INSIGHTSONINDIA DECEMBER 2017

Transcription

1 INSIGHTS int EDITORIAL INSIGHTSONINDIA INSIGHTS int EDITORIAL DECEMBER

2 INSIGHTS int EDITORIAL Table f Cntents INSIGHTS int EDITORIAL 2 [1] Scripting anther Asian narrative 2 [2] Crypt currencies here t stay 4 [3] A misleading hunger index 6 [4] Disability rights ver time 8 [5] GST pens up a lt f data fr plicymaking 10 [6] Of crime and punishment 12 [7] Is there a case fr a relk at EVMs? 15 [8] Unable t see the bamb fr the trees 17 [9] Getting back n track 18 [10] Pwering rural healthcare 21 [11] Fr clean air, India needs a plicy leap 23 [12] Disqualificatin mves 25 [13] Lking fr balance in pwer 27 [14] Changed pririties 29 [15] Fr a safe cyberspace 31 [16] Recnsider the Rules 33 [17] Shuld adultery be a crime? 36 [18] A capital mistake 37 [19] Anther tl f reslutin : FRDI Bill 39 [20] Seeing thrugh a glass darkly 42 [21] Pwer f the cllective 44 [22] Cuntering grwing inequality 45 [23] There isn t ging t be a war between India and China tday 47 [24] Out at sea 49 [25] Grwing Frests 51 RSTV/ LSTV Synpsis 53 [1] Sri Lankan PM s Visit: Strategic & Ecnmic Significance 53 [2] Wassenaar Arrangement Implicatins 54 AIR Sptlight Summary 55 [1] Nuclear Weapns and Security cncerns 55 [2] Balance between Legislature, Executive and Judiciary 56 [3] Glbal Entrepreneurship Summit

3 INSIGHTS int EDITORIAL Cntext: INSIGHTS int EDITORIAL [1] Scripting anther Asian narrative Japan has lng been an anmaly: an ecnmic pwerhuse within a gestrategic pygmy. But China s muscular ascent cmbined with the unpredictability f a Trump-led U.S. is causing Tky t rethink its rle in Asia. Frm prpsing new security dialgues, t taking the lead in develping multilateral trade agreements, it is beginning t pick up sme f the slack left by the U.S. s America First -influenced withdrawal frm leadership in Asia. Increasing China s internatinal influence Fr President Xi Jinping s new China, the days f hiding capabilities and biding time f the Deng era are finally ver it s time t becme a glbal leader in terms f cmpsite natinal strength and internatinal influence. Chinese revisinist claims in the land and ceanic space have been a majr surce f cncern. Beijing s deplyment f naval assets t enfrce its claims acrss the Suth China Sea, cnstructin f artificial islands in the regin, and the rejectin f a UN tribunal judgment n a cmplaint filed by the Philippines, last year have nly strengthened this feeling. China has als been increasing its naval presence, including dispatching its nuclear submarines n patrl, in the Indian Ocean. Alng with military assertin, Beijing has als been stepping up its plitical and ecnmic ftprint in the regin thrugh its BRI (Belt and Rad Initiative). China s superpwer ambitins are bund t have a system-shaping impact n the Asian regin. There will be Chinaled alliances, Chinese client states and the establishment f Chinese spheres f influence. Japan-under the pst-war cnstitutin Under the pst-war cnstitutin, Japan is nt allwed t have ffensive military frces. Its Article 9 declares the Japanese peple frever renunce war as a svereign right f the natin and the threat r use f frce as means f settling internatinal disputes. Japan has the Jieitai r Japan Self-Defense Frces. The SDF is a full-fledged military, with army, navy, and air frce branches. Technically the SDF is nt allwed t cnduct ffensive peratins r t deply utside Japan, but it is still a very ptent military frce. Accrding t Article 9 f the Japanese Cnstitutin war is illegal. Hwever, the Emperr f Japan is allwed t declare peace. Japan s new plicy f Military nrmalisatin Japan is in a ptentially explsive neighburhd, and it n lnger believes that a whle scale reliance n the U.S. fr a defence umbrella is sufficient t secure its best interests. Japan is in an era when Japan has t exert itself diplmatically by drawing a big strategic picture. Military nrmalisatin is ne prng f Japan s new freign plicy, but even if a cntrversial revisin f Japan s pacifist Cnstitutin, as prpsed by newly re-elected Prime Minister Shinz Abe ges thrugh, the archipelag s armed frces will remain under strng, self-impsed cnstraints. The cnstitutinal revisin wuld merely recgnise the legality f Japan s lng extant Self-Defense Frces (SDF). Offensive weapns and pre-emptive strikes wuld remain utlawed. Measures taken by Japan t Cunter China s influence Remilitarising alne will nt prvide Japan with an effective slutin t its diplmatic dilemmas. Tky needs t use its strengths, its capital, its technlgical knw-hw and its demcratic credentials t win friends and influence cuntries acrss the regin and beynd. It needs t beat infrastructure sugar daddy China at its wn game. 2

4 INSIGHTS int EDITORIAL 1. Taking up a leadership rle: A large part f China s rise has t d with its indispensability t glbal trade. But Japan is a trading heavyweight t, and is attempting t stake leadership n the reginal platfrm with the Trans-Pacific Partnership (TPP). With the U.S. s departure frm trade negtiatins, Japan has becme the principal driving frce keeping the deal alive. At Nvember s Asia-Pacific Ecnmic Cperatin summit in Vietnam, Japan gt the 11 cuntries still invlved t agree n the cre elements f a deal. It wants t lead rule-making n trade in the Asia Pacific, rather than let China set the agenda with alternatives t TPP such as the Beijing-backed Reginal Cmprehensive Ecnmic Partnership (RCEP). 2. Stepping up aid and investment in Sutheast Asia: Lking t India Japan is als stepping up aid and investment in Sutheast Asia. A train line near Manila, a seaprt in Cambdia, and assistance in the recnstructin f Marawi City in the Philippines are sme examples. As the tp surce f develpment aid t Vietnam, it has helped cnstruct a new airprt terminal in Hani as well as the first subway line in H Chi Minh City. Japan recently cmmitted 1 trillin yen ($8.7 billin) t the Philippines ver the next five years, with a cntinued fcus n infrastructure develpment. Japanese investment in majr Sutheast Asian cuntries is estimated t have averaged $20 billin per year, frm 2011 t 2016, mre than duble the average annual flws between 2006 and Japan and India have annunced an Asia-Africa Grwth Crridr, aimed at creating sea crridrs linking the cuntries f the Ind-Pacific t Africa. In additin, Japan is cperating with India in third cuntry infrastructure prjects such as Iran s Chabahar Prt, Sri Lanka s Trincmalee prt, and the pssible jint develpment f the Dawei prt alng the Thai-Myanmar brder. Japan has bagged the $17 billin cntract t build India s first high speed railway line, linking Mumbai and Ahmedabad. Tky is als investing in develpment prjects in the Nrtheast and the Andaman and Nicbar islands. And Japan s Diet gave the g ahead t a Japan-India civil nuclear energy deal earlier this year. The pssibility f purchasing Japanese submarines and search-and-rescue planes t help the Indian Navy is being discussed. Creating a Quad A free and pen Ind-Pacific, a phrasing that places India as a majr actr in the Pacific, is an idea being prselytised by Japan in cnjunctin with the U.S. This is a respnse t cncerns ver the expansin f the Chinese navy and Beijing s territrial claims in the Suth China Sea, waters thrugh which a huge majrity f Japanese energy supplies transit. It is against this backgrund that Tky s champining f the Quadrilateral dialgue with the U.S., India and Australia aimed at creating a cmmunity f demcratically riented interests in the regin must be understd. Hwever, The Quad is yet t decide what its real aim is: maritime security, cnnectivity, cuntering China s mves in the Ind-Pacific and n the Belt and Rad Initiative (BRI), r a cmbinatin f all three. Cnclusin Tky wants t use the bilateral ties it is develping t create a multilateral architecture in the regin. Like Germany in pst-wrld War II Eurpe, Japan is aware that unilateral mves by it invariably cnjure up images f militarism and expansinism. Hwever, withut making genuine amendments fr its past aggressins, an idea that Mr. Abe des nt seem interested in, Japan s attempts t shape the future f the regin will remain cnstrained. 3

5 INSIGHTS int EDITORIAL Cntext: [2] Crypt currencies here t stay Tday crypt currencies have becme a glbal phenmenn knwn t mst peple. While still smehw geeky and nt understd by mst peple, banks, gvernments and many cmpanies are aware f its imprtance. Bitcins were in news recently after a massive glbal ransm ware attack WannaCry hit systems in ver 100 cuntries. The cyber criminals demanded a fee f abut $300 in crypt-currencies like bitcin fr unlcking affected devices. In Octber this year, billinaire Warren Buffet had described Bitcin as a real bubble, and said that ne culdn t value it cnsidering it was nt a value-prducing asset. Why the interest in virtual currencies? Bitcin saw its value trading at abve $10,000 (abut 6.43 lakh) per bitcin, up by abut 900% frm its value n January 1, At a time when the Indian gvernment is in the prcess f determining the legality f crypt currencies, it is imprtant t understand what exactly a virtual currency means fr the layman. Hw it all started? The rigin f Bitcin is unclear, as is wh funded it. A persn r a grup f peple, that went by the identity f Satshi Nakamt are said t be the ne/s wh cnceptualised an accunting system in the aftermath f the 2008 financial crisis. Nakamt published a white paper abut a peer-t-peer electrnic cash system, which wuld allw nline payments t be sent directly frm ne party t anther withut ging thrugh a financial institutin. What is blckchain? The transactins and the value f mney wuld be recrded digitally n a publicly available and pen ledger that cntains all the transactins ever made, albeit in an annymus and an encrypted frm. This ledger is called blckchain. Cnsidering the public and pen nature f the ledger, prpnents f this currency system believe, it culd help weed ut crruptin and inefficiencies in the system. Hwever, in December 2013, the Reserve Bank f India issued a warning that cautined the users abut the ptential risks f virtual currencies, including Bitcin. What is bitcin? Bitcin is ne f many cryptcurrencies that have gained ppularity acrss the wrld. A cryptcurrency is a basically a digital asset that has been created t functin as a medium f exchange, like cash. It uses cryptgraphy t ensure the security f transactins authenticatin and preventin f duplicate transactins and t cntrl the creatin f new units f currency. This is different frm cash in that cryptcurrencies have n physical frm. These blur the bundaries between fiat and nn-fiat currencies. They are simply numbers n a screen and there is n central bank that issues new currency. Hwever, bitcin has emerged as the ppular face f cryptcurrencies. Fiat and Nn-fiat currency A fiat currency is any currency that has n intrinsic physical value, but whse value is established by gvernment decree. Fr example, mst natinal currencies arund the wrld, including the Rupee and the Dllar, are fiat currencies as their values are dictated by the gvernment. Nn-fiat currencies such as the Gld Standard have mre r less been effectively phased ut, as they require adequate physical stckpiles t maintain their value.0 Hwever, the new breed f digital cryptcurrencies such as Bitcin blurs the bundaries between fiat and nn-fiat they dn t have any physical value as such, but are als nt gvernment-cntrlled. This has created uncertainties abut their rle in the mdern financial system. 4

6 INSIGHTS int EDITORIAL What are the regulatins? While sme f the cuntries such as Nepal, Bangladesh, Kyrgyzstan have declared Bitcins as a means f payment illegal and in vilatin f the state law, a majrity are yet t take a stand n it. In December 2013, RBI issued a warning with cautin t users, hlders and traders f virtual currencies, including Bitcins, abut the ptential financial, peratinal, and legal, custmer prtectin and security related risks that they are expsing themselves t. Bitcins are currently unregulated in India. There are n specific legal framewrks fr Bitcins and cryptcurrencies in India yet. Can yu use bitcin as currency? At the mment, the Reserve Bank f India has banned transactins in India using cryptcurrencies. In ther wrds, while yu can buy and sell cryptcurrencies n nline exchanges, yu can t use them t pay fr gds and services within the cuntry. In April, the gvernment had cnstituted an inter-disciplinary panel t lk int the legality f cryptcurrencies and suggest a way frward, which included a having a regulatr if they are legalised. The panel, which included fficials frm the Department f Ecnmic Affairs, Department f Financial Services, Department f Revenue, Ministries f Hme Affairs and Electrnics and Infrmatin Technlgy, the Reserve Bank f India, NITI Aayg, and the State Bank f India, submitted its reprt in August and it is being examined. Prs and cns It is pssible t send and receive bitcins frm any part f the wrld irrespective f traditinal hurdles like natinal brders and banking regulatins. Bitcin des away with the need fr a regulatr. By making everything public, bitcin negates the need fr a middleman. Accrding t bitcin.rg, n individual r rganisatin can manipulate Bitcins because it is cryptgraphically secure and d nt cntain custmers persnal infrmatin. Hwever, nt being backed by any gvernment entity is Bitcin s biggest disadvantage and affects its adptin by peple. With less Bitcins in circulatin and the number f businesses using Bitcin still very small, relatively small events, can significantly affect the price. One f the biggest prblems that cryptcurrencies face is acceptance. Hwever, many businesses have started accepting Bitcins. One f the largest PC cmpanies in the US, Dell, started accepting Bitcin in Travel website Expedia allws yu t pay with Bitcins. Tech giant Micrsft als embraced bitcins in December In India t, the adptin has started. Bengaluru-based exchange Uncin has a grwing list f merchants n its website that includes e-cmmerce firms, web-hsting cmpanies and even schls. What d the experts say? Experts and central banks acrss the wrld are slwly arriving at the cnclusin written abut in varius research papers but nt yet implemented in plicy that cryptcurrencies are here t stay. The nly way t regulate their value and quantity is fr central banks t issue their wn digital currencies. While the value f digital currencies such as bitcin are market-determined, depending n what smebdy is willing t pay, a central bank-backed digital currency will have its value cntrlled t an extent by the central bank itself, much like any ther majr currency in the wrld. RBI s research arm Institute fr Develpment and Research in Banking Technlgy put ut a paper in favur f the blckchain technlgy. There is still a lt f analysis t be dne regarding the effect f such a central bank-backed digital currency n factrs such as inflatin and price levels. 5

7 INSIGHTS int EDITORIAL Cntext: [3] A misleading hunger index Per capita fd prductin in India has increased by 26% ( t ), while it has dubled in the last 50 years. While this kind f grwth rate in fd prductin is expected t reduce hunger significantly ver time, the Glbal Hunger Index (GHI) prepared by the Internatinal Fd Plicy Research Institute (IFPRI), shws India s hunger level in very pr light. With ver 21 per cent f children wasted-lw weight fr height, India has been ranked 100th amng 119 develping cuntries n the Glbal Hunger Index (GHI), behind Nrth Krea, Bangladesh and even Nepal. Glbal Hunger Index The Glbal Hunger Index (GHI) is designed t cmprehensively measure and track hunger glbally and by cuntry and regin. The GHI highlights successes and failures in hunger reductin and prvides insights int the drivers f hunger. By raising awareness and understanding f reginal and cuntry differences in hunger, the GHI aims t trigger actins t reduce hunger. The GHI cmbines fur cmpnent indicatrs: 1. the prprtin f the undernurished as a percentage f the ppulatin; 2. the prprtin f children under the age f five suffering frm wasting (lw weight-fr-height); 3. the prprtin f children under the age f five suffering frm stunting (lw height-fr-age); 4. the mrtality rate f children under the age f five Glbal Hunger Index 2017 The 2017 Glbal Hunger Index (GHI) reprt the twelfth in an annual series presents a multidimensinal measure f hunger at the glbal, reginal, and natinal levels. It shws that the wrld has made prgress in reducing hunger since 2000, but that this prgress has been uneven, with levels f hunger still serius r alarming in 51 cuntries and extremely alarming in ne cuntry. This year s reprt shines a light n the inequalities underlying hunger including gegraphic, incme, and gender inequality and the inequalities f scial, plitical, and ecnmic pwer in which they are rted. Key highlights f the reprt At 21.8 n a scale f 100, the average GHI scre fr 2017 is 27 percent lwer than the 2000 scre (29.9) Despite these imprvements, a number f factrs, including deep and persistent inequalities, undermine effrts t end hunger and under nutritin wrldwide. As a result, even as the average glbal hunger level has declined, certain regins f the wrld still struggle with hunger mre than thers, disadvantaged ppulatins experience hunger mre acutely than their better-ff neighburs, and islated and war-trn areas are ravaged by famine. In early 2017, the United Natins declared that mre than 20 millin peple were at risk f famine in fur cuntries: Nigeria, Smalia, Suth Sudan, and Yemen. These crises are largely manmade, the result f vilent cnflict and internal strife that are preventing peple frm accessing fd and clean water and keeping aid rganizatins frm reaching peple in need. At the reginal level, Suth Asia and Africa suth f the Sahara have the highest 2017 GHI scres 30.9 and 29.4, respectively, indicating serius levels f hunger. Given that three-quarters f Suth Asia s ppulatin resides in India, the situatin in that cuntry strngly influences Suth Asia s reginal scre. At 31.4, India s 2017 GHI scre is at the high end f the serius categry. The 2017 GHI scre has India ranked 100 ut f the 119 cuntries listed. India s ranking in terms f child mrtality, child stunting and child wasting is 80, 106 and 117, respectively. 6

8 INSIGHTS int EDITORIAL India s child wasting rate has nt substantially imprved ver the past 25 years. But the cuntry has made prgress in ther areas: Its child stunting rate, while still relatively high at 38.4 percent, has decreased in each f the reference perids in this reprt, dwn frm 61.9 percent in India has implemented a massive scale-up f tw natinal prgrams that address nutritin the Integrated Child Develpment Services and the Natinal Health Missin but these have yet t achieve adequate cverage. Areas f cncern include the timely intrductin f cmplementary fds fr yung children (that is, the transitin away frm exclusive breastfeeding) the share f children between 6 and 23 mnths ld wh receive an adequate diet a mere 9.6 percent fr the cuntry; husehld access t imprved sanitatin facilities a likely factr in child health and nutritin Why d sme analysts say Hunger Index is highly misleading? Undernurishment and child mrtality each make up a third f the GHI scre, while child stunting and child wasting make up a sixth f the scre, and tgether make up a third f the scre. Three f the fur indicatrs, refer nly t children belw five wh cnstitute nly 11.5% f India s ppulatin. Further, the percentage f the undernurished ppulatin is inclusive f under nutritin amng children. This way, the GHI assigns 70.5% weightage t children belw five wh cnstitute nly a minr ppulatin share and 29.5% weightage t the ppulatin abve five, which cnstitutes 81.5% f the ttal ppulatin. Therefre, the term Hunger Index is highly biased twards under nutritin f children rather than representing the status f hunger in the verall ppulatin. It wuld be mre apprpriate t term the cnceptualisatin and cmpsitin f this cmpsite index as a Glbal Hunger and Child Health Index than as a Glbal Hunger Index. Evidence shws that weight and height f children are nt slely determined by fd intake but are an utcme f a cmplex interactin f factrs related t genetics, the envirnment, sanitatin and utilisatin f fd intake. The IFPRI acknwledges that nly 45% f child mrtality is due t hunger r under nutritin. Calculating hunger The incidence f hunger is taken as the prprtin f the ppulatin whse fd intake prvides less than its minimum energy requirements. The figure f the incidence f hunger depends n energy nrms and the methdlgical apprach used in its estimatin. There is still incnclusive debate n the cut-ff fr minimum energy requirement calculatin. At a glbal level, the Fd and Agriculture Organisatin f the United Natins (FAO) has an average nrm f 1,800 kcal, while the Indian Cuncil f Medical Research-Natinal Institute f Nutritin (ICMR-NIN) specified average nrm f 2,400 kcal fr rural areas and 2,100 kcal fr urban areas in India, varies acrss age, gender and activitylevel. There is a strng case t revise the ICMR-NIN nrms as the actual requirement f energy is decreasing due t a shift twards mechanisatin and mre cngenial wrk cnditins and envirnment. There is a large difference in the incidence f undernurishment (hunger) reprted by the FAO and estimates prepared by varius experts. It fllws frm the large variatin in the chice f nrm and methdlgy and data used fr such estimatin. Plicy Recmmendatins Althugh enugh fd is prduced glbally t feed the wrld, hunger persists largely the prduct f varius and severe inequalities. Yet neither hunger nr inequality is inevitable; bth are rted in uneven pwer relatins that ften are perpetuated and exacerbated by laws, plicies, attitudes, and practices. 7

9 INSIGHTS int EDITORIAL The fllwing recmmendatins aim at redressing such pwer imbalances in rder t alleviate hunger amng the mst vulnerable: Gvernments must actively include in the plicy-making prcess underrepresented grups, such as small-scale farmers, that are invlved in prducing fd and feeding peple. Internatinal bdies aiming t increase fd and nutritin security must ensure the meaningful participatin f peple s mvements and civil sciety rganizatins frm all parts f the wrld t generate mre prductive debates arund paradigms f fd systems. Gvernments must ensure space fr civil sciety t play its rle in hlding decisin makers t accunt n their bligatin t prtect and ensure the Right t Fd. Gvernments shuld create and enfrce regulatry framewrks t safeguard citizens especially the mst vulnerable frm the negative impacts f internatinal trade and agriculture agreements. Natinal plicies shuld take int accunt hw hunger and malnutritin are distributed acrss the ppulatin, and hw pwer inequalities affect different grups in sciety. Increase Supprt fr Small-Scale Fd Prducers: Gvernments shuld build the capacity f small-scale prducers, particularly wmen, by ensuring access t public services such as infrastructure, financial services, infrmatin, and training. Natinal gvernments must prvide access t educatin and create scial safety nets. Hld Gvernments Accuntable with Timely Data. Way Frward The 2017 Glbal Hunger Index shws psitive develpments n many frnts, but there are still deep inequalities in hunger and under nutritin at the reginal, natinal, and subnatinal levels. T many peple lack access t the quantity and quality f fd they need. And t many peple are nt healthy enugh t nutritinally benefit frm fd. The United Natins Sustainable Develpment Agenda includes the gal f ending hunger wrldwide, while leaving n ne behind (UN 2015). Examining hunger thrugh the lens f inequality brings int sharper fcus thse ppulatins, at all levels, wh have s far been left behind. As we make prgress in cmbating hunger, we shuld apply lessns learned and cncentrate attentin and resurces n the areas where hunger and under nutritin are still unacceptably high in rder t further decrease hunger in the future. Cntext: [4] Disability rights ver time Wrld Disability Day is being celebrated tday n December 3, The annual bservance f Internatinal Day f Disabled Persns was first prclaimed in The United Natins General Assembly reslutin 47/3 brught this bservance int being. The bservance f the day aims at bridging the gap in the sciety and brings an understanding f disability issues and brings dignity, rights, and well-being f persns with disabilities. It aims t bring the disabled peple at the frefrnt in the sciety and get them included in every aspect f plitical, scial, ecnmic and cultural life Assumptins abut the disabled: Disabled peple are the mst vulnerable sectin f sciety and have been ignred by state and sciety alike since lng. Disabled peple have always been dependent and, therefre, need helping hands and gracius charity. Disabled peple are victims f their wn bad luck. Disability is the punishment fr sins he has never cmmitted in this life. 8

10 INSIGHTS int EDITORIAL Such assumptins abut the disabled d nthing t help them. This apprach perpetuates the steretype f the disabled as victims and bjects f pity and charity. The Disability Rights Mvement: Unlike ther mvements like Feminism r Lesbian Mvements which have distinct agendas f either gender justice r the right t sexual rientatin, the Disability Rights Mvement des nt have systematic path. Disability Rights Mvement even in the West has a very recent rigin and tries t draw strength frm the traditinal legal rder rather than by critiquing r decnstructing it. The Disability Rights Mvement in India and in Third Wrld cuntries is disrganized and there are n written dcuments t trace its rigin. Instead f cming tgether, sectins f disabled viz. blind persns, persns with physical disability, deaf and dumb persns and thse with mental disabilities hare launched their mvements and struggles separately, mainly thrugh NGOs. The disability rights mvement gained mmentum in the 1970s when disability was started t be seen as a human rights issue. This is when the UN General Assembly prclaimed in 1976 that 1981 wuld be the Internatinal Year f Disabled Persns. Later, was marked as the United Natins Decade f Disabled Persns. The UN Cnventin n the Rights f Persns with Disabilities (UNCRPD), 2006 was a big step twards viewing persns as subjects with rights and nt bjects f charity. Further, the 2030 Agenda fr Sustainable Develpment pledges t leave n ne behind. It states that persns with disabilities must be bth beneficiaries and agents f change. Hwever, attitudinal, institutinal, and infrastructural barriers remain, with the Wrld Bank stating that 15% f the wrld s ppulatin experience sme frm f disability and that they n average, as a grup, are mre likely t experience adverse sciecnmic utcmes than persns withut disabilities. In 2011, the Wrld Health Organisatin came up with a wrld reprt n disability fr the first time. Its intrductin shwed hw disabled persns aren t ther peple, but that all f us at sme pint will be temprarily r permanently impaired and thse wh survive t ld age will experience increasing difficulties in functining. Gvernment s Relief fr the disabled in India: Until 1995 there was n law that even defined discriminatin against peple with disabilities. It is nly with the Persns with Disabilities Act, passed in 1995 that discriminatin specifically against persns with disabilities came under the purview f the law. Objective f the Act was t spell ut the respnsibility f the State twards the preventin f disabilities, prtectin f rights, prvisin f medical care, educatin, training, emplyment and rehabilitatin f persns with disabilities. In India, accrding t the 2011 Census, 2.21% f the ppulatin has ne r multiple types f disabilities, making the cuntry hme t ne f the largest disabled ppulatins in the wrld. Legislatin mved frward last year in India when the Rights f Persns with Disabilities Act was passed, replacing the Persns with Disabilities Act, Rights f Persns with Disabilities Act, 2016 The 2016 Act recgnises 21 kinds f disabilities cmpared t the previus seven, including dwarfism, speech and language disability, and three bld disrders. It fulfils the bligatins t the United Natinal Cnventin n the Rights f Persns with Disabilities (UNCRPD), t which India is a signatry. Respnsibility has been cast upn the apprpriate gvernments t take effective measures t ensure that the persns with disabilities enjy their rights equally with thers. 9

11 INSIGHTS int EDITORIAL Every child with benchmark disability between the age grup f 6 and 18 years shall have the right t free educatin The new Act als increased the quta fr disability reservatin in higher educatinal institutins frm 3% t 5% and in gvernment jbs frm 3% t 4%, fr a mre inclusive sciety. The Act prvides fr grant f guardianship by District Curt under which there will be jint decisin making between the guardian and the persns with disabilities. Brad based Central & State Advisry Bards n Disability are t be set up t serve as apex plicy making bdies at the Central and State level. Creatin f Natinal and State Fund will be created t prvide financial supprt t the persns with disabilities. Way frward Legislatin alne is nt enugh; implementatin remains abysmal. Fr instance, data frm the Natinal Centre fr Prmtin f Emplyment fr Disabled Peple shw that 84% f seats fr persns with disabilities lie vacant in tp universities. The success f this Act wuld, hwever, depend much upn the extent t which the plitical leaders and bureaucratic executive internalizes the values, sensibilities and gals enshrined in the Act. If persns with disability are t be regarded as full citizens f India, their right t equal cncern and respect must find its expressin in the supreme law f the land. While we have a lng way t g in implementing these laws, we must als keep in mind that a ne-size-fits-all apprach is unhelpful fr disabled persns. Levels and types f disabilities differ and s d needs. Cntext: [5] GST pens up a lt f data fr plicymaking The Chief Statistician f India speaks f the ecnmy, the meaning f the new series f GDP data, and the need t wait fr the impact f demnetisatin t unfld. What has been the impact f restcking n the grwth f the manufacturing sectr in Q2? During the perid just befre the GST was launched and the Q1 estimates, firms were clearing inventry because f the issues invlved with the tax treatment f gds prduced prir t the GST rllut and selling prducts manufactured pre-gst in the pst-gst regime. The nly statistical evidence that is available is in the cmpany filings which were made available fr Q1. There, the change in stck figures was sharply negative. In manufacturing cmpanies, the change in stcks figure is negative fr Q2 as well. Mst cmpanies draw dwn their inventries during the festive seasn and maintain an inventry balance in the slack seasn, partly t smth prductin ut. Factry utput recrded a sharp rebund in August t tuch a nine-mnth-high grwth f 4.3 per cent during the mnth against a dwnward revised 0.9 per cent grwth recrded in July, accrding t data released by the Central Statistics Office (CSO). The surge in industrial prductin in August was led by the 3.1 per cent expansin in the manufacturing sectr, primarily as restcking f manufactured items picked up steam after the intrductin f the Gds and Services Tax (GST) and prir t the festive seasn. While the impact f pst-gst restcking may have started t fade, inventry building prir t the festive seasn is likely t have blstered manufacturing grwth. What mre can be dne t capture data f the infrmal sectr? The infrmal sectr is defined as that part f the ecnmy where the establishment des nt maintain regular accunts. It is infrmal because it is nt subject t mst f the traditinal ways in which yu can capture data. The infrmal sectr cnsists f all unincrprated private enterprises wned by individuals r husehlds engaged in the sale and prductin f gds and services perated n a prprietary r partnership basis and with less than 10 ttal wrkers. 10

12 INSIGHTS int EDITORIAL GST will certainly capture a lt mre mnthly data. Frmally, if yu lk at the GST frm, every prducer f a gd r service makes his payment and als gives sme details abut the prductin which is subject t tax. Frm that, cnclusins can be drawn. But, even with GST, yu are nt ging t get the infrmal sectr in that sense because the entities wh will be filing this regular mnthly return will be the larger cmpanies, nt the infrmal sectr. Insfar as the smaller cmpanies are cncerned, sme things will be pssible with the data frm the cmpsitin scheme data, but it wn t be as granular as yu get in the nn-cmpsitin scheme GST data. But fr the infrmal sectr, the principle surce f data is thrugh establishment surveys.regular establishment surveys, as recmmended by the taskfrce under [Arvind] Panagariya, will help here. Cmpsitin scheme under GST: Gds and Services Tax has brught in a new regime f business cmpliance in India. Large rganizatins have the requisite resurces and expertise t address these requirements. On the flip side, many start-ups and Small and Medium Enterprises (SMEs) may struggle t cmply with these prvisins. T reslve such scenaris, the gvernment has intrduced Cmpsitin Scheme under GST. When pting fr the Cmpsitin Scheme under GST, a taxpayer will be required t file summarized returns n a quarterly basis, instead f three mnthly returns (as applicable fr nrmal businesses). During 23rd GST Cuncil Meeting, threshld fr cmpsitin scheme has been increased t 1.5 Cr. Des GST pens up mre data fr plicymaking? GST pens up a lt. In additin t aggregates, we will als get data n inter-state transactins which were previusly nt available. This will give us a much better picture f a spatial spread f ecnmic activity. Earlier it was assumed that when manufacturing has picked up, it has picked up unifrmly all ver India. What GST will allw us t d is get a spatial perspective n this. We may well find that the pickup has taken place in X band f States and nt in Y band. That srt f infrmatin will be very useful t the plicy establishment when they start lking at GST data mre clsely. With mre than three quarters wrth f data, can yu nw estimate the effect f demnetisatin? T quantify what demnetisatin did r did nt d, we wuld need t d a prper exercise where we wuld have a cunterfactual cmpared t the pst-demnetisatin exercise. Statistically, that will nt happen fr sme time because it will need lng enugh time series t generate cunterfactuals and d the cmparisn. It is imprtant t nte that all that demnetisatin cnstituted was less than a tw quarter perid in which there was a currency squeeze. By and large, large entities did nt shw much f an impact, as revealed in crprate filings. Then everybdy said that this will be taking place in the infrmal sectr. Nt because there was any data fr it, but because there must be an effect, and if it s nt in the frmal sectr, it must be in the infrmal sectr. Fair enugh. But the prblem is that the infrmal sectr is certainly cash dependent but it is als relatinship dependent. The demnetisatin effect has been verblwn insfar as the negative effect is cncerned n accunt f neglect f this channel f credit. Further, the demnetisatin stry is mre cmplicated than just the cash change stry. There is a larger narrative hidden behind it in trying t prmte digital transactins. What thse impacts are ging t be, we are still trying t see. What yu d see is that the trajectry f digital transactins has changed. Since the release f the new series f GDP data, the gvernment has received criticism regarding the back series f the data sets using the new cmputatin methds. By when can we expect this t be released? The Ministry f Crprate Affairs (MCA) gave us a much bigger picture f the crprate structure. The earlier data that we had abut the crprate structure is what we had frm the listed cmpanies. The prblem we face is f using the lnger series f data n listed cmpanies and deriving a grwth pattern fr the full crprate structure frm it. This is analytically a challenging exercise. 11

13 INSIGHTS int EDITORIAL GST is ging t give us a database abut the ecnmy which is qualitatively very different frm anything we had in the past. It will give us, fr example, a transactinal relatinship acrss the cuntry which we did nt have earlier. We will be able t build it int ur GDP cmpilatins and imprve its quality enrmusly. But fr smebdy wh asks fr a back series n this methdlgy, the answer is nt ging t be easy. This is smething that it is imprtant t recgnise. When yu mdernise a statistical system and bring in new ways f capturing data which did nt exist in the past, nt simply updates f the ld data, the prblem f backward prjectin is much mre difficult. This is smething that time-series ecnmists will have t live with. Hw wrried shuld ne be abut the Centre s fiscal deficit numbers? Recent CGA reprt says that the fiscal deficit is 96% f the ttal. Many ecnmist, jumped t all srts f cnclusins which may nt be true in ttality. Because, Gvernment prepned the Budget calendar t allw gvernment expenditure t start frm April 1. There is enugh evidence t suggest that that did happen. The Q1 gvernment expenditure cmpared t last year was much better. Therefre ne wuld expect that by the end f Q2, the average gvernment expenditure level wuld be higher than what it was last year. Many expenditure management cmmittees have pinted ut that the earlier tendency f delayed bunching expenditure in the last quarter is very bad fr bth the quality f expenditure and fiscal management. There were a number f recmmendatins abut hw the gvernment shuld better manage its expenditure s as t minimise the amunt f expenditure that takes place in the last quarter and last mnth. One cnsequence f this is that, during the year, the fiscal deficit is ging t rise because the revenue prfile has nt changed due t this manipulatin f budget dates. The gvernment has made sme effrts t push the revenue prfile back by changing the advance tax rules but thse effects will be small. By and large, the revenue prfile wuld remain the same as last year but the expenditure prfile has changed, s the lgical implicatin is that the fiscal deficit will rise at this stage. Cntext: [6] Of crime and punishment As the wrld encunters crime and criminality f a mre and mre cmplicated nature, as new kinds f crime surface and becme the nrm, recrd-keeping must be seen t keep pace with the changes. Adequate and up-t-date recrds n crime are necessary t tackle crime effectively. Lw cnvictin rates and a lack f a lawful definitin f crime mark criminal administratin in India. The Natinal Crime Recrds Bureau, which cmes under the Unin Ministry f Hme Affairs, has released its annual publicatin, Crime in India The NCRB is respnsible fr the cllatin f annual data n crime in the cuntry Crime in India reprt, 2016 The latest reprt is the 64th editin f Crime in India, which has been published since The annual reprt prvides infrmatin n all the FIRs registered under the Indian Penal Cde (IPC) as well as under Special and Lcal Laws (SLL) by the plice in all f India s states and Unin territries. Infrmatin is als prvided n the dispsal f the FIRs registered. Latest reprt frm NCRB has several additins new entities, new accunting, new chapters, and new kinds f crime and/r new recrds n crimes hithert undcumented in the reprt. Tgether, these new features appear t shw that an effrt has been made, under the current administratin, t evlve, expand and priritise effective and adequate recrd-keeping, which will nly help t bring India clser t glbal best practices in maintaining criminal and crime recrds. 12

14 INSIGHTS int EDITORIAL What s New in Crime in India 2016? 1. City-Wise Data Fr the first time, city-wise incidence f crimes and dispsal fr 19 metrplitan cities having a ppulatin abve 2 millin) has been included under different chapters like Crime against Wmen, Cyber Crimes and Ecnmic Crimes. The analysis itself shws that Delhi accunted fr 38.8% f ttal IPC crimes reprted in the cities, fllwed by Bengaluru (8.9%) and Mumbai (7.7%). Why is City-Wise Crime Data Necessary? India is in the middle f rapid and large-scale urbanisatin. Even as mre and mre peple tend t live in India s cities based n bth past and present migratin semi-urban and rural areas are als underging urbanisatin, ften withut mvement f peple. The net result is that mre and mre Indians are living, r beginning t live, in urban areas. Nw, with rising ppulatins and the increasing imprtance f metrplitan cities, it is necessary t cllect crime data specific t a particular city. Such data incentivises city administratins t make a sense f their law and rder situatin. It als helps them strategize effectively fr the maintenance f the same. Natinally cllating city-wise crime data wuld ffer lessns t urban law-keeping authrities acrss the cuntry that can als immediately learn frm relevant examples elsewhere. It further creates a healthy cmpetitin amng metrplitan cities t fare better in future recrds. Fr instance, if Delhi has high crime statistics, it can take its cue frm specific crimes, such as crime against wmen, where it fares prly and frame its strategy accrdingly. 2. Seizure f Arms, Ammunitins, Drugs & Currency It is als fr the first time that statistics n the seizure f arms, ammunitin, drugs and currency by the CAPFs/CPOs (Assam Rifles, CISF, BSF, CRPF, NIA and SSB) have been included. It is extremely imprtant t cllate data n arms and ammunitins t curb insurgency, gun vilence, and ther arms-related crimes. The fact is that, gun-running and arms smuggling is a very big prblem glbally. Added t that, the persistence f terrr and terrr-related treats make it imperative fr security frces and law-keepers t have data n arms at their dispsal. 3. New Chapter n Missing Persns A new chapter n Missing Persns & Children has been included in the Crime in India A ttal f 5, 49,008 individuals (2, 34,334 male and 3, 14,674 female) were reprted missing in This data is available state-wise, which makes it easier fr the administratin t target specific states and cunter prblems like human trafficking, kidnapping, etc. Als, there was a Supreme Curt directin regarding data n missing (and traced) persns and children. This, t, has been met in the latest NCRB reprt. Analysis f Crime in India 2016 reprt Crime in India 2016 presents a dismal picture f the key perfrmance statistic with nly 47% cnvictins in Indian Penal Cde (IPC) crimes at the natinal level. 1. Reprting and recrding Delhi prvides an interesting case study, where there is n plitical interference and the Plice Cmmissiner reprts t the Lieutenant Gvernr, and nt the Chief Minister. With a ppulatin smaller than Mumbai, it has tw times the number f plice statins. Yet, in Delhi, while 1, 90,876 persns were sent t trial last year, there were nly 9,837 IPC cnvictins in the year. In Delhi nly 58% f thse arrested were charge sheeted, while in Mumbai, mre persns were charge sheeted than were arrested fr IPC crimes. 13

15 INSIGHTS int EDITORIAL 2. DNA testing The key statistic f plice perfrmance is nt merely crrect reprting and recrding but charge sheets and cnvictins, as this impact n criminal behaviur. DNA testing, which can secure higher cnvictin rates, is, inexplicably, a lw pririty. Delays in this crucial evidence, which plays an imprtant factr in acquittals, are a setback as samples deterirate with time. 3. N f Crimes reprted Delhi accunts fr 38% f the ttal crime under the IPC. Delhi accunts fr five times the IPC crime when cmpared with Mumbai, and 33% f vilent crime in metrs when cmpared with 13% in Mumbai. Crime preventin is affected by cnvictin rate, beat patrlling, and by the plice and cmmunity wrking tgether. Unreslved issues There is a need t distinguish between accuntability and peratinal respnsibility with fcus n clear perfrmance measures. In additin t thse related t rles and respnsibilities, there are als systemic issues. Despite the recmmendatins f Law Cmmissins and the Supreme Curt, as well ging by experience in the develped wrld, we d nt have separate wings fr investigatin f crime and fr law and rder. Related t this refrm is the debate whether the plice are a functinal service based n skills f investigatin r a frce riented twards effect which n cmmand will perate regardless f the cst t itself r the scial fabric. Similarly, in mst cuntries, the prsecutr, and nt the plice, has discretin n whether t press charges as they invlve adjudicatin. Years ag, the Law Cmmissin had suggested a directrate f prsecutin independent f the plice t guide investigatin. There is still cntrversy ver which kinds f cnduct are best cntrlled by the applicatin f criminal law and which kinds by ther means. Cases related t liqur and mtr vehicles accunt fr mre than a third f all cases. The criminal justice system may be limited t crimes under the IPC, while enfrcement f administrative law and scial legislatin requires a different apprach invlving summary trials, changing scietal attitudes and mdes f behaviur. The effectiveness f prisns is nw being questined. Nearly tw-thirds f the prisn ppulatin is awaiting trial and half the number f under trials is nrmally acquitted. Over 80% f prisners are sentenced t terms less than three mnths, 40% are under 30 years ld, semi-literate and cnvicted under special and lcal acts. Criminlgists nw feel that shrt-term sentences expse such prisners t criminal indctrinatin in jail and scial cndemnatin n release, with a strng case fr greater reliance n cmpunding, prbatin and parle. Cnclusin Expanded crime recrds have been a necessity fr India, with its vast ppulatin and size. It was als necessary as we inhabit a wrld witnessing increasingly cmplex kinds f crime. The expansin itself pints at an evlving idea f crime and in recrd-keeping vis-à-vis crime. If law and rder agencies as well as security frces are t keep apace crime and criminals and bring them t bk, they must have the right intellectual and instrumental resurces. A large part f that is fulfilled by imprved recrd-keeping, which helps authrities as well as rdinary citizens understand better the crime scene and tackle the same, even as they adapt their behaviural patterns accrdingly. T maintain law and rder and defeat crime, first f all, crime must be knwn in its ttality t the extent pssible. It is encuraging t see steps being taken twards this as evidenced in Crime in India

16 INSIGHTS int EDITORIAL Cntext: [7] Is there a case fr a relk at EVMs? The issue f credibility f EVMs has becme quite cmplicated with different parties raising serius bjectins abut the functining f the machines. The cntrversy surrunding the electrnic vting machine (EVM) tampering was reignited after the Cngress and the Aam Aadmi Party raised the issue with the Electin Cmmissin. Sme leaders have gne t the extent f saying that the machines are being tampered with in rder t favur the ruling party. An pen challenge was given by EC t prve allegatins f EVM tampering. Hwever, in the recent lcal electins in U.P, Nt nly has the reliability f the machines been questined, s has the credibility f the EC. What is an EVM and hw exactly des it wrk? EVMs r electrnic vting machines prvide the vter with a buttn fr each chice which is cnnected by a cable t an electrnic ballt bx. An EVM cnsists f tw units cntrl unit and ballting unit and these tw are cnnected by a five-meter cable. When a vter presses a buttn against the candidate he/she wishes t vte fr, the machine lcks itself. This EVM can be pened nly with a new ballt number. This way, EVMs ensure that ne persn gets t vte nly nce. When were EVMs first used in electins? The use f EVM started back in 1982 Kerala Assembly electins. Prir t this nly ballt papers and ballt bxes were allwed. Prductin and Design There are nly tw Indian PSUs (Bharat Electrnic Limited (BEL), Electrnics Crpratin f Indian Limited (ECIL)) that manufacture EVM machines. The secret surce cde is nly accessible t a few engineers. Engineers wh are in the factry have n clue abut the cnstituency wise deplyment f the machine. Why is India using EVMs? Hlding free, fair, and fast electins is a crnerstne f demcracy and is guaranteed by the Cnstitutin. Intrductin f EVMs by due prcess f cnsultatin and cnstitutinal amendment in the 1980s and 90s was a step in the right directin t further strengthen the demcratic prcess in India, which is by far the largest demcracy in the wrld with mre than 800 millin vters. Using EVMs means ding away with paper ballts, and in turn, saving millins f trees frm being cut. It makes the entire prcess f vting simpler-a click n the buttn and yur vte is registered. EVMs, in the lng-run, have turned ut t be cst-effective as well. These machines dn t require electricity and run n batteries. At the same time, the EVMs are lighter and prtable cmpared t the huge ballt bxes. And mst imprtantly, EVMs have made the vte-cunting prcess much faster, delivering results in hurs as against manual cunting f vtes which culd take days. VVPAT cmes int the picture After cncerns were raised n whether EVMs are tamper-prf, the Electin Cmmissin appinted a cmmittee t lk int the pssibility f linking the EVMs t a paper trail machine t shw vters a slip with the party symbl fr which they have vted. As a result, vters can immediately check if their vte is cast fr the persn/party f their chice. The Vter-Verified Paper Audit Trail (VVPAT) was first used in 2013 in Nagaland s Nksen Assembly cnstituency. 15

17 INSIGHTS int EDITORIAL Questins are raised n EVMs, Yet again The EC has steadfastly maintained that the machines are perfect and that the sftware has been examined and re-examined by internatinal experts. On the ther, sme IIT-trained engineers have shwn hw the machines can actually be manipulated by remte devices, r by inserting pre-prgrammed chips, r by selectively tampering with nly 20% f them t secure a simple majrity. S, nly a few cnstituencies will have thse chsen machines and that wuld be enugh t tilt the balance in favur f the ruling party. The EC says these allegatins are utrageus because the whle system and prcess have been shwn t detractrs and the matter is settled. Yet it appears far frm settled. In the recent lcal electins in U.P., the BJP wn mre in places where there were machines withut the cncmitant paper trail, and nn-bjp parties wn mre where there were nly ballt papers. Nt nly has the reliability f the machines been questined, s has the credibility f the EC. It is fr the first time in India s electral histry that the EC has been suspected f bias in favur f a ruling party. Arguments that are in favur f Paper Ballt Fllwing arguments questin the EVM system and supprt Paper ballt. We invariably cme acrss reprts f malfunctining EVMs. The nly way an EVM can be tampered with is by physically pening it up and replacing the chipset inside it. The chipset used is nn-reprgrammable and data is burnt int the device. S, tday it is pssible t replace the chip if we have access t EVMs On the VVPAT (vter verifiable paper audit trail) frnt t, there are reprts f malfunctining. Als, as per the rules, paper ballts and VVPAT machines are nt cunted until the Returning Officer asks fr it. The utcme f the recent Uttar Pradesh civic plls suggests that tampering culd be happening. Oldest demcracy, US, still uses paper ballt system fr the presidential electins as Americans feel safer in using paper ballts as cmpared t electrnic vting machines. Hwever, there are prblems f paper ballt. Transprting them and guarding them is a prblem. Ballt bxes can be captured. Arguments in supprt f significance f EVMs EVMs led t a significant decline in electral fraud, particularly in plitically sensitive States as rigging electins became extremely expensive. Research has shwn a link between luminsity and grwth rate, suggesting that EVMs cntribute t develpment. EVMs empwered thse frm the weaker sectins f sciety wh were victims f plitical r electral vilence. In particular, wmen, lwer castes, and thse less educated were mre likely t participate in the electral prcess when EVMs were used. EVMs made the electral prcess mre cmpetitive. There has been a significant decline in the incidence f re-electin, and winning margins have reduced dramatically. Hwever, this des nt imply that we lwer ur guards. The very idea f demcracy is based n trust and belief in the fairness f the electral prcess where the lsing party lives t fight anther day. Any ersin f this trust and belief wuld be an irreversible prcess with an uncertain utcme. What is the Way frward? The cmpetitive electral prcess checks the self-interest f plitical leaders in their quest fr pwer. Our institutins, the EC, and the curts als share the respnsibility t check the pwers f ppularly elected leaders t ensure that demcracy des nt becme a mbcracy. 16

18 INSIGHTS int EDITORIAL Even thugh many arguments favur intrductin f EVMs was a step in the right directin, it is nt the final destinatin. If EVMs are manipulated, all the vtes culd be captured with a greater degree f sphisticatin t favur ne party. Tampering with EVMs wuld make bth capturing much easier. Besides, time and again the Electin Cmmissin (EC) has said that the machines cannt be hacked int as they are designed in such a manner s as t make that impssible. T vercme the dangers f manipulatin, we must remain sceptical and accept the reality that the EVM issue is nt simple. The fact that the issue is cmplicated necessitates a measure f cautin in its applicatin. Cntext: [8] Unable t see the bamb fr the trees Centre prmulgated Indian Frest (Amendment) Ordinance t encurage bamb cultivatin in nnfrest areas. Centre t de-regulate bamb prductin by amending the definitin f trees under the Indian Frest Act (IFA), The rdinance exempts bamb grwn in nn-frest areas frm the definitin f tree, thereby dispensing with the requirement f felling and transit permit fr its ecnmic use. Bamb grwn in the frest areas shall cntinue t be gverned by the prvisins f Indian Frest Act. Why was the amendment prmulgated? Bamb, thugh, taxnmically a grass, was legally defined as a tree under the Indian Frest Act, Befre this amendment, the felling and transit f bamb grwn n frest as well as nn-frest land attracted the prvisins f the Indian Frest Act and was a majr impediment fr bamb cultivatin by farmers n nn-frest land. In Nvember 2017, the Central gvernment issued an rdinance whereby bamb was deleted frm the clause that defines trees in the IFA. Indian Frest Act, 1927 The Indian Frest Act, 1927 was largely based n previus Indian Frest Acts implemented under the British. The mst famus ne was the Indian Frest Act f Bth the 1878 act and the 1927 ne sught t cnslidate and reserve the areas having frest cver, r significant wildlife, t regulate mvement and transit f frest prduce, and duty leviable n timberand ther frest prduce. It als defines the prcedure t be fllwed fr declaring an area t be a Reserved Frest, a Prtected Frest r a Village Frest. It defines what a frest ffence is, what are the acts prhibited inside a Reserved Frest, and penalties leviable n vilatin f the prvisins f the Act. The British mis-definitin was a blatant apprpriatin f peple s resurces. By including bamb under trees (Sectin 2(7)), and felled trees under timber (Sectin 2(6)), and timber in frest prduce (Sectin 2(4)(a)) regardless f its rigin, the British established state cntrl n all tree and bamb grwth. Felling, sale and transprt f any f these species then required state permissin. Pst-independence India cntinued this plicy. Remving bamb frm trees amunts t remving it frm state cntrl, and shuld be a huge step in favur f restring peple s rights. 17

19 INSIGHTS int EDITORIAL The Impediments 1. Multiple laws and caveats Mst States have passed their wn frest Acts and Rules. Many have als passed ther Acts that, fr instance, regulate tree felling utside frest areas, such as the Karnataka Preservatin f Trees Act, 1976, r regulate the mvement f frest prduce, such as the Madhya Pradesh Van Upaj (Vyapar Viniyaman) Adhiniyam Each f these Acts and Rules defines frest prduce and trees, and includes bamb in them. Amending the IFA des nt affect these State laws and, therefre, changes little n the grund. 2. Pint f wnership The bulk f bamb in the cuntry tday is n frest lands. But frest lands is an umbrella term that includes, fr instance, cmmunity frest lands in Nrtheast India.Fllwing the Supreme Curt s Gdavarman judgment, tree harvest in all these lands is regulated by the frest department. The questin is whether the amendment als cvers bamb grwn n these lands. Bamb frestry n private lands may nt be remunerative enugh fr farmers r desirable frm a fd prductin perspective. 3. Prblems fr guards at frest check psts t knw where a particular trucklad f bamb is cming frm. Trucks frm private lands will need transit passes, which means that frest fficials will have t mnitr the felling The Need f the Hur Deregulating bamb prductin des nt address the issue f building a transparently gverned frest sectr. Frest lands als includes cmmunity frest resurces t which title has been granted under the Frest Rights Act (FRA), Tens f thusands f gram sabhas have nw received such titles. The FRA explicitly grants rights ver bamb and ther nn-timber frest prducts such as tendu patta t frest dwellers. Nevertheless, frest fficials have cnstantly (illegally) denied bamb harvesting and transprt rights t cmmunities, citing the IFA. In Maharashtra, Gvernr unequivcally amended the IFA as well as ther State Acts t exclude bamb and tendu patta frm State cntrl, facilitating a mini-revlutin in frest-based livelihds in eastern Maharashtra in the past few years. The need f the hur is t fllw in Maharashtra s ftsteps and remve any caveats accmpanying the amendment f the IFA, and amend all ther State-level Acts and Rules t remve any cntradictins with the FRA. The remval f bstacles t the exercise f cmmunity rights will pen up an alternative frm f frestry, managed and regulated by cmmunities. The gvernment wuld d well t address the real challenge f building a prductive, bttm-up managed and transparently gverned frest sectr. Cnclusin The amendment was cleared as an rdinance and is therefre yet t get parliamentary backing. Hwever experts welcmed it saying that it remved ambiguity n the status f bamb and als brught it in harmny with the related Frest Rights Act. The measure will g a lng way in enhancing the agricultural incme f farmers and tribal, especially in Nrth-East and Central India. Cntext: [9] Getting back n track The natinal incme numbers fr the secnd quarter f released by CSO (Central Statistics Office) has cme as a relief. Grss Dmestic Prduct (GDP) has grwn at 6.3% year-n-year cmpared t 5.7% in the first quarter but still lwer than 7.5% a year ag. The frecasters and ecnmists were relieved that the annunced data had mstly cnfrmed t their expectatins. Industry and business peple were nw hpeful that this was the first instance f a sustained upward trajectry f grwth. 18

20 INSIGHTS int EDITORIAL The trend f declining grwth rate quarter after quarter, which was seen in the last ne year, has been reversed. This is a welcme sign. Hwever, dubts and cncerns persist fr sme. Why is GDP grwth rate in Q2 mre significant? It is true that develpment has many dimensins and fr a balanced view, ne must lk at all f them. Nevertheless, GDP is an imprtant indicatr f the perfrmance f the ecnmy, and a faster rate f grwth is mst ften a prerequisite fr rapid scial develpment. GDP grwth rate at cnstant prices during the secnd quarter f this fiscal is estimated at 6.3 percent which is up frm 5.7 percent ver the first quarter. It was 7.5 per cent in the crrespnding perid f last year. The GDP grwth has seen a reversal trend frm declining trend in the last five quarters. This grwth happened n the back f gd grwth in manufacturing sectr, electricity, gas, water supply and ther utilities. The manufacturing sectr in the secnd quarter f grew by 7 per cent against 1.2% in the previus quarter. This is really a turnarund. In the crrespnding quarter in the previus year, the grwth rate was 7.7%. Agriculture, frestry and fishing sectrs are estimated t have grwn by 1.7 per cent. The services cmpnent f trade, htels, transprt and cmmunicatins als grew smartly at 10.5% fr the half year, as cmpared t 8.3% a year ag. Three ther sectrs which have grwn strngly are the tw subsectrs under services trade, htels, etc., and public administratin besides electricity and ther utility services. The trade sectr grew by 9.9% Public administratin grew at 6%, much lwer than the previus quarters but still reasnably high. In fact, it is a gd sign that despite a lwer grwth f gvernment expenditure, verall grwth rate picked up. The grwth rate in agriculture was lw at 1.7%. This was t be expected because the grwth rate in agriculture was very strng the previus year. Even thugh the mnsn has been gd, ne shuld nt expect a much strnger grwth ver a gd year. The cnstructin sectr grew at 2.6% nly. It is yet t recver frm the impact f demnetisatin. But that shuld nt cme as a surprise as demnetisatin was directly meant t hurt the way business was being dne in this sectr. The mst significant aspect f this quarter s psitive result is that it has been significantly blstered by the grwth in manufacturing. It appears that the manufacturing sectr has cme ut f the disruptins caused by demnetisatin and mre particularly, the implementatin f the gds and services tax. Discuraging signals 1. Behaviur f GCFC: GCFC (which stands fr investment activity) refers t the net increase in physical assets within the measurement perid. It des nt accunt fr the cnsumptin (depreciatin) f fixed capital, and als des nt include land purchases. It is true that GFCF at current prices grew at 6.3% in Q2 against 2.9% in the crrespnding perid last fiscal. This shws an imprvement in terms f sentiment. Hwever, as the grwth rate f GFCF fell belw the grwth rate f GDP, the rati f GFCF t GDP has fallen frm 27.1% t 26.4%. This is truly disturbing. The fall must be due t a decline in private investment, as public investment during this perid has dne reasnably well. Withut a rise in the private investment rate, sustained high grwth cannt be maintained. 2. Dubts abut the high grwth in manufacturing Manufacturing t grew faster at 7% cmpared t nly 1.2% during the previus quarter. This data is a bit puzzling since it seems incnsistent with the data n the Index f Industrial Prductin (IIP), whse grwth is nly 2.2% during this quarter. 19

21 INSIGHTS int EDITORIAL There is, f curse, a difference between the natinal incme and IIP figures, the frmer dealing with value added and the latter with ttal prductin. Nevertheless, such sharp differences raise sme cncerns. In the new methdlgy in estimating value added in the manufacturing sectr, crprate data play a majr rle. This apprach is nt incrrect. Thugh many cmmittees n savings have recmmended the use f crprate sectr data, sme crss-checking is needed. The gvernment has set up the Natinal Statistical Cmmissin t give credibility t the Indian Statistical System. It must make effective use f it. Perhaps a clear statement frm the Natinal Statistical Cmmissin will help t put the dubts at rest. Exprts are the key The wrld at large is experiencing ne f its strngest grwth phases. Indeed, the Internatinal Mnetary Fund has revised its grwth prjectins upwards fr mst cuntries. In such a scenari, India s sluggish exprts are a cause f wrry. When the wrld ecnmy des well, India s exprts shuld be flurishing. Wrld trade in 2017 is expected t grw at 1.7% cmpared t 0.8% in Imprvement in the external envirnment may help t raise ur exprts. The exprting sectrs frtunes are clsely linked with the manufacturing sectr. Exprts create jbs, especially in small and medium enterprises. Why can t India s small enterprises sell n glbal prtals like Alibaba and Amazn? What are the hurdles? Is the GST framewrk (with delayed refunds) inhibiting the grwth f exprts? What are the plicy and ther bttlenecks? These are the issues that we need t grapple with t sustain an upward grwth path. Need f Private sectr investment After staying at the same level fr tw quarters, Grss Value Added (GVA) has mved up. This may be bradly taken t mean that the decline in grwth rate has bttmed ut. Perhaps the glitches caused by GST have been vercme. That nly amunts t the remval f a negative factr. Therefre, the immediate prspect is sme imprvement in the grwth rate in the next tw quarters. In the next tw quarters, there is nt much space fr public administratin t push the ecnmy. Last year, a reasnable rate f grwth was achieved because f the strng grwth f gvernment expenditure in all quarters. This year, at the end f the third quarter, fiscal deficit has almst reached the budgeted level. At this stage f the fiscal year, the deficit is running at 96.1% f the annual target. Last year at this stage it was nly at 79.3%. Hwever, as chief statistician f India said, pre-pne f the Budget calendar t allw gvernment expenditure t start frm April 1 may be ne f the reasns. Even after allwing fr sme slippage, it is unlikely that gvernment expenditure can act as a driver f grwth. Thus, while ne can expect the grwth rate t pick up in the secnd half, any substantial increase depends n the behaviur f private investment which remains intractable. All the imprvements in the Ease f Ding Business (EODB) ranking are meaningless unless we see substantial pick-up in private sectr investment. Way frward Fr grwth t pick up in a strng way, plicymakers need t address the issue f declining investment rate. As pinted ut already, the GFCF rati has fallen t 26.4%. As late as , the GFCF rate was 30.8%. Only when the reversal f this trend happens can we be assured f a sustained high grwth f 7% plus. The excess capacity built up during the bm perid must have been used up by nw. A cmplex set f factrs is keeping dwn the private investment rate. These factrs need t be addressed in rder t push up private investment, even as the pace f public capital expenditures, which have shwn a pick up recently, is maintained. We need t acknwledge that unlike last year, this year the gvernment has less fiscal rm t pump prime grwth. Oil prices have gne up in the past few mnths, taking away the fiscal dividend. GST, Real Estate (Regulatin and Develpment) Act, Inslvency Cde are all great refrms fr the medium t lng term. But the next few quarters call fr sustaining cnsumptin, inviting private investment, energising agriculture, and giving a big fillip t exprts. 20

22 INSIGHTS int EDITORIAL Cntext: [10] Pwering rural healthcare Arund 38 millin Indians rely n health facilities withut electricity. Withut access t regular pwer supply, numerus life-saving interventins cannt be undertaken. A study, Pwering Primary Healthcare thrugh Slar in India: Lessns frm Chhattisgarh, highlights the rle f slar energy in bridging the gaps in electricity access in rural healthcare facilities. Prviding slar-pwered systems acrss primary health centres can imprve health utcmes. Health: The Essential Element f Well-being Health and well-being play a vital rle in develpment and pverty reductin. Gd health is ne f the mst valued aspects f wellbeing and a critical element in the quality f life. Gd health als represents instrumental values thrugh the enhancement f pprtunities t participate in educatin, training, and the labur market. Human Develpment Index (HDI) and the Multidimensinal Pverty Index (MPI), have sme parameters that reflect the status f gd health f a cmmunity. The Sustainable Develpment Gals (SDGs), apart frm setting targets fr reductin in maternal and child mrtality and ther health risks, explicitly state the need fr universal health cverage (UHC) as well as recgnise the need fr an affrdable and rbust health delivery system. UHC includes financial risk prtectin, access t quality essential healthcare services, and access t safe, effective, quality, and affrdable essential medicines and vaccines fr all. In India, abut 55% f all husehlds depend n the public health system t meet their healthcare needs. This dependence is higher in rural areas. Fr mst peple, the PHC at the village level serves as the first pint f cntact r the first referral unit. Therefre, the effective functining f PHCs plays an imprtant rle in facilitating UHC. Hwever, the lack f healthcare infrastructure has been a limiting factr in the ability f the system t prvide timely and quality care t all thse wh need it. Electricity as an enabler f health service delivery Fr a lng time, the fcus f electricity access has been largely at the husehld level. It is nly recently that access t electricity is als being recgnised as critical fr public services like electricity fr health facilities, schls and street lighting. In health facilities, regular electricity access is necessary fr deliveries, strage f vaccines, prvisin f emergency services, supply f clean water, and retentin f skilled staff. A recent publicatin by the WHO and the Wrld Bank maintains that besides imprving the direct functinality f health facilities, access t electricity is equally instrumental in attracting and retaining skilled health wrkers, especially in rural areas. In India, Primary Health Centres (PHCs) ensure last-mile delivery f healthcare services, that is, at the village level. Hwever, ne in every tw PHCs in India, and ne in every three in Chhattisgarh, is either un-electrified r suffers frm irregular pwer supply. This extent f pwer deficiency acrss PHCs culd hamper the prvisin f healthcare services in the cuntry. Grund reprt A study, Pwering Primary Healthcare thrugh Slar in India: Lessns frm Chhattisgarh, published recently by the Cuncil n Energy, Envirnment and Water (CEEW) and supprted by Oxfam India, evaluated 147 primary healthcare centres (PHCs) acrss 15 districts in Chhattisgarh. It highlights the rle f slar energy in bridging the gaps in electricity access in rural healthcare facilities. In rural India, PHCs prvide the last-mile delivery f healthcare services. 21

23 INSIGHTS int EDITORIAL The Rural Health Statistics 2016 data find that India has arund 25,000 PHCs, and f the functinal PHCs, 6% are nt electrified implying that ver 38 millin rural husehlds depend n health facilities that have n electricity. Further, the furth rund f District Level Husehld and Facility Survey data indicates that ne in every tw PHCs in rural India is either nt electrified r suffers frm irregular pwer supply. This als results in health facilities having t rely n expensive backup ptins like diesel generatrs that have significant cst implicatins. The use f renewable energy surces such as slar culd help PHCs augment r even substitute traditinal grid-based pwer systems. This wuld als help the transitin twards a lw-carbn, climate-smart healthcare system. Mrever, slar systems can facilitate reliable and uninterrupted electricity supply critical fr 24/7 emergency services, deliveries and nenatal care, as well as inpatient and utpatient services. Chhattisgarh: State f Healthcare and Health Infrastructure Chhattisgarh, as a state with a predminantly rural ppulatin, Chhattisgarh faces the challenges f inadequately skilled human resurces, pr physical infrastructure, and ther supply-side gaps with respect t the delivery f quality healthcare. In rder t augment electricity supply acrss PHCs in pwer-surplus Chhattisgarh, the Chhattisgarh Renewable Energy Develpment Agency (CREDA), between 2012 and 2016, installed ff-grid slar phtvltaic (PV) systems f 2kW each in 570 PHCs. Electricity Access and Its Impact n Healthcare Services in PHCs in Chhattisgarh: Districts in Chhattisgarh with a higher share f pwer-deficit PHCs (with less than 20 hurs f electricity supply per day frm the grid), shwed a higher infant mrtality rate, a higher under-five mrtality rate, and a lwer prprtin f fully immunised children. The CEEW study fund that the slar-pwered PHCs in Chhattisgarh admitted ver 50% mre patients and cnducted almst twice the number f child deliveries in a mnth cmpared t the pwer-deficit PHCs withut a slar system. The ability f slar-pwered PHCs t maintain cld chains t stre vaccines and drugs and perate new-brn care equipment has significantly imprved. Almst ne-furth f the pwer-deficit PHCs in Chhattisgarh relied exclusively n slar as a backup t run cld chain equipment. Cntinuus electricity supply must be ensured t cld chains at PHCs, especially in rural Chhattisgarh, which has an infant mrtality rate that is higher than the average fr rural India. Further, patients shwed mre willingness t get admitted fr treatment at the slar-pwered PHCs due t facilities like running fans. Als, 90% f PHCs with slar systems reprted cst savings due t lwer electricity bills r reduced expenditure n diesel. Key Lessns fr Electricity Access and Interventin Designs The rle f electricity as an enabler f the cst-effective and targeted delivery f health services is being recgnised acrss the wrld. Scaling-up slar-pwered systems acrss PHCs in rural India is dependent n varius factrs. 1. The first is t recgnise the critical nature f electricity access in the entire health system infrastructure. The Indian Public Health Standards has set minimum service-level benchmarks fr all activities f PHCs, indicating that every PHC shuld have pwer supply with a back-up ptin with the aim f prviding a minimum service level f healthcare t all citizens acrss the cuntry. The Natinal Health Plicy 2017 reiterates the cmmitment t imprve primary healthcare by strengthening infrastructure. 2. The ability t adapt slar systems arund the lcal needs and cnsideratins f PHCs including the burden f disease, weather, terrain, and pwer availability. Fr example, disaster-prne areas that need bld strage units and ther health services culd invest in higher capacity systems r greater strage capacity. There must be a fcus n making Slar fr Health a natinal pririty. 22

24 INSIGHTS int EDITORIAL Scaling slar systems (5kW) acrss PHCs t pwer healthcare services culd cntribute t abut 160 MW f decentralised energy capacity. 3. Augment electricity supply with slar systems and give pririty t pwer-deficit health facilities. Cnclusin There are significant pprtunities t simultaneusly address the gals f energy access, energy security, resurce management, and health utcmes. Slar fr health is ne such pprtunity t achieve this gal. Chhattisgarh prvides evidence fr scaling this interventin t meet the natinal gals fr bth health and energy. Cntext: [11] Fr clean air, India needs a plicy leap Fr decades, pllutin and its harmful effects n peple s health, the envirnment, and the planet have been neglected bth by Gvernments and the internatinal develpment agenda. Yet, Air pllutin is the largest envirnmental cause f disease and death in the wrld tday. Its implicatins are many. A reprt f the Lancet Cmmissin n pllutin and health states that arund 19 lakh peple die prematurely every year frm diseases caused by utdr and indr air pllutin. A study by the Indian Jurnal f Pediatrics shws that the lungs f children wh grw up in plluted envirnments like Delhi are 10% smaller cmpared t the lungs f children wh grw up in the U.S. This is nthing shrt f a public health emergency. What is needed, therefre, is a cmprehensive plicy t curb pllutin. Main causes f Air pllutin At the heart f the prblem f pllutin are carbn dixide (CO2) emissins. Abut 75% f all greenhuse gas emissins are CO2 emissins prduced thrugh burning fssil fuels il, cal and natural gas t generate energy. Since the early 2000s, carbn emissins have increased because f high grwth in the Indian ecnmy. In 2014, India s ttal carbn emissins were mre than three times the levels in 1990, as per Wrld Bank data. This is because f India s heavy dependence n fssil fuels and a dramatically lw level f energy efficiency. Effects f Air pllutin In 2015, diseases caused by air, water & sil pllutin were respnsible fr 9 millin premature deaths, i.e. 16% f all glbal deaths. Expsures t cntaminated air, water and sil kill mre peple than smking, hunger, natural disasters, war, AIDS, r malaria. Pllutin disprprtinately kills the pr and the vulnerable. Children are at high risk f pllutin-related disease, as expsures t even small amunts f certain chemicals in uter and in early infancy can result in disease, life-lng disability and death. Almst all expsures t pllutin are invluntary and represent a massive glbal injustice. Pllutin is cstly The csts attributed t pllutin-related diseases will increase as researchers discver mre assciatins between pllutin & disease. Pllutin-related diseases reduce GDP in lw- t middle-incme cuntries by up t 2% per year. The nature f pllutin is changing Significant investments in imprving access t safe water and sanitatin have greatly reduced water pllutin s impact. Hwever, mdern frms f pllutin frm industry and transprt are at a scale never seen befre. These include utdr air, chemical and sil pllutin, and expsures in the wrkplace. 23

25 INSIGHTS int EDITORIAL Hw can this crisis be slved? Air pllutin and climate change are clsely linked and share cmmn slutins. Fssil fuel cmbustin in higher-incme cuntries and the burning f bimass in lwer-incme cuntries accunts fr 85% f airbrne particulate pllutin and is a majr surce f greenhuse gases and ther pllutants that drive climate change. Remdel the energy mix Emissins can be curbed nly if peple are persuaded t mve away frm fssil fuels and adpt greener frms f energy. A part f the carbn revenue thus generated can be used fr a systemic verhaul f the energy mix, which, t a large extent, wuld address the pressing prblem f envirnmental degradatin. The Indian ecnmy s energy mix needs t be remdelled thrugh investments in clean renewable surces f energy like slar, wind, hydr, gethermal and lw-emissins bienergy, Raise the level f energy efficiency thrugh investments in building retrfits, grid upgrades, and industrial efficiency. Carbn tax can be a key plicy instrument in helping the cuntry meets the challenges psed by Air pllutin. There is, hwever, a prblem with carbn tax. It s regressive in nature it affects the pr mre than the rich. What is the way ut? Tax and dividend plicy: Accrding t which the revenue thus generated is distributed equally acrss its citizens and as a result, the pr are mre than cmpensated fr the lss, since in abslute amunts the rich pay mre carbn tax than the pr. Such a plicy f cash transfer, which might wrk in the West, hwever, has a prblem in the Indian cntext. Instead f a cash transfer, the ther part f the carbn revenue can be used fr an in-kindtransfer f free electricity t the ppulatin that cntributes less carbn than the ecnmy average, and universal travel passes t cmpensate fr the rise in transprt csts and t encurage the use f green public transprt. Such a plicy justly addresses the widening schism between Bharat, which bears the climate impact burden, and India, which is impsing that burden because f its lifestyle chices. The level f carbn tax required fr this plicy t cme int effect is 2,818 per metric tnne f CO2. It will be levied upstream, namely, at prts, mine-heads, and s n. While the prices f almst all the cmmdities will rise, the highest rise in price will be in fuel and energy since the carbn cntent is the highest in this categry. Other benefits Carbn Tax plicy nt nly curbs emissins but als delivers n prviding mre emplyment since the emplyment elasticity in greener frms f energy is higher than thse in fssil fuel-based energy. Higher prices f cmmdities accrding t their carbn cntent will induce husehlds, including the rich, t lk fr greener substitutes. Availability f free energy als addresses the issue f stealing f electricity, since there will be n incentive left fr thse wh steal. In India, even in 2014, the value f electricity stlen thrugh crrupt means amunts t abut 0.8% f GDP. Plicy als will give mre health benefits as a significant part f mre than 3% f India s GDP currently spent n pllutin-induced diseases will surely cme dwn. Cnclusin Reducing pllutin presents a pwerful pprtunity t save lives and grw ecnmies. Better way t curb pllutin is t tax carbn. Accelerating the switch t cleaner surces f energy will reduce air pllutin and imprve human and planetary health. Gvernment als need t integrate pllutin challenges and cntrl strategies int planning prcesses. Cllabrate n slving pllutin with develpment agencies. Design and implement prgrams that reduce pllutin, and save lives. 24

26 INSIGHTS int EDITORIAL Cntext: [12] Disqualificatin mves On December 4, the Chairman f Rajya Sabha disqualified tw Members f Parliament (MPs) frm the Huse under the Tenth Schedule f the Cnstitutin (better knwn as the anti-defectin law) fr having defected frm their party. These members were elected n a Janata Dal (United) ticket. The rders f the Chairman have established a benchmark, bth in terms f speedy dispsal as well as the quality f the decisins. Allegatins f legislatrs defecting in vilatin f the law have been made in several ther states including Andhra Pradesh, Arunachal Pradesh, Ga, Manipur, Nagaland, Telangana and Uttarakhand in recent years. Objective f Anti-defectin law: The bjective f the landmark anti-defectin law f 1985 was t enhance the credibility f the cuntry s plity by addressing rampant party-hpping by elected representatives fr persnal and plitical cnsideratins. What is the anti-defectin law? Aaya Ram Gaya Ram was a phrase that became ppular in Indian plitics after a Haryana MLA changed his party thrice within the same day in The anti-defectin law sught t prevent such plitical defectins. The Tenth Schedule was inserted in the Cnstitutin in 1985 by the 52nd Amendment Act. It lays dwn the prcess by which legislatrs may be disqualified n grunds f defectin by the Presiding Officer f a legislature based n a petitin by any ther member f the Huse. A legislatr is deemed t have defected if he either vluntarily gives up the membership f his party r disbeys the directives f the party leadership (whip) n a vte. This implies that a legislatr defying (abstaining r vting against) the party whip n any issue can lse his membership f the Huse. As a pre-cnditin fr his disqualificatin, his abstentin frm vting shuld nt be cndned by his party r the authrised persn within 15 days f such incident. The decisin n questin as t disqualificatin n grund f defectin is referred t the Chairman r the Speaker f such Huse, and his decisin is final. The law applies t bth Parliament and state assemblies. Exceptins under the law: Legislatrs may change their party withut the risk f disqualificatin in certain circumstances. The law allws a party t merge with r int anther party prvided that at least tw-thirds f its legislatrs are in favur f the merger. In such a scenari, neither the members wh decide t merge, nr the nes wh stay with the riginal party will face disqualificatin. Hw has the law been interpreted by the Curts while deciding n related matters? The Supreme Curt has interpreted different prvisins f the law. The law prvides fr a member t be disqualified if he/she vluntarily gives up his membership. Hwever, the Supreme Curt has interpreted that in the absence f a frmal resignatin by the member, the giving up f membership can be inferred by his cnduct. In ther judgments, members wh have publicly expressed ppsitin t their party r supprt fr anther party were deemed t have resigned. In the case f the tw JD(U) MPs wh were disqualified frm Rajya Sabha n December 4 th, they were deemed t have vluntarily given up their membership by engaging in anti-party activities which included criticizing the party n public frums n multiple ccasins, and attending rallies rganised by ppsitin parties in Bihar. 25

27 INSIGHTS int EDITORIAL Decisin f the Presiding Officer is subject t judicial review The law initially stated that the decisin f the Presiding Officer is nt subject t judicial review. This cnditin was struck dwn by the Supreme Curt in 1992, thereby allwing appeals against the Presiding Officer s decisin in the High Curt and Supreme Curt. Hwever, it held that there may nt be any judicial interventin until the Presiding Officer gives his rder. In 2015, the Hyderabad High Curt, refused t intervene after hearing a petitin which alleged that there had been delay by the Telangana Assembly Speaker in acting against a member under the anti-defectin law. The Chairman is required either t prceed t determine the questin himself r refer it t the cmmittee f privileges fr a preliminary inquiry. But reference t the cmmittee is cntingent upn the Chairman satisfying himself that it is necessary r expedient t d s; it is nt mandatry. As a matter f fact, in several cases in the past, the Speaker f the Lk Sabha and the Chairman f the Rajya Sabha, whenever the circumstances f the case s warranted, have determined the questin themselves, withut referring it t the cmmittee. Is there a time limit within which the Presiding Officer has t decide? The law des nt specify a time-perid fr the Presiding Officer t decide n a disqualificatin plea. Given that curts can intervene nly after the Presiding Officer has decided n the matter, the petitiner seeking disqualificatin has n ptin but t wait fr this decisin t be made. There have been several cases where the Curts have expressed cncern abut the unnecessary delay in deciding such petitins. In sme cases this delay in decisin making has resulted in members, wh have defected frm their parties, cntinuing t be members f the Huse. There have als been instances where ppsitin members have been appinted ministers in the gvernment while still retaining the membership f their riginal parties in the legislature. In Andhra Pradesh, legislatrs f the main ppsitin party recently byctted the entire 12-day assembly sessin. This byctt was in prtest against the delay f ver 18 mnths in actin being taken against legislatrs f their party wh have allegedly defected t the ruling party. The Vice President, in his recent rder disqualifying tw JD(U) members stated that all such petitins shuld be decided by the Presiding Officers within a perid f arund three mnths. Des the anti-defectin law affect the ability f legislatrs t make decisins? The anti-defectin law seeks t prvide a stable gvernment by ensuring the legislatrs d nt switch sides. Hwever, this law als restricts a legislatr frm vting in line with his cnscience, judgement and interests f his electrate. Such a situatin impedes the versight functin f the legislature ver the gvernment, by ensuring that members vte based n the decisins taken by the party leadership, and nt what their cnstituents wuld like them t vte fr. Plitical parties issue a directin t MPs n hw t vte n mst issues, irrespective f the nature f the issue. Several experts have suggested that the law shuld be valid nly fr thse vtes that determine the stability f the gvernment (passage f the annual budget r n-cnfidence mtins). The significance f recent decisin f Vice President Vice President s rders assume significance in the cntext f instances where members have switched sides and became ministers in the gvernments, which are frmed by parties against whm they cntested and wn. The chairman f Rajya sabha(vice President) declared that thse tw defected had ceased t be members f the Rajya Sabha with immediate effect n accunt f having incurred disqualificatin under Tenth Schedule t the Cnstitutin. The rders f the Chairman have established a benchmark, bth in terms f speedy dispsal (abut three mnths) as well as the quality f the decisins. Since the anti-defectin law came int place, there have been a large number f cases where prceedings have dragged n fr years. While delivering the rder, Chairman made it clear that while dissent is a plitical right, it shuld be articulated apprpriately withut striking at the rts f the functining f the party-based demcratic system. 26

28 INSIGHTS int EDITORIAL Way frward The defectin cases shuld nt be kept pending and dragged n by the Presiding Officers, with a view t save the membership f the persns, wh have therwise incurred disqualificatin r even t save the Gvernment, which enjys majrity nly because f such type f persns. All such petitins shuld be decided by the Presiding Officers within a perid f arund three mnths by giving an pprtunity t the cncerned Members (Seven days f time as per the Rule 7(3) f the Members f Rajya Sabha) against whm there are allegatins, which lead t their disqualificatin under the Tenth Schedule t the Cnstitutin f India s as t effectively thwart the evil f plitical defectins, which if left uncurbed are likely t undermine the very fundatins f ur demcracy and the principles which sustain it. Cntext: [13] Lking fr balance in pwer A mnth after India was part f the Quad discussin n the sidelines f the East Asia Summit in Manila invlving Japan, Australia and the U.S., New Delhi hsted freign ministers f Russia and China this week. The meeting is als the first ministerial meeting f its kind since India s lengthy summer standff with China alng their disputed Himalayan brder, in Dklam. The Russia-India-China trilateral held its 15th meeting in what can be cnstrued as New Delhi s attempt t get a semblance f balance in its ties with Mscw and Beijing. RIC Frum: It was in December 1998 that the idea f the strategic triangle was first mted by then Russian prime minister. He was the first imprtant visitr t India after its nuclear tests, and it tk time fr trilateral talks t take place n the side-lines f UN General Assembly. Frm 2006, these turned int stand-alne frmal freign minister meetings. The RIC has since been wrking tgether in varius reginal and glbal rganizatins, including BRICS, SCO and BASIC, and has cme t be viewed as a restraining frce n any unquestined Western hegemny 15th Meeting f RIC Freign Ministers: The discussins f meeting fcused n reginal security, issues affecting Asia-Pacific regin, cunter-terrr effrts and crdinatin at reginal and multilateral frums. But what was perhaps interesting was Russia and China s cntinued attempts t frame glbal and reginal plitics thrugh a similar lens, and the grwing divergences between India and them. The ministers reiterated imprtance trilateral frmat as platfrm t fster clser dialgue and practical cperatin in identified areas. The ministers released jint cmmuniqué after meeting. They agreed t strengthen the trilateral dialgue fr cnsultatin and crdinatin n reginal and glbal issues f mutual interest. Internatinal and reginal peace: They held that cperatin is cnducive t maintaining internatinal and reginal peace, stability and prmting glbal ecnmic grwth and prsperity. They stressed fr establishment f just and equitable internatinal rder based n internatinal law and mutual respect, fairness and justice. They held that varius crises in the wrld shuld be reslved in accrdance with the internatinal law. Terrrism: The three natins als cndemned terrrism in all its frms and manifestatins and reaffirmed that all acts f terrrism are criminal and unjustifiable irrespective f their mtivatins, cmmitted wherever and by whmsever. Thse cmmitting, rganising, inciting r supprting terrrist acts must be held accuntable and brught t justice under internatinal law. 27

29 INSIGHTS int EDITORIAL Arms Race: They called fr preventin f arms race in uter space fr maintaining internatinal peace and security. Russia and China reiterated that they welcme India s participatin in Asia-Pacific Ecnmic Cperatin. Why des Trilateral nt lead t cnsequences f any great imprt? The three natins had very different expectatins frm this trilateral. This was als a perid which saw significant shifts in Ind-U.S. ties as bilateral relatins expanded while Russian and Chinese links with the U.S. have witnessed a dwnward shift. Russia: China: There was a grwing and persistent feeling in Russia that it surrendered its nce-pwerful psitin n the wrld stage fr a psitin f little internatinal influence and respect. It is against this backdrp that Russia tried t establish itself as the hub f tw bilateral security partnerships that culd be used t cunteract U.S. pwer and influence in areas f mutual cncern. While Russia witnessed a dwnward slide in its status as a superpwer since the end f the Cld War, China emerged as a rising pwer that saw the U.S. as the greatest bstacle, if it was t achieve a pre-eminent psitin in the glbal plitical hierarchy. As a cnsequence, China recgnised the imprtance f cperating with Russia t check U.S. expansinism in the wrld, even if nly fr the shrt term. In fact, American plicies twards Russia and China mved the tw states clser t each ther, leading t the frmatin f a new balance f pwer against the U.S. India s stance: India, n the ther hand, had different cnsideratins, as it was still far frm becming a glbal pwer f any reckning. India saw in the trilateral a mechanism t bring greater balance in the glbal rder as it believed that a uniplar U.S.-dminated wrld was nt in the best interests f weaker states like itself, even as strategic cnvergence deepened between Washingtn and Delhi. Mrever, all three cuntries realised the enrmus ptential in the ecnmic, plitical, military and cultural realms if bilateral relatinships amng them were adequately strengthened. As a cnsequence, the trilateral did nt lead t cnsequences f any great imprt. It merely resulted in declaratins which were ften critical f the West, and f the U.S. in particular. RIC meeting during changing Asia-Pacific dynamics Under the backdrp f Syrian, Iranian, Rhingya and Nrth Krean crises and US President s trubles in ffice, China and Russia have emerged as the leading influencers in the emerging Asian rder. Indian freign plicy has made addressing terrrism a tp pririty and made it the highlight f this 15th RIC trilateral meeting. Hwever they als deserve credit fr nt allwing their standpint t cmplicate a cnsensus n serius issues. India and China view Pakistan s cnnectins t terrrism very differently and India als remains skeptical abut Russia and Pakistan building clser defence ties. Mscw shws increasing interest in China s flagship China-Pakistan Ecnmic Crridr, that remains a bitter pint fr India. India wrries abut Russia s grwing clseness t China and als China s revival f friendship with Pakistan, whilst bth China and Russia seem skeptical abut India s grwing clseness tward the US. An arrangement that had started with an attempt t manage American uniplarity is nw being affected fundamentally by Chinese resurgence. Way Frward: The Russia-India-China template cmes with its wn set f challenges. New Delhi s cntinued engagement with the du suggests that India is tday cnfident f setting its wn agenda in varius platfrms. 28

30 INSIGHTS int EDITORIAL China-India relatins shuld demnstrate sincerity and respnsibility f maintaining reginal peace and stability. Just as China engages with the U.S. n the ne hand and with Russia n the ther, a rising India is quite capable f managing its ties with Washingtn, Beijing and Mscw simultaneusly. It will nt always be easy, but in an age when the certitudes f the past are fast vanishing, diplmacy will have t tread a cmplex path. Cntext: [14] Changed pririties The President f India gave his assent t an amendment in the Inslvency and Bankruptcy Cde that barred a majrity f defaulting prmters frm buying back their assets. The changes via an rdinance made at least nine categries f persns ineligible fr submitting a reslutin plan fr the indebted cmpanies facing inslvency actin at the Natinal Cmpany Law Tribunal. Amendments t the cde said that thse whse accunts have been nn-perfrming fr a year will nt be allwed t participate in the reslutin plan. The mve came at a time when abut 50 f the India s biggest defaulting cmpanies face inslvency prceedings. What is bankruptcy? What is the IBC s intent? A cmpany is bankrupt if it is unable t repay debts t its creditrs (banks, suppliers etc). The inability t repay debts by sme Indian firms has resulted in a huge pile f NPAs fr the banking system. The Indian gvernment had intrduced the IBC as a methd t tackle the issue. Under the Cde, a reslutin has t be fund fr the indebted cmpany within 270 days. Otherwise, a liquidatr is appinted. The cmpany can als pt fr vluntary liquidatin by a special reslutin in a general meeting. The Inslvency and Bankruptcy Bard f India (IBBI) is the regulatr set up n Octber 1, 2016 under the Inslvency and Bankruptcy Cde. The reslutin prfessinals entrusted with the respnsibility f srting ut the inslvent cmpanies. The IBBI is assisted by the disciplinary, advisry and technical cmmittees. Hw has IBC prgressed? Why was the amendment needed? The reslutin t stressed assets picked up steam under IBC and investrs started warming up t the huge pprtunity. The questin was whether existing spnsrs / prmters f crprate debtrs (i.e. the cmpany with debt and under the inslvency prceedings) can directly r indirectly acquire stake in these firms pst acceptance f a reslutin plan which wuld have entailed substantial discunt t utstanding lans f lenders. The key questins were Can prmters seek a huge cut frm lenders and be back in the business? Des this prvide a level playing field t ther prspective bidders? Des this send the right plitical and ecnmic signals? The gvernment tk nte f all these cncerns expressed by investrs, and that s what led t the recent (amendment) rdinance. What are the key elements f the amendment? The amendment has inserted tw new sectins in the inslvency cde Sectin 29A, which prvides fr persns ineligible t be a Reslutin Applicant; Thse ineligible t be a Reslutin Applicant include: Wilful defaulters Persns cnvicted fr any ffence punishable with imprisnment fr tw r mre years Undischarged inslvent Persns disqualified as directrs Persns barred by SEBI frm the securities markets 29

31 INSIGHTS int EDITORIAL Thse whse accunts are classified as Nn-Perfrming Assets (NPAs) fr ne year r mre and are unable t settle verdue amunts including interest and charges relating t the accunt befre submissin f the Reslutin Plan. Persns wh have given a guarantee t a creditr in respect t a crprate debtr in IBC Persns frm freign jurisdictins Sectin 235A, which prvides fr punishment fr cntraventin f the prvisins where n specific penalty r punishment is prvided. The punishment is fine which shall nt be less than ne lakh rupees but which may extend t tw crre rupees. What the amendment means in terms f NPA reslutin? What are the key challenges? The gvernment has taken the high mral grund t deal with the menace f nn-perfrming assets r NPAs that have brught many public sectr banks n the verge f bankruptcy. Many are f the view that if the errant prmter is disqualified frm the bidding prcess it will lead t further lsses fr banks. Challenges 1. Deciding wh will be eligible t bid: The key challenge wuld be t invite expressin f interests and reslutin plans frm applicants wh are nt related t the Crprate Debtr after cnducting due diligence abut the creditwrthiness f such buyers. It is nw up t the reslutin prfessinal t decide wh will be eligible t bid fr the defaulter cmpanies r their assets. 2. Advisry cmmittees chaired by several tp crprates The advisry cmmittees n crprate inslvency and liquidatin are chaired by several tp crprates. The appintment f crprates as heads f imprtant crprate inslvency advisry cmmittees under IBBI may nt inspire cnfidence in the credibility f the reslutin prcess. The recent rdinance may end up being used selectively t defeat the very bjective f penalising the errant prmter. The banks will nly lse if reslutin is side-tracked by the ensuing pwer struggle amng crprate India t purchase distressed assets at rck-bttm prices. 3. The Ordinance gives incentives t the banks t delay NPA recgnitin fr as lng as pssible By disqualifying a large number f persns, the Ordinance will lwer the amunt that the banks as the main financial creditrs in mst f the IBC cases expect t recver. This may result in the banks nt recgnising accunts as NPA s that the prmters can submit their bids in the IBC reslutin prcess. 4. Affect the incentives f the gvernment The Ordinance may als affect the incentives f the gvernment as the majrity sharehlder in these banks. The gvernment maybe incentivised t encurage public sectr firms (PSUs) t bid in the IBC reslutin prcess s that the deals g thrugh at relatively higher prices and the PSU banks d nt face large haircuts. What is the likely impact f this Ordinance n IBC? 1. Prcedural impact: The Ordinance intrduces substantial prcedural uncertainty in the reslutin prcess and pens it up t disputes and litigatin. These inslvency prfessinals nw have the task f determining the eligibility f applicants as per this Ordinance. 2. Ecnmic impact n reslutin The Ordinance effectively disqualifies vast sectins f the crprate wrld, bth in India and abrad, frm participating in the IBC bidding prcess. 30

32 INSIGHTS int EDITORIAL In ding s, it significantly reduces the number f likely reslutin plans that maybe submitted in any IBC case in an already glmy landscape. The lack f cmpetitin amng the narrw pl f eligible bidders will depress the financial value f any reslutin plan 3. Impact n IBC principles: Way frward By substantially shrinking the universe f eligible reslutin applicants as well as ptential buyers in liquidatin, the Ordinance vilates the cre principles f the IBC. The IBC is based n the premise that all business failure is nt fraud. The Ordinance by its very design ges against this principle. A persn may have faced adverse ecnmic shcks such as a business cycle dwnturn r a cmmdity price shck. This is different frm a fraudulent r an unscrupulus prmter wh may have been siphning ff assets frm her wn firm. But, The Ordinance treats bth these categries n par. An ultimate test f the success f IBC is the recvery rate. As the preamble t IBC clearly states, the primary bjective f the law is maximisatin f value f assets f the debtr firm underging the inslvency and bankruptcy prceedings. Fulfilling this bjective requires a cmpetitive bidding prcess such that there is a fair price discvery mechanism. One way t reslve this cnundrum maybe t bar prmters frm participating in the IBC bidding prcess in their full capacity while permitting them t make deals with third parties such as private equity funds, wh wuld be the primary bidders. Even thugh there have been cncerns abut the amendment, it shuld ensure that errant prmters dn t end up getting the business back with all sacrifices being made by the lenders. Intrductin: [15] Fr a safe cyberspace The Indian gvernment has embarked n a prgramme t turn the cuntry int a digital ecnmy. It has unveiled a series f initiatives frm intrducing Aadhaar, MyGv, Gvernment e-market, DigiLcker, Bharat Net, Startup India, Skill India and Smart Cities t prpel India twards technlgical cmpetence and transfrmatin. The mve twards a digital ecnmy is likely t help trigger a fresh wave f ecnmic grwth, attract mre investment, and create new jbs, acrss multiple sectrs. Hwever, it als pses a big challenge, that f Cyber Security. India s recent Digital transfrmatin India is currently pursuing an alternative and very exciting rute in which it is making the use f digital technlgy and digital recrds in public administratin with new technlgies, accrding t IMF. India is ne f the key players in the digital and knwledge-based ecnmy, hlding mre than a 50% share f the wrld s utsurcing market. India is already the third largest hub fr technlgy-driven start-ups in the wrld. It s Infrmatin and Cmmunicatins Technlgy sectr is estimated t reach the $225 billin landmark by Digital India prgram seeks t launch a large number f e-gvernance services acrss different sectrs. These include educatin, healthcare and banking. The number f mbile phne users in India is expected t rise t millin. The number f smartphne users in India is predicted t reach 340 millin and culd reach almst 468 millin by India has made a few achievements in e-gvernance prjects such as Digital Lcker, ebastas, the linking f Aadhaar t bank accunts t disburse subsidies. Bharat Net (erstwhile Natinal Optical Fiber Netwrk), the cuntry s digital infrastructure, has created a cmmn service centre fr each panchayat, fr which all pst ffices and CSCs are t be upgraded. India s mbile wallet transactins were up nine-fld in tw years t reach $9 billin. 31

33 INSIGHTS int EDITORIAL Grwing threat f Cyber Security The achievements in digital sectr cme with a prblem: innvatin in technlgy, enhanced cnnectivity, and increasing integratin in cmmerce and gvernance als make India the fifth mst vulnerable cuntry in the wrld in terms f cyber security breaches, accrding t the Internal Security Threat Reprt f 2017 by Symantec. 1. Increased n f cyber-attacks: Till June 2017, 27,482 cyber security threats had been reprted in the cuntry, accrding t the Indian Cmputer Emergency Respnse Team s reprt. As this is a 23% increase frm 2014 figures, it cincides with rapid grwth and innvatin in the ICT sectr. 2. Cst f cyber-attacks The cst f cyber-attacks in India currently stands in excess f Rs25, 000 crre ($4billin). It is imprtant t nte that there are many cyber-attacks that g undetected and unreprted as well. The lsses emanate frm peratinal disruptins, lss f sensitive infrmatin and designs, custmer churn and impact n brand image, as well as increase in legal claims and insurance premium. 3. Limited awareness Many cmpanies d nt treat imprtance f cyber security as a strategic agenda, but rather as a small issue fr their IT departments. In fact, a lt f cyber security incidents g unidentified and hence, unreprted. There is limited awareness f the need fr specialized and custmized industry-specific cyber security measures which are significantly different frm IT security and need t be adapted by the industry. All this is underpinned by the fact that there is lw existing capability, r lack f skill sets, t drive cybersecurity agendas. Types f Cyber attacks In 2016, nearly ne percent f all s sent were essentially malicius attacks, the highest rate in recent years. Ransmware attacks (Ransmware is a type f sftware that threatens t publish a persn s data r blck it unless a ransm is paid) increasingly affected businesses and cnsumers, with indiscriminate campaigns pushing ut massive vlumes f malicius s. Apart frm WannaCry and Petya, ther Ransmware attacks that made news glbally were Lcky, Cerber, Bucbi, SharkRaaS, CryptXXX and SamSam. Attackers are demanding mre and mre frm victims, with the average ransm demand rising t ver 1,000 USD in 2016, up frm apprximately 300 USD a year earlier. Sme f the biggest distributed denial f service (DDS) attacks n recrd pwered by a btnet f Internet f Things (IT) devices. In India, in May 2017, a data breach at the fd delivery App, Zmat, led t persnal infrmatin f abut 17 millin users being stlen and put fr sale n the Darknet. Ptent crypt-ransmware attacks n Andrid devices including televisins that use Andrid. A number f viruses, malware and cryptwrms are als being develped in the JavaScript, which gives the attackers crss-platfrm ptins. Cyber security shuld be an integral part f technlgical prgress The glbal cmmunity is increasingly embracing ICTs as key enabler fr scial and ecnmic develpment. Gvernments acrss the wrld recgnize that digital transfrmatin has the pwer t further the prsperity and wellbeing f their citizens. In supprting this transfrmatin, they als recgnize that cyber security must be an integral and indivisible part f technlgical prgress. In May 2017, a massive cyber-attack caused majr disruptins t cmpanies and hspitals in ver 150 cuntries, prmpting a call fr greater cperatin arund the wrld. 32

34 INSIGHTS int EDITORIAL The gd news, thugh, is that India recgnises this. The secnd Glbal Cybersecurity Index, released by the Internatinal Telecmmunicatin Unin in July, which measured the cmmitment f natins t cybersecurity, fund that India ranked 23 ut f 165 natins. Glbal Cybersecurity Index (GCI) The Glbal Cybersecurity Index (GCI) is a survey that measures the cmmitment f Member States t cybersecurity in rder t raise awareness. The GCI revlves arund the ITU Glbal Cybersecurity Agenda (GCA) and its five pillars (legal, technical, rganizatinal, capacity building and cperatin). The 2017 publicatin f the GCI cntinues t shw the cmmitment t cybersecurity f cuntries arund the wrld. The verall picture shws imprvement and strengthening f all five elements f the cybersecurity agenda in varius cuntries in all regins. Hwever, there is space fr further imprvement in cperatin at all levels, capacity building and rganizatinal measures. The gap in the level f cybersecurity engagement between different regins is still present and visible. This reprt als prvides a set f illustrative practices that give insight int the achievements f certain cuntries. It s time t rebt One f the biggest miscnceptins abut cybersecurity is that cyber-attacks are restricted t the financial services and banking sectr. It is imprtant t nte that industrial cmpanies are equally vulnerable. Given the huge number f nline users and cntinued effrts n affrdable access, cybersecurity needs t be integrated in every aspect f plicy and planning. At the 15th Asia Pacific Cmputer Emergency Respnse Team cnference in Delhi, the need fr rbust cybersecurity plicies and framewrks has been highlighted. The gvernment is keen t fund cybersecurity research. It annunced that it will award a grant wrth 5 crre t startups wrking n innvatins in the field f cybersecurity. The Need f the hur India needs t quickly frame an apprpriate and updated cybersecurity plicy, create adequate infrastructure, and fster clser cllabratin between all thse invlved t ensure a safe cyberspace. Cmpanies in India need t be practive t ensure they fster efficiency and efficacy in cybersecurity management. Cmpanies als need t assess the assets that are mst at risk. Tugh laws are needed t be put in place fr perpetratrs f cybercrime t ensure such criminals are deterred effectively There must be enhanced cperatin amng natins and reaffirmed a glbal call t actin fr all United Natins member natins t nt attack the cre f the Internet even when in a state f war. This als clearly emphasises the fact that mre than ever befre, there is a need fr a Geneva-like Cnventin t agree n sme high-level recmmendatins amng natins t keep the Internet safe, pen, universal and interperable. GCCS (Glbal Cnference n Cyber Space) platfrm shuld be utilised t establish internatinally agreed rules f the rad fr behaviur in cyberspace, and create a mre fcused and inclusive dialgue between all thse with a stake in the internet (gvernments, civil sciety and industry) n hw t implement them. Cntext: [16] Recnsider the Rules Earlier this year, a judgment by the Uttarakhand High Curt, stating that Ganga and Yamuna rivers are living entities, captured the natinal imaginatin. It is wrth nting that wetlands, the ther majr water-based ecsystem apart frm rivers, are at a mment f plicy transitin in the cuntry. This year, a new legal framewrk fr wetlands was passed, the Wetland (Cnservatin and Management) Rules, 2017, replacing the earlier Rules f 2010 which prhibit a range f activities in wetlands like setting up and expansin f industries, waste dumping and discharge f effluents. 33

35 INSIGHTS int EDITORIAL Als this year, the Supreme Curt passed an rder directing States t identify wetlands in the cuntry within a stipulated timeframe. Wetland: Wetland is transitinal land between terrestrial and aquatic ec-systems where water table is usually at r near surface r it may be land cvered by shallw water. It supprts rich bidiversity and prvides wide range f ecsystem services such as water strage, water purificatin, fld mitigatin, ersin cntrl, aquifer recharge etc. It means an area f marsh, fen, peat land r water; whether natural r artificial, permanent r temprary, with water that is static r flwing, fresh, brackish r salt, including areas f marine water the depth f which at lw tide des nt exceed six meters, but des nt include river channels, paddy fields, human-made water bdies/tanks specifically cnstructed fr drinking water purpses and structures specifically cnstructed fr aquaculture, salt prductin, recreatin and irrigatin purpses. There are 115 wetlands fficially identified by Central Gvernment and f thse 26 are identified as wetlands f internatinal imprtance under Ramsar Cnventin (an internatinal intergvernmental treaty fr cnservatin f wetlands t which India is party). Safeguarding Wetlands: Wetlands, vital parts f the hydrlgical cycle, are highly prductive ecsystems which supprt rich bidiversity and prvide a wide range f ecsystem services such as water strage, water purificatin, fld mitigatin, ersin cntrl, aquifer recharge, micrclimate regulatin, aesthetic enhancement f landscapes while simultaneusly supprting many significant recreatinal, scial and cultural activities, being part f ur rich cultural heritage; Wetlands are threatened by varius causes: Many wetlands are threatened by reclamatin and degradatin thrugh drainage and landfill, pllutin (discharge f dmestic and industrial effluents, dispsal f slid wastes), hydrlgical alteratin (water withdrawal and changes in inflw and utflw), ver-explitatin f their natural resurces resulting in lss f bidiversity and disruptin in ecsystem services prvided by wetlands. 1. Article 51A f the Cnstitutin stipulates that it shall be the duty f every citizen f India t prtect and imprve the natural envirnment including frests, lakes, rivers and wildlife and t have cmpassin fr living creatures; 2. The Envirnment (Prtectin) Act, 1986 is a cmprehensive legislatin t prvide prtectin and imprvement f the envirnment, including inter-alia, wetlands, and fr matters cnnected therewith; 3. Natinal Envirnment Plicy, 2006 recgnises the ecsystem services prvided by wetlands and emphasizes the need t set up a regulatry mechanism fr all wetlands s as t maintain their eclgical character, and ultimately supprt their integrated management; 4. India is a signatry t the Ramsar Cnventin n Wetlands and is cmmitted t cnservatin and wise use f all wetlands within its territry; Cnservatin and wise use f wetlands can prvide substantial direct and indirect ecnmic benefits t state and natinal ecnmy, and thereby the Central Gvernment stands cmmitted t mainstreaming full range f wetland bidiversity and ecsystem services in develpment planning and decisin making fr varius sectrs. The Central Gvernment cnsidered it necessary t supersede the Wetlands (Cnservatin and Management) Rules, 2010 fr effective cnservatin and management f wetlands in the cuntry. Highlights f Wetlands (Cnservatin and Management) Rules, State Wetlands Authrity (SWA): It stipulates setting up f SWA in each State/UTs headed by State s envirnment ministerand include range f gvernment fficials. State gvernment will als nminate ne expert each in fields f wetland eclgy, hydrlgy, fisheries, landscape planning and sciecnmics. 2. Functins f SWA: It will develp cmprehensive list f activities t be regulated and permitted within ntified wetlands and their zne f influence. It will als recmmend additinal prhibited activities fr specific wetlands define strategies wise use f wetlands and its cnservatin and undertake measures t enhance awareness within stakehlders and 34

36 INSIGHTS int EDITORIAL lcal cmmunities n values and functins f wetlands. In this case, wise use has been defined as principle f sustainable uses that is cmpatible with cnservatin. 3. Prhibited Activities: The rules prhibit activities like cnversin f wetland fr nn-wetland uses including encrachment f any kind, setting up and expansin f industries, waste dumping and discharge f untreated wastes and effluents frm industries, cities, twns, villages and ther human settlements. 4. Digital inventry f all wetlands: It is mandatry fr state authrities t prepare list f all wetlands and list f wetlands t be ntified within six mnths. Based n it, a cmprehensive digital inventry f all wetlands will be created and will be updated every ten years. 5. Natinal Wetlands Cmmittee (NWC): The rules stipulates fr setting up f NWC, headed by MEFCC Secretary, t mnitr implementatin f these rules and versee wrk carried ut by States. NCW will als advise Central Gvernment n apprpriate plicies and actin prgrammes fr cnservatin and wise use f wetlands, recmmend designatin f wetlands f internatinal imprtance under Ramsar Cnventin, advise n cllabratin with internatinal agencies n issues related t wetlands etc. Cmparing 2010 and 2017 Rules: The 2010 and 2017 Rules fr wetlands bth emphasise that the eclgical character f wetlands ught t be maintained fr their cnservatin. Eclgical character refers t prcesses and cmpnents which make the wetland a particular, and smetimes unique, ecsystem. Fr example, as lagns like Chilika (Odisha) and Pulicat (Tamil Nadu/Andhra Pradesh) are characterised by a mix f saline and fresh water, the flws f each type need t be maintained; river fld plains cntain wetlands that require cnservatin s they can re-fuel the river with fish and ther aquatic life during flding. In the 2010 Rules, sme related criteria were made explicit, such as natural beauty, eclgical sensitivity, genetic diversity, histrical value, etc. These have been mitted in the 2017 Rules. There are a few reasns why this is prblematic. There are multiple interests arund wetlands. Multiple interests als have gvernance needs, and this makes it abslutely necessary t identify and map these multiple uses. It is crucial t identify eclgical criteria s that the wetlands character can be maintained. The key t wetland cnservatin is nt just understanding regimes f multiple uses but cnserving r managing the integrity f the wetland ecsystem. Finally, restrictin f activities n wetlands will be dne as per the principle f wise use, determined by the State wetland authrity. Whether wise use will include maintaining eclgical character remains t be seen. Under the new Rules, n authrity t issue directins, which are binding in nature t desist frm any activity detrimental t wetland cnservatin, has been prescribed t State wetland authrities. Salt pans as wetlands have been mitted frm the new Rules. They were identified as wetlands in the 2010 Rules, as they are ften imprtant sites f migratry birds and ther frms f bidiversity. The case f Deepr Beel The issue f wetlands being multiple-use fund centre-stage this year with the bservatins f the Natinal Green Tribunal (NGT) in the case f Deepr Beel. Deepr Beel is a Ramsar site and a part f it is als wildlife sanctuary in Guwahati, Assam. This wetland harburs a wide variety f bidiversity, and als suffers frm intense man-made pressure the city s municipal waste is dumped clse t the Beel. Large, meat-eating strks (Greater adjutant strks) are irnically fund eating frm the muntains f garbage at the site. Ptential impacts f cntaminatin r pisning frm the garbage are still unknwn. 35

37 INSIGHTS int EDITORIAL This January, 26 strks died. The fact that Deepr Beel exists as a wetland des nt prevent garbage dumping; this is a fate faced by many wetlands. The NGT s bservatins n Deepr Beel are interesting and symptmatic f what is happening in several wetlands. In an inspectin dne by the judicial member f the Tribunal, it was nted that waste was being dumped nt beynd the site but within it, and demarcatins are made by drying ut areas r cutting ff water surces. These are classic ways f killing a wetland and turning it frm a wet t a dry ecsystem; r frm a lake t a garbage dump r cesspl. The Tribunal has nw asked fr the traditinal spread f the wetland. Way frward Given all the mdern uses f wetlands, lking at traditinal cartgraphy may be ne way t understand catchments f wetlands. It may als be a way f restring sme mdicum f eclgical character, identity r rights t wetlands, as the river judgment suggested. There are challenges ahead in identifying wetlands multiple and cmpeting use is just ne f them. Understanding the histric spread and eclgical character will be an imprtant safeguard fr the way frward. Setting clear gvernance systems wuld be the next. Cntext: [17] Shuld adultery be a crime? Sectin 497 f the IPC treats nly the man as the ffender and the married wman as a victim. The Supreme Curt said the dusty Victrian prvisin f adultery in the Indian Penal Cde treats a married wman as her husband s subrdinate. The curt admitted a petitin t drp adultery as a criminal ffence frm the statute bk. SC mentined in its rder the Time has cme when the sciety must realise that a wman is equal t a man in every respect What des adultery means? Adultery means vluntary sexual intercurse f a married persn ther than with spuse. The legal definitin f adultery hwever varies frm cuntry t cuntry and statute t statute. While at many places adultery is when a wman has vluntary sexual intercurse with a persn ther than her husband, at ther places adultery is when a wman has vluntary sexual intercurse with a third persn withut her husband s cnsent. Thugh the mdern trend is t decriminalize adultery, histrically, many cultures have regarded adultery as a crime. Jewish, Islamic, Christian and Hindu traditins are all unequivcal in their cndemnatin f adultery. Sectin 497 f the Indian Penal Cde (IPC) In India the ffence f adultery is punishable under Sectin 497 f the Indian Penal Cde (IPC), As it stands, this Sectin makes nly men having sexual intercurse with the wives f ther men withut the cnsent f their husbands punishable and wmen cannt be punished even as abettrs. The Reprt f the Malimath Cmmittee n Criminal Justice Refrms and the 42nd Reprt f the Law Cmmissin f India recmmended redefining Sectin 497 t make wmen als punishable fr adultery. An Analysis f Sectin 497 Critics f Sectin 497 allege that the law is sexist in nature, fr it nly criminalises the cnduct f the man while excusing the wman. They say that in making the husband the nly persn wh can prsecute fr adultery, the law is funded upn the idea that the status f the wife in a marriage is akin t that f the prperty f the husband. Sectin 497 penalizes sexual intercurse f a man with a married wman withut the cnsent f her husband when such sexual intercurse des nt amunt t rape. He is punishable with imprisnment f up t five years. That is, it draws a distinctin between cnsent given by a married wman withut her husband s cnsent and a cnsent given by an unmarried wman. It des nt penalize the sexual intercurse f a married man with an unmarried wman r a widw r even a married wman when her husband cnsents t it. 36

38 INSIGHTS int EDITORIAL In case the ffence f adultery is cmmitted, the husband cannt prsecute his unfaithful wife but can nly prsecute her adulterer. What is interesting here is that the sectin itself expressly states the unfaithful wife cannt be punished even as an abettr t the crime. The ffence f adultery therefre is an ffence cmmitted against the husband f the wife and nt against the wife. The Cnstitutinality f Sectin 497 was challenged befre the Supreme Curt under Article 14 n the grunds that it makes an arbitrary discriminatin based n sex. Why Wmen are nt punished fr Adultery The ffence f Adultery did nt punish wmen but still existed in the cde because at the time the enfrced law was enacted plygamy was deep rted in the sciety. Wmen were treated as victims f the ffence f adultery. The legislative intent behind the enactment f Sectin 497 is quite different frm what is perceived. In 1847, the Law Cmmissin f India was given the respnsibility f drafting a new penal cde. The Cmmissin rendered liable nly the male ffender, keeping in mind the cnditin f the wmen in this cuntry and the law s duty t prtect it. The prvisin was therefre made t restrict men frm having sexual relatins with the wives f ther men and at the same time t restrict their extra marital relatins t unmarried wmen alne. Apex curt s bservatin The Supreme Curt said the dusty Victrian prvisin f adultery in the Indian Penal Cde treats a married wman as her husband s subrdinate. The apex curt in its recent bservatin pined that this prvisin treats wmen as persnal prperty. It bserved that the fulcrum f ffence within the Sectin is destryed if the husband were t cnsent t the wife having a relatinship with anther man. Marriage remains a strng bastin f patriarchy. At its cre, marriage builds a pwer hierarchy that is unequal fr wmen. It isn t surprising that aplgists ften qute the argument f the sanctity f marriage t supprt the criminalisatin f adultery. The laws lend themselves well t bring abut the submissin f wmen, with the patriarchal structures prevalent in marriage as an institutin. Cnclusin N marriage r alliance can take away ne s right ver ne s wn bdy. Therefre, while the law n adultery as it is tday in the IPC is discriminatry n the grund f sex; the very existence f adultery in the criminal statute is vilative f the fundamental right t life and t live with dignity. N dubt that the law, as it stands, is inadequate. Cntext: [18] A capital mistake On 6 December 2017, United States President annunced that the United States wuld fficially recgnize Jerusalem as the capital f Israel. He als stated that a new building fr the U.S. embassy wuld be built in Jerusalem. The decisin was criticised by the majrity f internatinal leaders, including the Eurpean Unin s freign plicy chief. A mtin cndemning the mve was prpsed in the United Natins Security Cuncil, but was veted by the United States after a 14-1 vte. The United Natins General Assembly later passed a mtin 128 t 9, with 35 abstentins, cndemning US president s annuncement. Never befre in the histry f the UN has a member state threatened, s publicly and s inelegantly, fellw member states with dire cnsequences if they did nt fall in line with its psitin as the U.S. 37

39 INSIGHTS int EDITORIAL Glbal vice f dissent against the US President s decisin: Reacting t US recgnising Jerusalem as the capital f Israel, External Affairs Ministry said that India s psitin is shaped by its views and interests, and nt determined by any third cuntry. UN Secretary General Antni Guterres said, the hly city is the final-status issue that must be reslved thrugh direct negtiatins. Palestinian President Mahmud Abbas said, the decisin tantamunt t the United States abdicating its rle as a peace mediatr after a decade f spnsring the Israeli-Palestinian peace prcess. Turkey, Egypt, Jrdan, Iran and Qatar have als denunced the US mve. Saudi Arabia called it unjustified and irrespnsible, while France and the UK said they did nt supprt the decisin. Hamas has called it a new uprising. Russia als expressed serius cncern ver the US decisin, saying the mve threatened security in the regin. UN Security Cuncil has cnvened a meeting in the wake f the US President s decisin. Washingtn vetes draft UN reslutin rejecting US decisin n Jerusalem The United States has veted a draft UN reslutin rejecting President Trump s decisin t recgnize Jerusalem as Israel s capital. The vet was cast by US Ambassadr after all 14 ther Security Cuncil members backed the measure. The vet highlighted Washingtn s islatin ver Mr Trump s annuncement that the US embassy will be mved frm Tel Aviv t Jerusalem, effectively ignring Palestinian claims n the city. Many f the key US allies backed the measure saying that any decisin n the status f Jerusalem has n legal effect, are null and vid and must be rescinded. Prtests brke ut acrss a number f Islamic cuntries after the US decisin. Egypt had put frward the draft reslutin which had included a call n all cuntries t refrain frm pening embassies in Jerusalem. Jerusalem, a cntentius issue The Jerusalem issue is easily the mst cntentius ne between the Palestinians and the Israelis. There are ther issues such as brders, sharing f waters, refugees, security, and s n. Nne f them is amenable t easy answers, but the Jerusalem prblem is the mst sensitive. Any attempt t unilaterally change its status will kill the peace prcess. U.S. President Dnald Trump has bviusly given pririty t nurishing his cre dmestic cnstituency rather than wrry abut the cncerns f his clse allies, all f whm vted against the U.S., except Canada thugh it did nt side with its pwerful neighbur and simply abstained. Immediate Reactin The immediate internatinal reactin t Mr. Trump s decisin n Jerusalem was rather muted. Instead f cndemning it, mst viced cncern at the negative impact it wuld have n the peace prcess. Even several Arab cuntries were nt very vcal in their criticism. But sn, the Arab street asserted itself and frced the gvernments t take a mre rbust psitin. Egypt seems t have played a lead rle in this. It drafted a reslutin which avided mentining the U.S. by name; that wuld have made it difficult fr Britain and thers t supprt the draft. After the vet in the Security Cuncil, Egypt and Turkey lst n time in bringing the matter t an emergency sessin f the General Assembly, where there is n vet. India is amng 128 cuntries vting in favur f UN General Assembly reslutin The UN General Assembly adpted a reslutin declaring US recgnitin f Jerusalem as Israel s capital null and vid. In all, 172 member states cast their vtes. This means 21 cuntries did nt vte at all. A few f them seem t have lst their right t vte because f arrears in payment f their mandatry dues t the rganisatin. The reslutin passed with 128 vtes in favur, a cmfrtable tw-thirds majrity. Nine vted against, and 35 abstained. 38

40 INSIGHTS int EDITORIAL The reslutin stressed that Jerusalem was a final status issue t be reslved thrugh negtiatins. The cuntries favuring the reslutin als disregarded President Trump s threat t cut ff financial aid t thse cuntries that backed the reslutin. Strngly supprting Trump s decisin US Ambassadr t the UN warned that the US may strip funding f thse cuntries that vted against its Jerusalem mve. India did nt speak n the flr f the Assembly in New Yrk, but after Mr. Trump recgnised Jerusalem as the capital f Israel, it had said that its Palestinian psitin was independent and cnsistent. It wuld be interesting t watch hw the presidential threat wrks ut in practice in the case f Pakistan which vted against the U.S. Amng India s neighburs, Bhutan abstained. This might be explained either by its desire t demnstrate its independence frm India r nt t alienate the U.S., r perhaps a cmbinatin f the tw. Tilting the vte India s vte in favur f the reslutin was in line with its traditinal plicy in favur f a negtiated settlement fr Jerusalem as part f a larger tw-state slutin fr Israel and Palestine. The gvernment, n dubt, analysed the cstbenefit rati. 1. As fr the Israel: India s vte wuld have disappinted Israel and the U.S. It has excellent relatins with Israel, as ught t be. But an bjective analysis suggests that it is Israel which needs India mre than the ther way arund. India buys at least a third f Israel s defence prductin. India is als very imprtant t Israel fr diplmatic and plitical reasns. 2. As fr the U.S., the interest is mre mutual. Cnclusin We need American supprt fr a few things such as the sale f their defence platfrms and membership f the Nuclear Suppliers Grup. The U.S. has a huge interest in India s markets; especially expensive military hardware. There is als the China factr. But since Mr. Trump has very recently described India as a leading glbal pwer and expressed his readiness t supprt it in reaching that status, India can perhaps relax. It is frtunate since it is nt dependent n American aid, which can be cut ff r reduced at will. India supprted t the creatin f a Palestinian state accrding t UN Reslutin 181 (1948). Hwever, there had been sme speculatin that in the face f the U.S. threats ver the reslutin, as well as Mr. Netanyahu s frthcming visit t India in January, India wuld dilute its supprt t thse principles in favur f clse strategic ties with bth natins. In chsing t vte fr the reslutin at the UNGA, India has shwn clarity f purpse that als aligns with the brad glbal cnsensus. Cntext: [19] Anther tl f reslutin : FRDI Bill The Financial Reslutin and Depsit Insurance Bill, 2017 (FRDI Bill), intrduced in the Lk Sabha in August, 2017, is under cnsideratin f the Jint Cmmittee f the Parliament. have given rise t cncerns ver prtectin fr bank depsits in the prpsed law The FRDI Bill prvides fr the setting up f a Reslutin Crpratin which wuld replacethe currently existing Depsit Insurance and Credit Guarantee Crpratin (DICGC) which is nw an arm f the RBI. Certain misgivings have been expressed in the media regarding bail-in prvisins f the FRDI Bill. Finance Ministry stated that The FRDI Bill d nt take away frm the gvernment s implicit guarantee t depsitrs. They prvide additinal prtectins t the depsitrs in a mre transparent manner. 39

41 INSIGHTS int EDITORIAL The Financial Reslutin and Depsit Insurance Bill, 2017 The Gvernment has said, FRDI Bill is far mre depsitr friendly than many ther jurisdictins, which prvide fr statutry bail-in, where cnsent f creditrs r depsitrs is nt required fr bail-in. Ministry f Finance said, Gvernment s implicit guarantee fr Public Sectr Banks remains unaffected. Prvisins: 1. Reslutin Crpratin: The Bill establishes a Reslutin Crpratin t mnitr financial firms, anticipate risk f failure, take crrective actin, and reslve them in case f such failure. The Crpratin will als prvide depsit insurance up t a certain limit, in case f bank failure. 2. Classificatin financial firms The Reslutin Crpratin r the apprpriate financial sectr regulatr may classify financial firms under five categries, based n their risk f failure. These categries in the rder f increasing risk are: (i) lw, (ii) mderate, (iii) material, (iv) imminent, (v) critical. 3. Taking ver the management The Reslutin Crpratin will take ver the management f a financial firm nce it is classified as critical. It will reslve the firm within ne year. 4. Reslutin methds Reslutin may be undertaken using methds including: (i) merger r acquisitin, (ii) transferring the assets, liabilities and management t a temprary firm, r (iii) liquidatin. If reslutin is nt cmpleted within a maximum perid f tw years, the firm will be liquidated. The Bill als specifies the rder f distributing liquidatin prceeds. Hw des it wrk? In case f a bank failure, the prpsed crpratin will prvide depsit insurance up t a certain limit, which has nt been specified. Currently, bank depsits f up t Rs 1 lakh are insured but there are few banks that have failed in India in recent years as the Reserve Bank f India (RBI) has stepped in t wrk ut a reslutin plan withut creating any risk fr depsitrs. The bill has suggested that the use f the bail-in prvisin may result in cancellatin f a liability, which culd extend t bank depsits r culd lead t mdificatin f the terms r changing the frm f the asset class. This prvisin wuld be last in the line fr payments in case f liquidatin. The depsit insurance scheme currently cvers all banks, cmmercial, reginal rural and c-perative banks. S far in 2017, mre than Rs 28 crre was sanctined frm the insurance scheme t all c-perative banks accrding t infrmatin n the DICGC website. The bill prpses t establish a reslutin crpratin t mnitr financial firms and versee the liquidatin, which was nt the case in s far. The RBI which has been in charge f bank liquidatins r reslutins will als n lnger be in charge. Once a financial services cmpany, including a bank, slips int critical categry, the reslutin crpratin will take ver the firm and prepare a reslutin plan during a year, which can be extended by anther 12 mnths. The cntrversial prvisin f bail in t reslve the stressed financial services cmpanies. The ther ptins include mergers, transfer f assets and liabilities t anther entity, a bridge financial firm (where a new cmpany is set up t take ver the assets, liabilities and management as was the case with UTI), r liquidatin via the Natinal Cmpany Law Tribunal. The Parliamentary panel is expected t submit its reprt, which will be cnsidered by the Unin Cabinet befre the Bill is tabled in Parliament again. But the plan has generated a lt f heat with bank unins as well as plitical parties criticising the mve that has the ptential t use depsits, beynd the insured amunt, fr reviving the bank. 40

42 INSIGHTS int EDITORIAL Benefits The gvernment believes that the bill seeks t prtect custmers f financial service prviders in times f financial distress and als help encurage discipline amng the financial service prviders by putting a limit n the use f public mney t bail ut distressed entities. It als seeks t decrease the time and csts invlved in reslving distressed financial entities. A large number f retail depsitrs can benefit as the FRDI Bill seeks t decrease the time and csts invlved in reslving distressed financial entities and help in maintaining financial stability in the ecnmy by ensuring adequate preventive measures as well as prvide necessary instruments in an event f crisis. It will prvide a cmprehensive reslutin framewrk fr the ecnmy and inculcate discipline amng financial service prviders in the event f financial crisis. It prmtes ease f ding business in the cuntry, imprves financial inclusin and increase access t credit, which may lead t the reductin f the cst fr btaining credit. It wuld give increased access t finance enhancing enterprise grwth, which in turn leads t preserving emplyment, grwth and the creatin f new jb pprtunities. The prblems The main pints f bjectins t the legislatin: The bill s biggest prblem is its cntrversial prvisins f a bail-in clause which suggests that depsitrs mney culd be used by failing financial institutins t stay aflat. The Reslutin Crpratin (rescue bdy), which is prpsed under the bill, can use public mney in case the bank starts t sink. The bill empwers the rescue bdy t decide the amunt insured fr each depsitr. The rescue bdy can cancel even the Rs 1 lakh insurance that depsitrs get under the current law and a bank can even declare that they dn t we them any mney at all. Peple are wrried that if this bill is passed in Parliament, the depsitrs rights may g dwn the drain, but that is ONLY if the bank is ging dwn the drain, and that is a rare scenari. It may seek t place the entire financial structure f the cuntry at the mercy f the gvernment. The legislatin prpses t amend the SBI Act in rder t insert a clause fr its liquidatin which gives rise t apprehensins that in due curse the gvernment might even take recurse t privatisatin f the SBI. What has been the gvernment s respnse? The gvernment has said that India s FRDI Bill is mre depsitr-friendly than that f many ther jurisdictins that prvide fr statutry bail-ins, where the cnsent f creditrs r depsitrs is nt required fr bail-ins. It has als said that it des nt prpse in any way t limit the scpe f pwers t extend financing and reslutin supprt t banks, including public sectr banks. The gvernment s implicit guarantee fr public sectr banks remains unaffected, the Finance Ministry has said. What next? The gvernment f the day is well within its pwers t bring in whatever legislatins it deems fit. But eventually, all such measures have t have a nd frm the biggest and the highest curt: the peple s curt. The ultimate test f a gvernment lies in the peple s acceptance f its plicies. There are cncerns that the Bill may nt clearly lay dwn the quantum f prtectin fr depsits, r classify depsits separately. The prpsed FRDI bill may be a fiscal plicy and nt a tax as such but the gvernment must remember it shuld nt crss the threshld f the general public s acceptance levels. 41

43 INSIGHTS int EDITORIAL Cntext: [20] Seeing thrugh a glass darkly Much has changed since Nvember 26, 2008 terrr attacks n multiple targets in Mumbai and terrr has evlved int an even mre dangerus phenmenn. Recent variants represent a paradigmatic change in the practice f vilence. T deal with the terrr threat, there must be far greater sharing f intelligence amng agencies wrldwide. A different genre It is difficult t recgnise the new generatin f terrrists as a mere extensin f the earlier lt f radical Islamist terrrists. The new age terrrist seems t belng t an altgether different genre f terrrism. The spate f recent attacks in Eurpe and parts f Asia, frm 2015 t 2017 Beginning with the attack n the Charlie Hebd ffices in Paris in January 2015; the majr incidents at Brussels and Istanbul Ataturk airprts as well as the Bastille Day attack in Nice, France, all in 2016; t the string f attacks in Lndn, Stckhlm, Barcelna and New Yrk, in 2017 are very different in structure and the mrphlgy frm attacks f an earlier perid. Islamic State, Standing ut frm the crwd A large number f terrr attacks in the past three years have been attributed t the handiwrk f the Islamic State (IS). IS is distinguished frm many f the ther radical Islamist grups such as al-qaeda and its affiliates. The IS s recruitment techniques, especially its ability t prselytise ver the Internet, including direct t hme jihad as als its mre brutal brand f vilence, set it apart frm earlier variants f radical Islamist terrr. Even while the IS has gained a great deal f prminence due t its brand f vilence, ther terrr netwrks such as al- Qaeda and its affiliates have cntinued t be n less active. The Bk Haram (Nigeria) in Africa has been respnsible fr mre killings than mst peple wuld realise. The Afghan Taliban and the Haqqani netwrk have carried ut several spectacular attacks inside Afghanistan. The Tehrik-e-Taliban Pakistan (TTP) and the Lashkar-e-Jhangvi have carried ut several attacks inside Pakistan. Pakistan prvides the wherewithal and the supprt t terrr utfits such as the Lashkar-e-Taiba and the Jaish-e- Mhammad t launch well-planned attacks n Indian targets. Al-Shabab (Smalia) frmalized ties with Al-Qaeda, became the internatinal militant grup s wing in the Hrn f Africa. Mst f these utfits cntinue t adpt earlier methdlgies. These have prved n less effective than thse fllwed by the IS. The terrr attack n a msque in Nrth Sinai, Egypt in Nvember this year, which killed ver 230 persns, is ne such example. In December, the TTP was respnsible fr a terrr attack n an agricultural training institute in Peshawar, Pakistan. Differences amng terrr utfits, d nt, hwever, preclude a cmplicated pattern f relatinships when it cmes t peratinal aspects. Incrrect perceptin n agencies f intelligence failure Understanding the cnstantly altering trajectry f terrr is imprtant befre charges f intelligence failure are levelled. It has becme cmmn practice t attack agencies f intelligence failure whenever a majr terrr attack takes place. This need nt be the case in every instance. The usual charge levelled is f the failure f intelligence agencies t cnnect the dts. Mst ften, this is nt true. There are many ther reasns fr adequate intelligence nt being available t prevent a terrr attack. Intelligence agencies are well-versed in the latest techniques f intelligence gathering: 42

44 INSIGHTS int EDITORIAL One cmmn fallacy is that intelligence agencies have remained static, are rted in the past, and that their persnnel are inadequately trained t handle current day intelligence tasks. Agencies btain vast amunts f infrmatin frm bth human and technical intelligence, nt excluding signal intelligence and electrnic intelligence, intelligence frm satellites and pht recnnaissance, etc. This is apart frm pen surce intelligence. Agencies emply data mining techniques and are familiar with pattern recgnitin sftware. Tday, nise and signals cnstitute valuable meta-data. Analysing meta-data has prduced mre precise infrmatin and intelligence than is pssibly envisaged, and agencies well recgnise the value and utility f this. In additin, intelligence agencies have becme highly prficient in mnitring and expliting pen surce material. Mapping and analysis f scial netwrks is tday a critical aspect f their wrk. This is especially useful when it cmes t unearthing cvert terrr netwrks. Many intelligence agencies tday have an extensive database f several thusands f terrrists and ptential terrrists. What is the real prblem? Prblems arise frm inadequate sharing f intelligence acrss institutins and cuntries. The real prblem is that when dealing with terrrism and terrr netwrks, n tw situatins in the actual wrld are identical. The nature f threats is such that they cntinue t evlve all the time. Bth the 2001 terrr attack in New Yrk and the Nvember 2008 attack in Mumbai were ne f a kind with few parallels at the time. Anticipating an attack f this nature remains in the area f an intelligence gap rather than an intelligence failure. An intelligence gap is ne denting an absence f intelligence utput while an intelligence failure is ne where, based n available evidence, n warning was issued. Newer challenges faced by intelligence agencies One f the majr challenges that all intelligence agencies face is a qualitative understanding f the newer, and many pst-mdern threats. These newer generatin threats, including thse by terrr grups and utfits, ften lie belw the radar r beynd the hrizn. Anticipating such threats and their nature requires intelligence agencies t be cnstantly ahead f the curve. Anticipating newer threats is nly partly facilitated by tday s technical advances such as new cmputing and cmmunicatin technlgies. Hwever, these alne are nt ften enugh t meet tday s intelligence needs. As prblems becme mre cmplicated, and as terrr netwrks becme even mre sphisticated, there has t be recgnitin that the situatin demands better understanding f factrs that are at wrk. Way Frward Alngside this, and t fill the gap, there is a case fr far greater sharing f intelligence and infrmatin amng intelligence agencies wrldwide than it exists at present. This is imprtant t prevent anther terrr attack n the lines f the Mumbai 2008 attack. It nw transpires that certain freign intelligence agencies had additinal infrmatin abut the pssible attack which was nt shared in time, and which led t an intelligence gap. This culd have been avided. Mre imprtant, such a situatin shuld never arise in the future. Terrr and terrrism is a universal phenmenn. Every natin is bund t share able with it t prevent a pssible majr terrr attack. 43

45 INSIGHTS int EDITORIAL Intrductin: [21] Pwer f the cllective Dmestic vilence, r intimate partner vilence (IPV) as it is smetimes called, is a wrldwide prblem. Intimate partner vilence is referred as a threatened physical, sexual, financial r emtinal abuse f a wman by their intimate partner. Dmestic vilence in India includes any frm f vilence suffered by a persn frm a bilgical relative, but typically is the vilence suffered by a wman by male members f her family r relatives. The greed fr dwry, desire fr a male child and alchlism f the spuse are majr factrs f dmestic vilence against wmen in rural areas. IPV in India Dmestic vilence r IPV is currently defined in India by the Prtectin f Wmen frm Dmestic Vilence Act f A 2014 study in The Lancet reprts that the reprted sexual vilence rate in India is amng the lwest in the wrld, the large ppulatin f India means that the vilence affects 27 5 millin ver wmen their lifetime. The instance f vilence was reprted t be lwest amng Buddhist and Jain wmen, and highest amng Muslim wmen in India. Accrding t United Natin Ppulatin Fund Reprt, arund tw-third f married Indian wmen are victims f dmestic vilence and as many as 70 per cent f married wmen in India between the age f 15 and 49 are victims f beating, rape r frced sex. In India, mre than 55 percent f the wmen suffer frm dmestic vilence, especially in the states f Bihar, U.P., M.P. and ther nrthern states. Physical injury is the mst visible frm f dmestic/intimate partner vilence. Emtinal abuse has been gaining mre and mre recgnitin in recent years as an incredibly cmmn frm f dmestic vilence within the private hme thrughut develping natins such as India. Mst f the risk factrs fr intimate partner vilence identified in slums appear t be similar t thse identified in nn-slum settings in India. Fr example, wmen s emplyment has been fund t be a risk factr fr intimate partner vilence in bth slums and nn-slum settings in India. In Indian families with patriarchal nrms, wmen with higher incme r status relative t their partners are mre likely t be seen as gender deviant and t face vilence (NFHS). In Indian families with patriarchal nrms, wmen with higher incme r status relative t their partners are mre likely t be seen as gender deviant and t face vilence. Impact f Dmestic vilence n Wmen s Health In a study cnducted in India reprted that wmen with a lifetime histry f IPV were mre likely t have reprted prer physical and mental health cmpared t thse withut a lifetime histry f IPV. Vilence against wmen is a significant public health prblem in India with prevalence estimates ranging frm 6 per cent in ne State (e. Himachal Pradesh) t 59 per cent in anther (i.e. Bihar). In the Natinal Family Health Survey, the prevalence f vilence against married wmen in varius slum areas in India was reprted t be between 23 and 62 per cent. The factrs assciated with intimate partner vilence were early marriage, husband s alchl use, wmen s emplyment, and justificatin f wife beating. Nrms related t gender rles, cmmunity attitudes and the brader scial cntext, including the media, play a significant rle in the acceptance and prmtin f intimate partner vilence. Rle f Self-Help grups t address IPV Strategies t address IPV have included legal refrms, awareness creatin drives, and strengthening f wmen s civil rights. As criminal justice slutins have largely been inaccessible t scially precarius wmen, a mre inclusive alternative is t have cllective-based reslutin mechanisms. The ptential f large-scale grups f wmen, such as self-help grups (SHGs), becmes critical in the Indian cntext. 44

46 INSIGHTS int EDITORIAL Many mdels f cmmunity dispute reslutin mechanisms have been experimented in India like, The Nari Adalats (wmen curts) in varius States, Wmen s Resurce Centres (Rajasthan), Shalishi (West Bengal), and Mahila Panchayats (Delhi) They have seen IPV as a public issue rather than a persnal prblem. Several NGOs have c-pted these mdels s that wmen can reslve cases f vilence withut getting entangled in tedius legal prcesses. SHGs are the mst widely present cllectives acrss regins. The experiences f large-scale prgrammes ffer valuable insights int actin fr IPV redressal within SHG-led develpment mdels. Cllectives f wmen need adequate investment fr building their capacities and mediatin f IPV requires specialised structures t avid manipulatin by kinship relatins and plitical affinities. Way Frward Vilence against wmen is an extreme manifestatin f gender inequality in sciety and a serius vilatin f fundamental human rights. Nt all grups f wmen becme safe spaces t discuss vilence. SHGs must first becme enabling spaces where the ecnmic and scial cncerns f wmen are stated as pririties. Freedm frm vilence must be stated as a necessary cmpnent f empwerment. It takes time fr mst wmen t recgnise that vilence is unacceptable. T enable them t understand this, there must be investment in specific training, and gender analysis prcesses. SHGs are mstly seen as administrative entities. Their scial rle can be enhanced t tackle the widespread prblem f IPV. Cntext: [22] Cuntering grwing inequality Incme inequality in India has reached histrically high levels with the share f natinal incme accruing t India s tp 1 per cent earners tuching 22 per cent in 2014, while the share f the tp 10 per cent was arund 56 per cent, accrding t the Wrld Inequality Reprt 2018 released. Wrld Inequality Reprt 2018 Wrld Inequality Reprt is a reprt by the Wrld Inequality Lab at the Paris Schl f Ecnmics that prvides estimates f glbal incme and wealth inequality based n the mst recent findings cmplied by the Wrld Wealth and Incme Database (WID). WID, als referred t as WID.wrld, is an pen surce database that is part f an internatinal cllabrative effrt f ver a hundred researchers in five cntinents. The Wrld Inequality Reprt 2018 has brught int fcus an aspect f ecnmic prgress in India. The reprted finding that the tp 1% f incme earners received 6% f the ttal incme in the early 1980s, clse t 15% f it in 2000, and receives 22% in Trends in Glbal Incme inequality Glbal incme grwth dynamics are driven by strng frces f cnvergence between cuntries and divergence within cuntries. Glbal dynamics are shaped by a variety f natinal institutinal and plitical cntexts. Since 1980, incme inequality has increased rapidly in Nrth America and Asia, grwn mderately in Eurpe, and stabilized at an extremely high level in the Middle East, sub-saharan Africa, and Brazil. The prest half f the glbal ppulatin has seen its incme grw significantly thanks t high grwth in Asia. But the tp 0.1% has captured as much grwth as the bttm half f the wrld adult ppulatin since

47 INSIGHTS int EDITORIAL Incme grwth has been sluggish r even nil fr individuals between the glbal bttm 50% and tp 1%. This includes Nrth American and Eurpean lwer- and middle-incme grups. The rise f glbal inequality has nt been steady. While the glbal tp 1% incme share increased frm 16% in 1980 t 22% in 2000, it declined slightly thereafter t 20%. In China, India, and Russia inequality surged with pening and liberalizatin plicies. Incme inequality in India Incme inequality in India has reached histrically high levels. In 2014, the share f natinal incme accruing t India s tp 1% f earners was 22%, while the share f the tp 10% was arund 56%. Since the beginning f deregulatin plicies in the 1980s, the tp 0.1% earners have captured mre grwth than all f thse in the bttm 50% cmbined. The middle 40% have als seen relatively little grwth in their incmes. Inequality rse frm the mid-1980s after prfund transfrmatins f the ecnmy. In the late seventies, India was recgnised as a highly regulated, centralized ecnmy with scialist planning. But frm the 1980s nwards, a large set f liberalizatin and deregulatin refrms were implemented. The structural changes t the ecnmy alng with changes in the regulatin appear t have had significant impact n incme inequality in India since the 1980s. Indian inequality was driven by the rise in very tp incmes. Cmparisn between India and China In particular, the reprt enables a cmparisn f ecnmic prgress made in India and China. Cmparisn between China and India is meaningful as they had bth been large agrarian ecnmies at similar levels f per capita incme when they had started ut in the early 1950s. Mrever, the absence f demcracy in a sciety des nt by itself guarantee faster ecnmic grwth and greater incme equality. Since 1980, while the Chinese ecnmy has grwn 800% and India s a far lwer 200%, inequality in China tday is cnsiderably lwer than in India. 46

48 INSIGHTS int EDITORIAL The share f the tp 1% f the Chinese ppulatin is 14% as ppsed t the 22% reprted fr India. It is emphasised that grwing inequality need nt necessarily accmpany faster grwth, bserving that inequality actually declined in China frm the early 21st century. Pst 1980s, inequality has risen in China and India. Inequality rse t extreme level in India and mderate level in China as China invested mre in educatin, health and infrastructure fr its bttm 50 per cent ppulatin. China has grwn faster, has far lwer pverty and far higher average incme, and its incme distributin is less unequal at the very tp. The Wrld Develpment Indicatrs data released by the Wrld Bank shw that per capita incme in China was five times that f India in 2016 while the percentage f the ppulatin living n less than $1.90 a day was abut 10 times less at the beginning f this decade. China had by the early 1970s achieved the level f schling India did nly by the early 21st century. The spread f health and educatin in that cuntry enabled the Chinese ecnmy t grw faster than India by exprting manufactures t the rest f the wrld. The resulting grwth lifted vast multitudes ut f pverty. As the human capital endwment was relatively equal, mst peple culd share in this grwth, which accunts fr the relative equality f utcmes in China when cmpared t India. An ingredient f this is als the greater participatin f wmen in the wrkfrce f China, an utcme that eludes India. Demcracy nt a barrier t develpment India has lwer per capita incme, persistent pverty and by all accunts rising inequality. Demcracy per se cannt be held respnsible fr this. There are States in India with superir scial indicatrs than China. This shws that nt nly is demcracy nt a barrier t develpment but als that similar plitical institutins acrss India have nt resulted in same develpment utcmes acrss its regins. Way frward There is need t spread health and educatin far mre widely amidst the ppulatin. The rle f prgressive taxatin is significant in tackling rising inequality at the tp. At the same time, t tackle inequality at the bttm there is a need fr mre equal access t educatin and gd paying jbs. Gvernment need t invest mre in the future (educatin and health), bth t address current incme and wealth inequality levels and t prevent further increases. Cntext: [23] There isn t ging t be a war between India and China tday The schlar f India-China relatins n the cnturs f the new Cld War in Asia and Beijing s visin fr the Indian Ocean speaks abut the challenge t India frm China in Suth Asia, his research n the 1962 war, and why he thinks there will nt be anther India-China war, even as India firms its cunter-alliance in the Ind-Pacific. Rle f the Sviet Unin and the U.S. was a key t the utcme in In a war-like situatin between India and China tday, what psitin wuld the U.S. and Russia take? Trade between India and China is imprtant fr bth the natins and its grwing cntinuusly. Any impact t the trade wuld adversely affect bth the natins. S there is unlikely t have a war between India and China tday. What we re seeing tday is a new Cld War in Asia, an infrmal alliance between India and Japan [versus China]. The United States is a bit unpredictable under Dnald Trump, but it had under previus president embarked n a pivt t Asia, with the rise f China as the main cncern. Fr the first time, since the 15th century and Admiral Zheng He, the Chinese are nw in the Indian Ocean. China didn t even have a prper navy until recently. S nw when it talks f One Belt One Rad, and the ancient maritime trade rutes, it must be remembered it s nt s ancient. 47

49 INSIGHTS int EDITORIAL In the Indian Ocean, we have India, which cnsiders it its wn lake, as it were. But als in the Indian Ocean is the U.S. s mst imprtant base, Dieg Garcia. And the French cntrl 2.5 millin acres f land in the Indian Ocean. This is why these alliances are grwing. Had Dklam stand-ff this year was nt abut China s designs n India, but aimed t drive a wedge between India and Bhutan? Bhutan is China s nly neighbur that desn t have diplmatic ties with it. Relatins are maintained thrugh these bundary talks, which have been ging n fr mre than tw decades. Bhutan has been under Indian influence, but it is nw asserting itself as a svereign pwer. (In recent UNGA reslutin n Jerusalem issue India vted in favur f it but Bhutan abstained frm vting.) Why did China even need the rad in Dklam? Maybe the plan was t get Indian trps ut f Haa (Bhutan s Haa Valley) and get them mre directly invlved in this cnflict, which wuld embarrass many Bhutanese. The statements frm Bhutan at the time, which were very cautius, and many Bhutanese think that India verreacted and wanted t shw its cntrl ver Bhutan. China is n a charm ffensive there (in Bhutan). They re sending acrbats there, circus perfrmers, ftball teams, turists, schlarships fr students. Clearly China wants t extend its influence t all its neighburs, and that includes Bhutan. What des this mean fr India-China relatins in the future, especially the reslutin f the bundary questin? The Indian Ocean is ging t becme the biggest challenge in the near future. It will be hard t believe bth natins will fight anther war in the Himalayas. China has in the past suggested a swap between Arunachal/Suth Tibet and Aksai Chin. On paper that sunds reasnable, but we dn t knw hw serius the Chinese are. Als, if China were t accept the Line f Actual Cntrl (LAC) as the brder, it culd cntrl any dissidence within. In India, which is a demcracy, the gvernment culdn t just g ahead with that slutin. Because it wuld be a plitical suicide. But in the larger picture, China seems nt t care if the bundary remains unreslved. They are nt lking fr a slutin; they are lking fr a strategic advantage. Where there is a cnflict f interest building up is in the Indian Ocean. The jint naval exercises with Australia, US, Japan and ther cuntries are imprtant. D yu see the newly cnvened Quad, f India, Australia, Japan and the U.S., building up as a military alliance? Yes. It is almst inevitable. It has t d with the rise f China and with ecnmic pwer there cmes plitical pwer and then military pwer, which yu need t prtect yur interests. The Maldives has recently cncluded a free trade agreement with China, and is grwing much clser t Beijing in all respects. The questin is, hw can India cunter China s bvius advantage in terms f mney pwer? S far, India has been an bserver abut Chinese mves in the Indian neighburhd. The same thing is happening in the Seychelles. China is paying enrmus attentin t the cuntry, f less than 100,000 peple. India s eastern brder with Myanmar is als s much mre imprtant. But India spends an inrdinate time n its western brder (with Pakistan). Myanmar is China s crridr t the Indian Ocean. What India can d t cunter it is t pay mre attentin. Will the China-Pakistan Ecnmic Crridr (CPEC) change the plitics f the regin? The success f CPEC depends n the stability f the cuntry Pakistan and China will have t deal mre and mre with its internal dynamics. In additin t it, the CPEC cnnects t Xinjiang, away frm China s ecnmic centres, unlike, say, Myanmar that cnnects t China s eastern ecnmic znes and prts. Over the past year, given the prblems in Rakhine state, China is even lking fr a third rute int the Indian Ocean t bypass the chke-pint at the Strait f Malacca. Here China is pushing the idea f the Kra Canal (frm Gulf f Thailand t the Andaman Sea). S fr China what is imprtant is the gal, nt s much the rutes t it. 48

50 INSIGHTS int EDITORIAL Mving t the east is China s cntrl in Myanmar inevitable, r is there smething India can d? India has three main prblems n its bundary with Myanmar cmpared t China. Infrastructure: On Myanmar s nrthern brder, China has super-highways, an airprt nt far frm the brder. Kunming has been upgraded t a huge internatinal airprt. On the Indian side, infrastructure is still a majr prblem. It s better than 10 years ag perhaps, but nt cmparable t what already exists n the Chinese side. Red-tape and bureaucracy: There are still many trade restrictins n the Indian side and several checkpints. An integrated checkpint, which is being planned by India, will help. Undergrund rebel grups perating n the Indian side, which can carry ut attacks and extrt mney all alng the brder. India has t reslve these prblems as Peple f Myanmar wuld like t d much mre trade with India, because the dependence n China is s massive, it is wrrying fr everyne, including their military. Cntext: [24] Out at sea In its Natinal Security Strategy (NSS), the U.S. has called China a challenger and rival while welcming India s emergence as a leading glbal pwer and strnger strategic and defence partner, and declared that it seeks t increase Quadrilateral cperatin with Japan, Australia, and India. The NSS als states that the U.S. wuld supprt India s grwing relatinships thrughut the regin. While the brader emphasis n imprving the partnership is welcme, plicymakers in New Delhi shuld be cautius and cgnizant n its natinal interests. US s natinal security strategy: Key pints Geplitically, the NSS places the greatest emphasis fr American interests n the Ind-Pacific regin, an area that includes India. It is interesting t nte that the NSS uses this term, instead f Asia-Pacific, indicating that the United States has as deep an interest in Suth Asia as it des in East Asia. The dcument explicitly includes India in its definitin f the Ind-Pacific, which stretches frm the west cast f India t the western shres f the United States, [and is] the mst ppulus and ecnmically dynamic part f the wrld. In fact, abut half f the wrld s ppulatin lives within this Ind-Pacific regin. The fllwing items were utlined. 1. Cmbating China The strategy deems China, like Russia, t be a revisinist pwer, determined t reshape the wrld accrding t its wn ideals. The strategy calls fr strnger traditinal alliances and new partnerships in Asia amid a geplitical cmpetitin between free and repressive visins f wrld rder. 2. Cuntering Russia The strategy is harsher n Russia than the president has been in public cmments. It says Russia uses subversive measures t weaken America s credibility and Eurpean gvernments. 3. Budding India Alliance The strategy prmtes a deeper partnership with India. Pakistan, n the ther hand, must crack dwn n transnatinal terrrists perating frm its sil, it says. But the dcument ffers Pakistan the carrt f greater trade and investment ties if it helps n cunterterrrism. The reginal apprach culd be part f the brader effrt t cunter China, which is investing billins in Pakistan. 4. Fighting Glbal Threats Nrth Krea and Iran are singled ut as the leading threats t US security, fllwed by what Trump used t call radical Islamic terrrist rganizatins like the Islamic State grup and al-qaida. The strategy emphasizes cyber threats and says the administratin will assess such risks t security, energy, banking and transprtatin. 49

51 INSIGHTS int EDITORIAL While budding alliance with India is a welcming step, India shuld cautius n tw cunts. One, India shuld be wary f any attempts at being pitted as a frnt in the U.S. s effrts t check China s rise. Tw, while the ntin f the IndPacific sunds grandise and enticing, India must nt frget that its primary area f cncern is the IndianOcean Regin (IOR). India s freign affairs shuld be in line with Rules-based rder As its stature in glbal plitics increases, it is in the natins as well as glbal interest that India remains a balancing pwer. Fr instance, India s vte in the UN General Assembly ver Jerusalem shuld be seen in line with a rules-based wrld rder. At the same time, there is n questin that India shuld hedge against the rapid expansin f Chinese presence in the IOR. This is further underscred by recent acknwledgment by the Peple s Liberatin Army that it is planning t explre the pssibility f mre freign military utpsts in Africa, West Asia and ther areas. Fr India, gegraphically the area f cncern, and s the area f fcus, shuld mainly n IOR, stretching frm the Gulf f Aden t the Strait f Malacca. While reiterating its cmmitment t uphlding the established laws f the glbal cmmns, New Delhi shuld nt g adrift in the larger Ind-Pacific. As mre pwers make inrads int this strategically crucial space, India must cnslidate its psitin and nt expect thers t d its jb, fr it wuld nly mean ceding space in the lng run. Hw can India achieve this? There are tw ways f ding this beefing up Indian capacity and securing interests and then expanding partnerships t fill vids. India shuld undertake capacity building in its wn backyard be it Suth Asia r the IOR t secure its psitin as a leading glbal pwer. It is imperative fr plicy-makers in New Delhi t cnduct a reality check n relatins with ur neighburs. Over the last cuple f mnths, there have been hectic parleys with varius natins in varius frmats quadrilateral, trilateral, etc. But it cannt be at the expense f the neighburs. While being part f varius grupings is imprtant, it is imperative that they are in line with ur interests. That is where mre clarity is required n the recently resurrected Quad. Because except India fr the ther three the primary fcuses is the Pacific Ocean especially the Suth China Sea. Recent India s Key initiatives Sme recent initiatives illustrate the way frward fr India. Last mnth, India and Singapre cncluded an verarching bilateral agreement fr naval cperatin. Besides being nly India s secnd bilateral lgistics arrangement, it gives it access t the Changi naval base at the muth f the Strait f Malacca. With Singapre s assistance, India is als wrking ut mdalities fr jint multilateral exercises with the Assciatin f Sutheast Asian Natins (ASEAN). India is als negtiating similar lgistics agreements with several ther cuntries. Anther initiative which fits the bill is the Ga Maritime Cnclave hsted by the Indian navy last mnth where Navy Chiefs and maritime heads f 10 Indian Ocean littral states brainstrmed n ways t imprve cperatin in the regin. It is an India-led initiative where the navy has ffered t share infrmatin f maritime mvement in real-time. Way frward These develpments shw the way frward fr India t engage with like-minded cuntries in the regin withut getting entangled in grupings which are seen as being targeted r military in nature. 50

52 INSIGHTS int EDITORIAL This is the template fr India t take frward t build its primacy in the IOR befre venturing int adjacent waters while als making sure that its interests are taken heed f while getting int varius grupings and nt end up ding smene else s bidding. By cntinuing t secure the supprt f the United States fr ecnmic grwth and its security psitin in Asia, India first and fremst pursues its wn natinal interests and shuld maintain its strategic autnmy. Cntext: [25] Grwing Frests Mre than a year after Parliament passed the Cmpensatry Affrestatin Fund Act 2016 (CAF), the Ministry f Envirnment Frest and Climate Change (MEF&CC) is yet t rll ut the mandatry rules t implement it. In fact, the ministry in Nvember asked an extensin till January 3, The disclsure in Parliament that the Centre is nt ready with the rules t implement the Cmpensatry Affrestatin Fund (CAF) Act, 2016 demnstrates that the gvernment s reslve t meet a variety f envirnmental bjectives remains wefully weak. The Cmpensatry Affrestatin Fund Act, 2016 Act prvides fr the establishment f funds under the public accunts f India and the public accunts f each State which will be used fr cmpensatry affrestatin. It extends t the whle f India except the State f Jammu and Kashmir. Levies are impsed n develpment prjects that seek land inside a Reserved Frest r a Prtected Area (PA) in a sanctuary r a natinal park. These cllected levies are accrued in the CAMPA Funds which are t be utilised t plant trees elsewhere in rder t cmpensate the lss f frest due t develpment prjects. Salient features f the Act It seeks t establish the Natinal Cmpensatry Affrestatin Fund under the Public Accunt f India, and a State Cmpensatry Affrestatin Fund under the Public Accunt f each state. The payments int the funds include cmpensatry affrestatin, NPV, and any prject specific payments. The Natinal Fund will get 10% f funds cllected and the remaining 90% will g t respective State Fund. The cllected funds will be utilised fr affrestatin, regeneratin f frest ecsystem, wild life prtectin and infrastructure develpment. The act als seeks t establish Natinal and State Cmpensatry Affrestatin Fund Management and Planning Authrities t manage the funds. The determinatin f NPV will be delegated t an expert cmmittee cnstituted by the central gvernment. NPV quantifies the services prvided by the frest. It includes gds and services (turism and timber); regulating services (climate change); and nne-material benefits (recreatin). It seeks t prvide safety, security and transparency in utilizatin f CAMPA funds which are currently kept in Natinalized Banks and managed by an ad-hc bdy. These funds wuld be brught under the fcus f Parliament and State Legislatures by transferring them t nn-lapsable interest bearing funds. What is happening in the absence f rules? In the absence f the rules, frest departments in at least 15 states are undertaking affrestatin as per the state CAF guidelines released by MEF&CC in 2009, which are silent n the fundamental questin f what kind f land frest r revenue can be used fr carrying ut the drives. As a result they are using the funds under CAF t take charge f frestlands that are being cnsidered fr cmmunity wnership and management, under the Frest Rights Act, 2006 (FRA). 51