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------------------------------------------------------------------------------------------------------------------------------------------------ | 1 [email protected] | www.futureias.net August 29, 2019 NEWS ANALYSIS Tags: GS Paper 3, Indian Economy. Context: The Union Cabinet announced a number of decisions designed to attract increased foreign direct investment (FDI) into the country. Analysis: The measures include easing local sourcing norms for single brand retail companies. Currently, the FDI policy says that a single brand retail company with more than 51% FDI needs to source 30% of its goods from within India. The new decision says that this 30% can be calculated over the first five years of operation. Further, sourcing for exports will also count towards the local sourcing requirement. The government also updated the FDI policy in keeping with prevalent business practices. With a view to provide greater flexibility and ease of operations to SBRT (single brand retail trade) entities, it has been decided that all procurements made from India by the SBRT entity for that single brand shall be counted towards local sourcing, irrespective of whether the goods procured are sold in India or exported. 1. FDI IN RETAIL

NEWS ANALYSIS · additional tests and use of more expensive drugs. Without effective antibiotics for prevention and treatment of infections, the achievements of modern medicine are

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Page 1: NEWS ANALYSIS · additional tests and use of more expensive drugs. Without effective antibiotics for prevention and treatment of infections, the achievements of modern medicine are

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August 29, 2019

NEWS ANALYSIS

Tags: GS Paper 3, Indian Economy.

Context: The Union Cabinet announced a number of decisions designed to attract increased

foreign direct investment (FDI) into the country.

Analysis:

The measures include easing local sourcing norms for single brand retail companies.

Currently, the FDI policy says that a single brand retail company with more than 51% FDI

needs to source 30% of its goods from within India.

The new decision says that this 30% can be calculated over the first five years of operation.

Further, sourcing for exports will also count towards the local sourcing requirement.

The government also updated the FDI policy in keeping with prevalent business practices.

With a view to provide greater flexibility and ease of operations to SBRT (single brand retail

trade) entities, it has been decided that all procurements made from India by the SBRT entity

for that single brand shall be counted towards local sourcing, irrespective of whether the

goods procured are sold in India or exported.

1. FDI IN RETAIL

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The current FDI policy provides for 100% FDI under the automatic route in the

manufacturing sector.

There was no specific provision for contract manufacturing in the policy. It has now decided

to allow 100% FDI under the automatic route in contract manufacturing in India as well.

Another change the Cabinet has approved is that single brand retail companies can now

start selling online before setting up a brick and mortar store as long as they set one up

within two years of starting online sales.

Earlier, they had to set up a brick and mortar store before selling online.

Online sales will lead to the creation of jobs in logistics, digital payments, training and

product skilling.

Apart from the single brand retail, the Cabinet also approved changes to the FDI rules for

digital media and coal mining.

It has decided to permit 26% FDI, with government approval, for uploading and streaming

news and current affairs using digital media, on the lines of print media.

Tags: GS Paper 3, Environment conservation and pollution and degradation.

Context: Government is taking steps to detect antimicrobial resistance in river Ganga.

Analysis:

The government has commissioned a ₹9.3 crore study to assess the microbial diversity

along the entire length of the Ganga and test if stretches of the 2,500 km long river contain

microbes that may promote “antibiotic resistance”.

The project, expected to last two years, is to be undertaken by scientists at the Motilal Nehru

Institute of Technology, Allahabad; the National Environmental Engineering Research

Institute (NEERI), Nagpur; Sardar Patel Institute of Science & Technology, Gorakhpur, as

well as startup companies, Phixgen and Xcelris Labs.

The latter two provide genome sequencing services, which in this case will involve mapping

the genomes of the microbes sampled.

The aims of the research project, according to a note by the National Mission for Clean

Ganga under the Jal Shakti Ministry is to indicate the type of “contamination” (sewage and

industrial) in the river and “threat to human health (antibiotic resistance surge)”, identifying

sources of Eschericia coli, a type of bacteria that lives in the gut of animals and humans.

While largely harmless, some species have been linked to intestinal disease as well as

aggravating antibiotic resistance.

Other such studies:

There have been several studies that have looked at microbial diversity in the Ganga

but these have been in isolation.

In 2014, researchers from Newcastle University in the U.K. and IIT-Delhi sampled water and

sediments at seven sites along the Ganga in different seasons.

2. NEW STUDY TO CHECK ANTIBIOTIC RESISTANCE IN GANGA

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They reported in the peer reviewed Environmental Science and Technology that levels of

resistance genes that lead to “superbugs” were about 60 times greater during the pilgrimage

months of May and June than at other times of the year.

A 2017 report commissioned by the Union Department of Biotechnology and the U.K.

Research Council underlined that India had some of the highest antibiotic resistance rates

among bacteria that commonly cause infections.

What is Antimicrobial Resistance?

Anti-microbial resistance is the resistance acquired by any microorganism (bacteria,

viruses, fungi, parasite, etc.) against antimicrobial drugs (such as antibiotics, antifungals,

antivirals, antimalarials, and anthelmintics) that are used to treat infections.

As a result, standard treatments become ineffective, infections persist and may spread to

others.

Microorganisms that develop antimicrobial resistance are sometimes referred to as

“superbugs”.

How it happens?

Some bacteria due to the presence of resistance genes are intrinsically resistant and

therefore survive on being exposed to antibiotics.

Bacteria can also acquire resistance. This can happen in two ways:

By sharing and transferring resistance genes present in the rest of the population or

By genetic mutations that help the bacteria survive antibiotic exposure.

Once the resistance has been acquired, it can spread in the rest of the population of bacteria

through reproduction or gene transfer.

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Reasons for the Spread of AMR

Unnecessary and injudicious use of antibiotic fixed dose combinations could lead to the

emergence of bacterial strains resistant to multiple antibiotics.

Include self-medication.

Access to antibiotics without the prescription.

Lack of knowledge about when to use antibiotics.

Mass bathing in rivers as part of religious mass gathering occasions.

Antibiotics which are critical to human health are commonly used for growth promotion in

poultry.

The wastewater effluents from the antibiotic manufacturing units contain a substantial

amount of antibiotics, leading to contamination of rivers and lakes.

Untreated disposal of sewage water bodies - leading to contamination of rivers with antibiotic

residues and antibiotic-resistant organisms.

A report on hand-washing practices of nurses and doctors found that only 31.8% of them

washed hands after contact with patients.

Impacts

A threat to prevention and treatment of infections - medical procedures such as organ

transplantation, cancer chemotherapy, diabetes management and major surgery (for

example, caesarean sections or hip replacements) become very risky.

The failure to treat infections caused by resistant bacteria also poses a greater risk of death.

Antimicrobial resistance increases the cost of health care with lengthier stays in hospitals,

additional tests and use of more expensive drugs.

Without effective antibiotics for prevention and treatment of infections, the achievements of

modern medicine are put at a risk.

Without urgent action, we are heading to antibiotic apocalypse – a future without

antibiotics, with bacteria becoming completely resistant to treatment and when common

infections and minor injuries could once again kill.

Antimicrobial resistance is putting the gains of the Millennium Development Goals at risk and

endangers achievement of the Sustainable Development Goals.

Tags: GS Paper 2, Functions and Responsibilities of the Union and the States

Context: A common code of conduct will be framed for legislative bodies to check interruptions and

for this a committee of presiding officers will be formed.

Analysis:

The Committee formed after due consultations with the Speakers of Legislative Assemblies

and Chairmen of Legislative Councils, will present its report later this year.

3. CODE OF CONDUCT FOR LEGISLATURES

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The statement was released by Lok Sabha speaker after presiding over the meetings of the

executive committee of the Commonwealth Parliamentary Association (CPA) India Region

and Presiding Officers of Legislative Bodies in India held in Parliament House Annex earlier

in the day.

The Speaker said the presiding officers were of the unanimous view that Parliament and

State legislatures, the representative institutions, were accountable to the people and

matters concerning different regions need to be constructively discussed and debated.

There was a consensus among the presiding officers to increase the number of sittings of

the State Legislatures and also to increase the productivity of legislative work.

The speaker said that there is a need to have extensive and healthy debates in the

Legislatures for passing the laws and the House needs to function without any interruptions.

Add on for prelims:

Code of Conduct:

A code of conduct is a set of rules that outline the social standards and rules and

responsibilities of, or proper practices for, an individual, party or organization.

It is defined that "Code of Conduct" is "principles, values, standards, or rules of behaviour

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that guide the decisions, procedures and systems of an organization in a way that

o Contributes to the welfare of its key stakeholders.

o Respects the rights of all constituents affected by its operations.

It is established in many reports that a Code of Conduct documents the rules and policies

that govern the business and ethical conduct of directors, committee members and staff (i.e.

officers and employees).

The scope of a Code of Conduct includes the individual legal duties of each director,

committee member and staff member, as well as identifying unlawful or prohibited conduct.

Elements of a Code of Conduct

A Code of Conduct must address all important ethical issues and legal duties with respect to the

behaviour and conduct of individual directors, volunteers and staff members of the credit union. It

should deal with the following issues:

general standard of care of directors and officers

Compliance with all applicable laws

Confidentiality

Conflicts of interest

Restricted party transactions

Unethical conduct

Difference between Code of Ethics and Code of Conduct

BASIS FOR

COMPARISON

CODE OF ETHICS CODE OF CONDUCT

Meaning An aspirational document, issued by

the board of directors containing core

ethical values, principles and ideals

of the organization is Code of Ethics.

A directional document containing

specific practices and behaviour, that

are followed or restricted under the

organization is Code of Conduct.

Nature General Specific

Scope Wide Narrow

Governs Decision making Actions

Length Short Comparatively longer

Disclosure Publicly disclosed. Employees only.

Focused on Values or principles Compliance and rules

Tags: GS Paper 3, Environment conservation and biodiversity.

Context: CITES approved to upgrade the protection of animals requested by India.

4. STAR TORTOISE, OTTERS GET HIGHER PROTECTION AT CITES

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Analysis:

India‟s proposal to upgrade the protection of star

tortoises (Geochelone elegans), the smooth coated

otter (Lutrogale perspicillata) and small clawed otters

(Anoyx cinereus) in CITES (Convention on

International Trade in Endangered Species on Wild

Fauna and Flora) have been approved.

These species have been listed under Appendix-I of

CITES and will now enjoy the highest degree of

protection as there will be a complete international ban

enforced on their trade.

The upgradation was approved at the Conference of

the Parties (COP18) held at Geneva. Appendix-I of

CITES lists species that are the most endangered

among CITES listed animals and plants.

They are threatened with extinction and CITES

prohibits international trade in specimens of these

species except when the purpose of the import is not

commercial, for instance for scientific research.

India‟s proposals received overwhelming support from

other parties as well and got approved.

90% of trade of star tortoises occurs as part of the international pet market.

The species is categorized as „vulnerable‟ by the International Union of Conservation

of Nature and a decline greater than 30% was predicted by 2025 if the exploitation

continued or expanded.

In case of the small clawed otter and smooth coated otter, which are traded for their

fur in the international market, numbers are also declining due to habitat loss.

Add on for prelims:

About the Convention on International Trade in Endangered Species of Wild Fauna and Flora

(CITES):

It is an an International agreement to regulate worldwide commercial trade in wild

animal and plant species.

It also restricts trade in items made from such plants and animals, such as food,

clothing, medicine, and souvenirs

It was signed on March 3, 1973 (Hence world wildlife day is celebrated on the march 3).

It is administered by the United Nations Environment Programme (UNEP).

Secretariat — Geneva (Switzerland).

CITES is legally binding on state parties to the convention, which are obliged to adopt their

own domestic legislation to implement its goals.

Classifications:

It classifies plants and animals according to three categories, or appendices, based on how

threatened.

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They are.

Appendix I: It lists species that are in danger of extinction. It prohibits commercial trade of these

plants and animals except in extraordinary situations for scientific or educational reasons.

Appendix II species: They are those that are not threatened with extinction but that might suffer a

serious decline in number if trade is not restricted. Their trade is regulated by permit.

Appendix III species: They are protected in at least one country that is a CITES member states

and that has petitioned others for help in controlling international trade in that species.

TRAFFIC:

TRAFFIC has an enviable reputation as a reliable and impartial organization, a leader in the

field of conservation as it relates to wildlife trade.

TRAFFIC was established in 1976 and has developed into a global network, research-driven

and action-oriented, committed to delivering innovative and practical conservation solutions

based on the latest information.

TRAFFIC is governed by the TRAFFIC Committee, a steering group composed of members

of TRAFFIC's partner organizations, WWF and IUCN.

A central aim of TRAFFIC's activities is to contribute to the wildlife trade-related priorities of

these partners.

TRAFFIC also works in close co-operation with the Secretariat of the Convention on

International Trade in Endangered Species of Wild Fauna and Flora (CITES).

EDITORIAL ANALYSIS

Tags: GS Paper 2, Important Aspects of Governance, Transparency and Accountability.

Context: The democracy is not just exercising the freedom to vote; it is way beyond it.

Background:

Civilisation progresses with the evolution of institutions designed by humans to govern their

affairs.

Institutions of electoral democracy have evolved over the centuries, with notable innovations

in the U.K., France and the U.S. that provided models for electoral democracies

everywhere.

These models have been vigorously exported by Western countries to promote democracy

around the world.

Now, the system of democracy invented in the West and exported to the rest is failing in the

West.

Elected governments are in office, but not in power, many countries in Europe cannot form

stable governments because the largest party does not command a majority, Coalitions are

unstable, Parliaments are unable to pass laws.

1. DEMOCRACY AND ITS DISCONTENTS

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By these yardsticks, democracy is shining in India. With a strong government at the Centre,

Parliament has passed a slew of big laws recently.

The most recent is the change in the governance setup of Jammu and Kashmir, which has

been haunting India‟s constitutional arrangements. However, democracy consists of much

more than elections and passage of laws.

What else democracy is?

India has a great Constitution. It conducts free and fair elections. Its Parliament has

passed many landmark laws since Independence.

Yet failures of governance (and democracy) in India can be seen on the ground, in so called

„backward areas‟ in the heartlands.

Indeed, the Indian government has justified its bold reduction of powers of Jammu and

Kashmir‟s elected Assembly on the grounds that democracy was not functioning within the

State and benefits of good governance were not reaching the citizens.

Democracies need an architecture of institutions. Some institutions provide the

vertical pillars.

Other institutions provide the lateral binders that give strength and stability to the

democratic structure.

The vertical and lateral pillars of democracy:

In the popular discourse about democracy, too much attention has been given to the vertical

institutions required for people to elect their leaders, and too little to the lateral institutions

required to create harmony amongst people.

Universal franchise, elections, and political parties fighting each other to win elections enable

a society to determine who is in the majority and has the right to govern.

The problem with a majoritarian democracy is that it is not designed to find solutions for

complex problems with many points of view.

A government with a majority, especially a large one, can become as authoritarian as a

dictatorial one. It can deny minorities their rights for their views to be considered while

framing laws and resolving contentious issues. Thus, a government elected by a majority

can justify the exclusion of the minority.

However, by excluding the views of the many that did not vote for it and quite often these

may even be the majority in the first past the post system a government reduces its own

effectiveness.

Those dissatisfied with the governments‟ decisions go to courts wherever courts are

independent, like in India. However, courts are not set up to find policy solutions to complex

problems and must interpret the laws as written.

Courts and Judicial activism:

In India, many have complained that courts are venturing into matters of governance that

they should not. This is a sign that something is missing in India‟s democracy.

When problems are complex, good governance requires effective methods for people‟s

participation.

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Referendums of the entire electorate give an illusion of good democracy that the people

have been consulted. Politicians on both sides of a referendum will run populist campaigns

appealing to the basest of instincts to sway the opinions of the masses.

Whereas, when the issue is complex, voters should be educated about what they are

voting for.

And then, when a small majority determines how all must go (52% wanted Britain to leave

the European Union versus 48% that did not), referendums become yet another example of

the problem with a majoritarian democracy rather than a good solution.

The layers of healthy democracy:

Three layers of institutions Healthy democracies need three vibrant layers of institutions.

At the bottom is the public space and second layer is media in which people must be

free to speak up if they want to.

Social media has enlarged the public space enormously. Many more people are

speaking up and many issues are being raised. Social media provides a good platform for

opposing views, but is glaringly inept at reconciling them. On the contrary it is heightening

divisive walls. Therefore, more problems require the attention of constitutional institutions

above.

On the top is the layer of constitutional institutions — parliaments, courts, etc.

With democratic governance slipping into ineffectual logjams, it is tempting to close down

the public space at the bottom, or to impose a majoritarian view from above to strengthen

the government.

There is fear that India may be slipping down this path, which may strengthen government

on the ground, while stifling democratic governance. It is the road to „maximum government,

minimum governance‟.

Way forward:

The solution for strengthening governance and democracy at the same time is to

strengthen the middle layer of institutions within democracies that lie between the

open public sphere and formal government institutions.

These are spaces where citizens with diverse views can listen to each other, and

understand the whole system of which they are only parts.

Neither elected assemblies nor social media provide such spaces.

Even think tanks have become divided along ideological and partisan lines.

It is imperative for India to build intermediate level, unofficial or semi official

institutions for nonpartisan deliberation amongst concerned citizens.

The government must give more space for such institutions to form and operate.

When there is global despair about the ability of democratic institutions to deliver the

benefits of good governance to citizens, this innovation must become India‟s

invaluable contribution to the history of democracy‟s evolution.