDS at a rate greater than expected if ENDS did not exist
- The possibility that once addicted to nicotine through ENDS children will switch to cigarette smoking
- Renormalization effect:The renormalization effect refers to the possibility that everything that makes ENDS attractive to smokers may enhance the attractiveness of smoking itself and perpetuate the smoking epidemic
What should be done?
Accurate health warnings: In absence of any concrete evidence that ENDS promote tobacco cessation, it is imperative that their sale be accompanied by accurate health warnings
- Significant to India: This is especially relevant in India, where data in the Global Adult Tobacco Survey 2009-2010 suggests that tobacco control laws, particularly the pictorial health warnings and advertisements, mandated under COTPA, have been highly effective in increasing awareness of the health risks of tobacco (smoking as well as non-smoking). More than 70 per cent of persons surveyed noticed health warnings on cigarettes, while approximately a quarter thought of quitting on seeing this warning. The effectiveness of such warnings in ultimately reducing tobacco consumption has also been confirmed by the WHO
Present situation
Lack of a uniform approach: There is a lack of a cohesive approach towards e-cigarettes. Different states in India have taken different routes. Only Maharashtra, Kerala, Karnataka and Punjab have implemented the ban on e-cigarettes. Punjab has classified nicotine as a poison, while Maharashtra treats it as an unapproved drug. Such incoherent policies will only help sellers to scuttle the law via loop holes
Way forward
Imposition of restrictions: The Indian government impose appropriate restrictions on the sale and advertisement, online and otherwise, of e-cigarettes, including proper health warnings, in order to plug the existing regulatory vacuum
Independent research: Simultaneously the government should also commission independent scientific research on the benefits and risks posed by these products in the Indian context.On the basis of this research, it may then make an informed decision regarding their regulation as tobacco imitation products or as therapeutic products.
ECONOMY [The Hindu]
[1] ‘Govt., industry must fight abuse of market power together’
Context
Article contains views expressed by various participants, speaking at a discussion on “Politics of Competition Reforms in India.”
Rajiv Kher (member of Competition Appellate Tribunal)
- If the spirit of innovation is not thwarted, technology — which had been touching all walks of life — can help mainstream competition up to the municipal level, he said. The term ‘competition policy’ refers to norms preventing restrictive trade practices and abuse of market dominance
- The consent of all stakeholders, such as the Centre and businesses, is needed to implement norms, right up to the municipal level, against abuse of market power and other illegal practices restricting free trade and competition among businesses
- Cartelisation: Even municipal institutions are grappling with the problem of cartelisation and such anti-competitive practices
Frederic Jenny’s views (Chairman, OECD Committee on Competition)
- He referred to the link between trade and competition policy saying most trade pacts that exist have a chapter on competition
- He said greater competition can lead to increased productivity, investment and economic growth, and in turn reduce poverty. Mr Jenny said in many countries, the poor and the informal sector are the victims of anti-competitive practices that act as a barrier to mobility and access to credit
Allan Fels, former chairman, Australian Competition & Consumer Commission
- He lauded the political leadership in India for ensuring the passage of the Goods & Services Tax Bill in Parliament, adding that it was also necessary to lay emphasis on the principle of competition.
- He said it was important to ask whether the firms — that may gain owing to a major tax reduction after the GST comes into effect — will pass on a good part of the benefits to consumers or pocket all the gains.
[2] Market regulator tightens merger norms
Context
SEBI aims to ensure wider public holding, prevent mergers of large unlisted firms with small ones.
What has happened?
In a bid to safeguard the interests of the public shareholders, the Securities and Exchange Board of India (SEBI) has tightened the norms for merger of an unlisted company with a listed entity
SEBI has decided that,
- Holding of public shareholders post the merger cannot be less than 25%
- Threshold for institutional shareholders: Further, the watchdog has stipulated a similar threshold for institutional shareholders of the unlisted entity as well, post-merger
- An unlisted company can be merged with a listed company only if the latter is listed on a stock exchange having nationwide trading terminals
- E-voting mandatory: To ensure larger say for the public shareholders, the regulator has also made their e-voting mandatory in cases wherein the stake of such shareholders reduces by more than 5% in the merged entity
- Reduced broker fees: The regulator also reduced the broker fees by 25% from Rs. 20 per crore of turnover to Rs. 15 crore. This will result in reduction of overall cost of transactions and will benefit the investors and promote the development of securities market
- Include performance of scheme in ads: In order to help mutual fund investors take better informed decisions, SEBI has decided that fund houses will have to include in their advertisements, the performance of the scheme in terms of CAGR for the past one year, three years and five years and since inception.Currently, the fund house only publishes the scheme’s returns for as many twelve month periods as possible for the past three years.
Why this move by SEBI?
- SEBI was concerned because there have been instances where the route of merger was used to get an indirect listing for an unlisted company
- There was another category of misuse where under an arrangement; securities were being issued to promoter related persons only.
[3] It’s time to say ‘Irasshaimase’ to Japan
Context
The spirit of ‘welcome’ should aim to cut red tape, remove infrastructure challenges and avoid project delays in India.
Present article seeks to find ways to rejuvenate the partnership between Indian and Japan to blossom into one of the most functional partnerships among nation states in recent history.
Investment
As per data from the Japan External Trade Organization (JETRO), Japan’s aggregate outward investment in China during the period 1996-2015 was $116 billion and in India was $24 billion. China has received close to 5 times more investment than India.
- Targeting $25 Billion annually: The stock of Japanese foreign direct investment globally is $1.3 trillion. The annual outward flow of Japanese FDI is about $130 billion and the U.S. gets about $40 billion annually. India should target at least $25 billion annually for the next 10 years
FDI patterns
From a foreign direct investment (FDI) perspective, based on data from the Department of Industrial Policy and Promotion-India, between April 2000 and September 2016,
- Japan ranked 4th with an aggregate investment of $24 billion. In comparison, China’s aggregate FDI in the same period was $1.6 billion and that of South Korea was $2.1 billion
- Annual trade growth from FY95 to FY16
- Between India & Japan: 6.3 per cent
- Between India & China: 22.6 per cent
Challenges to the partnership
There are three main challenges which have constrained the Japan-India partnership from achieving its full potential.
- Complex regulatory structure: India’s complex regulations, red tape, ad hoc nature of state-level interventions
- Logistical challenges: Japanese companies face considerable logistics challenges and non-availability of uninterrupted power supply constrains their manufacturing plans in India
- Delays in commencing of projects: While India can emerge as a large market for Japanese infrastructure system exports, there have been incredible delays in the commencement of the projects.
What has government done?
In order to facilitate investment from Japan, the union government has set up a Japan Plus committee which comprised of,
- 4 senior bureaucrats from the government
- 3 Japanese officials chosen, one each from Japan’s Ministry of Economy, Trade and Industry (METI), Japan External Trade Organization (JETRO) and the Aichi prefecture
- Aim: To deal with all aspects of investment mainly challenges faced by Japanese companies post investment
Japan Industrial townships (JITs)
Japan is working on developing 12 Industrial townships called Japan Industrial Townships (JITs) which will operate like Little Japan with all the infrastructure to support the operations of Japanese companies.
- The JITs face challenges from access to ports, lack of uninterrupted power supply and poor level of benchmarking to global best standards as applicable for industrial parks.
Japanese companies willing to expand in India
As per the JETRO Survey on Business Conditions of Japanese Companies in Asia and Oceania (2015), more than 70% of Japanese companies operating in India have indicated that they will expand operations over the next one to two years.
- In comparison only 38.1% of the Japanese companies operating in China have indicated that they will expand operations
Tokyo Declaration metrics
The Tokyo Declaration of November 2014 sets a target of,
- Doubling Japan’s foreign direct investment
- Doubling the number of Japanese companies operating in India
- An ambitious investment target of JPY 3.5 trillion ($33.5 billion) within a five-year period. The doubling of foreign direct investment seems unlikely unless some dramatic revival happens
Underperformance vis-a-vis Tokyo targets
- The number of Japanese companies in India in October 2014 was 1,156 and by October 2015 it was 1,229, an increase of 6%, much lower than the needed growth to achieve the target
- The cumulative Overseas Development Assistance disbursement by Japan (India is the largest recipient of Japanese ODA) in 2014 was JPY4.6 trillion and in FY 15-16 only JPY 185.6 billion was disbursed
Given the under-performance on all the benchmarks set up under the Tokyo Declaration, timely intervention from the highest levels of both governments can still ensure that the ambitious metrics can be achieved.
Conclusion
The Japan-India relationship is at a unique juncture as Asia is emerging as the powerhouse of the world. The Japanese government must play a more active role in building India’s infrastructure, which will serve as a foundation for sustained economic growth.
[4] We expect budget to boost employment’
Context
While there are hopes and apprehensions on the extent to which the Budget provisions would revive investment and demand, questions abound on how the Budget can be inclusive in its approach and delineate a roadmap for creation of job opportunities.
Article lists down expectations from the budget and challenges it needs to address.
Give it a go-through.
Indian Express
[1] From plate to plough: Growth amidst gloom
Context
Agriculture GDP bucks the trend of decline in other sectors. But can the government help the farmers sustain this growth?
Declining GDP numbers
The first advanced estimates of GDP growth for the financial year 2016-2017 (FY17) show a marginal decline from 7.6 per cent last year to 7.1 per cent this year
A big jump for agriculture
In terms of Gross Value Added (GVA) at basic prices, Agriculture & Allied sectors have registered a big jump from 1.2 per cent in 2016 to 4.1 per cent in 2017 despite being hurt badly by drought from last two years.
Significance:
- This sector engages around half the workforce of the country and provides food security
- Central Statistical Organization (CSO)’s credibility has increased: NITI Aayog had forecasted a higher growth rate of 5.5 per cent and by displaying that it is not swayed by such anticipations CSO’s credibility has increased
Lowest growth rate since 1991
Author points out that the first three years of the present government are likely to yield an agri-GDP growth of just 1.7 per cent per year, and the growth for the forgotten Twelfth Five Year Plan (FYP) (2012-13 to 2016-17) is going to be 2.2 per cent per annum.
- This will be the lowest growth rate registered in any FYP since economic reforms began in 1991, and way below the target of 4 per cent, indicating the biggest failure of policy making
A lost opportunity
The Kharif foodgrain production in FY17 registered an impressive growth of 8.9 per cent over kharif of FY16, led by a very high pulse production
- Massive increase in pulse production: Kharif pulses recorded a whopping increase of 58 per cent. This was the result of very high pulse prices — around Rs 180-200/kg in retail markets before the sowing season& a very good monsoon
- Drop in prices:With a 58 per cent increase in production, prices of tur and moong came tumbling down. In several markets, prices went below the minimum support prices (MSPs)
- A wasted opportunity:This was a golden opportunity for the government to build a buffer stock of two million metric tonnes and support farmers by ensuring that market prices do not drop below MSP. But this opportunity was not tapped fully; the area under pulses may drop next year, and imports increase.
Kharif Oilseeds: Similar story like pulses
The case of kharif oilseeds was similar.
- Massive increase in Soybean harvest: Production jumped by 41 per cent, led by the 65 per cent increase in the soybean harvest. As a result, soybean prices crashed in major markets, going below the MSP at places
- A wasted opportunity: Here also government could have built a buffer stock and not allowed the prices to plummet below MSP but nothing of this sort was done. Hence, oilseed dependency will remain
Opportunity lost
India is the largest importer of pulses and one of the top two importers of edible oils. The total import bill on edible oils and pulses hovers around $12-15 billion. India has had a Mission on Oilseeds and Pulses for the past 25 years, without much success in increasing production. Now, when production jumps, the system is not geared to ensure even the MSP to farmers.
- This will surely discourage farmers and the country will remain dependent on imports of pulses and oilseeds for years to come.
What should have been done?
- Removing restrictions: Author states that the minimum policymakers could have done was to remove restrictions on free functioning of exports and markets
Significance of oilseeds and pulses
- Cutting fertilizer subsidy load: Oilseeds and pulses are grown in relatively less irrigated and poorer regions, consume much less water and fix nitrogen in soil, thus, saving large fertilizer subsidies. Therefore, supporting them should be a national priority
- Boosts demand: It will also help alleviate poverty faster and boost the demand for manufactured products, thus helping industry. Tractor demand is already showing recovery with a 15-20 per cent growth over the corresponding period last year.
Conclusion
Author concludes by stating that we need an agri-friendly policy which relieves Indian agriculture of the dependency on monsoons. An effective MSP policy will also alleviate the distress factors pertaining to farmers.
[2] The China bogey
Context
New Delhi’s frustration with Beijing ought not lead it into a too-quick embrace of a US-led military alliance
With a regime change comes a change in the mindset. A similar change is being witnessed in US with a new President-elect at the top.
- While keeping a policy of positive relations with China, US will simultaneously try to create a counterbalance to stop China from assuming a bullying role in South China Sea and further
- India, Japan and Australia form a key part of that counterbalancing approach
Caution is the way forward
Author points out that in the light of recent downturn in Indo-China relations over NSG membership and Beijing’s technical hold over matter of Masood Azhar in UN, India should be cautious to not be too quick to embrace US –led military alliance in Asia. Why?
- Unclear outcomes: Because the gains of entering into an Australia-India-Japan-US maritime alliance in the Pacific are not clear
- Escalation of tensions: It might lead China to escalate tensions along its disputed borders with India, as it has done in the South China Seas. The partnership might give India gains in military technology but that, by its mere existence, is unlikely to deter small wars and conflicts on the China-India border.
[3] Prepare for ‘slow down India’
Context
The only engine that appeared to be running was government expenditure. In this scenario, what can be expected regarding the growth rate in 2016-17?
Engines of growth
Author states that there are 4 engines of growth
- Government expenditure
- Private consumption
- Private investment
- Exports
Private investment & exports have been slow for many months. Private consumption was strong but post-demonetization it has taken a hit too. So, the only engine that appeared to be running was government expenditure. In this scenario, what can be expected regarding the growth rate in 2016-17?
Loss of 1.5 lakh crore
As per the advance estimates of GDP for 2016-17 (data till October 2016), released by CSO,
- Decline in GDP: Projections show decline in GDP from 7.56 per cent in 2015-16 to 7.09 in 2016-17. That is a hit of 0.5 per cent. There is sufficient evidence that, post-demonetisation, the economy will slow down further. Author says that his prediction of at least 1 per cent decline in GDP post-demonetization will come true.That is a loss to the economy of Rs 1,50,000 crore
What CSO’s estimate tell us about the engine of Investment?
The critical number is Gross Fixed Capital Formation (GFCF), which is a measure of investments in the economy
- CSO estimate: The CSO estimates that GFCF will decline by 0.2 per cent in 2016-17. The decline will be steeper because it is unlikely that any investment would have taken place post-demonetization
- Consecutive shrinkage in GFCF: Author states that a close look at the CSO’s estimates reveals that for three consecutive quarters the GFCF has shrunk compared to the corresponding quarter of the previous year, and the rate of shrinkage has accelerated:
Jan-March 5.35 -1.90
Apr-June 7.11 -3.10
July-Sep 9.70 -5.59
Other dismal indicators
- Decline in government & private sector investment: Both the government sector and the private sector announce new projects and the projected investments in those projects are tallied every quarter. Between Oct-Dec 2015 quarter and Oct-Dec 2016 quarter, the value of government sector projects that were announced declined from Rs 256,669 crore to Rs 42,128 crore and the value of private sector projects declined from Rs 119,475 crore to Rs 86,645 crore
- Decline in Foreign Portfolio Investment: FPI investment has turned negative at the end of December 2016
Summing the data
Author states that above data showing a declining investment in the country will cause a decline in the growth rate of the economy. It further means fewer jobs, more layoffs or retrenchment, low growth in incomes, and fewer people lifted out of poverty
Live Mint
[1] Demonetisation debates, redux
Context
A sharper temporary liquidity crunch, inflicting higher short-term costs, will likely induce, in the end, greater medium- to long-term gains in the form of digitization and formalization.
Give it a go-through
[2] Reconsidering the 4% inflation target
Context
In determining the inflation target, there appears to be a trade-off between overcoming the zero lower bound problem and improving welfare.
Give it a go-through
[3] Water as a force for peace
Context
The growing recognition of water’s strategic relevance reflects global developments.
Author’s contention
Author states that on a global level, role of resources especially water has begun garnering attention that it deserves. He states that,
- Both Kofi Annan and Ban-ki Moon have argued for some two decades that protecting and sharing natural resources, particularly water, is critical to peace and security but it was not until November 2015 that the issue gained widespread acknowledgement, with Senegalholding the UN’s first-ever official debate on water, peace and security
- The growing recognition of water’s strategic relevance reflects global developments
Debate on water, peace and security
The debate brought together representatives of 69 governments, which together called for water to be transformed from a potential source of crisis into an instrument of peace and cooperation
Global developments indicating water’s strategic relevance
Utilization by Extremist groups
- IS: In the last three years, the Islamic State (IS) captured the Tabqa, Tishrin, Mosul, and Fallujah dams on the Tigris and Euphrates Rivers. IS subsequently lost control of all of them, but not before using them to flood or starve downstream populations, to pressure them to surrender
- Extremist groups in South Asia have also threatened to attack water infrastructure
Importance of water is comparable to oil
The importance of water in the 21st century—comparable to that of oil in the 20th—can hardly be overstated.
- No alternative to waterunlike oil: The reality is that oil has alternatives like natural gas, wind, solar, and nuclear energy. By contrast, for industry and agriculture as much as for drinking and sanitation, the only alternative to water, as former Slovenian president Danilo Türk once put it, is water
- River Chagres: Author cites the example of River Chagres which feeds Panama Canal through which 50 per cent of the trade between Asia and Americas flows. There is no risk of the natural depletion of the river flow for the next 100 years, but in the event of a security crisis in Central America, it could be taken over by rogue forces. The impact on the global economy would be enormous
What can be done to protect water resources and installations in conflict zones?
Presently Red Cross negotiates safe passage for technicians to inspect and repair damage to water pipes and storage systems in Iraq, Syria and Ukraine; but each passage needs to be negotiated with governments in conflict and rebel commanders—a long and cumbersome process.
A better approach: A better approach would be for great powers, with their considerable influence, to negotiate short-term ceasefires in areas experiencing protracted conflict, specifically to repair and restore water systems. What needs to happen for this approach to fructify?
Declaring water a ‘strategic resource of humanity’
Author states that to pave the way for such an approach, however, the UN Security Council will have to declare water a “strategic resource of humanity” and adopt a resolution to protect water resources and installations, similar to Resolution 2286, adopted in May 2016 to protect medical facilities in armed conflicts
What can be done in the long term?
In the longer term, countries that share riparian systems will need to establish regional security arrangements to preserve and protect their resources.
Blue fund for Congo Basin
Denis Sassou-Nguesso, president of the Republic of the Congo, is at the forefront of this movement for shared arrangements, leading a group of eight governments towards the establishment of the Blue Fund for the Congo Basin.
- If successful, the Fund will help to mitigate climate change, create new avenues of river-based employment, and promote collective security in an unstable region
- The Africa Action Summit in Marrakech November 2016described the fund as one of the four key ideas that can transform the continent
Conclusion
Author concludes by stating that we need similar funds like Blue Fund for Congo Basin to emerge to protect all of the world’s 263 shared river basins and lakes. It is a huge challenge; but, given the power of water to sow conflict and support peace, we must confront it head on.
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