26 July 2024 CNA
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A. GS 1 Related
B. GS 2 Related
POLITY
1. ‘States have unlimited right to tax mineral-rich lands’
C. GS 3 Related
D. GS 4 Related
E. Editorials
ECONOMY
1. The Karnataka Bill is a symptom of a larger problem
F. Prelims Facts
1. Jaishankar pushes for urgency in resolving stand-off at LAC
2. Govt. plans databank on trends in jobs, unemployment
G. UPSC Prelims Practice Questions
H. UPSC Mains Practice Questions

C. GS 3 Related

Nothing here for today!!!

Syllabus: GS-3, Employment

Context:​ 

• The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, has stirred considerable controversy and prompted the Karnataka State Government to pause the bill. 
• This bill proposes 50% reservation for locals in management positions and 70% in non-management roles. While the bill’s specifics are debated, it reflects deeper, systemic issues related to India’s employment crisis and regional disparities.

Overview of the Karnataka Reservation Bill

• Provisions: The bill mandates local reservations in various employment categories: 50% in management and 70% in non-management positions.
• Current Status: Due to widespread criticism, the Karnataka government has paused the bill and is considering revisions.

Underlying Issues

• Jobs Crisis: Despite being the fastest-growing large economy, India’s growth has not translated into adequate job creation. The service-led growth model has often disconnected economic growth from employment opportunities.
• Regional Disparities: The growth model has exacerbated regional inequalities, with some states lagging in development and job creation, leading to distress migration.

Political and Social Implications

• Regionalism vs. National Unity: The bill highlights a tension between local aspirations for job reservations and national principles of free movement and unity.
• Federalism and Accountability: The bill raises questions about the balance between federal authority and state-level responses to local job crises.

Significance

• Economic Impact: The bill’s focus on local reservations aims to address job scarcity and economic imbalances. However, it also underscores broader issues of inadequate job creation and regional disparities.
• Social Cohesion: The bill reflects the growing regionalism in response to migration and unemployment, which can affect national unity and social stability.
• Political Repercussions: The bill’s controversy highlights the political risks associated with addressing regional disparities through legislative measures.

Solutions

• National Debate: Engage in a comprehensive national discussion involving political leaders, industry stakeholders, and civil society to address the job crisis effectively.
• Improved Job Creation: Develop and implement more effective skilling programs and production-linked incentives to create jobs and reduce regional disparities.
• Political Accountability: Ensure accountability at both state and national levels for inadequate development and the resulting migration issues.
• Federalism and National Unity: Foster a balanced approach to federalism that respects both state autonomy and national unity. Revive institutions like the National Development Council to facilitate this balance.
• Corporate Accountability: Hold corporations accountable for fair working standards, particularly for unskilled labor, to prevent exploitation and ensure fair wages.

Nut Graf: The Karnataka Reservation Bill is a reflection of a larger, systemic issue concerning India’s employment challenges and regional inequalities. While the bill itself may be revised or put on hold, the underlying issues require a more extensive and nuanced approach.

F. Prelims Facts

1. Jaishankar pushes for urgency in resolving stand-off at LAC

Context: External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi recently held a high-level meeting in Vientiane, Laos, emphasizing the urgency of resolving the prolonged military stand-off at the Line of Actual Control (LAC). The discussions, taking place amid broader ASEAN-related meetings, underline the pressing need for de-escalation and stabilization of India-China relations.

1. Context and Meeting Details:

• Recent Engagements:
  • This meeting marked the second time in July 2024 that Jaishankar and Wang Yi have discussed the LAC issue, following their talks at the SCO Summit in Kazakhstan.
  • The focus was on accelerating the disengagement process and stabilizing bilateral relations between India and China.
• Objectives of the Meeting:
  • Disengagement Focus: Both Ministers highlighted the necessity of resolving remaining issues along the LAC to achieve complete disengagement of troops.
  • Strategic Importance: Jaishankar emphasized the significance of stable relations between India and China, two of the most populous nations and major global economies.
• Past Progress and Current Challenges:
  • Previous Disengagement: Earlier rounds of talks led to disengagement at several flashpoints from 2020-2022. However, issues persist, particularly in the Demchok and Depsang sectors.
  • Ongoing Talks: The Working Mechanism on Consultation and Coordination on India-China Border Affairs (WMCC) has held numerous meetings, with the 29th meeting occurring in March 2024.

2. Key Issues and Discussions:

• Respect for LAC: Jaishankar stressed the need for both sides to respect the LAC and adhere to past agreements from the 1990s, which remain relevant for resolving the stand-off.
• Troop Withdrawal: Complete disengagement is contingent on the withdrawal of Chinese troops from specific positions, which has been a major sticking point in recent negotiations.

Impact on Bilateral Relations:

• Shadow over Ties: The stand-off has significantly affected India-China relations, impacting diplomatic, economic, and strategic interactions.
• Economic Considerations: There is speculation about the potential relaxation of restrictions on Chinese companies, influenced by the Economic Survey advocating for increased Foreign Direct Investment (FDI) from China.

Significance

Strategic Importance:

• Global Impact: Stable bilateral relations between India and China are crucial for regional stability and the broader multipolar world order. Both nations are pivotal players in global economic and strategic landscapes.

Diplomatic Efforts:

• High-Level Engagement: The continued high-level engagement between Jaishankar and Wang Yi reflects the importance of resolving the stand-off and improving diplomatic relations.
• WMCC Role: The WMCC plays a critical role in coordinating and implementing agreements related to border management and disengagement.

Economic Implications:

• FDI and Trade: Resolution of the LAC issue could facilitate better economic ties, including increased FDI and improved trade relations. The Chinese Embassy’s call for easing restrictions underscores the economic stakes involved.

2. Govt. plans databank on trends in jobs, unemployment

Context: The Union Government of India is set to address concerns about the lack of comprehensive and accurate data on employment trends, unemployment, wage loss, and job loss by creating an Employment Data Collection Mechanism (EDCM). This initiative aims to enhance data tracking methods and improve the quality of employment-related information available for policy-making.

Need for EDCM

• Current Data Limitations: There is widespread criticism of existing data sources, including periodic labour force surveys, National Sample Survey Organisation (NSSO) reports, Reserve Bank of India (RBI) data, and census data. Critics argue these sources are delayed and often inaccurate.
• Private Agency Data: Reports from private agencies, such as the Centre for Monitoring Indian Economy (CMIE), have been questioned for their accuracy, despite being widely used in political and academic circles.

EDCM Objectives

• Data Collection and Tracking: The EDCM aims to create a comprehensive databank to track employment trends, unemployment rates, wage loss, and job loss more effectively.
• Inter-Ministerial Collaboration: The project will involve collaboration between various ministries and departments to ensure a holistic approach to data collection and analysis.
• Workshop and Meetings: The first meeting of this initiative, chaired by Union Labour Minister Mansukh Mandaviya, will include a workshop to focus on enhancing employment generation and data tracking methods.

Issues

• Delays and Inaccuracies: Existing data sources suffer from delays in reporting and inaccuracies, which undermine their usefulness for timely policy interventions.
• Data Discrepancies: There is a discrepancy between government data and private agency reports, leading to confusion and debate over the actual state of employment and unemployment in the country.
• Outdated Methodologies: Existing surveys and data collection methodologies may be outdated, failing to capture real-time changes and trends in the labor market.
• Fragmented Data Sources: Data is often scattered across different agencies and ministries, leading to inconsistencies and gaps in information.
• Lack of Integration: Insufficient integration of data sources and coordination between ministries may lead to fragmented and incomplete data.
• Resource Constraints: Limited resources and infrastructure may affect the quality and timeliness of data collection and reporting.

Significance

• Policy Making: Accurate and comprehensive data is crucial for effective policy-making and designing targeted interventions to address employment issues.
• Economic Planning: Reliable employment data helps in assessing economic performance and planning for sustainable growth.
• Public Trust: Transparent and accurate data collection processes can enhance public trust in government statistics and decisions.

H. UPSC Prelims Practice Questions

Q1. Which of the following scenarios does not violate the right to live with dignity?

1. Experience of discrimination and harassment based on gender
2. Inability to access affordable healthcare services
3. Employment opportunities and fair wages
4. Lack of access to clean water and sanitation facilities

CHECK ANSWERS:-

Answer: c

Explanation: 

Employment opportunities and fair wages do not violate the right to live with dignity, as they are essential components that support a person’s livelihood and economic well-being.

Q2. Consider the following States:

1. Andhra Pradesh
2. Karnataka
3. Gujarat
4. Bihar

How many of the above are major tomato-producing States?

1. Only two States
2. All four States
3. Only three States
4. Only one State

CHECK ANSWERS:-

Answer: b

Explanation: 

The major tomato producing States are Andhra Pradesh, MP, Karnataka, Gujarat, Odisha, West Bengal, Maharashtra, Chhattisgarh, Bihar, Telangana, UP, Haryana and Tamil Nadu.

Q3. Which of the following statements about Make in India is correct?

1. Make in India is a government scheme to encourage outsourcing of manufacturing to other countries.
2. Make in India focuses solely on attracting foreign direct investment and discourages domestic investment.
3. Make in India is an initiative to promote domestic manufacturing and boost job creation in India.
4. Make in India is a program aimed at promoting imports and reducing reliance on domestic industries.

CHECK ANSWERS:-

Answer: c

Explanation: 

Make in India aims to promote domestic manufacturing & attract investments. It encourages FDI, not outsourcing, to boost job creation & exports.

Q4. The Black Sea Grain Initiative is an agreement among which of the following 
countries/Organisations?

1. Ukraine, Russia, China, and Turkey
2. Ukraine, Russia, Turkey, and the United States
3. Ukraine, Russia, Turkey, and the European Union
4. Ukraine, Russia, Turkey, and the United Nations

CHECK ANSWERS:-

Answer: d

Explanation: 

The Black Sea Grain Initiative was launched by Ukraine, Russia, Turkey, and the United Nations. It aims to facilitate the export of grain from Ukraine through the Black Sea.

Q5. Consider the following statements regarding the Henley Passport Index:

1. It ranks passports based on the number of countries their holders can access without a prior visa.
2. In 2023, India’s ranking on the Passport Index declined to 80th place.
3. According to the index, Singapore is currently the most powerful passport in the world.

How many of the statements given above is/are correct?

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

CHECK ANSWERS:-

Answer: b

Explanation: 

In 2023, India’s ranking on the Passport Index improved to 80th place. Singapore is currently the most powerful passport in the world, allowing visa-free access to 192 travel destinations.

I. UPSC Mains Practice Questions

1. In the context of The Rajasthan Minimum Guaranteed Income Bill, 2023, discuss the concept of Universal Basic income. (150 words, 10 marks) [GS-2; Social Justice]
2. “The Price of Tomatoes is an indicator of the economic cost of climate change”. Comment. (150 words, 10 marks) [GS-3; Economics]

Read the previous CNA here.