07 Jul 2023: UPSC Exam Comprehensive News Analysis

A. GS 1 Related
B. GS 2 Related
GOVERNANCE
1. Understanding Dark Patterns
C. GS 3 Related
ENVIRONMENT
1. What are the provisions of the High Seas Treaty
D. GS 4 Related
E. Editorials
POLITY
1. India Needs a Uniform Civil Code
ECONOMY
1. Internationalising the rupee without the ‘coin tossing’
F. Prelims Facts
1. FinMin pushes for reforms to spur FDI
G. Tidbits
1. Chandrayaan 3 launch on July 14
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

A. GS 1 Related

Nothing here for today!!!

B. GS 2 Related

Category: GOVERNANCE

1. Understanding Dark Patterns

Syllabus: Government policies, transparency and accountability

Mains: Government policies and interventions: Development in various sectors, transparency, accountability, and welfare schemes

Prelims: Concept of dark patterns, deceptive design techniques, and their impact on consumer rights

Context: 

The Department of Consumer Affairs and the Advertising Standards Council of India (ASCI) have addressed the issue of ‘dark patterns,’ deceptive design techniques used to manipulate users. Guidelines have been issued, and the government is working on regulations.

Introduction:

• The Department of Consumer Affairs and the Advertising Standards Council of India (ASCI) have held a joint consultation on the issue of ‘dark patterns.’
• Dark patterns refer to deceptive design techniques used to manipulate or deceive users into making choices that benefit the company.
• Guidelines have been developed by ASCI, and the central government is working on norms against dark patterns.

Understanding Dark Patterns:

• Dark patterns are intentionally crafted designs or user interface techniques used to manipulate or deceive users.
• They influence user behaviour in ways that may not be in their best interest, benefiting the company implementing them.
• Examples include “sneak into basket” techniques in e-commerce and subtle positioning of “reject” links for personal information requests.

Types of Dark Patterns:

• Businesses use various deceptive patterns, such as creating a sense of urgency, confirming shaming, forced sign-ups, bait and switch, hidden costs, and disguised advertisements.
• These practices violate consumer rights, impede informed decision-making, and are prohibited under the Consumer Protection Act 2019.

Legality of Dark Patterns:

• The legality of dark patterns is complex, as distinguishing manipulation from fraudulent intent is challenging.
• Currently, most nations lack specific regulations against dark patterns.
• However, individuals harmed by dark patterns may seek compensation, as seen in cases involving Google and Facebook violating EU and French regulations.

Global Regulatory Actions:

• Major international authorities, such as the Competition and Markets Authority (CMA) in the UK and the European Data Protection Board, are formulating rules and guidelines to address dark patterns.
• CMA lists pressure-selling techniques violating consumer protection laws, while the European Data Protection Board offers guidance on identifying dark patterns that violate GDPR laws.

Addressing Dark Patterns in India:

• The Department of Consumer Affairs and the ASCI have taken steps to address dark patterns, warning major Indian online marketplaces against unfair trade practices.
• Companies are urged to refrain from using dark patterns, but a robust legal mechanism is needed with the growing use of e-platforms.
• Amending existing laws, introducing rules against deceptive design practices, and updating consumer protection and data protection legislation are necessary.

Read more on ASCI Guidelines on Dark Patterns in Advertising.

Nut Graf: The Department of Consumer Affairs and the ASCI have taken steps to combat ‘dark patterns,’ deceptive design techniques that manipulate users. Guidelines have been established, and efforts are being made to introduce regulations to protect consumers from such practices.

C. GS 3 Related

Category: ENVIRONMENT

1. What are the provisions of the High Seas Treaty

Syllabus: Environment- Conservation, Environmental pollution and degradation

Mains: Important International institutions and treaties for the conservation of the nature and natural resources

Prelims: High Seas Treaty

Context:

The UN recently adopted the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) or High Seas Treaty to protect marine life beyond national jurisdiction.

Introduction:

• The UN has adopted the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) or the High Seas Treaty.
• This treaty, the third agreement under UNCLOS, aims to protect marine life in oceans beyond national jurisdiction through international cooperation.

Read more on UNCLOS Maritime Zones.

Process and Background:

• The idea of protecting the marine environment emerged in 2002, leading to the formation of a Preparatory Committee in 2015.
• After five prolonged intergovernmental conferences (IGC) and negotiations, the treaty was adopted in 2023.
• The objective is to implement international regulations addressing issues like rising sea surface temperatures, overexploitation of marine biodiversity, overfishing, coastal pollution, and unsustainable practices.

Key Elements of the Treaty:

1. Marine Protected Areas:

• • Establishing marine protected areas (MPAs) through a “three-quarterly majority vote” to protect oceans from human activities.
  • Prevents one or two parties from blocking decisions, ensuring effective implementation.

      2. Fair Sharing of Benefits from Marine Genetic Resources:

• • Mandates sharing scientific information and monetary benefits through a “clear house mechanism.”
  • Enhances transparency, cooperation, and open access to information on MPAs, marine genetic resources, and area-based management tools.

Read more on Marine Protected Areas in India.

Capacity Building and Marine Technology:

• The Scientific and Technical Body plays a significant role in environmental impact assessment.
• Develops standards and guidelines for assessment procedures, assists countries with less capacity, and identifies research priorities.

Challenges in the Negotiation Process:

• The most contentious issue was the sharing and exchange of information on marine genetic resources.
• Prolonged negotiations were due to the absence of a provision for monitoring information sharing.

Nut Graf: The High Seas Treaty aims to address environmental challenges such as overfishing and pollution, establish marine protected areas, ensure fair sharing of benefits, and enhance capacity building, marking a crucial step towards international cooperation for the conservation of marine biodiversity.

D. GS 4 Related

Nothing here for today!!!

Category: POLITY

1. India Needs a Uniform Civil Code

Syllabus: Indian Constitution—Historical Underpinnings, Evolution, Features, Amendments, Significant Provisions and Basic Structure.

Mains: Need of UCC, Its potential benefits and challenges

About Uniform Civil Code (UCC): 

• The Uniform Civil Code refers to a single set of laws that govern personal matters such as marriage, divorce, adoption, inheritance, and succession for all citizens of a country, regardless of their religious affiliation.
• The Constitutional Mandate for a Uniform Civil Code (UCC) is established under Article 44, which directs the state to strive for a common set of laws governing personal matters for all citizens, regardless of their religious affiliation. It is the responsibility of the state to enact laws in accordance with this mandate.

Constituent Assembly debate on UCC:

• Babasaheb Ambedkar’s support: Babasaheb Ambedkar, the chief architect of the Indian Constitution, strongly advocated for the enactment of a UCC during the Constituent Assembly debates. He emphasized the need for a UCC to ensure gender equality and eradicate social evils.
• Alladi Krishnaswamy Ayyar’s perspective: Alladi Krishnaswamy Ayyar, a distinguished member of the Constituent Assembly, supported the UCC as a means to promote amity and arrive at a common measure of agreement on personal matters.
• K.M. Munshi’s viewpoint: K.M. Munshi, another member of the Constituent Assembly, called for a UCC to unify the way of life in the country, transcending religious boundaries and promoting secularism.
• Opposition and challenges: Some members of the Constituent Assembly opposed the idea of a UCC, raising concerns about encroaching on religious jurisdiction. However, Ambedkar countered this by highlighting the need to reform the social system and eliminate inequities and discrimination.
• Inclusion in Article 44: Due to the lack of consensus, the Constituent Assembly included the provision for a UCC under Article 44 of the Directive Principles of State Policy. This article became the constitutional mandate for the state to enact a UCC applicable to all citizens, irrespective of their faiths, practices, and personal laws.

Read more Constituent Assembly debates in the linked article.

The argument in favour of UCC:

• Equality and Justice: A UCC ensures equality and justice for all citizens by providing a common set of laws that are applicable irrespective of their religious background. It eliminates discriminatory practices and promotes a sense of fairness and equal treatment.
• Gender Equality: A UCC plays a crucial role in empowering women and ensuring gender equality. It eradicates discriminatory practices prevalent in personal laws, particularly in areas of marriage, divorce, inheritance, and adoption, and provides women with equal rights and opportunities.
• National Integration: A UCC helps in fostering national integration by promoting a shared legal framework and a sense of belonging among citizens. It reduces the divisions created by diverse personal laws and strengthens the unity and integrity of the nation.
• Administrative Efficiency: A UCC brings about administrative efficiency by streamlining legal processes and reducing the burden on the judicial system. It simplifies legal procedures related to marriage, divorce, and inheritance, making them more accessible and less time-consuming.

Challenges in the path of implementing  UCC:

• Religious and Cultural Sensitivities: One of the major challenges in implementing a UCC is navigating the religious and cultural sensitivities associated with personal laws. Different religious communities may oppose any attempts to modify or replace their existing laws, fearing a loss of identity and infringement on their religious practices.
• Lack of Consensus: Achieving a consensus among various stakeholders, including religious leaders, community organizations, and political parties, is a significant challenge. There are divergent opinions and interests regarding the adoption of a UCC, making it difficult to garner widespread support for its implementation.
• Complexities of Pluralistic Society: India’s pluralistic society, with its diverse religious and cultural traditions, poses a challenge in formulating a unified code that accommodates the varied beliefs and practices of its citizens. Striking a balance between uniformity and respecting the diversity of personal laws is a complex task.

Supreme Court Judgment on UCC: In the Shah Bano case,  the Supreme Court expressed regret that Article 44 (UCC mandate) remained unimplemented. In the Indian Young Lawyers Association case, the court emphasized exercising religious freedom in line with the vision of fundamental rights.

Read more on Important Supreme Court Judgements.

Nut Graf: India’s diverse nation calls for the implementation of a Uniform Civil Code (UCC) in accordance with Article 44 of the Constitution. This would address inequalities, promote social harmony, ensure gender justice, and provide a unified legal framework for all citizens.

Category: ECONOMY

1. Internationalising the rupee without the ‘coin tossing’

Syllabus: Indian Economy and issues relating to Planning, Mobilization of Resources, Effects of Liberalization on the Economy

Mains: Need for Internationalising the rupee, issues and reform 

Prelims: Implications of Internationalising the Rupee

Context: Challenges and potential strategies for internationalizing the Indian rupee, drawing lessons from China’s experience and emphasizing necessary reforms.

Limited International Demand for Rupee:

• Historical context: In the past, the Indian rupee had significant international acceptance in countries like UAE, Kuwait, Bahrain, Oman, and Qatar.
• Limited international demand: Currently, the rupee’s share in the global foreign exchange market and India’s share of global goods trade are relatively low.
• Confidence concerns: Events like demonetization in 2016 and the recent withdrawal of the ₹2,000 note have impacted confidence in the Indian rupee.
• Present international exchange: The daily average share of the rupee in the global foreign exchange market is around -1.6%, indicating limited international demand for trading in the Indian rupee.

Hindrances to the Internationalisation of the Indian Rupee:

• Capital account convertibility restrictions: India imposes significant constraints on the exchange of its currency with others due to concerns about capital flight and exchange rate volatility.
• Limited use in international transactions: Despite some measures taken to promote the internationalization of the rupee, transactions conducted in rupees remain limited, and oil purchases from Russia are still primarily settled in dollars.
• Confidence and stability issues: Factors such as past experiences of capital outflows, deficits, and exchange rate volatility have affected confidence in the stability of the Indian rupee.
• Lack of awareness and acceptance: There is a lack of awareness among traders about local currency facilities and a general lack of acceptance and demand for trading in the Indian rupee internationally.
• Underdeveloped bond market: The underdeveloped nature of the rupee bond market hinders the internationalization of the Indian rupee. A deeper and more liquid bond market is needed to attract foreign investors and provide investment options in rupees.
• Limited investment options: The lack of a robust bond market restricts foreign investors and Indian trade partners from having sufficient investment options in rupees, making it less attractive for international transactions and investments.

China’s Case Study:

• Phased approach: China’s internationalization of the Renminbi (RMB) involved gradually allowing its use for trade finance, investment, and eventually as a reserve currency.
• Currency swap agreements: China signed currency swap agreements with various countries, enabling the exchange of equivalent amounts in different currencies and facilitating international trade.
• Offshore markets: China established offshore markets and allowed non-resident trading, contributing to the internationalization of the RMB.

Read more on China’s Efforts to Promote the Yuan Over the Dollar.

Way forward:

• Full capital account convertibility: India should work towards making the rupee more freely convertible, allowing financial investments to move freely between India and abroad, which would enhance liquidity and attractiveness for foreign investors.
• Deeper rupee bond market: Developing a deeper and more liquid rupee bond market would provide investment options for foreign investors and Indian trade partners, facilitating the international use of the rupee.
• Encouraging rupee invoicing: Indian exporters and importers should be encouraged to invoice their transactions in rupees, optimizing trade settlement formalities and reducing reliance on reserve currencies like the dollar.
• Currency swap agreements: Increasing currency swap agreements, such as with Sri Lanka, would enable trade and investment transactions to be settled in rupees, reducing dependence on other currencies.
• Currency management stability: Ensuring consistent and predictable issuance/retrieval of notes and coins, and maintaining a stable exchange rate regime would enhance confidence in the rupee.
• Tarapore Committee recommendations: Implementing the recommendations of the Tarapore Committee, including reducing fiscal deficits, inflation rates, and banking non-performing assets, would contribute to the stability of the rupee.

Nut Graf: The challenges hindering the internationalization of the Indian rupee include limited demand, capital account restrictions, confidence issues, and an underdeveloped bond market, drawing insights from China’s experience.

G. Tidbits

1. Chandrayaan 3 launch on July 14

• India’s moon mission, Chandrayaan-3, will be launched at 2.35 p.m. on July 14 from the Satish Dhawan Space Centre in Sriharikota, as announced by the Indian Space Research Organisation (ISRO).
• If the launch takes place as scheduled, the landing on the lunar surface is expected to occur in the last week of August.
• The landing date is determined by the presence of sunlight on the moon, and if the launch occurs on July 14, the landing will be on August 23 or 24.
• In case the planned landing does not happen, ISRO will wait for another month to make a landing attempt in September.
• The lander and the rover will remain on the moon for 14 days, utilising a small solar panel to generate power and charge the battery during the period without sunlight.
• The challenging lunar environment with temperatures dropping to minus 40 degrees Celsius poses risks to the battery and electronics, but ISRO has conducted tests and is optimistic about their survival.
• The Chandrayaan-3 spacecraft will be launched by the Launch Vehicle Mark III (LVM3), and the launch window for the mission is between July 12 and 19.
• Chandrayaan-3 aims to showcase capabilities in safe landing and roving on the lunar surface, demonstrating new technologies for inter-planetary missions.
• The mission comprises a lander module, a propulsion module, and a rover, all developed domestically.

Read more on Chandrayaan-3.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with reference to the Marine Biodiversity of 
Areas Beyond National Jurisdiction (BBNJ) treaty:

1. It aims to establish marine protected areas to protect oceans from human activities.
2. The treaty mandates the fair sharing of benefits from marine genetic resources through a clear house mechanism.
3. It includes clear rules for conducting environmental impact assessments before conducting activities on the high seas.

How many of the statements given above are incorrect?

1. Only one
2. Only two
3. All three
4. None

CHECK ANSWERS:-

Answer: d

Explanation: 

All three statements are correct. The BBNJ treaty includes marine protected areas, fair sharing of benefits, and clear rules for environmental impact assessments on the high seas.

Q2. Which of the following best describes a dark pattern?

1. A practice to empower user behaviour for the user’s benefit.
2. A regulatory framework for data protection laws.
3. A technique to improve user autonomy and decision-making in cybersecurity.
4. A deceptive practice to influence user behaviour for the company’s benefit.

CHECK ANSWERS:-

Answer: d

Explanation: 

A dark pattern refers to a design or user interface technique that is intentionally crafted to manipulate or deceive users into making certain choices or taking specific actions that may not be in their best interest.

Q3. Consider the following statements with reference to Launch Vehicle Mark-III (LVM3):

1. LVM3 is a three-stage launch vehicle.
2. It is powered by solid boosters and a liquid fuel-based stage.
3. It can carry more weight to geostationary transfer orbits (GTO) than it can to lower earth orbits (LEO).

How many of the statements given above are incorrect?

1. Only one
2. Only two
3. All three
4. None

CHECK ANSWERS:-

Answer: a

Explanation: 

LVM3 is a three-stage launch vehicle powered by solid boosters and a liquid fuel-based stage. LVM3 has a higher payload capacity to lower earth orbits (LEO) compared to geostationary transfer orbits (GTO). 

Q4. With reference to the difference between Foreign Direct Investment (FDI) and 
Foreign Portfolio Investment (FPI), which of the following statements is correct?

1. FDI provides a short-term investment opportunity, while FPI is a long-term strategic investment.
2. FDI offers control over the management of a foreign company, while FPI is subject to short-term market trends.
3. FDI is made to diversify investment portfolios, while FPI aims to establish a long-term business interest in a foreign country.
4. FPI involves higher risks than FDI due to political and regulatory factors.

CHECK ANSWERS:-

Answer: b

Explanation: 

FDI offers control over the management of a foreign company, while FPI is subject to short-term market trends.

Q5. Consider the following statements with reference to the Uniform Civil Code in India:

1. The Uniform Civil Code aims to provide one civil law for the entire country, applicable to all religious communities.
2. Article 44 of the Constitution lays down the directive to secure a Uniform Civil Code.
3. Article 44 is enforceable by courts of law.

How many of the statements given above are correct?

1. Only one
2. Only two
3. Only three
4. None

CHECK ANSWERS:-

Answer: b

Explanation: 

Statement 3 is incorrect as Directive Principles of State Policy are not enforceable by courts of law.

I. UPSC Mains Practice Questions

1. Discuss the pros and cons of internationalising the rupee as a global currency. (10 marks,150 words) [GS-3; Economy]
2. What is the objective of the High Seas Treaty? Briefly mention the point of contention held by the developed nations against this treaty. (10 marks,150 words) [GS-3; Environment]

Read the previous CNA here.