Current Affairs Of 30-March-2017

1. 9th World Environmental Education Congress to be held in Vancouver

9th World Environmental Education Congress will take place from September 9-15, 2017 in Vancouver, BC, Canada.

The World Environmental Education Congress (WEEC) is an international congress addressing education for environment and sustainability.

WEEC 2017 is the 9th congress and will feature the theme of Culture/Environment: Weaving New Connections.

Points to Remember

• Theme of 9th WEEC congress is “Culture/Environment: Weaving New Connections”.
• Ottawa is the Capital of Canada.
• Justin Trudeau is the Prime Minister of Canada.
• Dollar is the Currency of Canada.

2. India becomes Net Exporter of Electricity for the first Time

As per Central Electricity Authority, the Designated Authority of Government of India for Cross Border Trade of Electricity, 1st time India has turned around from a net importer of electricity to Net Exporter of electricity.

During the current year 2016-17 (April to February 2017), India has exported around 5,798 Million Units to Nepal, Bangladesh and Myanmar which is 213 Million units more than the import of around 5,585 Million units from Bhutan.

Export to Nepal and Bangladesh increased 2.5 and 2.8 times respectively in last three years.

Ever since the cross border trade of electricity started in mid-Eighties, India has been importing power from Bhutan and marginally exporting to Nepal in radial mode at 33 kV and 132 kV from Bihar and Uttar Pradesh.

On an average Bhutan has been supplying around 5,000- 5500 Million units to India.

3. Arun Jaitley clears major military reforms proposal

Union finance minister Arun Jaitley, who got the additional charge of the defence ministry a week ago, has given the green light to widespread military reforms.

The reforms are based on a report by the Lt General (retired) DB Shekatkar committee, which made recommendations on enhancing the combat potential of India’s three armed forces.

The committee set up by then defence minister Manohar Parrikar in 2015 submitted its report on December 21 last year.

Points to Remember

• Arun Jaitely was given additional of Defence Ministry as Manohar Parrikar resigned from the post to swear in as Goa Chief Minister.
• DB Shekatkar Committee was appointed by the government to enhance the combat potential of the armed forces and re-balancing defence expenditure.

4. Smart India Hackathon 2017 Grand Finale to be held in Nagpur

The Ministry of Road transport and Highways will host the Grand Finale of the Smart India Hackathon 2017 at Nagpur on 1st and 2nd April, 2017.

Nagpur is one among 26 cities where the event will be held simultaneously, with the support and coordination of 29 Government departments.

The Smart India Hackathon 2017 was launched on Nov 9, 2016 in New Delhi by the Ministry of Human Resources Development.

It aims to  harnesses the creativity and  expertise of students, build funnel for ‘Startup India, Standup India’ campaigns, crowd source solutions for improving governance and quality of life and provide opportunity to citizens to contribute innovative solutions for nation building.  

Points to Remember

• Smart India Hackathon was was launched on Nov 9, 2016 in New Delhi by the Ministry of HRD.
• It is being organised with the support of 29 Government departments.
• It is to be held in 26 cities.

5. SC bans sale, registration of BS-III vehicles from April 1

Vehicles that are not BS-IV compliant, whether two-wheeler, three-wheeler, four-wheeler or commercial vehicles will not be sold in India by any manufacturer or dealer on and from April 1,” a Bench of Justices Madan B Lokur and Deepak Gupta ordered.

The health of the citizen is more important than the commercial interests of the automobile industry, the apex court observed while banning sale and registration of BS-III vehicles from April 1.

The Court further prohibited all the vehicle registering authorities from registering BS-III vehicles on and from April 1 under the Motor Vehicles Act, 1988.

Points to Remember

• Bharat stage emission standards' are emission standards instituted by the Government of India to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. 
• All new vehicles manufactured after the implementation of the norms have to be compliant with the regulations.
• BS IV will be implemented from April 1, 2017.

6. Tendulkar exited from Musafir.com

Sachin Tendulkar has exited travel portal Musafir.com as an investor after a period of five years.

Post his retirement in 2013, the master blaster had opted for a sweat equity of 7.5 per cent in exchange for appearing in the firm’s ads.

He was being paid Rs1 crore every year for the past five years and was assured a minimum of Rs 20 crore at the time of exit.

7. SBI launched ‘SBI Card Unnati’

SBI Card launched a unique credit card ‘SBI Card Unnati’ targeted at all SBI customers, including Jan Dhan account-holders across the country.

Tailored for new users of credit cards — those who do not have a credit history — ‘Unnati' would have no annual fees for the initial four years and will be offered through the 20,000-plus SBI branches.

Any SBI customer with a balance of at least Rs 25,000 in his/her savings account with the bank would be eligible for the Unnati credit card.

Points to Remember

• State bank of India was founded in 1955.
• Earlier it was known as Imperial Bank of India and Bank of Calcutta.
• Arundhati Bhattacharya is the Chairperson of SBI.

8. Axis Bank ties up with Wells Fargo for Inward remittances

Axis Bank has tied up with Wells Fargo, the third largest American bank by assets, to offer real time remittances from the Indian diaspora to their relatives back home.

Under the arrangement between the two banks, any member of the Indian diaspora with an account with the Wells Fargo will be able to transfer money to their relatives back home and there will be no transaction fee applicable to the money transfers from USA.

But the relative or the beneficiary in India will need to have an account with Axis Bank.

Points to Remember

• Axis Bank Ltd is the third largest private-sector bank in India.
• Axis Bank was founded in 1993 as UTI bank.
• Axis Bank headquarters is in Mumbai. Shikha Sharma is its MD & CEO while Sanjiv Misra is the Chairman.
• Wells Fargo & Company is an American international banking and financial services holding company headquartered in San Francisco, California.
• Wells Fargo was founded in 1852. It is the third largest American bank by assets.

9. Kotak Mahindra Bank launches scheme to double customers to 16 million

Kotak Mahindra Bank has launched a new zero balance digital banking account free of cost which is linked to Aadhaar system.

Kotak expects to double its number of customers through this new account, called 811 signifying the date prime minister Narendra Modi announced demonetisation of high value currency notes.

The 811 account can be opened through the mobile phone using the Aadhaar one time password authentication and a income tax pan number, the bank said. It will offer 6% interest per annum.

Points to Remember

• Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai.
• In February 2003, Reserve Bank of India (RBI) gave the licence to Kotak Mahindra bank.
• 811-Account is launched by Kotak Mahindra Bank.
• Kotak Mahindra Bank has recently acquired ING Vysya Bank.

10. U.N. picks former U.S. state governor to run World Food Programme

United Nations chief Antonio Guterres has appointed former South Carolina Governor David Beasley to run the Rome-based World Food Programme (WFP).

Beasley will replace another American, Ertharin Cousin, who has been the WFP executive director since 2012.

America was the top contributor to WFP in 2016 with $2 billion, a third of the agency's budget.

Points to Remember

• World Food Programme (WFP) is the food-assistance branch of the United Nations and the world's largest humanitarian organization addressing hunger and promoting food security.
• WFP was founded in 1961.
• Headquarters of WFP is in Rome, Italy.
• Antonio Guterres is the 9th Secretary-General of the United Nations.
• He is from portugal and has also served as the 114th Prime Minister of Portugal.

11. Nomura names Prabhat Awasthi as new India Head

Global investment bank Nomura has appointed Prabhat Awasthi as its new India head.

Awasthi, who is currently Head of Equities, India, will replace Vikas Sharma as the country head from April 1.

Vikas Sharma has been elevated to Head of Asia Ex-Japan from April 1.

12. Sunaina Singh Appointed Vice Chancellor of Nalanda University

President Pranab Mukherjee has appointed Sunaina Singh, currently head of the English and Foreign Languages University (EFLU) in Hyderabad, as the new vice chancellor of Nalanda University.

As per rules, the president has to choose the vice-chancellor from a group of at least three names forwarded by the university’s governing board. 

Earlier on January 27, President Mukherjee appointed computer scientist and former IIT Delhi board chairman, Vijay P Bhatkar as the university’s chancellor.

Points to Remember

• Nalanda University (also known as Nalanda International University) is located in Rajgir, near Nalanda, Bihar.
• Vijay P Bhatkar is the Chancellor of Nalanda University.
• 

13. Army Chief Bipin Rawat Conferred With Honorary Military Rank By Nepal

Indian Army chief General Bipin Rawat is in Kathmandu on a four-day official visit to Nepal during which he was conferred with the honorary rank of general of the Nepal Army.

He is scheduled to visit Pashupati Nath temple, Manag and Muktinath temple.

General Rawat's trip to Nepal comes days after Chinese Defence Minister Chang Wanquan visited the country.

Points to Remember

• Chief of Staff of Nepal Army is Purna Chandra Thapa.
• General Rawat became the 27th chief of the Indian Army on December 31.
• Kathmandu is the Capital of Nepal.
• Bidhya Devi Bhandari is the President of Nepal.
• Pushpa Kamal Dahal is the Prime Minister of Nepal.
• Rupee is the Currency of Nepal.

14. Indian-origin Priti Patel be awarded Pravasi Bharatiya Samman award

Priti Patel, the UK Government's Secretary of State for International Development and first ever UK-India diaspora Champion, has been awarded India's highest honour for members of the Indian diaspora.

The Pravasi Bharatiya Samman award was granted to Patel by the President of India, Pranab Mukherjee, for her exceptional contribution to national and international politics, her role in strengthening UK-India relations, and for supporting the Indian diaspora in the UK.

The award was presented to Patel by the Indian High Commissioner to the UK, Mr Y K Sinha, at a special ceremony at India House in London.

15. ISKCON's Govardhan Eco Village gets 'Water' award

The Govardhan Eco Village of International Society for Krishna Consciousness (ISKCON) at Wada taluka near Mumbai, has received an award instituted by Water Digest, a news portal on water management.

The Goverdhan eco village received the award in the "Best Water NGO-Water Education" category.

To commemorate the 'World Water Day 2017', Water Digest, in association with UNESCO, Ministry of Water Resources & ASSOCHAM, had recently announced the 11th Water Digest Water Awards which are given annually to organisations, industry members and NGOs.

16. Tamil Nadu beat India 'B' to win Deodhar Trophy

Dinesh Karthik cracked 126 as Tamil Nadu defeated India B by 42 runs in the final to clinch the Deodhar Trophy 50-overs cricket tournament at the ACA-VDCA stadium in Visakhapatnam.

The wicketkeeper-batsman shared a 136-run stand with Narayan Jagadeesan (55) for the fourth wicket which drove Tamil Nadu to 303/9 in 50 overs.

India B were bowled out for 261 in 46.1 overs as Tamil Nadu completed a domestic double of winning the Deodhar Trophy as well as the Vijay Hazare Trophy.

Points to Remember

• The Deodhar Trophy is a List A cricket competition in Indian domestic cricket. It is named after Prof. D. B. Deodhar (known as the Grand Old Man of Indian cricket). Tamilnadu is the winner of 2017 edition.
• The Vijay Hazare Trophy is a limited-over cricket domestic competition involving state teams. It is named after the famous Indian cricketer Vijay Hazare. Tamilnadu is the winner of 2017 edition.

17. Mohammad Irfan banned for a year

 

Pakistan pacer Mohammad Irfan was today slapped with a one-year ban and fined $ 1,000 after he admitted to have failed in reporting a spot-fixing approach by bookmakers during the Pakistan Super League.

Irfan had earlier been suspended on March 14 after he appeared before the PCB’s Anti-Corruption Unit after the PSL final in Lahore.

He played four Tests and 20 Twenty20 internationals along with 60 one-day internationals, where he has taken 83 wickets at an average of 30.71

Part 2 :

Hindu New Year

Hindu New Year is being welcomed in different parts of the country today with traditional festivities and celebrations.

The Chaitra Sukladi, Ugadi, Gudi Padava, Navareh, Navroz and Chetti Chand are the same festivals in different names, marking the occasion.

Various festivals celebrated today:

• Andhra Pradesh and Telangana: Ugadi.
• Karnataka: Yugadi /Ugadi.
• Maharashtra: Gudi Padwa.
• Rajasthan:
• Sindhis: Cheti Chand.
• Manipuris: Sajibu Cheiraoba.
• Kashmir:
• Hindus of Bali and Indonesia also celebrate their new year on the same day as Nyepi.

Sources: pib.

6 Crore Soil Health Cards Distributed

The government recently informed the Lok Sabha that so far against the target of 14 crore cards distribution, 6 crore cards have been distributed and remaining cards are under printing.

• Adequate funds have been released to all States, funds amounting to Rs 23.89 crore, Rs 96.44 crore and Rs 126.47 crore have been released during 2014-15, 2015-16 and 2016-17 respectively under the scheme.

About the Soil Health Card Scheme:

It is a scheme to provide every farmer a Soil Health Card in a Mission mode. It is a scheme under which the Central Government provides assistance to State Governments for setting up Soil Testing Laboratories for issuing Soil Health Cards to farmers.

Implementation:

• The scheme will be implemented in all states to promote soil testing services, issue of soil health cards and development of nutrient management practices.
• Under the scheme, State Governments should adopt innovative practices like involvement of agricultural students, NGOs and private sector in soil testing, determining average soil health of villages, etc., to issue Soil Health Cards.
• Under the scheme, the state governments are also required to prepare yearly action plan on the issue and the cost will be shared in the ratio of 75:25 between the Centre and states.

What are soil health cards?

• A Soil Health Card is used to assess the current status of soil health and, when used over time, to determine changes in soil health that are affected by land management.
• A Soil Health Card displays soil health indicators and associated descriptive terms. The indicators are typically based on farmers’ practical experience and knowledge of local natural resources.
• The card lists soil health indicators that can be assessed without the aid of technical or laboratory equipment.
• The card, which will carry crop-wise recommendation of fertilisers required for farm lands, will help farmers identify health of soil and judiciously use soil nutrients.

Sources: pib.

Centre may expand social security net

The centre may consider extending social security benefits to volunteers under anganwadi, mid-day meal and Accredited Social Health Activists (Asha) schemes.

• A proposal in this regard was recently made by the EPFO to the Labour ministry. It proposed a lower contributory rate of 10% of income towards the Employees’ Provident Fund be allowed for scheme workers as against 12% contribution stipulated for the organised workers.

Background:

According to estimates, there are 14 lakh Anganwadi workers, 12 lakh Anganwadi helpers, 25.50 lakh mid-day meal workers in the country. Providing social security coverage to the unorganised workers has been one of the key demands of the central trade unions. There is no mandatory social security cover for such scheme workers at present.

Way ahead:

In this regard, the Centre can issue a notification to cover any class of establishments with a lower contributory rate under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

About EPFO:

The Employees’ Provident Fund Organisation, a statutory body, is one of the largest social security organizations in India in terms of volume of financial transactions undertaken and number of covered beneficiaries. It works under the overall aegis of the Ministry of Labour and Employment. 

Sources: the hindu.

Sands of Saturn’s moon Titan are electrically charged

The particles that cover the surface of Saturn’s largest moon, Titan, are “electrically charged”, show results of an experiment.

Significance of this discovery:

This discovery may help explain an odd phenomenon — prevailing winds on Titan blow from east to west across the moon’s surface, but sandy dunes nearly 300 feet tall seem to form in the opposite direction.

Background:

Experiments suggest the particles that cover the surface of Saturn’s moon, Titan, are ‘electrically charged.’ When the wind blows hard enough, Titan’s non-silicate granules get kicked up and start to hop in a motion. As they collide, they become frictionally charged, like a balloon rubbing against your hair, and clump together in a way not observed for sand dune grains on Earth — they become resistant to further motion.

They maintain that charge for days or months at a time and attach to other hydrocarbon substances, much like packing peanuts used in shipping boxes here on Earth.

About Titan:

• Titan is the largest moon of Saturn. It is the only moon known to have a dense atmosphere, and the only object in space other than Earth where clear evidence of stable bodies of surface liquid has been found.
• Titan is the sixth ellipsoidal moon from Saturn. Frequently described as a planet-like moon, Titan is 50% larger than Earth’s Moon, and it is 80% more massive.
• It is the second-largest moon in the Solar System, after Jupiter’s moon Ganymede, and is larger than the smallest planet, Mercury, but only 40% as massive.
• Titan’s atmosphere is composed of 98% nitrogen. Minor components lead to the formation of methane and ethane clouds and nitrogen-rich organic smog.
• With its liquids (both surface and subsurface) and robust nitrogen atmosphere, Titan’s methane cycle is analogous to Earth’s water cycle, at the much lower temperature of about 94 K (−179.2 °C).

Sources: the hindu.

India’s temperature rose by 0.60 degree over last 110 years’

According to the Indian Meteorological Department (IMD), in line with rising temperatures across the globe, all India mean temperatures have risen nearly 0.60 degree Celsius over the last 110 years. Further IMD studies have highlighted that extreme events like heat waves have risen in the last 30 years.

Global scenario:

As per the fifth Assessment Report (AR5) of Intergovernmental Panel on Climate Change (IPCC) published in 2014, globally averaged combined land and ocean surface temperature has risen by 0.85 degree Celsius over the period 1880 to 2012.

Many extreme weather and climate events like heat waves, heavy precipitation and tropical cyclones have been observed since about 1950.

Efforts by government to combat climate change:

The government has launched the National Action Plan on Climate Change (NAPCC) in June, 2008 to deal with climate change and related issues.

• NAPCC comprises of eight missions in specific areas of solar energy, enhanced energy efficiency, habitat, water, sustaining Himalayan ecosystems, forestry, agriculture and strategic knowledge for climate change.
• These missions address the issues relating to mitigation of greenhouse gases and adaptation to the adverse impacts of climate change on environment, forests, habitat, water resources and agriculture.
• All states and UTs have also been requested to prepare State Action Plan on Climate Change (SAPCC) in line with the objectives of the NAPCC highlighting state-specific issues relating to climate change. So far, 32 states and UTs have prepared their SAPCC.

Sources: the hindu.

Planetary waves, first found on Earth, are discovered on Sun

The same kind of large-scale planetary waves that meander through the atmosphere high above Earth’s surface may also exist on the Sun, according to a new study led by a scientist at the National Center for Atmospheric Research (NCAR).

Key facts:

• Just as the large-scale waves that form on Earth, known as Rossby waves, influence local weather patterns, the waves discovered on the Sun may be intimately tied to solar activity, including the formation of sunspots, active regions, and the eruption of solar flares.
• On Earth, Rossby waves are associated with the path of the jet stream and the formation of low- and high-pressure systems, which in turn influence local weather events. The waves form in rotating fluids—in the atmosphere and in the oceans. Because the Sun is also rotating, and because it’s made largely of plasma that acts, in some ways, like a vast magnetized ocean, Rossby-like waves may exist.
• The discovery of magnetized Rossby waves on the Sun offers the tantalizing possibility that we can predict space weather much further in advance.

About the discovery:

Scientists lacked the tools to distinguish this wave pattern until recently. It is because, unlike Earth, which is scrutinized at numerous angles by satellites in space, scientists historically have been able to study the Sun from only one viewpoint: as seen from the direction of Earth.

But for a brief period, from 2011 to 2014, scientists had the unprecedented opportunity to see the Sun’s entire atmosphere at once. During that time, observations from NASA’s Solar Dynamics Observatory (SDO), which sits between the Sun and the Earth, were supplemented by measurements from NASA’s Solar Terrestrial Relations Observatory (STEREO) mission, which included two spacecraft orbiting the Sun.

Collectively, the three observatories provided a 360-degree view of the Sun until contact was lost with one of the STEREO spacecraft in 2014. The data collected during the window of full solar coverage was studied to see if the large-scale wave patterns might emerge.

Sources: toi.

Facts for Prelims:

INLCU L51:

• INLCU L51 was commissioned recently into the Indian Navy.
• It is First of the Eight ships of the LCU Mk IV Class.
• It has been built by M/s Garden Reach Ship Builders & Engineers Ltd, Kolkata.
• The ship has been built to assist in amphibious operations by carrying out beaching operations and has an endurance of 1500 nm.
• The ship will also play a key role in carrying out maritime surveillance of Andaman & Nicobar Islands for preventing anti-poaching, illegal fishing, drug trafficking, human trafficking, poaching and other illegal activities.
• It will also enhance the capabilities of the Andaman and Nicobar Command in Humanitarian Assistance and Disaster Relief (HADR) operations.

Mining banned for four months in Uttarakhand:   

• The Uttarakhand High Court has ordered ‘complete’ ban on mining activities in the State for four months.
• The court has ordered that a high-power committee be constituted to assess the expanse of river bed mining in the State and submit a report. The committee has been directed to submit a report within four months.

Haryana government to set up Centre for flowers in Jhajjar to promote floriculture: 

A Centre of Excellence for Flowers is being set up with the assistance of Netherlands in district Jhajjar of Haryana to encourage the farmers to take up floriculture.

New secure pound coin goes into circulation in UK: 

• A new 12-sided one-pound coin described by the UK’s Royal Mint as the “most secure coin in the world” has been put into circulation across the UK.
• There is material inside the coin itself which can be detected when electronically scanned by coin-counting or payment machines, making it impossible to counterfeit.
• Other security features of the coin include an image that works like a hologram and micro-sized lettering inside both rims.

Part : 3 :

ECONOMY

TOPIC: General Studies 3

• Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
• Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth
• Investment models.

Bilateral Investment Treaties and concerns

Introduction

In a globalised economy foreign investment and multilateral agreements are crucial in today’s economic architecture. Especially in a time period where protectionism is on the rise and with events like Brexit and new government in USA concern have risen for developing and progressive economies.

Issue:

With several bilateral investment treaties lapsing on March 31, FDI inflows could take a hit.

By this April 1, the government would have taken India back to the pre-1991 inward-looking economic era as far as India’s approach to bilateral investment treaties (BITs) is concerned.

History:

Till the early 1990s, India didn’t sign BITs because foreign investment was not considered significant in a statist India.

• The absence of BITs meant foreign investors couldn’t use international arbitration to hold India accountable under international law for any detrimental regulatory overreach.
  • So, when the Foreign Exchange Regulation Act that came into force in 1974 required a foreign company to convert foreign equities into minority holdings of 40%, many helpless foreign companies like Coca-Cola, IBM, Kodak and Mobil either quit India or applied to the government to do so.
• In 1991, India lifted its self-imposed economic exile by starting the process of experimenting with the market and wooing foreign investors.
  • As part of this image makeover, India started signing BITs from the early 1990s.
  • The signing spree continued unabated till 2010 with India inking BITs with 83 countries.
  • However, rattled by many BIT claims brought by foreign investors from 2011 onwards, last year, India unilaterally issued BIT termination notices to 58-member countries.
  • Reportedly, these BITs would lapse on March 31 after the expiry of the mandatory one-year notice period.
• Although the terminated BITs will continue to be relevant for existing foreign investment in India and Indian investment in these countries for the next 10-15 years due to survival clauses, any new investment, either from these 58 countries to India or vice versa, shall not enjoy BIT protection as was the case before 1991.

BITs and foreign investment

Some argue that foreign investment inflows to India are not dependent on BITs. Two studies question this wisdom.

• The first, examines the impact of BITs on FDI inflows in 15 Asian developing countries including India from 1980-81 to 1999-2000.
  • The study shows that BITs signed by these 15 countries with developed countries had a stronger and significant impact on FDI inflows in these 15 countries.
  • However, BITs signed by these 15 countries with developing countries didn’t have much impact on foreign investment inflows.
  • Till the year 2000, out of the 14 BITs India signed, nine were with developed countries.
  • Therefore, BITs had a significant impact on FDI inflows in India, which rose from $393 million in 1992-93 to $4,029 million in 2000-01.
• The second study, a very recent one considers the impact of BITs on FDI inflows in India from 2001-2012.
  • This study also demonstrates that BITs signed by India contributed to rising FDI inflows in the said period by providing protection and commitment to foreign investors.
  • The significance of BITs in attracting investment was also emphasised by Canada’s Trade Minister during his recent visit to India.
  • The Minister said that absence of an India-Canada BIT is restricting the scope and volume of investments that Canadian pension funds can make in India.
• It is nobody’s case that BITs alone determines FDI inflows-
  • But they do play a critical role in mitigating regulatory risks
  • Thus encouraging investors to invest — critical for India, which has a dubious distinction of not being a friendly place to do business in.

The OECD classifies India among countries that impose heavy regulatory restrictions on foreign investment.

• Recent instances of Central government meddling with private contracts between Indian seed companies and Monsanto; threatening Amazon, the e-retailer company, with visa-cancellation of its staff if it didn’t stop selling a product in a third country that allegedly hurts Indian sensibilities; overnight withdrawal of 86% of legal tender from circulation without considering its impact on businesses, have all strengthened this image.

Few takers for the Model BIT

To be fair to the government, it wants to sign new BITs with all these 58 countries based on the new Model BIT adopted in 2016.

• However, most developed countries have not shown much interest in the Model BIT because instead of striking a balance between investment protection and state’s right to regulate, it tilts towards the latter.
• There are fundamental differences between the Indian approach and the Canadian and European approach to protection of foreign investment, as reflected in the investment chapter of the recently signed EU-Canada Comprehensive Economic and Trade Agreement (CETA).
  • First, the EU-Canada CETA contains a ‘most favoured nation’ (MFN) provision — a cornerstone of non-discrimination in international economic relations — which is missing in the Indian Model BIT.
  • Second, the Indian Model BIT, unlike the EU-Canada CETA, mandatorily requires foreign investors to litigate in domestic courts for five years before pursuing a claim under international law.
  • Third, the EU-Canada CETA provides protection to foreign investors in situations where the state goes back on the concrete representations it made to lure an investor, which the investor relied upon while investing.
• The Indian Model BIT is silent on this, thus exposing foreign investors to regulatory risks. Fourth, the EU-Canada CETA talks of pursuing the establishment of a multilateral investment court to settle investment disputes. Will India support such a proposal?

Conclusion:

It is important that government takes the global best practices adopts and adapts to Indian needs. But BITs being crucial tool w.r.t investment we need to ensure that global and holistic acceptance is sought for increasing the coverage and spread.

Connecting the dots:

• Critically analyse the need to renegotiate the BITs in a time bound manner and the framework needed to be worked out.

NATIONAL 

TOPIC: General Studies 2

• Role of civil services in a democracy
• Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Lateral movement in civil services

• Recently, the central government is considering stepping up lateral movement of experienced officers from various Central and State services at the level of joint secretary.
• Such step is taken to fill up the shortfall of experienced IAS officers eligible to be appointed to senior positions.
• This move is expected to give opportunity to those in specialised services to move into mainstream administration and bring their domain expertise in specific issues into policymaking and governance.
• It is also expected to reverse some of the appropriation of top positions by the IAS lobby from non-IAS services over the last few decades.

Lateral movement from private sector

• However, simply increasing the numbers is not important. Capability and skills, particularly in the middle-to-top strata of the bureaucracy have to be improved urgently.
• In US and UK, direct hires of experienced professionals, particularly from the private sector, is also required, if governance delivery is to meet the needs of a complex and rapidly evolving economy.
• But attracting lateral movement from other services to fill vacancies in the bureaucracy is far easier than attracting talent from the private sector.
• This is not for the reason that remuneration is not competitive, but also because of the vast difference in working conditions.
• Skilled professionals expect a certain degree of operational freedom which is difficult with current bureaucratic style of functioning as well as constant political interference.
• Government of India has, in the past, also inducted outside talent from time to time into the higher tiers of government usually in advisory positions but occasionally even in key administrative assignments. For example the Chief Economic Advisor, Government of India is traditionally a lateral entrant who is below 45 years and an eminent economist.

The long term solution

• Lateral movement between different cadres at centre and state this time to fill the vacancies is a short term fix.
• To fill up the managerial positions at top bureaucratic levels, there is a need of a policy that actively seeks the best talent for various positions, whether such talent is to be found within or outside the current bureaucratic system is government’s prerogative.
• The government could define either a certain number or certain specified positions in the administrative structure to be filled by lateral appointments. These should be advertised at the highest level to get the best resources.
• The government must also put into place a system that reviews and suitably rewards outstanding performance of such appointees to attract more such talent.
• A larger pool with diversity of experiences and domain expertise can ensure that policies have a better connect with ground realities, and get implemented more efficiently.
• India can learn from Singapore which has close association of public and private sector. Very high quality individuals from the private sector routinely join the public sector and excellent civil servants move easily into the private sector. This kind of permeability brings the two sectors very close to each other:
  • Public servants as they join the private sector, have a very good idea about the rules, regulations and compliance issues and have a very good bird’s eyeview of the entire industry be it manufacturing, finance or tourism.
  • Similarly, those who join the public sector from the private sector, bring with them the virtues of efficiency and work ethics.
• Thus, it is a very healthy mix to do administration. Further, such lateral movement allows academics to easily join the public sector and contribute significantly in the areas of public health and economics.

The problems

• The idea of lateral recruitment is good as long as it concerns highly technical aspects of governance like Department of Information technology, cybercrime cells, trade and commerce etc.
• This is because since most of the bureaucrats are generalist they are less adept in handling technical areas required for updating and maintaining quickly and ever-growing areas of information technology and related issues.
• For areas like agriculture, power and ministries related to urban supply and socio development, expertise and knowledge of bureaucrats are normally at par with lateral knowledge.
• There is a possibility that political interference may lead to favouritism in making lateral appointments. Here, it affects the work efficiency of the department as well as promotes into nepotism in other departments too.
• Lateral entry only at top level policy making positions may have little impact on field level implementation, given the multiple links in the chain of command from the Union Government to a rural village.

Efforts till now

• The 10th Report of 2nd ARC titled, “Refurbishing of Personnel Administration – Scaling New Heights” emphasises that 10% of posts at joint secretary level in Government of India should be open to lateral entry from state government services or private sector or academics etc.
• The present government has asked for formal comments from cadre controlling authorities to present their views and suggestions on the matter.
• In the last five years, the number of consultants in government departments has gone up manifold. But they are being recruited at junior level, thereby not allowing them to take key decisions.
• Also, there has been huge emphasis on inculcating corporate sector culture in the government after the new government was formed.

Bloggerer’s views

It is high time that bureaucracy and political class recognise that the time is up for colonial style of governance to govern India as it is no longer effective or efficient. The concept of unified civil services needs a relook which promotes one-size-fits-all bureaucracy, recruited through a dated competitive examination system. Even the ARC felt that lateral entry as done in the past on an ad hoc basis can hardly be considered a suitable model of manpower planning since the present incumbents in government departments tend to resist entry of outside talent and the whole process remains personality driven and inchoate. There is therefore a need to institutionalize the process of induction of outside talent into the government. The lateral movement system opens up choice of top civil service appointees from different sources and also makes it possible for lateral entrants to bring in their own work culture which enables renewal and adaptiveness in government organizations.

Connecting the dots:

• What is lateral entry in civil services? Critically examine its effect on functioning of bureaucracy and overall governance of the country.