A brief of newspaper articles for the day bearing
relevance to Civil Services preparation
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National
[1]. “Amendment to Child Labour Act leaves issues unaddressed”
What has happened?
Union government has given its approval for moving amendment to the Child Labour (Prohibition and Regulation) Act, 1986. The amendment if passed will defeat the entire purpose of the Act itself.
What the amendment proposes?
The proposed amendment states that children will be allowed to work in family enterprises and in the TV and Entertainment industry, except circus. The Bill proposes to allow children to work in family enterprises. Also, the list of prohibited occupations set forth in the schedule has been reduced to just three, including mines, inflammable substances and explosives. Earlier, the Child Labour law prohibited employment of a child in 18 occupations and 65 processes.
The problem: Maximum number of child labour is employed in family-run trade
[2]. Now, COPD will take your breath away
What has happened?
Chronic Obstructive Pulmonary Disease (COPD) — a progressive non-communicable lung disease that makes it hard to breathe — is on the rise in the Capital with doctors now being advised to identify and counsel patients who visit them with the problem.
COPD, or Chronic Obstructive Pulmonary Disease, is a progressive disease that makes it hard to breathe. “Progressive” means the disease gets worse over time.
COPD can cause coughing that produces large amounts of mucus (a slimy substance), wheezing, shortness of breath, chest tightness, and other symptoms.
Cigarette smoking is the leading cause of COPD. Most people who have COPD smoke or used to smoke. Long-term exposure to other lung irritants—such as air pollution, chemical fumes, or dust—also may contribute to COPD
People with existing COPD disease are considered to be at an increased risk of developing morbidities like cardiovascular issues, lung cancer and a variety of other medical anomalies.
COPD and India
It is the third leading cause of death worldwide and in India approximately 15 million suffer from COPD
International
[1]. On his first visit to Tehran in years, Putin lifts ban on nuclear co-operation with Iran
What has happened?
President Vladimir Putin has eased restrictions on Russian companies working on Iranian enrichment sites as he travelled to Tehran for his first visit since 2007. This comes in the backdrop of Iran’s historic deal with world powers
What was agreed in the historic deal by Iran with the world powers?
- Iran agreed to dramatically scale back its nuclear programme, making it much more difficult for it to develop nuclear weapons.
- Tehran agreed to slash by two-thirds the number of centrifuges, machines that can “enrich” or purify uranium to make it suitable for peaceful uses but also for a nuclear weapon.
Why Putin has done so?
Russian companies are eyeing business opportunities in Iran after the sanctions are expected to be lifted in the next two months, once the deal reaches the implementation stage.
[2]. Where does the IS get its money from?
What has happened?
The IS has established a proto-state in the self-proclaimed ‘Caliphate’ that stretches from the suburbs of Damascus to the outskirts of Baghdad comprising 8 to 10 million people. This organisation has its own funding sources. The biggest challenge for the world powers is to choke these sources.
What is a proto-state?
A proto–state is a group of people in the process of becoming a state, or performing some but not all functions of a state.
What is a caliphate?
A caliphate is a form of Islamic government led by a caliph – a person considered a political and religious successor to the Islamic prophet, Muhammad, and a leader of the entire Muslim community.
Proof that IS has strong financial resources
- It has a religious police in the ‘Caliphate.
- It is also running schools, food points and other administrative centres.
- Besides, it is fighting a protracted war on its borders against several enemies — the Iraqi and Syrian national armies, rebel forces and other jihadist groups such as Jabbat al-Nusra.
- According to The Economist , IS fighters are paid around $400 a month, better than an average Iraqi soldier.
Where does the money come for all the above operations?
- Donors’ money: Usually terror organisations are run on the money they receive from the international donors. These donors include businessmen, wealthy families and other donors in Saudi Arabia, Qatar, Kuwait and the UAE. In 2013-14 IS received around $40Million from these donors.
- Capture of Raqqa: Ever since the capture of Raqqa, the eastern city of Syria, IS’s financial revenue has increased manifold through tax collection in the caliphate.
- Kidnappings: The group has also made millions from kidnappings
- Looting of banks that fell in its hands like in Mosul
- Black marketing antiques: The IS has also set up a Ministry of Antiquities whose main job is to sell precious and historical artefacts in black market and generate cash.
- Oil Trade: IS’s single largest source of income is oil trade. The group controls 10 Syrian oil fields and 4 small fields in Iraq. The group has established a network of oil trade starting from the production fields to the end user in and around the ‘Caliphate’. The Financial times report puts the IS’s daily revenue from oil trade at $1.5 million.
They sell oil to independent traders at the oil fields who will get it refined in the mobile or local rudimentary refineries established in Iraq and Syria and then the refined product would be taken either to the IS-controlled or private oil markets or to the neighbouring countries such as Turkey where traders would buy it.
Opinions & Editorials
[1]. India’s carbon caution in Paris
Context: On November 30th 2015, Paris will host the gathering of 21st session of Conference of Parties (COP-21) to the United Nations Framework Convention on Climate Change (UNFCCC).
What is the purpose of this session?
The major aim of the session is to achieve a legally binding and universal agreement on climate, from all the nations of the world.
How is the purpose going to be achieved?
Member nations were asked to prepare and submit national roadmaps on reducing Green House Gas (GHG) emissions, termed as INDCs (Intended Nationally Determined Contribution). Based on these submissions a nations’ accountability shall be fixed.
What is IPCC?
The Intergovernmental Panel on Climate Change (IPCC) is a scientific intergovernmental body under the auspices of the United Nations, set up at the request of member governments. It was first established in 1988 by two United Nations organizations, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP), and later endorsed by the United Nations General Assembly
Aim
The IPCC produces reports that support the United Nations Framework Convention on Climate Change (UNFCCC), which is the main international treaty on climate change.
The aims of the IPCC are to assess scientific information relevant to:
- Human-induced climate change,
- The impacts of human-induced climate change,
- Options for adaptation and mitigation.
Structure of IPCC
It composes of 3 working groups, a Task force and a Task group. The activities of each Working Group and of the Task Force are coordinated and administrated by a Technical Support Unit (TSU).
What are the assessment reports, special reports and synthesis reports?
Assessment report: These are published materials composed of the full scientific and technical assessment of climate change, generally in three volumes, one for each of the Working Groups of the IPCC and a Synthesis report
Special reports: These are materials that provide an assessment of a specific issue and generally follow the same structure as a volume of an Assessment Report
Synthesis report: The Synthesis Report synthesizes and integrates materials contained within the Assessment Reports and Special Reports and is written in a non-technical style suitable for policymakers. It is composed of a longer report and a Summary for Policymakers.
What science says?
IPCC’s 5th Assessment report says that there is only a set amount of greenhouse gases that humanity can emit in the atmosphere, to keep the rise in the global temperature below a specified level. This set amount of GHGs includes what has been emitted and what will be emitted in future.
What is the amount left for the future?
The estimate based on AR5 is that between now and the end of the century i.e. 2015 and 2100, if we take account of non-carbon dioxide gases too, the total emissions should lie within 1,192 to 2,000 billion tonnes.
The logical step
So, the most logical thing would have been to find a fair and equitable distribution of this global carbon budget amongst the nations of the world but instead we have INDCs where each and every nation including the developed, have been allowed to declare what it will do, irrespective of whether the sum total would enable us to stay within the global cumulative limit.
INDCs :A fallacy
AS per UNFCCC’s estimates the global carbon emissions expected after the reductions from the INDCs amounts to 750billion tonnes until 2030.
Let us break it down a bit, as you have read earlier in the article, as per AR5, the cumulative limit, from now till the end of this century, is between 1192 – 2000 tonnes.
Out of that 750 billion tonnes i.e. around 75% is going to be utilized in the first 15 years i.e. from 2015 to 2030 meaning for the next 80 years we would be left with 25% of global cumulative carbon emission limit.
Moreover, the developed nations’ contribution to global emissions has been higher taking in account their previous emissions. They have contributed disproportionately to the global carbon budget. So, based on equity and climate justice, there share from now onwards should be restricted.
India is in jeopardy. Why?
On the one hand a climate deal is a necessity to ensure that the task of emission reduction and the burden of adaptation is not solely borne by the Indian population.
On the other hand, a weak deal would mean India and the developing countries would have to face serious repercussions pertaining to their developmental efforts based on the usage of global carbon budget which is a scarce and limited resource.
What should India’s strategy be?
- Claim a reasonable and fair share: India should stake a claim on a fair and reasonable share of the global carbon budget. India also needs to confront the perception in the West, and among many environmentalists, that this is a demand for the unrestricted use of coal. Coal is indispensable as the last resort energy source in this pursuit.
- Common but differentiated responsibility: India should step forward to support the principle of equity and common, but differentiated, responsibilities, also known as CBDR (Common but differentiated responsibilities)
Conclusion
Securing a part of, India and the developing countries’ developmental future within the framework of global environmental sustainability is the challenge, and India cannot afford to drop the ball at this juncture.
[2]. How the valley is changing
Context: Author in this article has tried to bring forward the fallacy in the strategy of the successive governments in Delhi and what the future course of action should be if India wants to improve its relationship with Kashmir.
Strategy of economic packages:
The successive governments at the centre have failed to understand that the strategy of economic packages to bridge the gap between Delhi and Kashmir is no longer going to work as it did for quite some time in the past. The valley has changed, is changing and this change is being affected by various factors.
Regional factors
- Pakistan’s new role: Given the changed nature of the politics of Kashmir, Pakistan is feeling emboldened today to raise its stakes in Jammu and Kashmir. There are other factors as well such as the China-Pakistan Economic — as also military — Partnership, which has added to Pakistan’s confidence to meddle in Jammu and Kashmir. The increasing ‘noises’ from Pakistan of involving the ‘other stakeholder,’ viz. Kashmiris, in reaching a settlement on Kashmir must not hence be treated as a mere reiteration of Pakistan’s long-standing trivial complaint.
Geo-political factors
- Greater Radicalisation of Kashmiri youth: Threat of greater radicalisation of Kashmiri youth in the Valley, a transformation that can have serious consequences is also looming large. Kashmir’s Sufi Islam faces a grave threat from these more radical elements.
New threat in Kashmir
IS and its impact: Radicalisation rather than militancy and alienation should thus be seen as a new threat in Kashmir.
The Islamic State of Iraq and Syria, which is a component of the ‘Salafist-Jihadist’ movement, has been steadily advancing eastwards — from civil war-wracked areas of Syria and Iraq to Afghanistan and Pakistan.
It has also carried out some attacks in Bangladesh. The ISIS has certain notions about what it refers to as the Islamic State of Khorasan. This incorporates many areas such as Uzbekistan, Turkmenistan, Afghanistan, Pakistan and north-west India. Kashmir falls within this arc.
If the youth in Jammu and Kashmir become victims of a new Salafised version of Islam, the consequences for entire India would be grave
Conclusion
Radicalisation is happening but India should try to prevent such radicalisation from attaining a far larger dimension, by taking steps to limit the attraction of such radicalist and extremist ideas among the local youth. To merely repeat the ‘mantra’ of alienation as being the result of underdevelopment would cost the country dear.
[3]. Why we must not grudge them a pay hike?
What has happened?
7th Pay commission has recommended that the salary of central government employees should be raised by 24% (approx). Media and several analysts have given their negative reactions to this pay hike.
Author in this article argues that the pay hike at the most is a modest one when comparing the hikes in the private sector and Indian economy can easily absorb the fiscal impact. Moreover, government can’t run without money. Government servants need to be paid and the recommendations of 7th Pay commission (SPC) are indeed for the good.
How SPC arrived at its recommendations?
SPC based its recommendations on the norms laid down by the 15th Indian Labour Conference (ILC) in 1957. The ILC had said that the minimum wage should cover the basic needs of a worker and his family, that is, a spouse, and two children who are below the age of 14.
How SPC has determined the basic needs?
- It has accepted food requirements specified by a famous nutritionist.
- It has added requirements like Provisions for clothing, fuel and lighting, education, recreation, festivities, medical expenses, and housing. There is an addition of 25 per cent to the total of the above to provide for the skill factor (the basic needs having been determined for an unskilled person)
Increase in the pay is modest
Based on these norms, the SPC arrives at a minimum wage of Rs. 18,000 for a government employee. This is 2.57 times the minimum pay in the Sixth Pay Commission. This is the second lowest increase recommended by any Pay Commission since the first one, and it is way below the 54 per cent increase following the last one.
Impact on the government
- Impact on finances: The impact of the pay hike on the Central government (including the railways) will amount to 0.65 per cent of GDP. This is less than the impact of 0.77 per cent of GDP on account of the Sixth Pay Commission.
- Decrease in Pay, Allowances and Pensions: Pay, allowances and pension (PAP) as a proportion of government expenditure has been declining sharply. In 1998-99, PAP was 38 per cent of revenue expenditure. The SPC estimates that this figure has fallen to 18 per cent in 2015-16. So, in financial terms, the workforce in government has been effectively downsized by nearly half over the past 17 years.
- Small size of the core: The ‘core’ of the government is actually very small in India. The SPC substantiates its point by comparing India’s Central government workforce with that of the federal government workforce in the U.S. In 2012, the civilian workforce in the U.S. was 21.3 lakh. In India, the corresponding figure in 2014 was 17.96 lakh.
Is government bound by the SPCs recommendations?
No. Government can opt for higher pay hikes as happened with the 6th Pay Commission.
What is fiscal deficit?
The difference between total revenue and total expenditure of the government is termed as fiscal deficit. Rise in fiscal deficit can give a boost to growth in short term. Why? If the increase in public expenditure made possible by large fiscal deficit is used for productive investment, especially for investment in infrastructure and rural development, it will boost production and help increase employment opportunities in the economy.
Impact on growth
- Higher wages can stimulate a fiscal deficit thereby increasing short term growth
- Sectoral boost: greater income in the hands of government employees could favourably impact sectors such as the real estate, automobiles and consumer goods
[4]. Pressing for space
What has happened?
On November 16, a day marked as National Press Day, three newspapers published blank spaces on their editorial pages. They were protesting against a notice served by the Assam Rifles to the editors of newspapers in Nagaland, warning them on coverage of the banned National Socialist Council of Nagalim (Khaplang). The editors were told they could be violating the Unlawful Activities (Prevention) Act (UAPA), 1967.
Assam rifles’ stand
It points to a clause in the UAPA, under which the press can be made accountable in the interests of the sovereignty and integrity of the country
Press Council of India’s reaction
It has taken suo motu note of the case and served notices to Paramilitary forces & the state government.
Can PCI do so?
Yes. The PCI has the power to review any development likely to restrict the supply and dissemination of news of public interest and importance
The above case raises the question of freedom of speech and the safeguards such freedom requires to do its job in a rightful way.
What should be done to ensure a free press?
Free reportage: Every effort should be made to check the authorities’ use of the law to curb reportage and opinion just because it challenges their line. Sovereignty and integrity of India can be made the grounds to silence the genuine criticism of the government and the security forces by the press.
Other measures: There also needs to be a more broad-based appraisal of other ways and means by which freedom of the press is sought to be restrained, and what remedial measures there should be
[5]. Japan’s counter to China’s Silk Road
Background: Silk Road initiative by China which is a part of the One Belt One Road project has been watched closely by Japan. In response to it, Japan is now ready with its framework to compete on the export of the infrastructural projects.
What is One Belt One Road (OBOR) project?
- Economic land belt: At the heart of One Belt, One Road is the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe
- Maritime road that links China’s port facilities with the African coast, pushing up through the Suez Canal into the Mediterranean.
What is the Silk Road?
The Silk Road is a historically important international trade route between China and the Mediterranean. Because silk comprised a large proportion of trade along this road, in 1877, it was named ‘the Silk Road‘ by Ferdinand von Richthofen, an eminent German geographer.
Increasing Chinese influence
China’s new infrastructure drive has been backed by the,
- Establishment of the $100 billion Asian Infrastructure Investment Bank.
- $40 billion Silk Road infrastructure fund
- Setting up the New Development Bank under the banner of the five-nation forum, BRICS, with an initial capital of $50 billion.
Why the unfolding economic rivalry between China and Japan is good news for India?
Counter to China: Japan’s new activism will allow Delhi to ease some of the perceived threats from China’s growing economic presence in the subcontinent and beyond. Delhi had to join the AIIB, though reluctantly so that it is not isolated by China but when Beijing proposed to develop infrastructure linking sub-continent with China, Delhi was visibly perturbed. Japan could take India out of this situation by providing an economic and infrastructural boost.
What Japan is arguing?
Japan has following arguments,
Quality: Japanese believe their quality of work is much better than China. Their emphasis on quality is clear from the fact that Prime Minister Shinzo Abe stressed on investing $110Million in Asia over next five years to develop quality infrastructure taking a direct hit at China.
Hidden costs: Japan also warns against the hidden costs of Chinese proposals that will come to haunt many of the projects being launched under the OBOR initiative.
Sri Lankan example: There is an ongoing debate in Sri Lanka, where the new government in Colombo has sought to review the terms and conditions of the various mega projects that the Rajapaksa regime had signed with Chinese companies.
Revival of ADB: Japan has refused to join AIIB and it is trying to rejuvenate the Asian Development Bank (ADB). In Kuala Lumpur over the weekend, Abe outlined a plan to liberalise the ADB’s terms of lending.
An experienced customer
In terms of infrastructure development beyond its borders, Japan is an old player at the table as compared to China which is relatively new.
Japanese technology and finance have been at the forefront of building road and rail corridors and airports, including in China.
Japan International Cooperation Agency (JICA) & India
Japan’s overseas assistance arm, the Japan International Cooperation Agency (Jica), has supported many such projects in India, including the Delhi Metro and the Delhi-Mumbai corridor.
Japan is now using its past experience and the development aid to ward off the Chinese drive to expand its economic and political influence in Asia.
India, now in cooperation with Japan can participate in bold new initiatives so that it does not feel isolated or threatened by China’s expansive economic policy
[6]. Cash Transfers: Look before you leap
Background: With introduction of cash transfers to minimise manual intervention, there has been demands to use the same for other government programmes, ranging from food subsidy to conditional transfers like the mid-day meal programme for children. Examples of Brazil and Mexico are given to support this argument.
Usage of DBT for delivery of other government services raises some tricky issues,
- Role of the state: It is the role of state to provide services like education, health etc. If we shift to DBT in these cases, it will tantamount to state withdrawing from its responsibility of providing necessary services to maintain social standards. Where a large number of beneficiaries are involved it is best if the responsibility is left to the state.
- End-usage of cash transfer: If government switches to DBT in case of PDS then there is no guarantee that the same would still be utilised for the purpose of buying food. There might be other necessities in the household that would be fulfilled through the cash. A cash transfer incase of mid-day meal will stop the child from being sent to school, which will affect the future of the household.
Conclusion
It appears that our economy is not yet ready to replace physical delivery of state services with cash, given the large population being covered as well as the low levels of income of those who are accessing the same
Economic Digest
[1]. Bad debts of banks at unacceptable level: Finance Min
What has happened?
Finance minister at a meeting with the bankers to review their July-Sept performance, said that non-performing assets of Indian banks were at an ‘unacceptable’ level but the situation is expected to improve as the government and the central bank were taking corrective steps.
Sectors facing maximum stress
- Iron and steel
- Textile
- Power
- Sugar
- Aluminium
- Construction
Steps by the government
- The government is also in the process of framing a bankruptcy code — aimed to tackle wilful default
- Bankruptcy bill is also going to be tabled in winter session of the parliament. It will increase the banks’ abilities to get failed creditors to exit.
Reforms announced in the power sector will relieve the problems with the distribution companies. Also, highways sector has started moving.
[2]. The need for unifying agricultural markets
Context: Rising food inflation i.e. rising price of food items means that agriculture needs structural reforms instead of random raids on hoarders and the usual export bans.
Creation of a unified agricultural market
NITI Ayog is working on a blueprint for the creation of a unified agricultural market. It is expected to bring about much-needed uniformity in prices across agricultural markets in the country.
Existing system
The present Agricultural Produce Market Committee (APMC) Act forces force farmers to sell their produce only to government-designated mandi.
Shortcomings of this system
- Restrictive in nature: The mandis restricted the economic freedom of farmers even as they were captured by local political elites who rig auctions.
- Rise in prices: Multiple charges levied within the mandis—such as market fees, licensing fees and commission—pushed up prices of agricultural commodities
- Inadequate infrastructure
To deal with the above situation model APMC Acts were circulated within states in 2003 but they have remained mere blueprints.
Karnataka: A model
Karnataka’s Rashtriya e-Market Services Pvt. Ltd (ReMS), a joint venture with NCDEX Spot Exchange Ltd, is a good working example of what the model APMC Act envisaged.
- First, to ensure ease of doing business, it integrated 51 of the 155 main market yards and 354 sub-yards into a single licensing system.
- Second, for improving efficiency and transparency, it introduced automated auction and post-auction facilities (weighing, invoicing, market fee collection and accounting).
- Third, to guarantee quality, examining facilities were made available in the markets.
- Finally, in collaboration with NCDEX, it linked all APMCs in the state electronically, and enabled the discovery of a single state price for every commodity on a single platform
Benefits from Karnataka model
Power to the farmer: It gave the farmer the power to accept, reject and bid the prices for his commodity on the basis of a transparent system.
Increased revenue: It increased the revenues of APMCs,
Other benefits: It helped in effective management of its funds and assets, and curbed corruption.
Central Sector Scheme for Promotion of National Agricultural Market
- In July 2015, the cabinet committee on economic affairs earmarked an amount of 200 for this scheme.
- The scheme seeks to integrate 585 regulated markets in the country through a common e-platform and will also allow access for private markets.
Conclusion
Agriculture is in the state list of the Constitution, and the unified agricultural market can be executed only in collaboration with the states.
The states have already taken the lead in policy innovation, be it labour laws in Rajasthan, land acquisition reforms in Tamil Nadu or land pooling for urbanization in Andhra Pradesh. The Karnataka model of agricultural markets reforms should be seen as a similar case—a state innovation that can guide New Delhi
[3]. What are Foreign Institutional Investors (FIIs)?
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
By: ForumIAS Editorial Team
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