Current Affairs for IAS Exams - 28 MARCH 2019

Current Affairs for IAS Exams - 28 MARCH 2019

::NATIONAL::

ILO report says Indian businesses looking for new skills

•  Fast-changing job requirements are leading to a yawning skills gap in many parts of the world, with India being one of the hardest-hit, according to a new study released by the International Labour Organisation in collaboration with the International Organisation of Employers on Wednesday.
•  According to the report, 66% of Indian businesses say they are looking for quite different skills in new recruits than they were three years ago, with 53% saying it is becoming harder to recruit people with the needed skills. Globally, 60% of employers say new graduates are not adequately prepared for current work.
•  India is one of the countries where these challenges are most acute. Of the nations covered in the survey, only South Africa and Morocco had a higher percentage of businesses than India which say they are looking for different skills in new hires than they were just three years ago.
•  Most businesses seem to blame this situation on education systems which are “poorly equipped to adapt to changes in the workplace, whether due to inaction in policy, a lack of funding, lack of coordination with the private sector or other factors.”
•  About 78% executives say that updating education curriculum to match the economy’s needs would provide them with the skilled employees they need, and 72% want businesses to play a more active role in influencing such curriculum.
•  Informal jobs, typified by low productivity, face the largest threats due to this trend. In developing countries, job loss due to automation may also happen indirectly, says the report.

EC says government can withhold record of donations

•  In its affidavit submitted in the Supreme Court, the Election Commission of India pointed to the amendments made to key laws, with dangerous consequences. The Finance Act of 2017 amends various laws, including the Representation of the People (RP) Act of 1951, the Income Tax Act and the Companies Act. The Finance Act of 2016 makes changes in the Foreign Contribution (Regulation) Act of 2010.
•  The amendment to the RP Act allows political parties to skip recording donations received by them through electoral bonds in their contribution reports to the ECI. “This is a retrograde step as far as transparency of donations is concerned,” the ECI said. The poll commission has no way to ascertain whether the donations were received legally by the political party from government companies or foreign sources.
•  On the other hand, a government affidavit on March 14, 2019 in the apex court claimed that electoral bonds were introduced to promote transparency in political funding and donations. The government had described the electoral bonds scheme, introduced on January 2 last year, as an “electoral reform” in a country moving towards a “cashless-digital economy”.
•  The ECI said the amendment introduced by the government in the Income Tax Act allows anonymous donations. Donors to political parties need not provide their names, address or PAN if they have contributed less than Rs. 20,000. Now, “many political parties have been reporting a major portion of the donations received as being less than the prescribed limit of Rs. 20,000.” the ECI affidavit told the Supreme Court.
•  The ECI extends its critique to the Finance Act of 2016, highlighting how it had amended the FCRA 2010 to “allow donations to be received from foreign companies having majority stake in Indian companies.”

::ECONOMY::

India-U.S signs agreement on exchange of Cbc reports

•  India and the U.S. signed an inter-government agreement for the automatic exchange of country-by-country (CbC) reports, which will reduce the compliance burden for Indian subsidiary companies of U.S. parent companies. This is a key step in making India compliant with the Base Erosion and Profit Shifting (BEPS) project, of which it is an active participant.
•  The Base Erosion and Profit Shifting (BEPS) Action Plan adopted by the Organisation for Economic Co-operation and Development (OECD) and G20 countries in 2013 recognised that the way forward to mitigate risk from base erosion and profit shifting was to enhance transparency.
•  MNEs are also required to identify each entity within the group doing business in a particular tax jurisdiction, and to provide information about the business activities each entity conducts.
•  This information is to be made available to the tax authorities in all jurisdictions in which the MNE operates. This was seen as placing a huge compliance burden on the subsidiary companies of these MNEs.
•  Base erosion and profit shifting refers to the activities of multinational corporations to shift their profits from high tax jurisdictions to lower tax jurisdiction, thereby eroding the tax base of the high tax jurisdictions and depriving them of tax revenue.
•  In order to combat this, many countries entered into agreements to share tax information with each other to enhance transparency and make such profit shifting that much harder.

Centre’s ordinance on Ponzi schemes exempts Gold schemes

•  The Centre’s recent ordinance banning unregulated monthly deposit schemes will not affect the ongoing monthly schemes operated by jewellery and chit fund firms, said tax practitioners.
•  Called the ‘Banning of Unregulated Deposit Scheme Ordinance’, it was promulgated by President Ram NathKovind during the last week of February 2019 to save gullible investors from losing money to Ponzi and fake deposit schemes. The ordinance makes such unregulated deposit schemes punishable, among other things.
•  “This ordinance is meant to take on fraudulent individuals and unregistered partnership firms from accepting deposits or services from gullible investors either in the form of advance or loan with or without interest. This would also include monthly chits and Diwali gift schemes among others. It is better to avoid any firm that is unregistered,” said R. Sapthagiri, a tax practitioner.
•  The consumption of gold by buyers in Tamil Nadu accounts for 400 tonnes, of which monthly schemes account for 140 kg, which translates to Rs. 4,600 crore. If these schemes are discontinued, then household savings would be diverted to buy luxury items, which would be of no long-term value to investors, argued JayantilalChallani, president, The Madras Jewellers and Diamond Merchants’ Association.
•  “It is a well-planned purchase scheme in which our customers pay money in instalments and collect gold or silverware at the end of 11th month. It is not a monthly deposit and we don’t have any hassles in continuing it,” said UdayVummidi, vice president, Chennai Jewellers Association.
•  The ordinance states that those who solicit deposits for an unregulated scheme can face jail time of 1-5 years and a fine of Rs. 2-10 lakh; 2-7 years with a fine of Rs. 3-10 lakh; 3-10 years and a fine of not less than Rs. 5 lakh and that could extend to twice the amount of deposits collected.

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::INTERNATIONAL::

Thai anti military parties confident in forming government

•  In Thailand, seven political parties, led by one ousted from power in a military coup, said that they believed they won enough seats in the recent general elections to form the next government.
•  The announcement came amid concerns about potential irregularities in Sunday's vote. The vote was the first since a 2014 coup. Official results are due in May.
•  The leader of the Pheu Thai party, which headed the last elected government, and the leaders of five other parties, believed they had won more than 250 seats in the 500-seat lower house.
•  The Election Commission, appointed by the ruling junta's hand-picked legislature, delayed the release of a full preliminary vote count twice before. It has now said it will release its final preliminary results on Friday.
•  The incomplete results reported so far show Pheu Thai won the most seats, while the military-backed PalangPracharath party appeared to have received the most votes. Both have said those results mean they have a mandate to form the next government.
•  Even if the Pheu Thai-led coalition comes together and it secures more than 250 lower house seats, it may not get to form the government due to the country's new political system.

Saudi Arabia expresses displeasure over U.S recognition of Golan Heights

•  Saudi Arabia denounced U.S. President Donald Trump's recognition of Israel's 1981 annexation of the Golan Heights, a statement released by the Saudi Press Agency said early on Tuesday.
•  “Attempts to impose fait accompli do not change the facts,” the statement said. It said the Golan Heights was an “occupied Syrian Arab land in accordance with the relevant international resolutions”.
•  “It will have significant negative effects on the peace process in the Middle East and the security and stability of the region,” it said.
•  Mr. Trump, with visiting Israeli Prime Minister Benjamin Netanyahu looking over his shoulder during a visit to Washington, signed a proclamation on Monday officially granting U.S. recognition of the Golan Heights as Israeli territory.
•  Israel seized the Golan Heights from Syria in the 1967 Middle East War and annexed it in 1981 in a move not recognised internationally.
•  The Saudi Press Agency report described Monday's declaration as a clear violation of the United Nations Charter and of international law.

::SCIENCE & TECHNOLOGY::

India test fires anti satellite missile

•  Defence Research and Development Organisation, DRDO, on Wednesday successfully conducted an Anti-Satellite (A-SAT) missile test, under Mission Shakti from Dr A P J Abdul Kalam Island in Odisha.
•  A DRDO-developed Ballistic Missile, Defence Interceptor Missile successfully engaged an Indian orbiting target satellite in Low Earth Orbit (LEO) in a Hit to Kill mode.
•  An official release said, the interceptor missile was a three-stage missile with two solid rocket boosters. Tracking data from range sensors has confirmed that the mission met all its objectives.
•  In his address to the nation, Prime Minister NarendraModi announced that India has demonstrated anti-satellite missile capability by shooting down a live satellite on a Low Earth Orbit.
•  Mr Modi said, an Anti-Satellite Missile (A-SAT) destroyed the live satellite within three minutes. He said, with this, India has registered herself as a space power and till now only the US, Russia and China have achieved this.
•  Congratulating all DRDO scientists for achieving this unparallel feat, Mr Modi said, today's Mission Shakti is aimed at strengthening India's overall security.
•  He assured the international community that India's capability will not be used against anyone but is purely a defence initiative for its security.
•  Speaking to the scientists via video conference, the Prime Minister said, the entire nation is proud of them for achieving the feat.

::SPORTS::

Paris Olympics in 2024 may see new Sporting events

•  The Executive Board of the International Olympic Committee (IOC) has recommended adding breakdancing, skateboarding, sport climbing and surfing to the 2024 Paris Olympic Games when the full membership meets in June.
•  IOC President Thomas Bach said at a news conference in Switzerland that making the Olympics more affordable and responsive has been a key aim for the committee.
•  He said, the addition of these four sports to the Paris medal program offer the opportunity to connect with the young generation.
•  All four sports will be assessed in terms of how they are managed, the integrity of competitions and judging, before being finalized for Paris.

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