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(VIDEO) How safe are high rises? : Rajya Sabha TV Big Picture Debate

(VIDEO) How safe are high rises? : Rajya Sabha TV Big Picture Debate

Topic of Discussion: How safe are high rises? : Rajya Sabha TV Big Picture Debate

THE GIST of Editorial for UPSC Exams : 09 October 2018 (India’s S-400 balancing act)


India’s S-400 balancing act


Mains Paper: 3 | Internal Security 
Prelims level: S 400 
Mains level: While the India-Russia relationship is no longer what it was, the current transactionalism suits both countries for now

Introduction 

  • India last week saw the long-overdue materialization of the S-400 deal. Despite the threat of sanctions by the US under the Countering America’s Adversaries Through Sanctions Act (CAATSA), India is likely to get a waiver. 
  • This signifies how strategically important India is, for both Russia and the US.

Why the deal is so significant?

  • The deal is being projected in some quarters as India daring the US and displaying strategic autonomy. 
  • It even betrays a touch of the Cold War-style non-aligned movement (NAM) mindset. 
  • India needs the S-400 to plug the gaps in its air defence, especially against China.
  • India had been pursuing this deal since 2015, well before Donald Trump became the US president and CAATSA was legislated.
  • India has spent a lot of political capital to get a waiver. It was one of the main talking points during the 2+2 dialogue between India and the US. 
  • Both Secretary of State Mike Pompeo and Secretary of Defense James Mattis have supported waivers for India for its weapon deals with Russia. 
  • India enjoys bipartisan support in the US, the anger at Russia over its meddling in the US elections along with the domestic political partisanship could make it tricky for India. 

Russia has come out as the clear winner 

  • Despite India and Russia sharing a strong defence relationship, the ties between the two countries have been drifting as India slowly started becoming an important partner to the US. Sanctions could cool relations.
  • Russia is opposed to India’s policy in the Indo-Pacific. It does not want India to be a counterbalance against China.
  • Russia itself is dependent on China for arms and energy sales and investments, and disregards India’s concerns about its northern neighbour. 
  • Prime Minister Narendra Modi had an informal summit with Putin in Sochi before he delivered a tempered speech at the Shangri-La Dialogue on India’s policy in the Indo-Pacific. 
  • The ‘Quad’ grouping is focussed on China’s expansionism, it is possible that Russia conveyed to India its sensitivities in joining a US-led security grouping in the Indo-Pacific. 

Impacts on India U.S. relations 

  • The S-400 deal does, however, shows the gaps in Indo-US defence relations. 
  • Despite the close defence ties and the countries staging a large number of bilateral military exercises in recent years, shortcomings in defence trade remain. 
  • The Defence Framework and Defense Technology and Trade Initiative to pursue joint development and co-production of defence equipment has failed to address India’s needs. 
  • It has also failed to estimate what the US can deliver and how far India will go in trusting the US for critical weapons systems.
  • Indian decisionmakers still seem to be saddled with the legacy of the Cold War and non-alignment.
  • On the other hand, in comparison to Russia which has helped India with strategic technologies like leasing and developing nuclear-powered submarines.
  • The US is still not open to supplying India with advanced weapons platforms and military technologies.

Conclusion 

  • With the S-400, India has achieved what it wanted. But it underscores the transactional relations between India and Russia. 
  • Indo-Russian trade is largely defence driven, and India continues to be Russia’s biggest weapons buyer. 
  • India will keep Russia engaged with defence deals amid Russia’s growing relations with Pakistan.
  • Russia is no longer coy about selling weapons to Pakistan. 
  • There is a definite sense of realism in India, Russia and the US. Transactionalism is suiting both India and Russia. 
  • India gets the advanced weapons it needs and Russia charges top dollar for it. It does not give “friendship prices” to India anymore. 
  • Russia is not going to help India in its strategic competition with China, nor is it as committed as it once was to India in its case against Pakistan.
  • Indian interests will be served as long as Russia meets its strategic weapons needs and doesn’t make any moves that compromise India’s security. 
  • The US not reacting too sensitively to India’s weapons purchase will be pivotal for India-US economic and defence ties as well. 

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1)  Which of the following is true about "CAATSA (Countering America's Adversaries Through Sanctions Act)", recently in news ?
A.    The act is passed by USA for countries having significant defence relations with North Korea. 
B.    It would be tough for India to carry on defence deals with USA if the act is not diluted on case to case basis.
C.    Both 1 and 2
D.    Neither 1 nor 2
Answer:  B

UPSC Mains Questions:
Q.1) Why S 400 the deal is so significant for India Russia relations?

THE GIST of Editorial for UPSC Exams : 09 October 2018 (Hard justice)


Hard justice 


Mains Paper: 2 | Judiciary 
Prelims level: Not so important 
Mains level: With Brett Kavanaugh confirmed, Republicans enjoy great power to shape the U.S. agenda 

Introduction 

  • The U.S. Senate has confirmed the nomination of conservative-leaning judge Brett Kavanaugh, by a vote of 50-48, and he was sworn in as a ninth justice of the Supreme Court (SCOTUS).
  • The narrow victory of the second successful nominee of President Donald Trump to the highest court came after a furore involving allegations of sexual misconduct levelled by Christine Blasey Ford, a Professor of Psychology.
  • Under pressure after Ms. Ford came forward, the Republican majority on Capitol Hill agreed to an FBI inquiry into the allegations against Mr. Kavanaugh. 
  • While the FBI was limited to a tight deadline, given a predetermined list of persons it could interview, and constraints on the kind of evidence it could obtain, no conclusive evidence of wrongdoing emerged. 
  • Mr. Kavanaugh now takes the place of retired Justice Anthony Kennedy, a judge seen as a potential swing vote on contentious issues such as marriage equality. 
  • Chief Justice John Roberts is also considered by some to be a potential swing vote, as he was in the case that established the legality of former President Barack Obama’s Affordable Care Act.
  • This, is the critical question facing American jurisprudence.

Has the rightward tilt of the SCOTUS intensified with Mr. Kavanaugh’s confirmation? 

  • Liberal-progressive America may understandably fear that the country is on the brink of a new epoch of politics and social justice that could herald a rollback of hard-fought freedoms in areas such as women’s reproductive rights, voting rights, LGBTQ rights, rights of racial or ethnic minorities, immigration reform, and environmental controls. 
  • Mr. Kavanaugh’s past rulings on assault weapons bans, religious liberty rights and the constitutional rights of large financial corporations.
  • His rulings in future cases may well favour conservatives for example, by giving the Second Amendment on the right to bear arms more teeth, by potentially re-opening Roe v. Wade on abortion, or by allowing state-level challenges that go against the marriage equality tenet implied by Obergefell v. Hodges .

Way forward 

  • The U.S. President is immune to criminal prosecution, especially since Mr. Kavanaugh helped write the Ken Starr Report calling for the impeachment of President Bill Clinton. 
  • Would he still stand by sections of that report that argued in favour of an impeachment for lying? 
  • Taking a step back from the Kavanaugh nomination, it is evident that even if Democrats are in a strong position to win back the House of Representatives in the coming mid-term elections, control of the White House.
  • The Senate and SCOTUS gives the Republican Party a magnitude of control rarely seen in recent times, and with it the power to reinsert conservative values into the heart of American democracy.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Which of the following are the federal features of the Indian constitution ?
1. Written Constitution
2. Flexibility of the Constitution
3. Division of Powers
4. Integrated Judiciary
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 3 and 4 only
Answer:  A

UPSC Mains Questions:
Q.1) Has the rightward tilt of the SCOTUS intensified with Mr. Kavanaugh’s confirmation? 

THE GIST of Editorial for UPSC Exams : 09 October 2018 (Know thy judge)


Know thy judge


Mains Paper: 2 | Judiciary  
Prelims level: Constitutional Bodies  
Mains level: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.

Context 

  • We have what we call a “collegium” of the five senior-most judges of the Supreme Court considering names primarily from among chief justices of the high courts and occasionally from the bar for appointment to the Supreme Court.
  • The future chief justices of India will be chosen from a pool of judges in the high courts, who have today put in more than 14 years of service.
  • Those who have or have had a relative in the judiciary have a better chance of making it compared to others.
  • An aspiring law researcher with a little help from Google Analytics will be able to predict who will be the CJI of India in 2039.
  • Unlike in the US, where the collegial approach spans the whole nation and virtually the world, our collegial impulses are confined to five learned men.

Why is it so important for you to know your judges before they are appointed?

  • Because they decide what you eat, what you can and cannot say, who you can have sex with and whether or not you can visit a temple.
  • That is not all. They decide matters of life and death, guilt and innocence, detention and freedom, bail or jail.
  • They decide who is a terrorist and who is not.
  • There is no aspect of our life which is not governed by the law and  judges are the ultimate interpreters of the law.
  • The process of confirmation of a judge in the US Senate is intended to check, publicly, the suitability of a nominee for appointment as a judge.

No such process occurs in India prior to the appointment of a judge.

  • If the government of the day were to nominate a judge for confirmation, we do know that they would choose a person who shared their political persuasion.
  • The problem in India is we are denied information relating to a proposed appointee and are often left with little more than rumours and suspicion about the antecedents of a judge.

Conclusion 

  • Today, we talk of our judges being “liberal” or “conservative”.
  • There is now even talk of judges being “urban Naxals”.
  • To avoid such post-appointment slander affecting the legitimacy of judges in these “divided times”, we need a new process of appointment of judges and new criteria for evaluation which will capture what we expect from them.
  • Pre-appointment background checks must include allegations of sexual harassment against them.
  • Such people are normally repeat offenders and a little investigation would show up their lack of character in dealing with women.
  • This would be the contribution of the Me Too movement to accountability in the judiciary.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) The Indian Supreme Court is different from the American Supreme Court in that it has
(a) advisory jurisdiction
(b) power of judicial review
(c) original jurisdiction
(d) None of the above
Answer:  A

UPSC Mains Questions:
Q.1) Why is it so important for you to know your judges before they are appointed?

(VIDEO) Climate Change Warning : Rajya Sabha TV Big Picture Debate

(VIDEO) Climate Change Warning : Rajya Sabha TV Big Picture Debate

Topic of Discussion: Climate Change Warning : Rajya Sabha TV Big Picture Debate

THE GIST of Editorial for UPSC Exams : 08 October 2018 (More global R&D is needed to tackle TB)


More global R&D is needed to tackle TB


Mains Paper: 2 | Health 
Prelims level: TB
Mains level: TB burden, the global progress against the disease has been slow

Introduction 

  • Tuberculosis (TB) has drawn unprecedented attention in recent times. 
  • To dealing with this global threat made the United Nations (UN) schedule its first-ever high-level meeting on TB in New York on 26 September. 
  • The meeting offered participating nations the potential to energize the discourse on TB and chart a roadmap for global action on TB.
  • One of the major discussion points focused on accelerating research and development (R&D) efforts to end TB. 

Important facts about TB 

  • This is particularly relevant for TB, a disease that continues to kill more than 1.3 million people globally every year. 
  • While some countries have reduced their TB burden, the overall global progress against the disease has been slow. 
  • The lack of advancement in TB R&D is one of the major reasons why the disease continues to thrive and exact a heavy toll on human life. 
  • The facts speak for themselves: until 2016, we used a century-old microscopy test that detects only 50% of cases and treated TB patients with long drug regimens that have severe side effects.
  • This gap in scientific progress has been a serious concern as there is now a consensus that to transform the TB elimination.
  • We need better diagnostics and drugs, and an effective vaccine. 

Steps need to be taken 

  • Research must be prioritized and countries need to increase their investments in TB R&D. 
  • India has established the India TB Research Consortium (ITRC).
  • ITRC has raised the profile of TB research, attracted investments in TB product development and conducted several validation studies on new TB tools. 
  • The Indian Council of Medical Research (ICMR) has also recently taken steps to initiate trials for two new TB vaccine candidates. 
  • India has made considerable progress in advancing TB research. 
  • Recognizing this, the ICMR, under which the ITRC was formed, was awarded the prestigious Stop TB Kochon Prize for 2017.

Efforts made by other countries 

  • The World Health Organization’s new guidelines on the treatment of multi-drug resistant (MDR) TB need to be adopted swiftly. 
  • These guidelines, which recommend the use of Bedaquiline as a frontline medicine to treat MDR TB.
  • It will revolutionize TB treatment by minimizing the use of painful injectable drugs that are known to cause serious side effects. 
  • We also need to focus more research efforts on developing biomarkers to determine those who are predisposed to develop active TB among the close contacts of TB patients so that efficient preventive therapy can be provided.
  • Shorter and more efficient anti-TB regimens need to be developed to improve the adherence to treatment and decrease the failure and relapse rates.
  • Research for the prevention of transmission of drug sensitive and drug resistant tuberculosis in the healthcare setting is critical. 

Conclusion 

  • In the age of globalization, the containment of an infectious disease like TB within borders poses a considerable challenge, which is why eliminating the disease is a pressing global priority. 
  • The recently concluded meeting saw the endorsement of a political declaration that underscored the criticality of research in our common goal of eliminating TB. 
  • Hopefully, this will act as a starting point for countries’ efforts to advance future TB research.
  • Those efforts built on the foundations of a collaborative spirit and a willingness to share individual strengths.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) The 'Moscow Declaration' is related to:
(a) reduction in forced migration
(b) reduction in global pollution
(c) elimination of open defecation
(d) elimination of tuberculosis
Answer:  D

UPSC Mains Questions:
Q.1) What are the steps needed to tackle TB in R&D sector globally?

THE GIST of Editorial for UPSC Exams : 08 October 2018 (In Good Faith: Sarvodaya for polarised times)


In Good Faith: Sarvodaya for polarised times


In Good Faith: Sarvodaya for polarised times
Mains Paper: 1 | Society 
Prelims level: Sarvodaya
Mains level: Social empowerment, communalism, regionalism & secularism.

Context

  • In his 150th anniversary year, we ought to recall the words and actions of this great man who will remain an everlasting source of inspiration for the world.
  • Some sections at more unease than others because of their community identities and markers.
  • Today, when communal disharmony and enmities primarily between Hindus and Muslims.
  • It have reached an unprecedented height that we need leaders with a Gandhian moral urgency to address the situation.
  • For Gandhiji, India’s religious and linguistic diversity was an asset, not a liability.

Is this the India of Gandhiji’s dreams?

  • We need to recall how Gandhiji had to deal with the similar issues in his day  most prominently immediately, during and just after Partition.
  • His writings, speeches and actions did much to imbibe the moral ethos of a composite culture in the warring opposing communities.
  • He didn’t allow the majoritarian perception about Islam and Muslims to become a verity.
  • He proceeded to understand Islam and Muslims not through hearsay and tittle-tattle but his own reading of the Quran, the Prophet and Muslims he had lived and grown up with.
  • He approached it with objectivity and sobriety and found Islam essentially to be a religion of peace and the Prophet as a pure soul with pious purpose.
  • It was Gandhiji’s commitment to communal harmony that led him to engage with great freedom fighters like Maulana Mahmood Hasan and Maulana Husain Ahmed Madani.

Conclusion 

  • As a nation, we must assure that our minorities must feel at home.
  • Gandhiji’s ethical concepts and moral universe are capable of dealing with the violent sectarian politics that is being unleashed today.
  • This capital, the biggest Satan of our time, has already destroyed lives in many poorer nations.
  • It constantly puts up “enemies” as a trope to find new sources of profit.
  • Our fight must remain, under all circumstances, non-violent.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Vallabhai Patel participated in which of the following satyagrahas?
1. Kheda Satyagraha
2. Nagpur Flag Satyagraha
3. Borsad Punitive Tax Satyagraha

Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer:  D

UPSC Mains Questions:
Q.1) Is this the India of Gandhiji’s dreams?

THE GIST of Editorial for UPSC Exams : 08 October 2018 (Censorship undermines democracy)


Censorship undermines democracy 


Mains Paper: 2 | Polity 
Prelims level: Desher Katha
Mains level: The cancellation of Registration Certificate issued to Daily Desher Katha could have a chilling effect 

Context

  • It was a passionate plea to Parliament in England to reject censorship. Milton wrote: “As good almost kill a man as kill a good Book; who kills a man kills a reasonable creature, Gods image; but he who destoryes a good Booke, kills reason it selfe, kills the Image of God, as it were in the eye.”
  • How does one look at the Registrar of Newspapers for India (RNI),
  • The newspaper-licensing authority under the Government of India, invalidating the ‘Certificate of Registration’ awarded to the Daily Desher Katha that it had issued the same day?
  • The Daily Desher Katha — the party organ of the Communist Party of India (Marxist) and the second largest circulated daily in Tripura.
  • It was off the stands when the RNI withdrew its registration late night on October 1 based on inputs from the State administration.
  • The RNI order, signed by Additional Press Registrar K. Satish Nambudiripad, said the certificate was withdrawn after the Sub-Divisional Magistrate of Sadar West, Tripura., cancelled 
  • The “authentication as recorded by him over the declaration made in Form 1.”

Change in ownership

  • This was based on a complaint by one Shyamal Debnath, to District Magistrate Sandeep Mahatme. His contention was that the daily had changed its ownership without informing the RNI. 
  • The print-line of the paper read that Samir Paul is the editor, printer and publisher and that the Daily Desher Katha Trust was the owner. 
  • However, according to the RNI website, Gautam Das is the editor, printer and publisher, and the CPI(M) Tripura State Committee the owner.
  • According to the CPI(M), this was not the paper’s fault, as all necessary documents have been provided for every change in the management and editorship of Daily Desher Katha . 
  • When the paper came into existence on August 15, 1979, the year after the CPI(M) came to power in the State, it was owned by the Tripura State Committee of the CPI(M), and Gautam Das was the founder editor and publisher and printer of the daily. 
  • In 2012, the party decided that the management of the newspaper should be handled by a ‘society’, and accordingly the Daily Desher Katha Society was formed. In 2015, with Gautam Das getting more preoccupied with party work, the Society decided that it would appoint a new editor, publisher and printer Samir Paul. 
  • In September this year, the Daily Desher Katha Society decided to convert the ownership into a ‘Trust’, and the Daily Desher Katha Trust came into being, with Gautam Das as chairman of the trust.

Way forward 

  • The Editors Guild of India has condemned the decision. 
  • It said: “The Guild is of the view that cancellation of the registration of a publication on the mere finding that there was a mismatch between the information of the editor, printer and publisher is not only a gross overreaction but also a draconian step that throttles freedom of the media.
  • It has demanded immediate revocation of the RNI order pending further inquiry into the charges of misinformation. 
  • It also demands that a thorough inquiry is instituted by the government to investigate whether the decision was politically motivated.
  • The courts may intervene and restore the newspaper in the days to come. The issue here is not about the final outcome of the legal battle. 
  • The chill factor the ruling party can create among news organisations. It is worth remembering Milton’s saying four centuries ago: “Give me the liberty to know, to utter, and to argue freely according to conscience, above all liberties.”

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Consider the following statements regarding about Daily Desher Katha:
1.    It is a Bengali daily newspaper published from Agartala.
2.     Desher Katha was founded in 1979.
3.    It owners are CPIM Tripura State Committee. 
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer:  D

UPSC Mains Questions:
Q.1) The recent fake news spread massive on Indian democracy. In this context explain role of media in democracy.  

(VIDEO) One World, One Sun, One Grid : Rajya Sabha TV Big Picture Debate

(VIDEO) One World, One Sun, One Grid : Rajya Sabha TV Big Picture Debate

Topic of Discussion: One World, One Sun, One Grid : Rajya Sabha TV Big Picture Debate

Public Administration Mains 2017 : Solved Paper Question Paper-1 (Question-7)

Public Administration Mains 2017 : Solved Paper Question Paper-1 (Question-7)

(Section B)

Q7(a) “The Riggsian models of Fused –Prismatic-Diffracted Societies and their administrative systems have been inspired by Max Weber’s typology of Traditional Charismatic Legal-Rational Authorities .” Analyze( 20 marks) (Comparative Public Administration)

ANSWER:  Fred Riggs developed the “Fused-Prismatic-Diffracted” model to explain the differences between underdeveloped-developing-developed societies and their corresponding stage of development vis-a-vis their administrative structure and ethos. His ecological approach emphasizes the interaction between institutions and their contextual factors such as social structure, tradition and culture. This classification was inspired by the Max Weber’s typology of Traditional Charismatic Legal-Rational Authorities.

Charismatic: By virtue of possession of charisma or an exceptional quality, a hero or a leader casts a spell over his followers, who accept his domination because of their faith in the person.

Traditional: The legitimation in this form comes from the belief in the goodness of the past, in the appropriateness of traditional ways of doing things.

Legal: Legitimation of legal type of domination is based on the belief in the rightness of law.

Riggs introduced a new model for studying the bureaucracy in the Third World transitional, developing countries and argued that the Weberian model is not suitable for studying the administration in such countries. The Riggsian model called the “sala--prismatic” model of bureaucracy recognizes both administrative rationality and non-administrative considerations. This model is typical for developing countries having factors such family, kinship and caste considerations, community feeling, nepotism, corruption, which play important role in administrative recruitment, administrative functions and decision-making. This model is, however, considered too broad, too over-generalized and abstract.

(b) “Bureaucracy has inbuilt limitations to act as the prime catalyst to multi-faceted development in a democratic country”. Analyze this statement with appropriate examples ( 15 marks) (Development Dynamics)

ANSWER:  The bureaucracy and Development have been famous and complex terms and growth of sound Bureaucracy has been considered unavoidable for development. With end of colonialism and imperialism, there has been a constant change in the priority areas of government. Though the developing countries rely upon bureaucracy for their developmental requirements, the bureaucrats themselves owe their way of functioning to the imperialist requirements where people were subjugated to serve the interests of government in power.

After the countries gained independence, under planning raj, the attitude of those who were required to act as change agents did not change in a similar manner. This resulted in a slow pace of development. The reasons for such sub-optimal performance of bureaucrats are manifold like power-conflicts within as well as outside the bureaucratic arena, bribery, corruption, and nepotism play a significant role in deterring the system to function well but any effort to curb the menace will not succeed unless the bureaucracy itself is receptive to proposed changes.

c) Can be say that statutory audit and social audit are two sides of the same coin? Or, are they separate coins with varying values?(15 marks) (Accountability and Control)

ANSWER: ONLY FOR PAID MEMBERS

THE GIST of Editorial for UPSC Exams : 06 October 2018 (RBI  showed  maturity in avoiding being swayed by forex markets)


RBI  showed  maturity in avoiding being swayed by forex markets


Mains Paper: 3 | Economy
Prelims level: Liquidity in Banks 
Mains level: RBI to providing liquidity is welcome steps for the short end of the yield curve

Introduction 

  • The Reserve Bank of India’s (RBI) monetary policy committee (MPC) met at an interesting time for the markets and the economy. In recent weeks,
  • The financial markets have been facing continued rupee depreciation, high oil prices, falling equity markets and tight conditions in the money and bond markets. 

How to counter inflation?

  • The RBI should take its primary direction from the expected trend of inflation, and since it expects inflation to rise over the next few quarters, one would expect hawkishness.
  • The MPC did raise rates by a cumulative 50 basis points while maintaining a “neutral” stance of policy. 
  • The policy stance was changed to “calibrated tightening” though the benchmark repo rate was left unchanged. 
  • Why would RBI at once sound more hawkish while surprising dovishly with a rate pause?
  • The RBI has marginally softened its inflation forecast. 
  • The previous forecast of inflation at 5% by June next year, the central bank now expects inflation at 4.8%. A softer trajectory of food inflation appears to be the key change. 
  • The higher announced minimum support prices for crops, it appears that food prices have not risen as much as previously feared. 
  • In both rural and organized sectors, wage growth has remained contained. As a result household inflation expectations have moderated.

What are the trends going on the financial markets? 

  • Normally, a depreciating currency is seen as expansionary as it tends to encourage export demand. 
  • It makes weaker global trade and flows that is driving currency weakness, that is, the currency depreciation is having a contractionary effect. 
  • The fall in reserves this year has also led to monetary tightening. Rising oil prices have also counteracted any improvement in exports.
  • The net impact of global factors has been more towards contraction than expansion.
  • The bond yields have been rising in recent months. 
  • Since April, the three-year AAA corporate bond yield has risen by nearly 1.5 percentage points and is close to 9%. 
  • This is much higher than what is suggested by the 50 basis points increase in the repo rate in the same period. 
  • Money market conditions further tightened in September after the defaults by various IL&FS group entities, leading to rising rates and reduced availability of funding.

Should RBI have hiked rates to support the currency? 

  • If rates were so important to the exchange rate, the strongest currency in the world should be the Argentinean Peso, where the benchmark interest rate is 60%. 
  • Rupee is the weakest currency in the world this year. 
  • RBI also tried and failed at an interest rate defence of the currency in 2013, which would surely be in its institutional memory. 
  • The MPC should react to currency to the extent that it affects inflation and it has shown great maturity in avoiding being swayed by the forex markets in its policy decision.
  • For bond markets the policy provides a welcome respite. 
  • The 10-year benchmark yield has dropped by about 7 bps on the day, while the money markets have seen yields soften as much as 30 bps. 
  • Both the rate pause and the commitment of RBI to providing liquidity are welcome steps for the short end of the yield curve. 
  • This part of the curve is also less sensitive to global and fiscal factor and investors should remain focused here.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) With reference to Global Foreign Exchange Committee, consider the following statements:
1. It is a forum of central bankers and experts working towards promotion of a robust and transparent forex market.
2. It has been established under the aegis of World Economic Forum.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:  A

UPSC Mains Questions:
Q.1) Should RBI have hiked rates to support the currency? Give your arguments in brief. 

THE GIST of Editorial for UPSC Exams : 06 October 2018 (Scalding oil, sliding rupee)


Scalding oil, sliding rupee


Mains Paper: 3 | Economy
Prelims level: current-account deficit 
Mains level: Improvement in CAD

Introduction 

  • Except for the US, most economies of the world are in crisis mode.
  • We live in a highly globalised and an instantaneous transmission world.
  • We live in a world where politics and economics inter-mingle and each component accuses the other for causing a mishap, or a crisis.

Important highlights about the CAD crisis 

  • Today, the crisis in question is a rupee current-account deficit (CAD) crisis.
  • An improvement in CAD can either occur through an improvement in exports or a reduction in imports.
  • Exports is money coming in, and that is “good”. Import is money going out, and that is “bad”.
  • Exchange rate is a price — a cheaper rupee helps exports, and hurts imports.
  • A cheaper currency, especially a fast depreciating one, hurts confidence, sentiment, and investment flows (both domestic and international) and is not much of a good.
  • This is all basic macro, and well known.
  • Good policy is the art of balancing the various currents to achieve a harmonious balance.
  • Economists and analysts are also human. They make genuine and honest mistakes.
  • As humans, they also possess ideologies and are prisoners of their “political” outlook.

Examine some recent policy measures in India

  • Emerging economies, especially fast-growing ones like India, need capital inflows to finance their investments.
  • The CAD is also equal to the gap in savings and investment.
  • The “high” GDP growth over the years helps pay for the borrowing of savings from abroad.
  • We will look at measures from the angle of money in (good) and money out (bad).
  • This list of economic mishaps for 2018 starts with the imposition of a 20 per cent long-term capital gains tax in the 2018/19 Budget.
  • This increase was a reversal of longstanding 14-year policy.
  • As is obvious, if you do not have capital gains, you will not obtain capital gains tax revenue.
  • For the present fiscal year, capital gains have been zilch.
  • In late August, the Ministry of Finance (MoF) announced measures to arrest import growth.
  • The 19 items for which import duties were hiked included items such as air conditioners, refrigerators and washing machines and the total value of these imports in 2017/18 was about Rs 86,000 crore.

Effects on the price of oil

  • The international price of oil declined from $ 110 a barrel in May 2014 to an average of $50 to $60 in each of the last three fiscal years.
  • Despite large international price fluctuations, the government kept the domestic oil price broadly constant.
  • On a base of 100 in 2012, the CPI for petrol averaged the following in the last four years — 108 in 2014/15, and 99, 103, 108, and 119 in the present fiscal year (April through September).
  • So at the time of the election in May 2014, CPI for petrol was 115.
  • The CPI for petrol is estimated to have averaged 126 in September 2018 or a mere 10 per cent above the 2014 election price.
  • Oil price control, again:
  • On September 4, the government announced an excise tax reduction of Rs 1.5 per litre.
  • An additional Rs 1/litre reduction in the price of oil is to be contributed by oil companies.
  • This loss to the oil companies is expected to yield Rs 9,000 crore.
  • In less than 24 hours since the policy was announced, the market cap of oil companies was reduced by Rs 1.26 trillion.
  • It is sound fiscal fundamentals to keep the domestic oil price relatively constant amidst international turbulence.
  • The original sin was likely committed by the RBI in keeping real interest rates very high in 2017.
  • The GDP is estimated to be 2,900 billion in 2018. Each additional 1 per cent of CAD is $ 29 billion.

Where will this money come from?

  • Foreign inflows into the domestic debt market was $20 billion in 2017; this year the flow is a negative $7 billion.
  • Oil companies and other investors want predictable, reality-based policies, not inducements to volunteerism.
  • The Swiss-based Bank of International Settlements publishes, for more than 60 countries, a monthly estimate of the real exchange rate (REER).

Way forward 

  • In India, REER averaged around 92 in crisis year 2013 and exports (manufacturing and services) increased at a 6 per cent rate.
  • • In 2018 (to date) the REER has averaged 103 and exports have increased at a near 20 per cent rate.
  • Two simple facts emerge from these “simple” data.
  • REER levels do not seem to be associated with either exports or the desirability of exchange rate change.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Which one of the following is the largest contributor to India‟s current account deficit in 2017-18?
(a) Manufacturing trade deficit
(b) Gold imports
(c) Remittances deficit
(d) Oil imports
Answer:  D

UPSC Mains Questions:
Q.1) What are the Effects on the rising of oil price in Indian market? 

THE GIST of Editorial for UPSC Exams : 06 October 2018 (Going Green, Bottom Up)


Going Green, Bottom Up


Mains Paper: 3 | Environment 
Prelims level: Paris climate agreement  
Mains level: Climate Change effects 

Introduction 

  • Globally, climate change has started to take a heavy toll.
  • The California fires, the heat wave in Europe and Asia, and the droughts in East Africa bear testimony to this.
  • In India, severe floods and random variations in weather have caused significant loss of life and property.
  • There is a lot more awareness and intent on show with regular discussions and nations pledging to cut down on greenhouse gas emissions.

About the GCAS program 

  • The Global Climate Action Summit (GCAS) 2018, in San Francisco, was a crucial exercise in mobilising key stakeholders and urging them to go “further and faster”.
  • While the Paris Agreement laid down the marker, GCAS 2018 challenged us to “step up” a level higher.
  • It provided a perfect opportunity to review the progress achieved thus far, recognise the roadblocks and gear up for increased commitments.
  • Secondly, the summit was unique in that it secured participation of leaders from cities, states, environmentalists, corporates, investors and NGOs, that is “non-state actors”, on a mass scale, for the very first time.
  • An equally refreshing change was the focus on how climate change has impacted women and the steps needed for their empowerment.
  • Third, “Walk the talk” dominated the agenda with the summit showcasing real people and their achievements — people who have successfully implemented plans to reduce carbon footprint.
  • President Donald Trump’s sudden decision to withdraw from the Paris Agreement had created a lot of uncertainty, with the US being a major carbon emitter.
  • Last but not the least, GCAS 2018 also helped cement India’s credentials as a climate action leader.

Conclusion 

  • It showcased some great work happening in India, by both industries as well as local governments.
  • Innovations such as Heat Action Plans, energy conservation building codes, electric vehicles and solar pumps for farmers also bear testimony to India’s efforts to cut down carbon dioxide levels.
  • The movement against climate change is now clearly beyond individuals and countries.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

Prelims Questions: 

Q.1) Consider the following statements regarding CITES convention:
1.    It aims at in-situ conservation of wild animals and plants.
2.     It is legally binding on the parties to the Convention.
3.    It was recently adopted at the Paris climate conference.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer:  B

Mains Questions:
Q.1) What is the Paris climate change agreement? What are the aftermath effects after withdrawing agreement by U.S. President?

(VIDEO) India-Russia Eternal Friendship : Rajya Sabha TV Big Picture Debate

(VIDEO) India-Russia Eternal Friendship : Rajya Sabha TV Big Picture Debate

Topic of Discussion: India-Russia Eternal Friendship : Rajya Sabha TV Big Picture Debate

THE GIST of Editorial for UPSC Exams : 05 October 2018 (Next steps at Gir)


Next steps at Gir 


Mains Paper: 3 | Environment   
Prelims level: Asiatic lions
Mains level: A geographically separate population of Asiatic lions needs to be created 

Introduction 

  • The magnificent Asiatic lion is under threat. 
  • Twenty-three lions have died in as many days in the eastern part of Gujarat’s Gir sanctuary. 

What are the matters for concern?

  • While mass mortalities in wildlife are always a cause for concern, this case is even more worrisome as the big cat population in Gujarat is the last of the Asiatic lions in the wild.
  • In 2013, the Supreme Court had issued an order that lions from Gujarat be relocated to the Kuno sanctuary in Madhya Pradesh as a check against the threat of epidemic. But even wild animals are subject to State politics. Gujarat has been unwilling to part with its lions, calling them “its pride” in an affidavit.
  • The series of deaths, preliminary reports said that the cats have been killed by disease, most likely to be infectious. Some others have died due to poisoning and infighting. 
  • On October 3, the Supreme Court, noting that the death of so many lions was a serious matter, asked the Central government to look into it.

New-age conservation

  • The Supreme Court had said, “Asiatic lion, it has been noticed, has been restricted to only one single habitat, i.e. the Gir National Forest and its surrounding areas and an outbreak of possible epidemic or natural calamity might wipe off the entire species. 
  • A smaller population with limited genetic strength are more vulnerable to diseases and other catastrophes in comparison to large and widespread population.
  • The court also noted how 30% of the lion population in Tanzania’s Serengeti was killed due to an outbreak of canine distemper, a viral disease that affects animals. 
  • Gujarat’s response to this was that lions are now spread over the Greater Gir region and this reduces the threat.
  • It has also had an intense, managerial response to the disease when ill, lions are routinely picked up, medically treated, and then released.

Lessons from past events 

  • When wild animals go extinct locally, they are reintroduced as in the case of tigers in Sariska, Rajasthan. 
  • When hungry, they are fed artificially, and even provided salts as supplements, an example being the Hangul (Red deer) population in Dachigam, Jammu and Kashmir. 
  • In other parts of India, wild animals are funnelled through artificial trenches, barriers and fences. This is wildlife conservation in the age of man, where protected areas sometimes resemble zoos.
  • The most flexible of conservationists would agree that intensive artificial medical treatment of wild animals does not augur well for long-term sustainability. 
  • The role of wildlife managers should be to reduce unnatural threats, not unnaturally prolong life. 
  • Gujarat has done a good job of conserving its lions, it should also turn its attention to reducing the drivers of disease, which includes controlling feral dog populations.

What are the problems with metapopulations?

  • Gujarat submitted before the Supreme Court that one of the reasons it did not want to part with the lions was because there are metapopulations in the State. 
  • Metapopulations may be geographically separate but have interactions and an exchange of individuals. 
  • Gujarat had said to the Supreme Court, “Current Asiatic lion population is not a single population confined to one place.” 
  • It consists of “metapopulation spread over several locations within the Greater Gir Region”, adding that “good conservation practices and intensive wildlife healthcare, has lead to epidemic free regime”. 
  • These areas are connected to each other and this does not address the main concern of creating geographically distant populations.

Way forward 

  • Gujarat should work towards colonising new habitats outside the Gir landscape within the State. 
  • Wildlife conservation concerns itself with maintaining ecological processes and reducing threats to endangered species. 
  • It does not entail treating wild animals for disease (in the way domestic animals are) as this can go against the processes of natural selection.
  • Treating wild animals appears to be a caring thing to do. 
  • It is not conducive to the ‘natural’ process of life and death, and ultimately compromises immunity. 
  • There is no getting around the fact that a geographically separate population of Asiatic lions needs to be created. 
  • A good track record for lion conservation does not in any way preclude a good long-term strategy.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Share Share Asiatic lion is the state animal of which of the following states? 
A.    Rajasthan 
B.    Haryana 
C.    Punjab
D.    Gujarat
Answer:  D

UPSC Mains Questions:
Q.1) What are the steps needed to be taken to conserve Asiatic lions?
 

THE GIST of Editorial for UPSC Exams : 05 October 2018 (The morning after)


The morning after


The morning after
Mains Paper: 3 | Economics 
Prelims level: IL&FS board
Mains level: Government, and new IL&FS board, need to clean up the mess and fix accountability

Context 

  • The government stepped in and took control of the infrastructure conglomerate, Infrastructure Leasing & Financial Services or IL&FS, sacking the board and appointing a new one. 
  • The government in a company in the form of superseding its board in which it is not a direct stakeholder has been justified in the interests of financial stability and the adverse impact of the collapse of such an institution on the capital markets. 
  • The government officials and a regulatory chief will now have to finalise a restructuring plan or a roadmap for the debt laden group and ensure an orderly winding down.

Important highlight of the IL&FS balance sheet 

  • Parallels have been drawn between the government intervention in the case of IL&FS and that of Satyam Computer Services in 2009 after the promoter confessed to having fudged the accounts. 
  • The group’s liabilities top Rs 91,000 crore is much higher than the burden in Satyam’s case and spread over more than 160 group companies.
  • Globally, there have been models like this one where an institution acts as an infrastructure developer and as financier too, but it is fraught with risk given the high leverage. 
  • Those risks are amplified in India because of frequent policy changes and the constraints in pricing in the infrastructure sector and the failure to enforce contracts.

Way forward 

  • The government has also ordered a probe by the Serious Fraud Investigation Office. 
  • For the new board and government, the job should not end with a resolution plan. 
  • It should go hand in hand with a forensic audit and fixing of accountability.
  • Even as the government cleans up the mess, it will have to think hard on how it will fill the void in financing infrastructure.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1)  Who has been appointed by Union Government as the Chairman of newly constituted board of IL&FS?
A.    Shikha Sharma
B.    Ratan Tata
C.    Deepak Parikh
D.    Uday Kotak 
Answer:  D

UPSC Mains Questions:
Q.1) Government, and new IL&FS board, need to clean up the mess and fix accountability. 

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