Current Affairs 01/09/2015

Click here for Previous Posts on Current Affairs

Contents

• Extremism in India
• India – Australia relations
• Economic Integration
• Indian banks adopt Basel-III norms in a phased manner
• Deterrence is a myth, says Law Commission

Extremism in India

GS 1: Communalism

• The most essential component of democracy is “Right to Freedom of Speech”.
• But this ‘fundamental right’ is weakening day by day due to the growing power of extremist organizations (irrespective of religions!!).

Recent examples of strengthening extremism

• Killing of outspoken anti-superstition activists and rationalists like Narendra Dabholkar (2013), CPI activist Govind Pansare (2015), both in Maharashtra, and M.M. Kalburgi (2015) in Karnataka, growing support to Terror groups like ISIS etc..

Future consequences

• The constantly strengthening extremist organizations pose a great threat to “freedom of speech”, weakening the democratic setup.
• Society will turn from progressive to regressive and old days of superstition and irrationality will prosper.
• Clashes among fundamentalist groups will give every issue a caste or a religious colour and communal violence will reach new levels.
• Overall, democracy will collapse someday, and fascists will enslave the whole country!!

Solutions

• Every fringe group that profess violence must be banned.
• Strong laws must be framed to punish the culprits that instigate terror in society with ‘hate speeches’.
• Security agencies must be given enough power to crack down on extremist propaganda machines.
• Cyber security infrastructure must be strengthened to prevent extremist groups from influencing young minds. (In reality, none of the above is possible!!).
• Education system should be reformed to impart progressive attitude in future citizens.
• More jobs must be created to prevent youth from getting attracted towards extremism.

[You can present your view point in comments section]

India – Australia relations

GS 2: Bilateral

History

• Indian and Australian soldiers fought alongside in many instances during world wars.
• Most important one was the Burma campaign which prevented Japan from annexing India.
• Present co-operation in Indian Ocean
• Indo-Pacific is one of the most important sea routes that accounts for bulk of global oil shipments as well as cargo.
• India and Australia have jointly taken many steps to keep the route safe from pirates.
• Both the countries are also working to prevent any country from gaining undue control over the sea routes. (China!!)

Trade factor

• Indian investment in Australia was AU$10.9 billion in 2014, and Australian investment in India was AU$9.8 billion. And annual trade is worth nearly AU$16 billion.
• Both the countries wish to conclude Comprehensive Economic Cooperation Agreement by the end of 2015. This will help in strengthening bilateral trade.

Strategic co-operation

• First Bilateral Maritime Exercise — Exercise AUSINDEX will be conducted in September 2015. The exercise will take place in the coast of Visakhapatnam.

Indo-Pacific region – global strategic and economic centre of gravity

• By 2050, half of the world’s top 20 economies will be in the Indo-Pacific.
• India, China, Indonesia and Japan will be in the top five economies.

Economic Integration

GS 2: Regional and Global Groupings

Political Science Paper 2 - India and the World: Global Centers of Power: China

• Policies envisaged towards Economic Integration at various levels.

Policy	Targeted region
‘Silk Road Economic Belt’ ‘21st Century Maritime Silk Road’  ‘One Belt One Road’	Europe, Northern and Eastern Africa and South Asia.
‘Mausam’ and the ‘Spice ‘Route’	India, Northern and Eastern Africa and Europe.
Bangladesh-China-India-Myanmar (BCIM) corridor	India, Bangladesh, Myanmar and China
China-Pakistan Economic Corridor (CPEC)	China and Pakistan

• I will come up with a separate posts on each of the above topics.

Bangladesh-China-India-Myanmar (BCIM) corridor

The emerging regional cooperation agenda in South Asia, if pursued with sagacity and sincerity, promises to become a win-win game promoting development and security for all.

• A network of modern road, railway, port and communication and trade connectivities in a region stretching from Kolkata to Kunming in southern China.
• Influences the life 500 million people.

Benefits of BCIM to India

• The distance between Kolakata and cities of North-East India will be significantly reduced. [Instead of ‘Chicken’s Neck’, journey passes through Bangladesh]
• India’s north-eastern States have no access to the sea, even though Tripura’s southernmost tip is only 72 km from Chittagong, an international port in Bangladesh.
• Tourism will get a boost. Overall, BCIM can significantly improve the economy of North-East.
• BCIM is pivotal to India’s ‘Act East’ Policy.

Advantages to Bangladesh

• With natural gas reserves largest in the Asia-Pacific, Bangladesh could become one of the major energy exporting countries.
• Tourism too will get a boost.

China-Pakistan Economic Corridor (CPEC)

• During Mr. Xi’s visit to Islamabad in April 2015, China pledged to invest $46 billion on CPEC.
• CPEC’s main infrastructural corridor, running over 3,000 km, will connect Kashgar in China’s Xinjiang province to the Gwadar port in Pakistan’s Balochistan province.
• CPEC will no doubt boost Pakistan’s progress and prosperity.
• It is in India’s vital interest to see a stable, prosperous, progressive and democratic Pakistan.

India’s objection to CPEC

• Many in India have objected to CPEC passing through a part of Pakistan Occupied Kashmir (PoK), on the ground that it is disputed territory.

Alternative policy

• India can support CPEC and try to get border regions under it improving economic prospects.
• As a part of regional co-operation architecture, India should make efforts to extend Iran-Pakistan gas pipeline into India.
• CPEC-BCIM interconnection has the potential to immensely bolster India’s energy security both on the western and eastern flanks.

India-China convergence

• In a joint statement, the two sides welcomed the progress made in promoting cooperation under the framework of the BCIM
• Second, Beijing has expressed its willingness to work with India to explore the synergy between its own “21st Century Maritime Silk Road” plans and India’s “Mausam” project.
• Third, India has become an important founding member of the Beijing-promoted Asian Infrastructure Investment Bank, which can fund BCIM, CPEC and other projects.

Which of the following rulers constructed a road connecting what later became the capitals of four countries — Bangladesh, India, Pakistan and Afghanistan.

• Shershah Suri
• Add three more names here.

Indian banks adopt Basel-III norms in a phased manner

BASEL-III capital adequacy norms

• Basel III is the international regulatory framework for banks.
• Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector".

What are the objectives/aims of the Basel III measures?

• Basel 3 measures aim to:

1. improve the banking sector's ability to absorb shocks
2. improve risk management and governance
3. strengthen banks' transparency and disclosures.

• Thus we can say that Basel III guidelines are aimed at to improve the ability of banks to withstand periods of economic and financial stress

How Does Basel III Requirements Affect Indian Banks

• It is estimated that Indian banks will be required to rais Rs 6,00,000 crores in external capital in next nine years or so i.e. by 2020
• Expansion of capital to this extent will affect the returns on the equity of these banks specially public sector banks. 

Deterrence is a myth, says Law Commission

• The Law Commission of India recommended abolition of the death penalty for all but terror-related crimes and waging war against the country.

Observations of Law Commission

• The administration of the death penalty even within the restrictive environment of ‘rarest of rare’ doctrine is constitutionally unsustainable.
• The continued administration of the death penalty raised issues of miscarriage of justice, errors as well as the plight of the poor and disenfranchised in the criminal justice system.
• Deterrence was a myth, and retribution could not be reduced to vengeance.
• In addition to the principle of reformation for the convict, the report recommended greater rehabilitative and restorative justice for the victims of crime.

About Unknown

PMF IAS. Helping aspirant