CNA 18 May 2023:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. The latest China-Canada kerfuffle C. GS 3 Related ECONOMY 1. Why are financial regulators transitioning from LIBOR? D. GS 4 Related E. Editorials POLITY 1. Two judgments and the principle of accountability GOVERNANCE 1. Palliative care model from Kerala F. Prelims Facts 1. Kiru hydro-electric power project G. Tidbits 1. Cabinet gives approval for fertilizer subsidy of ₹1.08 lakh crore for kharif 2. Key climate threshold likely to be breached in 5 years: UN 3. India, EU explore ways to resolve ‘carbon border tax’ 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. The latest China-Canada kerfuffle
Syllabus: Effect of policies and politics of developed and developing countries
Prelims: Persona non grata
Mains: The state of Canada-China bilateral ties
Context
China and Canada expel each other’s diplomats.
Background
- On the 8th of May 2023, the Canadian government declared a Chinese diplomat “persona non grata,” over allegations of intimidation of a Canadian lawmaker who had criticised China for its human rights abuses.
- The Canadian lawmaker had initiated legislative efforts in Canada’s House of Commons to declare China’s treatment of Uyghurs and other minorities in Xinjiang as “genocide”.
- A report from the Canadian Security Intelligence Service (CSIS) further revealed that the Chinese diplomat was gathering information about the Canadian lawmaker and his family in Hong Kong to target him over his anti-Chinese sentiments.
- On the 9th of May 2023, as a reciprocal countermeasure, China declared a Canadian diplomat in Shanghai as “persona non grata”.
Persona non grata
- Persona non grata in Latin means “an unwelcome person.”
- Persona non grata in foreign diplomacy refers to a diplomat or foreign individual whose entering or remaining in a certain country has been prohibited by that country.
- According to Article 9 of the Vienna Convention for Diplomatic Relations, 1961, “the host country can declare any member of the diplomatic staff of a mission persona non grata at any point in time and for any reason”.
- Such a person must be recalled by the home country of the person within a stipulated time period, or else he stands to lose his diplomatic immunity.
- The Article also says that an individual can be declared persona non grata even before arriving in a country.
- However, the Article does not fix any rules regarding when a country can declare a foreign person persona non grata.
- Important examples:
- India had declared a Pakistan High Commission staffer as persona non-grata for his involvement in espionage activities in 2016.
- Further in 2020, the Indian government had declared two more Pakistani officials as persona non-grata for their involvement in espionage activities.
- Famous Hollywood actor Brad Pitt was declared persona non grata by China after starring in the 1997 film titled “Seven Years in Tibet”.
- Before becoming the President of the US, Donald Trump was also labelled persona non grata by Panama City’s Municipal Council for his comments on the Panama Canal.
Canada-China bilateral ties
- Diplomatic relations between China and Canada have been unsteady in recent times.
- The current state of ties started when the Canadian police arrested an executive of the Chinese tech company Huawei on charges of fraud in 2018.
- A few days after the incident, Chinese officials detained two Canadians on charges of spying and the move was then regarded as “hostage diplomacy”.
- During the same period, China banned the imports of canola from Canada, alleging pests in the shipment, which widened the tensions between the countries.
- This ban was only lifted in 2022 amidst a global shortage of food due to the Russia-Ukraine war.
- Additionally, Canada had accused China of attempting to interfere in the Canadian federal elections conducted in 2019 and 2021.
- Both countries have also engaged in a technology battle as Canada has restricted the presence of Chinese companies in its communications infrastructure while China has said that the restrictions were imposed without any solid evidence.
- The tension between the two countries and their leaders was also seen at the 2022 G-20 summit held in Indonesia when the Chinese President and the Canadian Prime Minister argued over leaked details of their meeting about Chinese interference in domestic affairs.
Nut graf: The diplomatic ties between China and Canada have been strained for some time now, but the diplomatic tensions between the two countries have mounted with the latest spat which has led to the declaration of each other’s diplomats as “persona non grata”.
C. GS 3 Related
1. Why are financial regulators transitioning from LIBOR?
Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, and development.
Prelims: About LIBOR and SOFR
Mains: Working of various benchmark interest rates, issues associated with LIBOR and the available alternatives
Context
The Reserve Bank of India (RBI) has asked the banks and financial institutions to facilitate a complete transition away from the London Interbank Offered Rate (LIBOR) by the 1st of July 2023.
London Interbank Offered Rate (LIBOR)
- LIBOR is a globally accepted benchmark interest rate at which major global banks may borrow from one another in the international (London) interbank market for short-term loans.
- LIBOR is used as a benchmark to settle trades in futures, options, swaps and other derivative financial instruments in over-the-counter markets and on exchanges.
- Furthermore, LIBOR is also used as a benchmark rate for consumer lending products such as credit cards, mortgages, student loans, corporate debt, etc.
- Every business day before 11 a.m. (London time), banks on the LIBOR panel make their submissions to Thomson Reuters, which is a news and financial data company.
- This LIBOR panel comprises commercial bankers such as J.P. Morgan Chase (London branch), Lloyds Bank, Bank of America (London branch), Royal Bank of Canada, UBS AG, etc.
- The contributed rates are then ranked based on the LIBOR submission.
- During the ranking process, extreme quartiles are excluded and the middle quartiles are averaged to derive the LIBOR.
- This is in line with the idea of being as close to the median as possible.
Controversy surrounding LIBOR
- Recently, there have been efforts to phase out LIBOR because of its role in worsening the Financial Crisis of 2008 and also due to the scandals involving LIBOR manipulation among rate-setting banks.
- Critics have pointed out that the mechanism adopted by LIBOR relied heavily on banks to be honest with their reporting disregarding their commercial interests.
- Investigations have revealed a long-lasting scheme among various banks to manipulate rates in order to acquire more profit.
Read more – London Interbank Offered Rate (LIBOR) and its controversy
Other alternatives to LIBOR
- The U.S. Federal Reserve in 2017, announced the Secured Overnight Financing Rate (SOFR) as an alternative to LIBOR.
- Post the introduction of SOFR, new transactions in India were to be undertaken using the SOFR and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR), replacing LIBOR and its corresponding domestic Mumbai Interbank Forward Outright Rate (MIFOR).
- SOFR is a rate produced by the U.S. Federal Reserve Bank based on transaction data (observable repo rates which are collateralised by U.S. Treasury securities) and is not based on estimates by experts as in LIBOR.
- Thus, SOFR is considered to be more accurate and less prone to market manipulation.
- RBI had asked banks in India to assess their LIBOR exposures and initiate their preparations to adopt alternative reference rates.
- Contracts that were signed after December 31, 2021, were told not to use the LIBOR as a reference rate and the contracts that were entered before the date were to have fallback clauses for revised considerations when the LIBOR is completely phased out.
Nut graf: As both LIBOR and MIFOR would cease to be a representative benchmark from June 30 2023, the RBI has asked banks and financial institutions to develop their systems and processes to facilitate the complete transition to SOFR and MMIFOR from July 1st, 2023.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
1. Two judgments and the principle of accountability
Syllabus: GS-2, State Legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.
Mains: Issues associated with anti-defection law in India
Context: Two Constitution Benches of the Supreme Court of India delivered important judgments recently.
Introduction:
- In one case, the Supreme Court decided that the Delhi government headed by the Chief Minister — and not the Lieutenant Governor appointed by the central government — will control civil services working for the Delhi government.
- The second case involved the formation of the current government in Maharashtra following the “split” in the Shiv Sena party.
Read more on Supreme Court’s ruling on Maharashtra
Read more on Supreme Court’s ruling on Delhi government
Contradiction of a core principle:
- Both the above unanimous judgments authored by the Chief Justice of India have contradictory positions.
- The Maharashtra judgement follows the Tenth Schedule (anti-defection law), which undermines parliamentary democracy.
- The Delhi case involved determining the accountability of civil services to the Delhi cabinet or the Union government.
- The Supreme Court ruled that parliamentary democracy requires a triple chain of command: civil service officers are accountable to Ministers, Ministers are accountable to the legislature, and the legislature is accountable to the electorate.
- The Maharashtra judgement dealt with conflicting whips issued by two factions of the Shiv Sena, and the Court determined the power to issue directions lies with the political party, not the legislature party.
- The Maharashtra judgement reinforces the power of party leadership over the legislature and undermines accountability to the electorate.
- The judgment contradicts the Delhi judgment’s principle of daily assessment by the legislature, as party leaders control the votes of their legislators, ensuring the government’s victory on every issue.
Reasons behind this contradictory position:
- The judges arrived at contradictory conclusions due to different interpretations based on the Constitution and the Tenth Schedule.
- The anti-defection law undermines the democratic principle of accountability between legislators and voters.
- The law assumes that any vote against party direction is a betrayal of the electoral mandate, which is an incorrect interpretation of representative democracy.
- The Supreme Court has recognized the importance of factors beyond party affiliation in elections, such as candidates’ criminal records, assets, liabilities, and educational qualifications.
- Election results in Karnataka and Madhya Pradesh, demonstrate that voters consider individual candidates rather than solely relying on party affiliation.
- In Karnataka, by-elections were triggered due to the defection of several MLAs in 2019, just months after the general election; 13 of the defectors contested on a different party ticket, and 11 of them were re-elected.
- Similarly, in Madhya Pradesh, 15 of the 22 MLAs who defected won the ensuing by-elections.
- The electorate thus endorsed the candidate and not the original party that had won a couple of years earlier.
Need for a relook:
- The anti-defection law disrupts the accountability chain in a parliamentary democracy, undermining the core principle of government’s accountability to the legislature and legislators’ accountability to voters.
- Legislators are compelled to follow party orders, even at the expense of government accountability, leading to a violation of parliamentary democracy’s central principle.
- A previous Supreme Court ruling in 1992 upheld the anti-defection law’s constitutionality, but a re-evaluation of this issue would require a larger Bench.
- The Maharashtra judgement has referred a question on the Speaker’s ability to decide on disqualification petitions while facing a removal notice to a seven-judge Bench.
- The seven-judge Bench should also explore whether the anti-defection law violates the basic structure of the Constitution, aiming to restore government accountability to the people.
Nut Graf: The Supreme Court’s contradictory judgments on the Delhi government’s control over civil services and the formation of the Maharashtra government highlight the conflict between party leadership and accountability to voters. The anti-defection law undermines parliamentary democracy and requires a re-examination by a larger Bench to restore government accountability.
1. Palliative care model from Kerala
Syllabus: GS-2, Government Policies & Interventions for Development
Mains: Need for the integration of palliative care into the health care system of the country.
Context: This article discusses various dimensions of Kerala’s successful palliative care model.
Introduction:
- Palliative care is a specialised approach to healthcare that focuses on improving the quality of life for individuals facing serious illnesses or conditions.
- It aims to provide relief from pain, symptoms, and psychological distress, while also addressing the emotional, social, and spiritual needs of patients and their families.
- Palliative care is not limited to end-of-life situations and can be provided alongside curative treatments. It is appropriate for individuals with chronic illnesses, such as cancer, heart disease, or neurological disorders, as well as those with life-threatening conditions.
- Palliative care can be provided in various settings, including hospitals, hospices, long-term care facilities, and even in a person’s own home.
- More than 80% of individuals who experienced serious health-related suffering in 2015 were from low- and middle-income countries.
- India’s capacity to address significant health-related suffering on a large scale is inadequate due to limited coverage of palliative care, which stands at approximately 4% and is concentrated primarily in major cities.
- This poses a challenge considering the country’s middle-income status, ageing population, and increasing burden of non-communicable diseases.
Kerala Model:
- Kerala stands out as a global example of a comprehensive and inclusive palliative care model. The model’s success extends beyond healthcare, demonstrating broader social and public innovations.
- Kerala boasts one of the largest palliative care networks in the world, with over 841 palliative care sites out of India’s total of 908, as reported by The Lancet in 2018.
- The state has established a network of palliative care centres, community-based clinics, and home care services that work in coordination with hospitals and healthcare professionals.
- Kerala’s model emphasises community involvement and participation in palliative care. Local volunteers, known as palliative care workers, play a crucial role in identifying patients, providing basic care, and supporting families.
- For example, the Pain and Palliative Care Society in Calicut has been instrumental in delivering palliative care services to patients in need, reaching over 7,000 patients in 2020 alone.
- The volunteers went beyond traditional boundaries by extending their support to patients with unconventional conditions like spinal injuries, HIV/AIDS, and geriatric cases. They also recognized the social challenges faced by families in their communities when dealing with these conditions.
- Recognizing that a significant portion of a patient’s suffering is non-medical, the community-based model in Kerala emphasised holistic care.
- This approach involved community ownership and provided comprehensive support, including medical, social, financial, bereavement, and rehabilitative assistance to patients and their families.
- Kerala’s model differed greatly from hospital-based approaches prevalent elsewhere in the world.
- The need for the State’s involvement in palliative care was recognized by community organisers in Kerala by 2004. This led to the initiation of the Pariraksha project in Malappuram panchayats, which eventually paved the way for a landmark palliative care policy in 2008.
- This policy mandated palliative care provision at primary, community, and tertiary levels across all 14 districts of Kerala.
Significance:
- This model addresses the limited access and affordability of hospitals and hospices that are prevalent worldwide.
- While only 14% of patients globally receive palliative care, Kerala’s model covers over 60% of patients in need.
- Kerala’s successful integration of palliative care into public health systems challenges prevailing myths about the “impossibility of public health infrastructure in India” or the belief that “the State cannot deliver healthcare.”
- This model demonstrates that public health palliative care integration is not only feasible but also essential. By effectively integrating palliative care into the public health framework, Kerala showcases the potential of government-led initiatives in providing comprehensive healthcare services.
- The Kerala model highlights the role of community organisations in this regard. The formation of such inclusive and collaborative networks showcases the power of solidarity in building a resilient and effective palliative care system that caters to the diverse needs of the population.
Read more on National Health Mission
Nut Graf: Kerala’s community palliative care model, driven by volunteers and nurses, is considered a global exemplar in inclusive care infrastructure. The success of the model highlights the possibilities of public health integration and demonstrates how diverse groups can come together to create effective care infrastructure.
F. Prelims Facts
1. Kiru hydro-electric power project
Syllabus: GS-3; Economy; Infrastructure – Energy
Prelims: About Kiru hydro-electric power project
Context
The Central Bureau of Investigation (CBI) searched various locations in Delhi and Rajasthan in connection with a case alleging corruption in the award of ₹2,200 crore civil works related to the Kiru hydroelectric power project.
Kiru hydro-electric power project
- Kiru Hydro Electric Project is a 624 MW project being constructed in Kiru village located in the Kishtwar district of Jammu and Kashmir.
- The project is proposed on River Chenab.
- The project is being built between Kirthai II (upstream) and Kwar (downstream) hydroelectric plants.
- The project is said to be a Run of River Scheme.
- Run-of-the-river hydroelectric systems harvest the energy from flowing water to generate electricity in the absence of a large dam and reservoir.
- The project is being built by Chenab Valley Power Projects (CVPP), which is a joint venture between National Hydroelectric Power Corporation (NHPC), Jammu & Kashmir State Power Development Corporation (JKSPDC) and Power Trading Corporation (PTC).
- The project is expected to increase access to energy in the rural parts of northern India and will also improve the transportation, education, medical, and road transportation network in the region.
Image Source: Moneycontrol
G. Tidbits
1. Cabinet gives approval for fertilizer subsidy of ₹1.08 lakh crore for kharif
- The Union Cabinet has approved a ₹1.08 lakh crore subsidy for the ongoing kharif season.
- The fertilizer prices have continued to remain high owing to global factors which include a fall in production and increased logistics costs caused due to the Russia-Ukraine war.
- The government expects this fertilizer subsidy for 2023 to cross ₹2.25 lakh crores.
- Out of the total ₹1.08 lakh crore subsidy approved,
- ₹38,000 crores will be extended to phosphatic and potassic (P&K) fertilizers, and
- ₹70,000 crores will go toward the urea subsidy.
- This decision according to the Minister of Chemicals and Fertilizers will benefit over 12 crore farmers.
- According to the Minister,
- The total consumption of urea in India is around 325 to 350 lakh tonnes.
- The total consumption of nitrogen, phosphorus, and potassium (NPK) fertilizers is around 100 to 125 lakh tonnes.
- The total consumption of muriate of potash (MoP) is about 50 to 60 lakh tonnes.
Know more – Nutrient Based Subsidy Scheme
2. Key climate threshold likely to be breached in 5 years: UN
- The UN’s World Meteorological Organization (WMO) has cautioned that 2023 to 2027 will be the warmest five-year period ever recorded mainly due to the effects of El Nino combined with the increase in the emission of greenhouse gases.
- Further, the hottest eight years ever recorded were all between 2015 to 2022. The year 2016 was the warmest.
- Under the Paris Agreement of 2015, countries agree to limit global warming below 2°C above average levels measured between 1850 and 1900 and 1.5°C if possible.
- The global mean temperature in 2022 was 1.15°C above the 1850-1900 average.
- According to WMO, there is a 66% chance that annual global surface temperatures will exceed 1.5°C above pre-industrial levels for at least one of the years between 2023 to 2027.
- This significant increase in global temperatures will have far-reaching consequences on health, food security, water management and the overall environment.
Read more about – Greenhouse Gases (GHGs) and their Impact on the Environment
3. India, EU explore ways to resolve ‘carbon border tax’
- India and the European Union (EU) are looking for ways to resolve the current blockade in their trade relationships in the form of the EU’s Carbon Border Adjustment Mechanism (CBAM).
- The CBAM regulations came into force in May 2023 and will be implemented starting from October 1st, 2023.
- According to the EU, CBAM is a “landmark tool” that places a “fair price” on carbon emitted during the production of goods that are entering the EU and a mechanism to “encourage cleaner industrial production” outside the EU.
- The EU is India’s second-largest trading partner and India’s second-largest export market.
- The EU has proposed carbon taxes over 16 commodities out of which India is likely to experience a significant impact over two sectors namely steel and aluminium.
- This move by the EU is likely to impact less than 2% of India’s exports and the government is analysing the extent of the overall impact of the carbon tax and its compatibility with World Trade Organisation (WTO) norms.
- An Indian delegation led by the Commerce Minister and External Affairs Minister discussed CBAM during their recent visit to Brussels for bilateral meetings and the first edition of the EU-India Trade and Technology Council (TTC).
- The first meeting of the TTC included working groups on various aspects such as Strategic Technologies, Digital Governance, Green and Clean Energy Technologies, and Trade and Investment.
H. UPSC Prelims Practice Questions
Q1. Identify the correct statements regarding Cardiovascular Diseases: (Level – Moderate)
- It is the leading cause of death in the world.
- India Hypertension Management Project was introduced in 2017 to reduce both deaths and disabilities due to CVD.
- MoH&FW has recently introduced a 75/25 initiative solely to focus on patients with hypertension.
Options:
- 1 and 2
- 2 and 3
- 1 and 3
- 1, 2 and 3
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 1 is correct, According to WHO, Cardiovascular diseases (CVDs) are the leading cause of death globally, taking an estimated 17.9 million lives each year.
- Statement 2 is correct, India Hypertension Management Initiative (IHMI) was launched with the aim to reduce disability and death related to cardiovascular disease (CVD).
- Statement 3 is not correct, To mark World Hypertension Day, the Union Health Ministry launched an ambitious “75/25” initiative for screening and putting 75 million people with hypertension and diabetes on Standard Care by 2025.
Q2. Which of the following statements is/are true? (Level – Difficult)
- Greater Flamingos are endemic to India.
- Greater Flamingos are the only variety of flamingos in India.
- They are mostly concentrated in the Eastern parts of India.
- In the IUCN Red list, they are under the “Least Concern” category.
Options:
- 1 and 2 only
- 2 and 3 only
- 4 only
- 1, 3 and 4 only
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is not correct, Greater Flamingos are endemic to the Afro-Eurasia region.
- Greater flamingos migrate to India in search of food and to lay eggs.
- Statement 2 is not correct, Out of six species of Flamingos found across the world, two can be spotted in India which include the Greater Flamingos and the Lesser Flamingos.
- Statement 3 is not correct, Flamingo populations are mainly found in northwestern parts of India.
- Flamingos in India can be seen in: Thol Lake, Nal Sarovar and Khijadiya Bird Sanctuary (Gujarat), Thane Creek and Sewri Mudflats in Mumbai (Maharashtra), Najafgarh Lake (Delhi), Chilika Lake (Odisha) and Pulicat Lake (Andhra Pradesh)
- Statement 4 is correct, The Greater Flamingo is listed as “Least Concerned” under the IUCN Red list.
Q3. Which of the following statements is/are true regarding the Nutrient Based Subsidy Scheme? (Level – Easy)
- It is implemented by the Ministry of Agriculture and Farmers’ Welfare.
- It provides subsidies for all the 3 macronutrient fertilizers (NPK).
Options:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is not correct, The Nutrient Based Subsidy scheme is administered by the Department of Fertilisers under the Ministry of Chemicals & Fertilisers.
- Statement 2 is correct, Under the scheme, fertilisers are provided at subsidised rates based on the nutrients contained, namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S).
- The Scheme does not include urea-based fertilisers.
Q4. Identify the animal by taking a look at the following statements: (Level – Moderate)
- This is an elusive species native to Central and South Asia.
- In India, they are found in both Western and Eastern Himalayas.
- It is included in Appendix 1 of the CITES.
Options:
- Sangai deer
- Red Panda
- Brown Bear
- Snow Leopard
CHECK ANSWERS:-
Answer: d
Explanation:
- Snow Leopard, classified as Panthera uncia, is a large long-haired Asian cat belonging to the family Felidae.
- The Snow Leopard is known to inhabit the mountains of central Asia and the Indian subcontinent.
- In India, their geographical range encompasses a large part of the western Himalayas as well as the Eastern Himalayas.
- Snow Leopards are known to have evolved to survive in some of the harshest conditions on Earth.
- Their thick white-grey coat spotted with large black rosettes not just protects them from the cold but also makes them almost invisible in their surroundings providing natural camouflage. Thus, Snow Leopards are often termed “ghosts of the mountains”.
- Conservation statue:
- IUCN Red List Status: Vulnerable
- WPA, 1972 Schedule: Schedule I Protection
- CITES: Appendix 1 Protection
Q5. Which of the following is not included in the assets of a commercial bank in India? (Level – Easy) [PYQ 2019]
- Advances
- Deposits
- Investments
- Money at call and short notice
CHECK ANSWERS:-
Answer: b
Explanation:
- Assets: Assets are such items possessed by the banks that will provide benefits in future.
- Assets of a bank include Advances, Investments, Loans lent, Money at call and short notice, etc.
- Liabilities: Liabilities are items that are obligations for a bank. In simple terms, liabilities are what the bank owes to others.
-
- Deposits are amounts to be payable to the depositor i.e. the bank has to repay the amount to the depositor on demand or on the maturity of the deposit. Thus, deposits are a liability for the bank.
I. UPSC Mains Practice Questions
- Palliative care is an often ignored part of the public healthcare system. Do you agree? What steps have been taken by the government to change this situation? (250 words; 15 marks) (GS-2; Health)
- Has the time come to take a long look at the anti-defection law and bring it in line with the right to freedom of expression for the legislators in India? Discuss. (250 words; 15 marks) (GS-2; Polity)
Read the previous CNA here.
CNA 18 May 2023:- Download PDF Here
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