Answers
(Civil Services Club Membership Test)
1.
National Election watch:
National Election Watch (NEW), a nationwide campaign comprising of more than
1200 NGO and other citizen led organizations working on electoral reforms,
improving democracy and governance in India.
2.
National Automotive Board:National
Automotive Board (NAB), a body that would act as afacilitator between the
government and the industry, and promote R&D activities in the sector. NAB
will be a specialized body for promoting sustainable development of the
Indianauto sector. Besides, it would have a larger role in developing skills
for the growing automobile sector.
3.
Social Recruiting:
It is the process of sourcing or
recruiting candidates through the use of social platforms as promotional
and/oradvertising channels by employers and recruiters. As per the evolving
discussions among digital users, it can bewidely separated into two different
categories.
a. The first is internet sourcing using social media profiles, blogs,
and online communities to findand search for passive candidate data and information.
b. The second is social distribution. This involves using social media
platforms and networks as ameans to distribute jobs either through HR vendors
or through crowd sourcing where jobseekers and other influencers share job
openings within their online social networks.The use of social media allows
them to improve exponentially their potential talent pool of candidates by
encouraging employees to share job opportunities with their relevant contacts,
and pass it on and share amongother with no additional effort.
4.
Algorithmic Trading:A
trading system that utilizes very advanced mathematical models for making
transaction decisions in the financial markets. The strict rules built into the
model attempt to determine the optimal time for an order to be placed that will
cause the least amount of impact on a stock's price. Large blocks of shares are
usually purchased by dividing the large share block into smaller lots and
allowing the complex algorithms to decide when the smaller blocks are to be
purchased.The use of algorithmic trading is most commonly used by large
institutional investors due to the large amount of shares they purchase every
day. Complex algorithms allow these investors to obtain the best possible price
without significantly affecting the stock's price and increasing purchasing
costs.
5.
Disinvestment and Privatization: are
two different terms, though both involve the sale ofGovernment's share in the
Public Sector Undertakings. The term privatization is used for a stake sell in
whichthere is a transfer of 51% or more equity to the private players. In
disinvestment, the government sells only apart of the equity which is
essentially less than 51% so that ownership and management rights can be hold
bythe Government itself.
6.
Green Nylon: The production
of nylon — found everywhere from auto parts to women’s stockings — depends on a
chemical called adipic acid. It’s one of the most widely used chemicals in the
world, but it’s produced from fossil fuel and a lot of pollution results from
its refinement process. Over 5 million tons of nylon are produced a year. A
team led by Hai Yan Duke University Medical Center was studying genetic changes
that cause healthy tissues to grow into tumors.In a happy accident, cancer
researchers discovered a molecule necessary for cheaper and greener ways to
manufacture nylon. They delved into the adipic acid problem based on
similarities between cancer research techniques and biochemical engineering.
7.
Repo Rate &Bank Rate:Repo
(Repurchase) rate is the rate at which the RBI lends shot-term money to the
banks against securities. When the repo rate increases borrowing from RBI
becomes more expensive. Therefore, we
can say that in case, RBI wants to make it more expensive for the banks to
borrow money, it increases the repo rate; similarly, if it wants to make it
cheaper for banks to borrow money, it reduces the repo rate. Bank rate is the
rate at which central bank (RBI) lends money to other banks or financial
institutions. If the bank rate goes up, long-term interest rates also tend to
move up, and vice-versa. Thus, it can said that in case bank rate is hiked,
in all likelihood banks will hikes their own lending rates to ensure
that they continue to make profit.
8.
Marginal Standing Facility (MSF):MSF is
the rate at which banks can borrow overnight from RBI.This was introduced in
the monetary policy of RBI for the year 2011-2012.The MSF is pegged 100bps or a
% above the repo rate. Banks can borrow funds through MSF when there is a
considerable shortfall of liquidity. This measure has been introduced by RBI to
regulate short-term asset liability mismatches more effectively.
9.
International Girl Child Day:To
recognize girls' rights and the unique challenges girls face around the world,
the United Nations General Assembly adopted Resolution 66/170 to declare
October 11 as the International Day of the Girl Child. On December 19, 2011,
the UN General Assembly adopted the resolution to declare October 11 as the
International Day of the Girl Child.
10.
Revised Protocol for President:The President
has revised the protocol as follows:
• "Mahamahim" as prefix is replaced with
'RashtrapatiMahoday'
• Honorable before the Title of President /Governor followed by the
name with greeting Sri or Shrimati(Honorable President ShriPranab Mukherjee)
• ‘Excellency’ will be used only for interaction of Indian leaders
with foreign dignitaries and foreigndignitaries with Indian leaders as is the
customary international practice.
11.
5+5 Summit:The 5+5
grouping brings together five EU member states – Malta ,Italy, France, Spain and Portugal – and five
northern African countries, Libya, Tunisia, Algeria, Morocco and Mauritania.
Recently 5+5 summit held in Malta.
12.
ICT
Development Index: It measures ICT access, use and literacy,
and the ICT Price Basket, a country-wise indicator of ICT affordability.It
is an index published by the United Nations International
Telecommunication Union based on internationally agreed information and
communication technologies (ICT) indicators.
Answers to Analytical Questions
Note: Answers have been discussed in broader perspective keeping in
mind the approach and factual aspects of the questions.
Ratification of Nagoya Protocol on Access and Benefit Sharing by India
The
Nagoya Protocol has been signed by 92 countries. Five countries have also
ratified the Protocol. India signed the Nagoya Protocol on 11th May 2011.
Recently India hosted the eleventh CoP to the CBD in October 2012 in Hyderabad.
This gave us an opportunity to consolidate, scale up and showcase our strengths
and initiatives on biodiversity before the world. As the President of CoP-11,
it was expected that India would ratify the protocol before CoP-11.
India
is one of the identified mega diverse countries rich in biodiversity. With only
2.4 per cent of the earth's land area, India accounts for 7-8 per cent of the
recorded species of the world. India is also rich in associated traditional
knowledge, which is both coded as in ancient texts of Indian systems of
medicines such as Ayurveda, Unani and Sidha, and also non-coded, as it exists
in oral undocumented traditions.
The
genetic resources and associated traditional knowledge can be used to develop a
wide range of products and services for human benefit, such as medicines,
agricultural practices, cosmetics etc. Much of the world's biodiversity is
found in developing countries, and can thus contribute to their economic and
social development, and also create incentives for their conservation and
sustainable use, thereby contributing to the creation of a fairer and more equitable
economy to support sustainable development.
India
is a Party to the Convention on Biological Diversity (CBD) which is one of the
agreements adopted during the Rio Earth Summit held in 1992. One of the three
objectives of the CBD relates to Access and Benefit Sharing (ABS), which refers
to the way in which genetic resources may be accessed, and benefits resulting
from their use shared by users with countries that provide them. The CBD
prescribes that access to genetic resources is subject to national legislation.
Accordingly, India after extensive consultative process had enacted the
Biological Diversity Act in 2002 for giving effect to the provisions of the
CBD, including those relating to CBD. However, in the near absence of user
country measures, once the resource leaves the country providing the resources,
there is no way to ensure compliance of ABS provisions in the country where it
is used. Towards this, a protocol on access and benefit sharing has been
negotiated under the aegis of CBD, and adopted by the Tenth Conference of
Parties (CoP-10) held in Nagoya, Japan in October 2010. India has participated
actively and contributed meaningfully in the ABS negotiations which formally
started about six years back. The objective of the Nagoya Protocol on ABS is
fair and equitable sharing of benefits, arising from the use of genetic
resources, including by appropriate access to genetic resources and by
appropriate transfer of relevant technologies.
India
has been a victim of misappropriation or biopiracy of our genetic resources and
associated traditional knowledge, which have been patented in other countries
(well known examples include neem and haldi). It is expected that the ABS
Protocol which is a key missing pillar of the CBD, would address this concern.
Goals
of Nagoya Protocol:
The
meeting achieved its three inter-linked goals:
•
Adoption of a new ten year Strategic Plan to guide international and national
efforts to save biodiversity through enhanced action to meet the objectives of
the Convention on Biological Diversity
•
A resource mobilization strategy that provides the way forward to a substantial
increase to current levels of official development assistance in support of
biodiversity
• A new
international protocol on access to and sharing of the benefits from the use of
the genetic resources of the planet.
The outcomes of CBD-11
• India
has taken over as president of the COP.
•
The countries of the world agreed on to increase funding in support of actions
to halt the rate of loss of biodiversity. Developed countries agreed to double
funding to support efforts in developing statestowards meeting the
internationally-agreed Biodiversity Targets, and the main goals of the
Strategic Plan for Biodiversity 2011-2020.
•
Special attention to be given to the Saragasso Sea, the Tonga archipelago and
key corals sites off the coast of Brazil.
•
The countries have agreed to take new measures to factor biodiversity into
environmental impact
assessments
linked to infrastructure and other development projects in marine and coastal
areas.
Agreements
on Funding
•
Developed countries agreed to increase funding to support efforts in developing
states towards meeting the Aichi Biodiversity Targets.
•
Using a baseline figure of the average annual national spending on biodiversity
between 2006 and 2010, developed countries said they would double
biodiversity-related international financial flows by 2015.The COP also set
targets to increase the number of countries that have included biodiversity in
their national development plans, and prepared national financial plans for
biodiversity, by 2015.
•
All Parties have agreed to substantially increase domestic expenditures for
biodiversity protection over the same period.
•
The developing countries at COP 11, including India and several African states,
have pledged additional
funds
above and beyond their core funding towards the work of the CBD.
•
Hyderabad Call for Biodiversity Champions was laucned. The programme will
accept pledges from
governments
and organizations in support of the Strategic Plan for Biodiversity. India has
committed $50 million (over Rs. 264 crore) for the so called the ‘Hyderabad
Pledge’ as India takes over the two-year presidency of the Convention on
Biological Diversity
Marine
Biodiversity
•
It was decided to classify a diverse list of marine areas, some renowned for
containing ‘hidden treasures’ of the plant and animal world, as ecologically or
biologically significant.
•
To meet the Aichi Biodiversity Target of ensuring that 10 per cent of marine
areas are protected by 2020, an additional 8 million square kilometres of
marine and coastal areas would need to be recognized as protected - an area
just over the size of Australia.
•
The countries agreed to for moving forward for development of an international
agreement for
biodiversity
conservation in marine areas beyond national jurisdiction.
•
More research to be done into the potential adverse effects of underwater noise
from ships on marine and coastal biodiversity.
•
The growing concern on the adverse effects of marine litter was highlighted.
•
Growing challenge of climate change impacts on coral reefs was recognized and
the it was agreed that it will require significant investment to overcome.
National Biodiversity Plans
Much
of the COP 11 negotiations revolved around practical and financial support for
countries in implementing national biodiversity plans to meet the Strategic
Plan for Biodiversity and the 2020 Aichi Biodiversity Targets.
•
Highlighted the need for enhanced technical and scientific cooperation among
countries, while
underlining
the potential for enhanced cooperation among developing countries.
•
A new National Biodiversity Strategies and Action Plans Forum (NBSAP Forum) was
launch at COP11 by UNEP, CBD, The Global Environment Facility (GEF) and the UN
Development Programme (UNDP). This is an online forum which provides
easy-to-access, targeted information such as best practices, guidelines and
learning tools for countries.
.Agreed
to a number of measures to engage the main economic sectors, such as business
and development organizations, to integrate biodiversity objectives in their
plans and programmes.
Need for National Investment Board: An Analysis
Public
policy should be scripted and executed with people at the core. The current
debate surrounding the National Investment Board (NIB) should also be looked at
through the prism of creating jobs for people and simultaneously ensuring that
the environment does not suffer more than necessary.
Humans,
biodiversity and economic reforms have continued to score high decibels in the
public discourse since the first Earth Summit. The debate has been mainly on
the issue of balance between environment and development, and that is not an
easy task. Whenever we have surveyed people, development always scores over
environment. Jobs and two square meals a day are of greater importance than
living beings dying.
Public
policy needs to balance both, because people may not be able to appreciate the
need for such balance.
The
problem with the current prescriptions in setting up a high-powered NIB is that
the potential of hurdles of the environment ministry and tribal affairs
ministry will be short-circuited, so that approvals of critically-desirable
infrastructure projects can be speeded up without ousting the jurisdiction.
Indeed,
we need to cut down the delays associated with project clearances, so that
industrial progress can be sustained to create more jobs.
Environmental
clearances have been a bane for two reasons: rigid laws and lackadaisical
processes. Many of the regulations in our laws are drafted poorly.
Consequently, administrators apply the rule book even without thinking of
proportionality that is always at a premium in our processes.
The
problem with the issue also arises from the often irrational opposition by some
civil society elements. Even farming has been an intrusion in nature, and the
reason was simple. People needed food, and not just relied on wild fruits,
berries and animals to meet their needs. Agriculture was discovered and people
started encroaching forests and wastelands to grow crops, causing huge loss of
biodiversity.
Nature
adjusts to these changes as civilization evolves, and so will the future.
Discovery
of the wheel, and now the internet, changed human mobility and communications
hugely. The industrial revolution happened following the discovery of the steam
engine, and ever since, we have been crossing unimaginable frontiers. Human
needs and greed continued to evolve and were often shaped by times and newer
discoveries. Therefore, one needs to recognize the dynamics of nature and its
interaction with humans.
The
NIB may envisage a single-window system for solving problems associated with
the projects at the central level but an analysis of the time and cost overruns
for the ongoing projects shows 69 projects are facing land acquisition problems
and 30 coal projects are grappling with rehabilitation and resettlement
problems.
Further,
law and order is a factor behind delays in 25 projects in the railways, coal,
telecom, petroleum and power sectors. These sectors are facing land acquisition
problem, too.
Similarly,
49 projects are facing problems in environmental clearances and include
projects from the coal, petroleum, railways and power sectors. Adverse
geo-mining conditions have also plagued 21 projects from coal, power and
railways and 33 projects are facing contractual issues.
With
this, 44 projects have been delayed due to slow progress in non-civil works.
And, 71 other projects have been facing various problems, including technology
selection, award of contract, delay in civil work, court cases, inadequate
infrastructure, bad weather and statutory clearances.
Only
65 railway projects are getting delayed due to fund constraints.
Speedy
project clearances and implementation would require solutions at the local and
state levels, where the NIB would not be of help as it will comprise
representatives only from central ministries.
The
government on its part, though, believes the NIB under the Prime Minister would
be a major step in expediting investment in the infrastructure sector.
How
will a National Investment Board (NIB) deal with issues that are, under the
constitution, the responsibility of lower governments? World Bank's report
'Doing Business in India' provides reasons why it is difficult to start and
close a business in India.
If
we clearly define a role for NIB and set up similar boards in states and
districts with clear responsibilities, most of impediments to investment will
disappear. There is an urgent need for coordination and action at the national
level among the central ministries. For instance, water involves 13
departments; energy at least eight. The Planning Commission must work on
capacity-building for all district- and state-level investment boards. The
Centre must give financial incentives to each district government for
successfully implementing projects. We must give national awards to such boards
for doing a better job.
Also,
we must look at issues beyond single-window clearance, the proposed NIB's
objective. The objective must be successful completion of these projects, for
which we must look at forward and backward linkages of the project life cycle.
There
is a need for detailed project planning. We normally spend very little time in
planning, causing inordinate delays in implementation. Any NIB will not help
the cause unless it is preceded by comprehensive project planning.
Again,
once the project is in implementation mode, it is important to have a proper
monitoring mechanism in place to ensure that all the conditions attached to
project approval are followed. Otherwise, the project tends to be stalled by
the judicial process. This apart, proper social marketing of the intended
benefits and strategies for mitigating attendant challenges must be done ahead
of implementation. We have often witnessed that lack of effective communication
and the absence of ownership of a socially useful project by the local
community, causing avoidable hurdles.
All
in all, it's time to overhaul all our regulatory institutions, so that they
discharge their mandates effectively. Strengthening these institutions would
ensure public confidence in their efficacy.
Financial Sector Legislative Reform Commission (FSLRC)
The
establishment of the FSLRC is the result of a realization that the
institutional foundation (laws and organizations) of the financial sector in
India needs to be looked afresh to assess its soundness for addressing the
emerging requirements in a rapidly changing world. Today, India has over 60 Acts and multiple Rules/ Regulations
that govern the financial sector. Many of them have been written several
decades back. For example, the RBI Act and the Insurance Act are of 1934 and
1938 vintage respectively and the Securities Contract Regulation Act, which
governs securities transactions, was legislated in 1956 when derivatives and
statutory regulators were unknown in the financial system. A Large number of
amendments were, therefore, made in these Acts and regulations at different
points of time to address various needs. But these have also resulted in their
fragmentation, often adding to the ambiguity and complexity of regulations in
the financial sector.
The
piecemeal amendments have resulted in unintended outcomes including regulatory
gaps, overlaps, inconsistencies and regulatory arbitrage. The fragmented
regulatory architecture has also led to loss of scale and scope that could be
available from a seamless financial market with all its attendant benefits of minimizing
the intermediation cost. For instance, complex financial intermediation by
financial conglomerates of today falls under purview of multiple regulators.
Various Expert Committees have also pointed out these discrepancies and
recommended the need for revisiting the financial sector legislations to
rectify them.
It
was therefore proposed to set up the Financial
Sector Legislative Reforms Commission (FSLRC), which would, inter-alia,
evolve a common set of principles for governance of financial sector regulatory
institutions. The Commission would examine financial sector legislations,
including subordinate legislations. The Commission would also examine the case
for greater convergence of regulations and streamline regulatory architecture
of financial markets.
Terms of Reference of the Commission
1) Examining the architecture of the legislative
and regulatory system governing the Financial sector in India, including:
a) Review of existing legislation including the
RBI Act, the SEBI Act, the IRDA Act, the PFRDA Act, FCRA, SCRA, FEMA etc.,
which govern the financial sector’
b) Review of administration of such legislation,
including internal structures and external structures (departments and
ministries of governing), if required;
c) Review of inter-play of jurisdictions occupied
by various regulators;
d) Review of jurisdiction of departments within
each regulator, and consider need for segregation / combination, and such other
streamlining;
e) Review of issues relating to conflict of
interest of regulators in the market;
f) Review of the manner in which subordinate
legislation is drafted and implemented;
g) Review of eligibility criteria for senior
officers in regulatory authorities and issues relating to tenure, continuity,
and means of tapping and retaining lessons learnt by each authority;
h) Examine a combined appellate oversight over
all issues concerning users of financial legislation.
2) Examine if legislation should mandate
statement of principles of legislative intent behind every piece of subordinate
legislation in order to make the purposive intent of the legislation clear and
transparent to users of the law and to the Courts.
3) Examine if public feedback for draft
subordinate legislation should be made mandatory, with exception for emergency
measures.
4) Examine prescription of parameters for
invocation of emergency powers where regulatory action may be taken on ex parte
basis.
5) Examine the interplay of exchange controls
under FEMA and FDI Policy with other regulatory regimes within the financial
sector.
6) Examine the most appropriate means of
oversight over regulators and their autonomy from government.
7) Examine the need for re-statement of the law
and immediate repeal of any out-dated legislation on the basis of judicial
decisions and policy shifts in the last two decades of the financial sector
post-liberalisation.
8) Examination of issues of data privacy and
protection of consumer of financial services in the Indian market.
9) Examination of legislation relating to the
role of information technology in the delivery of financial services in India,
and their effectiveness.
10) Examination of all recommendations already
made by various expert committees set up by the government and by regulators
and to implement measures that can be easily accepted.
11) Examine the role of state governments and
legislatures in ensuring a smooth inter-state financial services infrastructure
in India.
12) Examination of any other related issues.
Recommendation:
1)A
key attraction of the FSLRC plan is the proposal to set up a financial
redressal agency to protect consumer rights.
2)The
commission has proposed a single regulator for all financial products other
than banking that will replace four existing regulators and also take over
regulations relating to bonds and currency markets that are currently under the
joint purview of the Securities and Exchange Board of India (SEBI) and the
Reserve Bank of India (RBI).
3)It
has recommended trimming down RBI’s functions, suggesting an independent debt
management office take over the responsibility for this.
4)
The approach paper lays down a detailed rule-making process to ensure
accountability of regulators, but does not spell out the mechanisms to ensure
autonomy.
The
key malaise of the Indian financial system is lack of autonomy for regulators
rather than lack of accountability. India’s record in creating independent
financial regulators so far simply does not inspire much confidence. The
approach paper has high praise for the two-decade-old track record of capital
market regulator Sebi. But Sebi’s recent history is far from glorious and the
finance ministry’s rising influence over it is well-documented.
Of
India’s financial regulators, RBI enjoys relatively greater autonomy because of
three key differentiating factors: greater control over finances, a
well-paid team of in-house technocrats, and a convention allowing
independence in central banking. Autonomy allowed RBI under former governor
Y.V. Reddy to take counter-cyclical measures ahead of the global financial
crisis in 2008 despite being under pressure from the Centre not to do so.
Reddy’s interventions saved the economy from major damage during the crisis.
Although RBI has lost sheen since then, it still remains among the better
managed central banks in the developing world.
The
onus, therefore, will be on FSLRC to demonstrate that reducing the role of RBI
in the economy will lead to considerable benefits, and the independent debt
management office it envisages will be able to withstand pulls and pressures of
the finance ministry. The same argument holds for its proposal on creating a
new unified financial regulator.
The
approach paper is a good first step, but given the far-reaching and possibly
irreversible effects of FSLRC’s proposals, outlining the expected outcomes
transparently will ease the path to implementation.
The
approach paper talks about a bond-currency-derivative nexus that can be
developed under a unified regulator. In the aftermath of the financial crisis,
the conventional wisdom on both the necessity and desirability of such a nexus
stands challenged. Hence, rather than assume that the gains of such a nexus are
self-evident, it will serve FSLRC’s cause to lay down the quantifiable gains as
well as the risks that arise from developing such a nexus, and to provide
examples of what such a nexus has achieved in the growth of the real sector in
comparable developing economies.
One
of FSLRC’s most useful recommendations is a rule-making process for framing
regulations, which entails that regulators precisely identify the problem they
seek to correct, and state the costs and benefits of the intervention they
propose to solve the problem. FSRLC can gain enormous credibility and
acceptance if it adheres to the same standards that it expects regulators to
follow while designing proposals.
Salient features of Mental Health Care Bill
Mental
Health care bill revolves around these rights given to mentally ill patients:
1. Right
to non-discrimination.
2.
Right to live with dignity.
3.
Right to confidentiality.
4.
Right to free treatment.
5.
Right to Humane treatment without cruelty.
6.
Right to personal contacts & communication.
7.
Right to make complaints.
8.
Right to information
9. No
Punishment for suicide attempt.
