Nov 4, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 53]

Click here to get all the Tests– Archives Q.1) Which of the following is/are not a BASIC countries? Indonesia Cambodia Bhutan South Africa Select the correct code: 1, 2 and 3 3 and 4 Only 4 All of the above Q.2) Consider the following statements about “Uniting for Consensus” (UfC) It was developed to oppose the expansion of permanent seats of UNSC Pakistan is one of the founding members of UfC Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements with respect to Schengen Area Iceland, Norway and Switzerland are members of the Schengen Area but not the European Union No territory outside European Continent is part of the Schengen Area as well as European Union Post Brexit United Kingdom is now out of the Schengen Area Even though the Schengen Agreement was signed in Luxembourg, it is not a member of the Schengen Area Which of the following statements is/are incorrect? 1, 2 and 4 2, 3 and 4 2 and 3 None of the Above Q.4) Sampriiti-7 is a joint military exercise between India, Bhutan and Bangladesh India and Bhutan India and Bangladesh Nepal, Bhutan and India Q.5) Consider the following attributes of Mangroves It is a glycophypte It has aerial roots Buffer zone between land and sea West Bengal has the highest mangrove cover in India Select the correct code 1,2 and 3 1,2 and 4 2,3 and 4 1,3 and 4 Download the Solution- Click here All the best IASbaba

Nov 3, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 3rd November, 2016

Archives   IASbaba’s Daily Current Affairs – 3rd November, 2016   SOCIAL ISSUE / WELFARE   TOPIC: General Studies 2 Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections Issues relating to development and management of Social Sector/Services relating to Human Resources       Miseries of a contract labour   What is Contract Labour? Contract labour generally refers to workers employed by or through an intermediary or a third party. Such labour can be distinguished from the permanent workers in following aspects Absence of employee-employer relationship Method of wage payment No direct relationship with the principal employer Absence of names on the muster roll of principal employer/ establishment According to Section 2(b) of the Contract Labour (Regulation and Abolition) Act, 1970 (‘Contract Labour Act’), a workman shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. Supreme Court Judgement In a significant judgment, the Supreme Court has ruled that contract workers should get the same pay as permanent workers because denial of the principle of equal pays for equal work: Led to exploitative enslavement, Is a violation of human dignity, and Is against the provision of Article 39(d) of the Indian Constitution. Contract workers suffer because: They lack job security and social security They are given inadequate remuneration for the work performed. Lack bargaining power   Trade Union  Trade unionism is a result of Industrial Revolution. Trade unions are an association of wage earners to ensure safeguarding the interests of workers and improving the working conditions. Various benefits that accrued due to the trade unions are as follows: Worker Empowerment Socialism and worker welfare Proper regulation of personnel matters Dispute settlement and grievance redressal Participative decision making and enhanced bargaining power However, the trade union movement in India suffers from a major problem. Contractual labour is neither given membership nor voting rights to which members of trade unions are eligible. This happens due to the following reasons: Greater Management Hostility: Workers believe that forming a union which includes contract workers is bound to provoke the management into greater hostility towards them. Management Attitude: Managements have usually been totally against discussing any issues concerning contract workers. Vulnerability of Contract Labour: Contractual workers are highly insecure and vulnerable compared to regular workers. The chances of their dismissal from the company for indulging in union activities are very high. Attitude of Permanent Workers: Permanent workers themselves don’t want to extend union membership to contract workers because at a workplace with high number of contract workers, permanent workers could get highly marginalised.   Contract Labour in India – Provisions and Challenges India’s contract workers, with the exception of some PSUs in select sectors such as steel and coal, remain both heavily exploited and largely un-unionised. Even though various legislations and provisions exist with respect to contractual labour, there is a need to ensure their effective enforcement along with additional labour reforms to ensure their welfare. Picture Credit: http://img.etimg.com/photo/53257736/1.jpg   Trade Union Act, 1926 Under Trade Unions Act, 1926 (‘Trade Union Act’), Section 2 (g) defines workmen as any person employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises and any workman who works in a factory can join a union of that factory. But trade unions typically have only permanent workers as members. The reason cited for this is the absence of direct relationship with the principle employer. Contract Labour (Regulation and Abolition) Act, 1970 Contract Labour Act was enacted to abolish contract labour. This Act on the other hand cemented their exploitation by offering a legal operating framework to labour contractors. Prior to this legislation, temporary and permanent workers could make claims on their employer and negotiate as members of the same union. But the Contract Labour Act, by introducing a distinction between an ‘employer’ and a ‘principal employer’, increased the scope of hiring contract labour. Hence, there is a proposal to drop the word ‘abolition’ from the name of the Act. When the Contract Labour Act was enacted it expressly prohibited the employment of contract labour for core production work. As a result, workers are shown to have been hired for non-core jobs such as cleaning or gardening. But once the worker is employed, he is engaged in production work and there is no documentation to show that a contract worker is actually in production.   Conclusion There is an urgent imperative to stop this growing exploitation of contractual labour. The sooner companies realise the larger implications of their short-sighted approach, the better, not only for their own sake, but also for society at large. Further, labour reforms to address the above concerns are also important for the success of Make in India and for India to climb up the rankings on World Bank’s Doing Business Report. Connecting the dots Discuss various provisions and reforms undertaken in India in recent for improvement in conditions and safeguarding the interest of industrial labour. India Inc. Is exhibiting short sightedness in dealing with contract labour. Highlight he problems faced by contractual labour. Also discuss, how the existing scenario can be improved for the betterment of both the contractual labour as well as the companies utilising their services.   ENVIRONMENT   TOPIC: General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment General Studies 2 Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   A domestic climate change strategy India recently ratified the Paris Agreement, assuring it a seat at the 55/55 table—ratification by at least 55 countries and accounting for at least 55% of global greenhouse gas (GHG) emissions was required for the agreement to come into force—where countries will negotiate the mechanisms and provisions under the agreement. India has demonstrated leadership in climate negotiations by ratifying the Paris agreement. However, while the ratification indicates intent to implement the agreement in its true spirit, it needs to address critical concerns such as Having a domestic implementation strategy Having sufficient consultations with state governments and others to take stock of climate preparedness. Having sufficient information about sub-national contexts, to keep in mind domestic concerns while negotiating. Like many countries, India has also built caveats in its ratification instrument, where it clearly mentions that climate action will be in the context of India’s developmental goals, existing national laws and available means of implementation. Such caveat is important as there is yet no clarity around the manner in which provisions of the agreement will take shape. Simultaneously, India has to also develop legislation and provisions required to implement the agreement domestically in the pre- 2020 scenario.   Involvement of the states The roles and responsibilities of the state government has to be realised as they are the ultimate implementing authorities of climate policies India’s Nationally Determined Contributions (NDC) goals include a 175GW renewable energy target, and an overall emissions-intensity reduction of 33-35% over 2005 levels. To implement this, the first step would be to allocate mitigation burden among states and also prioritize adaptation efforts. India has to pay detailed attention to key issues like a transparent GHG emissions accounting and monitoring, review and verification framework, and a detailed implementation plan. To ensure that India is on track, both national and state plans need to be reassessed and reviewed to build the necessary capabilities for states to implement climate plans in the context of developmental and NDC goals. Among the various state action plans submitted, Karnataka and Himachal Pradesh are the only two states with a detailed sector-wise GHG inventory. Most state action plans lack clearly defined targets and timelines. There needs to be a standard framework to assess the different priorities of states as different states have given varying importance to different sectors which is an indication of what they identify as vulnerable sectors, in both mitigation and adaptation efforts. Built up of state-level profiles of GHG emissions from different sectors can help inform about different focus areas for each state as the funds for climate action are limited and hence must be utilized in a cost-effective manner. Funding for the projects To implement NDCs, India would need $2.5 trillion up to 2030, for which external finance would be critical, in addition to its domestic budget allocations. In fiscal 2016-17, $1.27 billion was transferred to the National Clean Energy Fund (NCEF) through collection of coal cess. In that, $750 million allocated to renewable energy, $380 million to the ministry of water resources and $150 million to environment and forests. World Bank has committed to raise $1 billion in 2017 for promoting India’s solar mission. But India also must strategically seek other sources such as the Green Climate Fund and leverage the International Solar Alliance to meet NDC targets. The state capacities have to also meet the mitigation action and thus there is a need to work out inter-state financial and technology transfers to assist the socio-economically backward states.   Adapting to the changes India has to develop its adaptation capacity along with focusing on state roles and funding issues. Recent studies by the Council on Energy, Environment and Water (CEEW) estimate that India has already faced about Rs1 trillion worth of direct damage costs due to extreme climate events such as floods, cyclones and temperature changes, over the last five years. It is estimated that this may further rise to about $360 billion by 2030. In such scenario, securing the livelihoods of over a billion people and minimizing the risk towards development outcomes due to climate change becomes imperative. Conclusion India needs to establish a transparent regime with the cooperation of state governments with data being generated at the state level. India can extend Paris Agreement domestically by including ‘common but differentiated responsibilities’ at respective state-level capabilities to allocate mitigation targets and adaptation efforts on the principle of equity. Just like India continues to strengthen international cooperation, it should do it at the domestic level, with better centre-state and inter-state coordination to make the implementations of targets a reality. Connecting the dots: What is Paris agreement? How can India contribute towards mitigating climate change effects without compromising its development goals? Cooperative federalism should be the key behind implementing climate change policies in India. Evaluate.   MUST READ Crushed by the cane lobby Hindu   Centre moots registry to vet geospatial data Hindu   Misframing the issue Indian Express   Encounter vs rule of law Indian Express   Pakistan’s power struggle behind its aggression Livemint   The vulnerability of the Chinese Corridor Livemint   Folly of hiring technical contract staff Business Line   A win-win flight Business Line  

Nov 3, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 52]

Click here to get all the Tests– Archives Q.1) Consider the following statements about Yamuna river It is the longest and the second largest tributary river of the Ganga It flows through Uttarakhand, Himachal Pradesh and Uttar Pradesh Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Which of the following is not correctly matched? TATP – Europe and America RCEP – ASEAN FTTA – APEC NAFTA – Eurasian Union Q.3) Which of the following pairs is/correctly matched? Garba : Gujarat Mohiniyattam: Kerala Yakshagana: Karnataka Select the correct codes Only 1 2 and 3 1 and 3 All of the above  Q.4) 'Saur Sujala Yojana' is concerned with Solar powered irrigation pumps 24/7 electrified villages Solar farms in Chhattisgarh None of the above Q.5) Consider the following statements about ‘Fast Neutron Reactor’ It is a category of nuclear reactor in which the fission chain reaction is sustained by fast neutrons There is no need of a neutron moderator Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Download the Solution- Click here All the best IASbaba

Nov 2, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 2nd November, 2016

Archives   IASbaba’s Daily Current Affairs – 2nd November, 2016   HUMAN GEOGRAPHY   TOPIC: General Studies 1 Poverty and developmental issues, urbanization, their problems and their remedies   What is Urbanisation? The Census of India, 2011 defines urban settlement as, all the places which have municipality, corporation and cantonment board or notified town area committee. Additionally, all the other places which satisfy following criteria: A minimum population of 5000 persons ; At least 75 % of male main working population engaged in non-agricultural pursuits ; and A density of population of at least 400 persons per square kilometre Urbanisation in India India’s urban population increased from 217 million to 377 million, and this is expected to reach 600 million by 2031 — 40 per cent of the country’s population. After independence, urbanization in India is increasing at very high pace, but at the same time there are some problems, which are casting a shadow on the potential of urban areas for poverty alleviation and growth of the nation. Even though urban areas are referred to as “engines of economic growth” they are becoming barriers for balance, equitable and inclusive development. Features of Urbanisation in India Urbanisation in India has the following characteristics: Occurring on the fringe of cities, Occurring in an unplanned manner, Outside the purview of city codes and bylaws, Shortage of homes, Inadequate drinking water, sanitation and waste management facilities Imposing high costs, and Characterised by a gap in urban infrastructure investment in areas of road and traffic support   Urbanisation, Rural Transformation and Poverty Reduction With the increasing urbanisation and need for more urban investment, the question arises whether an increase in urban infrastructure investment would compromise on the rural investment. This is critical because rural transformation has a significant impact on the poverty and growth as well. International Monetary Fund (IMF) in it’s recent study has analysed the impact of urbanisation on rural poverty in two categories: Location: Under this criterion it concludes that rural poverty reduces due to change in residence. Economic Linkages: As per this criterion, rural poverty again reduces as a result of growth of urban population.   Urban population growth impacts poverty in nearby areas in the following manner: Consumption linkages, Rural non-agricultural employment, Remittances, Rural land/labour ratios, Rural land prices and consumer prices Urbanisation has lead to a reduction in poverty in surrounding rural areas by 13-25%. However, this has been much less than the impact of rural bank branch expansion. Hence, this points to certain flaws in the IMF report which examines the role of urbanisation in isolation of rural transformation. Rural transformation has a multiplier and a more significant effect on poverty reduction in the following ways: Agriculture modernisation: Development and growth in agriculture reduces rural poverty and overall poverty because the demand for chemical fertilisers, pesticides, mechanisation, processed seeds or fuels rises and this in turn promotes non-agricultural production. Increase in income: Higher incomes in rural areas promote demand for processed foods produced mainly in urban areas and generate employment. Price reduction: Decrease of food prices due to agricultural growth results in higher food security and poverty reduction in both rural and urban areas. Wage reduction: Decrease of food prices lowers the real product wage in the non-agricultural sector, raising profitability and investment in that sector. To ensure best results in terms of poverty reduction and growth, rural transformation can take place in ways mentioned below. These steps which will not only raise productivity and living standards but also curb rural-urban migration are: Access to new technology, Availability of credit on easy terms and markets, Strengthening of extension services, Creation of rural infrastructure, Skill development Creating more remunerative opportunities   Alternative Categorisation and Study A further categorical way of conducting such a study could be to examine overall growth and poverty effects of both agriculture and non-agriculture, taking into account the linkages between them. The non-agricultural sector includes both rural non-agricultural and urban activities, we disaggregate the rural areas into agriculture and non-agriculture sub-sectors, and the urban areas into small towns, secondary towns and metropolitan cities in order to compare their effects on poverty. With the shift of an economy from the low income to the middle income category, the nature of agriculture also shifts from subsistence farming to commercialized and market farming. It then develops a closer linkage with the non-agricultural sector. Impact of agricultural growth rate is twice as large as from non-agricultural growth and has a much bigger poverty-reducing effect than non-agricultural growth. As a result of studies it has also been found that the (proportionate) poverty reduction is largest for agriculture. Contrary to the World Bank’s conclusion, we found that agriculture’s contribution to poverty reduction is five times more than that of metropolitan cities.   Conclusion A definitive conclusion about public investment priorities will depend on the pattern of rural transformation and urbanisation but there is no doubt that rural areas deserve greater emphasis. If urban areas are the engines of growth, then rural areas are those compartments which if not on track could derail the entire growth and development process. Connecting the dots Rural growth and development have an equal role to play in the national growth and poverty alleviation. Discuss Define Urbanisation. Highlight the problems that have been a consequences of rapid urbanisation in India   NATIONAL   TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.   India’s competitiveness and challenges ahead The 2016-17 Global Competitiveness Report ranks India 39th among 138 nations This is a 16-place jump from year-ago levels. Thus, India’s progress on global competitiveness is impressive. The report assesses the competitiveness of a nation based on its macroeconomic environment, strategies employed to promote growth such as institutions and policies, and the ability of enterprises to create and sustain value. The nature of the economy and growth measures influence enterprise competency to compete and, in turn, enhance national productivity and prosperity. The economic development initiatives launched by NDA government seem to be paying off slowly. However, India remains a factor-driven economy characterised by an unskilled workforce, and heavy reliance on agriculture and extractive industries. Lack of complexity and technological sophistication in its economy limits its ability to offer high-value goods to global markets. In 2015, India exported $262 billion — compare with China’s $2.3 trillion — of which, over one half was commodities and low tech goods (mineral fuel, clothing) while just 15% was engineered goods (autos, appliances). Notably, India’s share in global merchandise trade has remained stagnant at 2% over the last five years compared to China’s, which has grown from 10 to 14%.   Manufacturing sector The new economic development initiatives hope to rectify the less contribution of merchandised trade through targeted programmes that would equip India for a stronger performance in global trade and competition. Among them is ‘Make in India’, a large-scale campaign to attract foreign direct investments to the manufacturing sector. These investments are designed to create jobs in massive numbers to absorb the country’s burgeoning workforce. More importantly, they are expected to move India up on the development ladder to the ‘efficiency-driven’ stage — demonstrated by high-volume diversified manufacturing and the ability to globally market a wide range of value-added consumer and industrial goods. In 2015, India emerged as the top destination for FDIs and there are indications that it will continue. However, only the manufacturing assets will not propel India to the forefront of global merchandise trade and competition. It will need a workforce that has complementary industrial skills. India’s workforce of 500 million is mostly unskilled —80% of the workforce has no marketable skills (government estimates). It was also revealed that less than 10 million are vocationally trained as against 150 million needed by 2022 to transition India as a leading manufacturer. Thus, undoubtedly, it is an uphill task for which India has formed a Skill Development Agency to spearhead implementation, jointly with the private sector. Challenges and way ahead Though there is progress towards the goal, but there is lukewarm enrolment in short-term vocational training and apprenticeship despite the existence of an incentive regime. The reason is that India has never been a blue-collar economy. Thus, the educational aspirations of Indians have historically been centred on academics and university education, driven by ambitions in the administrative and management cadres. And hence, by contrast, industrial training has generally been perceived as unglamorous, even undignified. Thus, the clear solution to this problem lies in educating India through information distribution and publicity that describes entry jobs in industry and pathways to functional and general management. The manufacturing assets and workforce skills will give India the foundation to compete globally on a wide range of products. However, to be distinguished as a leader, India must transform from low-skilled commoditised production to designing and marketing sophisticated, proprietary technologies. Thus, it has to emerge as an innovation-driven economy. For this, India would need highly talented science and engineering graduates and substantial investment in R&D. What is contrasting that India is self sufficient in the desired graduates but lacks in the required investments in R&D projects. To put into perspective, India’s R&D spending of $66 billion in 2015 (0.9% of GDP) is almost nothing in comparison to China’s $410 billion or 2.1% of GDP). And more troubling fact is that three-fourths of it comes from the public sector. The low private sector participation could be because of the relatively small size of most Indian firms and consequent lack of scale economies. This problem is self-solving as the private sector investments in R&D will rise when manufacturing investments will rise. Hence, India’s economy as globally competitive is still work in progress. Connecting the dots: Manufacturing sector is not growing at an expected rate despite the initiatives and reforms by government. What can be the reasons and how to rectify them? Explain. Increase in manufacturing is considered important for India to establish itself as globally competitive. However, the working population sees industrial employment as undignified and low-paid. How do you think can this situation be handled? Discuss.   MUST READ Winking at the States Hindu   Why diversity needs secularism Hindu   SC talks tough against fake encounters Hindu   Crime and punishment Indian Express   Educating the citizen     Indian Express   Religious freedom is not just for men Livemint

Nov 2, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 51]

Click here to get all the Tests– Archives Q.1) With reference to H1B visa and L1 visa consider the following statements L1 visa is a non-immigrant visa for short amount of time H1B visa allows Indian employers to temporarily employ foreign workers in speciality occupations Select the correct statements: Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Which of the following is/are correctly matched? Yamal Project :: Liquefied Natural Gas Project Alloy :: Merged Reality Project Tango :: 3D mapping technology Select the correct code: 1 and 2 2 and 3 1 and 3 All of the above Q.3) Surya Kiran is a Joint Exercise between India and Bhutan India and Myanmar India and Nepal India and Maldives Q.4) Consider the following statements with respect to Permanent Court of Arbitration (PCA) It is the primary judicial branch of the United Nations India is a party of the PCA according to the Hague Convention on 1899 Sessions of the PCA are held in private and are confidential Which of the following statements is are correct? Only 1 1 and 2 2 and 3 1 and 3 Q.5) Operation Sangaris is a military intervention of the French military in which of the following countries? Chad Central African Republic South Sudan Congo Download the Solution- Click here All the best IASbaba

Nov 1, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 1st November, 2016

Archives   IASbaba’s Daily Current Affairs – 1st November, 2016   ETHICS   TOPIC: General Studies 4 Corporate Governance and Ethical Governance   Corporate Governance: TATA SONS Issue   What is Corporate Governance?   Corporate governance is the system of rules, practices and processes by which a company is directed and controlled and involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. Corporate governance also provides the framework for attaining a company's objectives and hence encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. Various initiatives have been taken in the past by the Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) for corporate governance. As a result, SEBI came out with proposed changes, shown in the image below, to be made in the organisations to ensure effective corporate governance.   The recent spat between the TATA Sons and the ousted chairman Cyrus Mistry has once again brought the corporate governance compliances by various companies under the scanner. Unfortunately fingers pointing towards a reputed name such as  TATA Sons raises concerns about the level of compliances in smaller organisations with a lesser reputation. Ownership v/s Management - Challenges The main intent behind effective corporate governance is differentiation between the management and shareholders. This is done to allow autonomy to the management and prevent dominance by the owners. The Board of Directors are the direct stakeholders influencing corporate governance. Directors are elected by shareholders or appointed by other board members, and they represent shareholders of the company. The board is tasked with making important decisions, such as appointments, compensation and dividend policy. Boards are often comprised of inside and independent members. Insiders are major shareholders, founders and executives. Independent directors do not share the ties of the insiders, but they are chosen because of their experience managing or directing other large companies. Independents are considered helpful for governance, because they dilute the concentration of power and help align shareholder interest with those of the insiders. With respect to this the clear message out in open, as a result of the TATA Sons fiasco, is  that whoever controls the dominant shareholding is responsible for taking major decisions and has a strong influence on those decisions. Such shareholders act as alternative power centres without any accountability or formal responsibility. India is full of family-controlled companies with dominant shareholdings and hence it becomes really difficult to have a Board that can discipline the dominant shareholders from whom the Board derives all its powers. Power in a company depends upon the block of shares you control and hence the the concept of shareholder democracy seems fictitious. Additionally, the TATA sons issue also bring in the open the fact the the guidelines on corporate governance merely serve as a fig leaf to hide the brute reality of the exercise of power within companies. The compliance of these guidelines is not taken very seriously and manipulations are carried out. Practical adherence is way below the theoretical compliance as shown in audit reports etc to mislead the stakeholders. Window dressing is done and rosy pictures are drawn through reports and awards on corporate governance. However, the true picture is not so beautiful as it seems as witnessed in various recent cases such as the Satyam, Sahara and the Shardha scam. All these problems are not endemic to India alone and plague even the most advanced economies such as the US.  In recent instances banks in the US have rushed to pay huge fines to the authorities so that they could avoid prosecution.   Corporate Governance in India Steps have been taken by regulators over the years to address abuses of power. The standards of corporate governance need to be extremely high and the interests of minority investors need to be safeguarded in the best possible manner to attract investments from across the world and prevent any untimely flight of capital. Fortunately, the 2016 Ease of Doing Business report from the World Bank ranks India at No. 13 in the world on the ‘protecting minority investors’ yardstick, while we rank a lowly 130 on the overall index. The focus of the regulators on governance standards requires companies to make a concerted effort to ascertain compliance and presents an opportunity to align with the global standards and deliver incremental gains for their stakeholders. These efforts have been going on since about two decades as represented below: Connecting the dots : Explain with examples how poor corporate governance reflects upon the ethics, human values and attitude of those responsible for running and managing corporate organisations Define corporate governance. Discuss it’s significance and various measures taken to ensure effective corporate governance in India.   ECONOMY/ENERGY   TOPIC: General Studies 3 Infrastructure: Energy Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Turning India’s power surplus into a boon For last few months, low consumption of power in the country has resulted in low plant load factor and surplus of coal at the pithead and at the power plants. This is because a good monsoon has lowered agricultural consumption of electricity and cheaper hydropower has replaced thermal power in the grid as bountiful rains ensured ample waters in the reservoirs. Due to this factors and its implications, the experts and analysts have been questioning the efficient utilisation of additional capacity that is being added to the grid. This is so because India is adding capacity, not only in the traditional thermal and hydro but also in the renewable sector, in which there is a target of 175 GW of capacity by 2022. Challenges and solutions Per capita availability and reliability India’s per capita consumption remains among the lowest in the developing world. This reflects that power consumption is going to grow in the future and the current situation shows low purchasing power of the consumers at present. Apart from low purchasing power, there are connectivity and reliability issues. These, though are being sought to address at a fast pace. (GVAs have been appointed for monitoring of new connections)   Discoms The woes of distribution companies (discoms), which are not buying power because of their debts and inability to recover costs from consumers, are being overcome through the Ujwal Discom Assurance Yojana (UDAY). Viability of plants A low plant load factor threatens the viability of power plants. Thus, India has to bring out creative solutions to deal with the current situation. India is not the only country which faces such challenges. Many countries have overcome this situation by having competing facilities in two-three fuels, with the grid switching over from one fuel to another depending on the price of the fuel and the market demand. Coal competes with fuels such as natural gas and nuclear and the consumer is offered different options. In country like India, where capital has other competing demands, investment in the power sector could be made more profitable with the adoption of a slew of measures that increase the consumption of electricity as it offers elasticity of use and could be utilized to replace fuels in other sectors. Examples of countries with better use of power Ecuador Ecuador has invested in hydropower in the last few years due to which it has become power surplus now. It is efficiently using the excess power by replacing gas stoves with electric stoves for cooking in households. This brings down the consumption of natural gas which it imports. India can take a cue from such models and encourage the use of electricity for cooking during the surplus season for which there can be a special tariff which could be lower than comparative LPG prices. In addition, electricity can replace imported kerosene and thus have a positive impact on overall LPG and kerosene imports. China In city of Guilin, China, majority of two-wheelers being used are electric vehicles. This is because China restricts the use of traditional two-wheelers in several cities in order to reduce pollution. As a result, China is the global leader in the electric two-wheelers market, with an estimated stock of 200 million units. India also has a target of having six million electric vehicles by 2020. This should be increased and power companies could be guided to take a special interest in their promotion. Cities like Ahmedabad, Vadodara and Pune, which are known for their liking for two-wheelers, could become the hubs for the adoption of electric vehicles. For this, electric charging facilities for vehicles can be provided in major cities and on highways. Lower tariff could be offered for ‘off-peak’ recharge of vehicles. Again, China has encouraged use of electric buses in public transport with it being a global leader with a fleet of 1,70,000 buses. In India, Smart cities and cities planned under the proposed industrial corridors should incorporate infrastructure for electric vehicles in their plans. Also, Indian Railways could fast-track its electrification programme so that it lowers its diesel consumption.   Conclusion If these measures are taken, they would have many beneficial effects. Adoption of electricity for cooking instead of LPG, LNG or kerosene would lower our imports of these fuels. Similarly, a jump in the use of electric vehicles will lower the rise in demand of petroleum imports. This will help in meeting the Paris 2015 commitments. Faster electrification may even lower consumption of refined petroleum products, thereby contributing to the target of lowering imports of these products by 10% set by Prime Minister. Lower demand by India, the fourth largest importer of crude oil, will have a salutary effect on the market price of crude oil and will contribute to enhancing the energy security of the country. India has made good progress in selling power. In 2013, India started exporting 500 MW of power to Bangladesh, which has been augmented further by commencing export of another 100 MW from Palatana, Tripura in 2016. Power exports to Nepal are set to increase following the completion of the construction of the Muzaffarpur-Dhalkebar transmission line, once the transmission infrastructure on the Nepalese side is strengthened. In the case of Sri Lanka, an undersea cable will allow India to export power to them. India has made a good beginning by commencing export of 3 MW to the border towns of Myanmar, which could be scaled up by constructing a better transmission infrastructure. A pan Asia-Pacific grid in the long run will help balance the surplus and shortages in the region. Surplus power could lower the demand for imported petroleum products and increase the consumption of domestically produced coal. 175 GW renewable energy target by 2022 will be a welcome addition to our energy mix and help replace fossil fuel further. Thus, the power surplus situation can be converted into a boon. Connecting the dots: India is going to be a power surplus country. How can it effectively use its surplus asset? Substantiate. Power in India is going to be sufficient for all of its population. What are possible changes that can domestically increase use of power and simultaneously made affordable? Discuss.   MUST READ The pivot through Kabul Hindu   Case against a uniform asylum law Hindu   Securing the skies Hindu   Bitter Medicine Indian Express   India and Nepal relations Indian Express

Nov 1, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 50]

Click here to get all the Tests– Archives Q.1) ‘Agricultural Marketing and Farmer Friendly Reforms Index’ is released by NITI Aayog WTO Food and Agriculture Organization of the United Nations Indian Council of Agricultural Research Q.2) Consider the following statements about National Committee on Trade Facilitation (NCTF) It has been constituted in line with the World Trade Organisation (WTO’s) Trade Facilitation Agreement (FTA), which India also has ratified It will be responsible for identifying the nature of required legislative changes needed for compliance with Trade Facilitation Agreement (TFA) Select the correct statements: Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.3) SIMBEX is maritime bilateral exercise between India and Sri Lanka Myanmar Singapore Australia and New Zealand Q.4) Which of the following is/are correctly matched?                City                                                                    River Srinagar                                                               Jhelum Nashik                                                                 Ganga Guwahati                                                            Brahmaputra Select the correct code: 1 and 2 1 and 3 2 and 3 All of the above Q.5) Andhra Pradesh and Telangana jointly topped “Ease of Doing Business Reforms Ranking 2015-16”. It is jointly released by DIPP and WTO Ministry of Corporate Affairs and WEF WTO and WEF NITI Aayog and DIPP Download the Solution- Click here All the best IASbaba

Oct 31, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 31st October, 2016

Archives   IASbaba’s Daily Current Affairs – 31st October, 2016   SOCIAL/HEALTH ISSUE   TOPIC: General Studies 2 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.   Global TB Report 2016 and India   The Global TB Report 2016, recently released, has revised the estimates for the tuberculosis (TB) burden in India upwards. The country has 27 per cent of the global burden of incident tuberculosis and 34 per cent of global TB deaths.  As per the 2015 estimate, the number of TB deaths has doubled to 4,78,000 — making TB one of the leading causes of death in India. As a result the World Health Organisation (WHO) has  decided to have the the first United Nations General Assembly session on the disease on lines similar to HIV-AIDS wherein the member states adopted a political declaration to fast-track progress in combating the HIV-AIDS epidemic. Lack of political will has been cited as the primary reason by WHO to hold the special assembly session. There is a need to mobilise the government machinery effectively and efficiently. As per WHO, the inclusion of  Minister of Health only has not proved to be very effective and hence it highlights the need to include Minister of Justice and Minister of Finance from the nations with high disease burden such as South Africa, India and Russia. Reasons for the rising crisis The number of deaths caused by TB and the incidence rate had been consistently dropping from the historical highs globally, but there has been a recent increase uptick that is much larger than previously estimated. In addition to the failure of political machinery, the other major reasons for this are as follows: Shortage of drugs Increasing Multi-Drug Resistant TB (MDR-TB) and Extensive Drug Resistant TB (XDR-TB) Total Drug Resistant TB acting as an assured death warrant Inadequate prescription by doctors and inadequate follow up of proper prescription by patients is aggravating the problem of antibiotic resistance Disease becoming expensive and difficult to treat Poor quality serological tests for diagnosis Delay in implementation of critical programmes under the Revised National TB Control Programme (RNTCP) such as expansion of the GeneXpert pilot programme, scaling up of drug sensitivity testing, and the introduction of a child-friendly paediatric TB drug. Poor quality treatment by medical practitioners   India’s Initiatives - Past and Present   Revised National TB Control Programme (RNTCP) RNTCP was originally started in 1997 and then upgraded to be implemented for the period 2012-2017. It has the following components: Inclusion of the private sector Integration of HIV-AIDS along with TB eradication Maintenance of National TB Register to include the details of TB cases Use of WHO recommended Direct Observation Treatment Short Course (DOTS) and DOTS-Plus Focus on MDR-TB and XDR-TB Nikshay Project Nikshay is a web-based solution for monitoring the effectiveness of RNTCP. The app attempts to make the notification process simpler to reach more patients and doctors. 90-90-90 Targets 90% reduction in incidence, mortality and catastrophic health expenditure by 2035. This has to be ensured by reliable data and evidences. Vaccination Bedaquiline is being introduced at six tertiary care centres across India and will be given to patients with MDR-TB. Cartridge-Based Nucleic Acid Amplification Test (CBNAAT) A revolutionary rapid molecular test which detects Mycobacterium tuberculosis and rifampicin drug resistance, simultaneously. This test is fully automated and provides results within two hours. It is a highly sensitive diagnostic tool and can be used in remote and rural areas without sophisticated infrastructure or specialised training. Way Forward Diagnosis: The rising menace of TB  can be solved by early recognition of people having TB symptoms and put them on appropriate first line of drugs and there by eliminate it in first instance. The national TB programme has failed in identifying the people who show early symptoms. Private Sector: The private sector has a very crucial role to play  in checking the the rise of TB. Strict guidelines need to be followed to report cases of TB to government and private hospitals needs to be penalised for failure to report early TB cases to government. This will enhance the accountability of the private players. Technology: Technology has to be introduced and utilized in the most effective manner to ensure early access and monitoring. Citizen Awareness: There need to be in place awareness program that let people know as to what constitutes early symptoms of TB and measures to be taken in a timely manner.   Connecting the dots : Highlight the causes for rising problem of TB in India and the causes for failure in India to check the rise. Tuberculosis can be one of the major hurdles in converting the human capital in India to Demographic Dividend. Highlight the reasons for the rising TB problem and suggest measures to eliminate the problem.   SECURITY/NATIONAL   TOPIC: General Studies 2 India and its neighbourhood- relations. Effect of policies and politics of developed and developing countries on India's interests General Studies 3 Security challenges and their management in border areas Role of external state and non-state actors in creating challenges to internal security.   Involvement of game theory in declaring surgical strikes In news: It’s been a month since surgical strikes happened across LOC on terrorist launch pads. This has resulted in continuous firing from the other side of LOC and rising militant attacks which has claimed more lives of Indian soldiers. This brings forward the question if what could have been in government’s mind to declare such strategic operation. India’s leadership might have been in dilemma of — to speak or not to speak — with regard to the recent surgical strikes. Hence a question arises if Game Theory — the study of decision-making in interdependent situations, i.e. situations in which the outcomes and the pay-offs of a “player” (a person, firm, or country involved in the situation) depend not just on what the player does but also on what others do — offer any answers? In this mathematical model, it defines a game as consisting of a set of players, each with a set of strategies, and a pay-off (success) table specifying the pay-offs. It means that it will determine the gains and losses to each player from the adoption of any combination of strategies, one for each player. The game theorists base their analyses on two assumptions Rational players- they aim to maximize their pay-offs. Common knowledge- the elements of the game (players, strategies, pay-offs) are “common knowledge”, i.e. known to everyone, known to be known, known to be known to be known...ad infinitum. Game theory in declaring surgical strikes News reports confirm that India’s recent surgical strikes in response to militant attacks in Uri may not have been the first ones. The new aspect of this situation is that India has made its retaliation common knowledge by declaring there has been a strike. This changes the interaction between the “players”—the Indian and Pakistan governments and civil society and the global leadership. Response The announcement now makes it clear to India and the world at large that the Pakistan government knows there has been a surgical strike. This will make Pakistan incumbent to respond which they have done by denying of such strikes taking place. Next, they have stepped up their militant attacks and cross-border firing which indicates that the response has begun and will continue. Pakistan has to act The declaration and the consequent disapproval of terrorism by world leaders is also a possible tool in the hands of the political elite of Pakistan in their ongoing power struggle with the military and militants. This is happening at an opportune time when the present army chief’s tenure is coming to an end. The reported differences between Shahbaz Sharif (Pakistan politician) and the ISI head indicate that the politicians have initiated their moves.   No more patience It signals to the Pakistan public and civil society that India’s patience is running out and it no longer feels the need for “deniability” of its counter-terror operations. This is likely to strike a chord as the people of Pakistan are themselves victims of terrorism. The triggering of a mood against terrorism in Pakistan depends on its people having the impression that India has been a tolerant onlooker to past attacks and has acted only when the provocation snowballed to unbearable proportions. Impact on Indians The announcement were supposed to have impact on the Indians who are about to vote in critical state elections. Certain results which was not expected (and not appreciable) The claim by the government that the Indian Army has recognized its strength for the first time through these strikes is unfortunate. An army operation is being tried to give extreme political colours which is not acceptable neither a good example. Also, the revelations by the opposition that India has engaged in such strikes in the past damages India’s ability to claim the high ground. Similarly, the Prime Minister’s sympathy for the cause of Baloch separatists, may make India’s alleged involvement common knowledge but it does so to the detriment of India’s cause in Kashmir.   Conclusion Amongst various reactions within India, the announcement prompted countries around the world to come out in the open about their stands on cross-border militancy in Kashmir. The support of countries such as the US and Russia, though muted, is welcome. China’s stonewalling is expected, for instance on the declaration of Masood Azhar as a terrorist, given the US’ emerging tilt towards India and China’s alignment with Pakistan. Finally, India’s foreign policy has shown its focus where it aims to identify and propagate the fight against terrorism by collectivising the countries which share the same views as India on counter-terrorism. Connecting the dots: How was game theory utilised by India in declaring surgical strikes across LOC? Explain the varied impacts.     MUST READ An invitation to peace-mongering Hindu   Still seriously hungry and poor Hindu   Case for extending the quota Indian Express   India’s Met model for world Indian Express

Oct 31, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 49]

Click here to get all the Tests– Archives Q.1) Consider the following statements about Enforcement Directorate (ED) It is under the Ministry of Home Affairs (MHA) It is the law enforcement agency of the Foreign Exchange Management Act 1999 (FEMA) and the Prevention of Money Laundering Act 2002 (PMLA) Select the correct statements: Only 1 Only 2 Both 1 and 2 Neither 1 nor 2  Q.2) Which of the following is/are correctly matched? Aconcagua :: Chile Kilimanjaro :: Tanzania Denali :: Alaska Elbrus :: Ukraine Select the correct code: 1, 2 and 4 2 and 3 1, 2 and 3 2, 3 and 4 Q.3) ‘Dactylography’ is concerned with Ductility of metals Spinal cord Fingerprints Tattoo removal Q.4) Which of the following statements is/are correct about the International Bank for Reconstruction and Development (IBRD) It was created to help Europe rebuild after World War II It is a part of World Bank Group Select the correct code: Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.5) The “Sajha Abhiyan” of the Rajasthan Government is concerned with Complete elimination of child marriages Open jails 24/7 electrified villages None of the above Download the Solution- Click here All the best IASbaba

Oct 31, 2016 AIR

All India Radio - Venezuela Non Alignment Movement Summit

ARCHIVES   Venezuela Non Alignment Movement Summit   Search 19th September 2016 here:  http://www.newsonair.com/Main_Audio_Bulletins_Search.aspx   TOPIC: General Studies 2 Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Effect of policies and politics of developed and developing countries on India's interests   NAM- past and present The genesis of the NAM was a result of the war between the two blocks during the cold war. Even before the first meeting of the NAM that was held in Belgrade in 1961 by Yugoslavia, a meeting in Bandung had taken place in Indonesia. In this meeting, the five principles on which NAM was based were decided. They are Mutual respect for each other's territorial integrity and sovereignty. Mutual non-aggression. Mutual non-interference in domestic affairs. Equality and mutual benefit. Peaceful co-existence. However, there were questions asked that once there was an end to the cold war 1991 with the disintegration of the USSR, then what would be the rationale of existence of NAM. In fact, since that time, the NAM is trying to find a role for itself. So, earlier it was fighting against colonialism, racism and apartheid, developed countries and their imperialism on developing countries. But after the end of cold war, then the focus of movement has to change. Some are of the opinion that it is for economic cooperation and collaboration so that economic conditions of the citizens of the developing countries could improve. Thus, the fundamental rationale and objective have changed, but it still continues to be relevant. There are other organisations like NATO which was a product of cold war, but even that has not ceased to exist after the USSR disintegration. Need for UNSC reforms India has been actively pushing for the reforms, especially the UNSC. Even Vice President of India at the NAM summit pointed out that whether an organisation formed in 1945 with just 51 members is really appropriate to serve the needs of international community which is now comprised of 193 independent sovereign states. The international community acknowledges and accepts that the UNSC reforms are needed. The question is how to take this reform forward. In that context, the NAM is also not a united house. In 2005, UNGA had acknowledged need of changes in UN, particularly in the size, structure and composition of UNSC. Kutesa report, a negotiating text for the Security Council reforms, was adopted during the 70th session of UNGA. It was hoped to move forward but obviously there are vested interest of some countries who do not wish the UNSC to be expanded or to be reformed. Thus, there is a need to raise this subject at every forum like India is already doing. This will bring to notice of international community the importance of such issues and that India has all the qualifications of becoming the permanent member of UNSC. Counter- terrorism issue at NAM India is pushing for the world community to globally recognise that terrorism is no longer a regional but a global issue and India is a victim. The way terrorism is spreading, there is hardly any country which can say that it is not affected by terrorism one way or other. For decades, there has been a proposal from India for a Comprehensive UN Convention on Terrorism. This has not been taken forward because there is no agreement on definition of terror per se in that because there are some countries who try to divide terrorists between good terrorists and bad terrorists. Thus, when looking at even a regional response to terror, there are problems. President Ashraf Ghani of Afghanistan has also said that the perpetrators of crime in Afghanistan are given sanctuary, training and finance by Pakistan. India and Bangladesh have also suffered from similar experiences. Pakistan has emerged as the single source of epicentre of terrorism in South Asian region. Then there are countries which for political reasons put a technical hold. (China on Masood and Lakhvi). This is when PM Modi told Chinese President that it should not look at terrorism through the ‘prism of politics’. In NAM, India tried to pass a resolution on counter-terrorism but since the resolution in NAM are based on total consensus, Pakistan blocked it. Way forward for India and NAM relevance It can get very frustrating when India’s recurring efforts to counter terrorism are thwarted repeatedly by two countries. But India needs to continue to apply as much international global pressure as possible upon those countries. At fora like NAM, G20, East Asian Summit, ASEAN summit, India has to bring out the nefarious activities and tactics of Pakistan in supporting terrorism. It has to appeal to the international community and global powers for counter terrorism cooperation because terrorism doesn’t differentiate between countries. And PM has also said at G20 that countries spreading as well as supporting terrorism should be isolated and sanctioned and not rewarded. India has to simultaneously strengthen itself and keep a vigil that such attacks are not repeated. Today it is a multipolar world and not unipolar or bipolar. Countries like Russia, Japan, India are one of the important poles. The relevance of NAM is to stay as it will help the international community deal with many issues like- sustainable development, reform of UNSC, ensuring peace, countering terrorism, climate change etc. Connecting the dots: Can India’s repeated efforts to bring forward counter-terrorism need reap any result? Discuss. Can organisations made during cold war era and before be still relevant in this changing world? Discuss.   Related article: No more aligned to ‘Non-Alignment’