27 Jun 2023: UPSC Exam Comprehensive News Analysis

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
FIP Magazine

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. 

About Wagner mutiny

  • The conflict between Wagner’s chief and Russia’s Ministry of Defence has been simmering for some time. 
  • 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? 

  • 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. 
  • 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 Ukraine 

  • 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. 
  • The Russian civil war presents an opportunity for the Ukrainian military to reclaim areas lost to Russian forces, according to military analysts. 
  • 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:
    • 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):
  1. The BIS is an international organization founded in 1930 charged with fostering international monetary and financial cooperation.
  2. The Bank’s capital is held by central banks only including the Reserve Bank of India.
  3. Its headquarters is in Basel, Switzerland.

How many of these statements is/are correct?

  1. Only one
  2. Only two
  3. All three
  4. 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):
  1. It is a statutory body.
  2. It is a quasi-judicial body.
  3. It is a constitutional body.

How many of these statements is/are correct?

  1. Only one
  2. Only two
  3. All three
  4. 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:
  1. BRICS
  2. Association of Southeast Asian Nations (ASEAN)
  3. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
  4. 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:
  1. Assam, Manipur, Meghalaya, Tripura
  2. Assam, Manipur, Mizoram, Tripura
  3. Assam, Meghalaya, Mizoram, Tripura
  4. 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:
  1. An informal group of official creditors
  2. An international actor group that aims to cooperate with climate change-related activities
  3. A group of nations which counter the expansion of permanent seats in the UNSC
  4. 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.

CNA 27 June 2023:- Download PDF Here

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