9 PM Daily Brief – 15th December 2015

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

What is 9 PM Daily Brief? Read Here.

---

National

---

[1]. India wants WTO to discuss farm subsidies of the rich

What has happened?

WTO’s Nairobi ministerial is going to be held from December 15^th – 18^th. India has stressed that the meeting should take up discussion on the trade distorting farm subsidies of the rich countries & its impact on millions of resource poor and subsistence farmers around the world, on a priority basis.

What is subsistence farming?

Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families.

Categorization of subsidies as per WTO,

In WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced), red (forbidden).

There is no red box in case of agriculture.

Amber Box: All domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box, which is defined in Article 6 of the Agriculture Agreement as all domestic supports except those in the blue and green boxes. These include measures to support prices, or subsidies directly related to production quantities.

Limits on Amber box: The subsidies are limited to de-minimus level which is,

5% of agricultural production for (1986-88) for developed countries, 10% for developing countries

Blue Box: This is the “amber box with conditions” — conditions designed to reduce distortion. Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit production

Limits: At present there are no limits

Green Box: In order to qualify, green box subsidies must not distort trade, or at most cause minimal distortion. They have to be government-funded (not by charging consumers higher prices) and must not involve price support.

Limits: No limits

Examples: environmental and conservation programs, research funding, inspection programs, domestic food aid including food stamps, and disaster relief

India’s stand is that the developed countries like USA should bring down its Amber box subsidies which distort trade internationally.

Moreover, the de-minimus level which is calculated by the agricultural level of 1986-88 is not ridiculous as the productions have shot up and so have the prices.

 

[2]. Inequality pulls back India

What has happened?

UNDP has released its Human Development Report 2015. Article offers key insights into what the report has to say about India

The report says,

1. For just four per cent of its GDP, India could provide “a basic and modest set of social security guarantees for all citizens with universal pension, basic health care, child benefits and employment schemes
2. Co-operation: The report mentions that governments, society and private sector should come together and play its role in ensuring that during policy formulation needs of every single person is taken care of.
3. Global collaboration: Governments should work on a global scale to guarantee workers’ rights, equality, security and to ensure human dignity.
4. Decline women work-force: Workforce participation rates of women have dropped globally due to fall in these rates in India and China. Women are also less likely to in a leadership position and are likely to earn less than men

India’s rank on HDI

In 2013: 135 out of 188 countries

In 2014: 130 out of 188 countries

Gender differences

If Women & Men in India had their own country then their rank on HDI would be,

Women: 151 out of 188

Men: 120 out of 188 – The average adult Indian male gets twice as many years of schooling as average adult woman.

What is Multidimensional Poverty Index?

MPI measures poverty on 6 deprivation indicators. It considers various criteria for measuring poverty including parameters like, lack of education, access to health etc and supplements the traditional income based indicators.

What is HDI?

The HDI is a composite index meant to compare the well-being of people across countries and was first introduced by the UNDP in 1990. It is calculated as the geometric mean of three indicators: life expectancy, education and national income.

What is UNDP?

The United Nations Development Programme (UNDP) is the United Nations’ global development network.

Headquartered in New York City, UNDP advocates for change and connects countries to knowledge, experience and resources to help people build a better life. It provides expert advice, training, and grant support to developing countries, with increasing emphasis on assistance to the least developed countries.

[3]. Seven charts that show why India’s healthcare system needs an overhaul

 What has happened?

In a paper released in ‘Lancet’, a team of researchers identified seven structural problems in India’s healthcare system

Seven structural problems in India’s healthcare system,

1. A weak Primary healthcare sector: The health services sector has improved but the development is uneven.
   For example: 1 bed for 1833 people in government hospitals in 2015, In 2005 it was for 2336 people. Situation has improved but the improvement is not evenly distributed meaning there is one government hospital bed for every 614 people in Goa compared with one every 8,789 people in Bihar.
2. Unequally distributed skilled human resources: There aren’t enough skilled healthcare professionals in India despite recent increases in MBBS programmes and nursing courses. The survey by Lancet says this shortage is compounded by inequitable distribution of these resources. In community health centres in rural areas of many states, ranging from Gujarat to West Bengal, the shortfall of specialists exceeds 80%
3. Large unregulated private sector: The declining quality of healthcare in government hospitals has resulted in decrease in usage of these hospitals. For example: A survey of NSSO shows a decrease in the use of public hospitals over the past two decades—only 32% of urban Indians use them now, compared with 43% in 1995-96. Moreover, the private practitioners are seldom fully qualified and in most cases they are under-qualified.
4. Low public spending on Health: Public health expenditure remains very low in India. Even though real state expenditure on health has increased by 7% annually in recent years, central government expenditure has plateaued. Economically weaker states are particularly susceptible to low public health investments. Many state governments also fail to use allocated funds. The 14th finance commission recommendations, which will transfer a greater share of central taxes to states, offers an opportunity for the latter to increase investments in health.
5. Fragmented Health Information systems: Like in most facets of life in modern India, getting quality, clean, up-to-date data is difficult in the health sector as well. This is despite the presence of many agencies ranging from NSSO to the Registrar General of India Data is incomplete (in many cases it excludes the private sector) and many a time, it’s duplicated.
6. Irrational use and spiralling cost of drugs: Costs of medical treatment have increased so much that they are one of the primary reasons driving people into poverty. Corruption also increases irrational use of drugs and technology. For instance, kickbacks from referrals to other doctors or from pharmaceutical and device companies lead to unnecessary procedures such as CT scans, stent insertions and caesarean sections, the study said. Several schemes like Jan Aushadhi and Drug price regulatory policies have not been implemented correctly.
7. Weak governance and accountability: In the past 5 years, the government has introduced several new laws to strengthen governance of the health system, but many of these laws have not been widely implemented. The study mentioned inadequate public investment in health, the missing trust and enga
   gement between various healthcare sectors and poor coordination between state and central governments as the main constraints why universal healthcare is not assured in India.

 

---

International

---

[1]. Beijing-Moscow bonhomie the focus of SCO meet

What has happened?

A day-long session of the Shanghai Co-operation Organisation (SCO) is going to be held on 16^th Dec 2015.

What is Shanghai Co-operation Organisation?

SCO is a Eurasian political, economic and military organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. These countries, except for Uzbekistan had been members of the Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001, the members renamed the organisation.

India and Pakistan have been accepted as full time members of the SCO on July 10^, 2015.

India, which has had an observer status for the past 10 years, will technically become a member by next year after completion of certain procedures

Major talking points of the meeting,

• Joining together of the Silk-Road Economic Belt (SREB) and the Eurasian Economic Union
• member countries’ development issues and their economic collaboration

 What is EEU?

An economic union created in 2014 by a treaty signed by Russia, Kazakhstan and Belarus. The Eurasian Economic Union treaty allows citizens of EEU member countries the right to work in any other member country without having to obtain special work permits and is expected to reduce trade barriers among members.

What is SREB?

The Silk Road Economic Belt is the land-based component that together with the oceanic Maritime Silk Road forms One Belt, One Road (OBOR), a Chinese government economic development framework for primarily integrating trade and investment in Eurasia

---

Business & Economy

---

[1]. Markets Make Our Mandis

Context:- Research has found that food riots are most likely to occur when the Food Price Index, compiled by the United Nations Food and Agriculture Organization, rises above 210.  It’s currently 216.

Spikes in grain prices are regularly blamed on oil shocks, droughts and emerging markets’ hunger for meat.

But the real culprit behind this is Financial Speculation.

Role of financial speculation:-

Financial speculation is also responsible for the price fluctuations in grains.

Researchers while trying to build a model to understand price rises were unable to explain the reasons until they added financial speculation as one of the causes of price spikes.

Ideally markets should have the ability to match supply and demand at prices that benefit farmers, while ensuring the greatest number of people can afford to eat. Speculation in grain futures knocks these prices out of equilibrium.

Hunger and revolutions have always gone hand-in-hand, and price spikes are the reasons for the recent food riots around the world.

Recognizing the dangers of food speculation, six European banks — including Commerzbank, Germany’s second largest — removed agricultural products from their commodity funds altogether.

Conclusion:- At a time when the grain harvest is expected to be less than consumption, we can’t afford to gamble with food.

Counter view:- We all need a low-cost supply chain that makes basic foods affordable while benefiting farmers.

And the challenge in the food supply chain is financing current operations and future investment in the cheapest way.

But the stakeholders like traders and farmers cannot support commodity price risks or audacious expansion plans.

How futures market can tackle the issue?

It helps consolidate the supply of capital because the bigger liquidity providers become willing to enter and the market player receives a flow of resources to enhance productivity and scale.

Since a well-hedged business is more confident of income and offers farmers better prices, it directly stimulates farm production.

It has the potential for increasing and stabilising agri-business income and, through this, enabling more rapid growth of an efficient food value chain.

Sticking point:-

The real test of an efficient food supply chain is the ease and availability of people willing to accept its risks.

The larger, older markets in New York and Chicago do this well because they have large numbers of liquidity providers always ready to buy or sell any quantity.

How the liquidity providers benefit?

They profit if they correctly anticipate the direction and timing of price changes.

Arbitrage: – Buying and selling of same or similar stock simultaneously to achieve profit. When the price of one commodity rises and other falls then they sell the costlier good and buy the cheaper one, the difference between the two is their profit.

For more: http://www.investopedia.com/terms/a/arbitrage.asp

Since some are willing to buy sell on the smallest price change, the agribusiness player can enter and exit a market position at an efficient price.

Conclusion:-

If they forecast correctly, prices are stable, and if they don’t, prices are volatile. So, for better price discovery, we need better-informed liquidity providers.

In short, speculators -or, more accurately, liquidity providers -voluntarily absorb market and credit risks for the mere chance (not an assurance) of a profit.

These risks would otherwise fall on producers, merchants, manufacturers and farmers, thereby increasing cost to consumers and lowering returns to farmers.

The presence of speculators in regulated markets reduces the ultimate cost of food production and distribution and, thereby, raises the standard of living in our country.

Futures trading: – http://www.investopedia.com/university/futures/

 

[2]. Trading black money

Context:- The government got a mere Rs 3,770 crore worth of declarations for black money held overseas when it opened a one-time compliance window in October.

The illegal forex outflows for 2013 stood at $83 billion—mostly through under-invoicing exports and over-invoicing import.

It amounts for 4.4% of India’s GDP.

It is also noted that money siphoned out has increased 4.3 times between 2004 and 2013.

So instead of worrying about the past we need to focus on the present and future given that GDP and trade are set to rise dramatically.

Mitigation measures:-

It is important that customs officials have a robust database to compare the value of both exports and imports on a 24×7 basis.

The Indian Customs Valuation Database Project was initiated to develop a real-time, electronic database in respect of goods imported at all customs stations in India.

It provides instant access to the combined data, duly analysed and flagged by the Directorate of Valuation (DoV), to all assessing officers for their use as an effective tool to check under-valuation and valuation fraud so as to safeguard customs revenue

Sticking point:-

As pointed out by the Tax Administration Reforms Commission (TARC) in its report, data management and sharing has been a major problem in the revenue department.

Utilisation of various global platforms and organisations providing important trade pricing data through this window is critical for this exercise.

Best practices around the world:-

Trade data exchange windows in the East African Community, European nations and also trade facilitation agreements, have succeeded in curtailing loss of substantial customs revenue on account of trade mis-invoicing.

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“the Act”) –

The Act levies a tax on any undisclosed foreign income assets and held abroad by a person who is ordinarily resident in India.

Undisclosed foreign assets can include but are not limited to bank accounts, immovable property, jewellery, bullion, shares, partnerships, archaeological collections and art work.

The government ran a one-time voluntary compliance program to allow taxpayers with secret off-shore holdings to come clean.

Previously undisclosed foreign income and assets are taxed at a rate of 30 percent of the fair market value of the assets, while a penalty is imposed at the rate of 100 percent of the tax. The total combined tax rate, including penalties, is 60 percent of the value of the fair market value of the foreign assets

For more: – http://www.india-briefing.com/news/indias-black-money-act-liability-compliance-11224.html/

 

[3]. More of the same

Context:-The report of the sub-group of chief ministers to rationalise the centrally-sponsored schemes was submitted and it has neither received the attention nor has been subjected to critical analysis.

The committee was appointed in March in the aftermath of increase in tax devolution by the 14th Finance Commission (FFC) which reduced fiscal space for the Union government.

The increase in states’ share in the divisible pool of taxes from 32% to 42% so that the states are enabled better to provide public services in their domain in a more satisfactory manner rather than depending on the transfers tied narrowly to specific schemes.

Ideal transfer systems:-

An ideal transfer system should possess the below

General-purpose transfers: – It should be designed to enable the states to provide comparable levels of services at comparable tax rates on the functions assigned to them.

Specific-purpose: – These transfers are required to ensure minimum standards in respect of highly meritorious services with very high degree of externalities.

This implies that the number of schemes for assistance should be very few, the service level in respect of those should be benchmarked, the cost of providing them should be estimated, and the shares of the Union and different states should be worked out such that the prescribed minimum is ensured throughout the country.

Critical analysis of the recommendations:-

The so-called core sector includes education, health, nutrition, women and children, Swachh Bharat, rural connectivity, agriculture, access roads and communication, fisheries, housing, urban transformation, law and order and justice delivery system.

Apart from these ‘core’ sectors, the committee also recommends that the remaining schemes should be pooled into optional schemes.

By coming up with an expanded list of core sectors and stipulating that the existing schemes in these sectors should continue, the committee has missed an opportunity to rationalise the schemes to ensure prescribed minimum standards of public services across the country.

[4]. Fiscal devolution and health care: lessons from the Philippines

Context– The article discusses how decentralization and devolution has benefitted the health sector in Philippines

Lessons to be learned

1. First priority should be responding to the inequity in health
2. We should re-think the department of health budget; poor provinces should get more while rich provinces should give more.
3. The technical capacities of the Centres for Health Development should be strengthened in the following areas: public health care services, planning, information system, human resource development, health financing, hospital operations and management, community and NGOs, inter-sectoral synergy and inter-local government unit (LGU) collaboration and quality assurance.
4. Local government units should be seen as co-equals.
5. It should be recognized that LGUs are heterogeneous in terms of economic, political, historical, cultural, and geo-ecological situations.
6. National and regional budgets should further be decentralized to LGUs with equity as a major factor.

 

[5]. As economy slows, China urges G20 to focus on domestic reforms

Context– China is hosting the G20 summit in 2016 and is also the holder of rotating presidency.

It has set the agenda for the meet by urging countries to spur global economic growth through structural reforms.

G20 leaders had met at Antalya last month and resolved to persist with collective action to lift actual and potential growth of their economies and boost job creation.

The G20 summit mechanism for economic co-operation had evolved in the aftermath of the 2008 financial crisis.

Many countries are suffering from a series of unfavourable factors, including

1. Anaemic global growth
2. Decline in potential output
3. Increasing volatility in financial markets
4. Weakening global trade and investment
5. High levels of unemployment and inequalities

Factors affecting global economy

Protectionist measures:-

China has questioned the significant rise in protectionist measures adopted by countries in trade and investment and the lack of movement on the World Trade Organisation’s (WTO) Doha Development round of talks. G20 nations account for 80 per cent of global trade volumes.

Fragmentation of trade:-

The increase in number of bilateral treaties has resulted in ‘fragmentation in global trade and investment governance regimes, to which G20 needs to respond

Sustainability of growth:-

The expansionary macroeconomic policies mainly focus on managing aggregate demand as the temporary response to the financial crisis.

Without solving the deep structural problems, these policies could not reverse the prevailing trends of slow growth in potential output and productivity, and therefore could barely deliver sustainable economic growth

Delay in reforms:-

China has also said that the prolonged delay in the implementation of reforms in the quota and governance structure at the International Monetary Fund and review of World Bank voting shares ‘jeopardises the credibility of the G20’

G 20:-

The G-20 was founded in 1999 with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.

Doha talks:-

The Doha Round is the latest round of trade negotiations among the WTO membership.

It’s the ninth round since the Second World War and the first since the WTO inherited the multilateral trading system in 1995.

It aims to produce the first major overhaul of the system in the 21st Century. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. The work programme covers about 20 areas of trade.

For more:- https://www.wto.org/english/tratop_e/dda_e/dda_e.htm

 [6]. How deep is India’s poverty?

Context: World Bank (WB) report brought out poverty ratios across countries

Findings: poverty in India in 2011-12 could be as low as 12.4 per cent if we use “modified mixed reference period” (MMRP).

Rangarajan Committee on Poverty Estimates: 29.5%

Why this difference?

The poverty line (PL) used by the Rangarajan committee for India was around Rs 1,105 per capita per month. That translates to $2.44 per capita per day, in terms of purchasing power parity. As such, the WB’s PL of $1.90 per capita per day is only about 78 per cent of the PL used by the Rangarajan committee. The lower PL is the reason for the lower poverty ratio estimated by the WB.

What you need to know?

There are three conclusions from the all-India and state-wise analysis,

First, the rate of decline in poverty ratios for the lowered cut-off( 50 % of Poverty Line to 85% of poverty line) is similar or more than those for the PL or the raised PL (PL < Raised Pl < 125% of PL) .

Second, poverty is concentrated around the PL.

Third, the percentage of population below 50 per cent of the PL is negligible at both all-India and state levels

---

Opinion & Editorial

---

[1]. India-Japan charts Asia’s peaceful rise

What has happened?

Article is about the resurgence of the Indo-Japan partnership vis-a-vis Japanese PM Shinzo Abe’s 3 day visit to India.

Author says,

• After the Pokhran test, Japan imposed sanctions on India and throughout 90s the Japanese thought of India as an inhospitable territory for doing business.

So, what has brought about a change in Japanese outlook?

Two things made Japan wake up to the India opportunity,

1. First, the fact that countries like South Korea began to overtake Japan in the Indian market.
2. Second, the emergence of China as the world’s second-biggest economy, overtaking Japan.

 The increasing partnership

• The India-Japan Vision 2025 statement jointly issued by both leaders in New Delhi last week is the most comprehensive statement of long-term bilateral engagement defined by shared interests and values.

 Issues resolved during Japanese PM’s visit

1. the agreement on peaceful uses of nuclear energy ends years of painstaking negotiations, delayed both by the Fukushima nuclear tragedy in Japan and India’s own confused legislation of a nuclear liability law
2. India’s decision to agree to “tied aid”, enabling Japanese funds to finance Japanese investment, especially in infrastructure and high-speed railway projects.
3. India’s willingness to promote Japanese industrial townships aimed at making India a more hospitable destination for Japanese business.

 What is tied aid?

Tied aid is foreign aid that must be spent in the country providing the aid (the donor country) or in a group of selected countries. A developed country will provide a bilateral loan or grant to a developing country, but mandate that the money be spent on goods or services produced in the selected country.

Economic co-operation

1. While Japan is a member of the U.S.-led Trans-Pacific Partnership (TPP) and India is not, both countries are engaged in creating a Regional Comprehensive Economic Partnership (RCEP) and Japan has agreed to support India’s case for membership of Asia-Pacific Economic Cooperation (APEC), even as the U.S. continues to drag its feet over this.
2. Running parallel to China’s One Belt One Road (OBOR) initiative Japan and India can build road and rail connectivity across the Eurasian landmass. In the joint agreement Japan has assured of Japanese funding of India’s own “belt-and-road” connectivity projects across Asia.
3. Promoting Act East policy: Japan has also agreed to promote India’s Act East policy by developing and strengthening infrastructure that aids in connectivity within India and also of India with other countries in the region

What is One Road One Belt initiative?

It is a development strategy and framework, proposed by People’s Republic of China that focuses on connectivity and cooperation among countries primarily in Eurasia, which consists of two main components, the land-based “Silk Road Economic Belt” (SREB) and oceangoing “Maritime Silk Road” (MSR). The strategy underlines China’s push to take a bigger role in global affairs, and its need to export China’s production capacity in areas of overproduction such as steel manufacturing

What is Trans-Pacific Partnership?

The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries concerning a variety of matters of economic policy, which was reached on 5 October 2015 after 7 years of negotiations. The agreement’s stated goal had been to “promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty in our countries; and promote transparency, good governance, and enhanced labour and environmental protections.

[2]. A shift from style to substance

Context: In this article, author takes a look at the focus areas of the foreign policy under PM Modi during the first half of 2015.

Author says,

1. Asian solidarity: The foreign policy interventions of PM Modi during this time indicate an attempt to establish Asian solidarity as a key theme of his agenda.
2. Key areas: The interventions of PM Modi indicate key areas where PMO is likely going to invest its interest in. Cyber-policy is one such theme, reflected in nearly a third of all of his speeches. At intergovernmental venues like ASEAN, BRICS or the G20, Mr. Modi has highlighted the importance of securing “cyber networks” from state and non-state actors. Raised issues of ‘data privacy and security during his visit to Silicon Valley
3. Themes of trade and energy: Trade partnerships are a major theme in Mr. Modi’s interventions. He has repeatedly called for an “early conclusion” of RCEP, while acknowledging the existence of the Trans-Pacific Partnership (TPP) agreement. At the G20 summit in Antalya, he asserted this clearly, warning that regional agreements “should not lead to a fragmentation of the global trading system
4. Renewable energy: Renewable energy is another area of priority as PM constantly talked about the 175GW solar energy target that India has set for itself.

Author says that these foreign policy themes are closely connected to three initiatives of the Indian government:

1. The Technology Facilitation Mechanism,
2. A Comprehensive Convention on International Terrorism,
3. The International Solar Alliance

 

[3]. Cautious co-operation with Japan

Context: Author in this article states the mutual benefits India and Japan’s partnership will bring to both the nations but at the same time has cautioned that India should be wary of aligning itself to a specific bloc

Author says,

• Indo-Japan’s resurgent partnership is going to benefit both India and Japan. How?

For India:

(a). Despite India being one the world’s largest economies, it accounts for only about 1 per cent of Japan’s imports, exports and direct investments abroad. The proposed bullet train link between Mumbai and Ahmedabad, which will have access to a soft Japanese loan of $12-15 billion at a concessional interest rate of 0.1 per cent, will cement economic cooperation further

(b). The civil nuclear cooperation deal, after five years of talks, marks a complete reversal of the policy Japan adopted towards India after the Pokhran nuclear tests in May 1998. Tokyo, which considers itself a champion of non-proliferation, had suspended much of its aid after India’s nuclear test. The deal, however, can be seen as a Japanese seal of approval to India’s status as a nuclear-armed state.

• Enhanced economic and energy cooperation will benefit both countries. Japan has capital and skill whereas India has huge untapped potential. What they need is a clear road map, which, as the recent official exchanges show, is in the works.

A cautious approach

Author cautions India that in the present circumstances where USA and Japan are looking to contain China’s progress by trying to swing India towards them, a cautious approach is needed. Mr. Abe had earlier written about the strategic need to forge a “democratic security diamond” with the U.S., Australia and India

Conclusion

India should build strong ties with each power, instead of aligning with any particular bloc. The country will gain more from everybody’s rise rather than joining some geopolitical alliance that is not in its primary interest.

[4]. A postscript on NJAC

Context: Author throws light on the burning issue of NJAC, the appointment of judges.

What is collegium system?

Under this system, a body of senior apex court judges headed by the Chief Justice of India selects persons and recommends their names for appointment as judges.

The Supreme Court of India’s collegium system, which appoints judges to the nation’s constitutional courts, owes its origin to, three of its own judgments which are collectively known as the Three Judges Cases

Criticism of Collegium system,

• Lack of transparency: No information is given as to how judges are appointed and there is no accountability either. To remedy this, the Court will have to open out information on the procedure and criteria for appointment. There should be no secrecy about the names under consideration

Suggestions for improvement

1. a method should be devised to show that information in support of candidature is false or flawed, or that disqualifications exist, and these objections should be duly considered
2. A high-level Screening Committee can go into the recommendations and objections
3. Suggestions for appointment need not come from senior judges only; other judges, the Bar, and the legal academic community, as well as retired judges should also be able to come up with names for consideration.
4. Presence of civil society in the screening and recommendatory body
5. The involvement of the Law Minister should not be ruled out either; placing him as a permanent ex-officio invitee to the collegium will enable his views to be made known
6. Under the current Memorandum of Procedure, the government can reject a name sent by the collegium, but if the latter reiterates it the appointment must go through. If this is to be retained, it ought to be accompanied by the requirement that both rejection and reiteration should be accompanied by reasons to be made public

Author expresses concerns that ending collegium might open doors of political influence over judiciary.

Conclusion

Author concludes by asking judiciary to do not wait longer and restore confidence as in-efficacy of internal methods like collegium might lead to external ones like NJAC

[5]. A long way from Rio

Context: Author explains the Paris Agreement that was signed recently at COP21.

Paris agreement consists of two parts

1. Decision: A decision of the Conference of Parties (CoP) to the UN Framework Convention on Climate Change (UNFCCC), which is non-binding
2. Agreement: A Paris Agreement, which when signed and ratified will constitute a legally binding agreement.

What is legally binding in the agreement?

It establishes a “pledge and review” system, whereby countries are committed to offering voluntary climate change actions that would then be subject to periodic (in this case, five yearly) reviews, but with no penalties for not achieving these voluntary targets

Author says, that the idea of historical responsibility of developed nations to do more to mitigate the climate change is absent in the Paris agreement.

CBDR, enough?

Despite India being successful in including CBDR to the Paris agreement, but there is no legal distinction between developed and developing countries as per Annex I and non-Annex I countries, respectively, as under the convention.

Differentiation principle diluted

1. The principle of Differentiation is also time bound wherein all the countries under Paris agreement are expected to peak their emissions as soon as possible
2. Provision for a common measuring benchmark: There is also a provision for creating a common benchmark tool to measure progress of developing and developed countries. This also dilutes the differentiation principle.

Paris agreement: Outcome better than anticipated

1. The fact that the agreement was approved by all the 190 countries lends to it a legitimate character which is necessary for fighting climate change
2. Progression: The principle of progression is embedded in the agreement. It means that there cannot be any backsliding from targets already submitted. Targets after the review would be higher than the current NDCs

Author says that as far as India is concerned, it achieved victory in ensuring that the principle of CBDR is not diluted and that the concept of equity is not eliminated like ‘historical responsibility’.

Now, India should shift its focus on creating systems, mechanism and procedures for implementing the Paris agreement. This will include the methodology for measuring net emissions during the five-year review and the nature of the flexibility that is available to developing countries in this regard.

[6]. A new way to Act east

Context: Author asserts the growing Indo-Japan partnership while stressing on the Partnership for Quality Infrastructure (PQI) initiative of Japan

What is PQI?

Prime Minister Abe announced the “Partnership for Quality Infrastructure” at the 21st International Conference on The Future of Asia, on May 21, 2015.
In order to meet the massive infrastructure demand in Asia, Japan, in collaboration with the strengthened Asian Development Bank (ADB), will provide approximately USD 110 billion for “quality infrastructure investment” in Asia over the next five years.

Four pillars of PQI

1. Expansion and Acceleration of Assistance through the Full Mobilization of Japan’s Economic Cooperation Tools
2. Collaboration between Japan and the Asian Development Bank (ADB)
3. Measures to double the supply of funding for projects with relatively high risk profiles by such means as the enhancement of the function of the Japan Bank for International Cooperation (JBIC)
4. Promoting “Quality Infrastructure Investment” as an international standard

In the joint statement issued at the end of 3 day visit of Japanese PM Shinzo Abe, he pointed towards the synergy between India’s Act East Policy and Japan’s PQI initiative.

Author says,

1. PM Shinzo Abe is trying to pitch PQI as an alternative to the China’s ambitious OBOR initiative.
2. The vastness of China’s OBOR initiative can be equalled by Japan’s longer experience in supporting infrastructural development in other countries
3. India has watched warily as Xi laid out bold plans to develop the $46 billion China-Pakistan economic corridor running across the Karakoram Mountains to the Arabian Sea. India has prepared a proposal to build the so-called K2K corridor that connects Kolkata in the eastern subcontinent with Kunming in China’s south-western province of Yunnan through Bangladesh and Myanmar. New Delhi has also been nervous about Beijing’s rapid modernisation of transport infrastructure in Tibet and its plans to extend road and rail networks into Nepal and Bhutan
4. Abe’s agreement with Modi on building a high-speed railway system between Ahmedabad and Mumbai is a big boost to the Japanese strategy to promote infrastructure exports
5. Big difference between China’s and Japan’s plans is that through OBOR and other initiatives China wants to connect its economy to India’s neighbours while Japan on the other hand side wants to connect India to its neighbours and beyond thereby promoting integration

Conclusion

Author concludes by pointing out that if India is serious for a joint strategic co-operation with Japan then why it is putting taxpayers money in the Beijing-led financial institutions like BRICS-bank and Asian Infrastructure Development Bank (AIIB). It would be better to pool its limited resources in the Japanese PQI.

[7]. Stronger together

Context: In the light of recent visit of Japanese PM to India, author reiterates the resurgence of the strong bilateral co-operation between the two countries.

The landmark breakthrough in the bilateral negotiations is,

1. Civil nuclear cooperation agreement that India and Japan have signed after a half-decade of negotiations. The nuclear deal will facilitate building of nuclear power plants with Japanese reactors and also ease nuclear co-operation with the West considering Japan’s stakes in US firms GE and French firm Areva. This agreement has been signed despite Japan’s resolve of not engaging in nuclear trade with non-NPT nations. The resolution of this issue indicates the rise of new level of partnership and co-operation
2. New Delhi and Tokyo have signed a deal on defence equipment transfer and technological cooperation, as well as a pact on security measures to protect military information. Japan will also, henceforth, regularly participate in the India-US Malabar exercises.
3. In the joint statement both the nations mentioned South China Sea and called upon all the nations to avoid unilateral action

Conclusion

Japan and India are both readying themselves to counter the growing Chinese influence in Asia through increased strategic collabo

By: ForumIAS Editorial Team