PM IAS OCT 13 NEWS ANALYSIS

Prime Minister’s Development Initiative for North East Region (PM-DevINE)

In News

• The Union Cabinet has recently approved the Prime Minister’s Development Initiative for the North East Region (PM-DevINE).

More about the news

• About:
  • Prime Minister’s Development Initiative for North East Region (PM-DevINE) is a new scheme for the Northeastern states which was announced in the Union Budget. 
  • The scheme will be operational for the remaining four years of the 15th Finance Commission, from 2022-23 to 2025-26, and will have an outlay of Rs 6,600 crore.
• PM-DevINE will target: 
  • The creation of infrastructure, 
  • Support industries, 
  • Social development projects and 
  • Create livelihood activities for the youth and women, with a focus on job creation. 
  • These projects will include basic infrastructure in all primary healthcare centres and government schools.
• Funding and implementation:
  • It is a central sector scheme with 100% central funding.
  • PM-DevINE will be implemented by the Ministry of Development of North Eastern Region (DoNER), through the North Eastern Council or central ministries and agencies.
• Time constraints:
  • Efforts will be made to complete the PM-DevINE projects by 2025-26 so that there are no committed liabilities beyond this year.
• Significance of bringing the scheme:
  • The parameters of N-E states in respect of Basic Minimum Services (BMS) are well below the national average and there are critical development gaps as per the NER District Sustainable Development Goals (SDG) Index 2021-22 prepared by NITI Aayog, UNDP and MDoNER.

Northeast IndiaNortheast Region or The ‘seven sisters’ of Northeast India comprise Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.Sikkim is also a part of the Northeast but is not included in the Seven Sisters because while the other seven states are contiguous, Sikkim is sort of a neighbour, divided by the Siliguri Corridor.Sikkim is also referred to as the ‘Brother’ of the Seven Sisters.

Challenges to the Development of the NER

• Difficult Terrain: 
  • North Eastern Region is majorly a mountainous region, except the state of Assam, which has plains as a major part of its area. This makes it difficult for the government schemes to be implemented in the area, because of the problem of access to the remote areas.
• Backward Areas: 
  • Unlike the mainland, people of the North East Region are still content with a simple lifestyle and lack of technology in their day-to-day lives. The standard of living continues to be low, due to the absence of high-income generation opportunities. 
  • For e.g., the farmers practice primitive methods of agriculture, with the tribals still practising Shifting agriculture in the country.
• Connectivity: 
  • As stated above, the North Eastern Region is a landlocked region. Therefore, it has limited access to the sea. Similarly, it has a difficult terrain that renders expressways and wider roads infeasible. 
  • This is complicated by the absence of railway infrastructure in the region.
• Lack of Physical and Social Infrastructure: 
  • NER has complained of step motherly treatment from the mainland, especially in the context of development projects in the region. 
• Insurgencies: 
  • One of the major regions for the lack of development in the region is the lack of political and social stability in the country. The artificial boundaries of the British legacy have not been fully accepted by the tribal communities of the region, which is compounded by political opportunism.
    • The region is still caught in the vicious circle of violence due to political reasons and the diversion of youth towards the insurgent groups, which leads to a lack of skill enhancement and consequent lack of opportunity.

Government initiatives for the development of NER

• North East Special Infrastructure Development Scheme (NESIDS): 
  • The aim of the scheme is to enhance the physical infrastructure related to power, connectivity and water supply, and social infrastructure in the form of health infrastructure. It is a Central Sector Scheme.
• Northeast Desk: 
  • Under the Department for Promotion of Industry and Internal Trade, a dedicated Northeast Desk has been set up within Invest India,  which supports the Northeast  States in their outreach activities to the investors as well as in facilitating and handholding select companies.  
• NITI Forum for North East:
  • In collaboration with the NITI Aayog, the ‘NITI Forum for North East’ constituted for accelerated, inclusive and sustainable development in the North East Region has identified 5 focus sectors, viz. Tea, Tourism, Bamboo, Dairy and Pisciculture.
• Mission Organic Value Chain Development (MOVCD-NER): 
  • The program has been implemented in the North-Eastern states since 2017. The aim of the mission is to promote organic farming in the region. It seeks to replace traditional subsistence farming with a cluster-based approach. 
• Sub Mission on Seeds and Planting Material (SMSP): 
  • It aims to increase the availability of seeds of the High Yielding Varieties of crops. The overall objective is to double farmers’ income by 2022, as envisioned by the Government. The scheme is run alongside other support programs like Krishi Vigyan Kendras (KVKs), integrated farming systems etc.
• Connectivity Projects: 
  • To create alternate routes to the region and decrease its dependence on the Chicken’s Neck, the Indian government has planned additional routes through South East Asia like Kaladan Multi-Modal Transit Project, Bangladesh-China-India-Myanmar (BCIM) Corridor, etc.
  • India’s Look-East connectivity projects connect Northeast India to East Asia and ASEAN.
• Creation of separate ministry for the region:
  • The Ministry of Development of North Eastern Region is a Government of India ministry, established in September 2001.
  • It functions as the nodal Department of the Central Government to deal with matters related to the socio-economic development of the eight States of Northeast India.

Multi-State Cooperative Societies (Amendment) Bill, 2022

Context 

• Recently, the Union Cabinet approved the Multi-State Cooperative Societies (Amendment) Bill, 2022 after the announcement by the Union Cooperation Minister. 

Objectives/provisions of the Amendment Bill 2022

• Incorporation of  provisions of the 97th Constitutional Amendment Act 2011:

Regarding constitutional status and protection to cooperatives and guarantees democratic and independent functioning of the cooperative societies.

• Democratic governance: The bill has provisions for setting up of cooperative election authority, cooperative information officer, cooperative ombudsman etc. to make governance of multi-state cooperative societies more democratic, transparent and accountable. 
• Reform electoral processes: The cooperative election authority will ensure fair, free and timely elections and reduce electoral complaints and malpractices.
  • The Bill also provides for debarring offenders for three years, hence will bring in more electoral discipline.
• Grievance redressal: The cooperative ombudsman will set up a mechanism for grievance redressal of the cooperative societies members  in a structured fashion.
• Strengthen monitoring mechanisms: The bill empowers the Central government to suspend the Board of a MSCS for fraud or embezzlement of funds or failure to conduct elections within a stipulated time. 
  • It will also debar relatives of a sitting director to be recruited as an employee in the same cooperative.
• Improved composition of the Board: For promoting the professional management of the cooperatives, the bill has provisions-
  • To bring in co-opted directors with experience in the field of banking, management, cooperative management and finance. 
  • The option of including the members having specialization in any field relating to the objects and activities undertaken by such multi-state cooperative society. 
• Enhance transparency and accountability: The Bill proposes to appoint a Cooperative Information Officer who will enhance the transparency in functioning by providing the members timely access to information.
• To promote equity and facilitate inclusiveness, the bill includes provisions relating to representation of women and Scheduled Caste/Scheduled Tribe members on the board of multi-state cooperative societies 
• Improve ease of doing business: The amendment Bill proposes-

• To reduce the period of registration, with a provision for the applicants to seek additional time of two months for rectification of mistakes.
• For electronic submission and issuance of documents, thus providing for a comprehensive digital ecosystem.

• Simpler registration: Presently, India has nearly 800,000 cooperative societies of which around 1,600 are MSCS thus serve the interest of members in more than one state. For example, IFFCO, Kribhco and NAFED.
• Increase financial discipline: The bill provides for the Rehabilitation Fund for the revival of sick cooperatives and enables raising of funds in multi-state cooperative societies.
• Regulation: For cooperative banks, the banking functions will be governed by the Banking Regulation Act. However, all other operational issues will be regulated by the MSCS Act and its new amendments.

What are Cooperative Societies?

• About:
  • A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of common economic interest. 
  • Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help. 
• 97th Constitutional Amendment Act 2011:
  • It established the right to form cooperative societies as a fundamental right (Article 19).
  • It included a new Directive Principle of State Policy on the Promotion of Cooperative Societies (Article 43-B).
  • It added a new Part IX-B to the Constitution titled “The Co-operative Societies” (Articles 243-ZH to 243-ZT). 
  • It authorizes the Parliament to establish relevant laws in the case of multi-state cooperative societies (MSCS) and state legislatures in the case of other cooperative societies.
• Important Statistics:
  • Of the 1600 odd MSCS, the majority are in Maharashtra (570), followed by UP (150) and New Delhi (133).
  • Credit cooperatives constitute the bulk of the MSCS (610), followed by agriculture-oriented MSCS (244).
  • There are around 100 multi-state cooperative diaries and 70 multi-state cooperative banks. 

Ministry of Cooperation

• The Union Ministry of Cooperation was formed in 2021, its mandate was looked after by the Ministry of Agriculture before.
• Objectives of creation of the new ministry:
  • To realize the vision of “Sahakar se Samriddhi” (prosperity through cooperation).
  • To streamline processes for ‘’Ease of doing business’’ for co-operatives and enable development of Multi-State Co-operatives (MSCS)
  • To provide a separate administrative, legal and policy framework for strengthening the cooperative movements in the country.
  • To deepen the cooperative as a true people-based movement reaching up to the grassroot level.

Way Forward

• The Bill is expected to be introduced during the winter session of Parliament.
• The bill if passed will enhance transparency, accountability and improve ease of doing business for the cooperatives.
• The Union Cooperation Minister had also announced bringing in a new national cooperative policy for holistic management and success of cooperatives movement in India.

Examining Demonetisation

In News

• The Supreme Court recently said that it will have to examine the 2016 demonetisation decision.

More about the news

• Petitions:
  • The petitions are challenging the demonetisation of Rs 500 and 1000 currency notes by the government.
• Government’s stand:
  • Centre has taken the stand that in view of the subsequent developments and passage of time, it has now become an academic issue.
• Court’s opinion:
  • The court wants to examine the 2016 demonetisation decision to decide whether the issue has become a mere “academic” exercise.
  • The court has asked the Centre and the Reserve Bank of India to submit their response to the petitions.
  • Judicial review:
    • The Supreme Court said that it is aware of the “Lakshman Rekha” (limitations) on judicial review of government policy decisions. 
    • But the manner in which it is done and the procedure is something which can be examined.

More about demonetization

• About:
  • On 8th November 2016, the Government of India announced the demonetisation of all ?500 and ?1,000 banknotes of the Mahatma Gandhi Series. 
  • It also announced the issuance of new ?500 and ?2,000 banknotes in exchange for the demonetised banknotes.
  • There were three main economic objectives behind demonetisation:
    • Fighting black money, 
    • Fake notes and 
    • Creating a cashless economy by pushing digital transactions. 
• Outcomes of the exercise:
  • Black money:
    • Among those targets, the biggest one was tackling black money. 
    • Black money refers to cash that is not accounted for in the banking system or cash for which tax has not been paid to the state.
    • According to RBI data, almost the entire chunk of money (more than 99 percent) that was invalidated came back into the banking system. 
    • Of the notes worth Rs 15.41 lakh crore that were invalidated, notes worth Rs 15.31 lakh crore returned.
    • Thus, data suggests that demonetisation was a failure in unearthing black money in the system. Meanwhile, instances of black money seizures continue.
  • Fake Notes:
    • RBI’s annual report, submitted that ?15.44 lakh crore worth of currency was demonetised. 
    • The withdrawn money amounted to 86.4% of the currency in circulation at the time. Only ?16,000 crore out of the ?15.44 lakh crore was not returned. 
    • Only .0027% fake currency was “captured” following demonetisation.
  • Digitisation of economy:
    • As per RBI report, demonetisation has made India a lesser cash-based economy. 
    • In the initial days of trouble conducting business in the face of an acute cash crunch, more and more entities had to shift to digital to do business. 
      • After return of the cash, the growth in digital payment had been modest.
    • Supported in the Pandemic:
      • The creation of digital infrastructure post-demonetisation helped India in coping with the pandemic. 
      • As the tools for faceless transactions were mostly in place, it became easier to move towards contact-less transactions.
• Major Issues associated with the demonetization exercise:
  • No separate Acts:
    • Demonetisation in 1946 and 1978 were implemented through separate Acts debated by Parliament. 
    • In 2016, it was done through a mere notification issued under provisions of the Reserve Bank of India Act, 1934.
  • Central Bank had rejected key justificantions:
    • Central Board of the RBI gave its approval to the scheme but also rejected, in writing, two of the key justifications — black money and counterfeit notes.
  • Other:
    • 11 crore people stood in queue to change their own money. 
    • Farming community was at a loss. It was sowing season. 
    • Wholesale markets shut down. Prices crashed. Retail saw a “calamitous” drop in sales. 
    • Industry halted and 15 crore daily labourers were left without work.
    • Some say demonetisation broke the back of rural economy where cash was dominated and disrupted supply chains. 
    • It is estimated that 1.5 million jobs were lost.

Way ahead

• Debates still rage about whether the note ban was a prudent step in the Indian economic context. 
• Failure at large:
  • An analysis of the data reveal that demonetisation has failed to meet its stated goals except in certain areas such as encouraging more digital transactions and more formalisation of the financial system. 
• The pain associated with the exercise has far outweighed the gains:
  • While there certainly has been a discernible uptick in digital payments, it is doubtful whether the elaborate exercise to unearth black money — the stated and primary goal of demonetisation — was worth it. 
• We as a Nation may not be able to undo something that has happened, but whether in the future such power can be exercised or not can be looked into.

World Economic Outlook Report: IMF

In News

• Recently, the International Monetary Fund has released its latest edition of World Economic Outlook Report (WEO) 2022.
  • It is a comprehensive report published twice a year by the International Monetary Fund (IMF).

Major Highlights of the Report 

• The IMF has sharply cut the forecast for global growth from 6.0 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023.
  • It stated that more than a third of the global economy will contract this year or next.
• Inflation: Global inflation is now expected to peak at 9.5 per cent in late 2022. 
  • It is expected to remain elevated for longer than previously imagined and is likely to decrease to 4.1 per cent only by 2024. 
• Core inflation: that is the inflation rate when prices of food and fuel are taken away. Core inflation typically rises and falls more gradually than inflation in food and fuel.
  • Global core inflation, measured by excluding food and energy prices, is expected to be 6.6 per cent on a fourth-quarter-over-fourth-quarter basis, reflecting the pass-through of energy prices, supply chain cost pressure, and tight labour markets, especially in advanced economies. 
• The three largest economies: the United States, the European Union, and China will continue to stall and that increasing price pressures remain the most immediate threat to current and future prosperity by squeezing real incomes and undermining macroeconomic stability.
• High inflation and stalling growth is possibly the toughest policy challenge available.
  • That’s because policy measures to contain inflation typically drag down growth even further while measures taken to boost growth tend to spike inflation.
• Geopolitical risks: The global economy continues to face steep challenges, shaped by the Russian invasion of Ukraine, a cost-of-living crisis caused by persistent and broadening inflation pressures, and the slowdown in China. 
• India’s picture:
  • India appears better placed.
  • India’s GDP growth rate is better and inflation is not as high.
    • But these metrics hide that in absolute terms, India is barely out of the contraction suffered in 2020, that it was home to the most people (5.6 crore, according to World Bank) pushed below abject poverty in 2020 or that crores are unemployed.
  • If the RBI cuts its growth rate forecast in April (7.2 per cent) by the same measure as the IMF has (1.4 percent points), India’s growth in 2022-23 will be 5.8 per cent.
  • The threat to India comes from at least four sources:
    • Higher crude oil and fertiliser prices will spike domestic inflation
    • Global slowdown will hurt exports, dragging down domestic growth and worsening the trade deficit
    • A strong dollar will put pressure on the rupee’s exchange rate, which will likely result in reducing our forex reserves and reducing our capacity to import goods when the going gets tougher.
    • Low demand among most Indians, the government might be forced to spend more towards providing basic relief in the form of food and fertiliser subsidies. This will worsen the government’s financial health.

International Monetary Fund (IMF)It was established in 1944 in the aftermath of the Great Depression of the 1930s.IMF and the World Bank are also known as the Bretton Woods twins because both were agreed to be set up at a conference in Bretton Woods in the US.It is governed by and accountable to the 190 countries that make up its near-global membership.India became a member in December 1945.Aim: To ensure the stability of the international monetary system (the system of exchange rates and international payments) which enables countries and their citizens) to transact with each other.Its mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.Financing: The IMF’s resources mainly come from the money that countries pay as their capital subscription (quotas) when they become members.Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy.Countries can then borrow from this pool when they fall into financial difficulty.Publications:World Economic OutlookGlobal Financial Stability ReportFiscal MonitorGlobal Policy Agenda

Living Planet Report 2022

In News

• Recently, the World Wide Fund for Nature (WWF) released Living Planet Report 2022.

About Living Planet Report

• Living Planet Report is WWF’s flagship publication.
• It is released every two years.
• It is a comprehensive study of trends in global biodiversity and health of the planet. It tracks changes in the relative abundance of wild species populations across the globe.
• The LPI is continually changing with 838 new species and 11,011 new populations being added to the dataset since the 2020 LPR was released.
  • There has been a significant increase in the number of fish species (481) that have been added to the Living Planet Report. 

Major outcomes of the report

• Decline in Population 
  • There has been a 69 percent decline in the wildlife populations of mammals, birds, amphibians, reptiles and fish, across the globe in the last 50 years.
  • The freshwater populations have declined the most, with an average 83% decline between 1970 and 2018.
  • The IUCN Red List shows cycads, an ancient group of seed plants, are the most threatened species, while corals are declining the fastest, followed by amphibians.
• Region wise assessment
  • The highest decline (94 percent) was in Latin America and the Caribbean region.
  • Africa recorded a 66 per cent fall in its wildlife populations from 1970-2018.
  • Asia Pacific’s monitored populations fell by 55%. 
  • Southeast Asia is the region where species are most likely to face threats at a significant level.
  • The Polar Regions and the east coast of Australia and South Africa showed the highest impact probabilities for climate change, driven in particular by impact on birds.
• Mangroves
  • Mangroves continue to be lost to aquaculture, agriculture and coastal development at a rate of 0.13 percent per year.
    • Mangrove-loss represents loss of habitat for biodiversity and the loss of ecosystem services for coastal communities. 
  • Around 137 square kilometres of the Sundarbans mangrove forest in India and Bangladesh has been eroded since 1985, reducing land and ecosystem services for many of the 10 million people who live there.
• Corals
  • About 50% of warm water corals have already been lost and a warming of 1.5 degrees Celsius will lead to a loss of 70-90% of warm water corals. 
    • The Bramble Cay melomys, a small Australian rodent, was declared extinct after sea-level rise. 
• Sharks
  • The global abundance of 18 of 31 oceanic sharks has declined by 71% over the last 50 years and the report said that by 2020 three-quarters of sharks and rays were threatened with extinction. 
• Others
  • Only 37% of rivers longer than 1,000km remain free-flowing over their entire length.
  • 41% land-use change is the biggest current threat to nature.
  • Report says action is needed to reverse biodiversity loss by 2030 and keep global warming to 1.5ºC.
  • By moving to sustainable, healthy, and culturally appropriate diets we can reduce agricultural land use by 41% and wildlife loss by up to 46%. 

India specific study

• The Himalayan region and the Western Ghats are some of the most vulnerable regions in the country in terms of biodiversity loss, and where increased biodiversity loss is expected in future if temperatures are to increase.
•  India has seen a decline in population of the likes of honeybees and 17 species of freshwater turtles in this period.

Difference between species & populationsSpecies and populations are two levels of classification of organisms in ecology. Species interbreeds with each other, whereas a population is a group of one species that live within the same geographic area.

Challenges cited by the report  

• Habitat loss and barriers to migration routes were responsible for about half of the threats to monitored migratory fish species. 
• WWF identified six key threats to biodiversity: agriculture, hunting, logging, pollution, invasive species and climate change to highlight ‘threat hotspots’ for terrestrial vertebrates.
• Land-use change is still the biggest current threat to nature: destroying or fragmenting the natural habitats of many plant and animal species on land, in freshwater and in the sea. 
• We are facing the double emergencies of human-induced climate change and biodiversity loss: threatening the well-being of current and future generations.
• Many mangroves are degraded by overexploitation and pollution, alongside natural stressors such as storms and coastal erosion.
• Climate change in India will impact key areas, such as water resources, agriculture, natural ecosystems, health and the food chain. 
• Agriculture is the most prevalent threat to amphibians (animals that live both on land and in water), whereas hunting and trapping are most likely to threaten birds and mammals. 

Way Forward

• Interlink-age
  • The international wildlife conservation organisation said that the biodiversity loss and climate crisis should be dealt with as one instead of two different issues as they are intertwined. 
• A nature-positive future 
  • It needs transformative, game-changing shifts in how we produce, how we consume, how we govern and what we finance. 
• All-inclusive collective approach 
  • There is a need for an all-inclusive collective approach that can put us on a more sustainable path and ensures that the costs and benefits from our actions are socially just and equitably shared.

Interpol

In News

• Recently, the Interpol has rejected a second request by India to issue a Red Corner Notice against the Canada-based founder and legal advisor of the pro-Khalistan outfit Sikhs for Justice (SFJ).

Red Notice

• It is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
• It contains two main types of information:
  • Information to identify the wanted person, such as their name, date of birth, nationality, hair and eye colour, photographs and fingerprints if available.
  • Information related to the crime they are wanted for, which can typically be murder, rape, child abuse or armed robbery.
• Red Notices are published by INTERPOL at the request of a member country, and must comply with INTERPOL’s Constitution and Rules. 
• A Red Notice is not an international arrest warrant.

Interpol 

• Its full name is the International Criminal Police Organisation and is an intergovernmental organisation .
• It has 195 member countries and it  helps police in all of them to work together to make the world a safer place.
• It is headquartered in Lyon, France.
• In each country, an INTERPOL National Central Bureau (NCB) provides the central point of contact for the General Secretariat and other NCBs. 
  • An NCB is run by national police officials and usually sits in the government ministry responsible for policing.
  • The Central Bureau of Investigation (CBI) is designated as the National Central Bureau of India.

SALT Project

In News

• Recently, the World Bank extended an unconditional loan of $250 million for the SALT project in Andhra Pradesh.

SALT Project

• About:
  • Supporting Andhra’s Learning Transformation (SALT) is a project undertaken by the Government of Andhra Pradesh with support from the World Bank.
  • The SALT is the first project in the school education sector to be funded by the World Bank without any precondition.
• Aim:
  • To transform the state’s school education system by strengthening the quality of foundational learning through various pathways including improving teacher professional development, classroom-based assessments and early childhood education. 
  • Establishing and strengthening foundation schools is in tune with the National Education Policy, 2020.

Revised ‘Beti Bachao Beti Padhao’ Scheme

In News 

The Central government announced the inclusion of skilling of girls in non-traditional livelihood (NTL) options in  the ‘Beti Bachao Beti Padhao’ scheme.

About 

• The Beti Bachao Beti Padhao scheme has been revised and Some of the new aims for the scheme include
  •  Ensuring 1% increment in enrolment at the secondary level and skilling of girls and women every year
  • Raising awareness about safe menstrual hygiene
  • Promulgating elimination of child marriages. 
• Focus: The scheme will now also focus on increasing the enrolment of girls in secondary education, particularly in STEM (Science, Technology, Engineering, Mathematics) subjects. Women have been historically under-represented areas such as technology.
• Through this initiative, girls will be given skill training in non-traditional vocations, thereby making them torchbearers of a women-led Aatmanirbhar Bharat (self-reliant India)

The Beti Bachao Beti Padhao (BBBP) SchemeIt was  launched by the Hon’ble Prime Minister in 2015 at Panipat in Haryana With the objective of bringing behavioural change in the society towards birth and rights of a girl child.Objective : To improve CSR (number of girls per 1000 boys within the age group of 0-6 years) in the country and create an enabling environment for the all-around development of the girl child. Focus areas are:Preventing sex selectionEnsuring survival and protection of a girl childEnsuring education of the girl childIt  has resulted in increased awareness and sensitization of the masses regarding the prevalence of gender bias and role of community in eradicating it.