9 PM Daily Brief – 26 May 2016

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

What is 9 PM brief?

• GS PAPER 2
  1. Resolving the NEET conundrum {Bills and Laws}
  2. Centre seeks to cool African ire {Foreign Policy}
  3. No minor will be handcuffed: Maneka {Bills and Laws}
  4. The takeaway from Tehran {Foreign Policy}
  5. On the road to smartness {Governance}
  6. ‘India-China exchange a model for the 21st century’ {Foreign Policy}
  7. L-G can’t claim immunity, says CIC {Polity}
  8. The wrong metric {Judiciary}
• GS PAPER 3
  1. Unlicensed software use still high in India {Indian Economy}
  2. Government approves capital goods sector policy {Indian Economy}
  3. Keep inspectors away {Indian Economy}
  4. Why these are difficult times for central banks {Economy}

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GS PAPER 2

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[1] Resolving the NEET conundrum

The Hindu

Already covered

Click Article 1 and article 2

[2] Centre seeks to cool African ire  + African diplomats too face racism

The Hindu                                                                           The Hindu

Issue:

• Click here
• The Ministry of External Affairs moved to control the damage in India-Africa ties due to frequent attacks on African nationals.
• Minister of State (MoS) for External Affairs Gen V.K. Singh met a delegation of African diplomats on Wednesday afternoon and requested them to “continue with the tradition” of marking the Day with suitable celebrations, sources told the media.

 

Outreach event

• A senior African diplomat said that they are unlikely to change the decision and would also boycott another event scheduled for Thursday and being held under the auspices of the ICCR.
• The Minister of State will also do an outreach event with African students along with concerned Embassies to reassure them of safety.
• It was also decided that the MoS would meet the African Heads of Mission every three months.
• The diplomats confirmed that the quarterly meetings with the MoS would be focused on safety issues faced by Africans.

 

African diplomats too face racism:

• The diplomat travels to different parts of the world, but barring India, they have not faced similar humiliation elsewhere.
• Many African diplomatic fraternity in New Delhi says that they have experienced “Afro-phobia” in India and contend that they are victims of racial prejudices.
• Sometimes, people get up when an African sits down next to them in the Metro. In other countries such incidents would be considered serious racist humiliation.
• Diplomats also recount that sometimes, they face lack of cultural consideration while interacting with the Indian bureaucracy.
• During 2015’s India Africa Forum Summit, a head of state from Africa became a subject of derision among certain sections after he asked for a glass of camel milk.
• African diplomats and family members often face difficulties in hiring of taxis and auto-rickshaws.
• Ignorance of African society also creates diplomatic rows.
• One such incident took place during the India Africa Forum Summit of 2011 when the First Lady of Senegal reached the airport dressed in the colourful traditional dress.
• Once inside the airport, she was singled out and was asked to undergo the usual security check which she felt was offensive.
• A row broke out between diplomats of that country and some officials in the airport.
• Finally, after a brief spat, the First Lady was given the due protocol of the spouse of a head of a state.
• Diplomats say that such situations can be avoided with better appreciation of African culture.

[3] No minor will be handcuffed: Maneka

The Hindu

Issue

• Draft rules of the Juvenile Justice Act

Key Points of the draft

• The rules prescribe detailed child-friendly procedures for the police and the Juvenile Justice Board (JJB) and Children’s court to deal with children in conflict with law.
• No child between 16 and 18 years of age in conflict with law will be handcuffed or sent to jail or lock-up.
• Proper medical and legal aid will be provided to juvenile criminals, and their parents and guardians will be duly informed.
• Every State government is required to set up at least one ‘place of safety’ for the rehabilitation of such children. The rules prescribe extensive services to be provided to such children.
• Several new offences against children have also been included in the Act such as sale and procurement of children for any purpose, corporal punishment in child care institutions, use of children by militant or adult groups, giving children liquor or narcotic drugs or psychotropic substances or tobacco products.
• The JJB or the Juvenile Justice Committee will determine the age of the child within 30 days from the date of submission of application.

[4] The takeaway from Tehran

The Hindu

Issue

• India-Iran relations

Context

• Recent visit of PM Modi to Iran and takeaway from the visit.

For comprehensive coverage on Chabahar Port, click here.

Being Pragmatic

• Even as India maintains its equities with the Gulf countries and Israel, it will have to forge a more strategic relationship with Iran.
• At the same time,India must avoid any facile assumption that Mr. Modi’s trip has already positioned us better vis-à-vis Pakistan or Afghanistan.
• Tehran has also reset its ties with Islamabad following a successful visit by President Hassan Rouhani.
• Iran will look for opportunities for connectivity and trade opened up by the Chinese ‘One Belt, One Road’ initiative.
• Chabahar is one of the several such avenues that it is currently exploring.
• Once the financial sanctions on Iran begin to ease properly, there is bound to be a spurt of European investment in the country.

Afghanistan angle

• Iran does not mind working with Taliban, but India has always opposed to any attempt at reaching out to the Taliban.
• With increasing turbulence in Iraq and Syria and the possibility of the Islamic State expanding into Afghanistan, Iran wants to keep its northern frontiers stable.
• Iran has worked in the past with the Taliban and will have no compunction about doing so now.
• While the trilateral transit agreement showcases cooperation among India, Iran and Afghanistan, it is unlikely to translate into effective political cooperation between them.
• India’s fundamental problems in Afghanistan persist:lack of strategic presence or leverage, and the absence of any regional partners.
• Hence, India will remain marginal to the evolving political situation in that country — unless we rethink our approach.

[5] On the road to smartness

The Hindu

Issue

• Smart cities.

For earlier article, click on Lucknow, Warangal among 13 smart cities announced by govt.

Different countries are facing different problems vis-a-vis city management

• Cities in the developed world are focussed on self-driving cars, electric vehicles and smart grids.
• While those in India are yet to meaningfully address basic issues such as walkability, public transport, waste management and pollution.

Importance of data collection and Information Technology (IT)

• City administrations have done a poor job of gathering data available from multiple sources and analysing them to make informed decisions on civic services.
• A lot of new information about what people do is now available from commercial services that use mobile phone applications, such as taxi companies, and the anonymised data with them can aid planning.
• Intelligent parking could be one way to mobilise funds and cut congestion.
• By integrating IT, motorists could be guided to available parking spaces in various locations in a city, using real-time information.
• Over time, it would be possible to even predict the availability of parking spaces based on usage patterns.
• A smart city should look at robust IT connectivity and digitalisation.
• At the consumer end, however, few cities have achieved this.
• They have not integrated the databases of their service agencies for water, transport, property and energy, and are therefore unable to serve citizens online.

Towards Smartness

• All cities can become smart, if the Urban Development Ministry makes available off-the-shelf open source technology solutions for management.
• We are living in an integrated world, where there is free flow of information.
• The government should not shy away from borrowing what is best and adapting it to our domestic conditions.
• In the smart world, sharing rules.
• And governments should set the pace.

[6] ‘India-China exchange a model for the 21st century’

The Hindu

News

• President Pranab Mukherjee’s visit to China.

Key Points:-

• He said that India and China should be seen as a model for civilisational contacts and peaceful exchanges in the 21st century.
• He emphasised the need for direct exchanges between the civil societies.
• He invited Chinese investors to expand their foreign direct investment in India and to leverage the various flagship initiatives launched by the Indian government such as Make in India, Digital India and the Smart City projects.
• Guangdong, sister-province of Gujarat,  has increasingly become a major port of call for Indian traders and businesspeople and that after Japan and South Korea, Indians comprised the third largest business community in the province.

[7] L-G can’t claim immunity, says CIC

The Hindu

Issue

• Central Information Commission (CIC) has directed the L-G of Delhi and Union Home Ministry to disclose the report on the basis of which Delhi Assembly was dissolved in November 2014.

L-G cannot claim immunity

• The information sought here is a report sent by the UT Administrator to Union Government or President.
• L-G cannot claim immunity given under Article 163(3), which says that “the question whether any, and if so what, advice was tendered by Ministers to the Governor shall not be inquired into in any court”.
• Article 163(3) of the Constitution does not apply to Union Territory of Delhi, which could be invoked only in case of a full fledged and not to the UT with assembly like Delhi.
• Article 163(3) applies specifically to the ‘advice of a Council of Ministers to the Governor.
• Even in those cases where Article 163(3) applies, there is no immunity from disclosure.
• There is no bar against citizen from having a copy of the advice/report of LG to Union government CIC has directed  the office of LG and the Home Ministry, to provide certified copies of report along with all other papers sent by LG to the Union Government, within 30 days from the date of receipt of this order.

[8] The wrong metric

Indian Express

News:

 

• Chief justice publicly announced that the Indian legal system currently requires over 70,000 judges to clear the backlog of cases in the country.

Related articles discussed earlier on this issue is:

 

1. Judiciary, an old boys club

2. Buck stops at Bench

3. A National Court of Appeal? Aye.

Issue:

• Understaffed Judiciary

Recommended strength:

• This figure is based on observations made in a 1987 Law Commission report, “Judicial Man Power Planning”, which had recommended raising the strength of the judiciary to 50 judges per million people.
• The Law Commission had itself, however, admitted that this “judge-population ratio” reasoning it had adopted for the recommendation, was based on “a very poor substitute for sound scientific analysis”.
• It has been repeatedly emphasised that timely disposal of cases is essential for maintaining the rule of law and good governance.
• It is also true that unless sufficient judicial resources are provided, the system cannot deliver timely justice.

Additional courts:

• Our policy makers have failed to devise an acceptable method to calculate the location-wise requirement of additional courts.
• According to governments at the Centre and in the states, the requirement of additional courts in a particular region should be based on the case-load of the existing courts there.
• For these reasons, the Supreme Court had in Imtiayaz Ahmad vs State of Uttar Pradesh (2012) directed the Law Commission to undertake another inquiry and submit recommendations regarding the immediate measures for the creation of additional courts.

Judge-population ratio basis:

• The commission, while once again expressing helplessness on the data front as it did in 1987, examined six different probable methodologies, including the “judge-population ratio basis”.
• It found that filing of cases per capita varied across states and was associated with economic and social conditions.
• It, therefore, concluded that while population might be an appropriate metric to measure the availability of services like healthcare and nutrition, it was not the apt standard to determine requirement of judicial services.
• The commission, on the premise that it would be difficult to collect data for the “workload method”, also suggested an ad-hoc mechanism — “rate-of-disposal method” — for a rough and ready calculation, based on current efficiency levels of the subordinate judiciary, to ascertain adequate judge strength.
• This means a fall in judicial efficiency will create higher demand of judicial resources, which may, however, be counterproductive for the institution. Ultimately, based on research in European and American courts, it was found that the “weighted caseload method” is the most appropriate measure for the purpose.
• Simply put, a weighted caseload system is used to convert the court caseload into the workload of the judge.
• Cases vary in complexity, and each of them requires different amounts of time and attention from the judges.
• A mere headcount of cases pending with the judges can offer little help in distributing the workload equitably among them. Workload in this context refers to the amount of a particular type of work, which a qualified person can handle within a determined time.
• The commission, though having felt that this is the most scientific method, still did not recommend its adoption on the ground that, “all information required to run this model for Indian courts is not available”.
• Undeniably, the system in India does not, at present, have any information about the time required by the judges to resolve each type of case.
• But with the government having invested over Rs 1,000 crore (with another Rs 1,600 crore in the pipeline) to equip the Indian judiciary with current technology, there cannot be any difficulty in collecting any type of data on a real-time basis.

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GS PAPER 3

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[1] ‘Unlicensed software use still high in India

The Hindu

Issue:

• About 58 per cent of software installed in computers in India in 2015 was unlicensed, according to a survey.
• While the rate of installation of unlicensed software in India has shown a gradual decrease from 65 per cent in 2009 to 60 per cent in 2013, it remains significantly higher than the global average of 39 per cent, the survey by BSA, an industry body representing software makers across the world, showed.
• The survey, called ‘Seizing Opportunity Through License Compliance,’ pegs the commercial value of the unlicensed software in India in 2015 at $2,684 million.

Victor Lim, Vice President, IDC Asia – Pacific Consulting Operations Group said:

• That the use of unlicensed software is still high and that individuals and companies are ‘playing with fire’ when they use unlicensed software as there is a strong connection between cyber attacks and the use of unlicensed software.
• The cost of dealing with malware incidents can be staggering.
• In 2015 alone, for example, cyber attacks cost businesses over $400 billion, globally.

China first

• India comes second after China ($8,657 million) in the Asia-Pacific Region in commercial value of unlicensed software sold in 2015.

[2] Government approves capital goods sector policy

The Hindu

News

• First -ever policy for the capital goods sector approved by the Cabinet .

Key points of the policy

• It aims to triple the value of production of capital goods to Rs.7.5 lakh crore by 2025 and create more than 21 million jobs.
• It envisages increasing exports to 40 per cent of production from the present 27 per cent.
• The share of domestic production in India’s demand will also be increased from 60 per cent to 80 per cent, making India a net exporter of capital goods.
• It will help in realising the vision of ‘Building India as the World class hub for Capital Goods’.
• It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of ‘Make in India’.
• The objectives of the policy will be met by the Department of Heavy Industry in a time-bound manner through obtaining approval for schemes as per the roadmap of policy interventions.

What are ‘Capital Goods’?

• Capital goods consist of any tangible assets that an organization uses to produce goods or services such as office buildings, equipment and machinery.
• Consumer goods are the end result of this production process.
• A capital good is a durable good (one that does not quickly wear out) that is used in the production of goods or services.
• Capital goods are one of the three types of producer inputs, the other two being land and labor, which are also known collectively as primary factors of production.

[3] Keep inspectors away

Indian Express

India may have dismantled the licence raj but as RBI Governor Raghuram Rajan recently noted, the inspector raj still continues.

• Since 2014 the government has chipped away at this while announcing a set of measures aimed at light regulation for start-up ventures, including ensuring no inspection for three years for a business relating to labour and environment, and compliance with law, post self-certification.
• Over the last few years, some states have responded to the challenge of attracting investment and creating jobs by cutting down on the approvals required for a host of activities and attempting to make it easier to do business.

For earlier article summary click here

License Raj far from being dismantled

• The recent move by the government to regulate the licensing of genetic modification crop technology in what should normally be an issue of a private contract along with imposing stock controls and turnover limits and raiding of warehouses, may only serve to reinforce the belief that a licence raj regime is far from being dismantled after over two decades of the opening up of the economy.
• Not only the central bank governor, but others too have made a strong case for a system of self-certification, with some checks built in, especially for small and medium enterprises which account for a substantial share of national output.
• India’s home grown software services firms have prospered over the last decade or two also because successive governments were mindful of the fact that keeping inspectors away was critical to sustaining the fortunes of that industry.
• Policy-makers would surely be aware of this at a time when reports indicate that a recovery could be around the corner.
• That may well be encouraging but the sobering fact is that global oil prices have started climbing back again, limiting the gains which have accrued so far to the government in terms of a lower oil import bill and inflation. Next month, India will mark 25 years of the elimination of industrial licensing.
• It offers the government an opportunity not just to review outdated laws and regulations but also to frame policies which will help equip India and local firms to take advantage of a possible global economic rebound in the offing.

[4] Why these are difficult times for central banks

Livemint

Issue

• Unconventional Monetary Policies followed by central banks.
• For a similar article, click on The way back for monetary policy

Additional Points:-

• Central banks of the advanced economies are considering permanently monetizing government debt.

Monetize the debt

• A way of paying off or otherwise financing debts accrued by a government by that same government or its independent central bank, in order to print more money and increase the monetary base.
• This can be done by issuing new bonds and/or selling domestic debt to foreign countries.
• In many countries the government has assigned exclusive power to issue or to print its national currency to a central bank. The government treasury must pay off government debt either with

1. money it already holds (e.g. income or liquidations from a sovereign wealth fund)
2. taxes collected from the public
3. money it creates “out of thin air” (printing press money now electronic)
4. or by financing it by issuing new bonds

• Government bonds may be sold to the public directly or to the central bank when government needs money to repay bonds that have come due.
• The central bank may purchase government bonds by conducting an open market purchase, i.e. by increasing the monetary base through the money creation process.
• If government bonds that have come due are held by the central bank, the central bank will return any funds paid to it back to the treasury.
• Thus, the treasury may ‘borrow’ money without needing to repay it. This process of financing government spending is called ‘monetizing the debt.

Problem with monetizing government debt

• There are multiple problems with this idea.
• For instance, it is not clear whether this will work or not in the given circumstances and how much monetization will be sufficient to attain the desired outcome in different economies.
• More importantly, the standing of fiat currency is based on trust and it is unclear as to what will happen if central banks start creating money, literally out of thin air.

Difficult time for central banks

• In these difficult times, it remains to be seen as to how they attain, if at all, the twin objectives of restoring growth and protecting credibility.
• One possible way out is that policymakers in general and central bankers in particular accept that there are limitations to monetary policy as well.
• Easy monetary policy is necessary but it is not sufficient for a sustained recovery.