September 2018 Issue 01 - Dhyeya IAS
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September 2018 Issue 01
September- 2018
Contents Issue-1
Seven Important Issues 1-23
Business Conducive Nature of Indian States: N-SIPI
Military Reforms in India: Steadily Undergoing
SCO Peace Mission-2018: Countering Terrorism
Wages Inequality in India: Still Persist
Burning Disaster is Continued
Atal Bihari Vajpayee: A Statesman
National Sports University: A Gateway of Sports' Future
Seven Subjective Questions with Model Answers 24-28
Seven Important National & International News 29-34
Seven Brain Boosters & Seven MCQ's Based on Them 35-43
Seven Important Facts For Prelims 44
Seven Important Awards-2018 45-46
Seven Practice Questions for Main Exam 47
Current Affairs : Perfect 7
SEVEN IMPORTANT ISSUES
1. BUSINESS CONDUCIVE NATURE OF INDIAN STATES: N-SIPI
Why in News?
The National Council of Applied
Economic Research (NCAER) has
released its 2018 edition of NCAER
state Investment Potential Index
(N-SIPI). Covering 20 states and Delhi,
this is the third edition of the annual
N-SIPI that ranks India’s states on their
competitiveness in business and their
investment climate.
Introduction
NCAER launched the N-SIPI series in
March 2016 and the second N-SIPI
2017 was released in July 2017. N-SIPI
is a pioneering effort to provide
metrics of economic governance,
competitiveness and growth oppor-
tunities at the state and regional driven (ranking of business climate About National Council of Applied
levels. The Index is designed to provide built on firm surveys) as on a figure. Economic Research (NCAER)
a systematic and reliable “go-to” Each of the pillars is, in turn, based on Established in 1956, NCAER is India’s
reference for policy makers, existing a number of sub-pillars, ranging from 4 oldest and largest independent, non-
businesses and potential domestic and in the case of land to 11 in the case of profit, economic policy research
infrastructure. institute. NCAER’s work falls into four
overseas investors.
thematic areas: growth, macro, trade
Building on the success of N-SIPI A unique feature of the N-SIPI and economic policy; investment climate,
2016 and 2017, N-SIPI 2018 ranks the index is the integration of industry industry, infrastructure, labour and
competitiveness of Indian states on perceptions of the investment urban; agriculture and rural development,
six pillars: land, labour, infrastructure, potential and business climate of a natural resources and environment; and
economic climate, political stability & state along with the fundamentals poverty, equity, human development and
consumers. The focus of NCAER’s work in
governance and business perceptions. likely to drive investment decisions
these areas is on generating and analyzing
These six pillars are classified under in that state. Another unique feature
empirical evidence to support and inform
four broad categories: factor driven of the 2018 N-SIPI is the inclusion policy choices. It is also one of a handful of
(land and labour), efficiency driven of Goods & Service Tax (GST) think tanks globally that combine rigorous
(infrastructure), growth driven specific questions in the survey analysis and policy outreach with deep
(economic climate and political stability questionnaire for the perception data collection capabilities, especially for
and governance) and perceptions pillar of the index. household surveys.
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Key Findings of the 2018 the percentage of respondents growth and investment are truly
N-SIPI citing corruption as a constraint to outstanding.
conducting businesses is declining. Against the backdrop of the
¡ The key findings of the 2018 N-SIPI ¡
show that Delhi, Tamil Nadu, ¡ Getting approvals for starting a implementation of India’s long-
Gujarat, Haryana, Maharashtra business is second most pressing awaited goods and services tax,
and Kerala are the top six states for constraint faced by businesses. which aims to create an integrated
business investment potential. ¡ The 2018 survey shows that the common market and promote
¡ Although Assam, Jharkhand and difficulties in obtaining approvals competitive and cooperative
Bihar are ranked among the least for land, the quality of skilled federalism, the focus of many
favourable states for investment, labour and access to finance. These policy reforms is shifting to the
they are ranked higher under issues are also the focus areas of states. Given the growing state-
individual pillars, with Bihar doing the present government under the level investment opportunities,
better in the labour pillar, Assam in National Skill Development Mission N-SIPI 2018 is hence uniquely
the land pillar and Jharkhand in the launched in July 2015 and the Jan positioned to enable decision
economy pillar. Dhan Yojana in August 2014. makers to assess the business
potential offered by each state and
¡ Delhi tops the rankings under How 2018 N-SIPI is Beneficial develop each state in accordance
the third and fourth pillars on for Different Stakeholders? with its strengths and limitations.
infrastructure and economic
conditions in the state. ¡ Studies like the NCAER State ¡ NCAER will update this evidence-
Investment Potential Index based index annually. Along with
¡ Tamil Nadu comes in second place
are critical to increasing Department of Industrial Policy
and tops the rankings in labour and
competitiveness in the business and Promotion (DIPP’s) assessment
governance.
climate of states. What makes of business reforms and the
¡ Compared to the 2017 ranking, NCAER’s work unique is the aspect World Bank’s index on the ease
West Bengal, Tamil Nadu and of reaching out to stakeholders and of doing business, N-SIPI should
Punjab have made the most rapid working on the perception-related aid governments in policy making
gains in 2018, moving up by 11, 4 parameters. as well as allow both Indian and
and 4 spots to the 10th, 2nd and 12th ¡ NCAER index immensely aid state foreign investors to make informed
positions, respectively. governments by bringing issues investment decisions.
¡ Bihar and Karnataka face serious related to business and investment ¡ The state specific conditions on
challenges in the procurement of climate to the forth, forcing the ground ultimately determine
land. governments to make it a priority. success and failure of investment
¡ In terms of labour, Gujarat and ¡ The studies also support the projects and, therefore, affect
Haryana are perceived to be the bureaucracy in policymaking, aggregate trends. They also
best states, whereas Jharkhand, pooling resources and re- determine the geography of
Karnataka, Assam and Maharashtra engineering procedures. growth, whether growth is likely to
are lagging behind. ¡ The studies are very relevant to converge or diverge across states
¡ Under the survey pillar, investors, giving them a good going forward.
Uttarakhand and West Bengal saw understanding on where to invest.
a massive improvement in industry Analysis
¡ India is the fastest growing economy
perceptions with regard to the of the world and remains a highly ¡ The availability of an educated and
investment potential, but Andhra desirable investment destination. appropriately skilled workforce
Pradesh and Telangana suffered big The 2018 A. T. Kearney Foreign and competitive wages are central
losses in terms of the perceptions Direct Investment Confidence to the labour pillar. Interestingly,
of industrial firms. Index ranks India 11th in the world, there is an inverse relationship
above Singapore, Netherlands, between the number of technically
Constraints educated people in a state and
and Sweden: it is the only lower
¡ Corruption continues to be the middle-income country in the top perceptions about the availability
number one constraint faced by 25 countries ranked by the Index. of skilled labour, indicating that the
businesses. But perceptions of With India being the world’s third kind of technical education being
corruption may be changing as largest market, the prospects for provided is inappropriate.
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¡ High dynamism and concentration year also witnessed significant steps schemes. Several labour reform
of industries can generate negative being undertaken towards resolution measures including legislative
externalities of congestion, including of problems associated with non- ones, are being implemented
high rental values and wages, performing assets of the banks, for creation of employment
overload on the infrastructure further liberalization of FDI, etc. , opportunities and for providing
and pollution. This can lead to thus strengthening the momentum of sustainable livelihoods for the
de-agglomeration of industries, reforms. After remaining in negative population who are largely engaged
which can force decentralization of territory for a couple of years, growth in the informal economy. Bridging
industries in long run. of exports rebounded in positive one the gender gaps in education,
¡ Gujarat, which has generally been during 2016-17 and strengthened skill development, employment,
known for its good infrastructure, further in 2017-18. earnings and reducing social
is no longer among the top 6 Concerns have been expressed inequalities prevalent in the
states. This does not mean that about growing protectionist tendencies society have been the underlying
infrastructure in Gujarat has in some countries. Additionally, goals of the development strategy
deteriorated but that some of the average crude oil prices have risen to enhance human capabilities.
other states have moved ahead when compared with last year. Some Revival of Private Investment
faster since the rankings are of these factors could have dampening
relative. effect on GDP growth of Indian ¡ Despite the fact that Indian
economy. However, with world growth economy has registered a fairly
¡ Perceptions of surveyed entre-
likely to witness moderate growth this robust growth in the 4 years
preneurs remained positive,
year, expectation of greater stability between 2014-15 and 2017-18,
which is in consistent with the
in GST, likely recovery in investment story on savings and investment
macroeconomic assessment of
levels and ongoing structural reforms, in the economy has not been so
Indian economy. Though, the
among others, should be supporting heartening. The investment rate
investment rate is still below its
(Gross Capital Formation (GCF) as
past peak, the investment and higher growth in this financial year.
a share of GDP) in the economy
growth cycles are beginning to declined by nearly 5.6 percentage
Suggestions
revive. points from all time high of 39% to
Despite an uncertain external
¡ The N-SIPI report confirms an 33.3% between 2011-12 and 2015-
environment and mixed domestic
emerging pattern of divergence, 16. This was on account of number
conditions, the Indian economy is
with some states being left behind, of factors viz. difficulties in acquiring
now growing at over 7% per year. But,
which is a cause for serious land, delayed and cumbersome
at the same time 2018 N-SIPI report
concern. environmental clearances, problems
has highlighted some risk factors,
on infrastructure front, etc. The
Overview of India’s Economic which should be taken care for growth
slow growth in fixed investment
Performance momentum to be continued in long
in the recent years could partly
run. Some of these measures are
After registering GDP growth of over be ascribed to twin balance sheet
following:
7 percent for third year in succession problem.
in 2016-17, the Indian economy is Improvement in social
headed towards somewhat slower Focus on Balanced Regional
Infrastructure, Employment and Development
growth, estimated to be 6.5 percent
in 2017-18. Even with this lower Human Development
¡ Balanced regional development
growth for 2017-18, GDP growth has ¡ To engineer an inclusive and is an important condition for
averaged 7.3 percent for the period sustainable growth for India, the the harmonious and smooth
from 2014-15 to 2017-18, which is the social infrastructure like education, development of a country. It does
highest among major economies of health and social protection are not imply equal development of
the world. That this growth has been being given utmost priority by the all regions of a country. Rather it
achieved in a milieu of lower inflation, government. The government has indicates utilization of development
improved current account deficit been enhancing the expenditure on potential of all areas as per its
and notable reduction in the fiscal human capital along with adopting capacity so that the benefit of
deficit to GDP ratio. In addition to the measures to improve the efficiency overall economic growth is shared
introduction of GST, previous financial of expenditure by convergence of by the inhabitants of all the different
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regions of a country. Regional such as Hill Area Development special focus on backward regions like
balance demands distribution of Program (HADP), Additional North East of India, plateau interiors,
investment in such a way so that Central Assistance (ACA) for and the hilly, desert and island
the regional rates of growth in the Left Wing Effected (LWE) region with special programs like,
different parts of the country be affected districts; improving basic Backward Region Grant Fund (BRGF),
equally attained, eliminating the infrastructure in backward areas food processing zone and promoting
regional disparities prevailing in such as all weather road to all
rural eco-tourism, where farming is
the country. Thus to attain regional villages under Pradhan Mantri
unsustainable.
balance, it is quite important that Gram Sadak Yojana (PMGSY), 24*7
the backward regions should try to power supply to every household
attain higher rate of growth than under Saubhagya scheme; bringing General Studies Paper- III
that of developed areas. In view digital connectivity in rural areas Topic: Indian Economy and issues
of this, government has brought through Bharatnet and so on. relating to planning, mobilization of
many policies and programs for resources, growth, development and
bridging the growth rate between Way Forward employment.
developed and developing states To achieve overall economic growth Topic: Inclusive growth and issues
since second five year plan. Some and development, it is imperative arising from it.
of these programs are: Bringing that all states contribute to the
Green Revolution in Eastern India developmental process with their
(BGREI); area specific programs optimum performance. It also need a mmm
2. MILITARY REFORMS IN INDIA: STEADILY UNDERGOING
Why in News? The Navy has 26 principal In recent years, however, there is
surface combatants, including one a discernable doctrinal shift from
Defence Minister Nirmala Sitharaman
aircraft carrier; 49 patrol and coastal attrition to manoeuvre warfare.
has addressed the armed forces on
combatants and 16 submarines. The The three services are organised
the eve of 72nd Independence Day
naval aviation has 35 combat aircraft for conducting largely conventional
and highlighted the various initiatives
and 97 helicopters. There is also a operations, although a very large
taken by the Central government to
coast guard with 52 patrol craft of component of the army is heavily
reform the Indian Army. She said that
various types involved in low intensity conflict
the Ministry has decided to reform the
Indian Army in "planned manner." The air force fields approximately operations. In all the three services,
680 combat aircraft, grouped in 32 there has been some infusion of state-
Defence Forces in India fighter ground attack and six fighter of-the-art equipment and armament,
squadrons; 40 armed helicopters but much less than what is needed.
The strength of the defence forces of grouped in three squadrons; 12
India on the active list is approximately transport squadrons; 19 helicopter Military Reform in Indian
1.3 million, with the Army dominating squadrons and miscellaneous Context
with nearly 1.1 million personnel. The squadrons covering tanker, maritime Military reform is defined in a number
Air Force has strength of 140,000 and attack, electronic countermeasures, of ways. In view of the conventional
the Navy fields approximately 55,000 survey, VIP movement, training and so (state-on-state) and sub-conventional
personnel. There is a territorial army on. (counterinsurgency and terrorism)
component of approximately 40,000. The growth of the defence forces challenges faced by India, it may
The organizational structure of the of India in the past has usually been be best defined as “an attempt at
Army is generally on traditional lines, as a reaction to contemporary crises. developing a significantly more
heavily influenced as it has been by the Resultantly, the defence forces have effective approach to existing or
erstwhile colonial British military. The generally remained unchanged, both future military challenges.” India’s
Indian army is competent in conducting structurally and in doctrinal terms, past experiences suggest that changes
both conventional as well as low except for incremental changes often witnessed in the conventional
intensity conflict (LIC) operations. to meet challenges as they arose. domain have been strategic, aimed at
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creating major shifts in the military’s a rise in trans-border terrorism, Chief’s of Staff Committee are
approach to war fighting. These have sponsored ethnic strife and low members of the CCS, although
also manifested in the organisational intensity conflicts. The impact service chiefs may be called for
domain in the form of large-scale of the unilateralism of the sole consultations, like many others.
structural realignments. An example of super power, the USA, over events
change in the approach to war fighting and policies in Asia, must also be Committees
was the attempt at compellence during factored in. Various committees have been
the mid-eighties after having followed constituted by government of India
Decreasing Budgetary Allocation
a doctrine of offensive defence in the from time to time with the objective
seventies. More recently, the strategy ¡ Since the late 1980’s, availability of of restructuring of defence forces.
of ‘Cold Start’ or ‘Limited Pre-Emptive funds has been a major constraint, Some of these committees are: Kargil
Offensive’ also qualifies as such a with allocations for defence being
Review Committee, Naresh Chandra
change. Change in the organizational less than 2.5 per cent of the GDP.
Committee and the most recent one is
domain is best illustrated by the Today, defence budget is merely 1.7
the DB Shekatkar committee.
structural changes that took place percent of GDP. Moreover, capital
expenditure on defence is merely The Shekatkar committee had
immediately after the failure in the
1962 India-China war. Some of the 30 percent of total budgetary suggested 99 recommendations for
major steps initiated in this regard allocation. structural changes in the Army and
included an increase in the size of the out of which the defence ministry has
War Preparedness accepted 65 after consultations with
army from 5,50,000 to 8,25,000 as well
as the raising of six mountain divisions ¡ Large number of vacancies in all the stakeholders. The first phase
and a new command headquarter. The defence force along with low teeth of the reforms involves redeployment
changes based on the 1975 Krishna to tail ratio has negatively affected and restructuring of approximately
Rao Committee report, which led to India’s war preparedness. Further, 57,000 posts of officers/JCOs/ORs and
the mechanisation of the army along obsolete and outdated war civilians. Major reforms concerning the
with strategic reorientation, is another equipments has acutely eroded following have been approved:-
example that comes to mind. In the our ability to fight two front war.
¡ Optimisation of signals
sub-conventional domain, the raising Decision Making Command establishments to include radio
of Rashtriya Rifles (RR) is an important monitoring companies, corps
Structure
and relatively recent example of air support signal regiments,
organisational change. Each of these ¡ Our higher defence structure
air formation signal regiments,
examples represents a major military is perhaps the weakest part of
composite signal regiments and
change. However, that does not imply the defence forces of India. The
merger of corps operating and
that all these changes were successful defence forces are not part of the
engineering signal regiments.
innovative steps or even an example of government of India, but are an
attached “office”. This arrangement ¡ Restructuring of repair echelons
evolutionary adaptation.
effectively keeps them outside the in the Army to include base
Why Needed? policy formulation loop. No doubt, workshops, advance base
the service headquarters are workshops and static / station
Strategic Challenges consulted on security issues, but workshops in the field Army.
¡ The security environment in that is no substitute for being part ¡ Redeployment of ordnance
South Asia continues to be of formulating policy. The highest echelons to include vehicle depots,
influenced by historical disputes; policy formulation body in the ordnance depots and central
nuclearisation; paucity of energy country is the Cabinet Committee ordnance depots apart from
sources; inadequate harnessing on Security (CCS). It gets its inputs streamlining inventory control
of the abundant water resources; from a variety of sources, viz. the mechanisms.
the growing potential of China; National Security Council (NSC),
the Cabinet Secretariat, different ¡ Better utilization of supply and
the war on terrorism; the spread
of fundamentalism; and the ministries, intelligence agencies transport echelons and animal
social upheaval in practically and so on. The inputs from the transport units.
all countries, due to the rising services are channeled through the ¡ Closure of military farms and Army
expectations of their people. The Ministry of Defence; neither the postal establishments in peace
scenario is further complicated by service chiefs nor the Chairman locations.
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¡ Enhancement in standards for that the Army’s task is in the ¡ Past experience with defence
recruitment of clerical staff and mountains, both against China and reforms has clearly indicated that
drivers in the Army. against Pakistan. Asking the country success has only been achieved
¡ Improving the efficiency of the to be prepared to fight “a two-and- when reforms benefit from the
National Cadet Corps (NCC). a-half front war” — Pakistan, China professional advice of the services
and internal security. and are backed by the willingness
Some other important reco-
The report has asked for the of the political establishment to
mmendations which are suggested by ¡
threshold of the annual defence enforce implementation.
Shekatkar committee are:
budget to be raised to 2.5-3 per ¡ The success of defence reforms
¡ Chief of Defence Staff (CDS) be
cent of GDP from the current level hinges on the availability of
made single point military adviser
of 1.7 per cent of GDP. financial resources. Unlike the
to Defence Minister on military
enhanced resources made
matters. CDS, the four-star post, is Lesson from Past
available for reforms after the 1962
essential for smooth functioning of
¡ Even as the enhancement of the war and while implementing the
the armed forces in the prevailing
teeth to tail ratio remains critical, 1975 committee recommendations
security environment but it cannot
its implementation without through the eighties, the allocation
be based on the US model. Seeking
addressing the simultaneous is likely to remain around the
more discussion on the need for
challenge of services functioning in existing levels. Therefore, the
integrated theatre commands, the
silos will yield only limited benefits. scope and size of reforms must be
expert committee says that while
The decision to cut down numbers tailored to the needs of specific
the US is an expeditionary power,
must be linked with synergised modernization targets, even if
India has to fight its wars on its
efficiencies amongst the Ministry these are achieved sequentially
own soil. India’s armed forces have
of Defence (MoD), affiliated rather than concurrently.
to defend the nation and stabilize
Public Sector Undertakings
the neighbourhood. Conclusion
(PSUs), Defence Research and
¡ A performance audit of the role Development Organisation (DRDO) Defence Reforms need not be a long
of non-combat organisations and the three services. drawn out process in view of the fact
under the Defence Ministry. The ¡ The streamlining of logistics that a large number of committees
organisations include those dealing initiated will remain sub-optimal have debated these and given their
with defence estates and accounts, unless the exercise is undertaken recommendations. Besides, we
the Director- General of Quality as a tri-service, ordnance factory can draw upon the experiences of
Assurance, the Ordnance Factory and quality assurance related other democratic countries to avoid
Board, the Defence Research and endeavour. prolonged experimentation. Many of
Development Organisation and the the recommendations of the Group of
¡ The ongoing reforms cannot be
NCC. The committee has suggested Ministers (GoM) and other committees
limited to the three services alone.
downsizing or rationalisation of require decisions at the political level
It must also include the Ministry of
manpower in these organisations, since the inertia and entrenched
Defence (MoD) as well as the entire
which can lead to significant parochial interests within the services
national security architecture with
savings. and the bureaucracy will have to be
a view to building an overarching
¡ The setting up of a joint services organisation that can cohesively overcome. Thus, there is an urgent
war college for training middle- address the challenge of hybrid need for undertaking defence reforms
level officers. wars. The emergence of threats in to ensure better preparedness and
¡ A roll-on defence budget to cyber and space, should therefore capability development, given the
have enough capital expenditure become the basis for creation of a nature of security challenges faced by
available for modernisation as cyber and space commands, with the nation.
against the present practice of a capability of both defensive and
surrendering unspent capital offensive actions.
budget at the end of each financial ¡ Reforms must be holistic and General Studies Paper- III
year. homogenous. Any attempt at Topic: Various Security forces and
¡ The committee has dismissed the piecemeal implementation is agencies and their mandate.
idea of reducing the manpower of unlikely to yield the desired
the 11.8 lakh strong Army, stating benefits and dividends. mmm
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3. SCO PEACE MISSION-2018: COUNTERING TERRORISM
Why in News? In this context, India and Pakistan share high value information mainly
will have to act in strict accordance because of the closed nature of the
India and Pakistan defence forces are
with the SCO Charter which states that various intelligence services and
taking part in an anti-terrorism drill
“the main SCO goals and tasks shall be: the mutual suspicion that generally
for the first time, organized by the
strengthening mutual trust, friendship exists between China and its Central
Shanghai Cooperation Organisation
and good-neighbourliness between Asian neighbours. It is even harder to
(SCO) in Russia. The aim of the drill
the member States; development imagine RATS sharing hard inputs on
is to strengthen ties and cooperation
of multifaceted cooperation in the terrorist hideouts, say in FATA region
between member countries to deal when Pakistan is also a member.
maintenance and strengthening
with growing terrorism. As part of
of peace, security and stability in The SCO has certainly emerged as
Shanghai Cooperation Organization the region and promotion of a new the most important regional grouping
(SCO) initiatives, SCO peace mission democratic, fair and rational political in the Eurasian region. India joining the
exercise is conducted biennially for and economic international order; joint SCO has largely a symbolic meaning.
SCO member states. The joint exercise combating terrorism, separatism and As of now, there is lack of clarity about
for the year 2018 was be conducted by extremism in all their manifestations, what it means for India in terms of
Central Military Commission of Russia fighting against illicit narcotics and any specific function and benefits. Yet,
from 22 August to 29 August 2018 at arms trafficking and other types of India cannot afford to be left behind
Chebarkul, Chelyabinsk, Russia. transnational criminal activity, and also in the strategic Eurasian region where
illegal migration”. only SCO has emerged as an important
Introduction
Interestingly, Uzbekistan will be geopolitical pole. Therefore, logic
The Shanghai Cooperation Organization demanded that India better be in than
participating in its first Peace Mission
(SCO) has made outstanding achieve- out of the SCO. But to be sure, multiple
exercise since 2010. The speculative
ments in combating the three evil conflicting interests would intersect at
reasons for this sudden return to
forces of terrorism, separatism and active participation are numerous. One the SCO forum, ranging from regional
extremism. Terrorism threatens to likely explanation is that Uzbekistan and global issues to combating
derail our developmental aspirations is becoming increasingly concerned terrorism.
and create sustained instability both with the rise of domestic extremism The SCO could become a new
within our countries and across as large numbers of Uzbek foreign frontier for India, but the Pakistan
national borders. India has always fighters return home from conflict factor could put a spanner in India’s
stressed for enhanced cooperation zones like Syria and Iraq. As a result, goals. The SCO sees ISIS rather than
between India and the SCO in the government may want to bolster Taliban as a serious threat to regional
countering these evils in the region. In its anti-terrorism capabilities and security. Moreover, Russia and China
order to provide the legal support for rebuild regional connections. After seemingly recognise Pakistan’s role
its counterterrorist activities and to President Trump proposed reducing in counter-terrorism. Clearly, India’s
implement the Shanghai Convention, the majority of the United States positions may be at odds there. Yet,
the SCO established the Regional Anti- assistance programs to the region in it could be used as a neutral forum to
Terrorist Structure (RATS) in 2002. The 2017, Uzbekistan may feel like it has discuss terrorism in a broader context
Executive Committee of the RATS is the nowhere else to turn for help enhancing as a leverage to obtain Beijing’s
permanent body of the SCO based in its antiterrorism capabilities. cooperation on curbing Pakistan-
Tashkent. It is noteworthy that the SCO sponsored terrorism or at least not to
countries established the practice of India’s Perspective unduly favour Pakistan. As it is, China’s
conducting joint antiterrorist exercises. From India’s perspective, RATS is concerns about the threat of terrorism
Regular participation in the meetings important for gaining information are growing and, as the Belt and Road
of Regional Anti-Terrorist Structure on extremist movements from SCO Initiative (BRI) moves ahead, Chinese
(RATS) and joint military exercises may States to Syria, Iraq, Afghanistan, and nationals are getting exposed to a
provide the new level of intelligence Pakistan. It also collects information greater threat from terrorist groups.
sharing and it also enhances counter- on the Taliban’s activities, but it is But mainly, India’s journey in the
terrorism strategies to fight terror. hard to imagine how all sides would SCO would depend mostly on how
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India and China weigh ties on security the manifestation of the worst forms Shanghai Cooperation
and economic calculations. Of course, of extremism, including terrorism, Organization (SCO)
it will also depend on other factors, especially among young people. SCO is The Shanghai Cooperation Organization
especially the future trajectory of Indo- taking steps to prevent religious, ethnic, (SCO) is an intergovernmental organization
US relations. It would be wise on the ideological and political extremism, founded in Shanghai on 15 June 2001
part of India and Pakistan to maintain ethnic and racial intolerance and by six countries, People’s Republic of
a low profile and not act as spoilers. xenophobia. Along with cooperation China, Kazakhstan, Kyrgyz Republic,
They will have to respect the 38 between law enforcement authorities Russia, Tajikistan, and Uzbekistan. With
assistance from the Asian Development
parameters of the SCO, which, among and judicial bodies, special emphasis
Bank and the United Nations Economic
other things, oblige member states will be placed upon strengthening the and Social Commission for Asia and the
to “avoid active military conflict” and leading role of states in combating Pacific, SCO members have developed
strictly adhere to maintain long-term terrorism, separatism and extremism, an intergovernmental agreement on
good-neighbourliness, friendship and as well as on the potential for voluntary facilitating international road transport.
cooperation. For India, the existing and responsible contributions from It is important to know that, the SCO does
bilateral-level defence cooperation civil society, including traditional not deal with resolving bilateral disputes,
with individual states should provide religious organizations, educational be it border disputes, water disputes or
further impetus for enlarging engage- and research institutions, mass media any other matters in relations between
certain member states. This is also true
ment in the SCO. and non-governmental organizations
of the Indian-Pakistani problem. Both
operating in SCO member states in countries were aware of that even before
SCO Convention on accordance with their respective applying for membership; however, they
Countering Extremism national legislation. were interested in joining the "SCO family."
The SCO common response to the Adhering to the provisions of the This approach indicated that, when both
steadily growing threat of extremism 2006 agreement on cooperation in countries applied for membership, they
is the SCO Convention on Countering were pursuing more fundamental, unifying
identifying and blocking the channels
Extremism, adopted at the summit in and long-term interests which relate
of penetration on the territory of SCO not only to their neighbours, but also to
Astana. This document will strengthen member states of individuals involved the region and the world in general. This
the international legal framework for in terrorist, separatist and extremist unifying approach and the principle of
countering emerging challenges and activities, as well as the 2015 agreement voluntary participation are the key success
threats along with the Convention of on cooperation and interaction of the and growth factors in the SCO.
the Shanghai Cooperation Organization SCO member states on border issues, Its main objectives and functions,
against Terrorism and the 2016-2018 member states will continue their
principles of its constitution and
SCO Member States Programme on collaboration in preventing malicious
financing, as well as its rules of
cooperation in combating terrorism, activities and movement of foreign
separatism and extremism, as well as procedure shall be governed by
terrorists, militants and terrorist groups
core United Nations instruments, such a separate international treaty
by means of effective border control.
as the United Nations Global Counter- concluded by the member states, and
¡ An exchange of data regarding
Terrorism Strategy and relevant other necessary instruments adopted
persons involved in terrorist
United Nations Security Council by them.
activities, identifying forged or
resolutions. The SCO Convention on stolen identification documents, The Executive Committee of the
Countering Extremism is aimed at as well as conducting joint Regional Anti-Terrorist Structure
advancing security, increasing effective investigations of transnational (RATS) of the Shanghai Cooperation
cooperation between authorities and terrorist crimes. Organisation (SCO) is the permanent
improving the legal framework in this body of the SCO RATS based in
sphere. Regional Anti-Terrorist
Tashkent, the capital of Uzbekistan.
The spread of extremist ideology Structure
Its main tasks and duties are as follows:
and propaganda, including the public The SCO Regional Anti-Terrorist
justification of terrorism as a means of Structure established by the member 1. Maintaining working relations
incitement to committing terrorist acts, states of the Shanghai Convention with competent institutions of the
has been particularly dangerous under to combat terrorism, separatism and member states and international
the circumstances. In this regard, SCO extremism of 15 June, 2001, located in organisations tackling issues of
will enhance joint efforts to counteract Bishkek, the Kyrgyz Republic, shall be a fighting terrorism, separatism and
societal radicalization, which results in standing SCO body. extremism;
September 2018 A Issue-1 8Current Affairs : Perfect 7
2. Assistance in interaction among Way Ahead early messaging about the event.
the member states in preparation Defense and security cooperation
The August 2018 iteration of the
and staging of counter-terrorism Shanghai Cooperation Organization’s has been smooth and effective in recent
exercises at the request of (SCO) peace mission anti-terrorism years. China is willing to continue to
concerned member states, exercise will provide important insights engage in exchanges and cooperation
preparation and conduct of search into how the organization’s capabilities in defense and security on basis of
operations and other activities and intentions have developed since mutual trust and benefit and improve
in the field of fighting terrorism, 2016. Peace mission 2018 will help capacity to jointly cope with new
separatism and extremism; analysts understand how the members challenges and threats. The effective
3. Joint drafting of international legal of the SCO see the threat environment counter-terrorism cooperation among
documents concerning the fight and further establish a traceable pattern SCO countries has greatly undermined
against terrorism, separatism and for analysts and policymakers around terrorist groups in Central Asia in
extremism; the globe. It will also help Russia and recent years and it's expected that this
China watchers assess the trajectory of effective cooperation will also boost
4. Gathering and analysis of
their “coopetitive” relationship. While stability in South Asia, a region facing
information coming to the RATS
most of the headlines leading up to a more complicated counter-terrorism
from the member states, formation
peace mission 2018 have focused on situation with a variety of active
and filling of RATS data bank;
the inclusion of India and Pakistan, terrorist groups.
5. Joint formation of a system of
this emphasis is misplaced. While
effective response to global certainly historic, their participation
challenges and threats; General Studies Paper- II
is mostly pageantry and does not
6. Preparation and holding of add real substance to the exercise. Topic: Bilateral, regional and global
scientific conferences and Looking ahead to peace mission 2018, groupings and agreements involving
workshops, assistance in sharing there are three primary topics of that India and/or affecting India's
experience in the field of fighting should be of true interest: the size interests.
terrorism, separatism and and scope of peace mission 2018,
extremism. Uzbekistan’s participation and China’s mmm
4. WAGES INEQUALITY IN INDIA: STILL PERSIST
Why in News? economic growth. The Gross Domestic organized sector has grown, but even
Product (GDP) in India has increased in this sector many jobs have been
According to the International Labour
at an annual average rate of about casual or informal.
Organisations 'The India Wage Report',
low pay and wage inequality remain 7 per cent since 1993. This high Since the 1990s, the Indian
a serious challenge to India’s path to rate of economic growth has been economy has witnessed a sharp rise
achieving decent working conditions accompanied by a substantial decline in its GDP. An important question is
and inclusive growth. Over the last two in India’s poverty rate and changes whether or not this has led to widening
decades, economic reforms in India in employment patterns, with a wage inequality. Growing inequality,
have contributed to strong economic growing proportion of jobs in services where income is concentrated in rich
growth, with the country’s gross and industry and a declining share households rather than poor ones
domestic product (GDP) increasing at of employment in agriculture. The can create downward pressures on
an annual average of about 7%. Overall, Indian labour market, however, aggregate demand as richer households
this means that GDP rose more than remains characterized by high levels have lower propensity to consume
four-fold since 1993 – but low pay and of segmentation and informality. Of compared to poorer households.
wage inequality persists. the total employed in 2011–12, more Inequality is not only a concern in
than half (51.4 per cent, or 206 million terms of national income but also at
Introduction: Wage Trends in people) were self-employed and of the the personal income level. A higher
India 195 million wage earners, 62 per cent concentration of wages in the hands
Over the last two decades, economic (i.e. 121 million) were employed as of the top earners creates inequality
reforms have contributed to strong casual workers. Employment in the that can affect economic stability. In
9 September 2018 A Issue-1Current Affairs : Perfect 7
are paid a lower wage rate than
their male counterparts in each
employment category (casual and
regular/salaried) and location (urban
and rural), although the differences are
smaller – on average – in urban than
in rural areas. The National Sample
Survey Office (NSSO) data show
that the daily wages of women have
increased more rapidly than those of
men, particularly more recently (2004–
05 to 2011–12). The rapid rise in wages
during this period was partly due to the
implementation of MGNREGA, which
ensured employment and minimum
wages for all workers in the programme
and also pushed up the wages in the
agricultural sector, getting them slowly
closer to the minimum wages specified
in MGNREGA. As a consequence, the
raw gender wage gap (the difference in
average pay between men and women,
as a proportion of men’s wages) has
declined over time, falling from 48
addition, it can challenge the notion growth in wages for urban workers (4.5 per cent in 1993–94 to 34 per cent in
of social justice and undermine social per cent). In spite of this, daily wages 2011–12.
cohesion. remain more than twice as high in
The evidence of wage growth for urban areas (INR 384) as those in rural Wages in Different Sectors of the
regular and casual workers in rural areas (INR 175). For the entire country, Economy
and urban areas has shown a positive the national average daily wage in Wage differentials between
trend at the aggregate level, but the 2011-12 was estimated at INR 247. sectors are important drivers of inter-
documented wage growth has been sectoral movement of workers; away
The Gender Wage Gap
slower in the post-reform period from agriculture and towards non-
(1993–94 to 2004–05) than in the Labour markets in India are agricultural sectors. There is ample
pre-reform period. From 2004–05 to characterized by gender-based evidence which shows that higher
2011–12, there appears to be a rise disparities. In general female workers wages in non-agricultural activities will
in real wages which is higher than the
rise of the previous period, which is as
a result of:
(a) Agricultural growth along with
periodic revision of support prices.
(b) The implementation of MGNREGA,
which stipulated minimum wages
as part of social spending.
(c) The employment dynamics in the
construction sector.
Overall, rural wages have
performed better in both periods, with
a significant growth in wages for rural
workers (5.3 per cent) between 2004–
05 and 2011–12 compared to the
September 2018 A Issue-1 10Current Affairs : Perfect 7
draw excess labour from agriculture. castes and scheduled tribes, have the private sector. Nevertheless, in
This process benefits not only those been historically marginalized with key industries (banking, ports, oil
who withdraw and shift to other regard to unequal access to education, and steel) where public employment
industries but also workers who remain employment opportunities and predominates, national, industry-wide
in agriculture, where productivity and opportunities to develop skills in bargaining continues. Union density,
wages can increase due to a lower certain sectors, thereby widening defined broadly in Indian data as the
labour-to-land ratio. The economic income inequality. percentage of members of trade
growth in India was mostly driven by unions and associations across the
Wages by State total workforce, stood at a relatively
an expansion of the service sector and,
to a lesser extent, by industry. India is a huge and diverse country low 10.7 per cent in 2011–12,
The wage growth has accelerated comprising 29 states and 7 Union increasing marginally compared to the
in all three sectors of the economy – Territories (UTs) and there are regional 1993–94 level. Union density among
primary, secondary and tertiary – for variations in economic development, female workers was half that of male
both regular and casual wage workers. demographic characteristics and levels workers. Among non-agricultural
of welfare. workers, union density was 17.7 per
¡ Wages have increased most rapidly
¡ In urban areas, regular wages are cent in 2011–12. It is difficult to gauge
in the primary sector during the
highest in Haryana, followed by the extent of collective bargaining
period 2004–05 to 2011– 12.
Assam, Jharkhand, Jammu and coverage in India, as no reliable
¡ Within the secondary sector, there estimates are available; nevertheless,
Kashmir and Karnataka and the
is a strong acceleration of wage it would be fair to assume that it is
lowest regular wages across states
growth in mining, manufacturing lower than trade union density rates
are found in Andhra Pradesh, Tamil
and construction. and concentrated in large enterprises.
Nadu, Punjab, Chhattisgarh and
¡ Wages in the tertiary sector have Gujarat. These aggregate numbers hide
increased substantially in trade different trends for different groups.
¡ In rural areas, the states with
and to a lesser extent in hotels & Union density among salaried
highest and lowest wages for
restaurants, education and health workers has fallen precipitously since
regular workers are quite different.
and social work. Jharkhand, Jammu and Kashmir, 1993–94, by 17.7 percentage points
By contrast, wage growth slowed Uttarakhand, Bihar and Himachal to 28.8 per cent, while it has increased
down in banking and finance and Pradesh are amongst the states for casual workers and among self-
in real estate and business services with high wages. The lowest-wage employed workers. There have been
between 2004–05 and 2011–12. It is states include Andhra Pradesh, some attempts at unionizing worker
worth noting that casual workers in Madhya Pradesh, West Bengal, in the informal economy, especially
some industries of the tertiary sector Odisha and Karnataka. among home-based workers either
have had higher increases in wages to negotiate for minimum wages or to
than regular workers. Wage Policy in India demand for better conditions (brick
Wage levels and distribution of wages workers). India was one of the first
Wages by Level of Education
are, to a large extent, influenced not developing countries to introduce a
Education is expected to play only by skills and productivity levels, minimum wage policy. The Minimum
a crucial role in determining wages but also by the role of labour market Wages Act adopted in 1948, is
of workers in the labour markets. institutions, particularly minimum considered to be an important piece of
A number of studies across various wages and collective bargaining. labour legislation. It is one of the few
countries as well as in India India’s industrial relations system protections afforded to both regular
demonstrate that workers with higher transitioned from a structure of and casual workers and to workers in
levels of education and skills earn centralized bargaining during the both the organized and unorganized
higher wages. first three decades of planned sectors. However, the minimum wage
industrialization to decentralized system is complex, its rates set mainly
Wages by Social Background
bargaining, following the partial by state governments for employees
The Indian labour market is liberalization of the economy in the working in selected “scheduled”
segregated on the basis of social mid-1980s. As a result, enterprise or employment. This has resulted in an
background, that is, caste. Some plant-level bargaining has become estimated 1,709 different rates across
disadvantaged groups, like scheduled the dominant level of bargaining in the country, at times set somewhat
11 September 2018 A Issue-1Current Affairs : Perfect 7
arbitrarily, without full consultation wage gap is also referred to as the adopted a call for sustainable wage
with social partners, revised only raw or unadjusted wage gap, because policy principles, specifically minimum
about every five years and applicable it is a simple measure which does wages and collective bargaining, which
to an estimated 66 per cent of wage not take into account the differences ensure that wages grow in tandem with
workers (those working in “scheduled” between men and women in their labour productivity and contribute to
employment). In around 40 per skills, endowments and labour market reducing inequality and promoting
cent of states, the legal scope of the characteristics that directly affect the inclusive growth. The G20 also agreed
application of minimum wages was level of pay. on the objective of effective wage
below 50 per cent of wage workers. Virtually every industrialized policies to address gender wage gaps.
country has passed laws mandating The objectives of decent work for
A national minimum wage floor
equal treatment of women in the all, equal pay for work of equal value
was introduced in 1991 and was
labour market. Yet the gender wage and reduced inequality through fiscal,
progressively increased up to INR
gap, while on the decline in many wages and other policies are also
176 per day in 2017, but it is not
countries, is a persistent feature of identified as key objectives of the
legally binding. Moreover, there is a
virtually every nation’s labour market. United Nations 2030 Agenda for
lack of consensus with regard to the Sustainable Development.
At the same time, “raw” gender pay
methodology used to determine the
gaps – like all other such pay gaps Sustainable wage policies that
rate, which has resulted in neither the
which emerge when comparing promote decent work and inclusive
Central nor state governments using
different groups of workers – are growth have several advantages.
it as a floor for determining minimum
sometimes difficult to interpret. This First, they can contribute to a
wages. Despite this wage floor being
is because the male and female pattern of sustained and balanced
non-binding, one estimate shows
individuals who are employees may economic growth, which relies on
that in 2009–10, about 15 per cent of differ widely in terms of their personal the progressive increase of domestic
salaried workers and 41 per cent of characteristics (such as age or level of consumption by lower- and middle-
casual workers earned less than this education) and in terms of their labour income groups as a key factor in
indicative national minimum wage. market characteristics. Occupational overall aggregate demand. Second,
Overall, 33 per cent of wage workers segregation, for example, means that they can contribute to more social
(i.e. 62 million workers) were paid less women will tend to be overrepresented cohesion and social mobility, making
than the indicative national minimum in particular occupations. Taking all a broad segment of society feel part
wage and the rate of low pay was of these factors into consideration, of the country’s economic success.
higher among women than among there is a need to understand what lies Third, with less inequality in the
men. behind “raw” gender pay gaps through labour market there may also be less
or more sophisticated analysis, pressure on redistribution through
Gender Pay Gap: A Global
comparing wages of men and women fiscal measures, which can alleviate
Perspective
with comparable profiles and jobs. demands on the state budgets.
Gender inequality has a direct
impact on decent work and human Wage Policies for Decent Conclusion: Towards More
development. Whether in the form Work and Inclusive Growth Effective Wage Policies in
of unequal labour force participation Ensuring decent work and inclusive India
rates, differences in pay or unequal growth through sustainable wage The potential for minimum wages to
opportunities for women, it is a policies is a widely shared objective reach low-paid workers depends on
burden on society and a barrier to across many countries. The Preamble the level at which the minimum wage is
social justice. Globally, the gender to the ILO Constitution calls for “the fixed and the mechanism, the extent of
wage gap has narrowed significantly provision of an adequate living wage” coverage of workers; most importantly,
in the last two decades. In 2015 it was and the ILO Declaration on Social on whether the enforcement machinery
estimated to be about 23 per cent, Justice for a Fair Globalization adopted is in place. Minimum wage legislation
with women earning 77 per cent of by the International Labour Conference by itself cannot ensure that minimum
what men receive, on average. This at its 97th Session in June 2008 calls wages would reach low-paid workers
gap can be estimated on a monthly or for wage policies which “ensure a just and efforts would need to be made to
an hourly basis and the latter removes share of the fruits of progress to all, make it effective and put enforcement
the effect on the pay gap of the fact and a minimum living wage to all in mechanisms in place. The extent of
that women are engaged more often in need of such protection”. In 2016, the minimum wage compliance is quite
part-time work than men. This gender G20 – of which India is a member – also varied in developing economies and
September 2018 A Issue-1 12Current Affairs : Perfect 7
depends to a large extent on the occupations and sectors could ¡ Well - defined responsibilities
institutions. be categorized (e.g. category A, of relevant authorities: The
Participants agreed that there B and C) and a single minimum responsibilities and roles of
should be clarity on the objectives of wage would apply to each group employers, trade unions and
of occupations in order to simplify governments should be well-
the minimum wage. It was proposed
notification processes and defined, and the powers of the
that the objective of minimum wages
implementation. labour inspector to enforce
should be to “eliminate exceptionally
legislation should be strengthened
low wages”, “to fulfil essential needs ¡ A statutory national floor level (including power to recover claims
of workers and their families” and to minimum wage: This proposal for workers).
“provide for equity in the distribution of received some support, though
the fruits of economic development”. participants from certain states
Participants identified a number of argued that it should have regional General Studies Paper- I
practical measures and changes to the variation in line with the level of Topic: Role of women and women's
legislation that would enable states to development and the cost of living organizations, Population and
better achieve the main objective of a in a particular state. associated issues, Poverty and
minimum wage system. These included developmental issues, Urbanization,
¡ Measures towards better imple- their problems and their remedies.
the following: mentation: A range of measures Topic: Welfare schemes for
¡ Coverage: To ensure equity and to improve implementation where vulnerable sections of the population
essential needs, participants proposed, included more stringent by the Centre and States and the
supported the universalization penal provisions, mandatory performance of these schemes;
of minimum wages and the display of notifications at work mechanisms, laws, institutions and
introduction of statutory coverage Bodies constituted for the protection
places and greater publicity, a and betterment of these vulnerable
of wage workers in all sectors, national toll free hotline to handle sections.
industries and areas of India. complaints and the use of bank Topic: Issues relating to poverty and
¡ Simplification of minimum wage transfers or other measures to hunger.
structure: As an intermediate step improve documentation of wage
towards universalization, different payments. mmm
5. BURNING DISASTER IS CONTINUED
Why in News? 300 million years ago were caused by as burning tropical grass savannahs
A series of forest fires in Greece, during lightning or volcanism. Fires in coal for game and livestock farming, or
the 2018 European heat wave, began seams and their effects on surrounding slash-and-burn for shifting cultivation
in the coastal areas of Attica in July forest landscapes have been verified agriculture.
2018. As of 14 August, 96 people were even for prehistoric times. Disturbances are a fundamental
confirmed dead. The fires were the In the earliest civilisations, apart element of all natural ecosystems.
second-deadliest forest fire in the 21st from its use in the “household” Forestry should therefore be able to
century, after the 2009 Black Saturday (cooking, heating), fire was used for adapt to incidental natural disturbances
bushfires in Australia that killed 180. different purposes, for example for such as forest fires. For this purpose, a
Introduction hunting (driving animals, luring game distinction has to be made between
onto freshly planted burn areas), destructive and harmless, or more
The history of forests is a history of
keeping forests and bushlands clear specifically, harmful or useful forest
fires. The oldest evidence of forest
for safety reasons (from wild animals fires. Fire may sometimes be necessary
fires has been found inside coal seams,
which consist of charcoal created or in times of war) and later for slash- for forest rejuvenation, or it can
during large fires millions of years and-burn farming and clearing the specifically benefit local populations.
ago. The burned forests later sank landscape for pasture farming. In many In other cases fire destroys forests
into swamps and formed coal beds. cultures, traditional burn techniques and has severe ecological, social and
These fires that happened up to over have been preserved until today, such economic consequences.
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