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IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs [Prelims + Mains Focus] - 30th January 2018

IASbaba's Daily Current Affairs (Prelims + Mains Focus)- 30th January 2018 Archives (PRELIMS+MAINS FOCUS) 10 ‘champion’ sectors identified to boost job generation Part of: Mains GS Paper III- Inclusive development Key pointers: In an effort to boost job generation to double-digit level, the government has identified 10 ‘champion’ sectors that will drive growth under the ‘Make in India’ version 2.0, as per the Economic Survey 2017-18. These include capital goods, auto and auto components, defence and aerospace, biotechnology, pharmaceuticals and medical devices, chemicals, electronic system, design and manufacturing (ESDM), leather and footwear, textiles and apparels, food processing, gems and jewellery, new and renewable energy, construction, shipping and railways. Employment generation, including finding good jobs for the young and burgeoning workforces, especially for women, will be one of the three key areas in the medium-term. Promoting “inclusive employment” in order to generate jobs for daily wage labourers. Steps have already been taken in sectors such as steel, apparel, leather and power to address specific challenges associated with each of them. Article link: Click here Quota for the disabled Part of: Mains GS Paper II- Government interventions in important sectors Key pointers: People with autism, mental illnesses, intellectual disability and victims of acid attacks will now get quota in central government jobs. In case of direct recruitment, four per cent of the total number of vacancies, up from the existing three per cent, in groups A, B and C shall be reserved for people with benchmark disabilities. Benchmark disability means a person with not less than forty per cent of a specified disability. The move to enhance reservation quota for those with learning disability and acid attack victims comes after passage of the Rights of Persons with Disabilities Act, 2016, and the notification of relevant rules in this regard. Under the new rules, all government organisations have been asked to appoint 'grievance redressal officers' to look into complaints. Any person aggrieved with any matter relating to discrimination in employment against any person with disability may file a complaint with the grievance redressal officer of the respective government establishment. Article link: Click here (MAINS FOCUS) NATIONAL TOPIC: General Studies 1: Social empowerment 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 related to planning, mobilization of resources, growth, development and employment. Formalization of Indian Economy Background: The new Economic Survey written by the team of finance ministry economists led by Arvind Subramanian provides compelling evidence of how the Indian economy is becoming more formalized. The reason this shift is important is not just because of the possibility of higher tax revenues for the government to spend; it is also about the social contract between citizens and the state. Key shifts: There are four key shifts that are mentioned in the Economic Survey 2017-18. The introduction of the goods and services tax (GST) has brought more firms into the tax net. The number of enterprises paying indirect taxes has gone up by 3.4 million, an increase of 50%. Only around a quarter of the 240 million Indian working outside farms file their income tax returns. Demonetization done in November 2016 seems to have led to a statistically significant increase in the number of new income tax filers. The Indian workforce is more formalized than most people believed till recently. Nearly a third of the non-farm Indian workforce of 240 million has some social security coverage. And more than half of the non-farm workforce is employed in firms that now pay taxes. Indians are putting a greater proportion of their savings in the formal financial sector. Bank deposits swelled after November 2016. The booming stock market has also made financial savings through mutual funds more attractive compared to gold or real estate. These four shifts—more firms paying indirect taxes, more individual filing income tax returns, a big increase in the proportion of formal jobs and the increase in savings in the formal financial sector—can have profound effects on the Indian economy if they are sustained. Methodological innovations: Much of the data offered by the finance ministry comes from the GST system, rather than from surveys. The mining of GST data is part of the welcome introduction of Big Data into Indian policy discourse. The Economic Survey released a year ago had similarly used Big Data and satellite images to estimate issues as diverse as interstate migration to the extent of Indian urbanization. The finance ministry economists deserve kudos for their methodological innovations. What does such an overdue shift to formal economic activity potentially mean? The Indian nation state sits on a very weak fiscal base. It is neither able to invest in national security or provide public goods or create a social security system without running up destabilizing fiscal deficits. India has a tax-to-GDP ratio that is broadly similar to what other countries had at a similar stage of development. The question is whether that ratio can be increased as India gets richer, which is difficult unless more economic activity moves into the formal sectors. This is possible only once the economy is formalised. More direct tax payments by individuals as well as enterprises will not only create fiscal space for lower GST rates but also provide incentives for citizens to demand better governance. Conclusion: The process of formalization needs to be accelerated further. Connecting the dots: The Economic Survey highlights how Indian economy is undergoing formalization. Discuss how this change can be acclerated further. NATIONAL TOPIC: General Studies 2: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies. Statutory, regulatory and various quasi-judicial bodies Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Section 124-A of IPC: To repeal or no to? Introduction: Section 124-A in the Indian Penal Code, named 'Sedition', says 'Whoever, by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the Government established by law in India' shall be punished with life imprisonment  History of Sedition law: The law was originally drafted by Thomas Macaulay It was not a part of IPC in the 1860s and was even dropped from the law. It was introduced in the IPC in the year 1870 Many Indian freedom fighters, including Mahatma Gandhi and Bal Gangadhar Tilak, were charged with sedition during freedom struggle While the constitution was in making: Part III of the Constitution guarantees certain fundamental rights to citizens and non-citizens. No fundamental right is absolute. Freedom of speech and expression guaranteed by Article 19(1)(a) can be reasonably restricted on the grounds specified in Article 19(2). In the Draft Constitution, one of the heads of the restrictions proposed on freedom of speech and expression was “sedition”. K M Munshi opposed the inclusion of “sedition” in the Draft Constitution as a restriction on freedom of speech and expression. During the debates in the Constituent Assembly, in view of the bitter experience of the arbitrary application of the sedition law by the colonial regime against nationalist leaders, Jawaharlal Nehru amongst others, agreed with Munshi and deliberately omitted “sedition” as one of the permissible grounds of restriction under Article 19(2). However, sedition remained a criminal offence in the IPC Section 124-A and provides inter alia for the sentence of life imprisonment and fine upon conviction. Supreme Court judgements: Kedernath vs. State of Bihar, 1962- The Court ruled that mere criticism of the government or comments on the administration — however vigorous, pungent or ill-informed — was not sedition and that incitement to violence is the essential ingredient of that offence. In 1995- Certain persons were sought to be prosecuted for sedition for shouting slogans like Khalistan Zindabad and raj karega khalsa. The SC held that the casual raising of such slogans a couple of times by the individuals did not tantamount to sedition and therefore Section 124-A could not be invoked. Nazir Khan vs. State of Delhi, 2003- The SC made the following significant observations: “It is the fundamental right of every citizen to have his own political theories and ideas and to propagate them and work for their establishment so long as he does not seek to do so by force and violence or contravene any provision of law”. What does this mean? The legal position which emerges is that merely shouting slogans like Pakistan or Khalistan zindabad, however deplorable, per se would not attract Section 124-A which deals with sedition. Criticism of the SC judgment upholding the conviction of Afzal Guru also would not attract Section 124-A. However if a person has said “Hindustan murdabad”, or that the Indian state is tyrannical and it is necessary to overthrow it, that could possibly amount to sedition.  Issue: Section 124-A has often been misused by ill-informed and over enthusiastic prosecuting agencies who are against any criticism of the government. Kanhaiya Kumar, Patidar leader Hardik Patel were slapped with sedition charges in past. In the year 2014, some of the Kashmiri students were charged with sedition for supporting Pakistan in a cricket match between India and Pakistan. Repeal or not to repeal: The remedy does not lie in repealing Section 124-A. As there is no statutory provision which cannot be misused. Misuse of Section 124-A in some cases, however regrettable, is no ground for its deletion. The provision properly interpreted and correctly applied protects and preserves the integrity of the Indian state and is also a deterrent for persons who are minded to commit acts of incitement to violence and acts which cause disturbance of public order. Connecting the dots: Section-124A has been one of the most misused legal provision. Discuss the historical background and issues associate with it. Should t be repealed or not? Analyze. MUST READ A path to the executive power The Hindu A pivot in Asia The Hindu Return of the politicals Indian Express Prescription for the doctor Indian Express The Indian economy is getting formalised Livemint

RSTV Video

RSTV- The Big Picture : Rajya Sabha Passes Bills to Repeal Outdated Laws

Rajya Sabha Passes Bills to Repeal Outdated Laws Archives  TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. In news: The Parliament passed two bills to repeal 245 obsolete laws including a 158 year old Calcutta Pilot Act 1859 and prevention of sedition meeting 1911. This exercise is aimed at bringing reforms in the legal system by repealing all obsolete laws. Some of the other laws are Hackney Carriage Act, 1879 which was legislated for the regulation and control of hackney carriages, Dramatic Performance Act, 1876 when theatre was being used a medium of protest against the British rule. The government had set up 2 member panel to look up to repeal of archaic laws. Such exercise was done by parliament in 1950 when 1029 old laws were repealed. In 2004, 272 old laws were repealed and between 2005-14, 1031 laws were repealed. Thus, more laws have been repealed than enacted since independence. There has been an elaborate exercises by government, several commissions set up and also 20th law commission of India did this exercise- LESS- Legal Enactments Simplification process wherein its objective is to prepare various reports on the laws, rules, regulations which need to be repealed or amended. Reasons for repeal In the Indian society, the rule of law governs the society. So certain laws are obsolete with passing of time. Many laws being repealed were created by British parliament. Many acts don’t have relevance in the present time and they become hindrance to normal course of action. Passage of time or societal changes or value system. These laws require continuous updation with passage of time. For eg. Criminalization of gay sex was imposed by British in India. Now, Britain itself has done away with it and de-criminalized it. It is the time to change in India too as now SC has ordered for right to privacy and this is something that is a personal choice. The laws have been replaced by other laws and the old ones have not yet been repealed. There are judgements delivered by SC and the judgement overlaps the existing law. Thus the law is no more needed. There can be laws which are not in tune with international treaties and conventions signed by India. The cost of regulating some laws or having the laws is more than the benefit of having that law. Benefits of archaic laws repealed There is a savings clause in the bill. It says that in all the existing cases, it will not have any bearing. For future cases, since the law ceases to exist, no future litigations can be started on basis of these laws. The entire process of law making and the way in which laws are administered, it has huge bearing on governance because unnecessarily, such huge number of laws are on statute books, somehow it will be invoked through litigation and governance will be hampered. This will also have a bearing on economy and business side. It is not about general laws. It is about the focus on business laws. There are many laws which can be consolidated and re-enacted as one law. This will help administration of business more efficiently. Conclusion The laws cannot be understood by the common man. But if the laws are simple and limited, it is easier for common man to understand and follow it. On the larger part, across the globe this exercise is taken and periodically- called as cleaning of statue books. But this cleaning of statues should come in institutional manner. Unless the entire process is institutionalized, the kind of problems faced till now shall continue. The appropriation acts have life of 1-2 years. It can be provided in the bill itself that it will cease to exit after particular time period. State government laws also need a clean up act along with central government laws. The tough part of the existing laws is to update them as per changing times and needs and for that, it is essential to remove the outdated law so as to bring in administrative efficiency as well as it doesn’t conflict with the requisite law. Connecting the dots: Analyse the importance of updated laws and why outdated laws must be repealed.

Daily Prelims CA Quiz

UPSC Quiz- 2018 : IASbaba’s Daily Current Affairs Quiz [Day 132]

UPSC Quiz- 2018 : IASbaba’s Daily Current Affairs Quiz [Day 132] Archives Q.1) Indrajit Gupta Committee is concerned with State funding of elections Time limit for bye-elections Amendment of the anti-defection law to restrict disqualification Minimum age of voting to be 18 years Q.2) The term 'Regional Comprehensive Economic Partnership' often appears in the news in the context of the affairs of a group of countries known as G20 ASEAN SCO SAARC Q.3) 'European stability mechanism', is an Agency created by EU to deal with the impact of millions of refugees arriving from Middle East Agency of EU that provides financial assistances to euro zones countries Agencies of EU to deal with all the bilateral and multi-lateral agreements on trade Agency of EU to deal with the conflicts arising among the member countries Q.4) Consider the following statements about ‘Project Sunrise’ It is a project to tackle the increasing HIV prevalence It is focused on North Eastern States of India Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) Intellectual property Index is released by WIPO WEF IMF None of the above To Download the Solution – Click here All the Best  IASbaba

IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs [Prelims + Mains Focus] - 29th January 2018

IASbaba's Daily Current Affairs (Prelims + Mains Focus)- 29th January 2018 Archives (PRELIMS+MAINS FOCUS) ‘Stree Swabhiman’ initiative  Part of: Mains GS Paper I- Women empowerment Key pointers: ‘Stree Swabhiman’ aims to create a sustainable model for providing adolescent girls and women an access to affordable sanitary products by leveraging CSCs. An initiative by CSC on women’s health and hygiene. Under the ‘Stree Swabhiman’ project, sanitary napkin micro manufacturing units are being set up at CSCs across India, particularly those operated by women entrepreneurs. Besides promoting women’s health and hygiene, the initiative will also provide employment opportunities to women in rural communities as each facility will employ 8-10 women. Village Level Entrepreneurs: Over 46,500 women are working as VLEs through the CSCs across the country. They are offering services like Aadhaar, banking, insurance and promoting digital literacy in rural India. Village entrepreneurs operating Common Services Centers (CSCs) have the power to transform India by empowering locals and creating employment opportunities in rural India, IT Minister Ravi Shankar Prasad said. “Women have played a crucial role as change agents under the Digital India programme,” the release added. Article link: Click here Jan Aushadhi Scheme Part of: Mains GS Paper II- Government interventions Key pointers: Prime Minister Narendra Modi said the medicines that are sold in government-run medical shops are 50-90 per cent cheaper compared to the branded ones and they strictly adhere to the international norms prescribed by the World Health Organization (WHO). Medical stores called ‘Jan Aushadhi Kendras’ are being run under the government’s ‘Pradhan Mantri Jan Aushadhi Yojana’. The motive behind this scheme is to make healthcare affordable and encouraging Ease of Living. Over 3,000 such shops are operational across the country. It has led not only to availability of cheaper medicines, but also new employment opportunities for individual entrepreneurs. Article link: Click here (MAINS FOCUS) ECONOMY TOPIC: General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Making Indian Banking Sector Dynamic Introduction: The ailing banking sector of India requires immediate attention. A robust and well-capitalized banking sector supports capital formation and economic activity by facilitating intermediation of resources between savers and borrowers. India saves close to 30% of its annual output. Given the importance of the banking sector in the financial system, it has a crucial role to play in channelling these savings to productive investments. The current banking sector landscape: The Indian banking sector is dominated by public sector banks (PSBs) with a market share of roughly 70% of total banking assets. There has been little dynamism in the banking sector in recent decades. Since 1991, only 15 licences have been issued to universal banks, a relatively modest number for a fast-growing economy in which the banking system remains an important source of corporate financing. PSBs remain the biggest contributors to the large and rising stock of non-performing assets (NPAs), with a share of approximately 90% of the total stock. Poor health of PSBs: Rising NPAs have put a strain on the health of PSBs, reflected in their declining profitability ratios which turned negative in 2016 for the first time in a decade. The deteriorating health of PSBs has adversely affected their ability to lend. Within the industrial sector, credit to medium enterprises continues to decline while growth in credit to large enterprises is barely positive. It will be difficult for the banking system to support high growth, especially in the industrial sector, if the growth in NPAs is not checked. What needs to be done? The government has recognized the urgency for broad-ranging banking reforms, but effective implementation and a multi-pronged approach are essential. There has been some progress on improving the institutional and regulatory frameworks needed to support a strong banking system. For instance, the Insolvency and Bankruptcy Code has improved the legal landscape and should help in speedier recovery of bad loans. The challenge is to make sure it is implemented effectively. Moving towards a dynamic banking sector: India should move towards a more dynamic banking sector that fosters innovation and checks the inefficiencies created by a lack of entry. Productive reallocation of capital- inefficient banks can be driven out of the system (or merged with other banks) and new banks can enter. The policy of “on-tap” licensing of banks is a promising step in the direction of increasing competition in the banking sector. However, some of the conditions, such as initial capital requirements and priority sector lending targets, seem onerous and may fail to attract individual promoters. There should be a gradual push towards greater private ownership of ailing PSBs. The argument in favour of PSBs is that they can penetrate unbanked areas where private sector banks do not find it profitable to operate. However, private sector banks should be able to leverage the model of banking correspondents to provide doorstep banking services in rural areas at a reduced cost. Hence, it is time to re-evaluate the benefits of having a banking system dominated by public sector banks and the benefits that greater private ownership can bring. Increasing the resilience of the banking sector to losses: It is impossible to eliminate risk completely from any banking system. A sound system should, however, be able to minimize risk. Lending standards should be strengthened for lending to sensitive sectors and bigger projects. In addition, there should be enough provisions for expected losses. Banks need to have better mechanisms to evaluate the viability of projects when making lending decisions. To deal with ex-post losses, there should be a vibrant market for stressed assets so that banks are able to sell their NPAs at a fair price. This can be achieved by increasing participation in the market for stressed assets. Greater competition will lead to a competitive bidding process and help in better price discovery, potentially reducing the losses suffered by banks owing to haircuts on sales of stressed assets. Other reforms: Recapitalization of PSBs is important, but should be done in tandem with other reforms, including- Corporate governance reforms to make the incentive structure of the banks consistent with productive allocation of credit. Improved financial supervision so that the signs of stress on banks’ books can be identified early. Development of a vibrant corporate debt market to avoid concentration of credit risk in the banking system. Improved debt recovery mechanisms to ensure efficient and speedy recovery of assets. Conclusion: Without a strong banking system, the government’s vision of making India a $5 trillion economy by 2025 could remain a pipe dream. Many reforms are being taken to reform banking sector, what is required is effective implementation. Connecting the dots: Given the importance of the banking sector in the financial system, it is required that necessary reforms are undertaken making the sector competitive and dynamic. Discuss. NATIONAL TOPIC: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Salient features of the Representation of People’s Act. State funding of elections  Background: Indian elections are the world’s biggest exercise in democracy but also among the most expensive. Parties and candidates need large sums of money for voter mobilisation, advertising, consulting, transport, propaganda and printing of campaign materials to reach voters in constituencies. Corporate donations constitute the main source of election funding in India which is mainly the black money, with business and corporate donations to political parties commonly taking this form. The public disclosure system that exists is limited. Best practices elsewhere: India’s privately funded election campaign stands in contrast to the trend in most countries. Partial or full public funding or transparent regulation and financial accountability of political finance exists in many countries as in the U.S. Issues: Corruption in election finance and the flawed party funding system drive political parties to misuse government’s discretionary powers to raise funds for election campaigns. The combined effect is the absence of a level playing field which has reduced the effectiveness of our democracy. Absence of transparency in funding- Even 70 years after Independence the country had not been able to evolve a transparent method of funding political parties which is vital to the system of free and fair elections. Issues with electoral bonds: Anybody can buy electoral bonds in the form of bearer bonds and donate it anonymously to a political party of their choice. All donations given to a party will be accounted for in the balance sheets but without exposing the donor details to the public. Donors continue to prize anonymity as they fear disclosure could invite adverse consequences from political opponents. As a result, the Election Commission (EC), the Income Tax department and the voter would remain in the dark about it. Bonds will allow corporate houses to make anonymous donations through banking channels to the party of their choice. This would lead to further opacity in the funding process and further limit oversight and accountability. The bonds scheme imposes no restrictions on the quantum of corporate donations. Consequently, electoral bonds cannot address the problems that arise from the corporate control over politics and corporate capture of government policies and decisions. Electoral bonds will result in unlimited and undeclared funds going to certain political parties which will be shielded from public scrutiny as the balance sheets will not show which party has been the beneficiary of this largesse. Far from reducing the large-scale corporate funding of elections, the introduction of electoral bonds does not even address this issue. Anonymity is perhaps one of the biggest threats to our democracy today; it is the very wellspring of institutionalized corruption. Three steps back: Lifting of the maximum limit of 7.5% on the proportion of the profits a company can donate to a political party, thus opening up the possibility of shell companies being set up specifically to fund parties. Amendment of the Foreign Contribution (Regulation) Act (FCRA) opening the floodgates of foreign funding to political parties, especially those which have a foreign support base. The refusal of political parties to come under the RTI Act in order to conceal their sources of funding. Ill-Consequences: The above three things will end up strengthening the business-politics nexus. It goes against the position taken by various electoral reform committees that the existing pattern of political funding encourages lobbying and capture of the government by big donors. Far from making the funding process transparent, the bond scheme could provide a backdoor to corporates and other lobbies for shaping public policy to benefit their interests. There is thus a legitimate fear that policy decisions of political parties and politicians after being elected may be biased in favour of groups that fund them. Moreover, these bonds are likely to reverse the small steps towards transparency of political finance that came as a result of RTI-driven public disclosure of income tax returns of political parties arguing that these disclosures were a matter of public interest and should be available to citizens. Proposed amendments to the Income Tax Act and the Reserve Bank of India (RBI) Act will exempt parties from keeping records of donations made through bonds. The decision to reduce cash contributions from Rs. 20,000 to Rs. 2,000 is a step in the right direction, but the net effect is debatable, since it could prompt parties to take smaller cash donations, and therefore not declare their source. The Association for Democratic Reforms found that nearly 70% of party funding over an 11-year period came from unknown sources; nearly Rs. 7,900 crore donations came from unknown sources in 2015-2016. Electoral bonds will not change this. Reducing the high cost of elections: Elections that work well are essential for democracy; conversely, money power can corrode the entire process. A major concern associated with the high cost of elections is that it prevents political parties and candidates with modest financial resources from being competitive in elections. A number of government committees have outlined reform proposals to contain the negative effects of the high cost of elections. These include strong disclosure norms, strict statutory limits on election expenses and ceiling on corporate donations to political parties. The rules to limit and restrict the campaign expenditure of parties are largely inoperative because it is easy to circumvent them. Solution: State funding of elections (in various forms) is a potential solution to this problem. The Indrajit Gupta Committee on State Funding of Elections had endorsed partial state funding of recognised political parties and their candidates in elections way in 1998. The government needs to show political will to have a discussion on state funding of elections. The mechanics of this process need to be carefully worked out to establish the allocation of money to national parties, State parties and independent candidates, and to check candidate’s own expenditure over and above that which is provided by the state. Conclusion: A formula that is both efficient and equitable can be formulated based on the experiences of other countries which have state funding of elections. This is required to ensure that democracy works for everyone and not just for the wealthy few. Connecting the dots: Indian elections are the world’s biggest exercise in democracy but also, among the most expensive. Discuss the issues. How electoral bonds falls short to solve the issue. What should be the way ahead. MUST READ A vote for state funding The Hindu Rebuilding our cities The Hindu Red alert on the green index The Hindu The conflict between equity and efficiency Livemint 

RSTV Video

RSTV- The Big Picture : The NPA Problem

The NPA Problem Archives TOPIC: General Studies 2 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. In news: At ratio of 9.85%, India has the highest level of NPAs among the BRICS countries and is ranked 5th in the countries with highest NPA level. According to the official figures, the gross NPA of PSBs and private sector banks is 7.34 lakh crore and 1.38 lakh crore rupees each. Where are NPAs? RBI’s financial stability report names the basic metal and cement industries as most indebted with construction, infrastructure and automobile industry also accounting for sizeable chunks of banks’ NPAs. Recovery of these NPAs is also declining steadily over past 10 years due to rising bad loans, shrinking profitability and weak recovery of return of loans necessitated the need for higher capital infusion in PSBs. To mitigate this, the government has already announced 2.11 lakh crore of re-capitalisation funds. Reasons for problems in banking sector Asset quality review unearthed the problem of subdued NPAs. These NPAs were hidden in the bank’s balance sheet but were not reflected properly. Hence the NPAs were being accumulated over the years. The rate of recovery is changing. In 2009, it was high as 60% and now it has come down to 20%. This means that the problem has become worse. So, apart from legacy problem, it is something which has worsened over past couple of years. Non-resolution of issue CDR, SDR, S4A, 5-24 schemes were just deferring the NPA issue. It has to be recognized that the underlined NPA problems are also economic. The country has many companies which are facing large number of demand shortages and under capacity utilization. The greatest problem is decline in fixed investments that has taken place in 4-5 years. However, within this framework, there are differences too where many companies are doing well. Thus, people who have got the funds are not necessarily competent enough to run the company as during good times, everybody was interested in investing in infrastructure despite not having competence and knowledge in that area. This is also a reason why NPAs are at such high levels. How good is the bank in risk analysis of lending? How good is the risk analysis system internally? These were the key How to reduce NPAs? The solution will lie at economy growing at a fast pace. Much of the bad debt has arisen because of business cycle. It has become a vicious cycle. For economy to turnaround, the banks have to lend and bring investments which the economy requires. But as there is a shortage of capital in the banking industry, there will be hesitation in banks to fund the large products. As of now the bankers today are financing the retail sectors which is not good. The banks should have sensible system of risk analysis. Also, there is need for better private bond market where not banks finance it but they are issued publicly. Insolvency and bankruptcy code is going to help fighting the NPAs. But there is no short term solution to the NPAs. The re-capitalisation should be effectively utilized so that in next 2 years, it will help banks in lending without injuring the balance sheet. Connecting the dots: ‘NPAs are caused only due to economic slowdown’. Do you agree? Give reasons.

Motivational Articles

Creative Guidance – Negative Criticism – Inspirational & Educative Articles

Negative Criticism: Most people fail not because of their lack of talents or missed opportunities; they fail because they were unable to handle negative criticism of people around them. There is an unusual destructive quality to negative criticism, it can ruin dreams and shatter hopes. Very few people understand the impact of negative criticism. Negative criticism, especially during the early growing years, can destroy the most important faculties of human potential. The most important process of growing up is moving from ignorance to understanding. To get to an understanding of oneself and ones abilities takes considerable time and effort. During this learning process the best things one can receive are constructive feedback, honest opinions and abundant encouragement. Similarly the worst things one can receive during this growing period are constant criticism, negative feedbacks, discouragements and derogatory remarks. Nobody who is interested in the growth of an individual should indulge in negative criticism and insults. Nothing else destroys an individual’s morale than such types of negativity. The human faculty flourishes on its own when it is provided the right conditions to grow. If you want to produce a flower, all you have to do is plant the seed in fertile ground, nourish it with water and wait. You cannot force the seed to germinate and produce the flower. Patience is one of the key ingredients of nourishment, without this all other efforts are in vain. If someone is not willing to be patient with you, then they are against your growth. If you want to be guided by someone, be guided by those who display this quality of patience in abundance. If you want to guide someone, develop patience before anything else. It is far better to walk slowly in the right direction, than to run in the wrong direction. Almost all forms of negative criticism have their roots in impatience. If you are not willing to wait then you will try too many things to eventually ruin the natural unfolding of your potential. Patience is not just the quite time between two actions; it is also the time for your mind to assimilate and understand what is happening around you. True growth happens only during these quiet moments. To know the limitations of your mind and body and then aligning your activities accordingly will help you to stay focused and avoid unnecessary negative criticism from people around you. Learning is an enjoyable creative experience. You have to pick one learning process at a time and enjoy the experience. You cannot tune in to 5 radio stations at the same time and expect to enjoy music, you will only go mad.   “The articles are a copyright of The Ahamo Movement and IASBABA.”

IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs [Prelims + Mains Focus] - 27th January 2018

IASbaba's Daily Current Affairs (Prelims + Mains Focus)- 27th January 2018 Archives (PRELIMS+MAINS FOCUS) Global Centre for Cybersecurity  Part of: Mains GS Paper II- Issues related to cybersecurity Key pointers: In a bid to safeguard the world from hackers and growing data breaches — especially from nation-states — the World Economic Forum (WEF) has announced a new Global Centre for Cybersecurity. Headquartered in Geneva, the centre will become operational from March. The centre will help bring all the stakeholders together in ensuring cybersecuriy. Cyber breaches recorded by businesses are on the rise. In the last five years, these have almost doubled to an average of 130 breaches per business in 2017. As a borderless problem, urgent action is needed to create a safe operating environment for new technologies like Artificial Intelligence, robotics, drones, self-driving cars and the Internet of Things (IoT), the WEF said. The global centre will be an excellent opportunity to safeguard verticals like automotive and health care where wireless connectivity is the key. Article link: Click here Delhi Declaration Part of: Mains GS Paper II- International cooperation Counter-terrorism was discussed on the sidelines of the ASEAN-India Commemorative Summit held to celebrate the 25th anniversary of the establishment of sectoral dialogue between two sides. Key pointers: A comprehensive statement targeting terrorism and agreed to uphold freedom in the maritime domain. Focusing on the presence of the Islamic State and other forms of radicalism in the region, a joint statement, titled Delhi Declaration, was issued after the plenary session. It supported a common approach to counter terrorism. Itsought a comprehensive approach to combat terrorism through close cooperation by disrupting and countering terrorists, terrorist groups and networks, including by countering cross border movement of terrorists and foreign terrorist fighters and misuse of Internet including social media by terror entities. Article link: Click here (MAINS FOCUS) NATIONAL TOPIC: General Studies 1: Urbanization, problems and remedies General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General Studies 3: Conservation, environmental pollution and degradation, environmental impact assessment Clean mobility in India Background: The year 2017 turned out to be a landmark one for the idea of clean mobility in India. The Government announced a 2030 timeline to stop sale of fossil fuel-powered vehicles in favour of electric vehicles. The Supreme Court put on hold the sale of vehicles running on BS-III emission standards. Transport continues to be a major contributor to greenhouse gas emissions, and health experts have long been underlining its impact on air quality. Transport activity will continue to grow, making it important to phase-in a mobility system that is clean, sustainable and health-friendly. Policy measures: Policy measures must include major incentives, not just for clean energy transport providers but also for commuters. At the same time the Government must expand its vision to include a larger bunch of green transport options. Budget 2018 mustincentivise R&D in electric vehicles; announce schemes to improve public transport in polluted cities; and provide the necessary push towards building sustainable infrastructure for cycle users. Key focus areas: Long-term support to electric vehicle manufacturers: Announcing a timeline is not enough. The Government must also look at following- Incentivising private companies to invest more in R&D. The possibility of offering tax breaks to manufacturing units that produce electric vehicles. Creating ‘special zones’ for such plants is another lucrative option. The UK is putting in place a £400 million Charging Investment Infrastructure Fund for this, comprising a £200 million investment by the government matched by an equal investment by the private sector. The Indian government must consider a similar exercise. Augmenting infrastructure: The Government recently announced thatRs. 7 lakh crore worth of roads and highways will be constructed. Budget 2018 should fast-track these projects. Better roads will have a multiplier effect on several sectors. The infrastructural boost must also include a thrust on making the country EV-friendly. For instance, Europe has stipulated regulations, requiring 10 per cent of parking spaces in new buildings to have recharging facilities by 2023. Every new or refurbished house in will also need to be equipped with an EV recharging point. The Budget must set out plans to partner private players for the purpose of putting in place charging stations. Rewarding clean commuters : Countries like Belgium, Luxembourg and France are actually paying their citizens for cycling to work. The mode of rewards includes cycling reimbursements based on kilometres cycled, income tax breaks for buying bikes or mobility vouchers. In another interesting global example, Scotland offers interest-free loans to buyers of electric cars, in a bid to bring about a mass change in consumer behaviour. Fiscal incentives can also be considered for major Indian cities to encourage people to turn to clean mobility options. Giving cycling its due in the urban infrastructure: A study of bus commuters in Delhi found that around 7 per cent of commuters had total trip lengths of less than 5 km. Similarly, another study found that as many as 80 per cent of bus commuters owned cycles but very few of them used them to reach bus stops; they walked or hired a short distance commute vehicle. These commuters are an important group of potential cyclists, and can actively take to cycling if provided safe riding lanes and parking spaces. Countries like Netherlands and Denmark have championed the cause cycling by making it safe and comfortable. The urban infrastructure in these countries gives priority to cyclists through measures like dedicated cycling lanes, extensive parking for bicycles and integration with public transport. In India, bicycles can become an important mode of last-mile connectivity in cities where people have to cover significant distances to their homes or offices after stepping out of public transport. Incentivise investment in R&D for e-bikes: The market for electric bicycles (e-bikes) is in a nascent stage in India. However, e-bikes can play a significant role on Indian roads. Though there has been remarkable progress in product innovation and quality enhancement in making e-bikes user-friendly and durable in recent years, more needs to be done. Need to improve battery technology as well as technology for engines and body of vehicles to increase efficiency. Manufacturers investing in e-bikes and electric pedal assisted cycles (Epac) technology must be offered tax breaks and policy support to enable them make more efficient and affordable products. Connecting the dots: Transport continues to be a major contributor to greenhouse gas emissions, and health experts have long been underlining its impact on air quality. Thus,the Government must expand its vision to include a larger bunch of green transport options. Discuss. On urban transport is dependent its economy and more than the well-being of the urbanites. This makes it important to phase-in a mobility system that is clean, sustainable and health-friendly. Discuss INTERNATIONAL TOPIC: General Studies 2: India and its International 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. Restructuring India's China policy Background: As we complete two decades of the 21st century, a paradigm change in the global power structure is taking shape. Technology and size are causing this change. Potential power is shifting to the two large nations of the Asian mainland, China and India, which are fast-growing economies.  Continental shift: Asia already accounts for almost half of the world’s population, half of the world’s container traffic, one-third of its bulk cargo and 40% of the world’s off-shore oil reserves. It is home to several fast-growing new economies with GDP growth rates above 7% per year, i.e. a doubling of the GDP every 10 years. Asian defence spending ($439 billion) is also much more than Europe’s ($386 billion). India and China: Since the late 1990s, China and India have been rapidly emerging as influential power hubs. Being two of the three most post populous and largest GDP nations, India and China, both culturally akin, are socially structured on family values and associated social attitudes. Potentially both are poised to fill the role of global powers. The global power matrix has undergone a paradigm change, from an exclusively Atlantic shores-based concerns to emerging Indo-Pacific ocean strategic issues. Thus India-China relations matter as never before. The diminishing influence of Western powers in the region, and as of now the acknowledged rising power of China are the new global reality. Issues: China has conceptualised and implemented the centrality of befriending all of India’s neighbours and has brought them on board in its Belt and Road Initiative (BRI). India has been reduced to merely reacting to such proposals without any of her own to canvass as an alternative. There is an unfortunate trust deficit that requires frank bilateral discussion at a high political level. Restructuring policy: The key for India today is to bond strategically with China. But this requires dealing bilaterally on huge pending issues. To achieve the potential, both require hardware, software and the clear mindset for exercising this power. India is now poised to form a global triangle with the U.S. and China, and therefore the government must seize the opportunity, which requires a serious effort at reconciliation with China in a give-and-take mode without sacrificing our national interest. From regional to global player: A change in strategic conceptualisation is needed, from the present land-focussed thinking to Ocean-centric articulation. The Indian Ocean has now emerged as the epicentre of global power play in the 21st century. We need to recognise the centrality and primacy of the Indian Ocean in India’s global economic and military activism: the Indian Ocean is the epicentre of global power play in the 21st century. With Indonesian partnership, India can monitor the Malacca Strait through which over 80% of the freight traffic of China and East Asia passes. As an important part of its diplomacy, India must develop deeper cultural and civilisational linkages with China and the rest of Asia. Looking beyond Pakistan: In terms of hardware capability and mindset, India is at present only a regional power. Because it is obsessed with the problem of Pakistan-trained terrorists entering Indian territory rather than asserting higher priority on global issues. This makes it easy for other countires to hyphenate the two regional-minded nations, India with Pakistan. India needs a new mindset: to look beyond Pakistan. India has the capacity and the opportunity to rise as a ‘responsible and influential global power’. This will easily fix Pakistan and its terrorist propensity. India need to learn to exercise power without being seen as a bully by our neighbors. Exerting soft power advantage- The world already is dazzled by India’s prowess in information technology, the capability to produce pharmaceuticals at low cost, and the high quality of its trained manpower capable of innovation. But India does not exert this soft power advantage on the world scene commensurate with this potential or its size in Asia. Connecting the dots: India’s China policy needs a re-structuring based on a fresh perspective that is relevant for the 21st century. Discuss. MUST READ The ASEAN embrace The Hindu ASEAN rising The Hindu Smart policies for redistribution Indian Express Taking ASEAN to the bank Indian Express

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RSTV- The Big Picture : China’s Afghan Strategy

China’s Afghan Strategy Archives  TOPIC: General Studies 2 Effect of policies and politics of developed and developing countries on India's interests Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests In news: China has invited Afghanistan to join CPEC as the three nations-china, Pakistan and Afghanistan- pledge to have cooperation and not allow any country, group or individual to use its territories for terrorism. The three sides have agreed to jointly work on political mutual trust and reconciliation, development cooperation and connectivity, security cooperation and terrorism. Backdrop- From engaging minimally with Kabul since the early 2000s to a proactive Afghan policy after the period of Taliban rule, China’s interest has grown, especially since 2014. Over the last three years, Afghanistan has benefited from significant Chinese contributions in development assistance and aid of over $1.5 billion and also conducting joint patrols with the Afghan authorities. China’s outreach to Afghanistan shows it pro-active stance. 3 objectives for afghan outreach Make Afghanistan a stake holder to give CPEC a greater chance of viability. Now, there are serious questions raised about its viability regarding whether there will be enough trade, whether the rate at which loans are given to Pakistan and if its economy will survive or not. It knows that unless Afghanistan stabilizes, the CPEC viability will be threatened by terrorism angle. Afghanistan is a producer of lot of raw material which is important to boost trade and the trade route which china envisions. Rationale behind it China is trying to take pro-active stand on Afghanistan after a decade. It seeks to play a larger role if it wants to see Afghanistan move forward. It believes that the CPEC corridor will only work if its neighbours have a stake in it. Hence, there is a larger vision of influencing the south Asian polity. Economic as well as security is important for China. Economic development is an important part of CPEC being promoted. The security concerns arises from Xinjian province which shares border with Afghanistan as well as Pakistan. Benefits to Afghanistan Afghanistan wants two things from china as part of this process Taliban is coming to negotiating table Connectivity between Afghanistan and Pakistan should be strong US in its Af-Pak policy has given more insistence to India to play a stronger role in maintaining the security and stability of the region. Yet Pakistan is not able to abandon its basic aim to control the India policy of the afghan government. But no afghan government is willing to give Pakistan a veto over their policy. Impact to India’s interests in the region This is a new aspect of china- china with global ambitions, asserting itself as a global power at par with USA. As part to this process, it is showing activism in south Asia. Some time ago, it was trying to broker peace between Rohingyas and Myanmar government. They are also active in Nepal and other countries of south Asia. China is also part of quadrilateral coordination group with USA, Afghanistan and Pakistan. The objective was to bring the Taliban to the negotiating table. Now that USA is out of the talks, it is china which is taking the lead. First china was only interested in economic aspect of its projects. Now it is bothered about what goes in the country. For India, this is at one level a part of the process of new Chinese activism and devise strategies to meet it. India has objected to CPEC primarily because it passes through Indian Territory illegally occupied by Pakistan. Afghanistan already has a bilateral MoU with china in developing 21st century maritime sea route. However, Afghanistan is still sensitive to India’s concerns. Conclusion The only solution in Afghanistan is through reconciliation between Kabul authorizes and Taliban. Pakistan has been vociferous in saying that there is no military solution. Only political solution is the way out. The afghan is also followed this line. But Taliban is not a problem that can be solved through politics as there are previous experiences of Taliban government in Afghanistan which have frequently caused miseries to people. China has intensified its engagement with Afghanistan, generating concerns among the other major players in Afghanistan including, USA, Russia and India. In coming years, with multilateral engagement over Afghanistan, it is expected to have far-reaching consequences as china seeks higher status and enhanced global role. Connecting the dots: China’s pro-active role in Afghanistan’s economic development and security enhancements is a wake up call for India. Examine the issue in detail.

IASbaba's Daily Current Affairs

IASbaba's Daily Current Affairs [Prelims + Mains Focus] - 26th January 2018

IASbaba's Daily Current Affairs (Prelims + Mains Focus)- 26th January 2018 Archives (PRELIMS+MAINS FOCUS) SC to states: Implement Disabilities Act, 2016 Part of: Mains GS Paper II- Issues related to health Key pointers: The Supreme Court has asked all states and union territories (UTs) to implement within three months, the Rights of Persons with Disabilities Act 2016 on the rights of persons with disabilities. In 2016, amendments were made in Persons with Disabilities Act, 1995 and the apex court had asked states and UTs to implement provisions of new Act. As compared to the 1995 Act, various new provisions have been included in the 2016 Act and it has expanded the horizon of the rights of such persons, Singhal said. The court had said that 2016 Act is a “sea change in the perception” and exhibits a march forward look with regard to persons with disabilities and roles of state governments, local authorities, educational institutes and companies are given there. Article link: Click here National Voters' Day Part of: Mains GS Paper II- Polity Key pointers: 25th January is celebrated as National Voters’ Day throughout India. National Voter’s Day aims at increasing the enrolment of voters, especially encourage participation of newly eligible young voter (18-19 year old) and ensure universal adult franchise. 25th January, the Foundation Day of Election Commission of India (ECI), was declared as the National Voters’ Day in the year 2011. Article link: Click here (MAINS FOCUS) ECONOMY 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. India’s ailing handloom sector Introduction: Today's (26th January 2018) Google Doodle celebrates Republic Day with a colorful artwork, inspired by the vibrant colors and patterns of traditional handloom draperies from different states, depicting parade and cultural dance form. Pic link: http://st1.bgr.in/wp-content/uploads/2018/01/India-republic-day-doodle-feat.jpg The handloom industry in India exhibits a national identity that is admired and appreciated all over the world given its unique, unparalleled, rich heritage. It exhibits the spectacular craft of our artisans and nourishes the social fabric of the country. However this handloom art is in crisis. According to textile ministry’s Handlooms Census (2010) – There has been a 33 per cent drop in handloom employment since 1995-96. Only 4.3 million people are engaged in handloom weaving and allied activities now, against 6.5 million in 1995-96. India’s handloom exports touched Rs. 2,246 crore in 2014-15. However this has been continually declining compared to the previous 4-5 years. Since India produces almost 85 per cent of the world’s handloom products, we can ill afford to let the handloom sector and handloom art to fall into decline. Do you know? Handloom is the second largest unorganised set of economic activities in the country, after agriculture, that supports rural areas. More than three-fourth of all adult weavers are women and members of SC/ST/OBC communities. Indian handloom sector has the largest number of weavers in the world. There are almost 2.4 million handlooms in India, of which almost 85 per cent are in villages. Handloom sector in India Handloom art and weaving centres are clustered all over the country. Many of these art genres are popular in local and international markets. The Chanderi cluster, for example, is known for its genre of silk garments and sarees . Other clusters include the Varanasi cluster for Banaras silk sarees, and the Chirala cluster for its traditional varieties of zari (golden metal threads) sarees and dhotis. The Himachali topis, handbags from Kutch, the Kolhapuri chappals, jute bags and silk sarees from Assam - they create a landscape of unity in diversity and cultural parity. These clusters preserve traditional knowledge, which is passed from one generation to another. The exclusivity and the rarity of these handloom art forms provide them with the much-needed competitive advantage. Concerns: We are all aware of the farmer suicides, but tragically enough the death of weavers in the last 20 years has gone unnoticed. For instance, there have been 615 suicides in Andhra Pradesh from 1997-2010 and about 50 in Varanasi in the last three years. As digital India is the call of the hour, technological advancements are increasingly encouraged in the country and rightly so. Sadly, this impacts the handloom industry negatively and the cut-throat competition from power looms has put the very existence of the handloom sector in doubt. Many weavers are uneducated and rely solely on their skills that have been passed on to them by their previous generations. This is traditional knowledge for them and it is the government's responsibility to take their concerns and future into account. The Chanderi Model The Chanderi town is home to one of the biggest concentrations of handloom weavers in central India. Here they prepare a finely embellished silk and cotton based fabric with woven patterns of zari. Chanderi has 30,000 inhabitants and about 4,500 active looms. About 60 per cent of the inhabitants are dependent on this centuries-old traditional business either directly or indirectly. The textiles ministry had sanctioned a four-year mega cluster project for Chanderi and the department of rural industries of Madhya Pradesh had also been implementing several schemes aimed at improving the production and marketing of Chanderi products. Chanderi weavers sell their products across the country at a premium under the brand name of ‘Chanderi’, which is known for its unique art and designs. The demand estimation, order generation, and distribution of finished product from Chanderi to different parts of the country is a complex and unstructured process. Weavers use different methods to reach their consumers. They sell directly to their customers (shopkeepers in other cities) by visiting their place with the products, participate in trade fairs, or sell to intermediaries. Role of external agencies The role of NGOs and social enterprises in saving handloom art cannot be overemphasised. Non-government entities play a crucial role in developing rural entrepreneurial networks for the ailing handloom sector. For instance, NGO Digital Empowerment Foundation (DEF) has fulltime operations in Chanderi. DEF created a web portal to help weavers sell their products, going beyond reducing physical market separations and building a bridge to provide market access to their producers. The Chanderi model has been able to demonstrate the viability of market-based solutions for alleviating the poverty of ‘bottom of the pyramid’ producers, while also salvaging dying art forms. Such interventions when done in a timely and appropriate manner can create functional ecosystems of partnerships between the social sector, governments, and poor weavers to successfully develop markets for dying art forms. Conclusion: Like any other market, handloom is also required to serve three main functions: (1) matching of demand and supply that involves identification of buyers and sellers, for which matchmaking product offerings with needs, as well as price discovery is important; (2) facilitating exchanges or transactions, for which logistics, payment mechanisms, and facilitation of credit along with communication between buyers and sellers become important; and (3) providing institutional infrastructure such as enforcement of legal and regulatory mechanisms. These functions are already well-developed in formal urban markets, but the active intervention of external agencies may be required in poor, rural areas to make the markets work efficiently by reducing market separations. External non-governmental agencies can be of great help in undeveloped informal BOP markets in many parts of India. The budget should aim at improved infrastructure, education and skill-set training to nurture the industry as it looks promising with demands of domestic and export consumption. Connecting the dots: Why handloom sector remains an ailing sector in India? Analyse. What measures are required to solve the challenges faced by the sector? NATIONAL TOPIC:General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Focusing on Rural Education Introduction: An amazing transformation has occurred in the course of a generation. Young men and women in rural India are far surpassing their parents’ levels of education. As late as 2001, only a little over 25% of all rural 18-year-olds were attending schools, the rest having dropped out earlier. By 2016, the share of 18-year-olds in schools and colleges had gone up to 70%. There is a rapidly rising trend of education in rural India.  The ASER Survey: It is derived from an innovative survey of more than 30,000 youth, in the age group of 14-18, that was conducted in 1,641 villages of 24 states in India. This survey is important because more than 125 million individuals are in this age group, of whom more than two-thirds, roughly 85 million live in rural India, a population the size of Germany or the UK. They are the ones on whom their families’ hopes are vested, the future of the nation. Optimistic findings: Larger and larger numbers of individuals in the age group of 14-18 are opting to remain in the educational system. Girls have closed the gap with boys in rural areas: at age 14, 94% of girls and 95% of boys are enrolled in school; by age 18, 68% of girls and 72% of boys are still in school, a wholesale improvement on the proportions of a generation earlier. Dismal quality of education in rural schools: Among 14-18-year-olds surveyed by the ASER teams, only 43% could solve a class IV mathematics problem. This proportion was roughly the same among 14-year-olds as among 18-year-olds, showing that the problem of low learning outcomes was not resolved by remaining in school. Only 40% of 18-year-olds could take 10% off a given number. More than that percentage could not locate their state on a map of India. Twenty-seven percent of 14-year-olds, and 21% of 18-year-olds could not read a class II textbook in the regional language, and more than 40% in each age group could not read a simple sentence in English. Modern economic growth has little room for people with rudimentary skills and low education levels. The age of assembly-line production has given way to newer technologies, with complex processes, requiring a better trained workforce. Consequence: Young people trained in this shabby manner would find it very difficult when it would come to searching jobs. They won't be able to cover the learning deficits that have accumulated from years of attending low-quality rural schools. The belief that education will be the road out of precarious livelihood on the farm has gained ground. Inspired by this hope, parents are sending their children to schools in rural India. Most of them are first-generation learners. Soon, however, this younger generation will be graduating from high schools and colleges—and then they will find that there are very few good jobs. A reaction against such sort of education would be- “When my first-born was unable to make much of his 16 years of education,” a parent might argue, “why should I waste time and money on the education of my second-born?” With mass disappointment, the rising trend of education is going to fall. Issues: The market for education performs poorly in situations where information flows are sparse and competition is limited or non-existent. Privatizing the government system is not a viable solution, either. Rural private schools perform no better than rural public schools in terms of learning outcomes. Broken governance system- There are few rewards for being a good teacher and few punishments for being a careless one. That is because of faulty designs which need to repaired or replaced with more effective and accountable governance systems. Conclusion: A highly regimented and top-down system currently exists in India. It needs to give way to another system in which teachers are innovative in the classroom and parents are involved as co-decision-makers. Smaller-scale innovations developed by state governments and non-government organizations shows the huge potential of societal innovation. These reform efforts should serve as the starting points for a broader and increasingly essential public conversation. Raising the quality of education in rural schools is essential, and a nationwide dialogue is necessary for charting the way ahead. Business-as-usual will not fix the problem. Connecting the dots: The rural education is in dismal state as per the latest ASER survey. This will have grim consequences on overall education in India. It's time the existing system is overhauled. Discuss. MUST READ  Training teachers The Hindu Should euthanasia be allowed The Hindu Reading the constitution The Hindu Divide and misrule Indina Express How can the government revive manufacturing? Livemint Success at the bottom of the pyramid Business Line A game of trade and balance Business Line

Daily Prelims CA Quiz

UPSC Quiz- 2018 : IASbaba’s Daily Current Affairs Quiz [Day 131]

UPSC Quiz- 2018 : IASbaba’s Daily Current Affairs Quiz [Day 131] Archives Q.1) Environmental Performance Index 2018 was released by United Nations Environment Programme (UNEP) Global Environment Facility (GEF) International Union for Conservation of Nature (IUCN) None of the above Q.2) Muhuri, a transnational river flows between India and Myanmar Bangladesh Nepal Pakistan Q.3) Which of the following committees are related to Railways? Anil Kakodkar Committee Bibek Debroy Committee Justice H.R. Khanna Committee Sam Pitroda Committee Choose the correct code 1, 2 and 4 1 and 2 only 1, 2 and 3 All of the above Q.4) With reference to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), consider the following statements: It is an international agreement between governments. It is legally binding on the parties Which of the following statements is/are correct? 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) Consider the following statements with respect to Double Taxation Avoidance Agreement (DTAA) It is a tax treaty signed between two or more countries and tax-payers in these countries can avoid being taxed twice for the same income DTAAs are limited to taxing of income from shipping, air transport and inheritance only Which of the following statements is/are correct? 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution – Click here All the Best  IASbaba

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