Current Affairs for IAS Exams - 17 July 2014

Bank in Shanghai, but presidency for India

BRICS countries ironed out their differences over the announcement of the BRICS bank and the contingent reserve fund. The two economic initiatives are the major announcements of the Fortaleza declaration.
Shanghai won out as the location for the headquarters for the BRICS bank with equal shareholding for all BRICS members. India would assume the first presidency of the bank, which would be named, as per the Indian suggestion, the “New Development Bank”.
The NDB, to be headquartered in Shanghai, will have an initial authorised capital of $100 billion and an initial subscribed capital of $50 billion equally shared by the five member countries.
What has clouded the bank’s future in recent months is the unexpected move by China to push forward the setting up of another financial institution — the Asia Infrastructure Investment Bank (AIIB).
The AIIB is expected to focus on China and Southeast Asia, while the BRICS bank effort which would emphasise projects in the member countries and in Africa.
The AIIB move is being seen as an effort by China to challenge the influence of Japan in the region, as seen in Japanese influence in the functioning of the Asian Development Bank.
Prime Minister Narendra Modi also said that The U.N. Security Council and the IMF are in need of “urgent reform”.
He also pitched for a common outlook on global crises such as the conflict in Israel, Syria and Iraq, and called for BRICS countries to help “Afghanistan fight the forces of terrorism.” He said that cyber security was a priority for BRICS countries, and called for a united stand on “zero terrorism”.
Mr. Modi invoked mantra of “Vasudaiv kutumbakam” (the global family), and called for more “people to people” ties within the BRICS countries, including a BRICS university, more travel, scientific exchanges and sharing of healthcare facilities.

Centre seeks to allay fears of civil services aspirants

The Union government on Wednesday said that it was working to address the concerns of those aspiring for a career in the civil services and had sought a report that would be used to draw a road map for the future with respect to the recruitment examination conducted by the Union Public Service Commission.
Union Minister of State in the Prime Minister’s Office said the government had asked a three-member committee set up in March to expedite submission of the report.
On Tuesday, the Centre urged the commission to consider postponing the Civil Services Aptitude Test (CSAT), part of the preliminary examination scheduled for August 24, until “clarity” emerged on the syllabus and its pattern.

For IAF, Rafale makes the grade

Despite an aggressive counter campaign by the British and Americans, the Indian side is firm about wrapping up the Rafale deal.
The Rafale has made the grade because it is a safer twin-engine aircraft, which the IAF wants to fly for the next 40 years.
The French have modified the Rafale for atomic weapon delivery, which opens up the possibility of its role in imparting “second strike” capability, which is central for validating India’s posture of credible nuclear deterrence.
Presently Russia's Su-30 MKI forming the core of the IAF’s strike force, supplemented by the air superiority Mirage-2000 jets and the Jaguar bombers.
Russia is fast losing its dominance in Indian skies as the Indian Air Force, instead of another batch of IL-78 air-to-air refuellers, which are central for extending the strike range of fighter aircraft, the IAF has declared its preference for the French A330 MRTT refuelling planes.
Anticipating a loss of turf, the Russians are, nevertheless showing signs of mounting a riposte by developing weapons in partnership with Indian companies, taking advantage of the 49 per cent stake that foreign companies are now allowed in Indian defence industry.

NCW backs amendments to Juvenile Justice Act

National Commission for Women (NCW) chairperson Mamta Sharma on Wednesday said the Commission would back amendments to the Juvenile Justice Act to ensure proper punishment in rape cases.
Ms Sharma reiterated that times were changing and keeping in mind that 45 per cent of the registered rape cases were perpetrated by juveniles, amendments were necessary in the law.
Union Minister for Women and Child Development said juveniles committing rape should be tried as adults, the National Commission of Protection of Child Rights (NCPCR) and child rights groups had opposed it.
Uttar Pradesh reported the highest number cases against women at 8252, with Delhi coming second with 2000 cases and Haryana -864 cases.
She also called for a Code of Conduct for Parliamentarians.
The NCW is also short of funds and last year the annual budget was down to Rs nine crore, half of which goes for salaries.

India, Russia begin naval drills in Sea of Japan

Two countries fielded an impressive array of warships and aircraft during the Indra-14 exercise, will work together to check piracy, render assistance to ships in distress and counter the threat from submarines.
India and Russia have commenced naval manoeuvres in the Sea of Japan which coincide with their growing energy ties that could, in the future, include transit of oil through the Arctic route.
Russia’s guided missile cruiser Varyag and destroyer Bystry are participating in the exercise, in which the Navy is showcasing INS Shivalik, a modern stealth frigate, and INS Ranvijay, a Rajput class destroyer.

Syrian President Assad sworn in for third term

President Bashar Assad marked the start of his third seven-year term in office amid a bloody civil war that has ravaged the Arab country.
In the past year, Syria have seized the momentum in the civil war and troops made steady advances on several fronts against outgunned rebels bogged down in infighting.
Throughout the crisis, Mr. Assad has maintained that the conflict that has torn his nation apart was a Western-backed conspiracy executed by “terrorists” and not a popular revolt by people inspired by the Arab Spring uprisings, seeking democracy and disenchanted with his authoritarian rule.
Syria’s civil war, now in its fourth year, has killed more than 170,000 people and displaced one third of the country’s population.
Mr. Assad declared victory over “terrorism” and said countries that supported the Syrian opposition “will pay a high price”.

BRICS: Zero tolerance towards terrorism

BRICS summit has come out with a strong condemnation of terrorism in all its forms and manifestations and stressed that there can be no justification for any acts of terror based on ideological, political or religious issues.
17—page Fortaleza Declaration said “We call upon all entities to refrain from financing, encouraging, providing training for or otherwise supporting terrorist activities. We believe that the UN has a central role in coordinating international action against terrorism, which must be conducted in accordance with international law, including the UN charter, and with respect to human rights and fundamental freedoms”.
The declaration also said “We will continue to work together to conclude possible negotiations and to adopt in the UN general Assembly the Comprehensive Convention on International Terrorism. We also stress the need to promote cooperation among our countries in preventing terrorism, especially in the context of major events”.

Exports grow 10.2% in June

Exports grew at above 10 per cent year-on-year for the third month in a row in June, up 10.2 per cent to $26.5 billion.
Imports in June also grew for the first time in 13 months, up 8.3 per cent to $38.2 billion.
Monthly trade deficit rose marginally to $11.8 billion in June from $11.2 billion in May. The partial relaxation in gold import norms in May resulted in higher imports at $3.1 billion in June against the average of $1.5 billion during the past 12 months.
Export growth was the strongest in petro products at 38 per cent, followed by engineering goods that grew 22 per cent. Electronic goods exports shrank (-) 25 per cent and gems and jewellery exports contracted (-) 5 per cent in June.
Chemicals imports were up 19 per cent and petroleum imports 11 per cent. Imports of transport equipment shrank (-) 11 per cent, machinery (-) 3.4 per cent and pearls and stones (-) 2.2 per cent. The growth in oil imports is likely to have been led by the pace of recovery in industrial output seen in June.

China’s economy grows 7.5 per cent in Q2

China’s economy grew up by a more than expected 7.5 per cent in the second quarter of the year.
The economy is now on track to meet its annual 7.5 growth target, with first-half growth reaching 7.4 per cent — the same as in the first quarter, which marked the lowest in 18 months.
The government had in April, on the back of concern over growth in the first three months, unveiled stimulus measures such as reducing the reserve requirements for banks and directing local governments to speed up infrastructure projects.

Govt clears 19 FDI proposals

The government has cleared 19 foreign investment proposals, including that of Walt Disney Company and Reckitt Benckiser (India), entailing total investment of Rs. 2,326.72 crore.
The FIPB, however, rejected an investment proposal of Multi-Commodity Exchange of India (MCX), the FIPB also rejected foreign investment application of George Institute for Global Health (Hyderabad), BIESSE Manufacturing Company (Bangalore) and three others.
The government gave its nod to the proposal of Walt Disney Company (Southeast Asia) Pte Ltd, Singapore.