Oct 14, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 14th October, 2016

Archives   IASbaba’s Daily Current Affairs – 14th October, 2016   NATIONAL   TOPIC: General Studies 2 Parliament and State Legislatures - structure, functioning, conduct of business, powers & privileges and issues arising out of these. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Telangana- Small administrative units for better administration? In news: Telangana now has 31 districts from previously 10 districts. But the important question arises is if smaller units can actually help in better administration or not. Background: During 2014 elections, the Telangana Rashtra Samiti had promised creation of 14 new districts. After it came to power, the Chief Minister initially agreed for issuance of notification for 17 new districts. Ultimately, due to protests, agitations and demand for new districts, four more were added. New additions in state 21 new districts 25 additional revenue divisions 125 new mandals 4 new police Commissionerates 23 new police subdivisions 28 new circles 91 more police stations Picture Credit: http://images.indianexpress.com/2016/10/telangana-division.jpg What is being done? The Telangana Planning Department officials are assigning unique numerical code to all the districts, mandals and villages afresh. The Telangana State Remote Sensing Application Centre (TRAC) earlier prepared maps for all the districts, a prerequisite for giving the district code pending release of standard maps by the Survey of India. The unique numerical code for districts and mandals is important because of the financial implications and required for Central programmes like NREGA where funds would be directly released into accounts of beneficiaries based on authenticated code. Planning Department officials said unlike in the past where the focus was on data collection, now the focus would be on resource mapping in each mandal and accordingly the mandal-level officers were re-designated as Mandal Planning and Statistical Officers.   Small units = Better administration Facilitate better monitoring of beneficiaries of various government schemes like housing schemes, pensions, education and others. Provides more even distribution of resources. The population division on various criteria is known and thus funds are dispersed as per requirement. Local inputs into framing of development work. A bottom-up approach to development that allows local stakeholders greater say in decision-making on issues directly affecting their lives. The emerging small units will help police in improving relationship with people. Small units make police accessible to people easily. As per the CM of Telangana, adopting the model of small districts will boost development and take administration closer to the people. The idea was to break down the existing districts into smaller ones – each with a population of not more than four lakh. This way, the district collectors, who manage the district administration, will be able to serve the people better. Small units = Better administration is not true Increased costs due of creation of additional administrative infrastructure, transfer of personnel, and replication of paperwork. Initially, existing staff is redeployed and existing buildings are utilised for administrative purposes which creates pressure on human resources as well as assets. Telangana government has sanctioned Rs. 1 crore for each district for initial arrangements, which will hardly suffice. Increasing bureaucratic work at the village level will not automatically lead to better governance outcomes. Thus, not all are buying the reasoning of better administration for creation of such small districts in Telangana. It is said that the formation of districts is more of political decision than administrative one. The agitation in Jangaon, Sircilla and Gadwal areas of Telangana changed the existing decision of creating 17 new districts to 21 new districts. Conclusion Small districts, like small states, can certainly prove to be good models of governance, but without proper planning and preparation, this new experiment stands exposed to vulnerabilities. The role of district collectors, police, judiciary and their efficiency will be known as they have smaller areas to govern. How fast the state government can appoint these government functionaries to begin administration of district remains to be seen. A new case study will be available on the subject of ‘Smaller Units as medium to better governance- Reality or Myth’ in a while which will provide a first-hand insight into a larger consideration of increasing more states in India for improved administration and political satisfactions. Connecting the dots: Large states give political mileage but becomes administrative nightmare at times. Do you agree that larger states with small administrative units (districts) will solve multiple governance problems? Critically evaluate India has small states like Goa and Sikkim and large states like UP and Maharashtra. What according to you are pros and cons of large and small states? Examine.   INTERNATIONAL   TOPIC: General Studies 2 India and its neighbourhood- relations. 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   Do not alter MFN status to Pakistan In news: After the Uri terrorist attacks, India was undertaking many options to revert back at Pakistan and one was reviewing the MFN status given to Pakistan. The call was to withdraw the status but is it a wise choice? The MFN status The General Agreement on Tariffs and Trade (GATT) was negotiated in 1947. GATT’s articles of agreement were signed by all its founding members—including India and Pakistan—in October 1947, and ratified the following year by both countries. While signing GATT, nations agreed to abide by its cornerstone principle—non-discrimination in trade relations, whereby an importing country may not discriminate against imports based on their country of origin. This principle of non-discrimination, articulated in Article I, is referred to by GATT as “General MFN Treatment”. It means that any “favour” in trade granted to another member country shall be immediately and unconditionally granted to all other member countries. No doubt, the terminology is confusing: MFN does not imply favouritism, but actually rules it out. More importantly, it rules out discrimination in trade against any member country. Now, anticipating that some countries in future would wish to pursue comprehensive economic integration with other members, GATT also permitted departures from the principle of non-discrimination and permitted for formation of preferential trade areas, example EU (Article XXIV) In the same spirit, GATT observed that India and Pakistan had once been an integrated economic unit, it provided exception to trade relation between India and Pakistan under article XXIV. In simple terms, it meant that India and Pakistan can enter into special arrangements with respect to the trade between them and enjoy closer bilateral trade relationship. The exception is that they would not be required to extend the same special arrangements to other GATT nations.   India-Pakistan trade relation It began under the GATT provisions and remained vibrant for an extended period after partition. In 1948-49, India accounted for around 56% of Pakistan’s total exports and 32% of its total imports. Despite the hostilities of 1948, India remained Pakistan’s largest trading partner until 1955-56. The trade relations nosedived with 1965 and 1971 wars. But, it was resumed on a limited scale after 1972 Simla Agreement was signed. Later, the trade between India and Pakistan took place on the basis of “positive lists” (only goods specifically on the list could be traded). This was illegal under GATT MFN rules and violation of art XXIV which had permitted more (not less) liberal trade than the two countries had with other GATT nations. When WTO was formed in 1995, India accorded MFN status to Pakistan but Pakistan has not reciprocated it till date. What can India do? Many experts believe that India should not revoke Pakistan’s MFN status. Here’s why Simple economics logic says that free trade remains the best policy even if your trading partner wishes to be more closed. As said by economist Joan Robinson, if your trading partner dumps rocks into their harbour to block entering cargo, you do not make yourself better off by dumping rocks in your own harbour. Trade with Pakistan is less than 1% of India’s total trade. Even Pakistan does not have significant share of India in its trade. Thus, trade policy with Pakistan will anyways not yield much result whether it is carrot or a stick. Offering MFN status to a trading partner is an obligation, not a choice, for WTO members. If Pakistan has not given to India, it should raise Pakistan’s non-compliance at the WTO instead of revoking. There is hope of peace after war. In this context, free trade may foster prosperity, peace and friendship among both nations. India should pin on this hope for future. Thus, India can claim a moral high ground in fulfilling the WTO obligations. Revoking Pakistan’s status may give satisfaction of ‘revenge’ but, it would not reflect mature statesmanship. And considering India’s increasing role in global issues, India has to maintain high standards of respecting globally set and accepted rules. Connecting the dots: What according to you is MFN? Is it important for India’s economic boost? Explain India has many ways to get back at Pakistan. For that, it need not undertake actions that undermine its position as emerging global leader. With respect to revoking MFN status to Pakistan, do you agree in favour of taking such actions? Give reasons   MUST READ   The alphabet soup at Goa Hindu   Dalit politics- When Jai Bhim meets Lal Salaam Hindu   India under-reported TB for 15 years: WHO Hindu   The Asian century beckons- BRICS Indian Express   Reading it wrong- Photocopy case Indian Express   A matter of waste Indian Express   Tread carefully- Personal Law reforms Indian Express   Was the spectrum auction a success or a failure? Livemint   India’s rural transformation: A myth or reality? Livemint   Food for thought Business Line   Time for meaningful business ties at Brics Business Line    

Oct 14, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 39]

Click here to get all the Tests– Archives Q.1) Consider the following statements about contingent convertible capital instruments (CoCos) They are also known as Additional Tier 1 bonds They are hybrid bonds that combines debt and equity elements Which of the following statements is/are incorrect? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about ethanol blending It is the practice of blending petrol with ethanol It reduces vehicular emissions & import burden on account of crude petroleum Ethanol blending first found mention in the National Policy on Bio-fuels, 2009 Which of the following statements is/are correct? Only 1 1 and 2 2 and 3 All of the above Q.3) In a country’s economy, the direct tax collection is 56% of the total tax collection  What does this indicate? Progressive tax system Regressive tax system Proportionate tax system None of the above Q.4) Right to Property in India is a It is a legal right It is a Fundamental right It is a Constitutional right Both (a) and (c) Q.5) Gaza strip is frequently in news. It is a landlocked region in Middle East part of Egypt a landlocked region in North Africa None Download the Solution- Click here All the best IASbaba

Oct 14, 2016 Motivational Articles

Creative Guidance: Book Review – Stranger to the ground – Richard Bach

Stranger to the Ground : Richard Bach Richard Bach has a brilliant knack of combining the color and flavor of adventurous spirit with the struggle of daily living. His writings are an inspiration for a soul longing for freedom, expression and liberation. Stranger to the ground is a strange tale of one’s search for creative freedom, lives meaning and purpose. This book is a sheer treat for a soul longing for freedom and happiness. Infused with the technicalities and details of flying Richard Bach weaves the story of lives longing for freedom in ‘Stranger to the ground’ Read this adventurous tale of flying towards your inner expansive vision of clarity and purity of the open sky. Read this book to travel with Richard and take notes on the art of flying. This book is a must read for all those who are longing to find a voice for their inner expression. “This Book Review is a copyright of The Ahamo Movement and IASBABA.”

Oct 13, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 13th October, 2016

Archives   IASbaba’s Daily Current Affairs – 13th October, 2016   INTERNATIONAL   TOPIC: General Studies 2 India and its neighbourhood- relations. 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, Indian diaspora.   Opportunity at the Indian Ocean The recent Uri attack had one of its prominent casualty- postponing of SAARC summit, 2016. The regional cooperation is India’s boost for a wider economic prospect and thus India has to look at other alternatives for regional cooperation. After the Uri attack, SAARC summit was boycotted by India, Bangladesh, Afghanistan, Sri Lanka and Bhutan. But it has brought into view the Indian Ocean Region and the idea of placing the wider region at the heart of a new neighbourhood policy for India itself. Though the PM has made multiple foreign visits, there is still a need for India to have a defining international economic project. SAARC has been ineffective The eight nation body’s November annual summit was cancelled after September’s terrorist attack in India. SAARC has often been viewed as ineffectual and many observers have asked if its position has become untenable. Recently, Sri Lankan PM expressed for a body that focuses on Indian Ocean. Picture Credit: http://wikilists.info/wp-content/uploads/2011/05/saarc-countries.jpg Reviving the Indian Ocean Focus Recently, a think tank- The India Foundation held an Indian Ocean summit in Singapore in September 2016 which aimed to raise India’s profile as a power with interests across Asia. Though the event’s agenda had a softer focus—on cultural ties based on Hinduism and Buddhism, there was a harder edge too, with India positioned as a counterweight to an increasingly assertive China. When the Foreign Secretary of India argued in favour of ‘reviving the Indian Ocean as a geopolitical concept’, it indirectly pointed against Chinese encroachment in the Bay of Bengal. Many East African nations have been visited by Indian PM alongside trips to the Seychelles, Mauritius and Sri Lanka. This initiative should focus on developing potential of economic benefits from greater regional trade rather than undue importance to narrow cultural concerns on the one hand, and vague geopolitical worries about China on the other.   African focus in the Indian Ocean Region India will be the world’s fastest growing nation in the decade to 2024, with its gross domestic product expanding by an average of 7% per year. But also of the world’s six fastest growing economies over that same period, four will also be in east or southern Africa, including Kenya and Tanzania. This potential growth is already attracting corporate India, with groups like Tata and Mahindra targeting African markets. Many countries like Myanmar and Indonesia are also expected to be a part of fast growing economies. With the schemes like Make in India, the goods manufactured in domestic factories will have markets around eastern Africa and South-East Asia. This will be a big boost for India’s presence beyond South Asian sub-continent. Picture credit: http://www.thehindu.com/multimedia/dynamic/00944/new_07th_indian_oce_944341f.jpg Aligning the interests Though the economic and trade potential are immense, the problem lies in the fact that the links between these nations are often feeble. South Asia is one of the world’s least economically integrated regions. But the Indian Ocean, which encompasses roughly 40 nations and stretches from Australia to East Africa, is hardly any better connected. As per estimates, a third of global bulk cargo and two-thirds of oil shipments cross the Indian Ocean. But most of this goes to different countries, rather than being traded between countries in the region.   Way forward- Improving the situation India has to take the lead role in defining and implementing the economic trade within the Indian Ocean region. The idea of creating a new regional body, or expanding an old one, is one approach being discussed. Expansion of Indian Ocean Rim Association, a low-profile grouping of 21 countries is a starter. Though it has its drawbacks. In SAARC, India dominated the group, the Indian Ocean Group countries would suffer the opposite problem where the countries having hardly anything in common will have to be diffused together. Also, the record of previous attempts to push alternative regional bodies is not very encouraging. For instance, BIMSTEC which has been not so active despite pursuing of stronger regional ties. Hence, the evidences which stated that regional bodies hardly do much to improve trade flows in any case, stand true. China’s successful OBOR initiative shows that tangible projects between countries are normally the best basis for new economic cooperation across regions. Thus, to improve the situation, India should make bigger, unilateral push to improve regional connectivity, including greater financial support for new infrastructure investment and a new push to reduce trade barriers, beginning with its own. India has to push projects like Myanmar-Bangladesh-India gas pipeline or provide greater development funding assistance to poorer neighbours. The Indian Ocean has the potential to become the most important source of new global growth over the next 20 years, just as the Pacific rim powered the world’s economy for much of the last 20 years. For India to emerge at the heart of new regional order, it should be ready to give finances to support developmental activities in region. Connecting the dots: Moving away from SAARC, India has immense opportunities to develop various other regional groupings. What are they and briefly mention their importance. IOR provides plethora of opportunities to India to develop its economic, political and geographic importance. Evaluate.   ECONOMICS   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.   The everyday relevance of 2016 economics Nobel In news: The Nobel Prize in Economics for 2016 has brought forward the criticality of economics in day to day life. The Nobel Prize in economics has created enthusiasm outside the circles of economists as it is relevant to everybody. Let us have a look at what the Nobel Prize in economics for 2016 means to us. Oliver Hart and Bengt Holmstrom were chosen as recipients of the 2016 Nobel Prize in economics for their work in contract theory. Their work spans many years of human engagement and explores the contracts in their research studies in diverse areas such as employer-employee relationships, insurance, banking and regulators, among others. Hart and Holmstrom have tried to provide a framework to understand how such contracts are designed. This might help lay people understand the manner in which their employer has structured their salary. It is important to keep in mind that there are no definitive answers to questions about contracts. Most answers to economic questions come with the caveat that- it depends on the context. Contract theory Contracts are legally binding agreements governing who will do something in exchange for something under some circumstances. The theory holds that the contracting costs between economic units (parties) are shaped by the nature of the interaction between them. These costs are not operational costs, such as commission fees or transportation costs. Instead, they stem from the lack of clarity and enforceability of the terms of the interaction and each unit’s dependence on the interaction. Thus, as Oliver Hart puts it- Behind every partnership lurks an “incomplete contract”. For example, if two people decide to open a lemonade shop. Person ‘X’ decides to bring material (cups, raw material etc.), while person ‘Y’ make the lemonade. X will serve while Y will be the cashier X will get worried that Y might take away more cash than him. Thus, they decide to draw a contract which dictates that returns of their operation must be split evenly. But then Y starts to worry that ‘good lemonade’ will make business successful and, X has no role in it and thus 50-50 split is not just. Thus, both will eventually enter into contract where each one’s responsibility will be decided and adhered to.   The regulators need to pay attention Employment contracts are best seen in the context of principal-agent problems. From the standpoint of public policy, the work of this year’s Nobel winners may be a useful framework to understand the outcome of the recent telecom spectrum auction. A highlight of the auction was that spectrum in the efficient 700 MHz remained unsold. Bidders felt the reserve price, or floor for auction bids, was too high for this band. TRAI and the telecom ministry (agents) of Indian citizens (the principal) should question the outcome- Were the agents too risk averse? If the answer is affirmative, then if there are any better set of incentives which can be provided to make sure the principal does not lose opportunities? Such questions establish a contractual relationship between various concerned parties.   Banking Even after 2008 financial crisis, bankers are paid large bonus. This creates a huge outrage as those who created the crisis are being continued to paid exorbitant sums. Why? This is because the bonuses are built into their contracts. This is a debatable question of how and why bankers should be given employment contracts that involve large bonuses despite adverse performance. Explanation- shareholders of a bank (the owners, or principal) employ bankers (agents) to run the bank. The shareholders are interested in returns but it is the banker who is responsible for the day-to-day decisions that generate those returns. Thus, the banker has to be compensated for her/his services. Typically, the principal cannot observe the agent’s effort. If agents are offered a fixed salary regardless of effort, there is not much incentive for hard work. This is visible in government jobs. Thus, in many industries including banking, there is a performance-based pay where better outcomes for the shareholder (greater returns) are to be rewarded with better compensation for the banker. However, it involves other tricky parts too- the owners might be interested in long term performance but if bankers’ pay is tied into the short-term share price, it might create conflict of interest. Bankers might work to boost the immediate share price at the cost of long-term investment.   Teaching Sometimes, the outcomes of efforts are not measurable. Teachers are instrumental in the overall development of students. Thus, it is hard to measure what role a teacher plays in a child’s life Though scores are there to measure the children’s performance, the teacher’s pay linked to only measurable outcomes might lead to teachers focusing on tests alone, ignoring more general learning and all-round development. Is there a perfect contract? The Nobel Prize winners have proved that there is no ‘perfect contract’. But they have showed ways to improve outcomes. Professor Holmstorm argued that instead of paying agents on basis of share price of the company alone, their pay should be linked to external outcomes (for example, to the relative share price against other similar companies). The former is based on luck whereas the latter is competitive. This leads to more efforts by the employee and better measures of relative performance. This is possible only when the effort is measurable and can be linked to performance. This includes banking and manufacturing industry. However, if the result is immediate, the efforts are not easily visible. In such situation, pay should not be based on performance. For example, high risk jobs should have fixed salary whereas stable jobs should attract performance based pay. Thus, parties cannot specify detailed contract terms in advance as no one knows what will happen in future. This problem of ‘incomplete contract’ as specified by Prof. Hart then states solution in such condition. When future eventualities are not known, the contract should specify who has the right to decide what to do when the parties cannot agree. Depending on the eventuality that arises, the party with the corresponding decision rights has more bargaining power, and can secure a better outcome for itself. Decision rights thus substitute for performance-based pay. Socially optimal contracts ensure that all play a moral role. For example, if the car owner knows he will get full payment when the car is damaged, he will not be as careful as he would be if he were liable. Another application of Prof. Hart’s theory of incomplete contracts is the question of whether providers of public services, such as schools, hospitals, and prisons, should be privately owned or not. Such situations lead to a trade-off between investments in quality and cost reduction. The private sector might focus too much on cost reduction, but proper contracts can provide incentives for quality as well. Whereas in case of public sector, there is little incentive no matter what and how the work is done. Thus, the Nobel Prize winners’ insights have indeed found their way into modern contracts. Now it remains to be seen what is an optimal contract for a regulator and how it can be drawn. Connecting the dots: What do you understand by contract theory? What is its importance in Indian context? Discuss.   MUST READ Towards a kerosene-free India Hindu   Resetting the moral compass Hindu   The right to copy Indian Express   Builders can be arrested for not delivering: National Consumer Commission Indian Express   Weather extremes: The deluge after the drought Indian Express   India at Kigali: ‘Don’t use financial incentives to misguide developing nations on HFC phase-out deal’ Indian Express   Historical evidence is not enough to prove a caste’s backwardness Livemint   The Reserve Bank of India’s new neutral rate Livemint   Assam needs an action plan Livemint   The entry problem in education Livemint   Why India’s slum leaders matter Business Line  

Oct 13, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 38]

Click here to get all the Tests– Archives Q.1) Which of the following regulates pension products PFRDA IRDA SEBI Select the correct code: Only 1 1 and 2 1 and 3 All of the above Q.2) Consider the following statements about Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Only countries exposed to Bay of Bengal are members of BIMSTEC It is headquarted in Dhaka, Bangladesh Which of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.3) Coordinated Patrols (CORPAT) is a maritime exercise between which of the following countries? India and Sri Lanka India and Vietnam India and Maldives None of the above Q.4) Joint Comprehensive Plan of Action refers to which of the following The Chilcot Report India-Iran Nuclear Deal The Heart of Asia - Istanbul Process None of the above  Q.5) Strait of Johor is located between: Indonesia and Singapore Singapore and Malaysia Yemen and Djibouti Saudi Arabia and Yemen Download the Solution- Click here All the best IASbaba

Oct 12, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 12th October, 2016

Archives   IASbaba’s Daily Current Affairs – 12th October, 2016   ECONOMY   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.   Indian Economy: How is it Performing? The health of Indian economy can be measured in multiple ways. But, each metric points in a different direction. Is it reliable to show the real picture of Indian economy? The Gross Domestic Product and Gross Value Added (GVA) are both above 7%, hence it can be said the economy is growing strongly. But, the Index of Industrial Production (IIP) has contracted for two straight months. It means that India is actually not doing so well. Another indicator can be corporate and personal income tax collections. But it is not necessary that they reflect true picture of government revenues. Thus, different indicators align in different directions to conclude the health of economy. Adding to the confusion, almost every metric put out by the government is incompatible with every other metric, even if they pertain to the same sector! Differing results   GVA and IIP If we compare GVA in the manufacturing sector to the manufacturing component of the IIP, at the outset, it can be said that both pertain to the manufacturing sector. But the similarity ends here. While the IIP Manufacturing measures gross output (the absolute amount produced by the manufacturing sector), GVA Manufacturing measures the total contribution of labour and capital in the manufacturing process. This is completely different from gross output. In the first quarter of financial year 2016-17, the GVA manufacturing was very robust at 9.1%. However, the IIP manufacturing component contracted by about 0.8% in the same period. For a common person to understand, it provides a contradictory picture. Total output is shrinking, but more value is being added to that output. How is it possible and how to determine if the sector is progressing or not?   Actual measurement The IIP uses the figures of 2004-05 as the base year. On the other side, other metrics like GDP, GVA and the inflation indices have moved to a more recent base year of 2011-12. Comparing the results of both the indices is not a wise choice.   Inflation Two sets of numbers are released every month by the government- WPI and CPI WPI looks at the movement of prices across various categories at the wholesale level whereas CPI looks at the movement of the prices that the consumer finally pays. These indices moved in tandem for a while but at the start of 2015, they began to diverge. In September 2015, at the height of their divergence, there was a 9 percentage point difference between the two indices. CPI was at 4.4% and WPI was near the same, but in negative. This does not explain how the prices in the local markets are going to act. Tax collections Tax collections are also a useful metric to gauge income growth due to the assumption that if corporate and personal income goes up, then so will the government’s tax collections. However, it is often forgotten that only 5.5% of the earning population pays income tax. Adding to it, a large chunk of corporates gets away with paying zero tax thanks to the various exemptions and tax havens they can avail of. Thus, any conclusion made from tax collection may mislead where the economy is going. Picture Credit: http://www.thehindu.com/multimedia/archive/03041/th12_new_GVA_3041017a.jpg Periodicity of data releases The data undoubtedly important for policy and transparency viewpoint and that is why government releases industrial data. But such an exercise and effort seems futile when it is released on monthly basis as nothing can be perceived from such small period of data. Instead, for a more reliable analysis, a longer period of time is required. For example data, of say, a quarter can be compared for better prediction of where the economy is heading. It is very difficult, time consuming to aggregate such large data of entire country’s industrial performance and agonise over monthly variations of indices.   Ending note The monthly figures hardly provide any inputs of economic performance. The IIP numbers since 2011 has a standard deviation of 3. It means, how much any given month’s performance can vary from the average. Such huge deviations can derive nothing when data swings so wildly on a monthly basis. The data collection efficiency is equally important to come at emerging economic picture. However, there is no proof that data collectors of the Ministry of Statistics are efficient enough to provide accurate data. Hence, there should be application of Government Inefficiency Discount to data collection as well. It will further help to know the truth of the numbers being put out. Thus, for now, it cannot be said how the economy is doing based on such divergent results. Connecting the dots: What are different measures used by government of India to determine economic growth? Explain. Different indices to measure economic growth is a reliable way to understand the overall picture. However, these measures have to be in tandem rather than diagonally opposite to avoid confusion. Substantiate.   Related articles: WPI and CPI based inflation TLP 2015 INTERNATIONAL   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, Indian diaspora.   What is happening in Yemen and what should be India’s role? Story till now In March 2015, several wealthy Arab nations together started a bombing campaign against the poorest Arab nation: Yemen. The coalition was led by Saudi Arabia, and backed by the US. The war stranded over 4,000 Indians in Yemen, and prompted India to launch Operation Raahat, a highly successful airlift that won New Delhi international attention and kudos. The bombings faded from the headlines. But again in first week of October 2016, Saudi Arabia bombed Yemen which killed 140 people, most of which were non-combatants. This stirred the US administration’s conscience which prompted it to say that it was reviewing its participation in the war, and warned Saudi Arabia not to expect a ‘blank cheque’ to conduct its campaign. Picture Credit: http://www.mapsofworld.com/indexmaps/yemen-map.jpg Background: The Saudi Arabia’s target in Yemen has been Houthi militia which had taken control of large swathes of Yemen, including its capital, Sana’a. Saudi Arabia led coalition aimed to return power to the country’s president, Abd Rabbuh Mansur Hadi. But that had a sectarian and geopolitical subtexts to the war. The coalition was made up of Sunni-majority nations, and the Houthis are adherents of a kind of Shia Islam. For Saudi Arabia, which regards Shia Islam as its opponent, the prospect of a Shia uprising along its southern border was intolerable. Even more alarming for its dominance was that the Houthis were being backed by its old rival, Iran. The war by coalition was mainly air strikes where Arab states’ expensively assembled air forces had total domination and they were backed by US’s logistical and intelligence support. On the other hand, Houthis had no planes and Iran was never going to send air squadrons to support them. This made the Saudi Arabia and its allies confident of ending the war in weeks, or at most, months. But the fact that the war continues to rage till today is a matter of profound humiliation for the Arab states, whose military forces, built to combat domestic dissent from unarmed political activists, have proven incapable of subjugating an enemy that fires back, even with inferior weapons. For Iran, the cost in Yemen is small but the benefit is substantial. It keeps Saudi Arabia in check and distracting them from the larger geopolitical challenge. From time to time, Iran has also sought to use the conflict in Yemen to deflect attention from its own participation in the carnage in Syria.   Yemen has been destroyed in war Already one of the world’s poorest nations, it has been reduced to abject destitution. The war has been calamitous for Yemen More than 3,600 people have been killed. Millions have been made homeless. The World Food Programme has warned that the country is on the brink of famine, and Amnesty International reckons that 83% of the population depends on humanitarian assistance for survival. The Houthis, for whom this conflict had begun as a quest for greater autonomy in the country’s northern part, now find themselves responsible for a desperate population. The threat intensifies The war has made mockery of political calculations. The US Navy recently said that one of its destroyers off the coast of Yemen had been attacked by two missiles, fired from Houthi-controlled territory. In another instance, Saudi Arabia said one missile was fired at its airbase. Though the missiles fell harmlessly into the sea and created no casualties at airbase, it projected dangerous turns into the war. The Houthis have not previously been known to possess such firepower. Hence, Iran will be obviously pinpointed. The US worries about the potential for these weapons to fall into the hands of Al-Qaeda’s Yemeni operation where, it has taken advantage of the chaos and expanded its territorial control. Responding as a community It has been a depressed observation that world community is no longer unfazed by disastrous wars and disasters happening in other parts of the world. The starving kids, the bombed civilian places, destroyed homes evoke no strong response from the world communities. They have considered such ‘news’ as a routine and failed to exercise a second look deep into the matter. Thus, for India, to become a world leader, it has to evolve itself by addressing such matters. Indian media has to look beyond US and focus attention on global issues which are impacting everyday life of people in countries like Yemen. India’s civil society and social movements have been theoretically acute and organisationally substantial on issues like the right to information and the need of biotechnology but has failed to represent local and international issues like reinventing the UN and its idea of peacekeeping. India has to step out and take stands on starvation, rights, energy, violence and sustainability without being knee-jerk and imitative. This reiterates its domestic policies and focus on such issues in domestic context. In terms of responses to Syria, Afghanistan, Somalia, Yemen, India has been complicit with the West or tongue-tied. India does not need to wait for the actions and reactions of the west and form its responses. India has to be more empathetic with the downtrodden and should not distance itself from what the West calls “the failed societies” of Asia and Africa, from the fear of being painted with the same brush. There is a need for strong activists such as Bertrand Russell who created with great courage a tribunal to try the U.S. for war crimes in Vietnam and Noam Chomsky who also followed the suit. Today, few have the courage to demand and label the U.S. and Saudi Arabia for a crime against humanity. India has to respond as a community. Caring has to go beyond aid to create a new sense of community. Few aerial rescues are not worth the constant accolades but help is required in terms of moral support and active support for people of destroyed countries like Yemen and Syria. India has to uphold its democratic principles and not replicate the American need for hegemony and its lack of political ethics. Connecting the dots: Countries like Yemen and Syria are facing worst humanitarian crisis. But the world has hardly shown solidarity for them. Can India play any role in such international matters? Give reasons. India aims to become world leader-economically and politically. But for that, it has to move beyond US and China. Do you agree? Substantiate.   MUST READ Military fables of a democracy Hindu   Bandwidth for growth Hindu   India unhappy over Russia-Pakistan ties Hindu   HIV Bill offers steps to end discrimination and ensure equality for affected groups Indian Express   Pakistan’s India policy stems from false religious antagonism Indian Express   Govt, Law Board: Framing the Triple Talaq argument Indian Express   The ethics of our AI-enabled future Livemint   Call for a multilateral competition regime Livemint   It isn’t enough to focus on Doing Business rankings Livemint   UPI 2.0 will disrupt payments in India Livemint   Early childhood development should be a priority for India Livemint   Big changes for small units under GST Business Line  

Oct 12, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 37]

Click here to get all the Tests– Archives   Q.1) Consider the following statements about Ready-to-use therapeutic food (RUTF) Primary ingredients include peanuts, oil, sugar, milk powder and vitamin and mineral supplements It is safe to use without refrigeration at household level It can be used in combination with breastfeeding and other best practices for infant and young child feeding Which of the following statements is/are correct? 1 and 2 1 and 3 2 and 3 All of the above Q.2) Consider the following statements about National Commission for Backward Classes (NCBC) It is a statutory body It was the outcome of the direction of the Supreme Court in the Mandal case judgement Select the incorrect statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.3) NASA Invents ‘Electric Gauze’ That Can Speed Up Wound Healing. Consider the following statements The fibres of the guaze are made of Polyvinylidene Flouride (PVDF) Only one time external power source is required Wounds tend to heal much more quickly if small amounts of electricity are applied to the surrounding tissue Which of the following statements is/are correct? Only 1 1 and 3 2 and 3 All of the above Q.4) 15.2% of Indians are undernourished according to Global Hunger Index (GHI). GHI is published by World Health Organisation Médecins Sans Frontières (MSF) International Food Policy Research Institute (IFPRI) None of the above Q.5) Consider the following about 'Himansh', which was in news recently: It is a glaciological research facility of India located in Antarctica It is established by the National Centre for Antarctic and Ocean Research (NCAOR) The station houses many instruments to quantify the glacier melting and its relation to changing climate. Which of the above given statements are correct? 1 and 2 only 1 and 3 only 2 and 3 only 1, 2 and 3   Download the Solution- Click here All the best IASbaba  

Oct 11, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 11th October, 2016

Archives   IASbaba’s Daily Current Affairs – 11th October, 2016   INTERNATIONAL   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, Indian diaspora. Important International institutions   Developing regional cooperation in Bay of Bengal The South Asian subcontinent is looking beyond SAARC for a productive regional forum that is not constrained by Pakistan’s veto. Here comes in the Bay of Bengal region which provides an opportunity for a zone of regional cooperation where credits go to multiple recent developments The collapse of SAARC summit in Islamabad has made the consideration of alternatives an immediate imperative. PM Modi’s special interest in linking South and South East Asia and Bangladesh’s traditional commitment to regionalism is showing alignment to new formation between countries sharing Bay of Bengal waters. To support this development, Sri Lankan PM Ranil Wickremesinghe has been approval of Bay of Bengal regionalism. Sri Lankan boost In a series of recent speeches in Tokyo, Jakarta, Singapore and Delhi, Sri Lankan PM laid out an agenda for Sub regional cooperation- between Sri Lanka and south Indian states Transregional economic integration- among the South and South East Asian nations bordering the Bay of Bengal littoral. Sri Lanka and India’s five southern states together have a population of 272 million people and a combined GDP of over $500 billion. For Sri Lankan PM, if India and Sri Lanka work together, this economic zone can emerge as one of the world’s most dynamic. Meanwhile, Bangladesh has also integrated itself well with eastern subcontinent. In a recent visit to India, Sri Lankan PM called for a tripartite trade liberalisation agreement between Lanka, India and Singapore. It also aims for collaboration between these three countries for development of a port in Trincomalee on Sri Lanka’s eastern seaboard. Picture Credit: http://www.myseek.org/wp-content/uploads/2011/11/map.gif Rich history and potential of Bay of Bengal Bay of Bengal region has a rich history of maritime commerce across the Bay of Bengal between peninsular India, Sri Lanka and South East Asia. One of the first trading ventures along the Bay of Bengal was The Company of Merchants of London Trading into the East Indies more commonly referred to as British East India Company. Also, as it is centrally located in the region from the Middle East to the Philippine Sea and being in centre of two huge economic blocks, the SAARC and ASEAN, it has a strategic importance. Bay of Bengal could become Caribbean rival as a high-end tourist destination. There can be cruise liners sailing from Kochi to Singapore via Maldives, Sri Lanka, Andamans and Thailand. There is enormous possibilities for regional economic cooperation among the members of the BIMSTEC forum that brings five nations from South Asia — Bhutan, Bangladesh, India, Nepal and Sri Lanka — and two from South East Asia — Myanmar and Thailand — under one umbrella of international free trade around the Bay of Bengal. For India, BIMSTEC or Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation has been on top of mind. There also have been suggestions for including Indonesia, Malaysia and Singapore into the BIMSTEC forum. Even before SAARC crisis, India had decided to invite the leaders of the BIMSTEC to the outreach segment of the BRICS summit in Goa. Thus, now India has the chance to breathe in new life into BIMSTEC that had remained moribund since its formation two decades ago.   BBIN There was another regional forum which was formed by four contiguous states BBIN- Bangladesh, Bhutan, Nepal and India- after Pakistan’s reluctance to sign on to the South Asian connectivity agreements at the SAARC summit in Kathmandu in November 2014. It presaged the prospect of the Bay of Bengal emerging as a vehicle for regional cooperation. The BBIN constitutes a natural sub-region of the Subcontinent. Besides shared land borders, they all have a big stake in the Bay of Bengal. For the two landlocked Himalayan states, Bhutan and Nepal, the shortest sea access is to the Bay of Bengal and it runs through the two coastal states — Bangladesh and India. China has also shown considerable interest in this region as for parts of southwestern China too, the Bay of Bengal is the nearest sea. Also, China has promoted the idea of sub-regional collaboration among China, Myanmar, Bangladesh and India. Today, these countries are part of China’s OBOR initiative. Though India is wary of OBOR, especially the western corridor through Pakistan and the central corridor through Nepal, it is more open to engaging China on the eastern corridor. Conclusion The new hopes for Bay of Bengal ride on the fact that Lanka and Bangladesh have long been champions of regionalism. When India was strong about its self-imposed economic isolation in 1960s and early 1970s, Sri Lanka was eager to join the ASEAN institutions. It was Bangladesh which took lead in promoting the SAARC idea in 1980s. Today, it also hosts the secretariat for the BIMSTEC. Thus, Bangladesh and Sri Lanka, two of India’s neighbours cum partners in Bay of Bengal are raring to go forward in uniting the Bay of Bengal. India too now has the opportunity to demonstrate that it can do a lot better in the Bay of Bengal when Pakistan did not allow any such close cooperation between member countries in SAARC. China is another factor which India has to consider for pepping up its important role in strategically important Bay of Bengal. China is trying to make its room in Indian Ocean and thus India has to be equally aggressive in protecting its maritime interests in the region. PM Modi’s meeting with the leaders of Bay of Bengal in Goa during the BRICS provides a big opportunity to set a new agenda for regional cooperation under the BIMSTEC forum where dynamic issues such as coastal shipping, counter-terrorism, development of underwater resources in the Bay to protecting the marine environment can be undertaken. Connecting the dots: India has to aggressively maintain and develop its interest in two strategically important maritime regional organisations. Discuss in detail the organisations and how they can help India to establish itself as regionally strong power. SAARC might soon lose relevance owing to one neighbour who is supporting terrorism. What are India’s options to establish itself as a regional power and how should India develop its character as a regional power?   Related articles: India’s trade pacts in a changing world Two-speed regionalism BRICS 2016- Challenge to sustain the significance ENVIRONMENT   TOPIC: General Studies 3 Conservation, environmental pollution and degradation, environmental impact assessment 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, Indian diaspora. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.   Fight against climate change- Amending the Montreal Protocol at Kaigali In news: In first week of October 2016, the Paris agreement obtained the required number of ratifications and will become international law from November 4. More such initiatives are required to contain the disastrous effects of climate change The Paris agreement ratification has a great significance in the fight against climate change where it has set the goal of keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. Now, the eyes are on the annual climate change conference (CoP 22) that begins in Marrakech (Morocco) where countries will get down to finalise the rules and institutions that will govern implementation of Paris agreement. In another development, the International Civil Aviation Organisation (ICAO) carved out an agreement to curb the rise of emissions from international aviation after 2020. Though some countries including India did have reservations about it. This deal asks the countries to offset, voluntarily to begin with, any rise in their aviation emissions through activities like planting of trees or funding activities that reduce carbon emissions elsewhere. Though 191 member countries approved of it, as of now, only 65 countries have decided to join the programme that will initially run from 2020 to 2026. However, it has been considered a good beginning towards mitigating climate change pace. Montreal Protocol- Amendment in Kaigali, Rwanda   Picture Credit: http://image.shutterstock.com/z/stock-vector-rwanda-political-map-with-capital-kigali-national-borders-important-cities-rivers-and-lakes-233912998.jpg   To plug another hole of greenhouse gas emissions, countries had gathered in Kaigali to finalise an amendment to the Montreal Protocol to enable this 1989 ozone-protecting agreement to phase out the use of Hydrofluorocarbons, or HFCs. HFCs are a class of gases that are several thousand times more damaging than carbon dioxide. HFCs, used mainly in the coolant and refrigerant industry, are not ozone-depleting, and are hence not covered by the Montreal Protocol. They replaced Chlorofluorocarbons (CFCs), which the Montreal Protocol phased out because they were destroying the ozone layer. But, HFCs turned out to be very potent greenhouse gases, and unlike other GHGs that are being dealt with by the Paris Agreement, HFCs are sought to be eliminated through the Montreal Protocol as well. It is estimated that a phasing out of HFCs by 2050 will prevent a 0.5-degree rise in global temperatures by the end of this century. There is unanimity in deciding these targets as well as agreement that developed countries, which are both the bigger producers and bigger consumers of HFCs, have to begin phasing them out earlier.   What is on table? Differences exist in the details, and four proposals are on the table — put forward by India, the US (North America), European Union, and the Small Island Countries. India It wants that developing countries like itself to begin the phase-out only from 2031. It has promised to reduce their HFC production and consumption to 15% of what it would be in the ‘baseline year’ of 2028-30 (average of the figures in each of these years), by the year 2050. But, it wants the developed countries to begin the phase-out in 2016 itself, and completely eliminate the production and consumption of HFCs by 2035. USA and EU It wants developed countries to begin the phase-out from 2019, and reach just 15% of the baseline year (2011-13) by 2036. The EU wants the baseline year for developed countries to be 2015-16, and wants them to eliminate 85% of the baseline HFC production and consumption by 2034. Both the US and EU want developing countries to begin by 2019, or latest by 2021, and eliminate 85%-90% by 2046. There are supposed to be interim targets as well — the “phase-down schedule” — and those constitute further points of disagreement. Developing countries seek to give their industry adequate time to discover and adapt to new technologies that would enable them to use HFC substitutes. These countries are also seeking multilateral financing to support the shift to newer alternatives, want their industry to be given full conversion costs and also cost of a second conversion in cases where a transitional technology has to be deployed.   Way forward The Kigali meeting is expected to add momentum to the fight against climate change. That is why, despite differences, Kaigali is expected to deliver a positive outcome. India has valid points as representing the developing countries as they have to protect its domestic industries. That is the reason India wants their phase down to begin later. Once the HFC amendment is approved, the world will be left with just one more climate change hole to plug, that of emissions from international shipping. Like international aviation, international shipping emissions are not covered under the Paris Agreement because these emissions cannot be attributed to any specific country. International shipping accounts for7% of global GHGs, more than international aviation that contributes 1.9%. The sector has had a mandatory carbon dioxide reduction plan for individual ships since 2013. The demand now is to cap and curb the overall emissions from the entire sector. In late October 2016, member countries of the International Maritime Organisation are likely to establish a global carbon dioxide data collection system for ships — the first step in that direction. Connecting the dots: What is climate change and how is it affecting the world? Critically explain if developing countries are more affected by climate change effects or not. What do you understand by the principle of Common But Differentiated Responsibilities? How can India contribute towards mitigating climate change effect without harming its development prospects? Discuss.   Related articles: Mind Map Mind Map 2 Mind Map 3   MUST READ A New Framework Indian Express   So many complicities Indian Express   Shortcut to scholarship Indian Express   Nutrient paradox Indian Express   Perspective in politics Livemint   Public crippling of a key reform Livemint   Windfall gains boost India’s GDP growth Livemint   Learning from good government Livemint   The changing village in India Livemint   Changing role of the employer in pensions Livemint    

Oct 11, 2016 Daily Prelims CA Quiz

IASbaba Daily Current Affairs Quiz [Day 36]

Click here to get all the Tests– ArchivesQ.1) Consider the following statements about Janani Surkasha Yojana (JSY) It is a safe motherhood intervention under the National Rural Health Mission (NRHM) The scheme is for all states having institutional delivery of 25% or less It was launched by modifying the National Maternity Benefit Scheme (NMBS)Select the correct statements 1 and 2 1 and 3 2 and 3 All of the aboveQ.2) Recently India’s first International Arbitration centre was set up in New Delhi Gurgaon Mumbai None of the above Q.3) Recently Hubble Space Telescope (HST) has detected Great Balls of Fire (GBF) near a red giant. Consider the following statements Red giants are stars that are nearing the end of their fuel supplies and have begun to puff up and expand HST is a space telescope launched by NASA in collaboration with European Space AgencyWhich of the following statements is/are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2Q.4) Consider the following statements about National Heritage City Development and Augmentation Yojana (HRIDAY) It was launched by Ministry of Culture It is a central sector scheme which will be 100% funded by Government of IndiaWhich of the following statements is are correct? Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.5) Which of the following are correctly matched?            Festival                                                                 State Durga puja                                                         West Bengal Onam                                                                  Kerala Ugadi                                                                  PunjabSelect the code from below 1 only 1 and 2 2 and 3 All of the aboveDownload the Solution- Click hereAll the bestIASbaba

Oct 11, 2016 RSTV Video

The Big Picture - Indus Water Treaty: Can it become the Handle?

Archives     Indus Water Treaty: Can it become the Handle?   TOPIC: General Studies 2 India and its neighbourhood- relations. Effect of policies and politics of developed and developing countries on India's interests   Brief of Indus Water Treaty The Indus water treaty divided the use of rivers and canals between two countries. Pakistan obtained exclusive rights for the three western rivers- Indus, Jhelum and Chenab. India retained rights for three eastern rivers- Ravi, Beas and Satluj. http://4.bp.blogspot.com/_TlX8EZcNmlk/SPw80xHiehI/AAAAAAAAADk/-R5s-lMQTEQ/s1600/indus-water-treaty-a.gif Background The confrontation between India and Pakistan following the attack at Uri army base has resulted in various options being discussed as far as India is concerned. While there are people who want instant retaliation, for others the diplomatic option is better. The spokesperson of the ministry of external affairs made a statement which raised the issue of Indus water treaty. The statement hinted that the Indus water treaty can be used as an option to teach Pakistan a lesson. The genesis of the treaty lies in Pakistan’s absolute fear which is part genuine, part propaganda. It was in fear that if India builds dams on the rivers, Pakistan would be starved of water. Thus, in 1960, India entered into a treaty mediated by the World Bank in order to give Pakistan an assurance that it need not fear anything from India for water. This was done inspite of knowing the fact that this treaty was more beneficial to Pakistan as the western rivers have more water than the eastern rivers. When the treaty gave western rivers to India, India did not had any access to its waters except for only non-consumptive purposes. With this treaty, India hoped that Pakistan will feel more secure and therefore be less hostile towards India. However, this has never been realised. In India thus, there has been a feeling in the significant sections of public opinion, who know about the treaty, that it has not served its purpose and has been far too generous. In J&K, the treaty is very unpopular as people feel that they have been riddled out of their fair share of water. Instead of using the river water that flows through their state, they have to rely on water which flow majorly through Punjab and Haryana. The treaty has been so far upheld because India never raised it in case of any hostile bilateral relations between two nations. Also, India takes its treaties seriously. After 1972, India did not want third party mediation since the dispute mechanism clauses of the treaty provided that ultimately there will be representatives assigned by World Bank. And because of India’s such goodwill gesture, Pakistan has taken undue advantage of it and objected every project that India has tried to be built on western rivers even if they are for non-consumptive purposes. What is creating fear in Pakistan now? Himalayan rivers carry lot of silt. At present, Pakistan’s main dam is Mangla dam. 30% of dam is silted and thereafter there is no place for storage. Kalabagh dam was planned between Sindh and Punjab border but stuck in interstate disputes. Thus, there are looming water crisis. Adding to the fire, the jihadis are spreading rumours that India has some kind of tap which they will shut and they all will be ruined because of non-availability of water. Thus, it is a measure to whip up the sentiments and create sense of fear and have succeeded to some extent. Pakistan gets 135 million acre (ma) water whereas it does not have any plans to use not more than 105 ma. About 40 ma of water goes to sea in Pakistan. As against this, Punjab and Haryana need about 5-10 ma more water. So, India can renegotiate to divert from western to eastern rivers to solve the problems. But this problem has to be handled diplomatically and not by terminating a treaty. India has never mentioned Indus treaty as a response matter to any crisis. The idea that it can be used as a response measure to such a crisis is yet to be evaluated. Terminating a treaty does not hold much significance as there are no dams on Indus, Chenab or Jhelum to stop the water flow. Building dams and other reservoirs takes years to construct and operate. Hence, the water will anyway flow to Pakistan. But, as a long term measure, India has to renegotiate the treaty with fresh terms, where India gets some access to western river waters. Why has India not utilised western river waters? Because, every time India started a project, the Pakistanis objected and put a stop to it. The dispute mechanism of the treaty was bizarre. It included third party would be chief justice of USA Supreme Court, Lord chief justice of UK as they held great importance during those times. Now that there is no third party involvement, India had to solve all the issues bilaterally. Hence, India could not use the water at all, even for non-consumptive purposes which the treaty provided. If India wants, it had to satisfy the Pakistanis, but they were never satisfied despite of endless rounds of discussion between Indus water commissioners. (Recent disputes over Baglihar and Kishenganga where Pakistan objected towards it.) Should the Indus Treaty be re-considered? Pakistan has mismanaged its waters and despite all that, the treaty has been upheld by India. Still Pakistan accuses that India has been dubious on waters. But, if Indus Water treaty is being discussed as a response mechanism to Uri attack, it has to be part of well-thought out policy and strategy. It can’t be a kneejerk reaction and pandering to public opinion. India is entitled to respond to the options in the background of the attacks and India does have some kind of strategic advantage with respect to Indus water treaty. But, India would not compromise on the quality and quantity of water as it is a functioning democracy with democratic and human ideals. However, this doesn’t close the option of re-negotiating the treaty. J&K has had grievances and they were not addressed adequately, thus, it might be an opportunity to do it. But, it might open the Pandora’s box. But, last time World Bank mediated, but these times certainly don’t present the platform where anything can be negotiated with Pakistan. In 1960, it was a very simple and well-thought treaty. Pakistan received 80% of the water. It was the time when the natural flow teri dominated the field where the lower riparian had an upper hand. After 55 years, the treaty has created problem in Indian essence. India’s dependence on eastern rivers has not been sufficient to meet all requirements. Conclusion- Will there be Indus treaty abrogation? Most likely not. This is the government’s way of telling Pakistan that it is tired of its proxy wars. Now, the ‘water’ has crossed its limit and it should not expect any sympathies. Anyway, the mention of Indus water treaty was not the suo motu statement of MEA spokesperson but was responding to a question. All treaties are based on set of objectives which require goodwill and good faith. Treaties have been abrogated by the countries in the past even for the treaties with timeline. In contrast, the Indus water treaty does not even provide specific time frame. If India thinks that Pakistan is an enemy state and if Pakistan’s actions over last 56 years have demonstrated it conclusively, then this can be part of package which teaches Pakistan a lesson on how India is capable of retaliating in manner it wants. Connecting the dots: Water is lifeline of any nation. If India brings up Indus water treaty, Pakistan will feel threatened and this is what India aims at. Will this strategy be successful to tell Pakistan to mend its ways? Explain.   Related articles: Securing the Indus Treaty