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SMADEEASY IAS

Quarterly Magazine

Exclusive Edition For IAS Exams(Aug, Sep, Oct)

2015 - 2016www.madeeasyias.com

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Contents

ENVIRONMENT

1. CARBON TAX EMISSIONS2. INDIA'S COMMITMENT TO CLIMATE CHANGE3. IUCN RED LIST4. NATIONAL MISSION FOR A GREEN INDIA5. MAJORITY OF ECOLOGICALLY SENSITIVE ZONES STILL NOT NOTIFIED6. ECOLOGICALLY SENSITIVE ZONES AROUND OKHLA BIRD SANCTUARY7. THE PUBLIC LIABILITY INSURANCE (PLI) ACT, 19918. MEETING OF LIKE-MINDED DEVELOPING COUNTRIES (LMDC)

SCIENCE AND TECHNOLOGY

1. GSLV D6 SUCCESSFULLY LAUNCHED2. ISRO CONFERRED GANDHI PEACE PRIZE 20143. INFORMATION ON WHITEFLY4. INJECTABLE POLIO VACCINE (IPV)5. GAGAN NAVIGATION SYSTEM6. Concepts Behind Inventions of Nobel prizes7. Vaccine developed to fight Ebola8. MANGALYAAN MISSION ON MARS9. CALL DROP ISSUE

POLITY

1. FOREIGN FUNDING OF NGOS AND FCRA2. SC / ST (AMENDMENT) BILL PASSED BY LOK SABHA3. UNIFORM CIVIL CODE (UCC)4. MONEY BILL5. PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA(PMKKY)6. NEERACHAL NATIONAL WATERSHED PROJECT

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INTERNATIONAL RELATIONS

1. EUROPE’S REFUGEE CRISIS2. CHINESE DAM ON BRAHMAPUTRA3. KALADAN MULTI-MODAL TRANSIT TRANSPORT PROJECT4. INDIA AND THE UNSC ISSUES

SOCIAL ISSUES

1. RESERVATION IN INDIA2. RASHTRIYA SWASTHYA BIMA YOJANA (RSBY)3. SCHOOL EDUCATION IN INDIA4. GLOBAL HUNGER INDEX AND INDIA

ECONOMY

1. DEFLATION IN INDIA2. WORLD BANK REPORT ON GLOBAL POVERTY3. PULSE PRICE RISE

ONLY IMPORTANT ISSUES!

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ENVIRONMENT1. CARBON TAX EMISSIONS

What is Carbon Tax?

A carbon tax is usually defined as a tax based on greenhouse gas emissions (GHG) generated from burning fuels.

It puts a price on each tonne of GHG emitted, sending a price signal that will, over time, elicit a powerful marketresponse across the entire economy, resulting in reduced emissions.

By reducing fuel consumption, increasing fuel efficiency, using cleaner fuels and adopting new technology,businesses and individuals can reduce the amount they pay in carbon tax, or even offset it altogether.

According to IMF chief now the time is right for governments to introduce taxes on carbon emissions andeliminate energy subsidies which will cost the world USD 5.3 trillion this year – 6.5 per cent of the globaleconomy.

Advantages of carbon tax:

It has the advantage of providing an incentive without favouring any one way of reducing emissions over another.

Carbon taxes offer a potentially cost-effective means of reducing greenhouse gas emissions.

It will discourage pollution.

Disadvantages of carbon tax:

Imposition of carbon tax in an area/state/country may force the firms to relocate which may lead to decrease in employment.

It will increase cost of production which may lead to inflation.

Many large users of carbon resources in electricity generation, such as the United States, Russia, and China,are resisting carbon taxation.

Carbon tax in India:

A carbon tax will help India to meet their voluntary target to reduce the amount of carbon dioxide.

In 2010, India introduced a nationwide carbon tax of 50 rupees per metric tonne of coal both produced andimported into India.

In 2014, govt. has increased the Price to 100 rupees per metric tonne.

It has been further increased from 100 Rs per tonne to 200 Rs per tonne in the Budget 2015-16.

2. INDIA'S COMMITMENT TO CLIMATE CHANGE

What is INDC?

Intended Nationally Determined Contribution (INDC) outlines the post-2020 climate actions they intend to takeunder a new international agreement.

The success of the UN’s new climate agreement will, to a significant degree, depend on the ambition of thesepledges, which will determine the rate of action to tackle climate change after 2020.

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India’s INDCs contains the following proposals:

To reduce the emissions intensity of its GDP by 33 to 35 per cent by 2030, from 2005 levels.

To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additionalforest and tree cover by 2030.

Increase the Share of Non Fossil Fuel Based Electricity

Sustainable Lifestyles

Cleaner Economic Development

Technology Transfer and Capacity Building

India’s achievements towards climate change till now:

Many policy measures have been taken to promote low carbon strategies and Renewable Energyhave resulted in the decline of emission intensity of our GDP by 12% between 2005 and 2010.

Currently, renewable energy, nuclear energy and hydropower together contribute about 30 per centof the overall installed capacity.

India is running one of the largest renewable capacity expansion programmes in the world. Between2002 and 2015, the share of renewable grid capacity has increased over 6 times.

India is one of the few countries where forest and tree cover has increased in recent years and thetotal forest and tree cover amounts to 24% percent of the geographical area of the country.

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The Main Importance of India’s INDC:

India stated that the national plans given in the INDC depends on the unencumbered availability of cleantechnologies and financial resource from around the world. Such a position is consistent with theprinciple of ‘common but differentiated responsibilities’ that guides climate negotiations.

INDCs announced by India are comprehensive, balanced, equitable and pragmatic and addresses all theelements including Adaptation, Mitigation, Finance, Technology Transfer, Capacity Building andTransparency in Action and Support.

India has also decided to anchor a global solar alliance, INSPA (International Agency for Solar Policy &Application), of all countries located in between Tropic of Cancer and Tropic of Capricorn.

During preparation of INDCs govt. held stakeholder consultations with the specific involvement of the key

Ministries and State Governments. Interactions were also held with civil society organisations, thinktanksand technical & academic institutions of eminence.

India has to put economic growth before committing itself to cut down emissions.

Disadvantages:

The INDC data estimate that between now and 2030, at least $2.5 trillion would be required for thecountry to meet climate change action requirements. It will be difficult to invest such a huge moneywithout international help.

Cutting down emission will slow down the economy, therefore needs is a comprehensive strategy.

What are the Steps taken to achieve INDCs:

A scheme for development of 25 Solar Parks, Ultra Mega Solar Power Projects, canal top solarprojects and one hundred thousand solar pumps for farmers is at different stages of implementation.

The energy efficiency of thermal power plants will be systematically and mandatorily improved.

The switch from Bharat Stage IV (BS IV) to Bharat Stage V (BS V) and Bharat Stage VI (BS VI) toimprove fuel standards across the country is also planned for the near future.

Urban transport policy will encourage moving people rather than vehicles with a major focus on MassRapid Transit Systems.

Government of India’s long term goal is to increase its forest cover through a planned afforestationdrive through initiatives like Green India Mission, green highways policy, financial incentive forforests, plantation along rivers, REDD-Plus and Compensatory Afforestation Fund Management andPlanning Authority

India will have 40 per cent of the total installed power capacity in 2030 based on non-fossil fuel-based sources.

3. IUCN RED LIST According to IUCN red list 2015, a total of 180 bird species in India are now threatened, as against 173 last

year.

Five species have been uplisted from the Least Concerned to the Near Threatened category, a sign ofincreased threat. These are Northern Lapwing (a grassland bird) and four wetland birds, namely Red Knot,Curlew Sandpiper, Eurasian Oystercatcher and Bar-Tailed Godwit.

Two other wetland birds, Horned Grebe and Common Pochard have been uplisted from Least Concerned to Vulnerable.

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Steppe Eagle (a raptor from grasslands), which is a regular winter visitor to the Indian subcontinent, hasbeen uplisted from Least Concerned to Endangered.

The list of threatened species keeps on increasing with every assessment.

Major Reason: Destruction of grasslands, wetlands and forests.

The other reason for decline of birds like Steppe Eagle, which mostly scavenges on animal carcasses, is the use of veterinary drug diclofenac used to treat livestock.

This drug causes renal failure in these birds. Three vulture species, namely White-backed, Slender-billed and Long-billed have also been severely affected by diclofenac.

IUCN Red list : YELLOW-THROATED BULBULLaboratory for the Conservation of Endangered Species (LaCONES), a conservation arm of the Centre for Cellular and Molecular Biology (CCMB) will make efforts to conserve yellow throated bulbul.

Why only Yellow Throated bulbul?

It is Endemic to the southern part of India

It has ‘Vulnerable’ status under the IUCN Red List

It is not threatened by poaching or capturing, but by habitat destruction over decades, especially owing to granite mining, agricultural expansion and cattle grazing.

4. NATIONAL MISSION FOR A GREEN INDIAThis mission is one of the eight Missions outlined under the National Action Plan on Climate Change (NAPCC).

Goals of the Mission: To increase forest based livelihood income of about 3 million households.

To increase forest/tree cover to the extent of 5 million hectares (mha) and improve quality of forest/tree cover on another 5 mha of forest/non-forest lands.

To enhance eco-system services like carbon sequestration and storage (in forests and other ecosystems), hydrological services and biodiversity; along with provisioning services like fuel, fodder, and timber and nontimber forest produces (NTFPs).

Mission Organization: At National level, an autonomous society under MEF with an inclusive governing council.

At State and District Levels, State Forest Development Agency (SFDA) and District FDA linked to District Planning Committee will be revamped.

Gram Sabha and its Committees will work at village Institutions level and in Urban Areas, Ward level Committees /RWAs with support from Municipal organizations and the Forest Departments.

Monitoring will be done at 4 levels, namely self-monitoring by community and field staff, Remote Sensing and GIS, third party monitoring by key indicators

Key Features of the Mission: It envisages a holistic view of greening and focuses on multiple ecosystem services, especially,

biodiversity, water, biomass, preserving mangroves, wetlands, critical habitats etc. along with carbon sequestration as a co-benefit.

This mission has adopted an integrated cross-sectoral approach as it will be implemented on both public as well as private lands with a key role of the local communities in planning, decision making, implementation and monitoring.

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It acknowledges the influence that forests have on environmental amelioration though climate changemitigation, food security, water security, biodiversity conservation and livelihood security of forestdependent communities.

The mission is based on decentralized participatory approach involving grass root level organizationsand community in planning, decision making, and implementation and monitoring.

5. MAJORITY OF ECOLOGICALLY SENSITIVE ZONES STILL NOTNOTIFIED A Total number of national parks and wildlife sanctuaries are 526

Ecologically sensitive zones (ESZ) has been notified only around 26 of them yet.

Supreme Court order on Ecologically sensitive zones All states and Union Territories were required to send proposals detailing the site-specific geographical

extent of ESZs around environmentally protected areas falling within their boundaries.

Unless site-specific ESZs are declared a 10-km area around each of these wildlife zones is treated as an ESZ.

Significance of Ecologically sensitive zones: According to the national wildlife policy, each of these wildlife zones was to have a protective zone (ESZ)

around it, wherepolluting and detrimental activities would be restricted.

The ESZ is based on the principles of providing sanctity to protected areas and strengthening the bufferzones and corridors around such areas.

All forms of infrastructure projects of commercial or public purpose, including mining, industries and hydro-power projects, are prohibited within such zones.

6. ECOLOGICALLY SENSITIVE ZONES AROUND OKHLA BIRDSANCTUARY The Ecologically Sensitive Zone in the Okhla Bird Sanctuary will be the area up to 100 metres from the

eastern, western and southern boundary and up to 1.27 km from the northern boundary of the OkhlaBird Sanctuary.

Notification was issued after the National Board of Wild Life (NBWL) cleared the process of demarcatingthe ESZ.

Features of Okhla sanctuary Number of bird species 300 bird species, especially water birds.

Situated at the Okhla barrage over Yamuna River.

Area is about 4 sq km

Species Information Two critically endangered (CR) species: white-rumped vulture and Indian vulture

Nine vulnerable (VU) species: Baikal teal, Baer’s pochard, sarus crane, sociable lapwing, Indian skimmer,Pallas’s fish eagle, lesser adjutant, bristled grassbird and Finn’s weaver

Seven near threatened (NT) species: ferruginous pochard, black-bellied tern, grey-headed fish eagle,erratically east to West Bengal and south to Kerala and Sri Lanka.

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What are its Impacts?A big relief to thousands of home buyers in Noida and its vicinity as their apartments will now fall out of the new notified area.

Concerns Once a thriving habitat for flamingos and sarus and pochards, the Okhla Bird Sanctuary today is

devoid of most of its winged visitors.

Commercial complexes, DND expressway, flyovers and even the Ambedkar Park, have destroyed the feeding grounds around the bird sanctuary.

7. THE PUBLIC LIABILITY INSURANCE (PLI) ACT, 1991

Why in news: The Ministry of Environment, Forest and Climate Change has issued directions to Central Pollution

Control Board (CPCB) to ensure better implementation of Public Liability Insurance (PLI) Act, 1991.

All the State Pollution Control Boards(SPCBs)/Pollution Control Committees (PCCs) for UTs have been advised for including PLI insurance policy as one of the point in the check list before according or renewing CTE (Consent to Establish) or CTO (Consent to Establish) to an industry.

Provisions made: The act makes it obligatory upon the user industries handling 179 types of chemicals and compounds

and other classes of flammable substances to subscribe a special insurance policy to cover the liabilities likely to arise on account of any chemical (industrial) disaster/accident.

These liabilities are payable to those affected people who are not the workers.

The Act establishes an Environment Relief Fund (ERF), which is subscribed by all such user industries.

8. MEETING OF LIKE-MINDED DEVELOPING COUNTRIES(LMDC)

WHAT IS LMDC?The Like Minded Group of Developing Countries (LMDC) is a group of developing countries who organize themselves as block negotiators in international organizations such as the United Nations and the World Trade Organization. LMDCs represent more than 50% of the world's population.India for the first time, hosted the meeting of the Like-Minded Developing Countries on Climate Change.

MAIN OBJECTIVES OF THIS MEETING: To prepare strategies and way forward for the negotiations in the run-up to Paris COP 21 Meet.

To exchange, coordinate and harmonize views on the Ad Hoc Working Group on the Durban Platform forEnhanced Action (ADP) in Bonn negotiating.

The meeting is significant, as it comes at a crucial juncture in the negotiations, given the limited time available

before the CoP-21 in Paris.

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Current Members

Algeria, Argentina, Bangladesh, Bolivia, China, Cuba, Ecuador, Egypt, El Salvador, India, Jordan, Iraq, Kuwait, Indonesia, Iran, Malaysia, Mali, Nicaragua, Pakistan, Saudi Arabia, Sri Lanka, Sudan, Syria, Venezuela and Vietnam.

CONCERNS OF LMDC:

The Paris Agreement should not be mitigation-centric but must address in a balanced and comprehensivemanner the six elements identified in the Durban mandate –

Mitigation,Adaptation,Finance,Capacity-building,Technology development and transfer,Transparency ofaction and support, as well as loss and damage in a balanced manner.

There is a need for protecting the long-term interest of developing countries, based on the principles ofequity and common but differentiated responsibilities and respective capabilities (CBDR)

Concern regarding shifting the financial burden to developing countries.

Disappointment at the “lack of text-based negotiations” in the last round of negotiations held in Bonn.

The LMDC expressed strong reservation against any obligatory review mechanism for increasing individualefforts of developing countries.

SCIENCE AND TECHNOLOGY

1. GSLV D6 SUCCESSFULLY LAUNCHEDThe GSLV D-6 is the second successful consecutive launch (earlier launch GSLV D-5 in January) of the GSLV series with indigenous cryogenic upper stage. ISRO is planning to test GSLV Mk III capable of carrying payload up to four tonne by the end of next year.

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Importance of GSLV:

GSLV will cost just one third of money spent on foreign agencies, which will reduce satellite launch costas well as will save forex.

It will enhance India’s capability to be a competitive player in the multimillion dollar commercial launchmarket. It will help in earning foreign exchange.

The GSLV will help ISRO put heavier communication satellites of GSAT class into orbit.

Reduction of dependence on foreign agencies gives strategic boost in this high tech sector.

2 consecutive successful launches proved the capability of ISRO and enhanced its confidence.

Difference between Cryogenic stage and other stages:

The cryogenic stage is technically a very complex system, as compared to solid liquid propellant stages, due to its use of propellants at extremely low temperature (cryo) and the associated thermal and structural challenges. A cryogenic rocket stage is more efficient and provides more thrust for every kilogram of propellant it burns.

2. ISRO CONFERRED GANDHI PEACE PRIZE 2014

The ISRO has upheld its mission of bringing space to the service of the common man and in the service of the nation.

ISRO through space technology has immensely helped in:

Improving the mapping of agricultural land and water-shed areas.

Providing advisories to fishing communities.

Creating data base of heritage sites.

Improving disaster management support.

Policy planning, monitoring and Implementation by gathering relevant data from remote sensing satellites.

Communication and connectivity.

These contributions have led to social, economic and political transformation through non-violence.

Prelims 2015 Question:

Who gets this prize?

This is an annual award given to individuals and institutions for their contributions towards social, economic and political transformation through non-violence and other Gandhian methods.

It is open to all persons regardless of nationality, race, creed or sex.

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3. INFORMATION ON WHITEFLY

There is large-scale crop damage from whitefly infestation this year, especially in northern India.

There are over 250 Bt cotton hybrids on the shelf in North India. More than 90 per cent of these aresusceptible to whitefly and leaf-curl.

What is Whitefly? It is a small (1-2 mm) white coloured insect affecting cotton, and also occurring on vegetables and other

crops in tropical and sub-tropical regions.

The whitefly sucks sap from the phloem or living tissue carrying organic nutrients, causes yellowing andupward curling of the leaves.

Reasons and spread: Rains were scarce and intermittent, farmers resorted to excessive irrigation and urea application that

promoted fresh vegetative growth and allowed whiteflies to proliferate.

The problem was worsened by over-spraying of pesticides.

Other reasons are delayed sowing, persistent drought coupled with hot and cloudy conditions.

The early-sown crop is less susceptible, as the mature leaves are not preferred by whiteflies.

The whitefly menace was not witnessed in Maharashtra. Although Telangana did report some incidence, it

was much less severe than Punjab.

Control measures: The best approach is to select methods causing least disturbance to beneficial insects that can control the

whitefly naturally.

Therefore, broad-spectrum insecticides such as synthetic pyrethroids and mixtures should be strictlyavoided.

It is better to rely initially on water sprays, followed by soap sprays, sprays with preparations of neem oil,castor oil, fish oil and rosin soap.

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4. INJECTABLE POLIO VACCINE (IPV)

OPV is made up of attenuated or weakened poliovirus and there is a risk of vaccine derived polio. IPV is madeup of inactivated (killed) polio virus and will provide immunity from all three strains of polio.

India eliminated wild polio virus infection in January last year, but there are still cases of drug induced poliothat needs to be tackled. Further, the risk of importation and continued cycle still persists. The Global PolioEradication Initiative (GPEI), which coordinates the global fight again polio, wants to stop all use of TrivalentOPV.

From April, 2016 the trivalent polio vaccine that is currently administered will be replaced by the bivalentvariety. It will reduce incidence of vaccine-derived polio virus.

Suggestions to enhance immunization: Drawing up comprehensive micro-plans for routine immunization.Intensively training frontline health workers who will carry out vaccinations.

Putting in place monitoring systems so that corrective measures can be taken when needed.

ADVANTAGES

As IPV is not a 'live' vaccine, it carries no risk of vaccine-associated polio paralysis.

IPV triggers an excellent protective immune response in most people.

DISADVANTAGES

IPV induces very low levels of immunity in the intestine. As a result, when a person immunized with IPV isinfected with wild poliovirus, the virus can still multiply inside the intestines and be shed in the faeces,risking continued circulation.

IPV is over five times more expensive than oral polio vaccine.

Administering the vaccine requires trained health workers and sterile injection equipment and procedures.

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5. GAGAN NAVIGATION SYSTEM

Gagan is a global positioning system (GPS) aided geoaugmented navigation system which is intended to provideaccurate navigation services.

Stipulated Range: Over the Bay of Bengal, southeast Asia, Indian Ocean, Middle East and African regions.

Important Features of GAGAN:

Gagan works by augmenting and relaying data from GPS satellites with the help of two augmentation satellitesand 15 earth-based reference stations.

The system corrects any anomalies in the position data and gives accurate routes, landing guidance and timesaving information to the pilots.

Fully approved for use in April 2015.

AAI and ISRO have jointly established the Rs. 770-crore GAGAN over a decade.

Significance of GAGAN:

It will be able to help pilots to navigate in the Indian airspace by an accuracy of 3 m.

This will be helpful for landing aircraft in tough weather and terrain like Mangalore and Leh airports.

Accurate guidance for planning shorter routes and safer landing patterns will reduce fuel cost.

Will help in improving safety, easing air traffic and airport congestion across the country.

After completely establishing this system, India reached a select league comprising the US, Europe Union (EU) andJapan which have similar systems.

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6. Concepts Behind Inventions of Nobel prizesConcept Image for Nobel prize in Medicine

Concept Image for Nobel prize in Physics

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Concept Image for Nobel prize in Chemistry

7. Vaccine developed to fight Ebola

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The Ebola virus is likely to be eradicated once for all as a new vaccine developed against the disease by PublicHealth Agency of Canada has shown 100 % efficiency in a trial that was carried out in Guinea.

The preliminary data extracted from the vaccination of thousands of people suggest that the vaccine works toprotect humans from the Ebola attack.

The scientific accomplishment, which has been authenticated by the medical journal, The Lancet, is likely tobring the West African epidemic to an end.

Since the epidemic is sporadic, breaking out in a few “hotspots” of West Africa, the trial was jointly performed byGuinean authorities, WHO, Medecins Sans Frontieres (MSF) and Norwegian Institute of Public Health.

Importance of Vaccine:

A dummy virus (vesicular stomatitis virus, or VSV) was designed with diluted elements of Ebola. As the riskfree virus enters a human body, it alarms the immune system, which launches a scathing attack on the intruder, killing it along with the deadly Ebola virus.

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MOM is aimed to explore and observe Mars surface features, morphology, mineralogy and the Martian atmosphere. Further, a specific search for methane in the Martian atmosphere will provide information about the possibility or the past existence of life on the planet.

FEATURES

It is launched by using a Polar Satellite Launch Vehicle (PSLV) rocket C25.

It costs 450 crore, weighed 1350 kg, travelled for 300 days covered 65 crore km @ 7Rs/km

It Carried 5 instruments

Lyman-Alpha Photometer (LAP), Methane Sensor for Mars (MSM)), Particle environment studies (MarsExospheric Neutral Composition Analyser (MENCA)), Surface imaging studies (Thermal Infrared Imaging t worksas an inspiration and catalyst for innovation in the country and bringing more youth into the field of science.

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SIGNIFICANCE OF THE MISSION Cost effectiveness

Technological benefits: The technology used in this mission has potential application in weather forecast,computer tech, health-medicine etc. in future

Success in first attempt

Economic Benefits: As ISRO establishes reputation, gets more contracts from foreign countries and more foreignexchange.

Effects on foreign policy: It can be used as a tool to exercise soft power by sending space missions of third worldcountries and SAARC countries.

China and India recently signed an agreement on “peaceful uses of outer space.” So, many countries are nowwanting to partner in ISRO’s success.

KEY FINDINGS Water on Mars

Increasing possibility of life on Mars.

High quality images published in Mars Atlas.

CRITICISMS Wastage of resources, given the socio economic condition of the country.

Highly elliptical Orbit: Not ideal for clear observation of a planet.

“Me too” mission: Due to limited payload capability of the PSLV, the mission lacked significantly sciencemission than one already performed by other Mars probe.

9. CALL DROP ISSUEWhat are its Reasons? The root of the problem is inadequate spectrum — a telco in India has 12 MHz of spectrum compared to the global

average of 40 MHz which reduces the capacity.

This is due to the hoarding of spectrum by the government — for instance, in this year’s auction, the Centre did notput on the block all the spectrum vacated by the ministry of defence. Though the Centre recently approved aspectrum-sharing policy, the rules are too constrictive to bring change.

Civic authorities have forced about 10,000 towers to shut down across major cities due to various reasons.

The lack of a uniform national policy on the setting up of these towers is a major problem.

Govt. steps and Solutions: To address the scarcity of cell phone towers — there are about 5,50,000 towers in India at present and

approximately 1,00,000 more are needed.

Govt. has agreed to allow them to be set up on top of government buildings dispel some of the misinformation onradiation from them.

Operational difficulties are tackled in installing towers

TRAI raised the penalty on telecom operators to up to Rs. 2 lakh for poor mobile service quality, including calldrops.

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POLITY1. FOREIGN FUNDING OF NGOS AND FCRA

Ministry of Home Affairs (MHA) recently cancelled the registration of Greenpeace India. The government took this measure under the Foreign Contribution Regulation Act (FCRA).

The central government has the power to prohibit from accepting foreign contribution or hospitality for

activities detrimental to the national interest or national security.

It prohibits "organisation of political nature" among others to accept foreign contributions.

The act seeks to regulate the acceptance and utilization of foreign contribution or foreign hospitality.

ISSUES WITH FOREIGN FUNDED NGO'S

Recently, Home ministry found 748 organizations who receive foreign donations but have not filed their return. Filing annual return is a mandatory procedure under the FCRA

In totality, only about 10 per cent of the over 22 lakh non-government organizations file their annual income and expenditure statements, revealed by CBI

Many reports of misappropriation of funds by NGOs and their lack of transparency and accountability

Though political activism with foreign funds is prohibited under FCRA, some Foreign Funded NGOs have been found actively taking part in political campaigns

Leading NGOs have been accused of mobilizing resistance against development projects (for instance, in the power sector), allegedly at the behest of foreign agencies, thus damaging India’s growth potential

Claiming involvement in “human rights initiatives” or “social empowerment”, some organizations are allegedly fronts for foreign-supported extremist and secessionist groups.

Allegations have been made of using foreign funds in religious conversion which is banned under FCRA.

ISSUES WITH FOREIGN CONTRIBUTION REGULATION ACT:

Though the stated objective was to strengthen internal security, it addresses only the voluntary sector and only foreign funding. This constitutes less than one per cent of gross inflow of foreign funds into India.

The FCRA registration process under the Bill confers a number of discretionary powers to the authorized officer.

There are a number of terms in the Bill including, “foreign source,” “foreign hospitality,” and “speculative business” that either lack clarity or are not defined.

It gives the central government powers to classify any organization as of "political nature" and prohibits its funding but it does not provide any guidelines to define organizations of a “political nature.”

Many of the objectives of the Bill are met by other laws in force such as the Unlawful Activities Prevention Act, 1967, the Prevention of Money Laundering Act, 2002, the Foreign Exchange Management Act, 1999, and the Income Tax Act, 1961.

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WORRIES OF NGO'S

Registration for the FCRA was easy a few years ago, it has now become a lot more stringent.

Often, the larger NGOs do not face a problem when it comes to funding, but smaller ones does.

There are several NGOs that exist only on paper. These have given others a bad name too and so the fundinghas dried up for many sectors

RECENT REFORMS TAKEN BY GOVERNMENT

Government replaced old rules with Foreign Contribution Regulation Rules 2015 to govern foreigncontributions received by NGOs

The Home Ministry had proposed making all dealings with NGOs online

The government has decided to host a website for such NGOs lacking wherewithal to create a website of theirown.

Banks have to inform Home Ministry about all foreign funds coming to an NGO account within 48 hours. Thisis to enable monitoring use or misuse of foreign funds.

The ministry has reduced the number of forms to be filled in by the NGOs and now the registration, renewaland prior permission forms have been combined into one single form

The government plans to streamline the audit and registration of non-governmental organizations (NGOs)receiving foreign funding to ensure greater disintermediation of processes so that there is minimal contactwith the bureaucracy.

NGOs that do not receive any foreign funding in a particular fiscal year will not be required to file a certifiedcopy of the auditors’ report with the ministry’s foreigners division.

WAY FORWARD

Sensitize all NGOs about compliance of FCRA act and rules when they receive funds from abroad.

All NGOs must respect the law of the land, maintain transparency and remain above board.

Agencies involved in creating engineered dissent just to influence the polity and economy of India should beselectively handled.

Issues like misappropriation of funds, lack of transparency and accountability of NGOs need to be addressedto bridge trust deficit between government and civil society

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2. SC / ST (AMENDMENT) BILL PASSED BY LOK SABHA

Provisions of Act:

The Bill seeks to amend the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989.

The Act prohibits the commission of offences against members of the Scheduled Castes and Scheduled Tribes (SCs and STs) and establishes special courts for the trial of such offences and the rehabilitation of victims.

New offences added under the Bill include:

Garlanding with footwear, Compelling to dispose or carry human or animal carcasses, or do manual scavenging, Abusing SCs or STs by caste name in public, Attempting to promote feelings of ill-will against SCs or STs or disrespecting any deceased person held in high esteem.Imposing or threatening a social or economic boycott.

Actions to be treated as offences:

The Act outlines actions by other than SCs/STs against SCs or STs to be treated as offences.

Certain existing categories are amended and few new categories of actions are added.

Forcing an SC or ST individual to vote or not vote for a particular candidate in a manner that is against thelaw.

Assaulting or sexual exploiting an SC or ST woman.

Preventing SCs/STs from following activities:

Using common property resources.

Entering any place of worship that is open to the public.

Entering an education or health institution.

The bill also specifies duties for public servants which, if neglected, shall be punishable with imprisonment.

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The duties include:

Registering a complaint or FIR.

Reading out information given orally, before taking the signature of the informant and giving a copy ofthis information to the informant etc.

Role of courts:

The Bill specifies that an Exclusive Special Court must be established at the district level to try offencesunder the Bill.

Special Court may be established to try offences in districts with fewer cases.

Adequate number of courts must be established so that cases are disposed of within two months.

Appeals of these courts shall lie with the high court, and to be disposed of within three months.

A Public Prosecutor and Exclusive Public Prosecutor shall be appointed for every Special Court andExclusive Special Court respectively.

Rights of victims and witnesses

It shall be the duty of the state to make arrangements for the protection of victims, their dependents and witnesses.

New offences added under the Bill include:

Garlanding with footwear, Compelling to dispose or carry human or animal carcasses, or do manual scavenging.

Abusing SCs or STs by caste name in public.

Attempting to promote feelings of ill-will against SCs or STs or disrespecting any deceased person held in high esteem.

Imposing or threatening a social or economic boycott.

The Bill may take measures such as:

Concealing the names of witnesses

Taking immediate action in respect of any complaint relating to harassment of a victim, informant or witness, etc

Any such complaint shall be tried separately and be concluded within two months.

3. UNIFORM CIVIL CODE (UCC)Article 44 of the Constitution, which is one of the Directive Principles of State Policy, says: “The State shall endeavor to secure for the citizens a uniform civil code throughout the territory of India.”

Present Situation:

Currently, different laws regulate these aspects for adherents of different religions. For example: A Christianman has questioned a provision that requires a Christian couple to be judicially separated for two yearsbefore getting a divorce, whereas this period is one year for Hindus and other non-Christians.

A Uniform Civil Code essentially means a common set of laws governing personal matters for all citizens ofthe country, irrespective of religion.

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Why in news:

On 12 October 2015, A Supreme Court bench questioned the government about its mandate on framing the Uniform Civil Code so that unvarying standards are ushered in and all religions are regulated by the same yardsticks in matters of law.

The role of article 14 and 25 in Uniform Civil Code:

By the 42nd Amendment of 1976, India was declared a secular nation. As a result of this, and the understanding of Article 25, the State and its institutions have not interfered with religious practices, including in relation to various personal laws.

There is a view that this principle runs contradictory to the idea of secularism which requires the State to be inert to religious considerations-and not tacitly support them by following a practice of non-interference, no matter what.

Clause (2) of Article 25 empowers the State to frame any law to regulate or restrict “secular activity which may be associated with religious practice”-therefore, it is argued, Article 25 is no bar to having a Uniform Civil Code.

The inconsistency in personal laws has been challenged on the touchstone of Article 14, which ensures thenright to equality. Litigants have contended that their right to equality is endangered by personal laws that put them at a disadvantage.

Benefits of Uniform Civil Code:

All the laws related to marriage, inheritance, family, land etc. would be equal for all Indians.

It will help in improving the condition of women in India. Indian society is patriarchal and by allowing old religious rules to continue to govern the family life, condemns all Indian women to subjugation and mistreatment.

It will help the society move forward and take India towards its goal of becoming a developed nation where women are treated fairly and given equal rights.

The various personal laws have loop holes exploited by those who have the power. Informal bodies like Panchayats continue to give judgments that are against our constitution. Human rights are violated through honor killings and female feticide throughout our country.

It will also help in reducing vote bank politics. If all religions are covered under the same laws, the politicians will have less to offer to communities in exchange of their vote.

It will help in integration of India - A lot of the animosity is caused by preferential treatment by the law of certain religious communities.

This could in time induce custodians of faith to look inwards and seek to codify and reform age-old personal laws in conformity with current modernizing and integrative tendencies or risk losing their flock.

Challenges in implementing Uniform Civil Code:

India has a strong and long history of personal laws and it cannot be given up easily.

A broad consensus must be drawn among different communities to facilitate such a landmark step in India’s religious, social, political and most importantly judicial history.

The biggest obstacle in implementing the UCC, apart from obtaining a consensus, is the drafting. Should UCC be a blend of all the personal laws or should it be a new law adhering to the constitutional mandate? There is a lot of literature churned out on UCC but there is no model law drafted.

Way forward:

Take an evaluation survey of all communities to suggest reforms within personal laws on modern and liberal lines. Communities should be convinced that UCC is to bring reforms not suppress them. There is a need of piecemeal reform rather than a holistic reform starting with what minorities are most comfortable of doing away with.

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4. MONEY BILLRecently Opposition alleged that government was the eroding legislative powers of Rajya Sabha by deliberately introducing crucial bills as money bills. Rajya Sabha has virtually no powers regarding passage of money bills.

Constitutional Provisions regarding money bill

Article 110 defines what constitutes money bill and the Constitution has vested power to certify money bill in Lok Sabha Speaker, whose decision is final.

The money Bill once passed by the Lok Sabha is automatically passed by Parliament if it has been in the Rajya Sabha for a fortnight (fourteen days). Thus, the Lok Sabha alone has the power to accept or reject money bills.

However, the Constitution makes it abundantly clear that money bills should contain only matters listed under article 110 (1). If a bill is a combination of any of the above and some other provisions not incidental to those matters, it cannot be called a money bill.

Lack of remedy

The Speaker, while certifying a bill as money bill, is in effect depriving the Rajya Sabha of its legislative power to disapprove a bill. There is no remedy lying with Rajya Sabha for wrong decision taken by speaker regarding certification of money bill.

Way Forward

Neither the Constitution nor the House rules lay down any procedure with regard to certifying a money bill. It is therefore necessary to evolve a proper procedure for the Speaker to arrive at a decision.

A more prudent approach would be the examination of given bill by committee of the secretariesgeneral of both Houses and accordingly, Speaker takes a final decision.

5. PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA(PMKKY) The Ministry of Mines launched new programme to provide for the welfare of areas and people affected by

mining related operations, using the funds generated by District Mineral Foundations (DMFs).

It was the Observation of Justice A P Shah Commission in Odisha that the mighty mining companies with theconnivance of the concerned department violate mining related laws and indulge in illegal mining activities.

Also the mineral-rich areas are afflicted by a severe asymmetry of power between local communities andthe State-miner combine.

MAIN OBJECTIVES:

To implement various developmental and welfare projects/programs in mining affected areas thatcomplement the existing ongoing schemes/projects of State and Central Government:

To minimize/mitigate the adverse impacts, during and after mining, on the environment, health andsocio-economics of people in mining districts

To ensure long-term sustainable livelihoods for the affected people in mining areas

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SALIENT FEATURES

High priority areas like drinking water supply, health care, sanitation, education, skill development, womenand child care, welfare of aged and disabled people, skill development and environment conservation willget at least 60 % share of the funds.

For creating a supportive and conducive living environment, balance funds will be spent on making roads,bridges, railways, waterways projects, irrigation and alternative energy sources.

All areas directly affected by mining related operations as well as those areas indirectly affected by suchoperations will be covered under PMKKKY.

Indirectly affected areas are those where negative impacts of mining in the form of deterioration of water,soil and air quality, reduction in stream flows and depletion of ground water, congestion and pollution dueto mining operations etc. happen.

This way, government is facilitating mainstreaming of the people from lower strata of society, tribals andforest-dwellers who have no wherewithal and are affected the most from mining activities.

The Mines and Minerals (Development & Regulation) Amendment Act, 2015, mandated the setting up of

District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations andto protect the interests of tribal communities who have borne the costs of mining.

The miners have to contribute a fraction to DMF of total royalty payable to people. Using the fundsgenerated by this contribution, the DMFs are expected to implement the PMKKKY.

REFORMS REQUIRED FOR EFFECTIVE IMPLEMENTATION

The DMF's board and its executive committee should have representation from local communities.

There should be provision of conducting social audits by local people of projects carried out by DMFs.

There is need of building the capacities of affected communities providing them with monitoring powers on existing mines, enabling informed participation in consent processes, and holding periodic district-level consultations on the impacts of mining

The decision-making in mining projects must yield to greater public scrutiny, in particular of local communities.

Public participation and local knowledge should be incorporated in institutional framework as they are crucial to building an effective DMF.

The present structure is overly centralized, communities can neither plan nor authorize tasks, which they

believe the DMF should undertake.

6. NEERACHAL NATIONAL WATERSHED PROJECT

Full Concept Presentation

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Why in news:

The Cabinet Committee on Economic Affairs (CCEA), has given its approval to implement the World Bank assisted National Watershed Management Project "Neeranchal" with a total outlay of $357 million (Rs 2142.30 crore).The cost of the project is estimated at Rs. 2,142.30 crore of which the Centre will be pitching in with Rs. 889 crore while Rs. 182 crore will be provided by the respective State Governments.

Main Objectives

The development objective of the Neeranchal National Watershed Project for India is to support integrated watershed management program (IWMP) through technical assistance to improve incremental conservation outcomes and agricultural yields for communities in selected sites, and adoption of more effective processes and technologies into the broader IWMP in participating states.

The Integrated Watershed Management Programme (IWMP) was implemented since 2009-10 by the DoLR, for supporting watershed development in 28 States.

From 2015-16 onwards, the IWMP will be implemented as the Watershed Component of PMKSY.

Need of the Project:

Watershed development is critical to India’s development as vast stretches of agricultural land are in rain fed regions, characterized by extensive land degradation, low rainfall, reduced agricultural productivity, and higher rates of poverty.

The project will be implemented over a six-year period and will provide technical assistance to the Government of India’s national Integrated Watershed Management Program (IWMP), which is the second largest watershed program in the world after China.

Challenges:

However, despite the successes, a number of challenges remain for watershed development to achieve better outcomes, such as:

Enhanced participation of communities

Building stronger capacities and systems to plan

Implement, monitor and post-project sustainability of local institutions and assets.

These challenges, if not resolved, can result in implementation delays, slow disbursements and benefits.

Importance of this programme:

The project will strengthen the capacity of key national and state level institutions currently implementing watershed programs such as the IWMP, including the central Department of Land Resources (DoLR) and the State Level Nodal Agencies (SLNAs) for more effective planning, implementation, monitoring and evaluation of their programs.

It will support the preparation of integrated science-based, participatory watershed plans with a greater focus on water management.

These plans will guide investments to improve more efficient use of water for agriculture, recharge localgroundwater, and enhance the convergence of various programs in order to ensure more effective use ofpublic resources.

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The project will help farmers adopt new soil, water and crop management techniques to increase vegetative cover, reduce soil erosion, and improve agricultural yields.

It will facilitate access to real time weather forecasts and help farmers adopt climate smart agricultural practices to mitigate against climate change impacts.

It will also improve rural livelihoods through training, better extension services, and strengthened forward linkages to markets.

The project approved will support IWMP activities in selected sites in the states of Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.

It will cover about 400 sub-watersheds of about 5,000 ha each and reach approximately 482,000 farmer households and 2 million people.

INTERNATIONAL RELATIONS

1. EUROPE’S REFUGEE CRISIS According to the International Organization for Migration (IOM), more than 3,50,000 migrants and refugees have

tried to cross the Mediterranean sea into Europe.

The U.N. says 2,500 people have died on the seas so far this year. Most of them are from West Asia, particularly from the war-ravaged countries of Syria, Iraq and Libya; many are also from the disturbed areas of Africa.

A substantial number of refugees are also from Afghanistan and Pakistan

WHY MIGRATION

Endless conflict has ruined the social, political and economical structures of some countries in West Asia, making it impossible for people to have a secure livelihood. This is what makes people flee their own countries to other parts of the world, in search of peace, employment and stability.

Freedom from conflict is important reason for large scale migration.

WHY EUROPE

Europe is the closest wealthy, safe and accessible region from the Mideast and Africa.

Also, some European countries are known for welcoming asylum seekers and providing benefits to help them get started in their new homes.

Europe is the most preferred destination for the people from these fragile regions as it is economically prosperous, socially secure and has better immigration laws.

Europe is experiencing one of the most significant influxes of migrants and refugees in its history.

THE ROLE OF THE EURO-ATLANTIC POWERS TO DESTABILIZE WEST ASIA

West Asia in the past was not like this; despite illusive democracy, there was political stability and economic activities flowed quite smoothly. West Asia was and is geo-economically extremely relevant for the U.S. and its allies due to having an abundance of energy resources.

It was in pursuance of narrow political objectives that Western powers entered West Asian territories and destabilised them.

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Iraq: Iraq is in ruins, even though it does not possess any weapons of mass destruction.

Syria: There is enough evidence to prove that on the pretext of supporting pro-democratic forces in Syria, western powers ended up helping the radical groups, providing necessary fodder for the birth of the deadly Islamic State.

Yemen: Western power supporting the Saudi Arabia led coalition forces that are bombing and destroying Yemen.

Afghanistan: Afghanistan, also one of the known battlefields of the Cold War, was deserted by the West after the disintegration of the Soviet Union. But it was revisited post-9/11 by the Euro-Atlantic powers to destroy Al-Qaeda’s terror network. Yet, even after the death of Osama bin Laden, political instability continues in Afghanistan.

HOW IS EUROPE RESPONDING

European countries disagree about how to handle the crisis. Southern countries like Greece and Italy want other countries to take them in. European Union rules say migrants should be settled where they first land, but now enforcement of those rules is becoming impossible.

The European Union has unveiled a refugee quota plan to address the crisis, but is already facing opposition from eastern members

ANALYSIS

Their irresponsible acts for achieving narrow political objectives have destabilised West Asia, and now

European countries cannot turn their backs to the problems of the refugees.

In this regard, it is also crucial for the EU to involve the U.S. Similarly, the stable countries of West Asia should be contacted to provide some respite to these refugees.

If the goal is to stop the migration, that would require ending the conflicts in Syria, Iraq and elsewhere.

2. CHINESE DAM ON BRAHMAPUTRA The dam at Zangmu, Tibet in the middle of the Brahmaputra, or Yarlung Zangbo as it is known in China, is

now fully operational.

China has in its current five-year plan also given the go-ahead to start work on three other dams, one of which is even bigger than the 510 MW Zangmu dam – a 640 MW dam scheduled for construction at Dagu, 18km upstream. Two smaller dams will be built at Jiacha and Jiexu.

The implications of construction of the dam for India are on several fronts.

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if reservoirs are built, or waters diverted, it could affect the river's ecosystem in the upper stretches.

Second, it gives China a stronger say in water sharing discussions because it has established claim of use of these waters.

A huge dam at the Great Bend will devastate the river’s fragile ecosystem — destroying the magnificent biodiversity of the Assam and Arunachal Pradesh regions.

The dams also raised concerns in India over their ability to release the water in times of conflict which could pose serious risk of flooding.

India is concerned that if the waters are diverted, then projects on the Brahmaputra, particularly the Upper Siang and Lower Suhansri projects in Arunachal Pradesh, may get affected.

Agreement between India and China:

India and China had signed an agreement to allow Indian hydrological experts to conduct study tours to directly monitor the river’s flow in Tibet and to extend provision of hydrological data in the flood season.

During Prime Minister Narendra Modi’s visit to China, both sides had also agreed to step up cooperation through an expert-level mechanism on the provision of flood-season hydrological data, emergency management and other transborder river issues.

3. KALADAN MULTI-MODAL TRANSIT TRANSPORT PROJECT

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The Cabinet, in October, gave its approval for the revised estimated cost of INR 2904.04 crore for this project.

The Cabinet had earlier approved the project at a cost of INR 539.91 crores in 2008. The project was to get completed by 2013, but it is now expected to get completed by 2016.

What it is:

The Kaladan Multi-Modal Transit Transport Project is a project that will connect the seaport of Kolkata with Sittwe seaport in Myanmar by sea; it will then link Sittwe seaport to Lashio in Myanmar via Kaladan river boat route and then from Lashio on to Mizoram in India by road transport.

Reasons for cost overrun:

Roadblocks like challenging geographical terrain, protests of local people against land acquisition have caused the project to get delayed and resulted in the cost overrun.

Benefits for India:

Current route from North East to Kolkata port via chicken neck faces heavy traffic; cargo via this route takes many days to reach a port.

This project will reduce distance from Kolkata to Mizoram by approximately 1000 km and cut travelling time to 3-4 days for transport of goods

Apart from development of North-East region, this route is necessary in case of any conflict with China as the present route, i.e., chicken neck could be blocked by China in conflict situation.

Delay in project:

Several obstacles have made the execution of the project a tough task.

Not only is road construction taking place in challenging geographic terrain but also local communities are protesting land acquisition by the government.

Cost overrun: Due to delay in completion the project cost has increased .To speed up the project execution; government has sanctioned the revised cost estimate.

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4. INDIA AND THE UNSC ISSUES After the United States, Russia too has clarified that it is open to supporting India’s bid for a

permanent seat in the United Nations Security Council (UNSC). Russia supports the candidature of India and Brazil as well as an African country in the UNSC.

But the US, Russia and China are not in favour of any large-scale reforms of the UN security council and giving veto power to new members.

Background

India, which will be competing for a permanent seat with Germany, Japan and Brazil, already has the support of

France and the U.K., and has long held that as one of the biggest democracies and a growing economy it is poised to take its place in the UNSC complete with the veto. However, China remains a big roadblock as it has not clarified its position on support for India.

India and UNSC

India was among the founding members of United Nations.

It is the second largest and one of the largest constant contributor of troops to United Nations Peacekeeping missions.

India, since long time, has been demanding expansion of UNSC and its inclusion as permanent member in it. It has been a member of UNSC for 7 terms and a member of G-77 and G-4, so permanent membership is a logical extension.

Implications

It is imperative that the consolidated document uploaded by the President of the General Assembly, Sam Kutesa, at least be accepted by the countries as a basis for discussing UN reform next year.

Indian officials feel that the fact that countries have committed to positions is a positive development for the process in this long discussion of seven years.

If, anyone of the P-5 countries — for instance, China — decides to veto a resolution to accept the document, India’s hopes for a permanent seat in the near future will be in danger.

UNSC - Key Facts

The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations and is charged with the maintenance of international peace and security.

Its powers include the establishment of peacekeeping operations, the establishment of international sanctions, and the authorization of military action through Security Council resolutions; it is the only UN body with the authority to issue binding resolutions to member states.

The Security Council consists of fifteen members. Russia, the United Kingdom, France, China, and the United States—serve as the body’s five permanent members. These permanent members can veto any substantive Security Council resolution, including those on the admission of new member states or candidates for Secretary-General.

The Security Council also has 10 non-permanent members, elected on a regional basis to serve two-year terms. The body’s presidency rotates monthly among its members.

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SOCIAL ISSUES

1. RESERVATION IN INDIA

WHY IN NEWS?

The Gujarat witnessed statewide mobilization of Patel community demanding quota for themselves and reforms in reservation policy of India.

IMPORTANT SUPREME COURT JUDGMENTS

Mandal Case: Under this, Supreme Court restricted total reserved quota up to 50 percent and excluded advanced section in other backward castes from benefits of reservation

Justice O. Chinnappa Reddy in his 1985 judgment: efficiency cannot be used as a camouflage to let the upper classes take advantage of the backward classes in its name and to monopolise the services, particularly the higher posts and the professional institutions”.

Jat Reservation: The Supreme Court ruled that “caste” and “historical injustice” cannot blind a state in according backward status to a community and that new emerging groups such as transgenders must be identified for quota benefits.

NEED OF RESERVATION IN INDIA

Social empowerment of disadvantaged section of society

Reduce discrimination by providing educational and employment opportunities

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CONSTITUTIONAL PROVISIONS

Article 15(3) - State can make special provision for women and children

Article 15(4) - State can make special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes

Article 16(4) - State can make provision for the reservation of appointments or posts in favour of any backward class of citizens

Article 46 - To promote the educational and economic interests of SCs, STs, and other weaker sections of society

ISSUES WITH RESERVATION POLICY OF INDIA

Stagnant: The reservation policy which was initiated as a temporary provision (for 10 years) for Scheduled Castes(SC) and Scheduled Tribes (ST) in our Constitution in 1950, has expanded its coverage and has now become an almost a permanent feature.

The existing reservation policy has failed to assimilate lowest castes/tribes within the mainstream economy and society.

Political Mobilization: Over the years, political parties has utilized caste-based reservation as vote bank politics for their electoral gain

Inter-caste conflicts and tensions: The tool of reservation has failed miserably in removing caste differences and has promoted the caste divide and caste conflicts.

Dissatisfaction: the communities excluded from reservations harbor animosity and prejudice against the castes included in the reservation category.

Class within Castes: The creamy layer of reserved category has benefited most leaving mostly on the fringes devoid of any benefits and poor.

The poor among general categories are resentful and frustrated, and tend to blame reservations for all their problems.

REFORMS REQUIRED

Better Identification: New yardsticks need to be developed for the identification of backward group instead of solely deciding on the basis of caste. It should include social and economic criteria.

Dis-reservation: Families of public officials of a certain rank – IAS, IPS, other Central and State civil services, present or former MLAs, MPs, other senior politicians – certain high income professionals like physicians, chartered accountants, managers above a certain rank in the private sector, and businessmen and others above a certain income should be dis-reserved.

Self-proclaimed backwardness: The perception of a self-proclaimed socially backward class of citizens cannot be a constitutionally permissible yardstick for determination of backwardness.

Support to poor: No child with ability and desire should ever be denied opportunities for higher education on account of poverty or birth. Scholarships, free tuition, soft loans and other mechanisms must be strengthened.

Develop Capabilities: Apart from providing admission to colleges and jobs, capabilities of the deprived and excluded section should also be developed.

Assimilation: The benefits should flow to the vast majority of underprivileged children from deprived castes; not restricted to few elites.

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SHOULD WE MOVE AWAY FROM CASTE-BASED RESERVATION?

Caste-based reservation has not been completely successful in bringing up the weakest member of the group.

It prevents us from transcending caste and causes resentment against the beneficiary group, and existing prejudices and stereotypes against the group are reinforced.

EVALUATE EVIDENCE-BASED APPROACH FOR AFFIRMATIVE ACTION

Under Evidence based approach, the policy framework is explicitly linked to empirical information relating to disadvantage. It requires collection, maintenance and analysis of data of all citizens. It may include social as well as economic indicators. Its merits and demerits are:

Better Identification: The individuals genuinely in need of support or preference can be identified cutting across the caste boundaries.

The major advantage of such an approach is that it highlights the fundamental reasons why affirmative action is being undertaken – namely, various sorts of social and economic disadvantage.

Reduces caste-based politics: It helps to de-essentialise identity markers like caste or religion.

Reduce inter-caste conflicts: It provides a rational explanation why specific castes or communities are entitled to compensatory discrimination.

Assimilation: It might also help target the benefits better by prioritizing the weakest members of a weak group.

Disadvantage: The only downside is that such approaches become data dependent, and are vulnerable to the failings of the data sources, and to the fallacy of data.

WAY FORWARD

India has changed a lot since the reservation policy was introduced. The deficiency of data and technology has made then government to adopt simple approach of caste-based reservation. However, with the availability of sufficient data through census and real time updation technologies using Aadhaar number, evidence based approach could be utilized. It will help in better targeting and thus providing benefits to real beneficiary.

2. RASHTRIYA SWASTHYA BIMA YOJANA (RSBY)

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Findings of report:

Despite high enrollment in RSBY, the proportion of out-of-pocket expenses have steadily increased. Between 2004-05 and 2011-12, hospitalization expenses have increased at high rate.

There is a serious concern of rampant systemic leakage of resources.

The report pointed out that a “major design flaw in RSBY and other such state health insurance programmes is their narrow focus on secondary and tertiary care hospitalisation.

The study concluded that RSBY was being used mostly by those who already had better access (to healthcare services) and the most marginalized sections were being excluded further.

Government proposes changes:

Rashtriya Swasthya Bima Yojana (RSBY) will be restructured to make its coverage wider, intensive and ITdriven.

The restructured scheme, to be coordinated by the Union Health Ministry2, will bring together severaldisjointed schemes coordinated by different agencies under one umbrella with more benefits and beneficiaries.

Those states which want to extend the services to people above poverty line (APL) and provide secondary and tertiary benefits could do so as a top up of the scheme

An important feature of the new scheme was the strong IT platform which would be created for facilitatingoperation of the scheme.

A large database is being created that would detail facilities at every hospitals, disease profile and otherdetails and would help immensely every stakeholder

The restructured RSBY would cover around 8 to 10 crore BPL people and there will be enhancement of cashlimits for treatment.

Improved quality, universal coverage, affordability would be the hallmark of the new scheme, which will alsolay stress on preventive medical care

The scheme envisages free medical check-ups once in every three years for the age group vulnerable tocardiac diseases and diabetes

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3. SCHOOL EDUCATION IN INDIA

Survey in UP: NGO Buniyad

Performance of private schools was relatively better than government schools.

Parents are willingness to pay more for better performing schools.

The incentive for performing well has created competition among schools resulting in significant improvement in quality of education.

Poor performance of government schools:

Government schools are mainly attended by those belong to socially and economically marginalized sections.

The affluent and middle class which used to hold teachers and official accountable for standards in government school has migrated to private schools.

Measures required:

The state government should establish affordable residential schools in each districts on the model of Jawahar

Navodaya Vidyalas. It will increase competition and result in better performance.

The salary of government teachers should have two components - fixed and variable. The variable component should depend upon the performance of school and teacher.

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Use of Information Technology and Learning Outcomes:

OECD Report

Computers in schools do not necessarily contribute to higher learning achievement levels by children.

In some East Asian Countries like Japan, South Korea and Singapore where classroom use of computers and the Internet is relatively limited or minimal, students have achieved consistently high scores over the recent years.

These countries have better school management system.

Indian scenario:

Since the 1990s, State governments have promoted the use of computers in teaching assuming that computers enhance children’s academic achievement.

Equipping schools with computers is treated as a reliable short cut to higher quality.

The states like U.P. distributed free laptops to students and later discontinued the practice.

The computer-equipped classrooms requires even more competent teachers to guide students how to find reliable sources when a variety of sources are available, to develop skills of mindful reading to spot important points.

The digital environment requires a greater engagement between the teacher and students over any subject matter. This necessity arises out of the nature of tools involved in the new information and communication technologies (ICTs).

Children are significantly vulnerable to the cognitive and emotional problems that easy access to the Internet create. The use of new digital tools for teaching children should be exercised with caution.

Way Forward:

Instead of e-fixation in education sector as a short cut route, better-management systems and more focused policies are required.

The curriculum policies and examination reforms need to reviewed and aligned with the best international practices.

The use ICT technology in school will not bring higher learning in itself, it need to integrated with better teaching staff, more awareness and proper guidance to students of its usage.

4. GLOBAL HUNGER INDEX AND INDIA It is Calculated annually by International Food Policy Research Institute (IFPRI), the GHI highlights successes

and failures in hunger reduction and provides insights into the drivers of hunger.

By raising awareness and understanding of regional and country differences in hunger, the GHI aims to trigger actions to reduce hunger.

The GHI ranks countries on a 100-point scale.

Zero is the best score (no hunger), and 100 is the worst, although neither of these extremes is reached in practice.

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1. Undernourishment: the proportion of undernourished as a percentage of the population (reflecting the share of thepopulation with insufficient calorie intake)(weight = 1/3rd);

2. Child wasting: the proportion of children under the age of five who suffer from wasting (that is, low weight for theirheight, reflecting acute undernutrition) (weight= 1/6th);

3. Child stunting: the proportion of children under the age of five who suffer from stunting (that is, low height for theirage, reflecting chronic undernutrition)(weight=1/6th); and

4. Child mortality: the mortality rate of children younger than the age of five (partially reflecting the fatal synergy ofinadequate dietary intake and unhealthy environments) (weight=1/3rd).

India has moved up to 55 from 63 in The Global Hunger Index, but fighting hunger remains a challenge.

Undernourishment and mortality among children remain alarmingly high.

Why fighting Malnutrition is Important?

Malnutrition affects men, women and children.

Poor nutrition in early life, often invisible to most, shows up in the daily travails of adults in later life — lower work productivity, higher diabetes, greater risk of heart disease, high blood pressure.

Nutrition also affects the wealth of nations; the costs of poor nutrition are numerous, but on a positive note, the returns to investment in nutrition are impressive.

For every rupee spent on effective nutrition programmes, Rs16 can come back through improved productivity in the labour force.

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Reasons for Hunger in India:

40 % of all fruits and vegetables, 20 % of all food grains produced rot due to inefficient supply chains and neverreach consumer markets.

BPL households spend 70 % of their income on food.

APL households spend 50 % of their income on food.

Urban working class spends 30 % of their income on food.

Agriculture contributed 13.7% to the GDP in 2013.

50 % of India is employed in agricultural sector.

Global Facts:

64 % of world’s extreme poor live in 5 countries- Nigeria, Congo, India, Bangladesh, and China.

805 million people globally do not have enough to eat.

Hunger kills more people annually than AIDS, malaria & TB combined.

One in nine people globally go to bed hungry each night.

India facts:

1/6th of the Indian population is undernourished.

1 in four children in India are malnourished.

190 million people in India go hungry daily.

3000 children in India die daily from poor diet related illness.

30.7 % of children in India aged below 5 are underweight.

24% of deaths of children aged below five globally is in India.

58 % of children in India are stunted before they are 2 year-olds.

30 % of the global neo-natal deaths is in India.

ECONOMY

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1. DEFLATION IN INDIA

Deflation is simply the opposite of inflation. That is, prices fall from one period to the next. So deflation is a

decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below

0% (a negative inflation rate).

ARE WE CLOSE TO DEFLATION?After the release of the April-June gross domestic product (GDP) numbers in first week of September, chief

economic adviser Arvind Subramanian reportedly warned that Indian economy appears to be on price

deflation.

FACTORS WHICH INDICATE DEFLATION

Government officials focus on input prices, which have indeed corrected sharply, due to global factors.However, RBI correctly continues to stick to CPI inflation.

The gap between input price captured in Wholesale Price Index (WPI) inflation, which is also affected byinflation in tradable, and CPI inflation has been widening.

The gap partly reflects the bigger and faster decline in WPI inflation, thanks to the slump in global commodity prices. However, the pace of the passthrough to retail inflation has been slow and the magnitude less than desired.

Deflation is more than just a case of temporary negative inflation because of, for example- a plunge incommodity prices, the impact of which will be a one-off and spread over several months.

Deflation captures a significant shift in consumer behaviour, including postponement of spending inanticipation of lower prices. That is hardly the case in India. In fact, the Indian consumer will perk up following the

mini boost from the forthcoming announcement of the Seventh Pay Commission. The most important point in this debate is that companies take decisions based on wholesale prices while citizens

take decisions based on consumer prices. To put it more clearly, their wage demands are based on their expectations about consumer prices. There are no signs of deflation right now, only of welcome disinflation.

POSITIVE IMPACT

Deflation can be treated as a temporary condition that will allow for an improvement in competitiveness and

balancing the budget.

Moderate deflation may benefit savers and investors because the value of their assets is appreciating relative to therate of deflation.

In general, when there is slack in the labor force there is downward pressure on wages, which can seem positive forbusinesses. Business owners can improve margins by paying workers less.

NEGATIVE IMPACT

Deflation can be detrimental for borrowers since they pay back debts in currency that is in effect moreexpensive due to deflation.

However, it is important to remember that workers are consumers. If wages are flat, then growth is likely tobe flat.

In general, flat wages are something that restrains consumption growth, and therefore can have adeflationary effect.

Low inflation or deflation, therefore, is correlated with high unemployment.

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CONCLUSION As a short-term condition, lower prices might give the consumer a break in the face of low wage inflation.

Anemic growth in wages can be good for businesses in the short run as margins improve.

In long term, however, deflation can lead to lower profits and cash flow for these same businesses. For central banks, deflation is an economic situation they want to avoid since deflation and high unemployment tend to go hand in hand.

It is important that consumers and businesses should have an expectation that prices will rise in the future.

Otherwise, there's the potential for businesses to put off hiring and investing in new equipment if there's the expectation that the cost will be comparable, or less, in the future. Likewise, consumers can continue to put off many purchases if there's no concern that the price will rise. In this way, low inflation or deflation acts as a disincentive for investment and expenditure.

2. WORLD BANK REPORT ON GLOBAL POVERTY

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Recently, World Bank has released global Monitoring Report for 2014-15 on the Millennium Development Goals.

Some of the findings of the report are-

The World Bank has released new estimates that show that fewer than one in 10 people are now living in extreme poverty.

More than 1.2 billion people have risen above the global poverty line over the past 25 years. This is the first time in human history that the worst type of poverty looks under control in most parts of the world, except for some parts of Africa. The world seems to be on course to ending extreme poverty by 2030.

The sharp decline in extreme poverty since 1990 is most clearly linked to the increase in global growth following the liberalization of most economies.

The spectacular economic success in China is obviously one big reason why global poverty has come down so rapidly. No country in history has managed to pull so many people out of poverty in such a short period of time

Indian perspective: India has been the biggest contributor to poverty reduction between 2008 and 2011, with around 140

million or so lifted out of absolute poverty.

However, even this remarkable feat is not enough—the report says that in 2011, India accounted for 30% ofthose living in extreme poverty in the world.

SriLanka, Nepal and even Pakistan have done a better job of reducing poverty headcount as seen frombelow figure.

Poverty Line: The bank uses an updated international poverty line of $1.9 a day, which incorporates new information on

differences in the cost of living across countries.

The new line preserves the real purchasing power of the previous line (of $1.25 a day in 2005 prices) in theworld’s poorest countries.

Challenges: There are three big issues that need to be addressed to achieve the target of stamping out mass poverty by

2030.

Slower economic growth

The rise in inequality in most countries.

More attention should be paid on to poverty in all its dimensions, from education to health to socialmobility.

3. PULSE PRICE RISE

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This year pulses’ prices, which are significant sources of protein to the Indian population, are going through the roof. Tur/arhar (pigeon pea) prices in September-October hovered between Rs 132 per kg to Rs 200 per kg. In the last five years, retail tur prices were ruling in the range of Rs. 74-85 per kg.

Reasons for rise in prices:

Due to fall in domestic output by about 2 million tonnes (mt) to 17.20 mt in 2014-15 crop year owing to deficient monsoon and unseasonal rains.

Steps already taken:

The government has tried out various policy instruments-

Restrict/ban exports of these commodities and open up imports at zero duty.

Invoke the Essential Commodities Act (ECA) to impose stocking limits- forcing private trade to liquidate stocksimmediately.

Suspend/ ban forward and futures trading.

Increase in the MSP prices for pulses.

State owned MMTC has imported 5,000 tonnes of tur dal and floated revised tenders for import of 2,000tonnes of chicpeas and is planning to float fresh bid for overseas purchase of tur dal to boost supply andmake them available to states at subsidized prices.

Way Forward:

Changes in Trade Policy- To incentivize the peasantry to produce more pulses abolish all export controls onpulses.

Better Management of Supply Gap to fight price volatility- Abolish stock limits under the ECA. It willencourage and incentivize the farmers to store not sell off immediately. It will help in building the buffer stock and most importantly the benefits of this buffer stock will go to farmers not to the hoarders which willencourage farmers to grow more pulses.

Procurement by Government- There is a procurement arrangement for wheat and rice and not for pulses andoilseeds. On similar lines, to increase domestic output, government should also put in place a propermechanism to procure.

Subsidies - Much of the subsidies on fertilisers, power, and irrigation go to sugarcane, wheat and rice. Thesesubsidies amount to more than Rs 10,000/ hectare.

Create a buffer stock- Given that domestic consumption of pulses is around 23 million tonnes, buffer stock ofaround two to three million is the minimum that is needed to release it whenever pulse prices and hencestabilise prices spike

The role of commodity exchanges- A robust commodity exchange should facilitate price discovery and spotprices/ premiums should be reflective of future volatilities. With regulations through the SEBI, the exchangecan act as a messenger of short- to medium-run future prices.

Innovative solutions- soya flour, along with rice, wheat and other pulse flours, can be re-constituted intopulses. We are surplus in soya, and soya flour has a very high protein content — more than 40 per centcompared to 20-25 per cent for most other pulses. Technology to do this exists and can be tailored to Indiantastes.

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