Daily Current Affairs 25 July 2020 | UPSC Current Affairs 2020

Current Affairs Of Today Are

• 1) China still on LAC spot
• 2) RBI signs $400 mn currency swap facility for Sri Lanka
• 3) GLOBAL FOREST RESOURCES ASSESSMENT 2020
• 5) COOLING EMISSIONS AND POLICY SYNTHESIS REPORT
• 6) India-Russia Joint Technology Assessment and Accelerated Commercialization Program
• 7) KVIC’s Kumhar Sashaktikaran Yojana
• 8) Indian Railways to RFID Tag all wagons by December 2022
• 9) Increase in Gold Prices
• 10) Rajya Sabha Members Facing Criminal Charges

1) China still on LAC spot

• United States­-based intelligence platform Stratfor has said in a report published on 22d of July that China is yet to either fully disengage or dilute its extensive military build­up at most points along the Line of Actual Control (LAC)
• According to the report has documented 26 new Chinese encampments, 22 new support bases, and
• two new heliports, underlining the unprecedented scale of the Chinese build­up on its side of the LAC. The buildup, India believes, has gone against past commitments to keep the peace on the border. 
• The constructions were a mix of permanent and semipermanent positions
• Some of these have been hosted at existing permanent infrastructure, while others have been established new and consist mainly of large tent camps, vehicle depots, and artillery positions
• Their significance is of course providing direct support to the forward encampments. They are further behind the flashpoints on the LAC, but an important element of China’s deployment as they project military strength to deter Indian counteraction
• The report noted that since May, China has been “accelerating efforts to secure its military presence and access to water rights along the Indian border.”
• “But while it appears Beijing has largely achieved this objective, for now, the harsh Himalayan winter could again escalate its standoff with India by challenging China’s ability to maintain a presence throughout the disputed territory,” it said, noting that “over 10,000 Chinese troops have flooded into the disputed area on the Indian border” this summer.
• Following the four rounds of Corps Commander­level talks, the report noted that China has withdrawn some positions in Galwan Valley, Finger 4 area of Pangong Lake, and Hot Springs. These “limited drawdowns”, the report said, “have so far had little impact on China’s greater military advancement in the border region”, noting that “Chinese troops still maintain a significant presence just kilometers away from Indian positions, effectively upholding Beijing’s deterrent.” The report, however, suggested that “dramatic changes” to operating conditions in winter will test China’s forward deployments

Source: The Hindu

2) RBI signs $400 mn currency swap facility for Sri Lanka

• The Reserve Bank of India has agreed to a $400 million currency swap facility for Sri Lanka till November 2022, the Indian High Commission tweeted
• The Central Bank of Sri Lanka had sought the swap facility to help bolster the pandemic hit island nations' foreign exchange reserves. The RBI’s action comes in the wake of a recent bilateral‘technical discussion’ on rescheduling Colombo’s outstanding debt to India.
•  As u all know that India' forex reserve position is good and it has crossed $500 billion (It has mainly Dollars but also consists of Euro, Yen, etc. currencies which are internationally acceptable)
• Sri Lanka's currency called 'Sri Lanka Rupee' has depreciated in terms of dollars and has crossed, $1 = 185 Sri Lankan Rupee. And 'Sri Lankan Currency' is feeling pressure on the downward side (means the chances are it may depreciate further) because of the Covid-19 crisis.  And Sri Lanka's forex position is also week (its forex reserve is low).
• Now in such a situation, if Sri Lanka buys dollars from the market (for its international trade/import purpose) then its rupee will further depreciate which may not be good for the country. So, Sri Lanka planned for OUT OF MARKET TRANSACTION.  Sri Lanka (through its Central Bank) asked for Dollars/Euros from India (through its Central Bank/RBI) worth $400 million (as India has enough forex reserves) and in return, India will get 'Sri Lankan Rupee' at the present/spot rate of $1= 185 Sri Lankan Rupee. This will boost Sri Lanka's Forex reserve and since it's an out of the market transaction, it will not lead to depreciation of Sri Lankan Rupee. TRY TO UNDERSTAND that if Sri Lanka sells its rupee in the market and tries to purchase dollars then demand of dollar will increase and Sri Lankan Rupee will further depreciate. 
• India can use the 'Sri Lankan Rupee' for its import purpose for importing goods from Sri Lanka. (Try to understand that, in this swap facility, it will not be reversed i.e. India will not get back its dollars in future and India will not have to pay Sri Lank the Sri Lankan currency. THERE are certain other swaps which u may have heard a company's level or between RBI and banks where the Swaps are reversed after some time)
• The Central Bank of Sri Lanka can make drawals of US Dollar or Euro in multiple tranches up to a maximum of $400 million or its equivalent till Nov 2022.
• This swap arrangement/facility will further economic co-operation between the two countries. 
• As China is already investing a lot in Sri Lanka for its strategic ambitions, India should not be behind in providing a helping had to its neighbors. This will boost strategic ties also between Sri Lanka and India.

Source: The Hindu

3) GLOBAL FOREST RESOURCES ASSESSMENT 2020

• GLOBAL FOREST RESOURCES ASSESSMENT 2020 RELEASED BY THE FOOD AND AGRICULTURE  ORGANIZATION (FAO) 
• Assessment is done every five years since 1990. This report assesses the state of forests, their conditions, and management for all member countries.  
• FAO is a specialized agency of the United Nations. 

Key Findings: 

• The world has a total forest area of 4.06 billion hectares, which is about 31% Of the total land area. 
• An estimated 420 million ha of forest has been lost worldwide through  deforestation since 1990, but the rate of forest loss has declined substantially 
• While the highest net gain of forest area in 2010•2020 was found in Asia, Africa has the largest annual rate of net forest loss in 2010-2020. 
• 93% of the forest area worldwide is composed of naturally regenerating forests and 7% is planted. 
• India has ranked third among countries that have gained in forest areas in the last decade. The top 5 countries are China, Australia, India, Chile, Vietnam. 
• The report has credited India's Joint Forest Management program for the significant increase in community•managed forest areas. 
• Globally, 12.5 million people were employed in the forestry sector. Out of this, India accounted for 6.23 million, or nearly 50%. 
• India accounts for 2% of the total global forest area. 

Source: FAO

4) PRIME MINISTER (PM) PUSHES FOR OIL PALM CULTIVATION  IN NORTH-EAST 

• PM appealed to the North-East States to take up oil palm cultivation and also recommended  State governments to set up oil palm missions to promote the cultivation of the oilseed.  
• North-East region has about 2.18 lakh hectares (ha) of land potential for oil palm plantations but only 30,000 ha are covered. 
• The hot and humid climate of North-East is conducive to the oil crop. 
• India imports nearly 68% of its annual edible oil requirements of about 22 million tonnes.  Of this, nearly 60% is palm oil. 
• Palm oil consumption has increased by about 230% over the last two decades and India is responsible for about 17% of global palm oil consumption. 
• Constraints in oil palm cultivation: long gestation period, smallholdings of farmers, high seed cost, erratic monsoon leading to a shortage of water, low productivity, variation in import duty on edible oils, etc. 
• Government efforts so far: 
• National Mission on Oilseeds and Oil Palm aims to bring 125,000 hectares of area under oil palm cultivation through area expansion. 
• Technology Mission on Oilseeds & Pulses. 

Source: The Hindu

5) COOLING EMISSIONS AND POLICY SYNTHESIS REPORT

• COOLING EMISSIONS AND POLICY  SYNTHESIS REPORT by the UN Environment Program and International Energy Agency 
• It is based on an assessment Of development and climate benefits of efficient and climate-friendly cooling. 

Key findings 

• Increasing demand for cooling is contributing to emissions of hydrofluorocarbons (HFCs), C02,  and black carbon. 
• Without policy intervention, direct and indirect emissions from air conditioning and refrigeration are projected to rise 90% above  2017 levels by the year 2050. 
• Coordinated international action on energy-efficient, climate-friendly cooling could avoid as much as 460 billion tonnes of greenhouse gas emissions. 

Key suggestions 

• International cooperation through universal ratification and implementation Of the Kigali Amendment. 
• Kigali Amendment to Montreal protocol aims the phase-down of HFCs (used as refrigerants) by cutting their production and consumption. 
• HFCs do not affect the ozone layer, but they are potent greenhouse gases. 
• Adoption of National Cooling Action Plans that accelerate the transition to climate-friendly cooling. 
• India Cooling Action Plan was launched in 2019 to provide for sustainable cooling. 
• Promotion of building codes and integration of district and community cooling into urban planning. 

Source: UN Environment

6) India-Russia Joint Technology Assessment and Accelerated Commercialization Program

• The Department of Science and Technology has launched the India-Russia Joint Technology Assessment and Accelerated Commercialization Programme in partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI) and Foundation for Assistance to Small Innovative Enterprises (FASIE) of the Russian Federation. The program will connect Indian, and Russian Science & Technology (S&T) led SMEs and Start-ups for joint R&D for technology development and for cross-country technology adaptation.
• The program will run through two annual cycles with up to five projects to be funded under each cycle. Projects are being sought on leading S&T focus areas, including but not limited to, IT & ICT (including AI, AR, VR), Medicine & Pharmaceuticals, Renewable Energy, Aerospace, Alternative Technologies, Environment, New Materials, Biotechnologies, Robotics, and Drones. On behalf of DST, FICCI will implement the program in India.
• Over two years, the Department of Science and Technology will fund up to INR 15 Crores to ten Indian SMEs/Start-ups and FASIE will provide similar funding to the Russian projects. The program will provide access to partial public funding for jointly selected projects with the participation of at least one start-up/SME from India and one SME from Russia. The selected projects will be required to bear partial funding as well, either through their own funds or alternate sources of funding. In addition to financial support, the teams will also be supported through capacity building, mentorship, and business development.

Source: PIB

7) KVIC’s Kumhar Sashaktikaran Yojana

• Union Home Minister Shri Amit Shah distributed 100 electric potter wheels to 100 trained artisans under the Kumhar Sashaktikaran Yojana of the Khadi and Village Industries Commission (KVIC)
• Kumbhar Sashaktikaran Program is an initiative of the Khadi and Village Industries Commission(KVIC) for the empowerment of potters community in the remotest of locations in the country.

Target beneficiaries 

• The program reaches out to the potters in U.P., M.P., Maharashtra, J&K, Haryana, Rajasthan, West Bengal, Assam, Gujarat, Tamil Nadu, Odisha, Telangana, and Bihar.

Benefits provided

• This program provides the following support to potters.
• Training for advanced pottery products
• Latest, new technology pottery equipment like the electric Chaak
• Market linkages and visibility through KVIC exhibitions

Outcomes

• Due to the supply of electric chaaks, the potters have reaped the following benefits.
• More production with fewer hours of work.
• Less noise and better health benefits
• Less power consumption with a smooth transition to higher speeds

Source: PIB

8) Indian Railways to RFID Tag all wagons by December 2022

• Indian Railways is on a mission to RFID Tag all wagons by December 2022.
• The Indian Railways will complete this process of fitting radio-frequency identification tags (RFID) in all the wagons by December 2022. These tags will be used for tracking all wagons.
• So far 23000 wagons have been covered under the RFID project. The Project is still in progress and continuing, although this work has been slowed for some time due to pandemic Covid 19.  The government has fixed the deadline for the fitting of RFID in all the wagons of Indian Railway till December 2022.
• Currently, the Indian Railway is maintained such data manually, which leaves scope for errors. Using RFID devices will be easier for the railways to know the exact position of all the wagons, locomotives, and coaches.
• While the RFID tag will be fitted in the rolling stock, trackside readers will be installed at stations and key points along the tracks to read the tag from a distance of about two meters and transmit the wagon identity over a network to a central computer. In this way, each moving wagon can be identified and its movement tracked.
• With the introduction of RFID, the issue of shortage of wagons, locomotives, and coaches is expected to be addressed more transparently and expeditiously.

Source: PIB

9) Increase in Gold Prices

• Recently, the gold prices crossed Rs. 50,000 per 10 grams after nine years in India.
• Gold prices in India are dictated by international prices. India is the world’s second-largest gold consumer after China.

Reasons:

• Global uncertainties triggered by the Covid-19 pandemic, weak dollar, low-interest rates environment, and stimulus programs have increased the demand for gold.
• Rising virus cases and USA-China tensions have also led to an increase in the gold price.

Gold as Safe Haven:

• Whenever stock markets, real estate, and bonds fall across the world, investors turn to gold to park their funds. It is considered as a safe haven for investors during periods of uncertainties.
• As gold is highly liquid and carries no default risk. It is scarce which has historically preserved its value over time.
• Liquidity describes the degree to which an asset can be quickly bought or sold.
• Further, the supply growth of gold has changed little over time, in contrast to fiat money (paper currency), which can be printed in unlimited quantities to support monetary policy.
• Gold is an integral part of wedding ceremonies in India. It is traditionally used as a hedge against inflation.
• Global economies are considering stimulus to boost growth which may lead to an increase in inflation further.

Return on Gold:

• Historically, gold has generated long-term positive returns.
• The price of gold has increased by an average 14.1% per annum since 1973 after Bretton Woods collapsed and the gold standard system of pegging the currency to gold ended.
• Bretton Woods System was a fixed exchange rate system, under which gold was the basis for the US dollar and other currencies were pegged to the US dollar’s value.
• Gold has surged nearly 40% in the last year while the Sensex (benchmark index of Bombay Stock Exchange) showed a loss of 0.41% in the same period.

India’s Gold Market:

• According to the World Gold Council (WGC), households in India may have around 24,000-25,000 tonnes of gold. Various temples across the country also hold sizable gold holdings.
• The Reserve Bank of India bought 40.45 tonnes of gold in the financial year 2019-20, taking its total holdings of the gold to 653.01 tonnes.
• It is a part of RBI’s forex reserves.
• India’s gold demand in 2019 was 690.4 tonnes compared to 760.4 tonnes in 2018.
• The demand has reduced in 2020 due to the lockdown caused by the pandemic.
• Around 120-200 tonnes of gold are estimated to be smuggled into India every year.

Source: Indian Express

10) Rajya Sabha Members Facing Criminal Charges

According to an analysis by the Association for Democratic Reforms (ADR), about 24% of the sitting Rajya Sabha members have declared criminal cases against themselves.

About ADR

• ADR is an Indian non-governmental organization established in 1999 situated in New Delhi.
• With National Election Watch (NEW), ADR is striving to bring transparency and accountability in Indian politics and reduce the influence of money and muscle power in elections.

Data Analysis: 

• Analysis of 229 of the 233 Rajya Sabha seats showed that 54 MPs had declared criminal cases.
• Among the newly-elected representatives, 28 or 12% had declared serious criminal cases.
• It also found out from their self-sworn affidavits that 89% have declared assets estimated at over Rs. 1 crore.

17th Lok Sabha: 

• According to the finding of the Association of Democratic Reforms, about 43% of members elected to 17th Lok Sabha are facing criminal charges in a court of law, while 84% have self-declared assets worth more than Rs. 1 crore.
• This is the highest number of members of parliament facing serious criminal charges like rape, murder, and kidnapping, since 2004.

Criminalization of Politics

• Criminalization of politics is the involvement of the candidates with criminal charges in politics through the elections and even getting elected to the Parliament and state legislature. It takes place primarily because of the nexus between the criminals and the politicians.

Reasons:

• Lack of Political Will: Section 8 of the Ac the Representation of Peoples (RP) Act, 1951 disqualifies a person convicted with a sentence of two years or more from contesting elections. But those under trial continued to be eligible to contest elections.
• Therefore, to curb the criminalization of politics, Parliament needs to bring an amendment to the Act.
• Use of Muscle and Money Power: Candidates with serious criminal records seem to do well despite their bad public image, largely due to their ability to finance their own elections and further fund their respective parties for different election activities.
• Vote Bank: Criminals are being wooed by political parties and given cabinet posts because their muscle and money fetch crucial votes.
• Narrow Self-interests of Voters: Some voters tend to view such candidates through a narrow prism of being able to represent their community interests by hook or by crook.
• Lack of Choices: Sometimes voters are left with no options, as all competing candidates have criminal records.

Consequences:

• Ineffective Democracy: It affects the efficacy of the democratic process in delivering good governance as lawbreakers become lawmakers.
• Culture of Violence: It introduces a culture of violence in society and sets a bad precedent for the youth to follow.
• Black Money: It also leads to increased circulation of black money during and after elections, diluting probity in public life.

Election Commission's Recommendations: 

• In 1997, Election Commission directed all the Returning Officers (ROs) to reject the nomination papers of any candidate who stands convicted on the day of filing the nomination papers even if his sentence is suspended.
• It recommended that if a person is found guilty by a commission of Inquiry then he shall be disqualified from contesting elections.
• The First Past The Post (FPTP) electoral system shall be replaced by the 2-ballot system under which a candidate is declared elected from a territorial constituency based on the majority principle.
• If no one wins 50 percent of the vote, all candidates except the top two are excluded and voters are asked to vote a second time. In the second round, the candidate who wins the most votes is elected.
• The 2-ballot system will make winning elections very difficult for criminals as they will have to garner the widest possible support from the voters to get the majority votes.
• Along with the 2-ballot system, the negative vote shall also be introduced.

Other Measures:

• Right to recall: It confers the power on the registered voters in a constituency to recall their elected representatives from the house on the ground of non-performance. It could empower the people at the grassroots level. The elected representative could be made truly accountable to the people.
• State Funding of Elections: It means the government would extend financial assistance to the political parties to contest elections in part or in full, in-kind or in cash.
• Various committees (Dinesh Goswami, Inderjeet Committee) on the electoral reforms have recommended for state funding of elections.
• State funding of elections will curb the use of black money to a large extent and thereby will have a significant impact on limiting criminalization of politics.

Way Forward

• There is a need for fixing the governance system and effective regulation of political financing along with bold reforms to break the vicious cycle of criminals and politics. It is crucial to plug the loopholes in the current laws to make the entire governance machinery more accountable and transparent.
• Citizens must vote in elections based on character, conduct, and capability of the candidates and not based on cash, caste, community, and criminal prowess. This could be the ultimate solution to check money power in politics.

Source: The Hindu