15 Mar 2022: UPSC Exam Comprehensive News Analysis

CNA 15 Mar 2022:-Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
SOCIAL JUSTICE
1. Maternal mortality ratio declines by 10 points: Registrar General
C. GS 3 Related
ECONOMY
1. The surge in oil and natural gas prices
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. Fragmenting world order, untied nations
2. A new deal
DEFENCE AND INTERNAL SECURITY
1. The war’s cold facts and what India needs to glean
F. Prelims Facts
1. A closer look at the Man-Portable Air-Defense Systems
G. Tidbits
1. Retail inflation climbs to 6.07%
2. ‘Microfinance firms can fix interest’
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
FIP Magazine

E. Editorials

Category: INTERNATIONAL RELATIONS

1. Fragmenting world order, untied nations

Syllabus: Important International Institutions, agencies and fora – their Structure, Mandate.

Mains: Impact of the Russia-Ukraine conflict on the established international order; Economic and geo-political impact of the ongoing crisis on India.

Context:

Impact of the ongoing conflict on global interconnectedness:

  • While the devastation caused by the war in terms of loss of lives and property by direct missile strikes and bombing of Ukrainian cities and the Ukrainian refugee crisis it has given rise to are clearly visible and measurable, the article argues that the impact the Ukraine crisis is having on the world order should be equally concerning for the global community.
  • The Ukrainian crisis is fragmenting global interconnectedness — in terms of international cooperation, military use, security, economic order, and even cultural ties. In this context, the article discusses the concerns associated with the actions being taken by both sides during the ongoing war.

Ineffectiveness of the UN and Security Council:

  • The unfolding events in Ukraine have exposed the ineffectiveness of the United Nations and the Security Council in either avoiding or even being able to end the war.
  • The unilateral actions being taken by Russia and the humanitarian crisis it has given rise to in Ukraine run in stark contrast to the spirit of the UN Charter preamble which calls for tolerance and global peace and security.
  • The article throws light on how both sides have failed to abide by accepted international principles.
    • Russia which has taken the pretext of security concerns as the reason for its invasion of Ukraine never sought an international mandate on the issue before announcing the invasion. Russia with its permanent member status of the United Nations Security Council has been able to veto all resolutions against it in the UNSC as well as the UN General Assembly.
    • Countries like the United States, the United Kingdom and France too are guilty of failing to strengthen the global order as they have imposed sanctions unilaterally rather than attempting to bring them to the UN. While Russia would have vetoed any such sanctions, it would have been the first step to build confidence in the international order represented by the UN. The flow of weapons to Ukraine is indicative of the UN’s ineffectiveness in effecting a truce to the ongoing conflict.
  • Analysing the above developments, the article describes the Ukraine crisis as a body blow to the post-World War international order established with the UN.

Overlooking nuclear safeguards:

  • Russian military’s moves to target areas near Chernobyl and shell buildings near the Zaporizhzhia nuclear power plant (Europe’s largest) show utter disregard for nuclear safeguards recommended by the International Atomic Energy Agency.
  • This is indicative of Russian recklessness with regard to nuclear safety and is also a major challenge to the global nuclear order.

Use of non-state actors:

  • The use of non-state actors in the ongoing conflict by both sides remains a cause of concern.
  • The use of armed militia operating in the Donbas regions by Russia and the invitation by the Ukrainian President to foreign fighters to support his armed forces run against the covenants agreed upon during the global war on terrorism.
  • The participation of “non-state actors” in a foreign war poses serious security concerns in the longer run.

Impact of the economic actions on global financial order:

  • Economic sanctions against Russia includes its eviction from SWIFT payments, cancellation of Mastercard, Visa, American Express and Paypal payment systems within Russia, sanctioning of specific Russian businesses and oligarchs and asking the Western businesses operating in Russia to shut down.
  • The arbitrary and unilateral nature of western sanctions run against the mandate and spirit of the international financial order set up under the World Trade Organization.
  • Economic sanctions by the U.S., the U.K. and the European Union against Russia aiming to cut out Russia from all monetary and financial systems in all probability will lead to the fragmentation of the global financial order. Russia will continue to explore alternative trading arrangements and gradually, the world may see a “non-dollar” system emerge which would run banking, fintech and credit systems separately from the “dollar world”. This could usher in an era of deglobalization.

Cultural isolation:

  • The sanctions like the EU’s banning of all Russian-owned, Russian-controlled or Russian-registered planes from EU airspace, banning of Russian channels in Europe and the cancellation of art and music performances will lead to the social and cultural isolation of Russian citizens. This goes against the global liberal order.
  • The comprehensive boycott of Russia is not in the long term interest of not only regional peace and security but also global peace. The “Iron curtain” between Soviet Russia and Western Europe led the world to suffer the consequences of the Cold War for decades.

Impacts of the ongoing crisis on India:

  • The geopolitical tensions have led to the sustained rise in oil and food prices. This is likely to aggravate inflationary pressures, and a Nomura report suggests that in Asia, India is likely to be among the worst losers as a result of this conflict.
  • The conflict is likely to have an adverse impact on India’s economy, manifested through higher inflation, weaker current account and fiscal balances, and a squeeze on economic growth. The ongoing conflict between Russia and Ukraine has sent global markets into a frenzy. This will no doubt affect India’s economic recovery from the impact of the Covid-19 pandemic.
  • India’s refusal to criticise Russia’s actions, and the abstentions at the United Nations, could affect its relations with the West and its Quad partners (the United States, Australia and Japan).
  • The unprecedented economic sanctions of the U.S. and the European Union will have economic costs on Indian trade and defence purchases.

Way forward:

  • The article calls upon all countries to take necessary steps to uphold, strengthen and reinvent the global order to make the world a safer place.

Nut Graf

The ongoing Russia-Ukraine crisis and the actions being taken by both sides have led to the fragmentation of the international order established with the UN, ushering in an era of deglobalisation and bringing down another Iron Curtain and the risks that such isolation brings with it. This is a cause for worry for the post-World War order.

2. A new deal

Syllabus: Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.

Prelims: Joint Comprehensive Plan of Action

Mains: Concerns associated with the delay in finalizing of the Iran Nuclear deal

Context:

  • The Vienna talks aimed at reviving the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, have slowed down given the new Russian demand seeking written guarantees that the economic sanctions imposed on Russia for its attack on Ukraine will not in any way harm its future trade and defence ties with Iran.

Russian blocking of the deal:

  • Though the U.S. and Europe are reportedly looking for alternatives to revive the nuclear deal without Russia, it would not be easy given the role envisaged for Russia under the agreement.
    • Russia, an original signatory of the JCPOA, is a member of the joint commission that supervises Iran’s compliance. Also, Russia is required to take control of Iran’s excess enriched uranium and work with Iran to turn its Fordow nuclear plant into a research facility.
  • Also, Iran and China would not be ready to go ahead with the deal without Russia given that Iran treats Russia as one of its allies.
  • This leaves the future of the nuclear deal in Russian hands.

Concerns over the delay:

Deepen security crisis in West Asia:

  • As per available reports, after the unilateral U.S. withdrawal from the 2015 nuclear deal, Iran started enriching uranium to a higher purity. Now, nuclear experts believe Iran is just months away from having enough high purity uranium to make a nuclear bomb. This adversely impacts the security situation in West Asia.
  • The growing nuclear capability of Iran and the delay in concluding a new deal to curb its nuclear programme threaten to deepen the security crisis in West Asia.

Global oil prices:

  • Removing sanctions on Iran and letting Iran’s oil enter the global market could help ease oil and gas prices, which shot up after the Russian attack on Ukraine.
  • The delay in finalizing this agreement could inflate global oil prices.

Recommendations:

The negotiating countries should continue to push for a collective agreement.

Nut Graf

The delay or a total collapse of the Iran deal would not only deepen the security crisis in West Asia but also add pressure on global oil and gas prices.

Category: DEFENCE AND INTERNAL SECURITY

1. The war’s cold facts and what India needs to glean

Syllabus: Security Challenges and their Management

Prelims: Major defence purchases from India

Mains: Major defence and security learnings for India from the ongoing Russia- Ukraine conflict, Recommendations for India.

Context:

  • Amidst the ongoing Russia-Ukraine conflict, the article written by retired Air Vice Marshal Manmohan Bahadur takes stock of India’s geopolitical positioning and analyses the key defence and security learnings for India from the conflict.

Major learnings:

Fallacy of collective defence:

  • Though the Western countries led by the U.S. have been supplying arms and intelligence inputs to Ukraine in its conflict with Russia, the Ukrainians have had to face the brunt of the Russian military might all alone.
  • The United States has backed away from sending its own army on the ground given that this could lead to substantial risks for itself. This has exposed the fallacy of an ally coming to fight with you and for you.
  • This indicates that a nation’s vital interests can be protected only by that nation itself.

Importance of military power:

  • Despite almost a global condemnation of Russia’s moves in the conflict and the threat of economic sanctions, Russia has been able to push ahead with its plans and seems close to realizing its security demands.
  • This is indicative of the fact that in the real world, ‘power’ talks and is in line with the famous observation by the fifth century BC Greek historian Thucydides who wrote: “Right, as the world goes, is only in question between equals in power — while the strong do what they can and the weak suffer what they must.”
  • The unfolding events in Ukraine prove that hard power dictates terms in geopolitics.

Importance of self-sufficiency in defence domain:

  • India has had to walk a diplomatic tightrope over the Russia-Ukraine issue as it tries to balance its ties with Russia and the West. One of the prime reasons for this stance has been the heavy dependency of India on Russia and the western countries for defence equipment.
  • For a nation to have strategic autonomy in matters of national security, self-sufficiency in defence research and development and manufacturing is imperative.
  • Additionally, such self-sufficiency would afford the required deterrence to prevent war, and to prosecute it (war) if deterrence fails.

The Indian experience so far:

  • India’s defence and security experience has been similar. During the 1962 India-China war, Russia was not supportive of India and it in fact sided with China and the Americans though offered moral and logistic support. It turned down India’s request for military help.
  • India’s focussed efforts at strengthening its defence capabilities helped it win the wars of 1965 and 1971.
  • The 1974 ‘peaceful’ nuclear explosion and the 1998 Operation Shakti nuclear tests have helped India achieve a degree of nuclear deterrence in the nuclear realm. This is crucial given that India faces two nuclear adversaries on its borders.
  • Recognizing the perils associated with heavy dependency on other countries for defence equipment, after the Cold War ended, India diversified its defence purchases to dilute its dependence on Russia.

Major defence purchases of India

Recommendations:

  • Based on the above observations, the article makes the following recommendations for India.
    • Given that an atomic weapon is a deterrent in the nuclear realm and not a determinant of ‘conventional’ power the author suggests improving India’s conventional defence capabilities.
    • Recognizing India’s lag in conventional military capability, the Atmanirbhar thrust in matters of defence research and development and manufacturing has to become a national endeavour in mission mode.

Nut Graf

The ongoing Russia-Ukraine conflict holds important lessons for India on the defence and security aspects. It exposes the fallacy of collective defence and stresses the importance of hard military power in geopolitical relations and highlights the need to achieve self-sufficiency in the defence sector.

F. Prelims Facts

1. A closer look at the Man-Portable Air-Defense Systems

Syllabus: GS3: Security Challenges: Defense equipment

Prelims: What are MANPADS?

Context: The US and NATO allies are sending Man-Portable Air-Defense Systems (MANPADS) arms shipments to Ukraine.

What are MANPADS?

  • Short-range, lightweight, and portable surface-to-air missiles that may be fired by individuals or small groups to kill aeroplanes or helicopters are known as Man-Portable Air-Defense Systems.
  • They aid in the protection of troops from aerial attacks and are particularly efficient against low-flying aircraft.
    • Man-Portable Anti-Tank Systems, or MANPATs, are identical but are used to destroy military tanks.
  • MANPADS can be fired from a helicopter or boat, or launched from atop a ground vehicle. 

Significant features of MANPADS 

  • Requires substantially less training
  • Maximum range of 8 km 
  • Engage targets at altitudes of 4.5 km
  • ‘Fire and forget’ guidance systems
  • Fitted with infrared (IR) seekers 

When were MANPADS used in the past?

  • In the 1960s, the United States and the Soviet Union introduced the first MANPADS.  
  • MANPADS from Russia and the United States were also utilized in the Vietnam War.
  • In the 1980s, the United States provided Afghanistan with MANPADS.
  • India, Pakistan, Germany, the United Kingdom, Turkey, and Israel have all employed MANPADS in their defensive endeavours.

G. Tidbits

1. Retail inflation climbs to 6.07%

  • India’s retail inflation inched up to 6.07% in February 2022 from 6.01% in January 2022, with rural India experiencing a sharper price rise at 6.38%. 
  • The Reserve Bank of India mainly factors in the CPI-based inflation while arriving at its bi-monthly monetary policy.
  • Retail inflation tracked by the Consumer Price Index (CPI) measures the changes in prices from a retail buyer’s perspective.
retail inflation

Image source: The Hindu

2. ‘Microfinance firms can fix interest’

  • The Reserve Bank of India (RBI) allowed microfinance institutions to fix interest rates on loans, with a caveat that the rates should not be usurious.
  • In revised guidelines, the RBI tweaked the definition of a microfinance loan to indicate a collateral-free loan given to a household with an annual income of up to ₹3 lakh.
  • Earlier, the upper limits were ₹1.2 lakh for rural borrowers and ₹2 lakh for urban borrowers.

H. UPSC Prelims Practice Questions

Q1. Which of the following fundamental rights are available to both citizens and foreigners, 
except enemy aliens?
  1. Article 14
  2. Article 19
  3. Article 21
  4. Article 25
  5. Article 29

Options:

  1. 1, 3 and 4 only
  2. 1, 2, and 5 only
  3. 2, 3, 4 and 5 only
  4. 1, 2, 3, 4 and 5
CHECK ANSWERS:-

Answer: a

Explanation:

Fundamental Rights available only to citizens and not to foreigners are:

  • Prohibition of discrimination on grounds of race, religion, caste, gender or place of birth (Article 15).
  • Equality of opportunity in matters of public employment (Article 16).
  • Protection of freedom of speech & expression (Article 19).
  • Protection of the culture, language and script of minorities (Article 29).
  • Right of minorities to establish and administer educational institutions (Article 30).

Hence Fundamental Rights available to both citizens and foreigners are Article 14, Article 21 and Article 25. Hence option A is correct.

Q2. Which of the following statements is/are correct?
  1. Border infrastructure creation is largely the responsibility of the Ministry of Home Affairs.
  2. Department of Border Management under the MHA deals with the management of borders, including coastal borders, strengthening of border guarding mechanisms and creation of related infrastructure, border areas development, etc.

Options:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
CHECK ANSWERS:-

Answer: c

Explanation:

Ministry of Home Affairs

  • The Ministry of Home Affairs looks after the creation of border infrastructure. Hence Statement 1 is correct.
  • Department of Border Management under the MHA deals with the management of borders, including coastal borders, strengthening of border guarding mechanisms and creation of related infrastructure, border areas development, etc. Hence Statement 2 is correct.
  • The Department is further organized into two divisions –
    • Border Management Division – I
    • Border Management Division – II
Q3. With reference to the Joint Comprehensive Plan of Action (JCPOA), examine which of 
the following statements are correct?
  1. It deals with western economic sanctions against Russia.
  2. It was signed between P5 countries & the EU.
  3. Russia has recently breached the terms of the agreement.

Options:

  1. 1 only
  2. 2 and 3 only
  3. 3 only
  4. None of the above
CHECK ANSWERS:-

Answer: d

Explanation:

  • The Iran Nuclear Deal, formally known as the Joint Comprehensive Plan of Action (JCPOA)  is an agreement on the Iranian nuclear program. Hence Statement 1 is not correct.
  • It was signed in Vienna on 14 July 2015, between Iran and the P5+1 (the five permanent members of the United Nations Security Council—China, France, Russia, United Kingdom, United States—plus Germany).  Hence Statement 2 is not correct.
  • The Iran Nuclear Deal has often been in the news from time to time, primarily focusing on the frosty relationship between Iran and the United States.  Hence Statement 3 is not correct.
Q4. ‘PM SVANidhi’ scheme was launched to benefit -
  1. Small and marginal farmers
  2. Tribal artisans
  3. Street vendors
  4. Women-led Self-help Groups
CHECK ANSWERS:-

Answer: c

Explanation:

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched by the Ministry of Housing and Urban Affairs on June 01, 2020, for providing affordable Working Capital loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown.

  • It is a Central Sector Scheme. No funds are released to the States for disbursal to beneficiaries. The loan amount is directly released to the beneficiaries by the Lending Institutions.
  • Street Vendors can avail of a working capital loan of up to Rs. 10,000, which is repayable in monthly instalments in the tenure of one year.
  • On timely/early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on a quarterly basis.
  • There will be no penalty on the early repayment of the loan. 
  • Implemented by Small Industries Development Bank of India (SIDBI).
  • Hence option C is correct.
Q5. If you withdraw 1,00,000 in cash from your Demand Deposit Account at your bank, the 
immediate effect on aggregate money supply in the economy will be [UPSC 2020]
  1. To reduce it by 1,00,000
  2. To increase it by 1,00,000
  3. To increase it by more than 1,00,000
  4. To leave it unchanged
CHECK ANSWERS:-

Answer: d

Explanation:

  • A demand deposit account is one in which funds are maintained in a bank account and can be withdrawn at any time. 
  • Demand Deposit Accounts include Current and Savings Accounts.
  • The entire currency in circulation plus the public’s demand deposits with banks make up the money supply.
  • Hence, Money Supply = Currency with public + Currency in the bank. 
  • When you withdraw money from the bank, it is converted into the currency you have on hand, but it has no effect on the money supply’s value. Hence, there will be no change in the aggregate money supply.
  • Hence option D is correct.

I. UPSC Mains Practice Questions

  1. Failure to intervene in the Russia-Ukraine conflict is yet another example of the United Nations’ futility. Discuss. (250 words; 15 marks) [GS 2, International Relations]
  2. ‘Atmanirbharta in defense is the only deterrent that is guaranteed to work in the future against our adversaries.’ Do you agree? Elaborate. [GS 3, Indigenization of Technology]

Read the previous CNA here.

CNA 15 Mar 2022:-Download PDF Here

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