Fair and Remunerative Price (FRP)
Fair and Remunerative Price (FRP) Fair and Remunerative Price – FRP is the price declared by the government, which mills are legally bound to pay to farmers for the cane procured from them. Mills have the option of signing an agreement with farmers, which would allow them to pay the FRP in instalments. Delays in payment can attract an interest up to 15% per annum, and the sugar commissioner can recover unpaid FRP as dues in revenue recovery by attaching properties of the mills. The payment of FRP across the country is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act (ECA), 1955 which mandates payment within 14 days of the date of delivery of the cane. It has been determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA). The FRP is based on the Rangarajan Committee report on reorganising the sugarcane industry.
India – Central Asia Relation
India – Central Asia Relation India and the region of Central Asia have very long historical, cultural, and economic connections. The famous Silk Route not only connected the people and businesses, but also let the thoughts, culture and beliefs flow freely from one region to the other. Background The five Central Asian Republics (CARS) viz Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan attained independence on the disintegration of the Soviet Union in 1991. India was among the first countries to recognize the five Central Asian states and established diplomatic relations with them. India now considers the Central Asian countries as part of its “extended and strategic neighbourhood”. In 2012, India announced the ‘Connect Central Asia’ policy, and also announced to hold an India-Central Asia Dialogue at Track II annually in one of the Republics. Significance of Central Asia to India Energy Security – The countries of Central Asia are endowed with significant hydrocarbon and mineral resources and are close to India geographically Kazakhstan is the largest producer of uranium and has huge gas and oil reserves as well. Uzbekistan is also rich in gas and is an important regional producer of gold along with Kyrgyzstan. Tajikistan has vast hydropower potential besides oil deposits. Turkmenistan has the fourth largest gas reserves of the world. Strategic Location – Central Asia serves as a land bridge between Asia and Europe, making it geopolitically axial for India. India’s only foreign military airbase is in Farkhor (Tajikistan), which is operated by IAF and Tajik Air Force. Trade and Investment potential – The economic development activities in the region has led to a construction boom and development of sectors like IT, pharmaceuticals, and tourism. India has expertise in these sectors and deeper cooperation will give a fresh impetus to trade relations with these countries. There is a great demand for Indian pharmaceutical products in the region. Security – being located close to the ‘Golden Crescent of opium production (Iran-Pak-Afghan), Central can help to tackle the challenge of narcotics trafficking and arms smuggling. Counter terrorism and radicalization – keeping a check on the rise of radical Islamist groups that may pose a threat to India’s security. Stabilization of Afghanistan – Central Asian nations and India can effectively play role in bringing normalcy in Afghanistan. India has not been able to take advantage of its civilizational and historical ties with the region as adequate attention was not accorded to the relation till recently. India’s relations with the Central Asian countries are hampered by geography, economic constraints, security concerns and red-tapism. Challenges in Relation Low Accessibility – India does not share physical border with any of the Central Asian states, which is a landlocked region. The adverse geographic terrain and the thorny India-Pakistan border dynamics, greatly impedes connectivity, thereby curbing greater economic cooperation between India and the region. Below par trade – At present the five Central Asian republics account for trade of only about $2 billion with India, compared to about $50 billion with China that has made them a key to its Silk Road Economic Belt (SREB) initiative. Growing influence of China in Central Asia – China’s One Belt and Road Initiative (BRI) seems to be a credible threat to India’s objective on overcoming connectivity issues with Central Asia. Security issues – porous border and unbridled corruption along with the proximity with regions of soaring opium production (Golden Crescent and Golden Triangle) makes the region a powerhouse for drug and money trafficking. Instability in Neighbouring regions – The unstable situation in Afghanistan and a highly problematic India-Pakistan relation have deprived India from the benefit of relations with Central Asia. Domestic challenges – emerging from religious extremism, authoritarian regimes, terrorism, ongoing conflicts etc is in itself a challenge in furthering India’s economic interests. Administrative laggards in the region – such as non-availability of hard currency, banking services, and prevailing corruption creating roadblocks in smooth bilateral relations. Indian efforts to strengthen Cooperation Connect Central Asia policy – launched in 2012 to strengthen strategic, economic, and security cooperation. Shanghai Cooperation Organization (SCO) membership – With full membership of SCO, there will be more frequent summit level contacts between the top leaderships of India & CARs. International North-South Transport Corridor (INSTC) – a multi-modal transport project to connect Indian Ocean and Persian Gulf to the Caspian Sea. Chabahar Port in Iran – Once the Chabahar port is ready, along with INSTC it can become an important anchor for trade to and from Central Asia via Afghanistan. Signing of Ashgabat Agreement – an international transport and transit corridor facilitating transportation of goods between Central Asia and the Persian Gulf. Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline – to supply natural gas from Turkmenistan to India. Eurasian Economic Union (EEU) – India is negotiating a comprehensive economic partnership agreement with the Eurasian Economic Union, which include Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan. India-Central Asia Dialogue – provides a platform for strengthening cooperation between India and Central Asian countries. India-Central Asia Business Council (ICABC) – launched in February 2020 and comprises the Federation of Indian Chambers of Commerce and Industry (FICCI) and chambers of commerce from the 5 central Asian countries. Indian Technical and Economic Cooperation (ITEC) Program provides technical assistance and training in areas such as banking, remote sensing, and information technology etc in the premier institutions in India. Both India and Central Asia are factors of peace, stability, growth, and development, in the region and the world. Stronger relations between them will contribute to increased security and prosperity of these countries and the world. Read Full GS Notes Way Forward India should leverage its soft power and its ready acceptability in Central Asia to strengthen bilateral ties. More energy and vigour need to be imparted to the area of commercial and economic ties. Exploring Air Routes – While incentivising the use of Chabahar port, India must simultaneously develop the air route by promoting easy flight connectivity. India can create an Air Corridor, like the one it has with Afghanistan Utilizing untapped potential – Chambers of Commerce as well as official government agencies need to be more active to bridge the ‘’information deficit’’ between India and the region. India provides an assured and competitive market to these countries for their energy, raw materials, oil and gas, uranium, minerals, hydro-electric power etc. Private sector participation also must
India – Latin America Relations
India – Latin America Relations Latin America is generally understood to consist of the entire continent of South America in addition to Mexico, Central America, and the islands of Caribbean whose inhabitants speak a Romance language such as Spanish, Portuguese, and French. India- Relation – Background Both the LAC (Latin American and Caribbean) countries and India had found themselves in very different situations post-independence. LAC countries came under the influence of US hegemony, while India started the Non-Aligned Movement and later signed a friendship treaty with Soviet Union. This had created a wedge between the two. Moreover, LAC countries did not act as a unit and were grappling with political instabilities where some countries showing capitalist tendencies while others leaning towards socialism. India’s closed economy didn’t help matters either. With the emergence of democracies in the region post-Cold War and India’s opening up of its economy, several opportunities for growth of trade and commerce were created. India’s Interests in Latin America Economic Interests – Latin America is very rich in minerals such as copper, lithium, iron ore, gold, and silver. gives India an opportunity to increase investments for their extraction as well as for their imports at cheaper rates. India’s exports to Latin America amounts to $13.6 billion in 2018-19. Strategic Interests – The region is very important for India in order to achieve its global ambitions. such as pursuing permanent membership of the UNSC, the NSG and at various other negotiations like climate change, terrorism, trade, etc. Energy Security – India sources about 15% of its crude oil from Latin America countries. Latin America has huge reserves of crude oil (20% of global reserves). Latin America is also an important partner in the India led International Solar Alliance. Food Security – Latin American region is five times the size of India with only half as much population. India can utilize this fertile land to improve agriculture and reduce its import costs, as India is currently importing pulses and oil seeds from many of African and Southeast Asian countries at very high costs. Areas of Cooperation Economic Cooperation – India imports large quantities of hydrocarbons from Venezuela, Mexico, Colombia, and Brazil; edible oils and sugar from Brazil and Argentina; copper and precious metals from Chile and Peru; wood from Ecuador, etc. India is one of the largest suppliers of IT services to Latin America In the last five years, India has been exporting more pharma to Latin America than China. Preferential Trade Agreement (PTA) was signed with MERCOSUR in 2004 – to expand and strengthen the existing relations between MERCOSUR and India and promote the expansion of trade by granting reciprocal fixed tariff preferences. Investment – Latin American firms have invested about a billion dollars in India in areas such as soft drinks, multiplexes, theme parks, and auto parts. Development Assistance – India had recently announced 14 million US dollar grant for community development projects in CARICOM & 150 million line of credit for solar, renewable energy and climate change related projects. Global Partnership – India is cooperating with Brazil at platforms like BRICS, IBSA which has provided an alternative platform for developing countries and reduces their dependence on existing institutions controlled by west. Military Cooperation – India’s DRDO and Brazilian aircraft company Embraer have collaborated to develop and produce airborne radar platforms. India has not been able to tap the full potential of engagements with the Latin American world, due to several factors. Read Full GS Notes Challenges in Engagement Lack of Uniform approach – India has good relations with countries like Brazil, Mexico, Chile but other countries lag behind. FTA talks with MERCOSUR has been stalled due to differences amongst the members of the grouping. Though trade in commodities continues to grow and has reached $46 billion in 2012-13, but it is nothing compared to the Chinese trade. Regional politics – Rivalries between countries like Brazil and Argentina for regional dominance is also affecting India’s relations with the region. For instance, while India and Brazil are part of the G4 seeking the UNSC membership, Argentina is part of the Coffee Club (in opposition to expansion of UNSC). Poor Connectivity – geographical distances have impeded trade between India and Latin America. Lack of direct shipping service from India to Latin America; difficulty in shipping heavy commodities and perishables. Whereas China has direct shipping links through the Panama Canal, giving it an upper hand. Brand awareness of Indian products in Latin America is abysmal compared to European, US, Chinese, Japanese or Korean industry. The absence of political disagreement with Latin America leaves the field open for positive engagement. The bridges we build will endure and enable Indian business and other interests to cross over and operate in that region with greater ease. The need to engage the LAC region bilaterally, collectively, and concertedly, at all levels, as we have done with Africa and South-East Asia, is evident. Way Forward India and Latin America need to better understand each other’s political reality, endowments, capabilities, and priorities, beyond the experience of transitory diplomats. Latin America acts through multiple layers of regional and sub-regional organisations, so arguably India needs to take the lead in identifying and activating the principal actors and forums. Political initiatives need to be supported by economic and social interaction Agreements should be made for investment protection, avoidance of double taxation, extradition, immigration, lines of credit, elimination of regulatory hurdles, etc. India should increase its diplomatic presence in the region, promote Latin American studies, invest in shipping industries, conclude PTAs (Preferential Trade Agreements) and FTAs (Free Trade Agreements) at the earliest with different countries and groupings in the region. A combination of government initiatives and private ventures and diplomatic engagements have to be increased if we have to realise the full potential of India-LAC ties. The Indian elephant has already engaged the ‘Tigers of Asia’. It is now the turn of
India – Asean Relations
India – Asean Relations ASEAN (Association of Southeast Asian Nations) is a regional organization of 10 nations which was established to promote political and social stability amid rising tensions among the Asia-Pacific’s post-colonial states. Its members are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Myanmar, Vietnam, Laos, and Cambodia. ASEAN commands far greater influence on Asia-Pacific trade, political, and security issues than its members could achieve individually. India’s relationship with ASEAN has emerged as a key cornerstone of our foreign policy. India-ASEAN Relation – Background After its Independence in 1947, India followed a policy of Non-Aligned Movement (NAM) and became a champion of decolonisation, including in Southeast Asia. However, during the 1970s, India’s perceived tilt towards the Soviet Union caused Southeast Asia to drift away from India as both followed different economic and political ideologies. In a major shift away from policies of the Cold War era, India adopted the “Look East Policy” (LEP) soon after economic liberalization in 1991 to increase economic and commercial ties with East and Southeast Asian nations. India became a Sectoral Partner of ASEAN in 1992, a Dialogue Partner in 1996 and a Summit-level Partner in 2002. The partnership was upgraded to Strategic Partnership in 2012 as a result of the growth of India-ASEAN relationship in last two decades. India announced Act East Policy in 2014 with an intent to upscale its engagement with ASEAN Member States. India and ASEAN celebrated 25 years of their Dialogue Partnership, 15 years of Summit Level interaction and 5 years of Strategic Partnership in 2017. The Act-East Policy emphasizes the 3 C’s of Connectivity, Commerce and Culture as the focus areas of action for a greater ASEAN-India integration. Significance of ASEAN to India ASEAN’s centrality in India’s foreign policy – A cohesive, responsive, and prosperous ASEAN is central to India’s Indo-Pacific Vision and India’s Act East Policy and contributes to Security and Growth for All in the Region (SAGAR). Economic – ASEAN is the one of the largest market in the world comparative to the EU and North American markets. It’s also the 4th most popular investment destination globally. Investment opportunities for Indian businesses – Cost of production is lower in Laos, Cambodia, and Myanmar, which means that Indian firms can gain significantly by investing in these countries. Countering China – Cooperation between India and ASEAN is crucial to counter China’s power projection in the region. Both have territorial and border issues with China, disputes over the South China Islands and waters for ASEAN and over land boundaries for India. Integration with regional and global supply chains – Increasing engagement with ASEAN is pivotal to facilitate India’s integration with regional and global supply chain movements. North-East development – Connectivity projects with the ASEAN nations keeping Northeast India at the centre can ensure the economic growth of the land-locked north-eastern states. Collaboration with the ASEAN nations is necessary to counter insurgency in the Northeast, combat terrorism, etc. Maritime security – The Indian Ocean carries 90% of India’s trade and its energy sources. Presence of choke points such as the Malacca strait makes the South-East Asian region significant for countering traditional and non-traditional maritime threats like piracy and terrorism. Indian Diaspora – About 9-8% of the population in Malaysia and Singapore is of Indian origin, in Myanmar-4% and Indonesia about 0.5%. Areas of Cooperation Economic Cooperation – ASEAN is India’s 4th largest trading partner. India signed FTA in goods in 2009 and an FTA in services and investments in 2014 with ASEAN. India has a Comprehensive Economic Cooperation Agreement (CECA) with various countries of the ASEAN region which has resulted in concessional trade and a rise in investments. Political Cooperation – ASEAN-India Centre (AIC) was established to undertake policy research, advocacy and networking activities with organizations and think-tanks in India and ASEAN. Delhi Dialogue – Annual Track 1.5 event for discussing politico-security and economic issues between ASEAN and India. Financial Assistance – India provides financial assistance to the ASEAN nations through various mechanism like ASEAN-India Cooperation Fund, ASEAN-India S&T Development Fund and ASEAN-India Green Fund. Connectivity – India has been undertaking several connectivity projects like India-Myanmar-Thailand Trilateral (IMT) Highway and the Kaladan Multimodal Project. India is also trying to establish a Maritime Transportation Agreement with ASEAN and also Plans for a Railway link between New Delhi in India to Hanoi in Vietnam. Socio-Cultural Cooperation – Programmes to boost People-to-People Interaction with ASEAN are organized, such as inviting ASEAN students to India, Special Training Course for ASEAN diplomats, Exchange of Parliamentarians, etc. Defence Cooperation – Joint Naval and Military exercises are conducted between India and most ASEAN countries. Vietnam has traditionally been a close friend on defense issues, Singapore is also an equally important partner. Maritime Cooperation – adopted Delhi Declaration and decided to identify Cooperation in the Maritime Domain as the key area of cooperation under the ASEAN-India strategic partnership. India is developing its maiden deep-sea port in a strategically located Sabang port in Indonesia. REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP) AGREEMENT RCEP is a Free Trade Agreement (FTA) that has been signed between 15 countries including the 10 ASEAN members, China, Japan, South Korea, Australia, and New Zealand. RCEP was first proposed in 2011 with an aim to create a consolidated market for the ASEAN countries and their trade partners. RCEP now forms the world’s largest trade bloc, covering over 2.2 billion people and accounting for 30% of the world’s economy. Though India was a part of the RCEP’s negotiations, it dropped out in November 2019, citing significant outstanding issues that remain unresolved. Reasons behind India pulling out of RCEP Trade imbalance with RCEP members – India’s trade deficit with RCEP countries has almost doubled in the last five-six years. Chinese Angle – From a geopolitical perspective, RCEP is China-led or is intended to expand China’s influence in Asia. India has already signed FTA with all the countries of RCEP except China. Signing of RCEP can lead to cheaper products from China flooding the Indian market. Lack of adequate protection for domestic industries – India’s proposals for strict Rules of Origin (to prevent routing of products from non-RCEP countries) and an Auto-trigger mechanism to impose tariffs when imports crossed a certain threshold which were not accepted. Lack of Service component – Most developed RCEP countries where India can export services, have been unwilling to negotiate wide-ranging disciplines in services that can create new
UPSC Mains Answer Writing Practice Test 9 GS 3
UPSC Mains Answer Writing Practice Test 9 GS 3 Check All Mains Questions 1.Explain the consequences of land degradation in drylands around the world. (10 Marks) 2. Examine the importance of peatlands in maintaining ecological resilience around the globe. (10 Marks) 3. Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyze the impact of sand mining along the Indians coasts, citing specific examples. (10 Marks) 4. Elaborate on the contributions made by the ISRO for the economic development of India. (10 Marks) 5. What is a three-parent baby? Explain the processes and procedures of the same? (10 Marks) 6. What are the major objectives of the Sendai Framework on disaster management? Evaluate whether India’s disaster management systems are in line with the Sendai framework. Suggest measures too. (10 Marks) 7. Discuss the consequences of Climate change on agriculture and food supply and on the coastal livelihood in India. (15 Marks) 8. “Environmental impact assessment in India is a tool to ensure economic development does not impede ecological balance”. In light of this statement, discuss the issues associated with EIA. Also, suggest adequate measures to strengthen the EIA. (15 Marks) 9. Artificial Intelligence (AI) and Machine Learning (ML) are continuing to transform our world. In this light, Analyse the possible consequences of the AI in the social and economic life? (15 Marks) 10. What is ransomware? Do you think India’s Cybersecurity regime is strong enough to curb these attacks? Elaborate. Also, suggest measures to improve cybersecurity regime of India. (15 Marks) Answer Key 1. Explain the consequences of land degradation in drylands around the world. (10 Marks) Answer:Drylands are regions faced with deficiency of water yet it supports immensely rich biodiversity, including some of the most iconic and endemic species. The distinct features of the drylands are: ● They cover around 40 per cent of the land surface across the globe. ● Characterized by low and uncertain rainfall usually around 75 cm annual rainfall spread over unevenly throughout the year.● Semi-arid regions are included under this category. ● Responsible in producing 44 percent of the crops around the world. ● Inhabited by about 2 billion people and almost one half of the world’s livestock accordingto Millenium Ecosystem Assessment Report. ● Home to a diverse human culture including some of the world’s largest cities.Communities in drylands are economically poorer and socially backward than elsewhere and the land is more vulnerable to degradation from climate change and direct human pressures. The major consequences of land degradation in drylands around the world are: ● Poor management of the drylands can lead to desertification. ● Food Security of the world itself will be under risk because these drylands are the breadbaskets of the world. Eg: Steppes of Kazakhstan. ● Drylands store approximately 46% of the global carbon share. Excess degradation of the drylands leads to release of the carbon from the land which will accelerate global warming. ● Stressed Migration: World Water Development Report suggests that land degradation will ultimately result in a water crisis which will displace between 24 million and 700 million people from these areas. ● Millennium Assessment report that the well-being of dryland peoples is lower than that of people in other ecological systems. Infant mortality rates are the highest and gross national product (GNP) per capita is lowest. Case Study:The part of the Deccan Plateau that extends from Telangana into Karnataka are drylands. Desertification and Land Degradation Atlas report state that close to 35% of drylands of the region are under the threat of degradation. Unsustainable agricultural practises, erratic monsoon pattern etc. contribute to this degradation. Measures like Organic Farming, Zero Budget Natural Farming etc. are steps required to recover from the current situation. 2. Examine the importance of peatlands in maintaining ecological resilience around the globe. (10 Marks)Answer:Peatlands are regions covered with peats, which are the decayed plant material that accumulates under waterlogged conditions over long time periods. They are well distributed across the globe in permafrost regions towards the poles and at high altitudes, in coastal areas, beneath tropical rainforest and in boreal forests.Contribution of Peatlands to ecological resilience: ● They are one of the largest natural terrestrial carbon stores. The total carbon storage in this region accounts to about 40% of all soil carbon which is higher than the tropical rain forests. ● Peatlands cover about 3% of the global land surface. It is a pristine ecosystem which helps to purify the wastes in water. ● They support rich biodiversity and wildlife. Eg: Bornean Orangutan lives in the swampy forests of Indonesia. ● Provide vital ecosystem services. They regulate the water flows and thus help to minimise the risk of flooding and drought and prevent seawater intrusion. • Peatlands supply food, fibre and other local products that sustain local economies. • They also preserve important ecological and archaeological information such as pollen records and human artefacts Challenges to the peatland conservation include: ● Large areas of peatlands are currently drained for agriculture, forestry, and, to a lesser extent, peat extraction. Drainage in peatlands results in the emission of carbon from the peatlands to the atmosphere. ● Damages and further human interventions in peatlands lead to a decline in plant productivity. ● Peat surface gets subsided due to agriculture and artificial forestry. This can have a significant effect on the carbon emission from the peatlands. ● Damage to peatlands also results in biodiversity loss. The productivity of the ecotone will be affected.UN Food and Agriculture Organization presented 10 point action plan to conserve and restore the peatlands worldwide. These include assessing the distribution and state of peatlands, measuring and reporting emissions from peatlands, protecting and restoring peatlands with targeted financial support etc. These steps are vital to helping restore global ecological resilience. Recognising the importance of Peatlands, the Brazaville declaration was enacted to protect the peatland ecosystems. 3. Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyze the impact of sand mining along the Indians coasts, citing specific examples. (10 Marks)Answer:At 13 per cent of the world reserves, India has the third-largest stash of beach sand minerals and meets 6-7 per cent of global demand. Union Ministry of Environment, Forest and Climate Change (MoEF&CC) has recently advised the private companies to
Non – Aligned Movement (NAM)
Why in the NEWS? Recently, the Prime Minister of India participated in the Online Summit of Non-Aligned Movement (NAM) Contact Group 2020 themed “United against COVID-19”. This is the 1st time PM Modi is taking part in a NAM meeting since 2014 when he became the PM. Covid-19 pandemic and India’s renewed interest in NAM, have earmarked the relevance of Non-Alignment Movement (NAM) to pursue effective work programmes at the international level. Non-Aligned Movement was formed during the Cold War as an organization of States that did not seek to formally align themselves with either the United States or the Soviet Union but sought to remain independent or neutral. The History of Non Aligned Movement – NAM The end of World War II was followed by various incidents like strengthening of Socialist bloc, collapse of colonial empires, the emergence of a bipolar world and the formation of two military blocks (NATO and the Warsaw Pact). In this context, the underdeveloped countries felt the need to take joint efforts for the common defense of their interests, the strengthening of their independence and sovereignty, and also to express a strong commitment with peace by declaring themselves as “non-aligned” from either of the two military blocks. Bandung Conference 1955 – The concept of NAM has its origin in the Asia-Africa conference held in Bandung, Indonesia. Belgrade Conference 1961 – NAM was founded and held its 1st Conference in Belgrade, Yugoslavia under the leadership of Josip Broz Tito of Yugoslavia, Gamal Abdel Nasser of Egypt, Jawaharlal Nehru of India, Kwame Nkrumah of Ghana, and Sukarno of Indonesia. The purpose of the organization was enumerated in Havana Declaration of 1979 – to ensure “the national independence, sovereignty, territorial integrity and security of non-aligned countries” in their struggle against imperialism, colonialism, neo-colonialism, racism, and all forms of foreign subjugation. Presently, NAM has 120 members. There are 17 countries and 10 international organizations that are Observers at NAM. The Founders of NAM have preferred to declare it as a movement but not an organization in order to avoid bureaucratic implications of the latter. NAM does not have a permanent secretariat or a formal hierarchy. Its administration is rotational and non-hierarchy. Read Full GS Notes Objectives of NAM NAM has sought to “create an independent path in world politics that would not result in member States becoming pawns in the struggles between the major powers”. The primary objectives focused on support of self-determination; national independence; the struggle against colonialism, neo colonialism; disarmament; socioeconomic development and the restructuring of the international economic order; as well as international cooperation on an equal footing. However, the disintegration of USSR led to the formation of a Uni-polar world dominated by the US. With the end of cold war and end of colonialism & apartheid, it was seen that non-alignment lost its relevance as it failed to adjust itself to the changing global order. Has NAM lost relevance? – Criticisms Changing Geopolitics – NAM is seen as based on alignments rooted in the legacies of colonialism and the ideology of the Cold War. With the end of cold war and changing world order NAM is seen as losing its relevance. Pragmatism by Member Nations – Most of the NAM countries, India in particular, have integrated themselves to varying degrees within the liberal economic order and have benefited from it. India joining the Quadrilateral Security Dialogue led by US, and Shanghai Cooperation Organisation led by China has shown India’s balancing approach in new world order. Low Effectivity – Inability to adequately address problems and threats faced by the developing world has reduced the confidence in and credibility of the movement. Nuclear Proliferation – India has become a member of the G20 and has declared itself as a nuclear weapons power and has for all practical purposes abandoned the call for global nuclear disarmament. Lack of enough agreements or partnerships among the members on policies required to address challenges related to ensuring peace, security, and economic development of developing countries. Alternative platforms like BRICS, IBSA, SCO and G20 etc have emerged with overlapping agendas, reducing need and scope for NAM. The 21st-century world order is significantly different from that of the 20th-century. The importance of NAM, nevertheless, should not be undermined because it is a significant force that supported third world countries against western imperialism, coercion, and domination. Though the world has changed, the problems have remained almost the same. In this context, NAM can prove its worth by striving to work for the emerging contemporary issues. How is NAM still relevant? New Cold War – World has again moved towards bi-polarity, one led by US and other by China-Russia. This can be reflected in Trade War, Quad initiative, Indo-pacific narrative, emergence of Shanghai Cooperation Organisation, naval presence in the Indian ocean, etc. The war-torn Syria is prime example of this, where both US and Russia is asserting power. Resurgence of Colonialism: Neo-Colonialism China’s investment in Africa and Asia through its Belt and Road initiative is criticized for being neo-colonialism in nature whereas NAM can help in establishing the ethos of collective action. Restructuring and Democratization of UN – NAM countries form 2/3rd of the membership of the UN General Assembly, and hence, it can form an important voting bloc. NAM, along with the G-77 gives superior numerical strength to developing countries and has helped keep many third world issues ahead of the agenda at the UN. Combating Global Issues – NAM becomes relevant to mobilize international public opinion against terrorism, weapons of mass destruction (WMDs), nuclear proliferation, ecological imbalance, safeguarding interests of developing countries in WTO (World Trade Organization) etc. Voice of Developing World – NAM can remains as a global platform where developing and smaller nations can bring to the fore their grievances and press the international community for reforms. If disputes arise between developed and developing nation at any point of a concerned topic for example WTO, then NAM act as a platform which negotiates and conclude disputes peacefully. Importance of Non Aligned Movement NAM for India Support for India’s candidature in UNSC – NAM’s total strength comprises 120 developing countries and most of them are members of the UN General Assembly. Thus, NAM members act as
BRICS
BRICS BRICS is an acronym for 5 emerging economies of the world viz. – Brazil, Russia, India, China, South Africa. The BRIC idea was first conceived by economists of Goldman Sachs as part of an economic modelling exercise to forecast global economic trends over the next half century. The notion behind the coinage was that the nations’ economies would come to collectively dominate global growth by 2050. The main reason for co-operation to start among the BRICs nation was the financial crises of 2008. The crises raised doubts over sustainability of the dollar-dominated monetary system. Evolution of BRICS The leaders of BRIC countries met for the first time on the margins of G8 Outreach Summit 2006. The group was formalised as BRIC during the 1st BRIC Foreign Ministers’ Meeting in 2016. After a series of high-level meetings, the 1st BRIC summit was held in Russia in June 2009. BRIC group was renamed as BRICS (Brazil, Russia, India, China, South Africa) after South Africa was accepted as a full member in 2010. BRICS cooperation in the past decade has expanded to include an annual programme of over 100 sectoral meetings. BRICS does not exist in form of organization, but it is an annual summit between the supreme leaders of these five nations. The BRICS grouping aims to promote peace, security, development and cooperation in the world. It also aims at making a positive impact on the development of humanity and establishing a more equitable and fairer world. Three Pillars of BRICS Political & Security – To enhance cooperation and dialogue on issues of global and regional security, developments in the global political space, cooperation on counterterrorism, as well as the reform of the multilateral system to make it relevant for the 21st century. Aims to pursue reform of multilateral institutions ranging from the United Nations, World Bank and the IMF to the WTO, and now even the World Health Organization. BRICS is attempting to pragmatically shape its counter-terrorism strategy by crafting the BRICS Counter Terrorism Action Plan Economic & Financial – To promote economic growth and development for mutual prosperity through expansion of intra-BRICS cooperation in sectors such as trade, agriculture, infrastructure, small and medium enterprises, energy, finance & banking etc. BRICS cooperation under this pillar is aimed to promote collaborative approaches as well as innovative methods for the attainment of Sustainable development Goals. Cultural & People-to-people exchanges – To enrich intra-BRICS people to people contacts in cultural, academic, youth, sports, business, through regular exchanges. Exchanges among Parliamentarians, young scientists etc. are also held under this pillar of BRICS cooperation. BRICS countries have been the main engines of global economic growth over the years. Over a period of time, BRICS countries have come together to deliberate on several important global and regional issues. Significance of BRICS – General Big Five Nations – it represents 42% of the world’s population, 27% of the land area, 23% of global GDP and 17% of international trade. North-South Bridge – BRICS strives to serve as a bridge between the Global North and Global South. Common Global Perspective – BRICS called for the reform of multilateral institutions in order that they reflect the structural changes in the world economy and the increasingly central role that emerging markets now play. Development Cooperation – developed a common perspective on a wide range of global and regional issues. established the New Development Bank (NDB). created a financial stability net in the form of Contingency Reserve Arrangement. From the Indian perspective, BRICS has emerged as the voice of developing countries, or the Global South. Read Full GS Notes Significance of BRICS for India Safe space to modulate rivalry – The grouping provides India and China the opportunity to decouple their strategic contest from the other dimensions of the relationship. During the Doklam standoff of 2017 and the recent Ladakh standoff, both China and India remained engaged through BRICS throughout the entirety of the crisis. Providing a Transcontinental reach – With the presence of Brazil and South Africa in the group, it provides is a low-cost way for India to signal its aspirations as a global power. India remains engaged with the other BRICS countries on its NSG membership. Boosting India’s demand for institutional reforms – BRICS’ repeated calls for reform of multilateral institutions, boosts India’s own assertions in this direction, acting as a multiplier to the country’s own demands for reform. Contribution in creating an Inclusive international financial architecture – India was the main BRICS country behind the establishment of the NDB and has remained the largest beneficiary of NDB loans so far. NDB intends to provide non-conditional financing, unlike the WB and IMF and attempts to rectify the North-South divide to make it more inclusive The NDB will help India to raise and avail resources for their infrastructure and sustainable development projects. Trade dependency – 34% of India’s total imports are from the other four BRICS nations. Challenges faced by BRICS Heterogeneity – The grouping brings together a mix of democratic and authoritarian regimes, with very different societal structures, developmental trajectories, and historical traditions, posing a threat to the viability of the grouping. Internal Conflicts – Group has seen conflicts such as China’s aggression in eastern Ladakh last year which brought India-China relations to their lowest point in several decades. The current pandemic has exacerbated pre-existing differences amongst the BRICS. Aggressive China – Suspicions among members about Chinese regional and global ambition may impact group’s functioning in future. China’s Belt and Road Initiative; adventurism in the neighbouring seas and the passage of a new security law in Hong Kong have created suspicions. China’s image at global level has also been tarnished due to the Covid-19. In this backdrop, it is questionable whether BRICS matter or not. Changing World Order – the growing US-China rivalry, the already complex dynamics between India and China, India’s balancing act with the US, the growing Russia-China linkages, Russia-US tensions — raise the prospects of an ‘internal split.’ Lack of capital – BRICS do not have the funds to outcompete the Bretton Wood Institutions, the World Bank and IMF. Low Intra-country trade – Despite the opportunities and the potential, intra-BRICS trade and investment flows are very low. China Centric – All the countries in the BRICS
Henry Fayol
Henry Fayol is considered as the founder of the ‘Management Process School’. His book ‘General & Industrial Management’(Administration industrielle et générale) offers a theory and principles of management. Administrative Theory Fayol had 2 major views: Science of management should replace the rule of thumb. Universality of Administrative Theory. He classified the totality of Industrial undertaking into 6 functional groups as shown in (fig He believed that except management all the 5 groups are sectional in nature whose functions can be performed in isolation. He identified 5 elements of management which are shown in (fig 2). Planning (Prevoyance)-To anticipate and outlining the path through which the goals can be achieved. Organization- Systematic way of material organization and human organization . Commanding(Directing)-Administration should be able to direct the man power. It should be clear of the responsibilities of the subordinates and authorities it enjoys. Coordination- Bringing harmony among various units and individual functionaries. Control- Ensuring the performance of the workers are within the limits of norms and regulations of organization through techniques of reward and punishment. Principles of Administration He states that principles of administration are not rigid. On the contrary, they must be capable of adaptation to various enterprises and settings. He dealt with the functional and structural aspects of an organization through his 14 principles Division of Work : Specialization of labor produces more and better work with the same effort. But he cautioned that the division of work should be optimum otherwise it may lead to overlapping and confusion. Authority & Responsibility:Authority is the right to extract obedience from subordinates.The authority of individual should commensurate with responsibility Discipline: Obedience should be observed in accordance with the standing agreements between the firm and its employees. Unity of Command:It means one subordinate should be accountable to only one super ordinate. This idea is contradictory to Taylor’s ‘Functional foremanship’ where one worker was working under 8 functional foremen. However, Taylor’s foremanship was defended on the idea that one worker had to do one specific job, thus each worker worked under a forman. Unity of direction: One head and one plan for each activity. Subordination of individual interest to general interest: The interest of one employee or group of employees should not prevail over that of the total organization. Remuneration of personnel: The payment should be fair and just and afford satisfaction of both personnel and the firm. Centralisation: The power was concentrated at the hands of higher functionaries. The degree of initiative left to managers varies depending upon top managers, subordinates and business conditions. For instance, if the employer trusts the employee then the employer may decentralize the authority to the employee. Scalar chain (Hierarchy): Hierarchy is a vertical perspective. When all the layers or hierarchies or positions are taken together from top to bottom, then it is referred as the Scalar Chain. Each layer is bind to another layer through a relation called line of control or chain of command. He believed that the line of authority should not be broken, as it enables to maintain authority and discipline the organization. But Fayol came up with an exception called Gangplank, which is a jumping technique in which the concerned official establishes a relation with the immediate superior and they interact directly and solve the problem. 10.Order(Placement): Once the basic job structure has been devised, it is the placing of the right man at the right place. 11.Equity: For the personnel to be encouraged to fulfill their duties with devotion and loyalty there must be equity based on kindness and justice in employer-employee relations i.e, equity in terms of distribution of responsibility and reward. 12.Stability of tenure: Tenure is critical to the growth of organization as it should not be short that the position of an individual is undermined. On the other hand, it should not be long that complacency creeps in. Suitable conditions are to be created to minimize turnover of employees. 13.Initiative: The ability to think afresh would act as a powerful motivator of human behavior. 14.Esprit de Corps: Harmony, union among the personnel of an organization is a source of great strength in the organization. UPSC Full Optional Subjects List Need for Administrative Training Fayol is the pioneer in suggesting the need for systematic training in administration. Need for training is everywhere greater in accordance with the position occupied. He suggests training is a continuous process and considers an officer in an organization as a teacher to his immediate subordinate. Criticism Peter Drucker: Criticized Fayol for imposing a mechanistic model of an ‘ideal or universal’ organization on a living business. Anything more complex, more dynamic or entrepreneurial than a typical mining firm demands performance capacities which functional principles do not possess as the empirical base used by Fayol for generating full-fledged theory is too narrow. He proceeded to theorize functionalism only on the basis of functions undertaken in a manufacturing company. Gullick & Urwick: Application of the Unity of command principle would overwhelm the chief executive with problems of coordination. According to Fayol’s principle, conflict can be resolved through the chief executive but for a larger organization, difficulty in communication and coordination would lead to chaos and disharmony. Simon & Chester Barnard: Managerial organization cannot be explained purely in terms of set of principles. They suggest that actual behavior of organizational participants departs in many ways from behavior that is planned. Many thinkers criticized Fayol for overlapping principles Equity and Remuneration are almost the same. Scalar chain encompassed both Unity of Command and Authority & Responsibility. Subordination of individual interest to general interest was quite similar to Centralization.
Administrative Problems Involved in Decision-making
Administrative Problems Involved in Decision-making Read Process and Techniques of Decision Making Administrative Problems Involved in Decision-making Some common administrative problems faced in making decisions and implementing them are as follows Incomplete information regarding the issue and situation Unsupporting Environment both physical and psychological environment prevents the efficacy of the decision making process Non acceptance by the sub-ordinate Ineffective communication Incorrect timing Communication Communication is the most vital ingredient in an administrative organization according to Chester Barnard. In fact, an organization cannot be conceived of without communications. Pfiffner considers the communication as “the heart of management”, while Millet describes it as the “blood stream of an administrative organization” It is an antidote to entropy. Importance Of Communication In Administration It is no exaggeration to say that the communication function is the means by which organized activity like government administration is unified. Indeed, group activity is impossible without communication, because coordination and change cannot be effected Over the years, the importance of communication in organized effort has been recognised by many authors. Chester I. Barnard, for example, viewed communication as the means by which people are linked together in an organization to achieve a common purpose. According to Herbert A. Simon, ‘‘Not only is communication absolutely essential to organization, but the availability of particular techniques of communication will in large part determine the way in which decision-making functions can and should be distributed throughout the organization.’’ Peter Drucker has rightly said “Good Communication is the foundation stone for sound administration.”.He defined communication as “the ability of the various functional groups within the enterprise to understand each other and each other’s functions and concerns’’. Communication Process Communication in organization is a two-way process. Moreover, it is a process that takes place upward, downward and laterally throughout the organisation. The communication process as shown in the following figure, involves the sender, the transmis-sion of a message through the selected channel and the receiver. Types of communication Verbal or Written Communication In the case of verbal communication, everything is oral and there is nothing in black and white. The examples of verbal communication are orders and face-to-face discussions, telephonic talks, conferences, interviews, public speeches, whistle and bells,grapevine, etc. Some of the merit of this form of communication are It is a time and money saving device It is comparatively more effective, because there is the instinct of personal touch in verbal communication There is easy understandability in the case of verbal communication. Even if doubts creep in the minds of any party, they can immediately be removed It is also more convenient to measure the effect of communication. Written communication is always in black and white. Examples of written communications are newspapers, bulletins, letters and memos,reports and forms, manuals and handbooks,posters, payroll inserts, annual reports, written grievances, etc. Written communication is the only way out if both the communicator and the recipient are far off, even beyond telephonic range. If the message to be conveyed is lengthy and needs a thorough clarification, written communication would be more suitable, because there will then be lesser chances to miss anypoint. Written communications provide a permanent record and can at times be referred to as evidence. This is why policy statements are usually issued in the form of printed documents. However, in case of written communication everything is to be translated into black and white, which is likely to consume more time and money. It is not always possible to reduce everything to writing and there are chances of leakage in the case of written communication. Delays and red tapism are some of the other drawbacks of written communication. Read Also Henry Fayol – Administrative Theory Formal and Informal (Grapevine) Communications Formal Communications are those that are ‘official’, that are a part of the recognised communication system which is involved in the operation of the organization. These communications may be verbal or written. A formal communication can be from a superior to subordinate, from a subordinate to a superior, intra-administrative or external. A formal communication may be mandatory, indicative or explanatory. In addition to the formal channels of communication described above, there are informal channels of communication. Informal communication is technically known as the grapevine. It takes place in informal and inter-personal contacts among employees. Informal communication transcends the barriers and boundaries of the formal channels. It is multiple in nature, the same person having social relationships with several other persons in the organization. It exists outside the official network but continually interacts with the formal communication. A grapevine is structureless and information passes through it in all directions. Downward, Upward and Crosswise (Horizontal) Communications Downward Communication: Katz and Kahn have identified five general purposes of superior-subordinate communication in an organization : To give specific task directives about job instructions; To give information about organizational procedures and practices; To provide information about the rationale of the job; To tell subordinates about their performance; To provide ideological information to facilitate the indoctrination of goals. Upward Communication: Unfortunately, this flow is often hindered by administrators in the communication chain who filter the messages and do not transmit all the information—especially unfavorable news—to their bosses. Crosswise Communication: A communications scholar has summarized four of the most important purposes of crosswise (interactive) communication Task coordination Problem solving Information sharing Conflict resolution Morale Morale is used to describe the capacity of the people to maintain belief in an institution or goal or even in oneself. According to Alexander H Leighton “morale is the capacity of a group of people to pull together persistently and consistently in pursuit of common purpose” The high morale is characterised by a state of enthusiasm, confidence and spiritedness and the low morale is characterised by lack of interest, diffidence and weakness. Generally it is believed that high morale will lead to high productivity. However,Prof Keith Davis points out that there is not always a positive correlation between the two. There can be high production with low morale. Research carried out by Renis Likertindicated the fact that there
Group of 20 (G-20)
Group of 20 (G-20) Why in NEWS? For the first time, India will host the annual G-20 Summit in 2022 since its origin in 1999. G20 is an international forum for the Governments and Central Bank Governors from 19 countries and the European Union. It was formed in 1999 to discuss policies relating to financial stability. It brings important industrialized and developing countries to discuss important issues in the global economy. Evolution of G20 After the Asian Financial crisis of 1997-99, the G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting in 1999. It was created in response to both to the financial crises that arose in a number of emerging economies in the 1990s and to a growing recognition that some of these countries were not adequately represented in global economic discussion and governance. Its agenda was expanded since 2008 (amid 2008 Financial crisis) to Heads of governments / Heads of states as well as foreign ministers, along with Finance Ministers. Read Full GS Notes Objectives of G20 policy coordination between its members in order to achieve global economic stability, sustainable growth. to promote financial regulations that reduce risks and prevent future financial crises. to create a new international financial architecture. Features of G20 Members of the G20 are – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. G20 members account for more than 80% of world GDP, 75% of global trade and 60% of the population. G20 has two working tracks: Finance Track: The primary focus is on global economic and financial issues such as monetary, fiscal and exchange rate policies, infrastructure investment, financial regulation, financial inclusion and international taxation. Sherpa Track: The focus is on broader issues such as political engagement, anti-corruption, development, trade, gender equality, energy and climate change. G20 does not have a permanent secretariat or staffs – its agenda and activities are established by the rotating Presidencies, in cooperation with the membership. A “Troika“, represented by the country that holds the Presidency, its predecessor and its successor, works to ensure continuity within the G20 Its membership features both developed and emerging markets from all continents, making it big enough to be globally representative and the world’s most impactful global forum. Importance of G20 Influence on the policies of the countries around the world – G20 allows the leaders of the world’s major economies to work together to lift growth in mutually-supportive ways and align their domestic policies to the decisions taken by the grouping. Support to Developing countries – G20 works with developing countries, particularly low-income countries to support them in implementing their nationally driven policies and priorities which are needed to fulfil international goals. Inclusive Global Growth – G20 plays a critical role in creating an enabling environment for inclusive global growth and development. Its work on ensuring financial stability, promoting growth and avoiding and managing crises is critical in supporting the opportunities. Addresses Diverse issues – It addresses several issues include the advancement of women in the job market, the 2030 Agenda for Sustainable Development, climate change, global health, anti-terrorism and inclusive entrepreneurship, among others. Helps in reshaping the governance of global finance, as done by developing strict rules on the “too big to fail” problem, increasing the lending capacity of the International Monetary Fund (IMF) and collecting richer information on the shadow banking system. Helps in strategic balancing among countries – G20 provides a platform for countries to conduct various bilateral and plurilateral meetings such as JAI (Japan-America-India), RIC (Russia-India-China) which tries to address conflicting interests of various groupings on one platform. India has been a founding member of G20 process and has played an active role in proposing new ideas and finding solutions. Read Full GS Notes India & G20 India’s participation in the G20 process stems from the realization that as a major developing economy India has a vital stake in the stability of the international economic and financial system. India has been actively involved in the G20 preparatory process both at the Sherpas Track and the Financial Track since its inception India’s agenda at the G20 Summits is driven by the need to bring in greater inclusivity in the financial system, to avoiding protectionist tendencies and above all for ensuring that growth prospects of developing countries do not suffer. India has strived to ensure that the focus of the global community remains on the need to ensure adequate flow of finances to emerging economies to meet their developmental needs. Taxing global digital companies – India has made a strong case for adoption of “significant economic presence” concept for taxing global digital companies. India had introduced this concept in the Income Tax Act for taxation of non-residents in India or global digital companies. India remains committed to the G20 process for achieving a stable, inclusive and representative global economic and financial system. Challenges in G20 No Enforcement mechanism – The G20’s toolkit ranges from simple exchanges of information and best practices to agreeing common, measurable targets, to coordinated action. None of this is achieved without consensus, nor is it enforceable, except for the incentive of peer review and public accountability. Not legally binding – the decisions are based on discussions and consensus which culminates in the form of declarations. These declarations are not legally binding. It’s just an advisory or consultative group of 20 members. The exclusivity of its membership has attracted criticism. The group represents a massive share of global economy and its decisions can impact non-member countries. Critics also point at disproportionate representation of African countries. Not all resolutions passed at the G20 Summit are fully implemented as only 10% of world countries are included in G20 decision-making, thereby denting the organization’s authority. G20 authority is also weakened since some major members sometimes fail to fulfil their commitments (e.g., the delay of the IMF reform due to resistance from the U.S. Congress). Boycotting Osaka Track – India, South Africa, and Indonesia
