Brief of newspaper articles for the day bearing
relevance to Civil Services preparation
- GS PAPER 2
- ‘Rising antimicrobial resistance, a serious threat to economic growth’ {Health}
- Sedition law is political; it is misused in India {Bills and Laws}
- After Oli, Army Chief to visit China {Foreign Policy}
- Be bold at nuclear summit {Multi organisation}
- Milestone on Beijing’s OBOR plan {International Affairs}
- Hope that radiates from Havana {International Affairs}
- Cigarettes aren’t India’s real tobacco problem {Health}
- GS PAPER 3
- Govt. decision on extending safeguard duty on steel imports for three years likely soon {Tax Laws}
- New gen NBFC’s to target smaller cities {Banking – Paper III}
GS PAPER 2
[1]. ‘Rising antimicrobial resistance, a serious threat to economic growth’
Issue
According to Economist, India will fail to to reap the demographic dividend, if it does not tackle antimicrobial resistance.
What is antimicrobial resistance?
Antimicrobial resistance (AMR), including antibiotic resistance, is the resistance of a microbe to an antimicrobial medication that used to be effective in treating or preventing an infection caused by that microbe.
Report (Paper)
‘Infection Prevention, Control and Surveillance”
- Paper predicted that antimicrobial resistance would claim an estimated million lives in India by 2050.
- And gave reports on the role of sanitation, infection prevention and control measures and surveillance.
Paper highlights
- Diarrhoeal illness in India, Indonesia, Brazil and Nigeria account for consumption of at least 500 million courses of antibiotics currently, a figure that could grow to more than 622 million by 2030.
- India has 395 million cases of diarrhoea, and if the country embarks on a radical improvement in sanitation, by 2030, this figure could drop to 114
- India’s antibiotic resistance problem as complicated
- India has a billion people and a lot of them live in poverty and need better access to health care.
Conclusion
A lot of these people use antibiotics when they are ill. People can not stop taking antibiotics as people need them. There was a need for more resources, particularly to tackle drug-resistant TB in the country.
[2]. Sedition law is political; it is misused in India
Issue?
It is about sedition law in Indian penal code. It is in news because this law has been imposed in recent events happened at JNU.
What is sedition law?
According to this law one can be arrested who tries to incite violence and disturb public order.
But it has impact on free speech as granted by constitution of India.
It has been said that there are three dimensions to sedition and free speech. They are
- Political
- Legal
- Public discourse
Political
In a constitutional democracy and republic, do the interest of the state need such a law.
Legal
At present restrictive judicial interpretation is made by courts on sedition law but didn’t struck down this section.
But allowing this section itself poses the danger of misuse.
Public discourse
Generally the question which is posed is “is free speech of a few more important than the security of the state”
But the question that should be asked is “whether a particular speech of a person poses a real threat to security”
But the sc has clearly said that mere speech doesn’t qualify as sedition. So to avoid arbitrariness the vagueness in the law must be avoided.
Apart from this law there is demand to remove other law like blasphemy law is there.
[3] After Oli, Army Chief to visit China
Issue?
Nepal’s army chief Rajendra Chhetri is going to visit china to strengthen bilateral military ties between the two countries
Why it has drawn attention?
Because the visit will start just after PM oli will return after completing his trip during which Nepal signed landmark agreement of transit and trade with china
According to experts the pattern of visit is same like Pakistan’s civilian and military leaders ie army chief visits immediately after PM. It reflects close coordination between different wings of Nepali government and China.
Nepalese army has grown in international importance due to its involvement in multilateral peacekeeping missions across the world but noted recently for being chief agency to provide relief after April 2015 earthquake.
[4] Be bold at nuclear summit
Issue?
Next week, PM Modi will be in Washington for Nuclear Security Summit (NSS). It is fourth and last in a series launched by Obama in Washington in 2010.
Outcome of the summits?
India has played active role in the process and a voluntary contribution of million dollars to Nuclear Security Fund has been made.
More significant is the establishment of Global Centre of Excellence for Nuclear Energy Partnership. It has conducted more than a dozev national and international courses in relevant fields.
India’s profile in NSS process
India’s role is natural given our concern about global terrorism. Since 2002 India has been introducing a resolution on terrorism and weapons of mass destruction in UN General Assembly, adopted by consensus every year which laid the groundwork for the legally binding security council resolution 1540 adopted in 2005.
Moreover integrated energy policy visualises increase in nuclear installed capacity. It will be 5% only but is critical in terms of reducing fossil fuel dependence and mitigating carbon footprint. Thus any breach in nuclear security would undermine public confidence in nuclear energy which would have grave repercussions
Threat of nuclear terrorism
Three potential nuclear threats have been identified because of emergence of terrorist organisations.
- Threat of terrorist acquiring nuclear bomb and exploding it.
- Possibility of sabotaging an existing nuclear facility to create an accident.
- Possibility of use of radioactive material to create a dirty bomb.
The last is often considered the easiest for a suicide squad, given the fact that there are millions of medical devices and other equipment that contain small amounts of radioactive substances which are widely distributed and don’t have the kind of security associated with nuclear reactor facilities.
What dirty bomb can do?
- It can create widespread panic.
- It can cost billions in cleaning-up operations.
Often there is confusion in India about our role because nuclear security is neither nuclear disarmament nor non proliferation nor it is nuclear safety. This downplays its significance or suspect that it is a ploy to constrain India’s nuclear programme. However, it is incumbent on India to ensure that all nuclear materials and facilities are subject to highest level of security.
Two countries which are not invited are
- Iran
- DPRK.
Putin will also stay away from it because of differences over Ukraine issue.
Rather than attempt to negotiate a new treaty, NSS process has focused on urging states to tighten national laws, rules and capabilities by using best practices and international cooperation.
Some of the outcomes
- Establishing global centres of excellence(like the one in India)
- Launching the Nuclear Security Fund.
- Expanding the activities of IAEA’s Nuclear Security Training and support centres.
In concrete terms
- About 15 MT of highly enriched uranium (HEU) have been down-blended to low enriched Uranium.
- Number of reactors using HEU have either been shut down ar switched their fuel.
- 12 countries have given up all HEU.
- Fuel repatriation to source countries has been accelerated
However major drawback is that there is no legally binding outcome at the end of six years.
Since there is no new organisation being set up, three existing institutions are expected to adopt specific action plans.
- The UN will sustain the political momentum and continue to monitor the implementation of UNSCR 1540
- the IAEA will strengthen its database of cases of illicit trafficking of nuclear materials and a Contact Group will be set up in Vienna for follow-up which would include a ministerial-level conference, possibly every two years
- Interpol will act as the nodal agency to deter nuclear smuggling.
In addition, the U.S. and Russia will continue to co-chair the Global Initiative to Combat Nuclear Terrorism (GICNT), which is a voluntary grouping of 86 states with working groups on nuclear detection, forensics and mitigation.
An innovative diplomatic practice was the use of ‘house gifts’ in 2010
What is house gift?
Leaders were encouraged to announce measures to address nuclear security threats at a national or wider level.
The concept evolved further to ‘gift baskets’, or joint undertakings by a group of like-minded countries that others were invited to join. Some gifts involved new commitments but some were recycled pledges.
Prime Minister Modi has carried forward the nuclear diplomatic agenda to establish India as a responsible weapon state and ensure its participation in civilian international nuclear trade and cooperation.
India completed its procedures for adherence to IAEA’s Amended Protocol in 2014, and last month announced ratification of the Convention on Supplementary Compensation for Nuclear Damage which had been part of the understanding reached on nuclear liability issues during President Obama’s visit in January 2015.
[5] Milestone on Beijing’s OBOR plan
What is OBOR plan?
Obor stands for one belt one road. It is a development strategy proposed by china that focuses on connectivity and cooperation among countries in Eurasia.
economically dynamic china as its nucleus and in partnership with resource rich Russia, Beijing has decided to knit the rest of Eurasia with roads, railways, cyber connected hubs, smart cities and industrial parks.
Obstacles in Asia pacific
Crisis in Korean peninsula and the South China Sea, where interest of china and US collide.
Not only china but various other experts have recognised Eurasia as the centre of world power.
Recognising its importance China is trying to achieve a great power status through a cooperative and collective approach by combining financial and economic heft with eastern soft power attributes whereas colonial powers used blood and iron policy to achieve it.
According to Chinese Foreign minister china will not play the bully to find a path to great power status. Rather it will abide by principles and purposes of UN charter.
Growing ties with Europe
Obor initiative have provided significant space to china in Europe. Chinese managed to draw Europe which has been unable to extricate itself from 2008 financial crisis, into obor paradigm through formation of AIIB. Defying exhortations from US, several countries like Britain, Germany, France etc became member of AIIB.
In Asia china has to confront US policy of “Pivot to Asia”. Thus Chinese are engaged in feverish diplomacy to undermine the pivot which is reinforced by the nuclear tension in Korean peninsula and crisis in south china sea.
China is unequivocal in reinforcing denuclearisation but insist that disarmament must be tied to signing of peace treaty agreement between North and South Korea. Formal peace treaty would ensure rapid integration of Korean peninsula in obor.
Chinese focus on denuclearisation follows two major outcomes of international diplomacy that have benefited Beijing. China fully backed Russia in disarming Syria of chemical weapons which prevented regime change in Syria and the nuclear deal with iran in which it played a major role which opened the door for iran’s integration through Sanghai cooperation organisation and obor.
However many fear that growing tension between US and China will open the door for a state of open war following a contest between an established and an emerging power.
[6] Hope that radiates from Havana
History
- The U.S.-imposed embargo (what Cubans call an economic blockade) on the Caribbean island nation
- In 1961, the U.S. severed diplomatic ties with Cuba and began pursuing covert operations to topple the Communist regime.
- The United States, however, continues to maintain its commercial, economic, and financial embargo, which makes it illegal for U.S. corporations to do business with Cuba.
What happened
- With the assistance of Pope Francis, the agreement led to the lifting of some U.S. travel restrictions, fewer restrictions on remittances, U.S. banks access to the Cuban financial system,and the establishment of a U.S. embassy in Havana.
- On 17 December 2014, U.S. President Barack Obama and Cuban President Raúl Castro announced the beginning of a process of normalizing relations between Cuba and the U.S.
Obama said
- During his visit, Mr. Obama did lay out his differences with Cuba’s political system even as he emphasised that the U.S. must not impose its values upon its neighbour.
- He called into question Cuba’s policies on political prisoners, positions on political dissidence and universal human rights
- Mr. Obama’s response was to welcome a constructive dialogue with his Cuban counterpart on these issues.
The Obama Doctrine
- restraint-driven realist concerned about the outcomes of the U.S’s overseas interventionism and an optimist convinced that the “world is bending towards justice”.
- Mr. Obama has tended to stay truer to his stated positions as the candidate who promised “change”.
- This has significantly helped resurrect the U.S.’s image, especially in Latin America, and has particularly motivated his policy decisions regarding Cuba.
Cuban change
- Allowed capital (both domestic and even foreign) greater play in many sectors.
- Free healthcare, free education and social welfare and tried to retain alternative modes of economic activity such as cooperatives
- Cuba has realised the need for efficiency via markets as opposed to overarching state control, leading towards steady economic liberalisation.
- An easing of the embargo should accelerate this movement in the direction of greater marketisation, which is expected to increase the purchasing power of Cubans and diversify an economy too dependent on select sectors such as tourism.
- The ending of the embargo should also give Havana the reassurance to abandon its excuse that the country is under siege, and allow a shift from a de facto one-party state to a more vibrant participative democracy that countenances political dissent.
Guantánamo Bay
The U.S. continues to operate a naval base at Guantánamo Bay under a 1903 lease agreement “for the time required for the purposes of coaling and naval stations”. The U.S. pays Cuba annually for its lease, but since the revolution, Cuba has cashed only one payment.
[7] Cigarettes aren’t India’s real tobacco problem
Issue?
From next month , the cigarette packs will be required to be covered in large graphic warning labels.
But in India it would not be effective because most Indians, who smoke, smoke a much cheaper unfiltered product called Bidi.
It is popular among poor because it is cheaper and in 2009 accounted for 85% of smoked tobacco in India.
Though bidis have lower tobacco content than cigarettes, but has more nicotine, tar and carbon dioxid
New law requires warning labels on only one side of bidi packs and bidis are barely taxed. Handmade bidis are taxed even less than machine made ones and those made by the smallest producers are exempt altogether.
India has second largest population of smokers after china and accounts for more than a million tobacco related deaths each year.
In 2011 it was estimated that economic cost of tobacco use is more than central and state governments spending on health care that year.
Thus to make people quit smoking various things need to be changed.
- Bidis need to be made more easily taxable.
- Distinction between handmade and machine rolled sticks should be eliminated
It would drive production into factories where output could be more accurately measured.
- Tobacco growers should be required to report sales and bidi makers to report purchases.
- Unbranded bidis which account for more than half of production should be banned outright.
- Taxes on bidis should be raised drastically.
GS PAPER 3
[1]. Govt. decision on extending safeguard duty on steel imports for three years likely soon
What happened
The govt. imposed 20 per cent ‘provisional’ safeguard duty on hot-rolled products of steel up to 200 days
- Steel production during April 2015-February 2016 in FY’16 contracted by (-)1.9 per cent (year-on-year) to 82.9 mt.
- Steel imports during that 11-month period grew 20.5 per cent to 10.2 mt,
- Steel exports shrunk 31.9 per cent to 3.4 million tonnes.
- Consumption of the item grew by 4.3 per cent to 72.7 million tonnes.
What is Safeguard duty
- The safeguard duty is a trade remedy recognised by the World Trade Organisation.
- It is a temporary measure to counter the adverse impact caused to the domestic industry (local steel producers in this case) due to a sudden and unforeseen surge in (low-priced) imports of the item (largely hot-rolled coils in the case under review).
Recommendations of DG
- The DG(Directorate general) Safeguards had recently recommended the extension of this duty till March 13, 2018.
- Govt. had imposed 20% ‘provisional’ safeguard duty on several hot-rolled products of steel for up to 200 days
- 20% till september this year, reduced to 18% for next 6 months, then to 15% next 6 months after that, and finally 10% duty for final 6 months
Why DG Safeguards increased the duty
- Surge in imports of these items was significant in relation to domestic production and total demand.
- Domestic steel makers have suffered serious consequences due to the huge increase in imports.
- The market share and profitability of the local industry declined (from 2013-14 to 2015-16)
- Market share of imports has increased during the same period
- The safeguard duty will aid in recovery of the domestic industry and will ensure the end-users get a stable supply of the items from the local producers, it said.
Why industries are bothered
- Minimum Import Price (MIP) as well as the provisional safeguard duty have already increased their raw material costs and are hurting their competitiveness, including in markets overseas.
- The government had last month imposed a MIP ranging from $341-752 per tonne on 173 steel products as an extra measure to protect local steelmakers from cheap imports.
- This is in addition to raising the peak customs duty on steel to 15 per cent (from 10 per cent earlier) and steps such as the order on quality control to safeguard the interests of local steel producers.
- Also, anti-dumping duty was imposed on several steel items in June and December last year.
Contention of EEPC
EEPC India: Engineering Export Promotion Council of India
An advisory body sponsored by the Ministry of Commerce and Industry, Govt. of India. It a premier trade and investment promotion organisation in India
- Quality Control order and the MIP continues, there is no case for continuation of safeguard duty till March 2018.
- Global prices of steel have also started to increase.
- Imports of flat-rolled products of steel and iron have been falling since December 2015.
- Imports of this item had contracted year-on-year by (-)40.2 per cent to $79.85 million and in quantity terms by (-)13.5 per cent to 200,835 tonnes.
- Imports of prime hot-rolled steel coils have been falling since November 2015.
- Pointing out that hot-rolled coil is a basic raw material for engineering products, the continuation of safeguard duty makes engineering exports uncompetitive.
- The MIP was leading to an increase in raw material cost by around 6 to 10%.
Conclusion
An inter-ministerial panel will shortly take a call on whether or not to accept the decision of DG of Safeguards.
The panel — comprising representatives from the ministries of commerce, finance, steel and heavy industries — will also consider representations by the user industries, mainly from the engineering sector.
[2] New gen NBFC’s to target smaller cities
What are NBFCs
Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction.
Background of the plan
As the government sets the agenda for initiatives like Make in India, Digital India, Startup India, directed towards growing the entrepreneurial environment in the country, NBFCs are trying to expand their reach to smaller cities as they see business opportunities in the
- Micro, Small and Medium Enterprise (MSME) sector and
- plan to tap the needs of the self-employed professionals, manufacturers and traders to expand their business through secured loans i.e. loan against property (LAP).
Why tier 2 and tier 3 cities are being targeted
- The profitability estimate indicates that NBFCs in tier-II and III cities can break-even in 12 months compared to a time span of 18 months in tier I cities.
- Tier-I cities generally have high quantum of loans and low numbers of customer.
- The repayment capacity of professionals, such as doctors, in tier–II and -III cities is better, as there is less competition for their skill.
- Besides, lending to them is more beneficial as they can recommend more borrowers/customers
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