CNA 27 June 2023:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Sri Lanka to restructure its domestic debt C. GS 3 Related D. GS 4 Related E. Editorials GOVERNANCE 1. Laying the foundation for a future-ready digital India INTERNATIONAL RELATIONS 1. Understanding the Wagner mutiny F. Prelims Facts 1. Bank for International Settlements (BIS) Calls for Interest Rate Increases to Tackle Inflation G. Tidbits 1. Char Dham Yatra: Deaths, Visitor Statistics, and Economic Impact 2. NHRC sends notice on the issue of chained Labourers in Maharashtra 3. Egypt seeking India’s support in joining BRICS H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Sri Lanka to restructure its domestic debt
Syllabus: GS-2, Effect of policies and politics of developed and developing countries on India’s interests
Prelims: Current events of national and international importance.
Mains: India’s role in resolving Sri Lanka’s debt crisis.
Context: This article discusses Sri Lanka’s decision to close its banks and financial sector in preparation for a parliamentary debate on the government’s plan to restructure its domestic debt, along with concerns about the impact of this debt restructuring plan on the domestic economy.
Background:
- Sri Lanka experienced its worst economic meltdown since Independence, leading to the suspension of foreign debt payments.
- The government secured a $3 billion package from the International Monetary Fund (IMF) and entered into an agreement to restructure both foreign and domestic debt.
- As of March 2023, Sri Lanka’s estimated foreign and domestic debt stood at approximately $41 billion and $42 billion, respectively.
- The IMF has identified “tentative signs of improvement” in Sri Lanka but emphasizes the need for timely restructuring agreements with creditors.
Read more on the Sri Lankan economic crisis in the linked article.
Government’s Debt Restructuring Plan:
- Sri Lanka’s President, Ranil Wickremesinghe, announced the debt restructuring program, which will be presented to the Cabinet before going to Parliament for debate and approval.
- The negotiations aim to obtain a longer repayment period and potentially reduce the debt burden through some form of reduction, suggesting a possible haircut.
Creditor Committee and China’s Role:
- A creditor committee consisting of 17 countries, co-chaired by India, Japan, and France, has been established to discuss Sri Lanka’s debt treatment.
- China attended as an observer and has yet to formally join the committee.
- India, Japan, and the Paris Club emphasize creditor parity among bilateral lenders, while China advocates for the inclusion of multilateral creditors.
- Private creditors, holding a significant portion of Sri Lanka’s foreign debt through International Sovereign Bonds, are expected to participate, but their approach remains uncertain.
China’s Engagement and Foreign Minister’s Visit:
- Sri Lanka expresses confidence in China’s cooperation based on Chinese Premier Li Qiang’s positive message at the Paris financial summit.
- China has recently participated in Zambia’s debt restructuring plan, raising interest in its role in Sri Lanka.
- Sri Lanka’s Foreign Minister, Ali Sabry, is currently on a week-long visit to China.
Concerns over Domestic Debt Restructuring:
- Opposition politicians and critics raise concerns about the potential impact of restructuring domestic debt on people’s savings and retirement benefits.
- The restructuring may involve extending tenure, adjusting interest rates, or implementing a haircut.
- Critics argue that domestic lenders taking a haircut could adversely affect the elderly, impacting benefits like the Employees’ Provident Fund, Trust Fund, and pensions.
Nut Graf: Sri Lanka will close banks and the financial sector for five days as the government prepares for a parliamentary debate on restructuring domestic debt to address the country’s economic crisis.
C. GS 3 Related
Nothing here for today!!!
D. GS 4 Related
Nothing here for today!!!
E. Editorials
1. Laying the foundation for a future-ready digital India
Syllabus: GS-2, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Mains: Need of Digital India Bill and Way Forward
Context
The Ministry of Electronics and Information Technology has been organising public consultations on the planned “Digital India Bill”.
New Digital India Bill
- The New Digital India Bill seeks to create a new legal framework to replace India’s 23-year-old Information Technology (IT) Act.Â
- The objective is to improve the current legal system to address new issues including user injury, competition, and false information in the digital sphere.Â
- This highly anticipated piece of legislation is likely to change the parameters of technology regulation both domestically and internationally.Â
- The proposed changes include grouping digital intermediaries into discrete classes like e-commerce enterprises, social media platforms, and search engines to assign each kind different obligations and liabilities.
Need for the New Digital India Bill
- Ambiguous Definition of Intermediary: According to the current IT Act, an “intermediary” is any organization that stands between a user and the Internet. The three primary kinds of intermediaries that are subclassified by the IT Rules are “Social Media Intermediaries” (SMIs), “Significant Social Media Intermediaries” (SSMIs), and the “Online Gaming Intermediaries.”Â
- Social Media Intermediaries (SMIs): Social Media Intermediaries (SMIs) are platforms that allow users to communicate and share information with one another. But because the term “SMIs” is used in such a broad sense, it can refer to a wide range of services, including email, video communications, matrimonial websites, and even online comment areas on websites.Â
- Stringent Rules: The regulations impose strict requirements on the majority of intermediaries, including a 72-hour deadline for responding to requests from law enforcement and handling “content takedown” demands. Unfortunately, cloud services, websites, e-commerce platforms, and ISPs all receive the same treatment.
- Â Online safety: The Bill may change the IPC to make certain behaviours punishable, or it will create new offences for problems like doxing, cyberbullying, and revenge pornography. During the consultations, it was highlighted that specific rules for the online safety of minors will be suggested.
- No segregation of Intermediaries’ Platforms: Platforms used as intermediaries, like Microsoft Teams, have a restricted user base and pose less of a threat from information getting viral. The cost of doing business for these middlemen increases if they are treated like traditional social media platforms. Additionally, it increases their exposure to responsibility without actually lowering the dangers associated with using the Internet.
- Fair trade practices: The ministry intends to alter the competition regime in order to stop anti-competitive practices and prevent monopolization in the technology sector. The claimed objective is to avoid market power and gatekeeping concentration, while also preserving innovation to support developing technologies and defending online diversity.Â
Global ExperienceÂ
- Europe: One of the most advanced regulatory regimes, the Digital Services Act of the European Union establishes three categories of intermediaries — hosting services, online platforms, and “very large online platforms” — and introduces various exclusions.
- Australia: In Australia, sectors including social media platforms and search engines are governed by distinct industry-drafted codes that are divided into eight different categories. The potential for exposure to hazardous content, such as child sexual abuse material (CSAM) or terrorism, requires intermediaries to conduct risk assessments.
Way Forward
- Minimising intermediary requirements and ensuring that regulatory tasks are commensurate to capacity and scale should be goals.
- There is a need for a classification framework that establishes a few clearly defined categories, necessitates risk assessments from intermediaries, and then uses the results to classify those intermediaries into the appropriate categories.Â
- For the suggested strategy to be effective, risk assessment criteria and appropriate thresholds would need to be created and assessed on a regular basis in conjunction with the industry.Â
- On the basis of the number of active users, the potential for harm, and the possibility of bad content spreading virally, intermediaries that provide communication services may be required to do risk assessments.Â
- The biggest communication services would then be forced to abide by additional rules that include choosing officers who are based in India and establishing internal grievance appeals processes.
Nut Graf: The country aims to alter the laws governing the Internet economy, which has put India’s tech legislation at a crossroads. A modern law for a quickly expanding digital landscape will be vital to achieving the aim of a trillion-dollar digital economy.
Category: INTERNATIONAL RELATIONS
1. Understanding the Wagner mutiny
Syllabus: GS-2, Effect of policies and politics of developed and developing countries on India’s interests
Mains: Wagner mutiny and its global implications
Context
The chief of Russia’s Wagner Private Military Company staged a short-lived mutiny against the country’s defense establishment and plunged Russia into an unprecedented internal security crisis.Â
About Wagner mutiny
- The conflict between Wagner’s chief and Russia’s Ministry of Defence has been simmering for some time.Â
- The main cause of the Wagner group’s mutiny was a disagreement between its leader, Yevgeny Prigozhin, and the Russian military brass on matters related to the invasion of Ukraine. The Wagner group eventually opted to retreat.
- The revolt has revealed weaknesses in Russia’s military and security apparatus.
Who are the Wagner Mercenary Group?Â
- The Wagner Group, often known as PMC Wagner, is a private army that has been battling alongside the Russian military’s regular forces in Ukraine. They initially rose to fame in 2014.
- In recent years, Wagner’s soldiers have been engaged in the Central African Republic, Mali, Libya, the Central African Republic, and Ukraine.Â
- The Wagner organisation is a recognised organisation, and its headquarters are in St. Petersburg, despite the fact that mercenary forces are outlawed in Russia.
Wagner Mercenary Group and its Role in UkraineÂ
- The Wagner group has significantly expanded and has now become an important part of the fight in Ukraine, according to the UK Ministry of Defence.
- Critics perceive it as a shadow force commanded by Russian President Vladimir Putin, deployed to advance Russian interests abroad by sending front-line fighters, trainers, and advisors.
- The creator of the organisation has assumed a more prominent position in Russia’s invasion of Ukraine, raising concerns that he might have personal political ambitions.
Wagner Rebellion’s Impact on the Ukraine War
- Experts have emphasised the significance of the Wagner Forces’ conduct by drawing attention to the possible harm the Wagner Forces could cause to the Russian aerospace forces.Â
- The Russian civil war presents an opportunity for the Ukrainian military to reclaim areas lost to Russian forces, according to military analysts.Â
- This could rank as one of the most significant threats to Russia in the area because the Wagner forces were crucial to the Russian President’s offensive in Ukraine.
- This uprising might take resources away from the battlefields in Ukraine and increase pressure on Moscow at home.
Nut Graf: The recent incident involving the Wagner warriors, a band of dissident mercenary soldiers in Russia, has generated a lot of fear and uncertainty in global politics.
F. Prelims Facts
1. Bank for International Settlements (BIS) Calls for Interest Rate Increases to Tackle Inflation
Syllabus: GS-3 Economy
Prelims: International Economic Institutions
Context: The BIS’s annual report highlights the critical juncture the global economy faces due to high inflation levels.
Key Details:
BIS Urges for More Interest Rate Increases:
- The BIS has called for additional interest rate hikes as a crucial step to combat inflation.
- The global economy has reached a critical point, necessitating decisive action to address the challenges at hand.
Inflation Persists in Major Economies:
- Despite relentless rate increases in the past 18 months, inflation remains stubbornly high in many top economies.
- The inability to rein in inflationary pressures has resulted in serious banking collapses, reminiscent of the financial crisis from 15 years ago.
Shift from Short-Term Growth to Price Stability:
- BIS emphasizes the need to shift focus from short-term growth to restoring price stability.
- Monetary policy must prioritize long-term stability and address the challenges posed by inflation.
Prolonged Inflation Requires Stronger Policy Tightening:
- The longer inflation remains elevated, the more significant the necessary tightening of monetary policy.
- The BIS warns that failure to act promptly and effectively could lead to further problems in the banking sector, posing a material risk.
G. Tidbits
1. Char Dham Yatra: Deaths, Visitor Statistics, and Economic Impact
- The annual Char Dham Yatra (visiting of the Badrinath, Kedarnath, Gangotri, and Yamunotri temples) season in Uttarakhand has seen a significant number of pilgrim deaths.
- Over 31.78 lakh people have visited these temples since the pilgrimage season started on April 22 and 149 pilgrims have died during the first 65 days of the yatra season.
- Most deaths were attributed to chronic ailments aggravated by the harsh weather and tough terrain. And several pilgrims died in accidents during their journey.
- The State anticipates approximately 50 lakh pilgrims during the entire yatra season.
- In 2022, the yatra witnessed a record number of over 40 lakh pilgrims.
- Economic Impact:
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- The Char Dham Yatra provides direct and indirect employment opportunities to over 10 lakh people, including guides, hotel staff, restaurant workers, cab drivers, priests, mule operators, porters, travel operators, and the handicrafts industry.
- The economy of the Char Dham Yatra is estimated to be ₹7,500 crore, contributing to the highest share of the State’s economy.
2. NHRC sends notice on the issue of chained Labourers in Maharashtra
- Maharashtra police rescued 11 bonded labourers, allegedly kept chained by a contractor in Osmanabad district.
- The National Human Rights Commission (NHRC) issued a notice to the State government and demanded a detailed report within four weeks.
- NHRC observed gross violation of the Bonded Labour System (Abolition) Act, 1976 by the contractor.
- NHRC emphasizes the need for the administration to initiate proceedings as per labour laws.
- Proper release, relief, and rehabilitation under the Bonded Labour System (Abolition) Act, 1976, should be provided without delay.
- District Magistrate, Osmanabad, must ensure strict compliance with labour laws for the safety and security of labourers.
3. Egypt seeking India’s support in joining BRICS
- BRICS is an acronym for Brazil, Russia, India, China, and South Africa. It is an association of major emerging economies aimed at enhancing cooperation and coordination on various global issues, including economic development, trade, and geopolitics.
- The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries in 2014 with an aim to support infrastructure and sustainable development projects in emerging economies.
- Egypt joined the ‘New Development Bank’ in March 2023 and aims to seek India’s support in joining the BRICS grouping, which will discuss new memberships at its Summit in Cape Town in August 2023.
H. UPSC Prelims Practice Questions
Q1. Consider the following statements with reference to Bank for International Settlements (BIS):
- The BIS is an international organization founded in 1930 charged with fostering international monetary and financial cooperation.
- The Bank’s capital is held by central banks only including the Reserve Bank of India.
- Its headquarters is in Basel, Switzerland.
How many of these statements is/are correct?
- Only one
- Only two
- All three
- None
CHECK ANSWERS:-
Answer: c
Explanation:
All three statements are correct. Read more about the BIS in today’s CNA under ‘Prelims Facts’.
Q2. Consider the following statements with reference to the National Human Rights Commission (NHRC):
- It is a statutory body.
- It is a quasi-judicial body.
- It is a constitutional body.
How many of these statements is/are correct?
- Only one
- Only two
- All three
- None
CHECK ANSWERS:-
Answer: b
Explanation:
NHRC is a statutory body established in 1993, under the provisions of the Protection of Human Rights Act, 1993. It is also a quasi-judicial body. It is partly judicial in character, as it has powers that resemble those of a court of law.
Q3. The New Development Bank (NDB) is a multilateral development bank established by:
- BRICS
- Association of Southeast Asian Nations (ASEAN)
- Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
- Shanghai Cooperation Organisation (SCO)
CHECK ANSWERS:-
Answer: a
Explanation:
The NDB is a multilateral financial institution established by the BRICS countries, namely, Brazil, Russia, India, China and South Africa. NDB was founded in 2014 at the 6th BRICS Summit in Fortaleza, Brazil.
Q4. The Sixth Schedule of the Indian Constitution applies to the Northeastern states of:
- Assam, Manipur, Meghalaya, Tripura
- Assam, Manipur, Mizoram, Tripura
- Assam, Meghalaya, Mizoram, Tripura
- Arunachal Pradesh, Meghalaya, Mizoram, Tripura
CHECK ANSWERS:-
Answer: c
Explanation:
The Sixth Schedule of the Indian Constitution applies to the Northeastern states of Assam, Meghalaya, Mizoram (3 Councils each), and Tripura (1 Council).
Q5. ‘Paris Club’ often seen in the news is:
- An informal group of official creditors
- An international actor group that aims to cooperate with climate change-related activities
- A group of nations which counter the expansion of permanent seats in the UNSC
- An informal club involved in Disaster Management and Early Warning Systems
CHECK ANSWERS:-
Answer: a
Explanation:
Paris Club is an informal group of official creditors from 22 wealthy countries who find sustainable solutions for challenges faced by debtor countries.
I. UPSC Mains Practice Questions
- The IT Act of 2000 is outdated and ineffective for regulating emerging threats and concerns on the Internet. In this context, examine and bring out arguments in favour of the proposed Digital India Bill which seeks to replace the IT Act. (15 marks, 250 words) [GS-2, Polity]
- Evaluate the interconnections between flash floods and landslides with a focus on the Himalayan belt. Substantiate with recent examples. (15 marks, 250 words) [GS-1, Geography]
Read the previous CNA here.
CNA 27 June 2023:- Download PDF Here
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