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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.