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Arrived at consensus on ties in Bali: China (Page no. 1)
(GS Paper 2, International Relation)
Prime Minister Narendra Modi and Chinese President Xi Jinping reached a “consensus” to restore bilateral ties during their meeting in Bali last year, said China, the first time either side has suggested that the meeting between the two leaders at a dinner had included any substantial conversation.
The claim was made in a Chinese Foreign Ministry statement issued after a meeting between National Security Adviser (NSA) Ajit Doval and his counterpart Director of the Central Foreign Affairs Commission of the Communist Party of ChinaWang Yi in Johannesburg, where both advisers are attending the BRICS meeting of NSAs.
The Indian statement on the Doval-Wang meeting did not include any reference to the claim, and instead focused on the continuing Line of Actual Control (LAC) stand-off that Mr. Doval said had “eroded” the “public and political basis” of the ties.
States
Final orbit-raising manoeuvre of Chandrayaan-3 completed (Page no. 5)
(GS Paper 3, Science and Technology)
The Indian Space Research Organisation (ISRO) successfully completed the fifth and final orbit-raising manoeuvre (earth-bound perigee firing) of the Chandrayaan-3 mission.
It was performed successfully from ISRO Telemetry, Tracking and Command Network (ISTRAC) in Bengaluru.
The spacecraft is expected to attain an orbit of 1,27,609 km x 236 km. This means that Chandrayaan-3 is now in an orbit which, when closest to earth is at 236 km and when farthest is at 1,27,609 km.
The achieved orbit will be confirmed after the observations,” ISRO said after the successful orbit-raising manoeuvre. Following the final orbit-raising manoeuvre, ISRO will perform the TransLunar Injection (TLI) on August 1 to slingshot Chandrayaan-3 towards the moon.
“The next firing, the TransLunar Injection (TLI), is planned for August 1, 2023, between midnight and 1 a.m. IST,” ISRO said.
The Chandrayaan-3 consists of a lander module (LM), propulsion module (PM) and a rover which was launched by the LVM3-M4 on July 14.
A series of deboost manoeuvres is also scheduled to take place before the power descent phase for the soft landing on the moon.
Editorial
Drawn from gig workers’ struggles, hewn in Rajasthan (Page no. 6)
(GS Paper 3, Economy)
The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023, passed in the Rajasthan Assembly on July 24, is a powerful example of how labour law draws its strength from workers’ struggles and victories of the past, even as “the workers of the world” respond to new relationships of employers, employees, and workers rights in the evolving future.
The term “gig” draws its etymological origin from jazz musicians doing short time-based performances called “gigs” for a predetermined fee.
The capitalist economy applied this definition to current working arrangements, to escape from employer-employee relationships of any kind.
The “gig economy” is in fact nothing more than the minute contractualisation of work, where the employer escapes from all responsibility except for determining the immediate task at hand, and arranging the pecuniary payment for it.
For example, in the case of a transport-based worker such as with Uber or Ola, or many others, the “aggregator” uses an app-based platform to connect the “customer” with the “driver”, for which they take a healthy “commission”.
The app (operationalised with the help of algorithms) does the rest, including fixing the route, regulating the rides, paying taxes, and delivering profit to the company.
If the worker does not comply with conditions decided by the company, their “ID” is blocked, resulting in a temporary digital punishment, or digital dismissal. Since the company claims not to “employ” the workers, but “partner” them, there are no employer responsibilities for wages, working conditions, or social security. Needless to say, there are no “shares” of profit or company value that should accompany true partnership.
Around the world, drawing inspiration and power from the architecture and legal regime of market fundamentalism, companies have resisted taking on the most basic responsibility for the dignity and “fair working conditions” of workers.
The nature of unorganised work leaves all gig workers at the mercy of a cartel of employers that calls the shots. Even the few unions that have been formed are unequal to take on these employers for any kind of collective bargaining.
There is a need for the state to support gig workers through law, but the neoliberal state has shown neither the appetite nor the creative responsibility to do so.
Moving away from the ‘take-make-dispose’ model (Page no. 6)
(GS Paper 3, Economy)
Resource efficiency and circular economy are powerful strategies that can effectively minimise dependence on natural resources, curtail waste and encourage sustainable design practices.
In the collective global endeavour to ensure sustainable development and realise the Sustainable Development Goals, decoupling resource utilisation from economic growth is going to be the key.
Recognising the need to switch from the ‘take-make-dispose’ to ‘reduce-reuse-recycle’ model, India has prioritised ‘Resource Efficiency and Circular Economy’ as one of the three core themes for deliberations in the G-20 forum.
India has embraced four priority areas for the circular economy during its G-20 presidency: circularity in the steel sector; Extended Producer Responsibility (EPR); circular bioeconomy and establishing an industry-led resource efficiency and circular economy industry coalition.
There is now heightened recognition of resource efficiency and circular economy strategies within the G-20 community.
Most G-20 member countries have committed to net zero ambitions and are working to mitigate greenhouse gas emissions.
In order to ensure growing resource consumption in an environmentally responsible manner, there is also a need to raise the current recycling rates of 15%-25%.
Given the crucial role of steel in infrastructure development, its efficient utilisation is important. The demand for steel is poised to grow especially in growing economies such as India. Globally, about 7% of energy sector emission is attributed to iron and steel production.
Transitioning towards a circular steel sector is a key strategy to tackle steel sector emissions. The key lies in ensuring collaboration among the G-20 member countries for knowledge sharing, technology co-development and technology transfer.
The presidency document for knowledge exchange on the ‘Circular Economy in [the] Steel Sector’ is a potential blueprint for a net zero pathway for the steel industry, reducing resource utilisation and minimising wastage.
Opinion
Child, law, and consensual sex (Page no. 7)
(GS Paper 2, Social Justice)
In the last one month, at least three different High Courts have either quashed First Information Reports (FIRs) and pending criminal proceedings or acquitted accused persons under the Protection of Children from Sexual Offences (POCSO) Act, 2012. One High Court released the accused on bail on the grounds that the accused and victim had consensual sex.
On July 12, the Delhi High Court released a 25-year-old accused on bail on the premise that the 15-year-old girl had eloped with him on her own and did not support the prosecution’s story of sexual assault.
On July 10, the Bombay High Court quashed the conviction of a 25-year-old man under POCSO on the grounds that he had consensual sex with the 17-year-old girl.
The girl had terminated her pregnancy after the arrest of the accused. On July 7, the Madras High Court not only quashed an FIR registered under POCSO and consequential criminal proceedings, but also directed the Director General of Police to produce the reports of all such pending cases before the Court.
The Madhya Pradesh High Court quashed an FIR registered under POCSO and all criminal proceedings on the basis that the sexual relationship was consensual.
The judgment did not mention the age of the accused (who used to be her coach). The Court recommended that the Indian government consider reducing the age of consent of the prosecutrix from 18 to 16 years. The relevant sections of the Indian Penal Code (IPC) were also applied in these cases.
A ‘child’ under POCSO is defined as any person below the age of 18 years. Acts of penetrative sexual assault committed on children are criminal offences under POCSO.
The purpose of defining ‘child’ under POCSO, and of the provision under Section 375 of the IPC (sexual intercourse, whether with or without her consent, is rape if she is under 18 years of age), is to safeguard children against penetrative sexual assault irrespective of their consent, which could even be unequivocal and voluntary.
Explainer
Himachal floods, a man-made disaster? (Page no. 8)
(GS Paper 3, Disaster Management)
Flash floods during this year’s monsoon season have caused unprecedented damage to both lives and assets in Himachal Pradesh. The death toll has crossed 150, and the estimated total loss amounts to ₹10,000 crore.
Although climate change is expected to have played a hand in causing the high precipitation leading to these flash floods, human induced disasters resulting from planned development have played a significant role in causing such colossal losses. In the last five years (before 2022), 1,550 people lost their lives and nearly 12,444 houses were damaged.
The IPCC (Intergovernmental Panel on Climate Change) VI report has clearly stated that the Himalayas and coastal regions of India will be the hardest hit by climate change.
In the Himalayas, there is a noticeable pattern of increased precipitation occurring in shorter periods of time. The India Meteorological Department data shows that the normal rainfall during this period is expected to be between 720mm and 750 mm.
However, in certain instances, it has exceeded 888 mm in 2010 and 926.9 mm in 2018. This year, the precipitation so far has been attributed to the combined effect of the south-west monsoon with western disturbances. The total rainfall from June to date was 511 mm.
Apart from climate change, anthropogenic factors have also significantly contributed to the disaster. The State’s development model initiated after it came into being in 1971 had been successful in transforming Himachal Pradesh into an exemplar of development for mountain States.
This model, known as the Dr. Parmar model (named after the founding Chief Minister, Dr. Y.S. Parmar), focused on exemplary land reforms, robust state-led investment in social welfare, and a strong emphasis on human resources.
These efforts resulted in Himachal Pradesh ranking second in social development indices. By the 1980s, electricity had reached every household, there was improved connectivity in remote areas through health care centres, many schools came up, there were major advancements in agriculture, and a shift towards the apple and off-season vegetable economies fostered both economic and social vibrancy.
Text
Full-reserve banking, where banks act solely as custodians of customers’ money (Page no. 9)
(GS Paper 3, Economy)
Full-reserve banking, also known as 100% reserve banking, refers to a system of banking where banks are not allowed to lend out money that they receive from customers in the form of demand deposits.
Demand deposits are deposits that customers can withdraw from the bank at any point in time without any prior notice.
So, under full-reserve banking, banks are mandated to hold all money that they receive as demand deposits from customers in their vaults at all times.
In this case, banks simply act as custodians to depositors’ money and may charge a fee from depositors for the service of safekeeping that they offer to the depositors.
This is in contrast to today’s banking system in which banks pay interest to customers on their demand deposits. In other words, under full-reserve banking, banks are expected to hold reserves backing 100% of their liabilities in the form of demand deposits.
This is to ensure that banks can successfully meet redemption demands from depositors, and thus avoid a run on the bank even if all depositors someday decide to come asking for their money at the same time.
Under a full-reserve banking system, banks can only lend money that they receive as time deposits from their customers. Time deposits are deposits that customers can withdraw from the bank only after a certain period of time that is agreed upon between the bank and its customers.
This arrangement gives banks the time to lend these deposits to borrowers at a certain interest rate, collect repayments from the borrowers, and finally repay depositors their money along with a certain amount of interest.
In the banking system that exists today, also known as the fractional-reserve banking system, banks predominantly do not lend money in the form of physical cash.
So the cash deposits that they receive from their customers, whether as demand deposits or as time deposits, mostly stay in their vaults.
Still, banks face the risk of a depositor run for a different reason — banks lend more money than the cash they have in their vaults.
This is made possible because most lending to various borrowers happens in the form of electronic money. A bank that wants to lend money can simply open a loan account in its books under the name of a certain borrower and credit the account with electronic money equivalent to the loan amount.
News
Lok Sabha passes contentious Biological Diversity Bill amid din (Page no. 11)
(GS Paper 3, Environment)
The Lok Sabha passed the Biological Diversity (Amendment) Bill, 2021 amid sloganeering by Opposition members demanding that Prime Minister Narendra Modi make a statement on the Manipur violence. The Bill aims to amend the Biological Diversity Act, 2002.
In the 20 years since the Act was brought into force by the Vajpayee government, we have seen that there were problems and it was necessary to address them,” Bhupendra Yadav, Minister for Environment and Forests and Climate Change, said.
To ensure that tribes and vulnerable communities benefit from the proceeds of medicinal forest products, these amendments were necessary. By decriminalising certain activities, we are encouraging Ayurveda as well as ease of doing business.”
The amended Bill was drafted in response to complaints by traditional Indian medicine practitioners, the seed sector, industry and researchers that the Act imposed a heavy “compliance burden”.
The Bill sought to exempt registered AYUSH medical practitioners and people accessing codified traditional knowledge, among others, from giving prior intimation to State biodiversity Boards to access biological resources for certain purposes.
Environmental organisations such as Legal Initiative for Forests and Environment (LIFE) have said that the amendments were made to “solely benefit” AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) firms and would pave the way for “bio piracy”.
An analysis by the Centre for Science and Environment and the Down To Earth magazine on how the Biodiversity Act was being practically implemented, showed serious shortcomings.
There was no data — barring in a few States — on the money received from companies and traders for access and benefit-sharing from use of traditional knowledge and resources.
World
Jill Biden marks U.S. reentry into UNESCO with a Paris ceremony (Page no. 13)
(GS Paper 2, International Organisation)
U.S. first lady Jill Biden attended a flag-raising ceremony at UNESCO in Paris, marking Washington’s official reentry into the U.N. agency after a controversial five-year hiatus.
The Stars and Stripes was hoisted up outside UNESCO’s headquarters with the Eiffel Tower on the skyline to rousing applause and a rendition of the national anthem.
Before the flag-raising, Ms. Biden made remarks about the importance of American leadership in preserving cultural heritage and empowering education and science across the globe.
The United States had announced its intention to rejoin UNESCO in June, and the organisation’s 193 member states earlier this month voted to approve the U.S. reentry.
The ceremony, which also featured a speech by UNESCO Director-General Audrey Azoulay, formally signified the U.S. becoming the 194th member — and flag proprietor — at the agency.
Business
IMF lifts India growth forecast a tad to 6.1% (Page no. 14)
(GS Paper 3, Environment)
The International Monetary Fund (IMF) raised its growth forecast for India slightly, expecting the economy to grow at 6.1% in the current fiscal year.
It raised its expectation by 0.2 percentage point from its April projection, reflecting “momentum from stronger-than-expected growth” in the fourth quarter as a result of stronger domestic investment.
The growth prediction is, however, much lower than the RBI’s projection of a 6.5% increase in GDP. India’s economic growth accelerated to 6.1% in the March quarter, boosted by government and private capital spending, while the country’s growth in the fiscal year ended on March 31, 2022, was 7.2%, one of the highest among the world’s largest economies.
The IMF also slightly raised its global growth estimates for this year given a more resilient start to the year than expected, but said the balance of risks to the outlook remained skewed to the downside.