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ETHICS

TOPIC:GeneralStudies4
CorporateGovernanceandEthicalGovernance

CorporateGovernance:TATASONSIssue

WhatisCorporateGovernance?

Corporategovernanceisthesystemofrules,practicesandprocessesbywhichacompanyisdirectedand
controlledandinvolvesbalancingtheinterestsofacompanysmanystakeholders,suchasshareholders,
management,customers,suppliers,financiers,governmentandthecommunity.Corporategovernancealso
providestheframeworkforattainingacompanysobjectivesandhenceencompassespracticallyeverysphereof
management,fromactionplansandinternalcontrolstoperformancemeasurementandcorporatedisclosure.
VariousinitiativeshavebeentakeninthepastbytheMinistryofCorporateAffairs(MCA)andSecuritiesand
ExchangeBoardofIndia(SEBI)forcorporategovernance.Asaresult,SEBIcameoutwithproposedchanges,
shownintheimagebelow,tobemadeintheorganisationstoensureeffectivecorporategovernance.

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TherecentspatbetweentheTATASonsandtheoustedchairmanCyrusMistryhasonceagainbroughtthe
corporategovernancecompliancesbyvariouscompaniesunderthescanner.Unfortunatelyfingerspointingtowards
areputednamesuchasTATASonsraisesconcernsaboutthelevelofcompliancesinsmallerorganisationswitha
lesserreputation.
Ownershipv/sManagementChallenges
Themainintentbehindeffectivecorporategovernanceisdifferentiationbetweenthemanagementand
shareholders.Thisisdonetoallowautonomytothemanagementandpreventdominancebytheowners.
TheBoardofDirectorsarethedirectstakeholdersinfluencingcorporategovernance.Directorsareelectedby
shareholdersorappointedbyotherboardmembers,andtheyrepresentshareholdersofthecompany.Theboardis
taskedwithmakingimportantdecisions,suchasappointments,compensationanddividendpolicy.
Boardsareoftencomprisedofinsideandindependentmembers.Insidersaremajorshareholders,foundersand
executives.Independentdirectorsdonotsharethetiesoftheinsiders,buttheyarechosenbecauseoftheir
experiencemanagingordirectingotherlargecompanies.Independentsareconsideredhelpfulforgovernance,
becausetheydilutetheconcentrationofpowerandhelpalignshareholderinterestwiththoseoftheinsiders.
Withrespecttothistheclearmessageoutinopen,asaresultoftheTATASonsfiasco,isthatwhoevercontrolsthe
dominantshareholdingisresponsiblefortakingmajordecisionsandhasastronginfluenceonthosedecisions.
Suchshareholdersactasalternativepowercentreswithoutanyaccountabilityorformalresponsibility.Indiaisfullof
familycontrolledcompanieswithdominantshareholdingsandhenceitbecomesreallydifficulttohaveaBoardthat
candisciplinethedominantshareholdersfromwhomtheBoardderivesallitspowers.Powerinacompanydepends
upontheblockofsharesyoucontrolandhencethetheconceptofshareholderdemocracyseemsfictitious.
Additionally,theTATAsonsissuealsobringintheopenthefactthetheguidelinesoncorporategovernancemerely
serveasafigleaftohidethebruterealityoftheexerciseofpowerwithincompanies.Thecomplianceofthese
guidelinesisnottakenveryseriouslyandmanipulationsarecarriedout.Practicaladherenceiswaybelowthe
theoreticalcomplianceasshowninauditreportsetctomisleadthestakeholders.
Windowdressingisdoneandrosypicturesaredrawnthroughreportsandawardsoncorporategovernance.
However,thetruepictureisnotsobeautifulasitseemsaswitnessedinvariousrecentcasessuchastheSatyam,
SaharaandtheShardhascam.
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AlltheseproblemsarenotendemictoIndiaaloneandplagueeventhemostadvancedeconomiessuchastheUS.
InrecentinstancesbanksintheUShaverushedtopayhugefinestotheauthoritiessothattheycouldavoid
prosecution.

CorporateGovernanceinIndia
Stepshavebeentakenbyregulatorsovertheyearstoaddressabusesofpower.Thestandardsofcorporate
governanceneedtobeextremelyhighandtheinterestsofminorityinvestorsneedtobesafeguardedinthebest
possiblemannertoattractinvestmentsfromacrosstheworldandpreventanyuntimelyflightofcapital.Fortunately,
the2016EaseofDoingBusinessreportfromtheWorldBankranksIndiaatNo.13intheworldontheprotecting
minorityinvestorsyardstick,whilewerankalowly130ontheoverallindex.
Thefocusoftheregulatorsongovernancestandardsrequirescompaniestomakeaconcertedefforttoascertain
complianceandpresentsanopportunitytoalignwiththeglobalstandardsanddeliverincrementalgainsfortheir
stakeholders.Theseeffortshavebeengoingonsinceabouttwodecadesasrepresentedbelow:

Connectingthedots:
Explainwithexampleshowpoorcorporategovernancereflectsupontheethics,humanvaluesandattitudeof
thoseresponsibleforrunningandmanagingcorporateorganisations
Definecorporategovernance.Discussitssignificanceandvariousmeasurestakentoensureeffective
corporategovernanceinIndia.

ECONOMY/ENERGY

TOPIC:

GeneralStudies3
Infrastructure:Energy
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,development
andemployment.
GeneralStudies2
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Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.

TurningIndiaspowersurplusintoaboon
Forlastfewmonths,lowconsumptionofpowerinthecountryhasresultedinlowplantloadfactorand
surplusofcoalatthepitheadandatthepowerplants.
Thisisbecauseagoodmonsoonhasloweredagriculturalconsumptionofelectricityandcheaperhydropower
hasreplacedthermalpowerinthegridasbountifulrainsensuredamplewatersinthereservoirs.
Duetothisfactorsanditsimplications,theexpertsandanalystshavebeenquestioningtheefficientutilisation
ofadditionalcapacitythatisbeingaddedtothegrid.
ThisissobecauseIndiaisaddingcapacity,notonlyinthetraditionalthermalandhydrobutalsointhe
renewablesector,inwhichthereisatargetof175GWofcapacityby2022.
Challengesandsolutions
Percapitaavailabilityandreliability
Indiaspercapitaconsumptionremainsamongthelowestinthedevelopingworld.Thisreflectsthatpower
consumptionisgoingtogrowinthefutureandthecurrentsituationshowslowpurchasingpowerofthe
consumersatpresent.
Apartfromlowpurchasingpower,thereareconnectivityandreliabilityissues.These,thougharebeing
soughttoaddressatafastpace.(GVAshavebeenappointedformonitoringofnewconnections)

Discoms
Thewoesofdistributioncompanies(discoms),whicharenotbuyingpowerbecauseoftheirdebtsand
inabilitytorecovercostsfromconsumers,arebeingovercomethroughtheUjwalDiscomAssuranceYojana
(UDAY).
Viabilityofplants
Alowplantloadfactorthreatenstheviabilityofpowerplants.Thus,Indiahastobringoutcreativesolutionsto
dealwiththecurrentsituation.
Indiaisnottheonlycountrywhichfacessuchchallenges.Manycountrieshaveovercomethissituationby
havingcompetingfacilitiesintwothreefuels,withthegridswitchingoverfromonefueltoanother
dependingonthepriceofthefuelandthemarketdemand.
Coalcompeteswithfuelssuchasnaturalgasandnuclearandtheconsumerisoffereddifferentoptions.
IncountrylikeIndia,wherecapitalhasothercompetingdemands,investmentinthepowersectorcouldbe
mademoreprofitablewiththeadoptionofaslewofmeasuresthatincreasetheconsumptionofelectricityas
itofferselasticityofuseandcouldbeutilizedtoreplacefuelsinothersectors.
Examplesofcountrieswithbetteruseofpower
Ecuador
Ecuadorhasinvestedinhydropowerinthelastfewyearsduetowhichithasbecomepowersurplusnow.

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Itisefficientlyusingtheexcesspowerbyreplacinggasstoveswithelectricstovesforcookinginhouseholds.
Thisbringsdowntheconsumptionofnaturalgaswhichitimports.
Indiacantakeacuefromsuchmodelsandencouragetheuseofelectricityforcookingduringthesurplus
seasonforwhichtherecanbeaspecialtariffwhichcouldbelowerthancomparativeLPGprices.
Inaddition,electricitycanreplaceimportedkeroseneandthushaveapositiveimpactonoverallLPGand
keroseneimports.
China
IncityofGuilin,China,majorityoftwowheelersbeingusedareelectricvehicles.ThisisbecauseChina
restrictstheuseoftraditionaltwowheelersinseveralcitiesinordertoreducepollution.
Asaresult,Chinaisthegloballeaderintheelectrictwowheelersmarket,withanestimatedstockof200
millionunits.
Indiaalsohasatargetofhavingsixmillionelectricvehiclesby2020.Thisshouldbeincreasedandpower
companiescouldbeguidedtotakeaspecialinterestintheirpromotion.
CitieslikeAhmedabad,VadodaraandPune,whichareknownfortheirlikingfortwowheelers,couldbecome
thehubsfortheadoptionofelectricvehicles.
Forthis,electricchargingfacilitiesforvehiclescanbeprovidedinmajorcitiesandonhighways.Lowertariff
couldbeofferedforoffpeakrechargeofvehicles.
Again,Chinahasencourageduseofelectricbusesinpublictransportwithitbeingagloballeaderwithafleet
of1,70,000buses.
InIndia,Smartcitiesandcitiesplannedundertheproposedindustrialcorridorsshouldincorporate
infrastructureforelectricvehiclesintheirplans.
Also,IndianRailwayscouldfasttrackitselectrificationprogrammesothatitlowersitsdieselconsumption.

Conclusion
Ifthesemeasuresaretaken,theywouldhavemanybeneficialeffects.
AdoptionofelectricityforcookinginsteadofLPG,LNGorkerosenewouldlowerourimportsofthesefuels.
Similarly,ajumpintheuseofelectricvehicleswilllowertheriseindemandofpetroleumimports.Thiswill
helpinmeetingtheParis2015commitments.
Fasterelectrificationmayevenlowerconsumptionofrefinedpetroleumproducts,therebycontributingtothe
targetofloweringimportsoftheseproductsby10%setbyPrimeMinister.
LowerdemandbyIndia,thefourthlargestimporterofcrudeoil,willhaveasalutaryeffectonthemarketprice
ofcrudeoilandwillcontributetoenhancingtheenergysecurityofthecountry.
Indiahasmadegoodprogressinsellingpower.
In2013,Indiastartedexporting500MWofpowertoBangladesh,whichhasbeenaugmentedfurther
bycommencingexportofanother100MWfromPalatana,Tripurain2016.
PowerexportstoNepalaresettoincreasefollowingthecompletionoftheconstructionofthe
MuzaffarpurDhalkebartransmissionline,oncethetransmissioninfrastructureontheNepalesesideis
strengthened.
InthecaseofSriLanka,anunderseacablewillallowIndiatoexportpowertothem.

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Indiahasmadeagoodbeginningbycommencingexportof3MWtothebordertownsofMyanmar,
whichcouldbescaledupbyconstructingabettertransmissioninfrastructure.
ApanAsiaPacificgridinthelongrunwillhelpbalancethesurplusandshortagesintheregion.
Surpluspowercouldlowerthedemandforimportedpetroleumproductsandincreasetheconsumptionof
domesticallyproducedcoal.175GWrenewableenergytargetby2022willbeawelcomeadditiontoour
energymixandhelpreplacefossilfuelfurther.
Thus,thepowersurplussituationcanbeconvertedintoaboon.
Connectingthedots:
Indiaisgoingtobeapowersurpluscountry.Howcaniteffectivelyuseitssurplusasset?Substantiate.
PowerinIndiaisgoingtobesufficientforallofitspopulation.Whatarepossiblechangesthatcan
domesticallyincreaseuseofpowerandsimultaneouslymadeaffordable?Discuss.

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IASbabasDailyCurrentAffairs2ndNovember,2016|IASbaba

IASbabasDailyCurrentAffairs2ndNovember,2016
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Archives

HUMANGEOGRAPHY

TOPIC:GeneralStudies1
Povertyanddevelopmentalissues,urbanization,theirproblemsandtheirremedies

WhatisUrbanisation?
TheCensusofIndia,2011definesurbansettlementas,alltheplaceswhichhavemunicipality,corporationand
cantonmentboardornotifiedtownareacommittee.Additionally,alltheotherplaceswhichsatisfyfollowingcriteria:
1.Aminimumpopulationof5000persons
2.Atleast75%ofmalemainworkingpopulationengagedinnonagriculturalpursuitsand
3.Adensityofpopulationofatleast400personspersquarekilometre
UrbanisationinIndia
Indiasurbanpopulationincreasedfrom217millionto377million,andthisisexpectedtoreach600millionby2031
40percentofthecountryspopulation.Afterindependence,urbanizationinIndiaisincreasingatveryhighpace,
butatthesametimetherearesomeproblems,whicharecastingashadowonthepotentialofurbanareasfor
povertyalleviationandgrowthofthenation.Eventhoughurbanareasarereferredtoasenginesofeconomic
growththeyarebecomingbarriersforbalance,equitableandinclusivedevelopment.
FeaturesofUrbanisationinIndia
UrbanisationinIndiahasthefollowingcharacteristics:
Occurringonthefringeofcities,
Occurringinanunplannedmanner,
Outsidethepurviewofcitycodesandbylaws,
Shortageofhomes,
Inadequatedrinkingwater,sanitationandwastemanagementfacilities
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Imposinghighcosts,and
Characterisedbyagapinurbaninfrastructureinvestmentinareasofroadandtrafficsupport

Urbanisation,RuralTransformationandPovertyReduction
Withtheincreasingurbanisationandneedformoreurbaninvestment,thequestionariseswhetheranincreasein
urbaninfrastructureinvestmentwouldcompromiseontheruralinvestment.Thisiscriticalbecauserural
transformationhasasignificantimpactonthepovertyandgrowthaswell.
InternationalMonetaryFund(IMF)initsrecentstudyhasanalysedtheimpactofurbanisationonruralpovertyin
twocategories:
1.Location:Underthiscriterionitconcludesthatruralpovertyreducesduetochangeinresidence.
2.EconomicLinkages:Asperthiscriterion,ruralpovertyagainreducesasaresultofgrowthofurban
population.

Urbanpopulationgrowthimpactspovertyinnearbyareasinthefollowingmanner:
Consumptionlinkages,
Ruralnonagriculturalemployment,
Remittances,
Ruralland/labourratios,
Rurallandpricesandconsumerprices
Urbanisationhasleadtoareductioninpovertyinsurroundingruralareasby1325%.However,thishasbeenmuch
lessthantheimpactofruralbankbranchexpansion.Hence,thispointstocertainflawsintheIMFreportwhich
examinestheroleofurbanisationinisolationofruraltransformation.
Ruraltransformationhasamultiplierandamoresignificanteffectonpovertyreductioninthefollowingways:
Agriculturemodernisation:Developmentandgrowthinagriculturereducesruralpovertyandoverallpoverty
becausethedemandforchemicalfertilisers,pesticides,mechanisation,processedseedsorfuelsrisesand
thisinturnpromotesnonagriculturalproduction.
Increaseinincome:Higherincomesinruralareaspromotedemandforprocessedfoodsproducedmainlyin
urbanareasandgenerateemployment.
Pricereduction:Decreaseoffoodpricesduetoagriculturalgrowthresultsinhigherfoodsecurityandpoverty
reductioninbothruralandurbanareas.
Wagereduction:Decreaseoffoodpriceslowerstherealproductwageinthenonagriculturalsector,raising
profitabilityandinvestmentinthatsector.
Toensurebestresultsintermsofpovertyreductionandgrowth,ruraltransformationcantakeplaceinways
mentionedbelow.Thesestepswhichwillnotonlyraiseproductivityandlivingstandardsbutalsocurbruralurban
migrationare:
Accesstonewtechnology,
Availabilityofcreditoneasytermsandmarkets,
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Strengtheningofextensionservices,
Creationofruralinfrastructure,
Skilldevelopment
Creatingmoreremunerativeopportunities

AlternativeCategorisationandStudy
Afurthercategoricalwayofconductingsuchastudycouldbetoexamineoverallgrowthandpovertyeffectsofboth
agricultureandnonagriculture,takingintoaccountthelinkagesbetweenthem.
Thenonagriculturalsectorincludesbothruralnonagriculturalandurbanactivities,wedisaggregatetheruralareas
intoagricultureandnonagriculturesubsectors,andtheurbanareasintosmalltowns,secondarytownsand
metropolitancitiesinordertocomparetheireffectsonpoverty.
Withtheshiftofaneconomyfromthelowincometothemiddleincomecategory,thenatureofagriculturealsoshifts
fromsubsistencefarmingtocommercializedandmarketfarming.Itthendevelopsacloserlinkagewiththenon
agriculturalsector.Impactofagriculturalgrowthrateistwiceaslargeasfromnonagriculturalgrowthandhasa
muchbiggerpovertyreducingeffectthannonagriculturalgrowth.
Asaresultofstudiesithasalsobeenfoundthatthe(proportionate)povertyreductionislargestforagriculture.
ContrarytotheWorldBanksconclusion,wefoundthatagriculturescontributiontopovertyreductionisfivetimes
morethanthatofmetropolitancities.

Conclusion
Adefinitiveconclusionaboutpublicinvestmentprioritieswilldependonthepatternofruraltransformationand
urbanisationbutthereisnodoubtthatruralareasdeservegreateremphasis.Ifurbanareasaretheenginesof
growth,thenruralareasarethosecompartmentswhichifnotontrackcouldderailtheentiregrowthand
developmentprocess.
Connectingthedots
Ruralgrowthanddevelopmenthaveanequalroletoplayinthenationalgrowthandpovertyalleviation.
Discuss
DefineUrbanisation.HighlighttheproblemsthathavebeenaconsequencesofrapidurbanisationinIndia

NATIONAL

TOPIC:

GeneralStudies2

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Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.
GeneralStudies3
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,development
andemployment.
Effectsofliberalizationontheeconomy,changesinindustrialpolicyandtheireffectsonindustrial
growth.

Indiascompetitivenessandchallengesahead
The201617GlobalCompetitivenessReportranksIndia39thamong138nations
Thisisa16placejumpfromyearagolevels.Thus,Indiasprogressonglobalcompetitivenessisimpressive.
Thereportassessesthecompetitivenessofanationbasedonitsmacroeconomicenvironment,strategies
employedtopromotegrowthsuchasinstitutionsandpolicies,andtheabilityofenterprisestocreateand
sustainvalue.
Thenatureoftheeconomyandgrowthmeasuresinfluenceenterprisecompetencytocompeteand,inturn,
enhancenationalproductivityandprosperity.
TheeconomicdevelopmentinitiativeslaunchedbyNDAgovernmentseemtobepayingoffslowly.
However,Indiaremainsafactordriveneconomycharacterisedbyanunskilledworkforce,andheavyreliance
onagricultureandextractiveindustries.
Lackofcomplexityandtechnologicalsophisticationinitseconomylimitsitsabilitytoofferhighvaluegoodsto
globalmarkets.
In2015,Indiaexported$262billioncomparewithChinas$2.3trillionofwhich,overonehalfwas
commoditiesandlowtechgoods(mineralfuel,clothing)whilejust15%wasengineeredgoods(autos,
appliances).
Notably,Indiasshareinglobalmerchandisetradehasremainedstagnantat2%overthelastfiveyears
comparedtoChinas,whichhasgrownfrom10to14%.

Manufacturingsector
Theneweconomicdevelopmentinitiativeshopetorectifythelesscontributionofmerchandisedtrade
throughtargetedprogrammesthatwouldequipIndiaforastrongerperformanceinglobaltradeand
competition.
AmongthemisMakeinIndia,alargescalecampaigntoattractforeigndirectinvestmentstothe
manufacturingsector.Theseinvestmentsaredesignedtocreatejobsinmassivenumberstoabsorbthe
countrysburgeoningworkforce.
Moreimportantly,theyareexpectedtomoveIndiauponthedevelopmentladdertotheefficiencydriven
stagedemonstratedbyhighvolumediversifiedmanufacturingandtheabilitytogloballymarketawide
rangeofvalueaddedconsumerandindustrialgoods.
In2015,IndiaemergedasthetopdestinationforFDIsandthereareindicationsthatitwillcontinue.
However,onlythemanufacturingassetswillnotpropelIndiatotheforefrontofglobalmerchandisetradeand
competition.Itwillneedaworkforcethathascomplementaryindustrialskills.
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Indiasworkforceof500millionismostlyunskilled80%oftheworkforcehasnomarketableskills
(governmentestimates).
Itwasalsorevealedthatlessthan10millionarevocationallytrainedasagainst150millionneededby2022
totransitionIndiaasaleadingmanufacturer.
Thus,undoubtedly,itisanuphilltaskforwhichIndiahasformedaSkillDevelopmentAgencytospearhead
implementation,jointlywiththeprivatesector.
Challengesandwayahead
Thoughthereisprogresstowardsthegoal,butthereislukewarmenrolmentinshorttermvocationaltraining
andapprenticeshipdespitetheexistenceofanincentiveregime.
ThereasonisthatIndiahasneverbeenabluecollareconomy.Thus,theeducationalaspirationsofIndians
havehistoricallybeencentredonacademicsanduniversityeducation,drivenbyambitionsinthe
administrativeandmanagementcadres.
Andhence,bycontrast,industrialtraininghasgenerallybeenperceivedasunglamorous,evenundignified.
Thus,theclearsolutiontothisproblemliesineducatingIndiathroughinformationdistributionandpublicity
thatdescribesentryjobsinindustryandpathwaystofunctionalandgeneralmanagement.
ThemanufacturingassetsandworkforceskillswillgiveIndiathefoundationtocompetegloballyonawide
rangeofproducts.
However,tobedistinguishedasaleader,Indiamusttransformfromlowskilledcommoditisedproductionto
designingandmarketingsophisticated,proprietarytechnologies.Thus,ithastoemergeasaninnovation
driveneconomy.
Forthis,Indiawouldneedhighlytalentedscienceandengineeringgraduatesandsubstantialinvestmentin
R&D.
WhatiscontrastingthatIndiaisselfsufficientinthedesiredgraduatesbutlacksintherequiredinvestments
inR&Dprojects.
Toputintoperspective,IndiasR&Dspendingof$66billionin2015(0.9%ofGDP)isalmostnothingin
comparisontoChinas$410billionor2.1%ofGDP).Andmoretroublingfactisthatthreefourthsofitcomes
fromthepublicsector.
ThelowprivatesectorparticipationcouldbebecauseoftherelativelysmallsizeofmostIndianfirmsand
consequentlackofscaleeconomies.ThisproblemisselfsolvingastheprivatesectorinvestmentsinR&D
willrisewhenmanufacturinginvestmentswillrise.
Hence,Indiaseconomyasgloballycompetitiveisstillworkinprogress.
Connectingthedots:
Manufacturingsectorisnotgrowingatanexpectedratedespitetheinitiativesandreformsbygovernment.
Whatcanbethereasonsandhowtorectifythem?Explain.
IncreaseinmanufacturingisconsideredimportantforIndiatoestablishitselfasgloballycompetitive.
However,theworkingpopulationseesindustrialemploymentasundignifiedandlowpaid.Howdoyouthink
canthissituationbehandled?Discuss.

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IASbabasDailyCurrentAffairs3rdNovember,2016
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Archives

SOCIALISSUE/WELFARE

TOPIC:GeneralStudies2
WelfareschemesforvulnerablesectionsofthepopulationbytheCentreandStates
andtheperformanceoftheseschemesmechanisms,laws,institutionsandbodies
constitutedfortheprotectionandbettermentofthesevulnerablesections
IssuesrelatingtodevelopmentandmanagementofSocialSector/Servicesrelatingto
HumanResources

Miseriesofacontractlabour

WhatisContractLabour?
Contractlabourgenerallyreferstoworkersemployedbyorthroughanintermediaryorathirdparty.Suchlabour
canbedistinguishedfromthepermanentworkersinfollowingaspects
Absenceofemployeeemployerrelationship
Methodofwagepayment
Nodirectrelationshipwiththeprincipalemployer
Absenceofnamesonthemusterrollofprincipalemployer/establishment
AccordingtoSection2(b)oftheContractLabour(RegulationandAbolition)Act,1970(ContractLabourAct),a
workmanshallbedeemedtobeemployedascontractlabourinorinconnectionwiththeworkofanestablishment
whenheishiredinorinconnectionwithsuchworkbyorthroughacontractor,withorwithouttheknowledgeofthe
principalemployer.
SupremeCourtJudgement
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Inasignificantjudgment,theSupremeCourthasruledthatcontractworkersshouldgetthesamepayas
permanentworkersbecausedenialoftheprincipleofequalpaysforequalwork:
Ledtoexploitativeenslavement,
Isaviolationofhumandignity,and
IsagainsttheprovisionofArticle39(d)oftheIndianConstitution.
Contractworkerssufferbecause:
Theylackjobsecurityandsocialsecurity
Theyaregiveninadequateremunerationfortheworkperformed.
Lackbargainingpower

TradeUnion
TradeunionismisaresultofIndustrialRevolution.Tradeunionsareanassociationofwageearnerstoensure
safeguardingtheinterestsofworkersandimprovingtheworkingconditions.
Variousbenefitsthataccruedduetothetradeunionsareasfollows:
WorkerEmpowerment
Socialismandworkerwelfare
Properregulationofpersonnelmatters
Disputesettlementandgrievanceredressal
Participativedecisionmakingandenhancedbargainingpower
However,thetradeunionmovementinIndiasuffersfromamajorproblem.Contractuallabourisneithergiven
membershipnorvotingrightstowhichmembersoftradeunionsareeligible.Thishappensduetothefollowing
reasons:
GreaterManagementHostility:Workersbelievethatformingaunionwhichincludescontractworkersis
boundtoprovokethemanagementintogreaterhostilitytowardsthem.
ManagementAttitude:Managementshaveusuallybeentotallyagainstdiscussinganyissuesconcerning
contractworkers.
VulnerabilityofContractLabour:Contractualworkersarehighlyinsecureandvulnerablecomparedtoregular
workers.Thechancesoftheirdismissalfromthecompanyforindulginginunionactivitiesareveryhigh.
AttitudeofPermanentWorkers:Permanentworkersthemselvesdontwanttoextendunionmembershipto
contractworkersbecauseataworkplacewithhighnumberofcontractworkers,permanentworkerscouldget
highlymarginalised.

ContractLabourinIndiaProvisionsandChallenges
Indiascontractworkers,withtheexceptionofsomePSUsinselectsectorssuchassteelandcoal,remainboth
heavilyexploitedandlargelyununionised.Eventhoughvariouslegislationsandprovisionsexistwithrespectto
contractuallabour,thereisaneedtoensuretheireffectiveenforcementalongwithadditionallabourreformsto
ensuretheirwelfare.
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PictureCredit:http://img.etimg.com/photo/53257736/1.jpg

TradeUnionAct,1926
UnderTradeUnionsAct,1926(TradeUnionAct),Section2(g)definesworkmenasanypersonemployedintrade
orindustrywhetherornotintheemploymentoftheemployerwithwhomthetradedisputearisesandanyworkman
whoworksinafactorycanjoinaunionofthatfactory.Buttradeunionstypicallyhaveonlypermanentworkersas
members.Thereasoncitedforthisistheabsenceofdirectrelationshipwiththeprincipleemployer.
ContractLabour(RegulationandAbolition)Act,1970
ContractLabourActwasenactedtoabolishcontractlabour.ThisActontheotherhandcementedtheirexploitation
byofferingalegaloperatingframeworktolabourcontractors.Priortothislegislation,temporaryandpermanent
workerscouldmakeclaimsontheiremployerandnegotiateasmembersofthesameunion.ButtheContract
LabourAct,byintroducingadistinctionbetweenanemployerandaprincipalemployer,increasedthescopeof
hiringcontractlabour.Hence,thereisaproposaltodropthewordabolitionfromthenameoftheAct.
WhentheContractLabourActwasenacteditexpresslyprohibitedtheemploymentofcontractlabourforcore
productionwork.Asaresult,workersareshowntohavebeenhiredfornoncorejobssuchascleaningor
gardening.Butoncetheworkerisemployed,heisengagedinproductionworkandthereisnodocumentationto
showthatacontractworkerisactuallyinproduction.

Conclusion
Thereisanurgentimperativetostopthisgrowingexploitationofcontractuallabour.Thesoonercompaniesrealise
thelargerimplicationsoftheirshortsightedapproach,thebetter,notonlyfortheirownsake,butalsoforsocietyat
large.Further,labourreformstoaddresstheaboveconcernsarealsoimportantforthesuccessofMakeinIndia
andforIndiatoclimbuptherankingsonWorldBanksDoingBusinessReport.
Connectingthedots
DiscussvariousprovisionsandreformsundertakeninIndiainrecentforimprovementinconditionsand
safeguardingtheinterestofindustriallabour.
IndiaInc.Isexhibitingshortsightednessindealingwithcontractlabour.Highlightheproblemsfacedby
contractuallabour.Alsodiscuss,howtheexistingscenariocanbeimprovedforthebettermentofboththe
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contractuallabouraswellasthecompaniesutilisingtheirservices.

ENVIRONMENT

TOPIC:

GeneralStudies3
Conservation,environmentalpollutionanddegradation,environmentalimpactassessment
GeneralStudies2
FunctionsandresponsibilitiesoftheUnionandtheStates,issuesandchallengespertainingtothe
federalstructure
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.

Adomesticclimatechangestrategy
IndiarecentlyratifiedtheParisAgreement,assuringitaseatatthe55/55tableratificationbyatleast55countries
andaccountingforatleast55%ofglobalgreenhousegas(GHG)emissionswasrequiredfortheagreementto
comeintoforcewherecountrieswillnegotiatethemechanismsandprovisionsundertheagreement.
IndiahasdemonstratedleadershipinclimatenegotiationsbyratifyingtheParisagreement.
However,whiletheratificationindicatesintenttoimplementtheagreementinitstruespirit,itneedsto
addresscriticalconcernssuchas
Havingadomesticimplementationstrategy
Havingsufficientconsultationswithstategovernmentsandotherstotakestockofclimate
preparedness.
Havingsufficientinformationaboutsubnationalcontexts,tokeepinminddomesticconcernswhile
negotiating.
Likemanycountries,Indiahasalsobuiltcaveatsinitsratificationinstrument,whereitclearlymentionsthat
climateactionwillbeinthecontextofIndiasdevelopmentalgoals,existingnationallawsandavailable
meansofimplementation.
Suchcaveatisimportantasthereisyetnoclarityaroundthemannerinwhichprovisionsoftheagreement
willtakeshape.
Simultaneously,Indiahastoalsodeveloplegislationandprovisionsrequiredtoimplementtheagreement
domesticallyinthepre2020scenario.

Involvementofthestates
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Therolesandresponsibilitiesofthestategovernmenthastoberealisedastheyaretheultimate
implementingauthoritiesofclimatepolicies
IndiasNationallyDeterminedContributions(NDC)goalsincludea175GWrenewableenergytarget,andan
overallemissionsintensityreductionof3335%over2005levels.
Toimplementthis,thefirststepwouldbetoallocatemitigationburdenamongstatesandalsoprioritize
adaptationefforts.
IndiahastopaydetailedattentiontokeyissueslikeatransparentGHGemissionsaccountingand
monitoring,reviewandverificationframework,andadetailedimplementationplan.
ToensurethatIndiaisontrack,bothnationalandstateplansneedtobereassessedandreviewedtobuild
thenecessarycapabilitiesforstatestoimplementclimateplansinthecontextofdevelopmentalandNDC
goals.
Amongthevariousstateactionplanssubmitted,KarnatakaandHimachalPradesharetheonlytwostates
withadetailedsectorwiseGHGinventory.Moststateactionplanslackclearlydefinedtargetsandtimelines.
Thereneedstobeastandardframeworktoassessthedifferentprioritiesofstatesasdifferentstateshave
givenvaryingimportancetodifferentsectorswhichisanindicationofwhattheyidentifyasvulnerablesectors,
inbothmitigationandadaptationefforts.
BuiltupofstatelevelprofilesofGHGemissionsfromdifferentsectorscanhelpinformaboutdifferentfocus
areasforeachstateasthefundsforclimateactionarelimitedandhencemustbeutilizedinacosteffective
manner.
Fundingfortheprojects
ToimplementNDCs,Indiawouldneed$2.5trillionupto2030,forwhichexternalfinancewouldbecritical,in
additiontoitsdomesticbudgetallocations.
Infiscal201617,$1.27billionwastransferredtotheNationalCleanEnergyFund(NCEF)throughcollection
ofcoalcess.Inthat,$750millionallocatedtorenewableenergy,$380milliontotheministryofwater
resourcesand$150milliontoenvironmentandforests.
WorldBankhascommittedtoraise$1billionin2017forpromotingIndiassolarmission.ButIndiaalsomust
strategicallyseekothersourcessuchastheGreenClimateFundandleveragetheInternationalSolar
AlliancetomeetNDCtargets.
Thestatecapacitieshavetoalsomeetthemitigationactionandthusthereisaneedtoworkoutinterstate
financialandtechnologytransferstoassistthesocioeconomicallybackwardstates.

Adaptingtothechanges
Indiahastodevelopitsadaptationcapacityalongwithfocusingonstaterolesandfundingissues.
RecentstudiesbytheCouncilonEnergy,EnvironmentandWater(CEEW)estimatethatIndiahasalready
facedaboutRs1trillionworthofdirectdamagecostsduetoextremeclimateeventssuchasfloods,cyclones
andtemperaturechanges,overthelastfiveyears.
Itisestimatedthatthismayfurtherrisetoabout$360billionby2030.
Insuchscenario,securingthelivelihoodsofoverabillionpeopleandminimizingtherisktowards
developmentoutcomesduetoclimatechangebecomesimperative.
Conclusion

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Indianeedstoestablishatransparentregimewiththecooperationofstategovernmentswithdatabeing
generatedatthestatelevel.
IndiacanextendParisAgreementdomesticallybyincludingcommonbutdifferentiatedresponsibilitiesat
respectivestatelevelcapabilitiestoallocatemitigationtargetsandadaptationeffortsontheprincipleof
equity.
JustlikeIndiacontinuestostrengtheninternationalcooperation,itshoulddoitatthedomesticlevel,with
bettercentrestateandinterstatecoordinationtomaketheimplementationsoftargetsareality.
Connectingthedots:
WhatisParisagreement?HowcanIndiacontributetowardsmitigatingclimatechangeeffectswithout
compromisingitsdevelopmentgoals?
CooperativefederalismshouldbethekeybehindimplementingclimatechangepoliciesinIndia.Evaluate.

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IASbabasDailyCurrentAffairs4thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs4thnovember2016/

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11/4/2016

Archives

NATIONAL

TOPIC:

GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.
GeneralStudies3
Inclusivegrowthandissuesarisingfromit.
Issuesrelatedtodirectandindirectfarmsubsidies

AgriculturalreformsNowisthetime
ItsbeenoverayearsincereportsofNITIAyogsupcomingwiderangingreformpackageforIndiasfarm
sectorhavebeenmakingrounds.
Intermittently,therearenewshintingattheCentresplansofliberalisingrulesgoverningtenancy,contract
farming,agrimarketingorevenforestry.
However,itisdifficulttoascertainfrompreviousexperiencethatanybigbangreformsinagricultureshould
notbeexpected.
Thisbringstothenoticethatthepresentgovernmentshallbecompletinghalftenureoftheirincumbencyin
November2016andyetnosignificantinitiationofagriculturalreformsmaynotbehelpfulfortheminnext
generalelectionifnomeaningfulannouncementisdoneinnext34months.
Notlearningfrommistakes
Fromwhatisknownfromthosewithsomeknowledgeofthedevelopmentsandthinkingtakingplaceatthe
top,thecurrentagriculturalreformmovesseemtobemakingthesamemistakesthatmarredsimilarearlier
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wellmeaningattempts.
Theseare
Delhicentricnatureofongoingconsultations/discussions
Onesizefitsallapproach
Preachingtostateswhattheyneedtodo

Centralisedapproach
AgricultureisaStatesubject,andyetitisastonishinghowconvenientlystatescontinuetobeignoredwhenit
comestoinvolvementintheprocessofagriculturalpolicymakingorreforms.
EverymajorsteptakenbytheCentrelandreformagendaof1950s,adoptionofgreenrevolution
technologiesinthefollowingtwodecades,farmloanwaivers,curbsonagriculturalexportsortopushtodelist
fruits&vegetablesfromtheAgriculturalProduceMarketCommittee(APMC)regulationshasbeendecided
inaunilateralmannerinNewDelhi.
Thestateshavetoacceptthedecisionswithoutbeingapartyinthepolicymakingprocessofasubjectthat
isimplementedbythemandwhichalsoaffectsthemthemost.
Asthestateshavenochoiceotherthantoacceptthecentresorder,theyproceedtodealwith(ornot)in
accordancewiththepoliticaleconomypeculiartotheirregions.
Hence,thisclearlyshowsthatlackofownershipbystatesisaprimaryreasonforthefailureofagricultural
reforms.Yet,nooneislearningfrompastmistakes.
Themisplacedonesizefitsallapproach
Thisapproachisanafflictionoriginatingfromthepartialsuccessexperiencedbypolicymakersandscientists
inimplementingtheGreenRevolutionpackage.
ThesuccesswasvisibleinwellendowedregionsofnorthwesternandeastcoastsouthernIndiawherethe
resourceintensivepackageuseofhighyieldingdwarfwheatandpaddyvarieties,largedosesoffertilisers
andpesticidesandmultipleirrigationmethodswasutilised
ThiswashowevernotreplacedintherainfedpartsofcentralandwesternIndia.
Theeasternregionalsolackedstronginstitutionslikevillagecooperativestodisbursecreditandinputs,
extensionsystemsandstateagenciestoprocurethesurplusgrainsfromfarmers.
Hence,thisdidnotallowthemtofullyexploittheGreenRevolutiontechnologies,despiteamuchmore
favourablenaturalresourcebase,especiallywithregardtowater.
ThisshowsthattheGreenRevolutionapproachwasclearlyunsuitedtotheNortheasternandhillstates,but
theywerestillofferedthesameschemesforagriculturaldevelopmentasintherestofIndia.
However,ittookdecadesforthepolicymakerstoshedtheirGreenRevolutionobsessionandidentify
horticultureasthecorecompetentfieldwherethesestateshaveanaturalgrowingadvantage.
Notinvolvingthestates
Thecentrecontinuestomakeitsownlistofagriculturalreformswhichthestatesareexpectedtoimplement
withoutprotest.
Centresunrequitedpassionforreformwithoutconsultingtheconcernedpartiesusuallyleadstocollapseof
wellidentifiedintentions.
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Centresrole
ItsnotasiftheCentrecannotinitiatereformsinagriculture.
Infact,inatleastthreemajorareas,theonusforleadershipandactionlieswiththeCentre.
Capitalandcredit
Provisioningofcreditandcapital.ThecentreandRBIcanlargelyinfluencethesewiththeirpolicies
SituationalAssessmentSurveyofAgriculturalHouseholdsconductedin2013revealedthathardly60%of
Indiasfarmersreceivedinstitutionalcreditforcroppingoperations.
Smallandmarginalfarmerswhomakeup86%ofallagriculturalhouseholds,thepenetrationofformalcredit
wasanabysmal15%.
Thus,thisisoneareawhichrequirescentralinterventionandhasthepotentialtochangethefortunesof
householdsatthebottomoftheagripyramid.

Increasedinfrastructureinvestment
ThoughtherehasbeenpressureonstatestoloosenthestrangleholdofAPMCs,noincentiveshavereally
beenofferedtothem.
CitieslikeDelhiandMumbaihaveachieveddelistingoffreshproducefromcompulsoryAPMCmanditrading.
Onthesimilarlines,theCentrecanatleastputupstateoftheart,moderntradinginfrastructure.
Thiskindofpublicinvestmentandincentivesforcreationofnewmandis,includingintheprivatesector,could
helpshowcaseamodelwhichstatesmaybeattractedtoemulate.
Directcashtransfer
Givingtheboosttocashtransfersatleasttotheweakestandmostvulnerablefarmersinrainfedareasand
thenortheastern/hillstatesbeforetheonsetofnextkharifseason.
Thisispossibleonlybycentreasithasacceptedtheconceptinprinciple.
Suchresultorientedactionswillgivethecentreasignificantleveragetotakeupthelargerreformagenda
withthestatesintheremainingpartofthisgovernmentstenure.
Conclusion
Theabovethreereformshavethepotentialtotriggeravirtuouscycleofreforms.
ThesecanbefollowedbycreationofaCouncilonAgriculturehostedbytheCentrewhichcanbeonlinesof
GSTCouncilwhereallstatesarerepresentedandthusserveasaplatformfordevelopinglocallyrelevant
reformagendas.
Patientdeliberationandlongtermengagementcanbringcentreandstatesononetabletodiscussand
decideonsignificantagriculturalreformswhichisextremelyessentialnow.
Connectingthedots:
Agriculturalreformsneedtoseethelightoftheday.Discuss.
Cooperativefederalismshouldbeoneofthebasicprinciplewhileaddressingagriculturalissues.Comment.

Relatedarticles:
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FarmerscanleanonLINAsolutionfordoublingfarmincome
Partnershipapproachtodoublethefarmincome

INTERNATIONAL

TOPIC:GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,IndianDiaspora

RCEPAnAgreementmarredbydisagreementsanddivergence

WhatisRCEP?
RegionalComprehensiveEconomicPartnership(RCEP)isamegaregionaltradedealthatcovershalfoftheworlds
population,38%oftheworldeconomyandnearly30%oftheworldstradevolume.The16nationRCEP
negotiationsformallybeganin2013comprisedofthe10ASEANMemberstatesatitscorealongwith6ofitsmajor
tradingpartners(China,Japan,Australia,NewZealand,SouthKorea,andIndia).

Picturecredit:http://www.thegeotradeblog.com/2012/11/anewregionalcomprehensiveeconomic.html
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TradeministersoftheabovementionedcountrieswerescheduledtomeetonNovember34atCebu,Philippinesto
takeforwardthenegotiations.Initially,2016wasthetargetyearforconclusionofnegotiationstofinalisethetermsof
RCEP.However,RCEPnegotiationsareunlikelytobeconcludedbythisyearendduetotheexistingchallenges/
hurdles.
ImpactofRCEP
CoveramarketofoverthreebillionpeopleinthemembercountriesaccountingforatotalGDPshareofmorethan
$17trillionand40percentofworldtrade

ObjectivesofRCEP
Openuptradeingoodsandservices.
Liberaliseandencouragecrossborderinvestment.
Integratemarketsandprovideimprovedaccesstomarkets.
Promoteregionaleconomicandtechnicalcooperation.
Globaleconomicgrowthanddevelopment.
CountertotheTransPacificPartnership(TPP).
Challenges
LackofreciprocityfromChina:Allnationsareconcernedaboutagreeingtogivegreatermarketaccessto
Chinesegoodswithoutgainingsimilarlyinreturn.
Completetariffelimination:EliminationoftariffsaltogetherwillmajorlyhelpChina.
DumpingbyChina:FearsofChinadumpingitsexcesscapacityinitemssuchassteelandotherhighly
subsidiseditems.Thismovecouldalsoharmthelocalindustryintheimportingcountriesandleadtotrade
distortion.
Goodsandserviceimbalance:Theprogressintalkstoliberaliseservicestradeismuchslowerthantalkson
liberalisinggoodstrade.
Indiasinterestinservicesector:GreatermarketaccessinservicesisofinteresttoIndiaasitisaleading
servicessupplier.ASEANcountriesledbySingaporehaveopposedIndiaspushforgreaterthruston
serviceswhetherrelatingtocrossbordertrade,consumptionabroad,commercialpresenceofaservice
supplierandtemporarymovementofskilledworkersoverseasforwork.
Automaticinvestmentapproval:NegotiatingmembershaveexpressedconcernsoverNewZealandsrefusal
toprovideautomaticapprovalinthefutureforinvestmentsuptoNZD100million,whichisthecurrentceiling
thereforclearancewithoutgovernmentapproval.

OvercomingObstacles
IndiastwotiersystemforChinasgoods:Indiacouldproposeatwotiersystemongoodsspecificallyfor
China.ThisproposalonChinawillinclude:
1.Alargernegativelist(goodsthatwillbeprotectedfromtariffcuts),and
2.Alongertimeframeforreducing/eliminatingtariffsontheremaininggoods.

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Singleundertaking:Accordingtothisprinciple,eachaspectofthenegotiation,whethergoods,servicesand
investment,willbetreatedasoneindivisiblepackageandcannotbeagreeduponseparately.Thereis
likelihoodthatanagreementexplicitlyincorporatingtheprincipleofSingleUndertakingcouldbeincludedin
thefinalministerialdeclaration.ThisprincipleisimportantforIndiaduetoapprehensionsregardingtheslow
paceofnegotiationonopeningupservices.
Separatebilateralnegotiations:Owingtovariousdisputessuchasthatonservices,countriessuchasIndia
andSingaporewillholdseparatebilateraltalkstoironoutdifferences.
InvestorStateDisputeSettlementclauses:AllmembersareinagreementoveravoidingInvestorState
DisputeSettlementclauses.Thisistoavoidprivateinvestorstoeasilydraggovernmentstointernational
arbitrationtribunalsandclaimhugeamountsascompensationforanylossestheysufferincludingdueto
policychanges.

Conclusion
WiththefinalisationofRCEPagreementstillhanginginmidairandthefutureuncertain,itisdifficulttoevaluatethe
benefitsitislikelytobring.Giventhesheersizeofthetradeflowsbetweenitsmembersevenrudimentarytariff
eliminationwouldincreaseefficiencyconsiderably.However,itisuponmembernationstocooperateandconverge
toensurethatRCEPdoesnotmerelyremainatooltoexhibitoppositiontotheTPPwithoutanysignificantmaterial
gains.
Connectingthedots
RCEPisendingupasasymbolofchaosamongnationsratherthancooperationandconvergence.Critically
analyse

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CleaningupIndiasairpollutionproblem
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IASbabasDailyCurrentAffairs5thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs5thnovember2016/

IASbaba

11/5/2016

Archives

INTERNATIONAL

TOPIC:GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,IndianDiaspora

BRICSNeedtoshowtherealpotential

WhatisBRICS?
AnacronymforanassociationoffivemajoremergingglobaleconomiesnamelyBrazil,Russia,India,China
andSouthAfrica.
AllmembersareemergingeconomiesandapartoftheG20.
OriginallyinventedasafourmembercountrygroupingbyJimONeill,fromtheresearchdepartmentof
GoldmanSachsin2001comprisingofBrazil,Russia,IndiaandChina.
FirstformalsummitwasheldinYekaterinburg,Russiainthepostglobalrecessioneraintheyear2009.
ChangedfromBRICtoBRICSaftertheinclusionofSouthAfricain2011.
InOctober2016,IndiahostedtheeighthannualsummitatGoa.

OriginandProgress

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BRICSwasoriginallysetupwithanobjectiveofachievingeconomicpreeminenceforthegroupoveraperiodof50
years.However,only15yearsdowntheline,thevisionlooksquiteaskew.Thegroupingdoesnotseemveryclose
toitsinitialobjective.Thereasonsforthislieontheindividualconstraintsaswellasthechallengesattachedto
makeagroupinglikethisfunctioneffectively.
Thechallengeswhichthesenationsfaceare:
CurrencydepreciationwithrespecttotheUSDollars
SlowingdownofChineseeconomicgrowthrate
RippleeffectofChineseslowdownonBrazilandRussiawhichareexporterofresourcestoChina.
Slowdowninglobaldemand

PictureCredit:http://www.forbesindia.com/media/images/2012/May/img_65328_bric_one.jpg
MajorChallenges
BRICSrecognisestheimportanceofwiderglobalpartnershipsanditindicatedintenttodevelopotheravenuesof
mutualeconomicassistance.However,ithasfacedthefollowingchallenges:
1.IndividualAspirations
Russia:
Politicallydominantmemberwhichhasrobustlysurviveditstransformationfromasocialisttoamarketbased
economicsystem
Nointerestingroupidentitytodefineitsglobalpresence
Itsfocusisonrestoringitsgeostrategicmight
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MoreinterestedinbilateraldealswithindividualBRICSmembersespeciallydefenceequipmentdeals.
China
Economicallydominantmember
Highinvestmentinphysicalandhumancapital
Averystrongassetbaseinphysicalinfrastructure,energy,healthandeducation
FoundedAsianInfrastructureInvestmentBank(AIIB)withroughlythesamesizeofauthorizedcapitalasNew
DevelopmentBank(NDB)butamuchwidercountrymembershipextendingbeyondAsia.
TargetingtheworldeconomywithitOneBeltOneRoad(OBOR)initiativeinsearchofrawmaterialsandis
notrestrictingitselftoanygroupidentity.
1.Fundingandeconomiccooperation
TheBRICSinitiativeswillbearfruitsandshowimpactiftheygetanimpetusfromthecombinedeconomiccapacity
andevidenceofeconomiccooperationofBRICS.Theresultsfromthelatestsummitdeclarationagainstterrorwill
remainuncertaingiventhefundingpatternsforterror.
1.GovernanceSupport
VariousIndianinitiativescouldhavebeeneffectivelyimplementedandwouldhavebeenprogressiveifamore
importantroleregardingBRICSwasseparatelyhandedovertoagroupincludingtheNITIAayog,theDepartmentof
EconomicAffairsoftheMinistryofFinanceinsteadofjusttheMinistryofExternalAffairs.
1.BRICSandDoingBusinessReport
The2017editionoftheWorldBankDoingBusinessReportshowsverylittlechangefrom2016intherelative
standingofBRICScountries.Thoughtheindexofdoingbusinesshasalimitationofconfinementofdatacollection
tothelargestcityineachcountry,stilltherehasnotbeenmuchimprovement.
ActionSteps
EachcountryfareswellinadistinctfiledintherankingsoftheDoingBusinessReport.Hence,thisprovidesa
reasonsandareasformutualconsultationandlearning.
Needtosetupworkinggroupsandcommitteeswhichwouldmeetsequentiallyindifferentcountriesto
redressmattersofconcernforeachcountrywithinparticularsectors.
Ensuremeetingstobecontentheavyandfruitfulratherthanamereformality.

InitiativesTaken
NewDevelopmentBank(NDB):Itwassetupforinfrastructurelendingandfocusesonrenewableenergy.Ithas
madeaninitialsetofprojectloansinallfivemembercountries,andhassuccessfullyconcludedabond
flotationintheChinesemarket.
BRICSCurrencyReserveArrangement(CRA):Amountingto$100billion,itoperationalizedinJuly2015.
Accessformemberstoshorttermliquiditytotideoverexternalcrises.
BRICSCreditRatingAgency:Aimstoencouragecompetitioninthesovereignratingspace.
NationalExportImportBanksCooperation:TooccurbetweenthefivecountriesandtheNDB.Itwillaugment
infrastructureloanswithtradefinanceforconstructionexports.
Conclusion
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Thereislotofpotentialwhichcanbetappedifonlypolicymakerscangetpastthewilfulblindness.Themembersof
BRICSneedtodisplaythestatesmanshiprequiredtoriseabovepoliticaldifferencesandseetheadvantagesof
mutualcooperation.
Connectingthedots
BRICSnationsarecapableofdefininganewworldorder.Discusshowthesenationscanachievethis
successfullyandthechallengestheyfaceintheirjourney.

NATIONAL

TOPIC:GeneralStudies2
IndianConstitutionhistoricalunderpinnings,evolution,features,amendments,
significantprovisionsandbasicstructure
Structure,organizationandfunctioningoftheExecutiveandtheJudiciary
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.

CreationofAllIndiaJudicialServicesaroadtowardsjudicialtransformation
Innews:Recently,PrimeMinisterpitchedforanAllIndiaJudicialService,linkingitwiththeinclusionofDalitsand
disadvantagedsectionsinthissystem.ThisonceagainrevisitsthepossibilityofrecruitingjudgesthroughanAll
IndiaJudicialService(AIJS).
Fordecades,thejudiciaryhasbeenaskedtodosomethingaboutjudicialrecruitments,butitalwaysstopsshortof
takinganinitiativeintheformationofanAIJS.ThePrimeMinisterandtheChiefJusticeofIndiahaveraisedred
flagsabouttheproblemsthatplaguethecourts.Hence,thereisnotimebetterthannowtostartdoingsomething
abouttheseproblems.
TheAIJSisanattempttoensurethatyoungerjudgesarepromotedtotheSCandHCs.Intheexistingsystem,
recruitsjoinasmagistratesinthesubordinatejudiciaryandtakeatleast10yearstobecomedistrictjudges.The
committeeofsecretarieshadearlierrecommendedenhancingthequotaforrecruitmenttothehigherjudiciary
throughtheproposedAIJSto50%.
Knowingtheproblems
Ithasbeenoftenobservedthatpublicdebatefocusesmoreonnumberofjudgesbutitrarelyconsidersthe
qualityofjudgesthemselves.
Thus,therealquestionthatarisesisthatifthejudiciaryisinapositiontorecruitthebesttalentrequiredfor
fulfillingtherolethatisdemandedofajudge.
Thejudiciaryhasbeenfacingconstantproblemofvacancyformanyyearsnow.Therearealways20%
vacanciesinthecourtsasvacanciesareneverfilledintime.

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Thereasonisthatthejudiciaryisnotabletoattractthetalent.Inadditiontoit,thesubordinatejudiciary
dependsentirelyonstaterecruitment.Butthebrighterlawstudentsdonotjointhestatejudicialservices
becausetheyarenotattractive.
Thestatejudicialrecruitmentprovidesforpostofadditionaldistrictjudgebutasitisnotsocareerprogressive
andonehastodealwithhasslesoftransfersandpostings,thequalityofthesubordinatejudiciaryisbyand
largeaverage,althoughtherearesomebrightexceptions.
Byextension,atleastonethirdofhighcourtjudgeselevatedfromthesubordinatejudiciaryarealsomostly
average.Asaresult,thelitigantsarelefttosuffer.
Attractingthetalentandimprovingthejudiciary
IntheFrenchmodel,studentspickthejudiciaryasastreamearlyintheirlegalstudiesitself.Thus,justas
dentistryisaspecialisationinmedicine,judgingisaspecialisationinlaw.
Onsimilarlines,DelhiHighCourtplannedtointroduceoneyeardiplomaonjudginginlawschools,withthe
eventualideatohaveafullfledgedcourseforjudges.However,itdidnottakeoff.
Hence,nowistheneedtoanswerjudicialproblemsinIndiaviaanAllIndiaJudicialService(AIJS)whichhad
beenonreformagendaforlong.

DebatesonformationofAJIS
Constitutionaldebate
Whentheconstitutionwasdrafted,AJISgotsidelined.Intheend,underArt235,theentirejudicialmachinery
atthesubordinatelevelwasgivenunderthecontrolofthehighcourts.
TheConstitutiondraftingcommitteesalsodiscussedArticle312,conferringpowerontheParliamenttocreate
AllIndiaServices.Butitwasdoubtfulatthattimeifthejudicialservicescouldbeorganisedonanational
scaleunderArticle312.
However,aftertheSwaranSinghCommitteesrecommendationsin1976,Article312wasmodifiedtoinclude
thejudicialservices,butitexcludedanyonebelowtherankofdistrictjudge.Thus,thetrialcourtswere
completelyeliminated.
LawCommissionreport
Meanwhile,theFirstLawCommissionofIndia(LCI)cameoutwithitscomprehensive14thReportonReforms
ontheJudicialAdministration,whichrecommendedanAIJSintheinterestsofefficiencyofthejudiciary.
However,onceagainthereportwasrejectedbydeclaringitimpractical.Inreality,theoppositioncameoutof
inertia,notfromanassessmentofwhetheritwasfeasibleornotanditcamemainlyfromthejudiciary.
Inits77thReport,dealingwithDelayandarrearsintrialcourts,theLCIonceagainsaidtheAIJSneeded
seriousconsideration.
Statesconcerns
InChiefMinistersconferenceheldin1982,theideaofAIJSwasapprovedwherebymoststateswerein
agreement.
Buttherewerefewpointswhichwereconstantlyraisedinopposition
Lackofknowledgeofregionallanguageswouldaffectjudicialefficiency

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Avenuesforpromotionwouldbecurtailedforthosewhohadalreadyenteredthroughthestate
services
Thiswouldleadtoanerosionofthecontrolofthehighcourtsoverthesubordinatejudiciary,which
would,inturn,affectthejudiciarysindependence.

Solution?
EachofthesegroundswasdealtbytheLCIs116thReportontheFormationofanAllIndiaJudicialService.If
116threportwasimplemented:
Directrecruitmentofjudgesfromtheentrylevelonwardswouldbehandledbyanindependentandimpartial
agency.
Theprocessofrecruitmentwouldbethroughopencompetitiondesignedwiththerightincentivesofpay,
promotionandcareerprogressionandtherebypotentiallybecomeanattractiveemploymentavenuefor
brightandcapableyounglawgraduates.
TheAIJSideaisnotsolelypromotedbyLawCommission.TheSupremeCourthasitselfsaidthatanAIJS
shouldbesetup,andhasdirectedtheUnionofIndiatotakeappropriatestepsinthisregard.
ThejudicialsideofthecourtmachineryisentirelyinfavourofanAIJSbuttheadministrativesidethathas
beenopposingthisidea.Henceitisdisappointingthattheoppositioniscomingfromwithinthejudiciaryitself,
withcertainhighcourtsopposingtheideawithoutunderstandingtheissuesproperly.
Conclusion
Inlongterm,uniformityinselectionprocessesandstandardswhichisexpectedtobeofferedbyAIJShasmany
advantages.
Itwillimprovethequalityofjudicialofficersinhighcourts
Onethirdofthejudgeswouldenterthehighcourtsthroughtherouteofpromotionfromsubordinate
courts.Byextension,judgesoftheSupremeCourtaredrawnfromthehighcourts.
Inthisprocess,thepersonseventuallyselectedintothejudiciarywouldbeofprovencompetence.
Thequalityofadjudicationandthedispensationofjusticewouldundergotransformativechangesacrossthe
judicialsystem.
Astaunchcareerinjudicialservicewillmakethejudiciarymoreaccountable,moreprofessionalandalso
moreequitable.
Thisisexpectedtohavefarreachingimpactonthequalityofjustice,andonpeoplesaccesstojusticeas
well.
Connectingthedots:
WillAllIndiaJudicialServicesolvethejudicialproblems?Criticallyevaluate.
Animportantjudiciaryreformdecisionshouldnotbeaimedatplayingvotebankpolitics.Inlightoftheabove
statement,discusshowreservationinjudiciarycanaffecttheindependenceandreliabilityofjudiciary.

MUSTREAD
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Piecingtogetheranencounter
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Ominouscurbonmediafreedom
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Mcr1isolatedinIndia,afurtherchapterinantibioticresistance
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Unplannedmigrationneedssmartcityplanning
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Engagingwiththeenemy
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WhoschokingNewDelhi?No,itsnotthecarmakers
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IASbabasDailyCurrentAffairs7thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs7thnovember2016/

IASbaba

11/7/2016

Archives

INTERNATIONAL

TOPIC:GeneralStudies2
Indiaanditsneighbourhoodrelations.
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,IndianDiaspora

ShortfallsinIndiasForeignPolicy

IndiasContemporaryForeignPolicy
ThepresentPrimeMinisterofIndiahasbeenresponsibleforcontributingwithalotofhiszealandpersonalityto
impactpolicies,impartmorehefttotheprocessesimportantforsecurityandinternationalrelations.Thegovernment
hasdisplayedalotofenthusiasmforforeignandsecuritypolicy.
IthasconstantlyfocussedonrelationswithChinaandAmerica,thediaspora,theimmediateneighbourhoodthrough
NeighbourhoodFirstPolicy.However,therearestilllacunaeintheforeignpolicyandyetthecountrysstrategic
thinkingcontinuestobeguidedbybureaucratic,adhocism,tacticalconsiderations,andpoliticalexpediency.
Weaklinksintheforeignpolicy
ConfinementtoSouthAsia
Inspiteofglobalaspirations,thegeopoliticalfocusremainsonSouthAsia.
IndiasunendingdisputewithPakistanandoveremphasisontheissuesinvolvedusesalotofitsresource.
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RaisingBaluchistanissueasacounteragainstPakistanrepeatedlysuggestsanerrorinprioritisationand
wasteofresourceandenergy.
ChinaisamajorchallengeinSouthAsiawithitsincreasingeconomicandmilitaryinfluence.
IndianeedstobecautiousofAmericasdiminishinginfluenceandstrategicrealignments.

Excessivefocusonterrorism
NewDelhisdiplomaticeffortsareincreasinglyfocussingontheissueofPakistanbackedterrorismandit
bringsalongalotofchallengesmentionedbelow.
Americashypocriteapproach.
Showshowourforeignpolicyismoretacticalratherthanstrategicandmightonlybeofuseinthedomestic
politicalarena.
ThisapproachhascompromisedIndiasstrategicrelationshipwithChinasinceChinaisunwillingtoagreeto
IndiasstandagainstPakistan.
ThisunduefocusonPakistanbasedterrorhasalsoloweredthePrimeMinisterscredibilityandreputeasa
leaderworkingtowardsgovernance,tradeandgrowth.
Mattersofgreaterimportancesuchasforeigndirectinvestment,globalpartnerships,institutionalreforms,
economicdiplomacyhavetakenabackseat.
IthasledtointernationalisationoftheKashmirissuewhichIndiahastraditionallyavoided.

Alliancemanagement
TherearehintsthatIndiasshiftingstandfromthetraditionalapproachtomaintainstrategicautonomy.
SigningoftheLogisticsExchangeMemorandumofAgreement(LEMOA)anditsrelationshipwithAmericais
anexample
IndianeedstocheckitsapproachofshiftingalliancesfromChinatoRussiatoUSA.
WithChinaalreadygrowingsoclosetoPakistan,Indianeedstobecautiousofthegrowingproximitybetween
RussiaandPakistan.
IndianeedstohaveanindependentstandratherthanbeingviewedasanallyofUSA
IndiaisnowalsotryingtocounterbalancingChinathroughVietnamintheSouthChinaSea.Indiaisnot
wrongonarticulatingitsinterestintheIndianOceanbutitshouldrethinkthestrategicofinterferinginthe
SouthChinaSea.
Wellplannedstrategicframework
Indialacksapolicyblueprint.
Diplomaticsubtletyislackinginhandlinginternationalaffairs.Sustainedandmaturenegotiationsshouldbe
resortedtoratherthanpublicspats.
WayForward
Intellectualdepthandanabilitytoadoptastrategicapproachratherthanatacticalone.
Institutionalreformssuchascoordinationandfollowupactiononthegovernmentskeyinitiatives.
HumanResourcedevelopmenttomakedefenceministrybureaucratsspecialistsinareasofforeignpolicy.
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AdequatestaffingofMinistryofExternalAffairs(MEA).
Clarityonbasicsandpurposetoensurefocusandprioritisationofthegovernmentsgoalsandobjectives.
Regularlysetuphighlyspecialisedgroupstogeneratepolicyreportsandperspectiveplanningfor
policymakers.
Structuresandteamswithinthegovernment,otherthanthebureaucrats,toensurestrategicthinkingina
purposefulmanner.
Adoptionofacomprehensivenationalsecuritydoctrinetotackleinsurgencies,managebordersandfight
crossborderterror.
Wellarticulatedstrategicdoctrinesorvisiondocumentswhichwillbereferredtobyinstitutionsand
governmentdepartments.
Policieswillbeadjustedtosuchdoctrinestoensuremorecoherenceinthecountrysstrategicbehaviour.
Politicalconsultation,carefulscenariobuilding,andnetassessmentbyexpertswhiledraftingthenational
doctrines.
Conclusion
Thechallengeistoensurethatthecountrycanbeagreatdemocracyandalsoasubstantiveglobalpower.Thereis
aneedtoalignthesetwingoalstoreinforcetheideaofIndia.Outcomesmustensurebothpowerforthecountry
andhappinessforitspeople.
Indianeedstoinvestingrandstrategicthinkingwhichcanonlyflourishifandwhenthepoliticalclasscommitsto
institutionalreform,intellectualinvestmentandconsensusbuilding.
Connectingthedots
CriticallyanalyseIndiasforeignpolicyinitiativesinthelast23years.
DiscusstheessentialchangesrequiredinIndiasforeignpolicy.

NATIONAL

TOPIC:

GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.
GeneralStudies3
Roleofmediaandsocialnetworkingsitesininternalsecuritychallenges

Banningthemedia:Whereshouldthelinesbedrawn?

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Innews:TheInformationandBroadcastingMinistryhasputa24hourbanonthetelevisionchannelNDTVIndia
overitsPathankotcoveragebyinvokingtheCableTelevisionNetworks(Amendment)Rules,2015,ontheground
thatthechannelbroadcastcrucialinformationwhichcompromisednationalsecurity.
Acaseofgovernmentoverreach
In2015,aclausewasaddedtoCableTelevisionNetworksRuleswhichprohibitedlivecoverageofanyanti
terroristoperationbysecurityforcesandrestrictedmediacoveragetoperiodicbriefingbyadesignated
officertillsuchoperationconcludes.
However,itissilentonwhetheritismandatoryforthegovernmenttodesignateanofficialspokespersonto
giveoutinformation.
Anyviolationofthecodeallowsthegovernmenttoorderachanneltogooffairforaperiodoftime.The
actionagainstNDTVIndiamarksthefirsttimethenewclausehasbeenusedtopunishaTVnetwork.
Thisstepbygovernmenthasbroughtforwardtheextensivepowersthegovernmentisholdingwhereideally,
suchpowersshouldbeinthehandsofaquasijudicialbodyindependentofthegovernment.
IfNDTVdecidestochallengethegovernmentactionincourt,therecouldbeexpectedsetofguidelinesthat
narrowtheinterpretativepowersofthegovernment.However,ifthegovernmentisallowedtogo
unchallenged,itmaycreateadangerousprecedentforoveruseandmisuseofsuchprovisionsinthefuture.

Cautionagainstthecoverage
Thecoverageofmilitaryoperationshasalwaysbeenatrickyterrain.Butthebeginningofthehyper
informationageincombinationwithunbalancedwarfaresgrowingfootprinthasaddedimmenselytothe
challenges.
Asseenin26/11,theterroristsinMumbaiwerebeingregularlybriefedbytheirhandlersinPakistanaboutthe
operationaldeploymentsoftheIndiansecurityforcesbygatheringthesourcefromthelivecoverageof
severalTVnetworks.
Today,globalmediahouseslikeCNN,BBCandAlJazeeraandalsoIndianTVnetworkshavelearntthe
lessonofremainingatarespectfuldistancefromthetheatreofoperation.
InthePathankotcase,accordingtotheinterministerialcommitteethatinquiredintothecharge,the
disclosureofdetailsrelatingtothelocationoftheammunitionsdepot,therangeofweaponsandmilitary
assetsavailablethereandthepresenceofcivilianresidencesinthevicinitycouldhavebeenusedby
terroriststotheiradvantage.
NDTVsdefencewasthatnothingwasdisclosedthatwasnotpublishedorairedbyothermediaoutlets,that
itsreportagewaslargelybasedonofficialbriefingsandthatitwasdoneinaresponsiblemanner.
Constitutionalsupport
TherightofthemediatoreportnewsasithappensisconstitutionallyguaranteedunderArticle19(1)(a).This
extendstoviewersandreaderswhohavearighttoknow.
Nodoubt,therearereasonablerestrictionsontheinformationprovided.Inthiscase,theCableTelevision
NetworkRulesarereplicaofreasonablerestrictionstofreespeechunderArticle19(2)oftheConstitution.
Init,thecentralgovernmentisempoweredtoregulateorprohibitthetransmissionorretransmissionofany
channelorprogrammeifitisnecessaryorexpedienttodosointheinterestofthesovereignty,integrityor
securityofIndia,friendlyrelationswithanyforeignStateorpublicorder,decencyormorality.
Andthus,here,ithastobeknowniftheimpugnedcontentfellwithintheconstitutionaltestofclearand
presentdanger.
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InShreyaSinghalv.UnionofIndia,theSupremeCourtcautionedtheauthoritiesagainstanyinsidiousform
ofcensorshipwhichimpairsacorevaluecontainedinArticle19(1)(a)andhasachillingeffectonthe
freedomofspeechandexpression.

Whatshouldhavebeendone?
Thecovertuseofstatepowertokeepthepress,particularlytelevisionmedia,alignedwiththegovernments
purposes,hasproducedsomethingfarmoreinsidiousthancensorship.
TheMinistrycouldhaveeitherapproachedtheauthority,whichisheadedbyaformerSupremeCourtjudge
orformedanindependentpaneltoadjudicatethequestionInsteadofimposingablanketbanonalllive
coverageofanyantiterroristoperationuntilitends.
Theministryhascitedstatutoryprovisionsthatempowerthegovernmenttoregulateorprohibitthe
transmissionofTVprogrammes.Thereisnomentionofanyprovisionforappeal.Nonecanreasonably
arguethatirresponsiblelivecoverageofanongoingoperationshouldattractnopenalty.
Aproblemariseswhenthepenaltyisdecidedbyagovernmentpanel.Takingachanneloffairforhowever
briefaperiodisaseriousdecisionthatcouldbereadasasignaltoothernewsroomstoselfcensor.
Acommitteeofofficialsisnottheidealbodytomakeanindependentassessmentofwhatconstitutes
informationthatposesanimminentdangertomilitarypersonnelorcivilians.Thatisthejobofanindependent
forum.
Conclusion
Themediahastobeallowedtoremainawatchdogandleavetheinterpretationofnationalinteresttocourts.
Indianmediashouldalsostrivetoimprovethequalityofitsselfregulatoryinstitutionsandframebetter
guidelinestodealwithconflictcoverage.
Connectingthedots:
Thedecisiontobanthemediaforallegedbreachofnationalsecuritythreatensthefundamentalrightsof
freedomtoexpress.Doyouagree?Examine.
Thephraseinnationalinteresthasattractedlotofcensorshiptofreedomofspeechandexpression.
Criticallyanalysetheimpactofactionstakeninprotectingthenationalinterest.

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GST,insight
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FifthColumn:Atimetospeakout
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PoorpeoplesaccesstofinancialservicesontheriseinIndia
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Swachhair
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IASbabasDailyCurrentAffairs8thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs8thnovember2016/

IASbaba

11/8/2016

Archives

ENVIRONMENT

TOPIC:GeneralStudies3
Conservation,environmentalpollutionanddegradation,environmentalimpact
assessment
Development,Biodiversity,Environment,SecurityandDisasterManagement

AirPollutionControlChallengesandMeasures

TheCrisisFacts
AsperWorldHealthOrganisation(WHO),DelhisannualaveragePM2.5concentrationwas153micrograms
percubicmetre(ug/m3)in2015accordingtotheWHO,whereas60ug/m3isthepermissiblelimit.
PollutionlevelsinDelhisurgedtoalarminghighsimmediatelyafterDiwali.
AsperdatafromCentralPollutionControlBoard(CPCB),theaveragePM2.5levelforcertainstationson
Sundayeveningwas552ug/m3,awhoppingninetimesthesafelimit.
CentreforScienceandEnvironment(CSE)saidthataccordingtotheIndianMeteorologicalDepartment,this
istheworstsmogin17years.

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PictureCredit:http://www.thehindu.com/multimedia/archive/02682/air_2682692a.JPG
ReasonsfortheCrisis
CropBurning:PollutionlevelsinnorthIndia(Punjab,HaryanaandUttarPradesh)increasesinwintersdueto
theburningofcropstubbleandresidue,forpreparingthesoilforsowingRabicrops.
ConstructionActivities:Particulateemissionsfromconstructionactivity/sites.Vehiclesfromthesesitesalso
transportparticulatemattertootherplaces.
InefficientWasteManagement:Drysweepingofroadsandburningmunicipalwastecontinuestobeprevalent
inmostIndiancities.
OldVehicles:Useofoldandpoorlymaintainedvehiclesespeciallydieselvehiclescontributehighly.
PublicTransport:Excessivepressureonroadsduetolesseruseofpublictransport.

SystemicChallenges
ShortTermMeasures:
Mostinterventionsareusuallyshortterminnature.
Wehaveignoredpoliticallyharder,structuralreformsandsciencebasedthinking,policyandaction.
InadequateAnalysis:
Theimpactofmeasuresproposedorimplementedisnotverywellunderstoodandlacksadequateand
effectiveanalysis.
Example:ImpactofOddevenschemeremainsunclearintermsofreductioninpollutionlevel.
ComprehensivePolicyMeasures:
Minorreductionsinpollutiondonotreducehealthriskssignificantly.
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Significantdeclinesinadversehealthoutcomeswillberealisedwhenourstrategiesencompassportfolioof
policies(acrosstransport,energy,wasteandtransboundaryissues).
LackofScientificAnalysis:
Needtoensuresophisticatedtoolsforairqualitymodellingandanalyses.
VeryfewreportsfromtheCPCB/SPCBsprovidethiskindofanalysis.Moststudiesstopatasource
apportionmentanalysisandlackascientifictouch.
CapacitybuildingatCPCB/SPCB:
Pollutionmonitoringandcontrolarecomplex,technicalissuesandrequiretrainedmanpower.CPCBsand
SPCBsoftenlackresources,technicalexpertiseandmanpowertoprovidescientificinputs.
LackoftechnicalcapacityprecludesSPCBsfromsettingmorestringentemissionsstandards.
Manpowershortagespreventenforcingexistingstandards.
InadequateuseofTechnology:
Rarelydoweleveragetechnologyforinnovativesolutions.
Policiesdonotconsiderdevelopingbusinessmodelsbywhichfarmerscansecurerevenuefromwasteto
energyprojectsorprovidingpollutioncontroltechnologiestoindustrialclustersofsmallandmedium
enterprises.
SPCBsarelackinginresourcesandinfinancialassistancetomakethebestuseoftechnology.
ActionSteps
SkilldevelopmentofexistingstaffknowledgeandcoordinationbetweentheCPCBandSPCBswithoutwhich
theywillremaintoothlesswatchdogs.
FinancialassistancefromtheAirAmbienceFund.Therecouldbeauseofpublicfundsasviabilitygap
fundingorasloanguaranteestoreducethecostofdebtfinancing.
Encouragewastetoenergyprojectsandprovidepollutioncontroltechnologiestocheckpollutiondueto
stubbleburningandindustrialemissions.
Alsoensureeffectivebanontheburningofwaste.
Strictimplementationandenforcementofbanonentryoftrucksintothecapitalandimpositionof
environmentcompensationcessontrucksenteringthecity.
Banonregistrationofdieselvehicleswithhighercapacityengines
Campaignsshouldinvolvenotjustgovernmentsandregulatorybodiesbutcivilsocietiesandpeople.
Improvethepublictransportnetworkandencouragetheuseofcleanenergytransport.
Discouragetheuseofprivatetransportandpromotecarpoolingtoenjoylongtermbenefits.
Farmsubsidiesneedtobeprovidedforsustainableagricultureandtopreventburningofcropresidues
insteadoffreeorhighlysubsidisedpower.
Compostingcropresiduescanreducetheincidenceofburning.
FarmersinthePunjabHaryanabeltneedtobeencouragedtomoveawayfromgrowingwaterintensive
cropssuchaspaddyandtakeupothercropstoreduceburningofstraw.
Usageoffirecrackersshouldbeeffectivelycurbed.
Useofcloudseedingtocreateartificialraininhighlycriticalregions.
Conclusion
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Theimpactofsuchseriouslevelofpollutionismanifoldandhighlycritical.Thisisimpactingboththehuman
resourceaswellaseconomicresourceinthecountry.Thesamecanbeunderstoodbytherepresentationbelowfor
the50yearsperiodfrom20102060.

PictureCredit:https://i0.wp.com/oecdinsights.org/wpcontent/uploads/2016/09/Airpollution2016deathsloss
7.9.16.jpg?resize=768%2C576&ssl=1
Itistimethatthegovernmentshowspoliticalwillingnessandgivesthisissuedueandurgentimportance.Regulatory
bodiessuchasCPCB,SPCB,NationalGreenTribunalneedtobeempoweredandcompliedwithaswell.Ata
personallevel,weallneedtocontributeinwhateverwaysweallcan.Weshouldnotwaitfortheotherstoactand
stepinbuttakeallpossiblestepssuchas
Usingmetrosandmasspublictransport
Avoidusingradiocabs(Uber/Ola)
Resorttocarpooling
Ensuringpropermaintenanceofourpersonalvehicles
Spreadawarenessamongpeoplearoundus.
Connectingthedots
Criticallyanalysetheairpollutioncontrolmeasurestakenbythegovernmentinrecentpast.Suggest
necessarychangesthatneedtobeintroducedingovernmentspoliciesforpollutioncontrol.

NATIONAL

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TOPIC:

GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.
IssuesrelatingtodevelopmentandmanagementofSocialSector/ServicesrelatingtoHealth,
Education,HumanResources,issuesrelatingtopovertyandhunger.
GeneralStudies3
PublicDistributionSystemobjectives,functioning,limitations,revampingissuesofbufferstocks
andfoodsecurity.

Linkingfoodandnutritionsecurity
NationalFoodSecurityAct,2013
ItaimstoprovidesubsidizedfoodgrainstoapproximatelytwothirdsofIndias1.2billionpeople.
ItincludestheMiddayMealScheme,IntegratedChildDevelopmentServicesschemeandthePublic
DistributionSystem.Italsorecognisesmaternityentitlements.
Undertheprovisionofthebill,beneficiariesofthePublicDistributionSystem(or,PDS)areentitledto5
kilograms(11lb)perpersonpermonthofcerealsatthefollowingprices:
RiceatRs.3perkg
WheatatRs.2perkg
Coarsegrains(millet)atRs.1perkg.
IntentofNFSAFoodsecuritymeansavailabilityofsufficientfoodgrainstomeetthedomesticdemandas
wellasaccess,attheindividuallevel,toadequatequantitiesoffoodataffordableprices.
Currentposition
TheNationalFoodSecurityAct(NFSA)2013isnowseenaslosingeuphoria.TheActwastobefully
implementedacrossIndiabyJuly2016.
Butasofnow,onlyfiveStateshavefullyexecuteditaspertheprovisionsoftheCentralAct(Punjab,
Haryana,Chhattisgarh,MaharashtraandRajasthan).
TheprogressinotherStateshasbeentardy.ThereispartialimplementationinBihar,Delhi,Himachal
PradeshandKarnataka.
ThepreliminarysurveysundertakeninsomeoftheseStateshaverevealedpositiveoutcomesintermsof
Administrativereforms
Significantincreaseinthenumberofhouseholdshavingrationcards
Improvementinthedistribution
Improvementinconsumptionoffoodthroughfairpriceshops
However,iftheactisfullyimplemented,itislikelytobenefit720millionpeoplethroughavailabilityof5kgper
capitapermonthofsubsidisedfoodgrains(rice,wheatandcoarsecereals)atamuchlowerratethanthatin
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theopenmarket.
Thusthereisanassuranceoffoodsecurityandenhancednutritionalstatus.

Foodandnutritionsecurity
Thetwoconceptsareinterlinkedbutnutritionsecurityhasamuchwiderconnotationthanfoodsecurity.
Itencompassesabiologicalapproach.Itmeansadequateandsafeintakeofprotein,energy,vitaminand
mineralsalongwithproperhealthandsocialenvironment.
ThenutritionalaspectofthequantityofgraintobedistributedtoeachpersonunderthePublicDistribution
System(PDS)issomewhatlessresearched,thoughtheActhasaimedatattainingthisgoal.
Poorqualityoffoodlackingessentialmicronutrientsandnodietdiversity,andunhygienicconditionsof
storagecanbeadeterrence.
OtherpromisingfeaturesoftheActlikefreedailymealsforchildrenandmaternitybenefits,includingcashfor
pregnantwomen,whichcancombatrampantundernutrition(caloriedeficiency)andmalnutrition(protein
deficiency)acrossthecountryhavebeenincluded.
TheOdishaStudy
Aprimarysurveyof385householdswascarriedoutduring201415inthreeextremelypoordistrictsviz.
Koraput,Bolangir(KBKmostbackwardregion)andNayagarh(nonKBKregion)astheyhadhighprevelance
ofundernutritionandmalnutrition.
WhileKBKdistrictsfollowauniversalPDS,nonKBKdistrictshaveatargetedone.
Riceisthekeystaplefoodinthesurveyedareasandactsasamajorsourceofenergyintake.Themonthly
percapitaconsumptionofriceisestimatedtobe11.6kg,ofwhich33.7%issourcedfromthePDSbyall
beneficiaries.
SinceAAYhouseholdshavehigherquotaandaccessibilityunderthePDS,thecontributionismuchmoreat
73.9%.
Betteraccessibilitytofoodandhenceenergyintakeofpoorpeople,especiallythoseunderAAY,hasbeen
madepossibleduetoconcertedeffortsinitiatedbythegovernment.Majorreformsinclude
Abolitionofprivateprocurementandstoragesystem
Greaterroleforpublicagenciesincontrollingdiversionoffoodgrainfromthegodowntothemillers
Properrecordingofprocurement,storageanddistributionofgrainsacrossthedepartments
Distributionoffoodthroughselfhelpgroupsandgrampanchayatsanditsregularmonitoringatthe
blockandwardlevels.
TheseeffortsofOdishastategovernmentinensuringfoodsecurityshouldbereplicatedinStatesthatareyet
tofullyimplementtheActandreformtheirrespectivedistributionsystems.
Animportantstepofemphasisondietarydiversificationtoensureappropriatenutritionalintakeforlarge
segmentsofthepoorpopulationcanbeanimportantsteptakenupinStateswherearevampedPDSis
makingground,suchasinTamilNadu,Gujarat,MadhyaPradesh,ChhattisgarhandBihar.

Conclusion

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NFSAprovidesforoneadditionalcoarsecerealviz.milletalongwithwheatandrice,whichcanfurther
enhancethenutritionalsecurityofthepoorhouseholds.
However,thoughwheatandricecontributesignificantlytoenergyintake,thetimehascometoincreasethe
focusoncoarsecerealsandpulsestoimproviseadequateintakeofprotein.Hence,seriousdiscussionsare
requiredtomakethispossiblethroughthePDS,whichisgoingtocatertoasizeablepopulationinthenear
future.
Asseenabove,theAAYhouseholdshaveagreateraccesstoPDSbuttheproblemofundernourishmentis
moreseriousamongthem.
HasteningofNFSAacrossthecountryisimperativetoensurefoodandnutritionalsecurityandforthis,the
Statesshouldnowactinamissionmodeasavailabilityoffoodgrainsmaynotbeaproblemthisyear.
TheMinistryofAgriculturehasprojectedarecordproductionof270milliontonnesowingtogoodmonsoon
andanincreaseinacreageoffoodgrainsfrom101millionhectaresto105millionhectares.
Thus,thestatesmustnowbegintoworkonadequatelogisticsfordigitisationofrationcards,computerisation
ofofftakeanddeliveryoffoodgrainsandeffectivemonitoringoffairpriceshops.
Thisisexpectedtobringingreatertransparencyinthesystemandwouldgoalongwaytowardsraisingthe
nutritionalstatusofIndians.
Connectingthedots:
Foodsecurityandnutritionalsecuritygohandinhandtoensurebasichealthstandardsofthepopulation.
Analyse.
Nutritionalavailabilityisasimportantasfoodsecurityforhealthysustenanceofthegrowingpopulation.What
arethechallengesfacedbygovernmenttomeetthisobjectiveandsuggestpossiblewayforward.

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Unwisemove
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IASbabasDailyCurrentAffairs9thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs9thnovember2016/

IASbaba

11/9/2016

Archives

ECONOMY/NATIONAL

TOPIC:

GeneralStudies3
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,development
andemployment
Inclusivegrowthandissuesarisingfromit.
GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation

DemonetisationReasonsandeffects
InasocalledmasterstrokebyPMModi,theRs.500andRs.1000denominationswillnowbeoutofcirculationfrom
theIndianeconomy.Letuslookatvariousnittygrittyofthispolicydecision.
Nomorealegaltender
Alegaltenderisanyacceptablecurrencyinacountry.Thedenominationsaredeclaredbythegovernment.
InIndia,differentvaluesoftheIndianrupeesarelegaltender.TheReserveBankofIndia(RBI)Actandthe
IndianCoinageActspecifywhichbanknotesandcoinswillbelegaltenders.
TheCentralgovernmentunderSection26(2)oftheRBIActhastheauthoritytodeclarecurrencyasnotvalid
legaltender.ThisisgenerallydoneontheadviceofthecentralboardofdirectorsoftheRBI.
Section24oftheRBIActempowerstheCentralgovernmenttoissuebanknotesofanyvalue,aslongasitis
Rs.10,000orbelow.Hence,thereisnoamendmentinlawrequiredforanychangesinlegaltender.
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Recently,theCentralgovernmenthasdeclaredthatRs.500andRs.1,000willnotbeacceptedascurrency
notes,thusthesetwodenominationsarenolongerlegaltender.Hence,thesenoteshavenovalue.
ItmeansthatpeoplecannotuseexistingRs.500andRs.1,000currencynotesformonetaryexchanges.
Also,thecentralgovernmentissettointroducetwonewcurrencynotesofvalueRs.500andRs.2,000.

Continuedeffortstoharmparalleleconomy
Thedecisioncomesinthebackdropofcurbingthechallengeposedbycorruptionandblackmoney.

Picturecredit:http://www.livemint.com/r/LiveMint/Period2/2016/11/09/Photos/Processed/w_black_money.jpg
Andnow,thefivehundredrupeeandthousandrupeecurrencynotespresentlyinusewillnolongerbelegal
tender.
However,thereisnorestrictionofanykindonnoncashpaymentsbycheques,demanddrafts,debitorcredit
cardsandelectronicfundtransfer.
Reasonbehindsuchdecision
Thehonestcitizenswantthatgovernmentfightsagainstcorruption,blackmoney,benamiproperty,terrorism
andcounterfeiting.
Themagnitudeofcashincirculationisdirectlylinkedtothelevelofcorruption.
Between2011and2016,thecirculationofallcurrencynotes,fromthelowesttothehighest
denomination,grewabout40%.
Inthesameperiod,thecirculationofRs500denominationandRs1000denominationcurrencynotes
increasedby76%and109%respectively.
But,thesizeofIndianeconomyduringthisperiodexpandedbyonly30%.
Soobviouslytherehasbeenadisproportionatelyhighusageofhighdenominationcurrencynotes
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Inflationbecomesworsethroughthedeploymentofcashearnedincorruptways.Ithasadirecteffectonthe
purchasingpowerofthepoorandthemiddleclass.
Inpurchaseoflandorahouse,apartfromcheque,alargeamountofcashisdemanded.
Thus,misuseofcashhasledtoartificialincreaseinthecostofgoodsandserviceslikehouses,land,higher
education,healthcareandsoon.

Effectsofthemove
AsperRBIslatestannualreport,Rs.500andRs.1000denominationsaccountforover86%ofthetotalRs
16.42lakhcrorevalueofbanknotesincirculationasonMarch31,2016.
Incidentally,thedecisioncomescloseontheheelsoftheexpiryoftheSeptember30deadlineoftheblack
moneydisclosureschemeunderwhichincomeandassetsworthRs65,250croreweredeclared.
Withalmost60%oftheeconomyestimatedtobeacasheconomy,thedecisionislikelytobequitedisruptive
intheshortterm.
Indiaisacashbasedeconomy,hencethecirculationoffakerupeescontinuestobeamenace.Thefake
notesareusedforantinationalandillegalactivities.Thus,itisnowexpectedtocontaintherisingincidence
offakenotesandblackmoney.
Thedecisionisalsoexpectedtoseverelyimpactsectorsthatdealwithunaccountedmoneysuchasreal
estate,stockmarketandgemsandjewellery.
However,itwillalsohitthelivelihoodandsavingsofneighbourhoodvegetablevendorswhoborrowovernight
fundsfrommoneylenders,kiranastores,smalltradersandeventhelabourclass.
TherewillbetemporaryglitchesoccurringduetothetransientnatureofreplacingthecurrencybuttheRBIis
alreadyreadywithnewcurrencynotesofRs.500andRs.2000tomeettherequirementsinupcomingweeks
anddays.
Inaddition,thegovernmenthasmadeclearthatthenowdefuncttwodenominationsinbankaccountswillnot
enjoyimmunityfromtaxandthelawofthelandwillapplyonsourceofsuchmoney.
Effectonrealestate
Thesectorisknowntobeasafehavenforconvertingstockofblackmoneyintowhite,especiallyinhigh
valuetransactions.Highvaluepropertydealsandmorespecificallyresaletransactionsinvolvelargeamounts
ofundisclosedcashtransactions.
Thus,thereisexpectedtobeaslowdownintransactions,whichwillfurtheraffecttheperformanceofreal
estatecompanies.
However,lowerinterestrateshavebroughtsomehopeforthesector.Aslightlybetteroutcomeisifprices
declinewhichseesarevivalindemandfrombuyerswhodontconcealtheirincomefromthetaxauthorities.
Effectonmarkets
TheSensexismadeupofverylargecompanieswhichmaynotbeimpactedasmuchbythedemonetization
process.
Thelargestimpactofthegovernmentsmovewillbeintheunorganisedsector,whichisntrepresentedinthe
markets.

Effectonvoterbase
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Thedecisionmayaffectthecurrentrulingmajoritypartyskeysupportbasetraders,smallandmiddlelevel
businessmen.However,manyfeelthattraditionalpartysupporterslikelower/middleclasswillnotfindittough
toaccountfororexchangethecurrency.Therealfearwillbeforthosewhohaveunaccountedmoney.
Asperanalysts,withassemblyelectionsdueinfivestatesoverthenextsixmonths(UttarPradesh,Punjab,
Uttarakhand,GoaandManipurallgotopolls),themoveisriskyandbrave.
Electionsattractcash,andthemovemeanscampaigningisgoingtobeabigheadacheforpoliticalparties
Thus,thismoveisexpectedtobringmoretransactionsundertaxnet,bothdirectandindirecttaxeswouldmoveup,
moredigitaltransactionswilltakeplaceandreductioninparalleleconomywillincreasethesizeofformaleconomy
asmorepeoplewilldiscloseincomeandpaytaxes.ThiswillmakeIndiaamoretaxcomplaintsociety.
Connectingthedots:
Whatistherationalebehinddemonetizationoftwocurrencynotes?Howwillitaffecteconomyandpeople?
Analyse.
Whatarevariousmeasurestakenbygovernmenttocurbcorruptionanddiscloseblackmoney?Critically
evaluatetheeffectofsuchactions.

GOVERNANCE

TOPIC:GeneralStudies2
Statutory,regulatoryandvariousquasijudicialbodies
Importantaspectsofgovernance,transparencyandaccountability,egovernance
applications,models,successes,limitations,andpotentialcitizenscharters,
transparency&accountabilityandinstitutionalandothermeasures.

AppraisalofAutonomousBodiesRationaleandMethodology

TheNews
ThegovernmenthasdecidedhasdecidedtoaskNitiAayogtoreviewtheperformanceofautonomousbodiesthat
havemushroomedovertheyearswithlittleoversight.Theseincludemorethan500autonomousbodiessuchas
UniversityGrantsCommission(UGC),JawaharLalNehruUniversity(JNU),DelhiDevelopmentAuthority(DDA),
PrasarBharatiandmanymore.
ExpenditureManagementCommission(EMC)
ExpenditureManagementCommission(EMC)headedbyformerReserveBankofIndia(RBI)governorBimalJalan
hadobservedthattheseagencieswereincurringexpendituretothetoneofoverRs60,000Croresannually.The
PrimeMinistersOffice(PMO)hassetupahighpoweredcommitteeheadedbyNitiAayogvicechairmanArvind
PanagariyatolookintotheEMCsrecommendations.AfewrecommendationsmadebytheEMCwere:
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Streamliningofexpenditure,
Reviewofgrantsmadetoautonomousbodies,and
Linkingapartofthegrantstotheperformanceofthebodies.

Precedents
TheUnitedKingdom(UK)hadundertakenreviewofits900oddautonomousbodies.Onthebasisofthereview,the
numberwasprunedby285institutions,resultinginannualsavingsofaround$2billion.
AtalBihariVajpayeegovernmenthadalsosetupExpenditureReformsCommissionforsimilarreforms.However,
thebureaucracyhasinmostinstancescomeupwithargumentsjustifyingcontinuationofthesystem.
Rationale
Thismovecanalsobeseenasanopeningforunwarranted,unwelcome,targetedinterferenceinthematterof
autonomouspublicinstitutions.However,thiscouldbeanimportantandconstructiveinitiativeduetothefollowing
reasons:
Lackofoversightovertheyears
Increasingnumberofsuchautonomousbodieswhichhasrisenfromamere35in1955to691in2016
Increasingandwastefulexpenditureincurredbythesebodies
Growingirrelevanceinthecurrentsocioeconomicsetup
Owingtothespecificsignificanceoftheseautonomousbodies:
Thesearecriticalinterfacebetweenthestateandthemarketorthestateandthepublic.
Theyincludesomeofthekeychannelsforpubliclyfundedscientificandindustrialresearchandinnovation,
teachingandtraininginstitutions.
Responsibleforsectoralinitiativestodevelopanddeepenmarketinfrastructureinareasthatwillbeimportant
forcreatingmoregeographicallydispersedemployment.

DosandDontsWhatnottodo
Avoidmisuseofpower:
Ithastobeensuredthatthereviewsarecarriedoutinamannerconvenienttotheagencies.Reviewoffinances
andinformationrequestsshouldnotprovidethereviewerwithpowerstoharassandannoy.
Rigidityinapproach:
Thespanofsuchinstitutionsisverywidespreadandhencetherangeofinstitutionsandtheirmandateswillrequire
discretiontobeusedinreviews.Further,therecannotbeauniversallyapplicableapproachtoreviewallthebodies
orallsectors.
Benchmarking/Criterion:
Thecriteriontoselectandreviewtheagenciescannotbefixed.Muchofthereviewforpotentialsavingswillhaveto
bedoneonacasebycasebasis,bothintermsofchoicesofentitiestofocusonandcriteriaforseparatingwaste
fromperformanceintheonesthatarechosen.
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DosandDontsWhattodo
Clarityoftermsofreview:
Statingthetermsofthereviewupfrontandstickingtothem.Itwilladdclarityandavoidafeelingofharassmentand
animosity.
Clarityofprinciples:
Clarifyingtheprinciplesusedasbasistoidentifyinstitutionsforcloserscrutiny,thedefinitionofpoorperformance
andperformancecriteriathatwillbeused.
SharingofWorkload:
SharingtheworkloadandthepowertoidentifypoorperformancewithUnionministriesthatautonomousbodiesare
attachedto,withpeerinstitutionstoidentifypotentialsavings,andwiththeinstitutionsthemselveswillimprovethe
outcomes.ThiswillalsoreducetheworkloadofNitiAayogandensurethecompletionofthetaskinatimelyand
effectivemanner.
Voluntarychangeofstatus:
Allowinstitutionstooptoutfrombeinganautonomousbodytooperateatamorefiscalandadministrativearms
lengthdistancefromthestate.Thiscouldhelpinnarrowingdownthereviewexerciseandalsoincreasethepublic
sectorsavings.
Conclusion
Thereviewofthesebodiesisessentialnotonlyfromtheviewpointofsavingalotofmoneybutrathermorecrucial
duetotheirroleandhowtoleveragetheirhybridstructure.Inthepastlittlehasbeendonetoimplementsuch
recommendations.Attimesthebureaucracyhasbeenahurdleinthisexercise.Hence,itistheneedofthehourto
goaheadwiththisreviewandensureconstructiverationalizationoftheautonomousagencies
Connectingthedots
CriticallyanalysetheroleofvariousautonomousbodiesworkinginIndia.Supportyouranalysiswithacase
study.
Recently,thegovernmenthasdecidedtoreviewtheperformanceautonomousbodiesthathave
mushroomedovertheyears.Analysetheneedforsuchastepandsuggestastrategytoensureaneffective
review.

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Notacorporatesinecure
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Faithinequality
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IASbabasDailyCurrentAffairs10thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs10thnovember2016/

IASbaba

11/10/2016

Archives

INTERNATIONAL

TOPIC:GeneralStudies2
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,IndianDiaspora
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests

IndiaUKRelationsVisitbytheBritishPrimeMinister

Background
IndiaandtheUnitedKingdomsharecloseandfriendlyties.Itisarelationshipbetweenthelargestandtheoldest
democracyintheworld.Highlightsofthisrelationshiphavebeenthefollowing:
Thebilateralrelationshipbetweenthetwonationswasupgradedtoastrategicpartnershipin2004and
furtherin2010thefoundationforEnhancedPartnershipfortheFuturewaslaid.
PrimeMinisterNarendraModisvisittoUKinNovember2015tooktherelationshiptonewheights.
ThetwoPrimeMinistersendorsedaVisionStatement.
BothPrimeMinistersresolvedtoholdbiennialPMlevelSummitstoadvancethepartnership.
TheyagreedonanewDefenceandInternationalSecurityPartnershipaimedtointensifycooperationon
defenceandsecurity,includingcybersecurity,counterterrorismandmaritimesecurity.
TheyalsoendorsedaJointStatementonEnergyandClimateChange.
TheyissuedaStatementofIntenttoscaleupbilateralcooperationtoaglobalpartnershipfordevelopment
cooperationinthirdcountries.
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Indiaisthe3rdlargestsourceofinvestmentinIndia
UKisthelargestsourceofForeignDirectInvestment(FDI)inIndia
IndiaandUKhavealreadysignedthecivilnuclearagreement
UKisparticipatinginIndiasSmartCityMission
IndianInc.formsoneofthemostimportantandinfluentialsegmentinUKwithnamessuchasJaguarofTata
Motors.
UKishometoalmost90,000Indianstudents.
News:PrimeMinisterTheresaMayhasvisitedIndiaonherfirstbilateraltripoutsideEuropesinceBritainvotedto
quittheEuropeanUnion.Thepotentialofthispartnershiphasbeendescribedaslimitless.
WhyIndia
SearchofnewmarketsposttheEUexit.
TradeopportunitieswithIndiawhichisoneoftheworldsfastestgrowingeconomies.

AreasofCooperation
VisaRegime
IndianbusinessmenhavebeenofferedaccesstoUKsregisteredtravellerscheme.
Indiangovernmentwillbethefirstintheworldtonominatetopbusinessexecutivesforthespecialisedfast
trackvisaandimmigrationservicelaunchedin2013.
PreferentialvisashoweverarenotbeingofferedtothestudentsandITprofessionals.
IndiasconcernisthesegmentofpopulationwhowouldbeaskedtoreturntoIndia.
UKconcernshouldbetoaddresstheskillgapbyallowingflexiblevisapoliciesforthiscategory.
IndiawillhaveoneofthebestUKvisaservicesofanycountryintheworld.
Theywillhaveaccesstomoreapplicationpointsandwillbetheonlyplacewhereonecangetasameday
visa.
Terrorism
CondemnedtheUriattackandemphasisedoncrossborderterrorism.
Issuedajointstatementtopurposefullyworktogethertocombatradicalism,terrorism.
Supportforstrongactionbyinternationalcommunityinajointmanner.
Ensuresharingofbestpracticestotackletheuseofinternetforspreadingradicalpropagandaandonline
recruitment.
Strongmeasuresagainstthosewhofinance,supportandencourageterrorismandprovideabreeding
groundtoterrorism.

Defence
TheDefenceConsultativeGroup(DCG)hasbeentaskedtoadvancethebilateraldefencecooperation
agenda.
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BuilduponUKsproposalsforpartnerships,throughactivitiesincludingmilitarytomilitarycooperation,
training,andexchangeofsubjectmatterexperts,researchandtechnologylinkagesaswellasdefence
manufacturing.
BritishcompaniesshouldlookatmultipleopportunitiesintheIndiandefencesector.
OtherthantradeindefenceequipmentIndiaUKshouldbuildpartnershipswithIndiancompaniestofocuson
manufacturing,technologytransferandcodevelopment.

LegalCooperation
BoththenationshaveshownstrongcommitmenttoenhancecooperationundertheMutualLegalAssistance
Treatyandagreedthatfugitivesandcriminalsshouldnotbeallowedtoescapethelaw.
IndiaandUKhavesignedaMemorandumofUnderstanding(MoU)toestablishbilateralcooperationactivities
inthefieldofIntellectualPropertytopromoteinnovation,creativityandeconomicgrowthinbothcountries.
TheMoUhelpsinestablishingabroadandflexibleframeworkfor:
Exchangeofbestpractices,
cooperationontrainingprograms,
technicalexchangestoraiseawarenessonintellectualpropertyrights(IPR),and
betterprotectionofIPR
ScienceandTechnology
MakeinIndiawillbeakeyaspectinthecooperationinscienceandtechnology.
Science,technologyandinnovationhaveasignificantroleespeciallytoboostentrepreneurship.
IndiaUKcleanenergyResearchandDevelopmentcentrehasbeenannouncedanditwouldbesetupwitha
10millionpoundinvestmentcorpus.
UKwillinvestIndianstartupsandalsocontributeforaStartUpIndiaVentureCapitalFund.

Analysis
TheBritishPrimeMinister,duetodomesticpolitics,hasassumedofficeonanantiimmigrationandantifree
trademandateandhenceshecouldnotadoptatoughstanceonvisas.
ByallowingpreferentialvisastoHighNetworthIndividuals(HNI)only,UKhasmissedanopportunityto
bridgeitsownskillgap.
TheimmigrationissuesshouldnotbeallowedtohamperrelationsinotherareassinceUKneedstorealise
thepotentialofIndiaasapartnerinpostEUexitera.
IndiaUKgoodstradeisnotofhighvolumesastheservicesandinvestment.Hence,Indiawouldliketo
enhancemerchandisetradesinceitdoesnothavetogothroughtheEUbureaucracynow.
Britainneedstobeclearandshowwillingnesstoexplorethepossibilityofapreferentialorafreetrade
agreement.
Connectingthedots
CriticallyanalysetheIndiaUKrelationshipintherecentpastgivingdueattentiontothehurdlesinthepathof
afruitfulpartnership.AlsohighlightIndiasimportanceforUKinthepostEUexitscenario.
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ENVIRONMENT

TOPIC:GeneralStudies3
Environmentalpollutionanddegradation
Majorcropscroppingpatternsinvariouspartsofthecountry,differenttypesof
irrigationandirrigationsystemsstorage

DelhipollutionlinkedtocropburningTruthandwayforward
AfterfewdaysofDiwali,NCRremainedunderathickblanketoffogwhichledtopoorvisibility.Deterioratingair
qualityhasalreadyusheredinangeramongsttheresidents.However,thistime,apartfromfirecrackerpollution,it
hasbeenfoundthatburningofcropstubbleisconsiderablyimpactingthepollutionlevels.
Delhihasregistereditsworstairqualityinrecenttimeswhichhaspromptedittocallgaschamber.
Pollutionindifferentpartsofthecapitalhastouchedhazardouslevelswithpotentiallyserioushealtheffects
onpeople,especiallyonchildren,theelderlyandphysicallyvulnerablepeople.
Thecaseofcropburning
IthasbeenoftenpointedoutthatpaddystubbleburninginHaryanaandPunjabisamajorreasonfor
affectingairqualityinDelhiduringtheonsetofwinter.
StubbleburningisacommonpracticefollowedbyfarmersintheseStatestopreparethefieldforsowingof
wheatinNovemberasthereislittletimeleftbetweentheharvestingofpaddyandsowingofwheat.
Reasons:burningstubbleisconvenient,cheapandpragmaticsolutiontogetridofit.Unlikethewheatstalk,
whichisusedtomakecattlefodder,thepaddystalkisofinferiorqualityandisofpracticallynouse.So,the
farmerscutitandsetitafire
ThispracticeisfollowedeveryyearandthusdespitesomeeffortsbytheStategovernmentstopreventit,the
problemofairqualitygettingaffectedinDelhiduringOctoberNovemberrecurs.
Hence,itisimportanttodiagnoseandaddressthefundamentalproblemsthatforcethefarmerstoburnthe
paddystrawonthefieldandnotutiliseitforanyproductivepurpose.
RiceandWheatrotation
BeingagriculturallyprogressiveStates,almostallfarmersinPunjabandHaryanagrowhighyieldvarietiesof
riceandwheat.
Historically,ricewasnotamajorcropgrowninPunjabandHaryana.InPunjab,riceaccountedforonly7.6%
ofthetotalcroppedareaduring19701973.Thisincreasedto36%during201113.
InHaryana,paddyareaincreasedfrom5.6%to19%duringthesameperiod.
Reasons:Extensivedevelopmentofirrigation,assuredprice(MSP)andsecuredmarket(government
procurement)haveinducedfarmerstogrowpaddyandexpandtheareaofcultivationconsiderablyovertime.

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Consequently,farmersinthistraditionallywheatgrowingbeltstartedcultivatingriceandwheatinrotation
yearafteryear.But,variousstudieshaveshownthatthericewheatrotationhasputlandandother
resourcesunderseverestrainlike
Depletionofsoilnutrients
Declineinwatertable
Buildupofpestsanddiseases
Micronutrientdeficiency
Also,theStategovernmentsinitiativestopushcropdiversificationasastrategytoovercometheseproblems
havenotconvincedfarmerstobreakthericewheatrotation.
Useofmachinesforharvestinghasseriousimplicationsforcropresiduemanagementatthefarmlevel.The
combineharvestercutsthecropwellabovetheground,leavingbehindsubstantialamountofstubbleonthe
field.Themachineleavestheresiduesinsuchastatethatitisdifficulttocollectthemmanually.
Asamatteroffact,fieldstudieshaveshownthateventhoughfarmersareawarethattheburningofstrawis
harmfultohealth,theydonothavealternativesforutilisingthemeffectively.
Hence,thereisaneedtosolvetheairpollutionproblembyfindingsustainabletechnologicalsolutionsthat
canhelpfarmersandsimultaneouslyalloweveryonetobreathecleanair.

Wayforward
Biomassproduction
Biomassprovidessafeandreliableenergy.
Theavailablepaddystrawcanbeeffectivelyusedforpowergeneration,whichwillgoalongwaytowards
overcomingtheproblemofdisposalofcropresiduesandpowerdeficitintheregion.
AsperMinistryofNewandRenewableEnergy,PunjabandHaryanahavenotmademuchprogressin
creatingbiomassbasedpowergenerationplantsascomparedtoStatessuchasMaharashtra,Uttar
Pradesh,KarnatakaandTamilNadu.
Thus,thereisgreatpotentialformakinginvestmentsinpaddystrawbasedpowerplantswhichcanhelp
avoidstubbleburningtoalargeextentandalsocreateemploymentopportunities.
Suchamethodcanimprovesoilmoistureandhelpactivatethegrowthofsoilmicroorganismsforbetterplant
growth.
However,suitablemachineryforcollection,choppingandinsituincorporationofstrawisrequired.
Forthis,initiativescanalsobemadetoconverttheremovedresiduesintoenrichedorganicmanurethrough
composting.
Arharproduction
IntheSubramanianCommitteereportonpulses,thepossibilitiescreatedbyanewvarietyofarhar(pigeon
pea)developedbyIndianAgriculturalResearchInstitute(IARI)werediscussed.
Thisvariety(PusaArhar16)hasthepotentialtobegrowninthepaddygrowingregionsofPunjab,Haryana
andUttarPradeshandeventuallyinallofIndia.
Itsyield(about2000kg/hectare)willbesignificantlygreaterthanthoseoftheexistingvarietiesandbecause
itssizewillbeuniform,itwillbeamenabletomechanicalharvesting,anattractivefeatureforfarmersin
northernIndiawhocurrentlyusethistechnologyforpaddy.
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Mostimportant,arharstraw,unlikepaddystraw,isgreenandcanbeploughedbackintothesoil.Inpaddy
straw,theproblemisthehighsilicacontent,whichdoesnotallowforeasydecomposition.
Therewillbeothersocialbenefitsofreplacingpaddywitharhar.Theywilluseessfertiliser,lesswater,and
feweremissionandinadditionwillreplenishthesoilwithnitrogen.

PictureCredit:http://images.indianexpress.com/2016/11/social.jpg
Otheroptions
Paddystrawcangeneratenewopportunitiesforindustrialusesuchasextractionofyeastproteinby
exploringscientificresearch.
Developmentofnewricevarietiesthatarebothrichingrainyieldandhighinstrawquality.Thiswillhelpto
maintainfoodsecurity,farmincomeandimproveenvironmentalsustainability.
Connectingthedots:
GrowingairpollutioninDelhiisnotonlyduetovehicularpollution.Examine.

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Relatedarticle:
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IASbabasDailyCurrentAffairs11thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs11thnovember2016/

IASbaba

11/11/2016

Archives

ECONOMY

TOPIC:

GeneralStudies3
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,development
andemployment.
GeneralStudies2
Developmentprocessesandthedevelopmentindustry
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.

Improvingeconomicprosperitythroughnationbranding
Whatisabrand?
Abrandisadistinguishedsymbol,mark,logo,name,word,sentenceoracombinationoftheseitemsthat
companiesusetodistinguishtheirproductfromothersinthemarket.
Whenthecompaniesbuildtheirbrandimageincustomersminds,theyareabletohaveamoreloyal
customerbasewhichiswillingtopayextraorbuymoreproducts.
CompaniessuchasAppleInc.,GoogleInc.,CocaColaCo.,andToyotaMotorCorparefourofthemost
valuablebrandsintheworld.
Hence,thesesuccessfulcompaniesspendworthwhiletime,energyandmoneymanagingtheirbrandsasitis
economicallybeneficialtothem.
Theyunderstandthattomaintainandgrowtheircustomerbasesmoreeffectively,theyhavetocarefully
nurturepositiveconsumerperceptionsoftheirproductsorservicesandcorrectnegativemisconceptions.
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Brandloyaltyenhancesthebrandimagewhichhelpsthecompaniestoexpandtheirservicestolargerbase.
ANationbrand
Justascompanies,nationsalsohavebrandimagesoftheirown.Theideaofcountryoforigin(COO)effect
thepowerofanexplicitorimplicitGeographicalIndicationaddsappealtoproductsandservicestocreatea
pricepremiumforthemandtostimulatecustomerloyaltytowardsthem.
Thereareindividualsperceptionsofnationsthatarebasedontheirexperiencesasconsumers,investors,
tourists,politicsandfollowersofglobalnewsandsocialmedia.
Theirperceptionsarealsobasedonexperiencescommunicatedtothembyothers,includingfamily,friends
andcolleagues.
Suchexperienceshelppeopletolearnanddevelopgeneralisedviewsaboutvariousnationsoftheworld.
Forinstance,Italyhasstylishproducts,FrenchwineisbestorGermancarsarewellengineered.
Also,therearesomenationsthatareperceivedtohaveuniquecapabilitiessuchasIsraelscybersecurityor
ChinaandIndiafortheirlowcostmanufacturingcapabilities.
Thoughitisknownthatsuchgeneralisationsmaynotperfectlycorrelatewithobjectivefacts,butwhatmatters
isthenationbrandsperception.
Positiveperceptionsofanationleadtocommerceinavarietyofformsandnegativeperceptionsmayreduce
commerce.

Indiaasanationbrand
In2015,Indiabecameworldsseventhmostvaluednationbrand.
Thenationbrandvaluationisbasedonfiveyearforecastsofsalesofallbrandsineachnationandfollowsa
complexprocess.TheGrossdomesticproduct(GDP)isusedasaproxyfortotalrevenues.
IndiasIncredibleIndiasloganworkedwelltoboostitsimage.
AmongBRICSnations,Indiaistheonlycountrytohavewitnessedanincreaseinitsbrandvaluewithall
othersBrazil,Russia,ChinaandSouthAfricaseeingadipintheirrespectivebrandvaluations.
Economyandnationbranding
Theeffectofanationsbrandonitseconomycannotbeunderstated.Withoutapowerfulandpositive
reputationornationbrand,nocountrycanconsistentlycompeteforconsumers,tourists,investors,
immigrantsandtherespectandattentionofothercountriesandtheworldsmedia.
Anationsbrandhasquantifiableeffectontourismindustryalongwithpowerfuleffectsonthevalueand
volumeofthenationsproductexportsandforeigndirectinvestment.ThishasadirectimpactonGDPofthe
nation.
TherecentMakeinIndiacampaignisaimedatencouragingbusinessestomanufactureinIndia.
Recently,Indiawasranked22ndonaninaugurallistoftheworldsbest60countries.Inasurveyreleasedat
theWorldEconomicForum2016,thecountrieswererankedonthebasisofsustainability,adventure,cultural
influence,entrepreneurshipandeconomicinfluence.
Indiaranks35thinadventure,39thincitizenship,29thinopenforbusiness,26thinqualityforlife.Butitranks
highNo.1inmovers,6thinheritageand14thinpower.

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Tourism
Tourismisoftenthemostvisibleaspectofacountrysbrand.Itisusuallyalsothemostcompetentmarketing
force.
Anationsideaintouristsmindscreatesavisualimageofthecountrywhichcanimpactmanyotherareasof
thenationsperformance.
InIndia,tourismholdsaspecialplaceinboostingtheeconomyandprovidingasustainablesourceof
livelihood.Withdiversetourismoptionslikepilgrimage,medical,natural,heritageetc.,theeconomyis
steadilycarvingitsnicheineconomyandemployment.
AsperWorldTravel&TourismCouncil,tourismgenerated 8.31lakhcrore(US$120billion)or6.3%ofthe
nationsGDPin2015andsupported37.315millionjobs,8.7%ofitstotalemployment.
Exports
Indevelopingcountries,productsandservicesarealltoooftenexportedasunbrandedcommodities.
ThisinturnfailstocapitaliseonthesignificantpotentialforenhancedmarketvaluethroughtheIPofbrand.
Hence,apowerful,distinctive,broadbasedandappealingnationalbrandisthemostvaluablegifta
governmentcangivetoitsexporters.
Indiasexportswere$261.1billionin201516wheremajorexportsfromIndiaincludesgemsandjewellery,
pharmaceuticals,chemicals,engineeringgoods,readymadegarmentsandpetroleumproducts.
Investments
Manyofthebestexamplesofrapidgrowthduringthelastcenturyoccurredbecausecertainplacesbecame
magnetsfortalent,investmentandbusinessventures.
Thus,intellectualcapacitycreatedavirtualcircleofacceleratingqualityandinnovationwhichinturn
generatedpositiveeconomicopportunities.
MakeinIndiabrandingisdonetoincreasetheinvestmentopportunitiesforthepotentialandinterested
investorstoexploreavailableprospects.
IndiahasalsoovertakenChinaasworldstopforeigndirectinvestment(FDI)destinationwithUS$63billion
ofFDIannouncedin2015includinghighvalueprojectannouncementsacrossthecoal,oilandnaturalgas
andrenewableenergysectors.

Conclusion
Anationbrandisanationalidentitywhichismadetangible,robust,communicableanduseful.
Aqualitybrandrepresentsarealcompetitiveedgeandisasinglemostvaluableitemofintellectualproperty
whichanynationpossess.
Requisiteknowledgeaboutprotecting,developingandexploitingnationsassetsisakeytotranslate
intangiblewealthofdevelopingcountriesintoeconomicgrowth.
Thephysicalproductsrequirephysicaldistributiontogenerateincome.Andwhereideascangenerate
wealth,theknowledgeeconomyfollowsstrategicdisciplineanddistributionchanneltobecomesuccessfulby
turningthoseideasintowealth.
Thus,nowisthetimeforIndiatooptimallyutiliseitsresources(time,manpowerandnaturalwealth)along
withopportunitiesincreatingaBrandIndiatoboosteconomicprosperity.
Connectingthedots:
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WhatisNationBrand?Howcanithelptoboosttheeconomicvalueofanation?Examine.
IsNationBrandonlyformonetarygains?Criticallyanalyse.

INTERNALSECURITY

TOPIC:GeneralStudies3
Linkagesbetweendevelopmentandspreadofextremism.
Roleofexternalstateandnonstateactorsincreatingchallengestointernalsecurity.

NaxalismEvolution,SpreadandChallenges

OriginofNaxalism
TheoriginofNaxalismdatesbackto1967whenapeasantuprisingoccurredintheNaxalbaripolicestationareain
WestBengalunderthelocalleadershipofCommunistPartyofIndiaMarxist(CPIM).Themovementstarted
undertheleadershipofpeoplesuchasCharuMajumdar
TheNaxalsusedtosnatchlandfromtherichandgiveittothepoorandthelandless.Themovementhasgradually
spreadtoalmost75districtsin9states.AfewcausestowhichtheriseofNaxalismcanbeattributedare:
Denialofrightsregardingsecurityoftenureorproduction
Forcedlabour
Exploitationbymoneylenders
Nonpaymentoffairwages

RecentConcerns
OnOctober24,theCommunistPartyofIndia(Maoist)lostaround30ofitscadresinacovertoperationjointly
organisedbytheGreyhoundsofAndhraPradeshandtheSpecialOperationsGroupofOdisha.
Thishasledtoclaimsbymembersofsecurityforcesandthemedia,thattimehascomefordownfalloftheNaxalite
movementinthecountry.However,thesameisnottrue,eventhoughthemovementhassufferednumerous
setbacksintherecentyears.
EvolutionoftheMovement
Duetotheverystrongandideologicalleadershipinitsinitialyearsthemovementhashadaverystrong
foundation.Duetothisstrongbase,ithasbeenabletofaceandtacklethechangingmethodsadoptedbythe
varioussecurityagenciesincontemporarytimesaswell.

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Itspopularityhasreducedamongtheurbansectionsbutitstillfindsfavouramongthemoreideologically
orientedelementsinuniversitiesandcolleges.Themovementconsequentlystillhasconsiderabledepth.Due
tothisreasonitwouldnotbecorrecttocompareittoBokoHaram.
Inmanyremoteareasinthemajoraffectedstatesofthecountry,theMaoistmovementisstillaforceto
reckonwithanditrequiresthepresenceoflargesecurityforcestokeepitincheck.
Withtimethecharacterofthemovementhaschangedandithasbecomemorebrutalandinvolvedalotof
bloodshed.
IthasstillmaintaineditsRobinhoodstylecharacterofbeingtruesupporterofthepoor,especiallythetribal
people.
WestBengalisonestate,whereduetoeconomicanddevelopmentalmeasuresthemovementhasseen
signsofweakening.

EvolutionofStrategy
AlotofchangeshaveoccurredsincethefirstphaseofNaxalism(1967to1972)andtodaysMaoistmovement.Itis
saidthatthesechangesareareactiontoshiftintacticsonthepartoftheadministration,employingacombination
ofcounterterroristandcounterinsurgencytechniques.
Inpresentdaythemovementhasbecomeahighlyrigidandmilitaristicmovementwiththeintentionof
terrorisingpeoplethanonsupportingpeoplescauses.Ithassheditsoriginalideologicalandintellectual
fundamentals.
Itmaintainsitsownsmallarmsfactoriesformanufacturingitsweaponry.
Ithasawellestablishedarmstrailtoobtainstateoftheartweaponsfromsourcesoutsidethecountry.
ItisextremelyadeptintheuseofIEDsandresortingtounconventionalmethodstodeploythem.Thishadled
tolargescalesecurityforcecasualties.

GeographicalResurgenceoftheMovement
2015and2016hasseenarevivaloftheMaoistmovementafteradownfallobservedin20132014.
TheentireDandakaranyaregion,whichincludesareasofTelangana,AndhraPradesh,Chhattisgarh,Odisha,
JharkhandandpartsofMaharashtra,showsignsofaNaxaliterevival.Thisregionisofhighstrategic
importanceforIndia.
ThemovementisalsoradiatingouttootherpartsfromthisepicentretoTamilNadu,KarnatakaandKerala.
InAndhraPradesh,reemergenceofNaxaliteactivityhasbeenobservedintheArakuValleyafternearlytwo
decades.Threatstopoliticiansandtheirbackersarebeingfreelyheldout.
InChhattisgarh,Dantewada,Bastar,BijapurandSukmaarethemaincentresofMaoistactivityandareas
withinthesedistrictsremainoutofboundsforthelocaladministration,thepoliceandthesecurityforces.

Analysis
PresentdayMaoistmovementhasdefinitelymovedawayfromtheinitialideologyandlacksthesimilarcredibilityas
theinitialmovement.

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Otherthantheideology,theleadershiphasalsochangedanddoesnotmatchuptothecapabilityandstatureof
leaderswhostartedthismovement.
However,itcannotbesaidthatthemovementisdyingdownbecauseofitscontinuedpopularityinmanyrural
pocketsandmoreneglectedtribalregions.PeoplestillbelievethatMaoistsarethetorchbearersofchange.The
governmentandtheadministrationandthesecurityagenciesneedtoensurethattheyalsobringchangesintheir
approach.Lawandorderenforcementalonecannothelpsolvethisproblem.Thereisneedtobringdevelopment.
Empowermentofruralpoor,downtroddenandthetribalpopulationisessential.Thiswillhelpinbuildingtrustand
reducethepopularityofNaxalsamongthesesectionsofthepeople.
Effortshavebeenovertheyearstoimprovetheconditionoftheneedybutthereisstillalotofgroundthathastobe
covered.ItisthisgapwhichtheMaoistsareusingtotheiradvantageandexploitingthesituation.
Connectingthedots
Naxalismposesnumerouschallengestotheinternalsecurityofthecountry.Discussthosechallengesand
suggestmeasuresthatshouldbetakentoovercomethosechallenges.
DefineInternalSecurity.Criticallyanalysetheroleplayedbyvariousinternalsecurityagenciesandthe
governmenttofighttheproblemofNaxalism.
Relatedarticle:
Malkangirikillings:WhatishappeninginMaoistaffectedareas?

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IASbabasDailyCurrentAffairs14thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs14thnovember2016/

IASbaba

11/14/2016

Archives

INTERNATIONAL

TOPIC:GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,Indiandiaspora.

IndiaJapanCivilNuclearDeal

HistoricStep
IndiahassignedahistoriccivilnucleardealwithJapanduringtheannualbilateralsummitheldinTokyo.
Thenegotiationshavebeenunderwayforsixyearsbutwerestrengthenedduringthe2015visitofPrime
MinisterShinzoAbetoIndiawhentheprinciplesoftheagreementweredecidedupon.
Earlier,thenegotiationswerestuckbecauseofpoliticalresistanceinJapanafterthe2011disasteratthe
FukushimaNuclearPowerPlant.
IndiaisthefirstnonmemberoftheNonProliferationTreaty(NPT)tohavesignedsuchadealwithJapan.
JapanhasearlierhadissuesregardingliabilityofJapanesecompaniesfornuclearaccidents,reprocessingof
spentnuclearfuelandfuturetestingofnuclearweaponsbyIndia
Indiahasdeclaredamoratoriumonnucleartestingsince1998.However,duetoconcernsaboutother
emergingandneighbouringnationsbeingequippedwithnucleararms,ithasnotsignedtheNPT,contending
thatitisdiscriminatory.
IndiasNuclearDeals
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ThelistofcountrieswithwhichIndiahasalreadysignedabilateralcivilnucleardealareCanada,USA,Argentina,
UnitedKingdom,France,Namibia,Kazakhstan,Russia,Mongolia,SouthKoreaandAustralia.

ImportanceforIndia
ThedealwillallowJapantosupplynuclearreactors,fuelandtechnologytoIndiawhichwasearlier
prohibited.
ItisimportantforIndiasrenewableenergyplansespeciallyconsideringthetargetof175gigawatts(GW)of
energygenerationby2022andthetargetofnuclearcapacityof63GWby2032.
SincethisisthefirsttimethatJapanhassignedanucleardealwithanonmemberofNPT,itaddscredibility
totheIndiasprudentbehaviourwithrespecttouseofnucleartechnology.
ItisindeedamuchneededmoralboostforIndiasaspirationsofgettingmembershipintheNuclearSuppliers
Group(NSG).
Thesigningofthedealwillboostthelowvolumeanddippingbilateraltrade.
Itwillalsogiveanimpetustothestrategicmilitaryanddefencerelationship.
ThedealcanbeinstrumentalincounteringChinasgrowingregionalinfluenceandindealingwiththe
uncertaintyofUSforeignpolicyaftertheUSelectionoutcome.
FromaJapanesepointofview,negotiationswithUSbasedWestinghouseElectricareinadvancedstages
andtheyhaveagreedtobuildsixnuclearreactorsinIndia.Japanesecompanies,suchasToshiba,have
significantholdingsinWestinghouseandotherU.S.andFrenchpartnersnegotiatingfornuclearreactors
now.Signingofthisdealmakesiteasierforsuchdealstomaterialise.

KeyPointsoftheDeal

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PictureCredit:http://im.rediff.com/news/2016/nov/11deal.jpg

Criticism
Therearestillcertainhurdleswhichhavetobeovercometoensurethatbothnationscanbearmaximumfruitsfrom
thisdeal.
ThenucleardealhastobeapprovedbyJapansParliament.Theparliamentwillhaveitsownconcernsinthe
lightofIndiasreferencetorethinkingofthenofirstusepolicy.
CriticsinJapanmayfeelthatenoughassuranceshavenotbeenobtainedfromIndiaonanucleartestban.
IndiamaybecriticisedforgivingintoomuchbecauseaspertheagreementitallowsJapanachance
suspendthedealincaseIndiatestsanuclearweapon.Also,JapanhastheoptiontonotifyIndiaofthe
terminationofthepactwithoneyearsnotice.
ThereisalsoambiguitywithrespecttothenullificationclauseaccordingtowhichifIndiaconductsanuclear
test,Japanshallstopitscooperationandcanceltheagreement.Thereisambiguitywhethertheclauseis
legallybindingornot.IndiaclaimsittobenotlegallybindingwhereasJapanconsidersitotherwise.
Analysis

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Itisimportantthattheagreementgoesforwardinasmoothmanner.Withthechanginggeopoliticsaroundtheworld
thisemergingpartnershipholdsalotofimportance.
Thisdealopensthedoorforcollaborationbetweentheindustriesoftwocountriesandwouldbolsterbilateralties.
Thiswillalsobehelpinbuildingacleanenergypartnershipbetweenthetwonations.Thispartnershipwillalso
comehandyintacklingtheChinafactor.IndiaandJapanneedtobeverycautiousoftheimpactonChinadueto
thisagreement.ChinahasbeenpreparingtotackletheinfluenceofgrowingJapanIndiatiesinAsiabybuilding
uponarelationshipwithRussiaandPakistan.
ThisdealbringsalotofpositivesforIndiawhichcanbeusedtoitsadvantageincampaigningfortheNSG
membership.However,theonlymajorquestionthatprevailsishowIndiaplanstogoaheadwithitsnucleartesting.
Connectingthedots
CriticallyanalyseIndiascivilnucleardealwithJapananddiscussthebenefitsthatIndiacanobtainin
contemporarygeopoliticsasaresultofthisdeal.

NATIONAL

TOPIC:GeneralStudies2
Separationofpowersbetweenvariousorgans,disputeredressalmechanismsand
institution
Structure,organizationandfunctioningofExecutiveandJudiciary.

SatlujYamunaLinkCanalWatersharingdisputescontinueinIndia
Innews:SupremeCourtverdictonSYLcanalwaspassedwhichsaidthatitwasunconstitutionalforthePunjab
stategovernmenttoterminateawatersharingagreementwithotherstates.
Background:
Ataninterstatemeetingconvenedbythecentralgovernmentin1955,thetotalwateroftheRaviandBeas
15.85millionacrefeet(MAF)hadbeendividedamongRajasthan(8MAF),undividedPunjab(7.20
MAF)andJammuandKashmir(0.65MAF).
ThecreationofHaryanafromtheundividedPunjabin1966begantheproblemofgivingHaryanaitsshareof
riverwaters.
PunjabopposedtosharingwatersoftheRaviandBeaswithHaryana,citingriparianprinciples.
InMarch1976,adecadeafterthePunjabReorganisationActwasimplemented,theCentreissueda
notificationallocatingtoHaryana3.5MAFoutofundividedPunjabs7.2MAF.
TheSatlujYamunaLinkCanal

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PicureCredit:http://www.frontline.in/static/html/fl2116/images/20040813004202502.jpg
ToenableHaryanatouseitsshareofthewatersoftheSutlejanditstributaryBeas,acanallinkingtheSutlej
withtheYamuna,cuttingacrossthestate,wasplanned.
In1981,therewasatripartiteagreementbetweenPunjab,HaryanaandRajasthanwhichwasnegotiatedby
PMIndiraGandhi.
In1982,theconstructionofthe214kmSutlejYamunaLink(orSYL)canalbeganinwhich122kmwasin
Punjaband92kminHaryana.
TheavailablewatersofRaviandBeaswererecalculatedtobe17.17MAFandthestatesweregivenrevised
waterPunjab(4.22MAF),Haryana(3.5MAF)andRajasthan(8.6MAF).
However,apoliticalpartyAkaliDalopposedthisagreementandstartedwithKapoorimorchatoopposethe
constructionoftheSYLcanal.
In1985,PunjabAccordwassignedbetweenPMRajivGandhiandAkaliDalleader.Inthis,itwasagreedthat
atribunalwouldverifytheclaimsofbothPunjabandHaryanaonriverwaters.
In1987,theEradiTribunalheadedbySCjudgeEradirecommendedanincreaseinthesharesofPunjab(5
MAF)andHaryana(3.83MAF),whiletakingintoaccountutilisablesuppliesofsurpluswateratbasestations.
Keydevelopmentssincethetribunalrecommendation
Thetribunalsdecisionwasnotnotified.
Meanwhile,Punjabexperiencedmilitancyinthatperiodandcontinuedreigningterrorinprocessofcanal
constructionbyattackingseniorcanalstaffers.
In1990,Haryanarequestedcentralgovernmenttotakeuptheissuewithacentralagencybutitmadeno
progress.

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Finally,SupremeCourtwasapproachedin1996whereitdirectedPunjabtocompletethecanalwork.In
2002,SCorderedPunjabtocompletethecanalinayear.
In2004,thePunjabAssemblypassedThePunjabTerminationofAgreementsAct,2004,terminatingits
1981watersharingagreement,andthusjeopardisingtheconstructionofSYLinPunjab,justafterSC
directedittoformcentralagencytocompletecanalwork.
Apprehendingtrouble,thenPresidentA.P.JKalamsoughttheSupremeCourtsopiniononthe2004Actunder
Article143(1)oftheConstitution.
Art143confersinthePresidentofIndiathepowertoconsultSupremeCourtatanytimeitappearstothe
Presidentthataquestionoflaworfacthasarisen,orislikelytoarise,whichisofsuchanatureandofsuch
publicimportancethatitisexpedienttoobtaintheopinionoftheSupremeCourtuponit.
ItisdiscretionaryfortheSupremeCourttoanswerornottoanswerthequestionsputtoitunderArt143(1)
butitisboundtogiveadviceifitcomesunderArt143(2).

Similardisputes
Internationally,Indiahasbeenembroiledinwaterdisputeswiththreeofitsneighbours:Pakistan(Indusriver),
China(Brahmaputrariver)andBangladesh(Teestariver).
Internally,therecentCauveryriverwaterdisputesawsimilaractionofpassinglegislativeassemblyresolution
bythestategovernmenttonotshareCauverywaterwithTamilNadu.ThiswasalsoviolationofSupreme
CourtOrdertoreleasecertaincusecsofwaterforacertaintimeperiod.
OtherdisputesintermittentlycroppingupandyetnotsolvedareMullaperiyardisputebetweenTamilNadu
andKeralaMhadeyidisputebetweenKarnatakaandGoaandtheneverendingKrishnaandGodavaririver
waterdispute.
Thisshowsthatthereisaneedofpermanentandregularindependentbodywhichlooksafterinterstate
waterdisputesinIndiaunderInterstateRiverWaterDisputesAct,1956whichisenactedunderArt262of
IndianconstitutionwhichprovidesarolefortheCentralgovernmentinadjudicatingconflictssurrounding
interstateriversthatariseamongthestate/regionalgovernments.
Punjabslegislativeadventurismandimpact
TherewasnodoubtthatPunjabTerminationofAgreementsAct,2004wouldnothavesurvivedjudicial
scrutinyasitdefaultedthe1981agreement.
TheSChasgivenreasonsfrompreviousverdictsrelatingtotheCauveryandMullaperiyardisputesby
reiteratingtheprincipleaStatecannot,throughlegislation,doanactinconflictwiththejudgmentof
thehighestcourtwhichhasattainedfinality.
TheverdictreimposesthefactthatitwouldbedestructiveoftheruleoflawandfederalismifaStatewereto
beallowedtooverpowerjudicialpowersbynullifyingaverdictthatisbasedbothonfactandlaw.
Suchdisputesonwaterissuescreatesacompetitionamongmajorpoliticalpartiesonwhoamongthemisthe
bestprotectoroftheStatesinterests.
ThisattitudeleadstocreationofadisturbingtendencyamongStatestobejudgesintheirowncause,
especiallyinwaterissues.
Ithasrecentlybeenregularlyobservedthatpoliticalpartieshaveresortedtolegislationsorassembly
resolutionsratherthannegotiations.Eventheoppositionpartiescollaborateinsuchissueswithequalzestso
thattheyarealsovisibleinsupportofthecause.
Hence,nowistheneedtotakeupthepathofnegotiationandconciliationandnottakeactionsunilaterally
wheremorethanonestateisinvolved.
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85%ofthecanalworkisalreadycompletedintheSatlujYamunaLinkCanal.JustasHaryanacangetaccessto
watersofSatlujriver,evenPunjabcangetaccesstoYamunawaters.Thestateshavetotalk,negotiateanddecide
mutuallyandnotabrogateagreements.ItisafactthatIndiasexperimentswithwaterimportsthroughcanalshave
notalwaysbeensuccessful.Butintheeraofclimatechange,whenIndiafacesdroughtandfloodchallengesin
sameyear,itrequiresthesolutiontolongpendingdemandofconnectingrivers.
Connectingthedots:
Itisbeingincreasinglywitnessedthatstatesaredefyingcourtordersindisputes.Whatisthefalloutofsuch
actsbystatesandwhatarethepossibleactionsthatcanbetakenbycourtssothattheirrelevanceisnever
compromised?
Whatisthemeaningofjudgeintheirowncause?Whatshouldthestatesdotosolvetheirinterstate
disputes?

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IASbabasDailyCurrentAffairs15thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs15thnovember2016/

IASbaba

11/15/2016

Archives

ECONOMY

TOPIC:

GeneralStudies3
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,development
andemployment.
Inclusivegrowth
GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.

SignsofrevivalofeconomyEncouragingthegrowthmomentum
Beinginthemiddleoffiscalyear201617,itgivesabriefideaaboutwheretheeconomyisheading.
Theanalysisofthetrendisasusualplaguedbyconflictingsetsofdata.
Nationalincomedatafirstquarter(AprilJune)GDPgrewat7.1%andvalueaddedinmanufacturinggrew
by9.1%
IndexofIndustrialProduction(IIP)firstquarter(AprilJune)manufacturingfellby0.6%
CentralStatisticalOfficeitnowusesIIPtomeasureasmallsegmentofmanufacturingandcorporatedata
forestimating75%ofthemanufacturingsector.
Thus,thereisaneedtocrosscheckthedataonereliesupon.Atthesametime,anattemptcanbemadetofindout
ifthecurrentyearwillbebetterthanthelastyearbylookingattheperformanceofdifferentsegments.
Agriculturalproduction
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Thissegmentisexpectedtodobetterbyconsideringtheproblemsfacedbyitfromsupplysideasits
performanceispurelybasedonmonsoon.
Intheshortrun,rainfallisanimportantfactorinfluencingagriculturalproduction.
Indiareceived97%ofthelongperiodaverage(LPA)oftherainfallthismonsoon
Thisissomewhatlowerthanwhatwasoriginallypredictedbutbetterthanpreviousyearsmonsoonwhich
wasonly86%oftheLPA.
TheSouthwestMonsoonrainfallinthecurrentyearis100mmhigherthanlastyear,whichisapproximately
13%higherthanlastyear.
Basedonastudyofimpactofrainfallonagriculturalproduction,thereshouldbeanincreaseinvalueadded
inagriculturalandalliedactivitiesby2.7%.

Demandsideperspective
Here,fourelementsneedtobeexamined:
1.Privateconsumptionexpenditure
Amajorfactorcontributingthepushistheimplementationofrecommendation7thpaycommission.
Withitsimplementation,governmentssalaryandpensionexpenditureareexpectedtoriseby20%.
However,astherecommendationsweremadeeffectivefromAugust2016,theimpactonthe
productionofconsumptiongoodsisexpectedtobeseeninthesecondhalf.(Eg.Purchaseoftwo
wheelers)
2.Governmentexpenditureparticularlyoninvestment
Thetotalgovernmentexpenditureshavebeen52%ofthebudgetedexpenditureinthefirsthalf.
Thisyearhasshownriseincapitalexpenditureby4.6%overpreviousyear.
Suchincreasesincapitalexpenditureisencouragingastheyleadtogreaterinvestment.
Ithastobenotedthatthelargershareofpublicinvestmentscomefrompublicsectorenterprises.
Fornow,theroadandrailwaysareseeminglydoingwellinthisarea.
3.Privateinvestmentparticularlycorporateinvestment
Inpastseveralyears,corporateinvestmenthasbeenroughlyonethirdoftotalGrossFixedCapital
Formation.Hence,thisisacriticalareatobeconsideredforanysignsofeconomicrevival.
CapitalFormation=netadditionsofcapitalstocksuchasequipment,buildingsandotherintermediate
goods.
GrossFixedCapitalFormationreferstothenetincreaseinphysicalassets(investmentminusdisposals)
withinthemeasurementperiod.Itdoesnotaccountfortheconsumption(depreciation)offixedcapital,and
alsodoesnotincludelandpurchases.ItisacomponentofexpenditureapproachtocalculatingGDP.
TheRBIhasbeenalsomakingforecastofcorporateinvestmentsbasedonmethodologyoutlinedbyformer
RBIgovernorC.Rangarajan.
Thebulkofinvestmentexpendituresinanyyeararetheresultoftheprojectsinitiatedinthe
previoustwotothreeyears.

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However,therehadbeenslowdowninnewprojectsundertakeninpastfewyears,henceitisunlikelythat
investmentexpendituresbythecorporatesectorin201617canbehigherthanin201516.
AnRBIstudyshowsthatsubstantialinvestmentintheprojectsinitiatedin201617willberequiredtoequal
previousyearstotalinvestmentexpenditures.
In201516,thetotalcostofprojectsinitiatedwithinstitutionalassistancewasRs.954billionandRs.878billion
in201415.ThisisminimalincomparisontoRs.2,754billionin200607.
4.Externaldemand
Theexternaldemandislargelyareflectionoftheworldeconomywhichisatpresentshowingsluggish
recoverywhereallforecastsareshowingslowdowninworldgrowthratein2016.
Theworldtradeisslowing.EvenIndiasexportsstarteddecliningin201516with15.5%declination.
Themostcontributingreasontodeclinetradewasfallinthevalueofoilexports.
Butthereisanexpectationofslightimprovementin2017.InlatestSeptemberreport,theexportsgrewby
4.03%.Alongwithit,Indiahasacomfortablecurrentaccountthisyearduetosharperdeclineinimports.
However,notmuchstimulusisexpectedbywayofexternaldemand.

Agoodstart
TheIndianeconomyappearstohaveattainedcertainstabilityaspriceshavebeensofarundercontrol.
BothCPIandWPIinflationhasremainedbelow5%whichhavebeeninfluencedlargelybyimproved
agriculturalproduction.
Though,thefiscaldeficitishighatthemoment,ithasbeenundercontrol.Inaddition,thecurrentaccount
deficithasbeenlow.Onalowside,thebankingsectorisunderstressforalongtime.
However,intoto,thesefavourablefactorspointtowardssustainedeconomicgrowth.
CertainreformslikeamendmenttoInsuranceActtofacilitatelargerforeigninvestment,enactmentof
Bankruptcyact,regulatorfortherealestatesectorandpossibilityofGSTimplementationarelegislationsin
rightdirectionwhoseimpactwillbeseeninsometime.
IASbabasviews
TheIndianeconomyisshowingencouragingsignswithgoodmonsoons,improvedagriculturalperformanceand
resultantincreaseinruraldemand,increasedgovernmentcapitalexpenditureandriseinprivateconsumption
expenditureduetoimplementationof7thPayCommission.Thoughthereareminorsetbackssuchasstagnationin
corporateinvestmentsandnotencouragingexternalenvironment,thegrowthrateofGVA(grossvalueadded)at
basicpricesisexpectedtobeat7.6%(7.2%in201516).However,thismomentumhastobemaintainedby
nullifyingthedisruptionscausedduetodemonetisation,asearlyaspossible.
Connectingthedots:
TheIndianeconomyisshowingasenseofrevival.Doyouagree?Substantiate
Thebankingsectorcontinuestoremaininstressforlongthoughothersectorsareshowingsome
improvement.Howcaneconomyflourishinsuchenvironment?Criticallyanalyse.

CONSTITUTION/POLITY
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TOPIC:GeneralStudies2
Separationofpowersbetweenvariousorgans,disputeredressalmechanismsand
institutions.
Structure,organizationandfunctioningoftheExecutiveandtheJudiciaryMinistries
andDepartmentsoftheGovernment.
IndianConstitutionhistoricalunderpinnings,evolution,features,amendments,
significantprovisionsandbasicstructure.

CollegiumSystemPastandPresent

WhatisCollegiumSystem?
AsystemofappointmentandtransferofjudgeswhichisaresultofaseriesofjudgmentscalledJudges
Cases.
Collegiumisabodyofseniorapexcourtjudgesresponsibleforappointmentandtransferofjudgesofthe
SupremeCourtandHighCourt.
ThecollegiumwasaproductoftheinterpretationsofconstitutionalprovisionsbytheSupremeCourtinthe
threeJudgesCases.
ItisnotaresultofanActofParliamentorbyaprovisionoftheConstitution.
Judgesofthehigherjudiciaryareappointedonlythroughthecollegiumsystemandthegovernmentssay
comesinoncethenameshavebeendecidedbythecollegium.
Thegovernmentcanobjecttothecandidatureofanyofthenamesrecommendedandseekclarifications
concerningthesame.However,ifthecollegiumdecidesonthesameagainthegovernmentisboundto
appointthemasjudges.
MembersoftheCollegium
SupremeCourtCollegium
TheSupremeCourtcollegiumisheadedbytheCJI.
ComprisesfourmoreseniormostjudgesoftheSupremeCourt.
HighCourtcollegium
TheHighCourtcollegiumisledbyitsChiefJusticeoftherespectiveHighCourt
ComprisesfourmoreseniormostjudgesofthatHighCourt.
NamesrecommendedforappointmentbyaHighCourtcollegiumreachesthegovernmentonlyafter
approvalbytheCJIandtheSupremeCourtcollegium.

ConstitutionalProvisions
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Article124(2)andArticle217oftheConstitutionofIndiaprovideforappointmentofJudgesoftheSupreme
CourtandHighCourts.
Article124(2):AppointmentofJudgesofSupremeCourt
AppointmentbythePresident
InconsultationwithjudgesofSupremeCourtandHighCourtintheStatesashedeemsfit
Eligibletoholdofficeuptotheageof65years
ChiefJusticeofIndia(CJI)shallbeconsultedincaseofappointmentofjudgesotherthantheCJI
Article217:AppointmentofJudgesofHighCourt
AppointedbythePresident
InconsultationwiththeCJI,GovernoroftheState,
CJIofthehighcourtshallbeconsultedincaseofappointmentofjudgesotherthantheCJI

JudicialProvisionsJudgesCase

FirstJudgesCase:SPGuptaVsUnionofIndia
TheprimacyoftheCJIinmattersofappointmentandtransferswasquestioned.
ThetermconsultationusedinArticles124and217didnotmeanconcurrence.
ThisimpliedthatalthoughthePresidentwillconsulttheconcernedpersonsasmentionedintheConstitution
buthewasnotboundbytheiradvice/recommendation
ThejudgmentmadetheExecutivemorepowerfulintheprocessofappointmentofjudgesofHighCourts.
SecondJudgesCase:TheSupremeCourtAdvocatesonRecordAssociationVsUnionofIndia
OverruledthedecisioninFirstJudgesCase.
DevisedtheCollegiumSystem
GaveprimacytotheCJIinmattersofappointmentandtransfersandhighlightedthatthetermconsultation
wouldnotdiminishtheprimaryroleoftheCJI.
TheCJIshouldmakerecommendationsinconsultationwithhistwoseniormostcolleagues.
ThirdJudgesCase:PresidentialReferencebyPresidentKRNarayanan
ThepurposewastogivemeaningofthetermconsultationunderArticle143.
SupremeCourtcameoutwiththepresentformofCollegiumSystem.
TherecommendationshouldbemadebytheCJIandhisfourseniormostcolleagues,insteadoftwo.
CriticismoftheCollegiumSystem
ItisnontransparentsystemwithoutanyofficialmechanismorsecretariatlawfullyenactedbytheParliament.
ThereisnoprovisionregardingthecollegiumsystemorsuchabodyintheConstitution.
Itlaysdownnoprescribednormsregardingeligibilitycriteriaoreventheselectionprocedure.
Noinformationregardingitsmeetings,proceduresandmethodsisthereinthepublicdomain.
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Lawyersalsosufferfromlackofknowledgewhethertheirnameshavebeenconsideredforelevationasa
judge.
Itisasystemwherethemembersofthejudiciaryareservingtheirownends.
Judicialprimacyinmakingappointmentsisnotapartofthebasicstructure.
Thismethodgivesexcesspowerstothejudiciaryanddoesnotgivegenuinebroadmindedlaypersonstobe
apartoftheprocessofselection.

NationalJudicialAppointmentsCommission
JusticeMNVenkatachaliahCommissionin2033recommendedtheformationofNationalJudicial
AppointmentsCommission(NJAC)toreplacethecollegiumsystem.
ThepresentgovernmenttriedtogiveshapetotheNJACbywayofthe99thConstitutionalAmendment.
SupremeCourt,throughafivejudgeconstitutionalbench,declaredtheNJACasunconstitutional.
ThebenchclaimedthatNJACwouldhavetakenawaytheprimacyofthejudiciaryintheprocessof
appointmentsandtransfers.
NJACwouldhavecomprisedoftheCJI,histwoseniormostcolleagues,theLawMinister,andtwoeminent
persons,whowouldbejointlyappointedbythePrimeMinister,theLeaderoftheOppositionandtheCJI.
AlternativeMemorandumofProcedure
ThejudiciaryandthegovernmenthavedecidedtodraftanewMemorandumofProcedure(MoP)toguide
futureappointments.
Thiswilladdresstheconcernsregardinglackofeligibilitycriteriaandtransparency,establishmentofa
Secretariatandacomplaintsmechanism.
TheMoPisstillnotfinalisedduetolackofconsensusonvariousmattersbetweenthegovernmentandthe
judiciary.
Analysis
Inabsenceofagreementtheappointmentsarestillbeingmadebythecollegiumsystem.However,thishasledto
animpassebetweenthegovernmentandthejudiciary.Thishasanimpactonthedeliveranceofjusticesinceitis
leadingtodelayinfillingvacanciesinthejudiciary.Thejudiciarygovernmentfaceoffcannotgoonindefinitelyand
theyshouldfinalisetheMoPattheearliestpossible.Bothjudiciaryandgovernmentneedtointeractinadirect
mannertocometoaresolution.Thiswilleasetheincreasingpressureonthejudiciarywithrespecttothenumberof
pendinglitigations.
Connectingthedots
Criticallyanalysethecollegiumsystemofappointmentofjudges.
Discussanalternativestrategytoresolvethejudiciarygovernmentconflictregardingjudicialappointments
andtransfers.Useexamplesofexistingsystemsofjudicialappointmentsadoptedinothercountriesaround
theworldinsupportofyouranswer.

MUSTREAD
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ThebreakthroughwithJapan
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Thetragedyofthecommons
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ImpoliticmusingsNuclearNofirstUsepolicy
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TheLegalAidLifeline
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Forestrightsandwrongs
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IASbabasDailyCurrentAffairs16thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs16thnovember2016/

IASbaba

11/16/2016

Archives

SOCIALISSUES

TOPIC:GeneralStudies1
Roleofwomenandwomensorganization,populationandassociatedissues,poverty
anddevelopmentalissues
Socialempowerment

CrimesagainstwomenTrendsandAnalysis

FindingsofNationalCrimeRecordsBureau
AsperfindingsbyNationalCrimeRecordsBureau(NCRB)seriouscrimesagainstwomenhaverisenfrom
237perdayin2001to313perdayin2015.
Inadditiontothis,therehavebeenhugeinterstatevariationsinthetheiroccurrence.
Delhi,HaryanaandAssamwerethe3worststatesintermsofcrimesagainstwomenin2001and2015.
Crimesrangefromrape,kidnappingandabduction,dowrydeathsandcrueltybyfamilymembersandoutof
allthesecrimes,rapesconstitutealmostonethirdofthecrimes.
Allsectionsofthefemalessuchasminorgirls,adolescentandoldwomenhavefrequentlybeenvictimsof
brutalrapesandmurders.
Higherincidenceofcrimesduring20012015coupledwithlowconvictionratesuggeststhatwomenaremore
vulnerabletoseriouscrimes.
Factorsinfluencingwomencrimes
AnincreaseinStateGDP(percapita)leadstoareductionintheincidenceofseriouscrimesagainstwomen.
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Greateraffluenceandanincreasingsexratiobothhelpinreducingtheoccurrenceofsuchcrimes.However,
askewedsexratiounderminestheimpactofaffluence.Example:DelhiandHaryanacontinuetobetheworst
Statesdespitebeingaffluentbecauseoftheverylowsexratio.
Reductionofalcoholismandsubstanceabuseamongmenorbettertreatmentoftheseaddictionsespecially
inmoreaffluentstatesreducestheprobabilityofsexualorphysicalassaultsonwomen.
Twoothermajorfactorsincludefemaleliteracyandlabourforceparticipationbecauseboththesefactorshelp
inincreasingthefemalebargainingpower.
Insuchcasewomenalsofaceabacklashfrommalespousesespeciallythosewhoareunemployed.Such
partnerstrytoasserttheirsuperioritybyretaliatoryphysicalandsexualviolence.
Ajointeffectoffemaleliteracyandlabourforceparticipationisfavourable,thoughlessthanthepositive
individualeffectsoffemaleliteracyandlabourforceparticipation.Exitoptionsforliterateandemployed
women,facingbrutalityandharassmentinmarriage,aremoreviable.Hence,thiscanhelpinreducing
domesticviolence.
Thehighertherural/urbanpopulation,thehighertheincidenceofseriouscrimesagainstwomen.
Religionisaverykeyfactor.Thiscanbeunderstoodfromthefindingthatthereishigherfrequencyof
domesticviolenceanddowryrelatedviolenceamongHindusthaninMuslims.
Exposuretomediathroughvariouslanguageshasdualeffectoneofbetterreportingofcrimesanda
deterrenceeffect.Acombinedpositiveeffectofbothleadstoreductioninseriouscrimes.Example:TheDelhi
Nirbhayarapecasewhereinmediaactivismledtoquickarrestofaccused.

TherateofcrimesonwomenbetweenCensus2001andCensus2011isasbelow:

PictureCredit:http://s3.firstpost.in/wpcontent/uploads/2013/09/01_crimesagainstwomenoverview.jpg

RoleofGovernance

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AmartyaSenasapartofstudiesongenderequalityhaspopularisedtheconceptofmissingwomenand
alsoemphasisedthatrapeandotherseriouscrimesagainstwomenarerelatedtoinefficientpolicingand
judicialsystems.
ThequalityofgovernanceinStatesisthekeytounderstandingthehugevariationinincidenceofserious
crimesagainstwomen.
Usingthemeasuresofgovernanceasperarecentstudy,itisseenthattheincidenceofseriouscrimes
againstwomendeclineswithbettergovernance.
Poorrateofwomenparticipationinvotingduringelectionsandpoorelectoralparticipationleadstopolicy
implementationwhichlackssupportofrepresentativesforwomenorientedpolicies.Duetothisadequate
focusonwomenpreferencesisnotlaid.
Analysis
Onthebasisoftheabovefindings,weneedtoobservethatifthecrimesagainstwomenarestillrising
despitegreateraffluenceandincreaseinthesexratioduring200115,theanswermustlieineffective
governanceandimprovementofthesexratiosincertainstatessuchasBihar,DelhiandMaharashtra.
Thisisoneofthebiggestproblemsfacedbythedevelopingworldinmoderntimes.Therefore,alongwith
governance,theroleofdemocracyneedstobeexploredinsolvingthemissingwomensproblem.
Thepatriarchalmindsetofthesocietyneedstobechanged.Thisleadstolackofinheritancerights,denialof
participationindecisionmaking,poorworkforceparticipation,lackofempowermentandcontinuedfinancial
dependencyonmalemembersofthefamily.
Theworseningsexratiohastobeaddressedattheearliesttoavoidgrossneglectofwomen.Preferencefor
amalechildisamajorcauseformistreatmentofyounggirls,thusleadingtocrimesagainstthem.
Connectingthedots
Reducingtheoccurrenceofcrimesagainstwomenisoneofthemostimportantagendaforthedeveloping
countriesoftheworld.AnalysehowmeasuresotherthanlegislationsandjudicialinterventionscanhelpIndia
achievethistarget.

SECURITY/NATIONAL

TOPIC:

GeneralStudies3
Securitychallengesandtheirmanagementinborderareas
GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissuesarisingoutof
theirdesignandimplementation.

IndiasnuclearpolicyShouldtherebeachange?
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Innews:TheDefenceMinisterrecentlytalkedaboutIndiasnuclearnofirstusepolicy.Thishascreatedabuzzin
SouthAsiaandamongnuclearexpertsaroundtheworldwithregardstoIndiasnuclearpolicy.
NoFirstUsepolicy
Nofirstuse(NFU)referstoapledgeorapolicybyanuclearpowernottousenuclearweaponsasameans
ofwarfareunlessfirstattackedbyanadversaryusingnuclearweapons.Thisconceptisalreadyappliedto
chemicalandbiologicalwarfare.
IndiaarticulateditsNFUin2003afteritssecondnucleartests,PokhranII,in1998.
InAugust1999,theIndiangovernmentreleasedadraftofthedoctrinewhichassertsthatnuclearweapons
aresolelyfordeterrenceandthatIndiawillpursueapolicyofretaliationonly.
ThedocumentalsomaintainsthatIndiawillnotbethefirsttoinitiateanuclearfirststrike,butwill
respondwithpunitiveretaliationshoulddeterrencefail.
ThedecisiontoauthoriseuseofnuclearweaponsrestswithPMorhisdesignatedsuccessor(s).
AccordingtotheNationalResearchDevelopmentCorporation,despitetheescalationoftensionsbetween
IndiaandPakistanin20012002,Indiaremainedcommittedtoitsnuclearnofirstusepolicy.
However,NATOhasrepeatedlyrejectedcallsforadoptingNFUpolicybyarguingthatpreemptive
nuclearstrikeisakeyoption.
Thenewnuketalk
TheDefenceMinisterataneventexpressedhispersonalviewifIndiasnucleardoctrineshouldbe
constrainedbyanofirstuseposture.Thiswasbecausethereshouldbeanadvantageofunpredictabilityin
thecountrysmilitarystrategy.
Thewrittenstrategygivesawaycountrysstrength.IndiashouldnotbeboundbyNFUanditissufficetosay
thatIndiabeingaresponsiblenuclearpowerwillnotusenuclearweaponsirresponsibly.
However,aftersuchstatementsandbackslashreceivedforsuchcomments,itwasreiteratedthattherewas
nochangeinIndiasnucleardoctrineanditwasjustexpressionofpersonalview.

Indiaandnuclearuse
IndiaholditsvaluesinGandhijisnonviolenceprincipleandthusitisareluctantnuclearpower.
Indiabelievesthatnuclearweaponsarepoliticalweapons,notweaponsofwarfightingtheirsolepurposeis
todetertheuseandthreatofuseofnuclearweapons.
Indiasnucleardoctrineisbuiltaroundcredibleminimumdeterrenceandprofessesanofirstuseposture.
Minimumdeterrencemeansthatastatepossessesnomorenuclearweaponsthanisnecessarytodeteran
adversaryfromattacking.Topresentacredibledeterrent,theremustbetheassurancethatanyattackwould
triggeraretaliatorystrike.
Indiaiswillingtoabsorbthedamagethatanuclearfirststrikemaycause.Againstsuchattacks,ithas
declareditsintentiontolaunchmassiveretaliationtocauseunacceptabledamageinreturn.
Consequently,Indiafollowsapolicyofdeterrencebypunishmentthroughacountertargetingstrategywhich
aimsatdestructingadversarysmajorcitiesandindustrialcentres.
Adoctrineisasetofbeliefsandprinciplesthatguidetheactionsofmilitaryforcesinsupportofanations
objectives.
Thepurposeofadoctrineis
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Partlytoenhancedeterrencebymakingpubliconesintentions
Partlytoprovidethebasisfororganisingacountrysnuclearforcestructure,includingthecommand
andcontrolsystem
Partlytoreassureonesownpeopleandallies(whereverapplicable).
However,thisdoesntmeanthatnucleardoctrinesarerigidandcantbealtered.Theyarenotbinding
internationaltreatiesthathavetobeadheredinletterandspirit.
Ifthedeterrencebreaksapart,thedoctrinebecomesirrelevant.Ifthecrisisarisewherethereisapossible
nuclearexchange,thenationalmilitarystrategywillfocusinpreventingescalation,minimizingcivilianand
militarycasualties,infrastructuredamageandensuresurvivalofstate.
Incaseofdecisiononnuclearexchange,thePoliticalCounciloftheNuclearCommandAuthority(NCA)will
decidehowtoretaliatebasedontheadvicegivenbytheExecutiveCouncil.ThisCouncilhasarmy,navyand
airforcechiefsasmembers.
Theretaliationmethodandmodewilltakeintoaccounttheprevailingoperationalstrategicsituationandthe
likelyresponseofadversary,especiallytheprobabilityoffurthernuclearexchanges.
Suchdecisionwillinvariableincludethereactionsoftheinternationalcommunitythreatsheldout,appeals
madeandUNSCdiscussion.
IndiasNFUShouldtherebeachange?
Itsbeenalmost14yearssinceCabinetCommitteeonSecurity(CCS)approvedIndiasnucleardoctrine.It
wasdonebyreviewingtheprogressintheoperationalisationofnucleardeterrence.
Credibleminimumdeterrenceandthepostureofnofirstusehavestoodthetestoftime.Thereisnoreason
thatjustifiesafirststrike,becauseitisguaranteedtocausedestructiononbothsides.
Since2003,manynewdevelopmentshavetakenplace,includingthedevelopmentoffullspectrum
deterrence(FSD)byPakistan.ItmeansthatPakistanwoulduseitsnuclearcapabilityonlywhenenemy
goesbeyondPakistanNuclearThreshold.
NowIndiahasadoptedColdStartDoctrinewhichistocounterPakistansWarbyOtherMeansStrategy
whichwasformulatedafteritrealizedthatitcouldnotwinaconventionalwaragainstIndiabecauseofIndias
conventionalmilitarysuperiority.
ColdStartinvolvesjointoperationsbetweenIndiasthreeservicesandintegratedbattlegroupsforoffensive
operations.AkeycomponentisthepreparationofIndiasforcestobeabletoquicklymobilizeandtake
offensiveactionswithoutcrossingtheenemysnuclearusethreshold.
Indiasdeclaredstrategyisthatofmassiveretaliation.ItisaviabledeterrencestrategythathasservedIndia
wellandanychangeinitwouldnotbebeneficial.ItwilldeterPakistaniplanstousetacticalnuclearwarheads
(TNWs)againstIndianforcesonPakistanisoilastheycannotpossiblyriskmassiveretaliationthatwould
resultinthedestructionofallmajorcitiesandleadtotheendofPakistanasacohesivenationstate.
Connectingthedots:
ShouldIndiareviewitsnofirstusepolicy?Criticallyanalyse.
UriattacksescalatedtensionsbetweenIndiaandPakistanwhichevenpromptedPakistantouseNword.
WhatisIndiasnuclearpolicyandisitapplicableinthesechangingtimes?

MUSTREAD
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Searchingforanequilibrium
Hindu

Artificiallycreateddistress
Hindu

Whengovernmentplaysjudge
IndianExpress

Demonetization:Willithurtgrowth?
Livemint

IndiaandTrump
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Makingthemostofdemonetisation
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Flushingoutblackmoneyisalonghaul
BusinessLine

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IASbabasDailyCurrentAffairs17thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs17thnovember2016/

IASbaba

11/18/2016

Archives

INTERNATIONAL

TOPIC:GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,Indiandiaspora.

IndiaChinaandtheChangingWorldOrder

Evolutionoftheworldorder
ThecontrolofnationsontheglobalgeopoliticshasshiftedhandsfromAsianpowerstillthelate18 thCentury
totheWesternnationssuchasUnitedKingdomandUnitedStatesofAmerica.
Thelate19thcenturyandthe20thcenturyhavewitnessedtheWesternpowersusingimperialismand
colonialismtodictatetradeandevenproductionandconsumption.
Thecontemporaryeventsnowhintathistoryrepeatingitselfandthepowerreturninginthehandsofthe
Asianpowersonceagain.

Changesthathaveoccurred
TherelativedeclineoftheU.S.thathasoccurredbotheconomicallyandstrategically.However,focusisalso
neededonAsiasreemergence.

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DecliningsupremacyandmightoftheglobalinstitutionssuchasWorldBank,InternationalMonetaryFund
(IMF)andWorldTradeOrganisation(WTO)andemergenceofinstitutionssuchasBRICSBankandAsian
InfrastructureandInvestmentBank.
IncreaseinthelimitstotradeliberalisationintheWestalso.
Containment,asadoptedduringtheColdWar,isnoteffectiveinAsiasinceChinaisemergingasthelargest
globaleconomyandhasnoclosecompetition.
Alliances,asformedduringtheWorldWar,arealsolosingsignificanceinAsiaaseconomicinfluenceis
attaininggreaterimportancethanmilitaryinfluence.
EmergenceoftheNewU.S.PresidentElect,DonaldTrumpwhointendstofocusonAmericaFirstapproach
withfocusonresettingtieswithRussiaandbuildaverystrongrelationshipwithChinabasedwithfocuson
trade.
EmergenceofRightwingleadersacrossvariousnations.
ExitoftheUKfromEuropeanUnion.
AnnexationofCrimeabyRussiaanditsimpactonthepowerequationbetweenUSAandRussia.

EmergenceofAsia
Asiawillberestoredastheeconomiccentreofglobalpolitics
Asiawillalsobethemaincentreofcommercialtransactionsandtraderuleswillbelimitedtostandardisation
anddisputesettlementonlyunliketheprevailingtraderegimeundertheWTOframework.
IndiaandChinaCommonValues
ChinaandIndiahavehadmuchincommonintermsofphysiographyandstrategicideology.
Bothcountrieshavemajorsnowfedriversasboundaries.
Strategically,boththenationshavenotbeenbelieversofconqueringnationsoutsidetheirterritoriesof
influence.
Contrarytowesternbelief,boththesenationsfocusonbuildingpartnershipsbasedoncommonvalues.
Intermsofpoliticalideologyaswell,bothChinaandIndiagivedueimportancetosecularism,humanrights
andwelfareofall.
TheyhavehadacommonagendaattheUnitedNations(UN)aswell.Boththenationshavenotbeen
favouringtheinternationalrelationsbasedontheglobalstrategyofsharednaturalresources,technologyand
prosperity.
ThegreatpositiveoftheIndiaChinarelationshipintherecentyearshasbeentheincreasedbusinessto
businessandpeopletopeoplecontactsbetweencitizensofthetwocountries.

ScopeofCooperation
ChinasOneBelt,OneRoad(OBOR)initiativeisanopportunityforbothnationstocollaborateandtakea
leadinconnectivityledtradeinEurasia.
BoththenationsshouldgiverecognitiontoeachothersspecialinterestsintheSouthChinaSeaandthe
IndianOceanandenhancethestrategicadvantagefromit.

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ThereisaneedtocometoamutualunderstandingontheissuesofmembershipoftheNuclearSuppliers
Group(NSG),globalterrorism,andChinasroleinGwadar.
ChinahasalsosuggestedafreetradeagreementandbothcountriesaspiretowardscreatinganAsian
Century.
IndiasadvantageintermsofknowledgeindustrycomplementsthoseofChinaininfrastructureand
investment.
ChinaistheworldslargestproducerofgoodsandIndiaisthelargestproducerofservices.Indiawillhavean
advantageinthissincethefuturegrowthinAsiawillbeservicesectororiented.
Indiahasthepotentialtobetheworldleaderintermsnewknowledgebasedorderthroughits
pharmaceuticalsector,informationtechnologyandcropvarieties.
Itistheonlycountrywithbothextensiveendemicbiodiversityandworldclassendogenousbiotechnology
industry.
Indiaisalsodevelopinglowcostandindigenoussolutionsforurbanisation,governance,healthandeducation
problems.
Institutionalandprofessionalinteractionmustalsoincrease.
IndiacandomoretofacilitatethetravelofChinesetoIndiatoenhancethepeopletopeopletiesfurther.

Analysis
BackOfficetoshapethe21stCenturyasanAsianCentury.Thesamecanbeachievedbysharingsolutionsto
commonproblems.Suchanapproachwillprovidelegitimacytoreshapetheglobalorderbasedonsustainability.
IndiashouldrevisititsstandontheOBORandworktowardsDigitalSustainableAsia,andbetterEurasian
connectivity.ChinawillalsobekeentoseeIndiacomeforwardbecausedespiteallitsweaknesses,theIndian
economyhasshownitscapacitytosustainhigherratesofeconomicgrowth.
IfChinarejectsanimperialistviewofhistoryandbelievesinthecreationofamultipolarworldbasedoncommon
values,thenitcanworkwithIndiaandensurethatthebilateralrelationshiptomovebeyondofficialgovernmentto
governmentrelations.
Connectingthedots
IndiaandChinahavethepotentialtoshapetheglobalgeopoliticsinthetimestocome.Comment.Also
highlighthowthesamecanbeachievedbyboththenations.
The21stcenturyiswitnessingachangingworldorder.Analyse.Also,discusshowIndiaandChinacanmake
thebestofthesechangesanddefinethe21stCenturyastheAsianCentury.

NATIONAL/HEALTH

TOPIC:GeneralStudies2
IssuesrelatingtodevelopmentandmanagementofSocialSector/Servicesrelatingto
Health,Education,HumanResources.
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Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.

Promotingmedicaleducationaspublicgood
Innews:Recently,theNationalMedicalCommissiondraftbillandNITIAyogreportonmedicaleducationseemsto
furtheraccelerateprivatisationandcommercialisationofmedicaleducationinthecountryratherthankeepingitin
check.Ithasalsoraisedconcernaboutlackofprioritytoprotectionofpatientsandneedforstrongclampdownon
widespreadunethicalpractices.
SalientfeaturesofNationalMedicalCommissionBill,2016
TheNITIAayogcommitteehasproposedtoreplacetheMedicalCouncilofIndia(MCI)withaNational
MedicalCommission.
Thecurrentelectoralprocessofappointingregulatorsformedicaleducationshouldbereplacedbyabroad
basedsearchcumselectioncommittee.
Theforprofitorganizationsbepermittedtoestablishmedicalcollegesasagainstthepresentnormwhere
onlynotforprofitorganizationsarepermittedtodoso.
SuggestiontocreateMedicalAdvisoryCouncilbythecentralgovernment,withonenominatedmemberfrom
everystategovernmentandtwomemberstorepresentUnionterritories,tobenominatedbythehome
ministry.
NMCshouldnotengageinfeeregulationofprivatecollegesbecausemicromanagementcanencourage
rentseekingbehaviourintheNMC.
MedicaleducationstatusinIndia
Thedoctorpopulationratiois1:1,500inIndia,whichcriesfordireneedofdoctors.
Thenewbillwhichproposescommercialisationofmedicaleducationjustifiesitsrelevanceasitwillincentivise
investorstosetupmedicalcolleges,increasethesupplyofdoctors,inducecompetitionandreducethecost
oftuitionfeesandservices.
However,currently,USAisfacingthedownsideofsuchapolicy

TheUScrisis
Thelogicofmarketknowsbestbroughtbanks,hedgefunds,privateequityandventurecapitalfor
establishingcollegesinUSA.
Theloanmarketsthrivedbymakingstudentincomesastheonethatproducesafatandstablereturninthe
formoftuitionfees.
Post2002,studentdebthasclimbedto$1.2trillion.Here,44%ofloandefaultswereamongtheworking
classstudentswhoeithercouldntaffordtograduateor,ifoncetheydid,theyfoundtheirdegreeslargely
uselessinthemarketplaceandthusunabletoreturnloan.
Inthis,thequalityofeducationbecamethecasualty.
A2009reviewshowedthatin30leadingforprofituniversities,17%oftheirbudgetwasspentoninstruction
and42%onmarketingandpayingoutexistinginvestors.
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Thefreemarketsalsowidenedinequality.Theforprofitinstitutionsarebehindstudentswhofullypaytheir
feessoastoget30%profitmargin.Ontheotherhand,thenotforprofitinstitutionsalsofeelcompelledto
increasefeeswhenpublicfundingisreducedorwithdrawn.
Whenthesesituationarise,thefamilies,particularlywithstagnantincomesandreducedcapacitytorepay
loans,haveproblemsinhavingaccesstogoodinstitutions.
Hence,thesefactorsarereportedlycompellingUSAtoreverttothepreneoliberaleraofthe1960sof
makinghighereducationapublicgood.
Whatispublicgood?
Publicgoodisagoodwhichifoneindividualconsumes,itdoesnotreduceitsavailabilityforanother
individual.Inlargersense,itissomethingwhichisusedbysociety.
Economistsrefertopublicgoodsasnonrivalrousandnonexcludable.FewexamplesareNationaldefense,
sewersystems,publicparksetc.

Indianotlearningfromtheexperiences
AccordingtoNITIAyog,itsrecommendationsareexpectedtotriggerhealthycompetition,reducepricesand
assurequality.
Allowingprivateinvestorstoestablishmedicalcollegesuntrammelledbyregulations.
Freedomtolevyfeesfor60%ofthestudentstorecouptheirmoney.
Makingtheexitexaminationthemarkerforqualityandforcrowdingoutsubstandardinstitutions.
However,NITIAyogrecommendationsforreformingmedicaleducationneedtobeviewedinUSAsbackdrop.
Trainedfacultynotguaranteed
Indiahas422medicalcollegeswith58,000annualadmissions.Butestablishmentofnewcollegeswillnot
alonesolvetheissueoflackofdoctors.
Indiaisshortby30lakhdoctors.TherateatwhichIndiaisproducingdoctors,itwilltake50yearstoclearthe
backlogaterrible,unacceptablesacrificeoftwogenerations.
Butthemajorconcernisnonavailabilityofteacherswhichhasconstrainedfurtherexpansionandthusover
halfofthecollegesgivepoorqualitydoctors.
Skilledteachersformthebasisofqualitymedicaleducation,hencethereisaneedofacomprehensivepolicy
frameworkconsistingofinnovativeapproachessuchasuseoftechnology,facultytraininginpedagogical
skills,permittingforeignfacultytoteachetc.
Inequitiesinavailability
ThehealthsectorcrisisinIndiaisnotonlyaboutinsufficientavailabilityofdoctorsbutalsotheirgeographical
spreadandquality.
Privatisingeducationoropeningforeignuniversitieswillnotaddresstheseissues.Itisimportanttoask
questionslikeifanyinvestorwillbewillingtosetupcollegesinBundelkhandorRaipur?Orwhysurplus
doctorsfromTamilNaduandKarnatakadonogotoOdishaorChhattisgarhwherethereisdesperateneed
forthem?
Thereasonisthatlanguage,culture,paymentsystems,socialconditionsactasbarrierstofreemovementof
doctors.
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Inareasthathavefewdoctors,therearethreequartersofthematernal,infantmortalityandmorbiditydueto
infectiousdiseases.

Multiplefeestructure
TamilNaduprivatecollegesenhancedtheirfeesinresponsetoimposingrestrictionsonadmissionpolicies.
Also,duetothelackoftransparencyinfeefixations,therearemultiplefeestructuresforstudentstaking
admissioningovernmentquota,fullpayingdomesticstudentsandNRIstudents.Insuchcomplications,the
governmentendsuppayingmorethanrequired.
Besides,highfeesdonotguaranteequality.Forexample,inundividedAndhraPradesh,thegovernmenthad
spentaroundRs.6,000croreperannumtowardsfeereimbursementstoprivateengineeringcollegesand
outofthem,theindustryfoundlessthanafifthofthegraduatesemployable.
Lessdoctorsinprimarycareandlowremuneration
Ithasbeenobservedthatnowoverhalftothreequartersofthestudentswanttopursuespecialisation,go
abroad,workintertiaryhospitalsorcityhospitals,orsetupprivatepractice.
Hardly15000doctorsareavailabletoworkinruralareas,inthepublicsectororinpublichealthandprimary
careasfamilyphysicians.
Toreversethistrend,drasticchangewillberequiredincurriculum.
Forthis,thegovernmentwillhavetomakeinterventionsinpublicheathandprimarycarewhichare
financiallyremunerative.
Thus,thedemandsupplyequationsinimperfectmarketslikehealthdonotgetsmoothenedbyopendoor
policies.

Qualityconcern
Aonedayexaminationtojudgethequalityofaskillbasedprofessionlikemedicalcareisnotapt.
Qualityisalsoaboutattitudestowardspatientcare,knowledge,valuesandcompetenciesthatareimparted
bygoodteachersinclassroomsandbybedsidetraining.
Iftheprofitsbecomefocusinthissector,investmentsinsuchqualitycarewillbesecondary.
IASbabasviews
Today,publichealthandprimarycarerequirecriticalattentionastherehasbeengrowingevidencesofrisein
infectiousdiseaselikedengue,chikungunyaanddrugresistantHIV/AIDSandtuberculosis.Tocontainthespreadof
thesediseases,highqualityprimarycarewillberequired.Forthis,substantialinvestmentisneededtocreatewell
trainedandaptlyskilleddoctorstoreducecountrysdiseaseburden.
USexampleofsuchmarketledhealthcareeducationneedstobestudiedandreflectedinIndiascontext.Asacritic
hasputit,Qualityeducationandhigherearningsaretwomasters.Youcantserveboth.Hence,Indiahastolook
afteritsnationalinterestinapragmaticwaytodetermineaprogressivepublicpolicyonmedicaleducation.
Connectingthedots:
WhatisMCIandwhyisitbeingreplaced?CriticallyexaminethestatusofmedicaleducationinIndia.

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Indiahasadismaldoctorpopulationratio,yetgovernmentisnottakingconcretestepstomakethisfield
moreattractiveashealthofpeopledeterminehealthofnation.Accordingtoyou,whatstepsshould
governmenttaketoorganisehealthsectorinIndia,especiallycriticallystarvedprimarysector?

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Farmturnaround
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Demonetisationisworthallthetrouble
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IASbabasDailyCurrentAffairs18thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs18thnovember2016/

IASbaba

11/18/2016

Archives

NATIONAL

TOPIC:GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.
SalientfeaturesoftheRepresentationofPeoplesAct.

Electoralfinancialreformsneedtofollowdemonetisation
TheCentreforMediaStudiesin2014estimatedthataggregatecostofthecentralandstateelectionswas
justunder$5billion.Thiswouldhavebeenthesecondmostexpensiveelectionseasoneverafterthe2012
USpresidentialcampaign.
However,thevastmajorityofthefundswasoffthebooksandabovelegalspendingcaps.
ElectionfinancethemoneypowereuphemismhasrestrainedtheIndianpoliticalsystemfordecades.But
withtherecentcurrencyswapcanhaveanimpactontheupcomingstateelectionsanddisruptthe
functioningofmoneypower,especiallyinthecrucialUttarPradeshPoll.
Buttherearetwolimitationsinthis
1.Theextentofdisruptionisdebatable.AsperaformerCEC,therearemanyinnovativewaysin
whichpoliticalpartiesfunnelundocumentedcashintoelections(bundlesofsarisanddhotisand
hundredsofgasstoves).Henceitwouldbenavetoimaginethattheywillbeentirelyunabletoadapt
tothecurrentsituation.
2.ElectionfinanceisentwinedinIndiasparalleleconomywhichinterlockswithvariousindustries
andsectorssuchasrealestate.Itmightbringabouttemporarilypurgeinsomeindustriesbutitcannot
permanentlyalterthedynamicsoftheshadoweconomy.
Addressingtheelectoralproblems
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Thepurityoftheelectoralprocessrequiresamultiprongedapproach,whichincludesremovingtheinfluence
ofmoneyandcriminalelementsinpolitics,expeditingthedisposalofelectionpetitions,introducinginternal
democracyandfinancialtransparencyinthefunctioningofthepoliticalparties,strengtheningECIand
regulatingopinionpollsandpaidnews.
ManypreviousattemptshavebeenmadetoaddresstheelectionfinanceproblemGoswamiCommitteeon
ElectoralReforms(1990),ElectionCommissionofIndias(ECI)2004reportProposedElectoralReformsand
2ndARCsreportin2008.
However,asexpected,noneoftheirrecommendationshaveresultedinlegislativeaction.
Thereislackofpoliticalincentiveandwillaswellasadubiouspremiseoflimitingexpenditureofthe
candidate.Today,thepercandidatespendingcapsisRs.5470lakhforParliamentaryconstituenciesand
Rs.2028lakhforassemblyconstituencies!
ThesizeanddiversityofIndianelectoratealsomakessubstantialcashexpendituresaninevitability.

Whytheneedofelectoralreforms?
Moneyinfluencefinancialsuperioritytranslatesintoelectoraladvantage,andsorichercandidatesand
partieshaveagreaterchanceofwinningelections.
ExpenditurelimitsThereisneedforequalityandequalfootingbetweenricherandpoorercandidates.
Hence,thereshouldbeexpenditurelimitssothatnoindividualorpoliticalpartyshouldbeabletosecurean
advantageoverothersbyreasonofitssuperiorfinancialstrength.
Blackmoneypresencethereiswideprevalenceofblackmoneyandcorruptionwhichhelpscandidates
fundtheircampaigns.IthasbeenobservedbySCthatThesourcesofsomeoftheelectionfundsare
believedtobeunaccountedcriminalmoneyinreturnforprotection,unaccountedfundsfrombusinessgroups
whoexpectahighreturnonthisinvestment,kickbacksorcommissionsoncontractsetc.
Toomuchlobbyingthecurrentsystemtolerates,oratleastdoesnotprevent,lobbyingandcapture
betweenbigdonorsandpoliticalparties/candidates.
Institutionalcorruptionitisamorephilosophicalargumentthatlargecampaigndonations,evenwhen
legal,amounttoinstitutionalcorruptionwhichcompromisethepoliticalmoralitynormsofarepublican
democracy.Here,insteadofdirectexchangeofmoneyorfavours,candidatesaltertheirviewsand
convictionsinawaythatattractsthemostfunding.Thischangeofperceptionleadstoanerosionofpublic
trust,whichinturnaffectsthequalityofdemocraticengagement
Proposedelectoralreforms
Electoralreformsoftencontainproposalsforreformingelectionfunding,andcandidateandparty
expenditure.Itincludeslimitsonpoliticalcontributionsandpartyandcandidateexpenditure,disclosurenorms
andrequirementsandStatefundingofelections.
Asper255thLawCommissionreport,thelegislativelimitsonexpenditurewillnotsolvetheproblem,
especiallywithoutanalternativesuchascompletestatefunding,whichisimpossiblegiventheeconomic
conditionsanddevelopmentalproblemsofthecountry.
Anyreforminstatefundingshouldbeprecededbyreformssuchasthedecriminalisationofpolitics,the
introductionofinnerpartydemocracy,electoralfinancereform,transparencyandauditmechanisms,and
stricterimplementationofanticorruptionlawssoastoreducetheincentivetoraisemoneyandabusepower.
Hence,untiltheissueofthesespendingcapsisrevisitedortotallyabolished,itwillbedifficulttomanage
electionfinancewithsincerityandsanity.Thisreformwillhavegreatertransparencyonthepartofpolitical
parties.
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TheRepresentationofthePeopleActmandatingthatonlycontributionsaboveRs.20,000needtobe
disclosedtotheECIhadaloophole.Thus,apoliticalpartycandeclarethatithasntreceivedanydonations
aboveRs.20,000.
TheAssociationofDemocraticReformshasfoundthatonly9%ofpartiesfundingcomesfromdonations
overRs.20,000.
Toclosethisloophole,thelawcommissionhassuggestedthatsuchfundingshouldbeaccompaniedby
broadeningandenforcingdisclosurenorms.
However,ECIsdisclosureguidelineshavenostatutoryauthoritynoraretherelegalconsequencesfornon
compliance.Andthus,whenpartiesandcandidatesdofilereturnswiththeECI,theyarenotpostedonlinefor
publicaccess.
Theindividualcandidatesshouldnowmaintainanaccountofthecontributionsreceivedbythemfromtheir
politicalparty(notincash)oranyotherpermissibledonor.Similarly,eachrecognisedpoliticalpartyshall
maintainaccountsclearlyandfullydisclosingalltheamountsreceivedbyitandclearlyandfullydisclosingthe
expenditureincurredbyit.
However,thepoliticalpartiesareyetnotwillingtodisclosetheirfundingsourceswhichisrepresentedfrom
thechartbelow:

PictureCredit:http://lawcommissionofindia.nic.in/reports/Report255.pdf
Conclusion
Now,thereisaneedforwiderangingelectoralreformsthatshouldbeintroducedalongwithwillinthepolitical
partiesthattheyshallpolicethemselves.Unlessthisisdone,theshakeupcausedbythecurrencyswapwillhave
notmuchimpactinregulatingtheelectoralfinanceinupcomingelections.
Connectingthedots:
Whyareelectoralfinancialreformsneeded?Criticallyanalyseitsimplementationprospects.
Demonetisationfollowedbyelectoralfinancereformwillleadtobeginningofendofparalleleconomy.Doyou
agree?Examine.

INTERNATIONAL
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TOPIC:GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/or
affectingIndiasinterests
EffectofpoliciesandpoliticsofdevelopedanddevelopingcountriesonIndias
interests,Indiandiaspora.

IndiaNepalRelationship

PresidentPranabMukherjeesvisittoNepalisafirstin18yearseversincethevisitbyPresidentKRNarayananin
1998.Thisvisitisexpectedtohelpinrestoringequilibriumintiesbetweenboththenationswhichhaveseencertain
instabilityinrecenttimes.
Ascloseneighbours,IndiaandNepalshareauniquerelationshipoffriendshipandcooperationcharacterizedby
openbordersanddeeprootedpeopletopeoplecontactsofkinshipandculture.
History
Indiahasahuge,openandaccessibleborderwithNepalwhichhashelpedineasymovementofgoodsandpeople.
However,thesamehasalsoaddedtostressbetweenthenationsrecently.
Bothnationsshareculturalandtraditionalinterestswhichhasalwaysgiventhetiesaboost.
InJuly1950,IndiaNepalsignedaTreatyofPeaceandFriendshipwhichhadthefollowingcomponents:
Addressingsecurityconcerns
SocioCulturalandeconomicinteraction
Openborderandmovementofpeople
IndiahasbeenaregularsupplierofdefenceequipmenttoNepalandcontributedtowardsmodernisationof
theNepalesemilitary.
Bothnationshavemutuallyagreedonequalitytorespectivenationalswithrespecttoresidence,propertyand
tradeandcommerce.
In1960therelationsbetweenIndiaNepalhadturnedbitterforawhileasChinawascontinuouslymaking
attemptstobringNepalclosertoitself.However,normalcywasrestoredin1965whenIndiaprovidedsupport
toNepalintrainingandmodernisation.
IndiaNepalalsosignedtheTreatyofTradeandTransitin1977toeasetransitandencouragetrade
throughexemptionsandreliefofduties.
OtherareaswhichhaveincreasedcooperationbetweenboththenationshavebeenSAARC,openborder
regimeandintegrateddevelopmentofriverprojects.
RecentassistanceandsupportprovidedbyIndiaforreliefandrehabilitationaftertheNepalEarthquake.

ConstitutionalCrisisandmisunderstandingswithIndia
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Nepal,aftersevenyearsofstruggle,draftedaconstitutionin2015.Nepalsnewconstitutiondefinesthe
majorityHindunationasasecularrepublicdividedintosevenfederalprovinces.TheMadhesishavehad
concernsregardingthenewconstitutionandfeelthattheprocesswascompletedinahurry.
TheissuesintheconstitutionledtounrestandagitationsintheTerairegion.Theviolenceinthisregionhas
beenIndiasconcernasTerairegionliesalongtheborderofIndiaandNepal.
IndiaalsoraisedconcernaboutMadhesiinterestsnotbeingaddressedinthenewconstitution.TheOli
governmenthardlymadeeffortstoengageinadialoguewiththeMadhesisandblamedIndiaforimposingan
economicblockadetopressurisethegovernmenttoacceptMadhesidemands.
Asaresult,anantiIndiansentimenthadbeencreatedandPrimeMinisterOlisgovernmentalsocollapsed.

DamageControlbyNepal
PushpaKamalDahalPrachandahasnowtakenoverthegovernmentforaperiodofninemonthsafterwhich
theMaoistsandNationalCongress(NC)willformacoalitiongovernment.
Bilateralvisitsarebeingusedasatooltorestoretherelations.Mr.Prachandamadeasuccessfulbilateral
visitinSeptemberandNepalPresidentBidhyaDeviBhandariisexpectedtovisitIndiaincomingtimes.

TakingsfromthePresidentialVisit
PresidentPranabMukherjeehashighlightedthatNepalneedstocompletethepoliticaltransitionandto
ensureefficientworkingofamultipartydemocracyallsectionsneedtobebroughttogetherforthenew
constitutiontosucceed.
IndiaandNepalareculturalpartnerswithhistoric,spiritualandcivilisationallinksbetweenthepeople.
Duetoculturallinksaswellsharingopenandaccessiblebordersbothnationshaveavitalstakeineach
otherswellbeingandsecurity.
TheGurkhashavebeenaveryimportantpartoftheIndiaArmyandtheirimportanceintheArmyandthis
relationshipcanneverbeundermined.
Indiahasnumerouswelfareschemescoveringsolarelectrificationanddrinkingwatersupplytoex
servicemensvillages,medicalcareandprovisionofambulancestotheirassociations,andeducationand
scholarshipsfortheirchildren.
TheNepalicitizenscaneasilyfindemploymentinIndiaduetothe1950TreatyofPeaceandFriendship
betweenbothnations.
IndiahasalsoaddressedthelongstandingrequestsofNepalforrenovatingtheghatsalongtheBagmati
RiverandconstructionoftwodharamsalasadjoiningtheJanakiMandirinJanakpur.
NepalistudentswillnowbeeligibletositfortheentranceexaminationsfortheIITsandtheadditional
scholarshipsforpostgraduatestudiesinwaterresourcesmanagementandhydelpoweratIIT,Roorkee.

DomesticChallenges
TheinterimgovernmentunderMr.Prachandafacesalotofchallengesonvariouscontentiousissuesandthereisa
needtoensureahighdegreeofpoliticalconsensus.NCandtheMaoistsdonothavecompleteagreementbetween
themselves.EventheMadhesigroupsdonothaveaunifiednegotiatingposition.

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ThegovernmenthasonlysixmonthstoensurethatthedialoguewiththeMadhesigroupsmakessome
progress.
InabsenceofanyprogressindialoguewiththeMadhesis,itwillbeverydifficultforthegovernmenttohave
thelocalbodyelections.
MadhesisareyettoagreeontheissuepertainingtothenumberofparliamentaryseatsfromtheTeraiwhere
populationwillbethemaincriteriaindelimitingelectoralconstituencies
Issuespertainingtoprovincialdemarcation,restrictionsonappointmenttohighlevelconstitutionalpositions
fornaturalisedcitizens,statusofHindiandotherlanguagesandcompositionoftheupperhousearestill
pending.
Oliisnotwillingtocompromiseandthisisamajordifficultytogetthetwothirdsmajoritynecessaryfora
constitutionalamendment.

Analysis
Thebilateralvisitsbyboththenationsareprovingtobeveryhelpfulinrestoringthetiestonormal.Mr.Prachanda
madetwoconsecutivevisitsintherecentpastwhichincludedavisittoGoafortheBRICSBIMSTECoutreach
summit.ThishashelpedstabiliseIndiaNepalrelations.
Mr.Prachandaneedstousethispoliticalspaceandrelationshiptobuilduponthisstabilitybetweenthenations.
Domestically,hehastousehisnegotiatingskillstomakeprogressonthependingconstitutionalissuesduringthe
remainingpartofhisshorttenure.However,onethinghastobekeptinmindthattimeisdefinitelynotonthePrime
Ministersside.
Boththenationsneedtoworkhardtoremovethetrustdeficitthathascreatedagapintherelationship.Nepalhas
toensurethattheantiIndiasentimentwithinthecountrydoesnotgrowfurther.Indiahasanimportantroletoplay
duringthisperiodoftransitionforNepal,notassuperiorcounterpart,butasanallythatstandswiththespiritofthis
newrepublic.
Connectingthedots
HighlightthechallengesthatNepalfacesdomesticallysincethedraftingofitsconstitution.Alsodiscusshow
IndiaNepalrelationshipcanbeimprovedinthelightoftheprovisionsandthechallengesposedbythenew
constitution.

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IASbabasDailyCurrentAffairs19thNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs19thnovember2016/

IASbaba

11/19/2016

Archives

NATIONAL

TOPIC:GeneralStudies2
Structure,organizationandfunctioningoftheExecutiveandtheJudiciary
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.

NationalLitigationPolicy

CurrentProblemsfacedbytheJudiciary

ThejudiciaryinIndiaiscurrentlyfacingalotofproblemswhichcanbeenlistedasbelow:
Pendencyofcases,
Lackofnationwidedigitalconnectivityacrosscourts,
Constantconflictbetweentheexecutiveandthejudiciary,
PendencyofvacanciesofjudgesinvariousHighCourtsandtheSupremeCourt,
Increasingnumberofundertrialsduetopendencyofcases,
Inefficientworkingofthealternativedisputeredressalmechanisms,and
Excessivelitigationbythegovernment
Theproblemofexcesslitigationbythegovernmenthasledtoexcessburdenofpendencyonthejudiciary.Thiscan
beunderstoodbythefactthathalfofalllitigationsintheIndianjudiciarytodayaregovernmentlitigations.Thisissue
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hasbeenraisedbytheLawCommissionofIndiainits126thReportin1988,theSupremeCourtofIndiaandnow
recentlybythePrimeMinisterofIndia.EffortshavebeenmadetotacklethisproblemwiththehelpoftheNational
LitigationPolicylaunchedin2010.SuchapolicyisalsobeingfollowedinAustraliawheretheAustralianTaxation
OfficeconductsitslitigationinaccordanceguidelinesofPSLA2009/9ConductofTaxOfficeLitigation.

BenefitsofNationalLitigationPolicy(NLP)
Reducestheburdenonthepublicexchequerarisingduetothesecases.
Willassistinreducingtheburdenofpendingcasesonthejudiciary.
In2010,theNLPwaslaunchedtomakethegovernmentanefficientandresponsiblelitigant.
Itwillkeepacheckonthegovernmentsothatitdoesnotenterintopettylitigationsonminorissues
ShortcomingsintheNLP
NLPhasbeenafailureduetoambiguity.
Itissaidtobefilledwithrhetoricandpolicieswhichcannotbeeasilyimplemented
Itcontainsalotofexamplesdescribingtheproblembutlacksanindepthanalysisaddressingthereasons
behindtheexcessgovernmentlitigation
Forthepurposeofperformanceappraisalanddeterminingresponsibilityandefficiency,thepolicylacks
specificmeasurablebenchmarks.
ThoughNLP2010providesforaccountabilitybutitlacksdefinitionofsuitableactionthatwouldbetaken
againstthoseofficialswhoviolatethepolicy.
NLPprovidesforsettingupEmpoweredCommitteesforproperimplementation.However,thereisalackof
claritywithrespecttotheroletobeplayedbythesecommittees.Thisincreaseschancesofconfusionand
lossoftransparency.
Absenceofadequatedatawhichcanbeusedasamonitoringtoolforthesuccessandeffectivenessofthe
policy.

WayForward/ReformsintheNLP
Withthegrowingshareoftroublesofthejudiciary,thisproblemneedstobedealtinamuchmoredynamicand
resourcefulmanner.Thebureaucracyneedstobemotivatedsufficientlytotacklethisproblem.
NecessarychangesandreformscanbeundertakenintheNLPwhichcanofferalongtermsolutiontotherising
governmentlitigations.Suchchangesareasfollows:
ClarityontheobjectivesoftheNLPsothateffectivemonitoringcanbecarriedout.
RoleofdifferentfunctionariesinvolvedsuchastheEmpoweredCommitteeshastobestatedveryclearly.
Thepolicyformustsetminimumstandardstobefollowedbythegovernmentfortakingforwardlitigations.
Thereisaneedtoensureadequateaccountabilitymechanisms.
Consequencesofviolationofthetermsofthepolicyhavetobementioned.
Regularreviewandassessmentofthepolicyisessential.
Thegovernmenthastoensurethat,forthesmoothfunctioningofthejudiciaryandtoprovidetimelyjusticetothe
citizensNLPshouldbeimplementedattheearliest.Thegovernmentshouldmakeeffortstoensurethatadispute
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betweentwodepartmentsorpublicsectorundertakingsshouldnotgotothecourt.Itshouldbesettledatthe
ministeriallevel.Courtopinioncanbetakenincaseoffurtherproblem.
Connectingthedots
CriticallyanalysetheNationalLitigationPolicy2010.Discusshowthispolicycanbehelpfulinreducingthe
burdenonthejudiciary.

NATIONAL

TOPIC:GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.
Importantaspectsofgovernance,transparencyandaccountability

Towardsacashlesssocietythedemonetisationeffect
Demonetisationhasdefinitelyturnedpeopleslivesupsidedownas86%ofcashwiththepublicbecame
illegal.
Themovehasbeenlargelyhailedbutthecashmanagementcrisishasnowcapturedthepositivemovein
cageoflackofproperplanning.
Thishasledtomanypoliticians,economistsandopinionleaderscondemningthemoveandimmediate
hardshipscausedtocommonman.
Thoughgovernmenthadtohavemoreplannedmeasuresbeforeannouncingsuchdrasticstep,itis
understoodthatitsconcernoverthesecrecyofsuchamovewasmoreimportant.
Identifyingtheneedofthehour
Itisincumbentuponthegovernmenttotakeadequateandquickstepstoalleviatesufferingsofthecommon
manwhichwasdonebyannouncingvariousstepsandmeasuresinupcomingdays.
Rightnow,thereisneedofindulgingmoreintakingactionstohelppeopleindifficultiesratherthan
concerningtoomuchovermeritsordemeritsofthepolicy.
Theforemostactionistorestorecalmandreduceanxietylevelsacrosstheboardbyprovidingcorrect
information.WhenSCexpressesconcernovercreationofriotlikesituation,thegovernmentisboundtodole
outslewofmeasurestoeasehardshipsforcommonman.
ThegovernmentisincurringaboutRs.10croresinawarenesscampaignstopromoteitsdemonetisation
drive.Itshouldstressandconstantlyrepeatthatadequatetimeisavailablefordepositingtheoldcurrencyin
theaccounts.
GovernmentcaninformpeoplethatATM/Debit/Creditcardshouldbeusedfortheirtransactionswherever
possible.ThiswillcreatelesserqueuesinfrontofATMandbanks.

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Volunteerscanassistinfillingupformsorvouchersoftheilliterateandignorantpersonsandalso
simultaneouslyeducatingthemonavailabilityofalternatemeanstoavoidrisksofcarryingcashandrunning
fromplacetoplace.
Themajorcriticismofthebanisthat7080%ofpeoplehavenobankaccountsandhenceareindistress.But
thefactsrepresentdifferentpicture.Accordingtoofficialfigures,morethan25croreJanDhanaccountshave
beenopenedandnearly20croreRupaydebitcardshavealsobeenissued.
Hence,ifanaveragefamilyisconsideredtobeofthreepersons,thentheaccountsshouldcoverupto75
croreofpopulation.So,theseaccountscanbeactivatedfordepositingtheoldnotesandwithdrawalofcash.

Usingtheestablishednetworks
Anothercriticismisthatoflackofbankingfacilitiesforthepoorandthoselivinginisolatedvillages,
particularlyinnortheast,hillyandtribalareas.
UndertheRBIpolicyoffinancialinclusion,ithasbeenmademandatoryforthebankstoopenbranchesin
everyvillagewith2,000ormorepopulation.Andalargenumberofsuchbranchesinfacthavebeenopened.
Inaddition,avastnetworkofmorethan1,50,000postofficesarespreadacrossthelengthandbreadthof
thecountry.Mostofthesepostofficeshaveatleastonecomputerterminalinstalled.
Thus,theseoutletshavehelpedIndiaPostinmakingtransferofmoneyfromonecorneroftheglobetothe
othereasier,fasterandsafer.
Also,manyurbanandsemiurbanpostofficeshavebeenfullycomputerisedandareinterconnectedthrough
acorebankingsolution.Additionally,IndiaPostPaymentsbankwillbelaunchedshortly.Hence,peoplehave
optionstocarryouttheirfinancialtransactionsinsteadofsufferingstressforexchangingmoney.
Itistruethatfarmersandsmalltradersdonthavebigtransactionalvalueandso,inordertostrengthenthis
institutionalnetwork,alargenumberofbankingcorrespondentsarealsofunctioning.
Thenumberofpointofsale(PoS)terminalshassubstantiallygoneupintherecentpastasseveralstreet
cornerstoresandotherretailestablishmentshavePoSswipingmachines.
Buttheyarenotusedoptimally.Hence,thetradersmustbepersuadedtousethemachinesinthesedifficult
timestohelptheirbusinessaswellascustomers.
Ithasbeencometonoticethatvegetablevendorsandstreetfoodcartsareofferingtoacceptcardswith
smallPoSmachines.Here,thebankscouldaggressivelymarketthemselvesthroughawarenesscampaigns
abouttheavailabilityofmachinesforfree,includingtheirmaintenanceandtheeaseofusingthem.
Earlier,thetradersgavethetaxwaiverbaittocustomersanddealtincash.Nowifthecustomerasksforbill
andshowtheirpreferenceforcardpayments,thefutilityofcashtransactionsandutilityofnoncash
transactionswillbeencouraged.
Anotherimportanttoolavailableforavoidingtheneedforcashevenforthepoorerbutliteratesectionsisthe
mobilepaymentssystem.Slowly,massawarenessisbeinggeneratedamongstpeopletousemobile
paymentsystemsoastoavoidcashmobilityandinducetimesaving.Mobilewalletsarealsobeing
introducedandgarneringpopularity.
Ofcourse,thereareapprehensionsaboutreliabilityandsafetyoftheirusagebutoveraperiod,ascaseof
cardsandnetbanking,thismodeoftransactionstoowillfindbetteracceptance.
Nothingshouldbeexpectedovernight,buttheinitiationhastobedonewithdeterminationandsustained
effortsbyallconcernedwhichwillguideinmovingtowardslessdependenceoncash.
IASbabasviews
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Thecurrentchallengesexperiencedisforalongtermgain.Currently,thereisariskofincreaseduncertaintyin
spendingbehaviourofconsumerandbusiness,temporarystrainsuponalreadyweakbalancesheetsandgrowthis
expectedtofallfornexttwoquartersduetofallinworkingcapitalandtradepaymentsthatarecashbased.
But,asthedustwillsettle,therewillhigherlevelsofrecordedtransactions,widertaxbase,bettertaxcompliance,
reducedtransactioncostsandenhancedefficienciesinvarioussupplychains.Themacroeconomicindicatorswill
alsoimprovewithslowingdownofinflation,improvementinfiscalbalanceandsofteningofinterestrates.
Hence,theimplementationofdemonetisationpolicy,withawareness,attitudeandadministrativeefficiency,willbea
truegamechanger.
Connectingthedots:
HowwilldemonetisationhelpIndiamovetowardscashlesseconomy?Explain.
Inabidtobecomecashlesssociety,thedemonetisationpolicyhasdisruptedtheroutineofcitizens.Critically
analysetheeffectofdemonetisationonlivesofpeopleandbusiness.

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IASbabasDailyCurrentAffairs21stNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs21stnovember2016/

IASbaba

11/22/2016

Archives

ECONOMY

TOPIC:GeneralStudies3
IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,
developmentandemployment.
GovernmentBudgeting.

FiscalPolicyManagement

WhatisFiscalPolicy?
Fiscalpolicyisthemeansbywhichagovernmentadjustsitsspendinglevelsandtaxratestomonitorand
influenceanationseconomy.
Itisthatpartofthegovernmentpolicywhichisconcernedwithraisingrevenuethroughtaxationanddeciding
ontheamountandpurposeofthegovernmentspending.
Itdealsnotonlywiththequantityoffundsbutalsothequalityofpublicfinance.
WhatisFiscalDeficit?
FiscalDeficitisthedifferencebetweenthegovernmentearningsanditsspending.Itisthedifferencebetweenwhat
isreceivedbythegovernmentonrevenueaccountandallthenondebtcreatingcapitalreceipts.
FiscalDeficit=TotalgovernmentexpenditureRevenueReceiptsNonDebtCreatingCapitalReceipts
WhatisFiscalConsolidation?
FiscalConsolidationreferstothestrengtheningofgovernmentfinances.Ithelpsthegovernmenttocutdownon
wastefulexpenditureandenablesitspendmoreonsocialsectorandinfrastructure.
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EffectivefiscalconsolidationhasallowedIndiatoemergeasapreferredinvestmentdestination.Thishasbeena
resultofstrengthofitspolicyandinstitutionalframeworks.
VariousmeasuresanddecisionsthathavecontributedtofiscalconsolidationinIndiaare:
Eauctioningofnaturalresources,
arulebasedframeworkforIndianmonetarypolicy,
InsolvencyandBankruptcycode,
IntroductionoftheGoodsandServicesTax(GST),
Otheraspectsofconductoffiscalpolicywhichhaveplayedanimportantroleincontributingtowardsimproving
Indiasgrowthandinvestmentpotentialinclude:
Restraintonunproductivespending,
PluggingofsubsidyleakagethroughimplementationoftheDirectBenefitsTransfer(DBT),
HigherdevolutionofrevenuetoStatesandlocalselfgovernments,
GreaterautonomytoStatesforspendingondevelopmentalplans,
GuidelinesundertheFiscalResponsibilityandBudgetManagementAct(FRBM).

WhatisFRBMAct?
FRBMActwasfirstintroducedinIndiainDecember2000tobringdowntheincreasinggovernmentdeficits
bothattheCentreandintheStates.
Itwasenactedin2003toinstitutionalisefiscaldiscipline,byseekingtoeliminaterevenuedeficitandtobring
downfiscaldeficittoamanageable3percentofGDPbyFinancialYear200809.
ObjectivesofFRBMAct
Fiscaldiscipline
Increasingplannedexpenditure
Reductioninamountofborrowings
Tomeettheconsumptionfromgovernmentsownfiscalresources
GiveautonomytoReserveBankofIndia(RBI)formoneycreation

ReformsinFRBMAct
Inthelightofcurrentdomesticandglobaldynamics,acommitteehasbeenformedtoreviewtheFRBMAct.Certain
changeswhichcouldbemadeintheFRBMActconsideringthecontemporaryneedsareasfollows:
AdoptionofaPointbasedandappropriatefiscaldeficittarget:
Apointbasedtargetinfusesfiscaldiscipline.
Itlimitstheroomforgovernmenttryingtoomanythings.
Italsoprovidesanunambiguoussignaltothebondmarkets.
SuchatargetwillleadtofocusedpolicycommunicationandsubsequentlyhelpinratingsupgradeforIndia.
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Afavourableeconomicatmospherewilllowerthecostofborrowingfortheprivatesectorandaidnewcapital
andinvestmentformation.
Rulesservingasguidingprinciples:
Effectiverulebasedpolicywouldhelpthegovernmentsadoptacountercyclicalapproachandlimitthescope
forcreativeaccountingwhichinvolvescapitalizingonloopholesintheaccountingstandardstofalselyportray
abetterimageofthecompany.
Aspendingrulewithamediumtermdebtrangeanddueconsiderationtoinstitutionalsettingcouldenhance
thepolicycredibility,alloweffectivemonitoringandensurestability,fairnessandefficiency.
Adebtsustainabilityrulecanhelpinimplementingaceilingongovernmentdebt.ThiswillalsoallowIndiato
actaspertheMaastrichtTreatyguidelines.
Anexpenditurerulethatfocusesonimprovingthequantityandqualityofspendingandimprove
accountabilitycouldbechosen.
Independentconstitutionalbodyasawatchdog:
FRBMActshouldprovideforanindependentrevieweroraFiscalCouncil,tooverseetheadoptionofrule
basedfiscalpolicyandalsorecommendfuturecourseofaction.
Awelldesignedfiscalcouncilwithstrictoperationalindependencewillboostfiscalaccountabilityand
transparencyandalsocontributeinenhancingtheratingsofIndia.
Analysis
AdoptionofFRBM2.0frameworkwillenhancetheefficacyofIndiasfiscalpolicyandsignificantlyreducethetwin
deficitvulnerability.Atatimewhenmostdevelopedeconomiesarestrugglingwiththeirgovernmentsfiscal
managementefficiency,arulebasedsystemwithroomforindependentadvisoryandoversightcantransform
IndiasfiscalarchitectureandpromoteinvestmentinIndiaatamajorscale.
Connectingthedots
DefineFiscalConsolidationandstepsintherecentpasttakenbythegovernmenttoensurefiscal
consolidation.SuggestchangesthatcanbemadeintheFRBMActtoincreaseitscontributiontofiscal
consolidation.

NATIONAL

TOPIC:GeneralStudies2
Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.

Fightingthecorruptiononsixfronts
Thedemonetisationmovehasaffectedallthepeoplewhohavecashwhichisunaccountedfor.However,this
moneywillnotbedestroyed.Instead,itwillbesoldatadiscount,andlaunderedinvariousways.
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Thepersonwhohasunaccountedcashwillhavetobearasubstantiallossof2550%.Duetosuch
consequences,thepeoplewhohaveresentedcorruptionandcriminalityinhighplacesarecelebratingthe
move.
Onaflipside,theIndiansmoneysupplyislargelybasedoncashanditisacriticalmediumoftransactions.
Thus,thedemonetisationmovehasbeenalargecontractionarymonetaryshock,whichhashadadverse
implicationsforthebusinesscycle.
TheBlackeconomy
Therearethreecomponentsofblackeconomy
1.Underlyingsourceofcorruptionforexample,highstampdutiesonrealestatetransactionsthatleadto
paymentsincash.
2.Methodsadoptedforstoringunaccountedwealthforexampleholdingliquidassetsingold.
3.Methodthroughwhichtransactionsareaffectedthisinvolvesthecashtransactions
Thepeoplewhoresortedtoblackmoneyhavebeenpenalisedby2550%duetodemonetisation.But,theywillsoon
findwaystousethenewcurrencyillegally.Hence,nowistheneedforpolicywhichsetshighervisiontodisruptthe
blackeconomytotally.
Forthis,thefocusneedstobeonthecoreofthecorruptactivity.Weshalllookintodetailsofsixsuchareaswhich
needstobetargeted.
Gold
Beforeliberalisation,therewasaboomingindustryofsmugglinggoldinIndia.
In1991,thiswasputtoanendbyeliminatingrestrictionsagainstgoldimports.
Forthis,agreatdealofworkwentintotheestablishmentofawhitemoneygoldandjewellerybusiness.But
thisdevelopmentalworkreceivedamajorsetbackin2013,whenthecustomsdutyongoldwasreintroduced.
Asaresult,thebuyerstartedmakingcashpaymentinordertohavediscount.Hence,thiswasablowtothe
worldofgoldandjewellerythatwasbeingconductedthroughwhitemoney.
Sonow,insteadoftargetingjewellersandtheircustomers,thebetterideawouldbetoeliminatethecustoms
duty.

Hawala
TheHawalaisanalternativeremittancechannelthatexistsoutsideoftraditionalbankingsystemswhereby
themoneyistransferredwithoutanyactualmovementofmoney.
Forexample:PersonA(Dubai)wantstosend1lakhriyaltopersonB(India).PersonAwillcontactHawala
agentXandtellhimtotransferthemoneytopersonB.AgentXwillcontactHawalaagentYinIndiaandask
himtogiveIndianrupeeequivalentto1lakhriyal.PersonBwillcontactAgentYandtakemoney.AgentXand
AgentYwillsettletheiraccountslaterandoncedone,theywilldestroyallevidenceoftransaction.
Thehawalabusinesscameupinthe1960sand1970sduetocapitalcontrolsthatwereapartofIndian
socialism.Hawalatransactionsavoidtax,haslowcommissionratesthanbanksandisfastandconvenientto
sendillegalmoney.
Capitalcontrol=residencybasedmeasuressuchastransactiontaxes,otherlimits,oroutrightprohibitions
thatanationsgovernmentcanusetoregulateflowsfromcapitalmarketsintoandoutofthecountryscapital
account.
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IndianbusinessmenandcitizenshavearobusthistoryofbusinessactivitiesinEastAfrica,WestAsiaand
SouthEastAsia.Butthecrossborderactivitiesaremiredincomplicatedregulations.Recentspatbetween
TataandDocomoisanexampleofproblemscreatedduetoIndiascapitalcontrol.
Thus,insteadofpolicingagainstpeopleinvolvedinhawalatransaction,Indiashouldlookforwardtobecome
amostopeneconomyinworldasenvisagedbyPMandalsoimproveitsrankinginChinnItoindex
(measurescapitalaccountrestrictions)whereitiscurrentlyplacedatthebottomofthetable.

Realestate
Realestatesectoriswidelymiredinblackmoneytransactionwherethesecondarymarketgenerallyinvolves
acashcomponent.
Cashpaymentisfavouredsoastoavoidstampduty.Justlikecustomduty,stampdutyalsoattractstax
evasionandthus,moregenerationofblackmoney.InsteadrealestatecanhaveGST.
Atpresent,buyinglandandsettlingdisputesofteninvolvescriminality,astherearetitledisputes.
Hence,Buildingsoundlandtitlesystemswillenablelawabidingcitizenstobuyandselllandwithoutabrush
withcashorcriminalitythroughequitymarketwhichhasshownhowtobuildinfrastructurefortracking
propertyrightsandachievingfrictionlesstransactions.
Taxation
ThetaxadministrationinIndiahaslimitedcapabilitiesandhence,taxpolicymustputalowloaduponthe
taxadministrationbyfavouringsimplicityandlowrates.
Under,thepresentlevelsofstatecapacity,thehighinterestratesandcomplexcodehasledtocorruptionin
economy.
AGSThasasingleratewilleliminateclassifyingagivenproductatahighrateoralowrate.Andthelow
rateswillpushboththetaxadministratorandthecitizeninfavourofcompliance.
Forthis,anewtaxadministrationactisrequiredwhichsetsuptheCentralboardofdirecttaxesandCentral
boardofexciseandcustomswithsoundprocessesfortheirlegislative,executiveandquasijudicialfunctions.

Administration
Arbitrarypoweristherootcauseofcorruption.Thegovernmenthasthediscretiontochangearule,givea
licence,conductaninvestigationetc.andsuchactionsshouldbecoveredbyprocedurallaw,whichenshrines
goodgovernance.
Whenacoalminehastobeallocated,therehastobeastructuredprocessforit,beforeanypunishmentis
pronounced,theaccusedmustbegivenastatementoftheaccusationandtheevidenceinwriting.Theseare
basicrulestobefollowed,yetitispresentlylackinginmanypartsoftheIndianstate.
Theregulatorsneedtobeestablishedwithproperstatutesastheyhavelegislativepower(thepowertowrite
law,i.e.regulations),executivepower(thepowertogivelicences,thepowertoconductinvestigation)and
quasijudicialpower(thepowertoawardpunishment).
Thus,suchanadministrativeenvironmentshouldbebalancedinordertopreventhegemonyoffew.
Politicsandelections
Runningapoliticalpartyandfightingelectionsrequireslargescaleresourcing.
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Thecomplexproceduresforcethepoliticalpartiestoengageintheseactivitiesusingblackmoney.During
elections,thearbitralandunpracticalspendinganddonationlimitsencouragepoliticalpartiestofindalternate
waysoffunding.
Thus,thereisaneedforfundamentalreformsarerequiredsothatfundinginwhitemoneyismadepossible.
ThiswillalsoallowtheIndianpoliticalsystemtogobeyondfamilydominatedpoliticalparties.
Thus,totrulydisrupttheshadoweconomy,fundamentalreformstargetingtheseareasisamust.
Connectingthedots:
Knowingandtargetingthesourceofblackmoneyisimportantthanmakingeffortstocleanitupfromtop.
Identifythepossiblesourcesandstatewaystocleanupthecore.

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Livemint

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IASbabasDailyCurrentAffairs22ndNovember,2016
iasbaba.com/2016/11/iasbabasdailycurrentaffairs22ndnovember2016/

IASbaba

11/22/2016

Archives

INFRASTRUCTURE/NATIONAL

TOPIC:GeneralStudies3
Infrastructure:Energy,Ports,Roads,Airports,Railwaysetc.
Disasteranddisastermanagement.

IndorePatnaExpressderailmentLearningfromdisasters
Innews:thederailmentofIndorePatnaExpresscausingdeathofmorethan140peopleisasadrealityofstrained
infrastructureofIndianRailwayswhichiscryingforreforms.
Indiasrailwaynetworkcaterstoaboutsevenbillionpassengertripsayear.Suchhumongousinfrastructure
maintenancepossessesextraordinarymanagementchallenges.
TheforemostchallengeoftheIndianRailwaysisthatitshouldbeabletoensurethatallitsjourneysend
safely.
DeathduetohumanerrorsdespiteknowledgeoftechnicalglitchesinjourneyofIndianrailwayscannever
compensatethelosssufferedbythefamiliesjustbyannouncementsofexgratiacompensationbythe
RailwayMinistry,thePrimeMinistersOfficeandStategovernments.
WhatisailingIndianRailways?
Itiscarrying15timesmorepeoplethanitscapacity,andoverloadingisdamagingoldtracks.This
infrastructureisnotgettingnewadequateinvestments
Trainsdonothaveadequateandpropersafetyandfireequipment.
Humanerrorsarethemaximumcauseofaccidents.Yet,propertrainingisnotgiven.
Therearestillmanyunmannedrailwaycrossingswhichneedtobeeliminated.
TheIndianRailwaysHowtobemoresafe
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AccordingtoNationalCrimeRecordsBureau,therehavebeenabout30,000railwayaccidentsayearin
recenttimesandover25,000liveshavebeenlostinsuchaccidents.
IndianRailwayshasrecordedanaverageof50derailmentsayearoverthepastfouryearsandapeakof63.
IndorePatnaExpressaccidentwasabigaccidentthatoccuredafter6years.
ThisreinforcesthedutyofMinistryofRailwaystoengageinasustainedefforttowinbackpublicconfidence.
Moreattentionneedstobepaidtoupgradinginfrastructuresuchastracksandsignallingandinducting
technologiesthathelppreventaccidents.
Theelementsofsafetyintegrityofthetracks,signalling,enginesandcoachesneedrigorousauditing.
Railfracturesaremicrocracksonrailsthatdevelopintomajorcracksfollowingthepassageofatrainwith
heavyload.SuchaccidentscanonlyhappenwhenUltraSonicFaultDetection(USFD)checksoftracksare
notroutinelydone.
InternalinvestigationsbytheCommissionersofRailwaySafetyhavefoundhumanerrortoberesponsiblefor
70%ofseriousrailaccidents.Thisshowshowmuchimportancehastobeaccordedtotrainingand
adherencetostrictoperationaldiscipline.
Thecurrenttraindisastertakesintoblametheflawsinthetrack,thespeedatwhichthelaterunningtrain
wasbeingdriven,andtheroleplayedbycoachdesigninleadingtohighfatalities.Thesearethefewofthe
coreareaswhichentailmodernisationaswellasmaintenance.
ItisnotthatVIPtrainslikeRajdhaniandShatabdiarenotpronetoaccidentsastheyhavesimilartracksand
signallingsystem.Whatisdifferentisthequalityofrollingstock,namelylocomotives,LHBcoachesandbetter
monitoringoftracksbeforesuchtrainspassonthem.Hence,railwaysshouldbeequallyvigilantforthenon
VIPtrainstooasitequallycarriesprecioushumanlives.

TheIndianRailwaysWayforward
13millionpassengerstravelinthe7000passengertrainsthatareruneverydaybyIndianRailways.These
passengersneedassurancefromRailwaysthatitislearningfromitsmistakes.
Itneedstobeoverlookedthatthehighlevelcommitteerecommendations(AnilKakodkaronsafetyandBibek
Debroyonrestructuring)arebeingimplemented.
Majorreformslikecreationofastatutorysafetyauthority,speedyreplacementofageingcoacheswith
modernLHBdesignandrevampedmanagementthatkeepsitsfocusoncoretrainoperationsshouldbefast
tracked.
InBudget201617,theMinisterofRailwaysalsoannouncedthatallzonalrailwayswouldhaveultrasound
flawdetectionmachinesbyMarch2017totesttrackquality.Itshouldbeverifiedifsuchatestwasdoneon
theIndoreKanpurPatnaroute.
Equallyimportantistheavailabilityofqualitymedicalfacilitiesonthesiteofaccidentwhichimprovethe
chancesofsurvival.Manyterriblemishapsoccurinruralareasthathavenohospitalfacilitiesworththe
name,notraumaspecialistsorintensivecare.Hence,upgradingdistricthospitalsshouldbeapriority.
InsteadofRailwayMinisterssuccumbingtopopulismandgivingprioritytoannouncingnewprojectsandnew
trains,morefocusshouldbeonnecessaryoperationalreforms.
RailwaysisintheprocessofsettingupanonlapsablefundnamedRashtriyaRailSanrakshaKoshwitha
corpusof 1,19,183croreforsafetyimprovement.Abulkofthatmoneyisproposedtobeinvestedintrack
renewalsandsafetyworksatlevelcrossings.
Also,thereisaneedtofindidealsolutionforsafetychallenges.Varioussafetyaidsforpreventingcollisionas
wellastrainprotectionandwarningsystemscontinuetobepilotprojects.

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Currently,extensivefieldtrialsoftheanticollisiondevice(ACD),aregoingonandoncedeployedacrossthe
zonalrailways,thisinnovativetechnologywillhelpreduceaccidents.
Conclusion
ItistruethatIndianRailwayshasmonopolyinrailtransportation,butitdoesnotmeanthatitcantakepassengers
forgranted.Theinitialdaysafteraccidentswillwitnesspublicsupportandangeragainstrailways,butitwillbesoon
lostincommitteeinquiriesandfinallyforgotten.
Thistrendhastostopandrailwayshavetobemademoreaccountable.Alongwithrisingfares,theRailwaysneed
toprovidesuperiorservicebetterchairsandberths,onboardservicesandpunctualityandsafeandsecure
passageforpassengers.
Similarly,safeandsecuretransportationofgoodsalsoneedstobeassuredfortheRailwaystoattractfreighttraffic.
Massssafetyandconvenienceshouldbepriority.
Connectingthedots:
WhataretheissuesplaguingIndianRailwaysandhowtoaddressthem?
IndianRailwaysareonpathreformationandtransformation.HowcanIndianRailwaysachievenoaccident
yearinfuture?Discuss.

ENVIRONMENTANDCLIMATECHANGE

TOPIC:

GeneralStudies2
Bilateral,regionalandglobalgroupingsandagreementsinvolvingIndiaand/oraffectingIndias
interests
ImportantInternationalinstitutions,agenciesandfora,theirstructure,mandate.
GeneralStudies3
Conservation,environmentalpollutionanddegradation,environmentalimpactassessment

MarrakechClimateChangeConferenceCOP22

Facts
ThetwentysecondsessionoftheConferenceoftheParties(COP22)totheUnitedNationsFramework
ConventiononClimateChange(UNFCCC)washeldinMarrakech,Moroccofrom718November2016.
TheleadersmetatMarrakechtodeliverpartoftheblueprintforachievingthegoalssetundertheParis
AgreementonClimateChange(ParisAgreement).
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TheConferencedemonstratedtotheworldthattheimplementationoftheParisAgreementisunderwayand
multilateralcooperationonclimatechangecontinues.
ClimateFinancewasthecoreissuetobediscussedattheConference.
TheaimofCOP22wastofindwaysandmeanstointegratenationalcommitmentstoactualpolicies.
Significance
ClimateFinance:
Developingnationshavedemandedfirmcommitmentsandaclearroadmapfromthedevelopedcountries
forhowandfromwherethemoneywillflowforthepledged$100billionby2020.
Indiaandotherdevelopingcountrieswhichactivelyseektoadoptrenewableenergyneedsupportintheform
offinancecommitmentsfromthedevelopedcountries.
USAandClimateFinance
TheMarrakechCOPprovidedanopportunitytocommunicateconcernsaboutthefutureclimatepolicyofthe
USA.
TheUSAhadearlierpromised$3billioninclimatefundingbuttheflowofthesamehasbeenuninspiring.
MarrakeshActionPlan
TheMarrakeshActionPlan(MAP)wassignedonthelastdayoftheconferenceanditemphasisesonthe
needforallcountriestoworktogethertoclosethegapbetweentheirintendedreductionofcarbonemissions
andwhatneedstobedonetokeeptheriseoftheglobalaveragetemperaturewellbelow2Cinthiscentury.
Highlightstheneedtodecideonstepstoenhancefinancingandtechnologytransfer.
IndiaandCOP22
Indiahasthetwinchallengesofgrowingitseconomytomeetthedevelopmentaspirationsandcutting
emissions.
AsasignatorytotheParisAgreementthereisahugepressureonIndiatoaffectbigemissioncutsandthe
sameisexpectedtoincrease.
SmallerandmorevulnerablecountriessuchasislandstatesandBangladesharedemandingactionfrom
Indiatocutemissions.
IssuespushedbyIndia,suchasclimatejusticeandsustainablelifestyles,werelargelyignored.
TheInternationalSolarAlliancewasofficiallyopenedforsignupandmadesomeprogress.

ChallengesfromCOP22
NotmuchprogresswasmadeatMarrakechonraisingthe$100billionayearthatisintendedtohelpthe
developingnationsandthelackofconsensusstillprevailed.
LackofclarityontheintentofUSAwithrespecttotheParisAgreementsincethePresidentElecthas
threatenedtowithdrawfromtheParisAgreement.
TheUSgovernmentmaytransferashareofitsfinancialcommitmentstotheprivatesectorandthiswillbe
justasproblematicasprivatefundingwillbeprofitorientedanderratic.
NosupportforIndiaontwoconceptsofClimateJusticeandSustainableLifestylewhichitwantedto
introduce.
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TheconceptofAdaptationdidnotfindmuchpopularityattheconference.
Thepledgesmadesofararewellshortoftheintendedtargets,andeveniftheyareallimplemented,a
minimumriseof2.9CisforecastbytheUNEnvironmentProgramme(UNEP)
ThemoneypledgedatMarrakeshisabout150milliondollarsandisadropintheoceanagainstthetargetof
raising100billiondollarsayearby2020.
Analysis
Otherthantheabovementionedchallenges,theCOP22toUNFCCChasdefinitelyhashaditsshareofsmall
victoriessuchastheMarrakechActionProclamationforOurClimateandSustainableDevelopment.Itnowrequires
allStategovernmentstocometogethertostrengthenthecaseforinternationalfunding.Thedevelopingcountries
werealsosuccessfulininsertingaclausewhichrequiresscalingupoffinancialresourcesbeyond$100billionper
yearafter2020.
AmajorpositivefromMarrakechhasbeenthatthedevelopingcountrieshaveraisedvoiceagainstthedeveloped
nationsandhaveshownunityandsolidarityaswell.IndiahastakenaleadincementingtheInternationalSolar
Alliance.A47nationcoalitionnamedClimateVulnerableForum(CVF)hasvowedtoconvertto100percent
renewableenergyassoonaspossible.
Oncealltheaboveessentialcommitmentsareontracktobeingfulfilled,itislikelytotriggerhigherambitionand
biggercommitmentswhichmightjustbeenoughtoachievetheParisobjectiveoflimitingtemperatureriseto2
degreesCelsiusabovepreindustriallevels.
Connectingthedots
DefineClimateChangeandcriticallyanalysetheoutcomesoftheUNFCCCCOP22heldatMarrakech,
highlightingtheirimportanceinfulfillingthecommitmentsmadeattheParisAgreement.

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