SECURE SYNOPSIS: 06 MAY 2019

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SECURE SYNOPSIS: 06 MAY 2019


NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.


TopicSocial empowerment, communalism, socialism.

1) “The victims of capitalism have always been the disadvantaged sections of society” Critically analyse.(250 words)

The hindu

Why this question:

The question is in the context of 200th birth anniversary of Karl Marx, which was celebrated  on May 5, 2018,yesterday. The article brings out the wisdom of Marxian philosophy and highlights its significance even as of today.

Key demands of the question:

The answer must discuss how Marxism as a science, as an ideology, and as a methodology keeps demonstrating its relevance every day. One has to analyse why the victims of capitalism have always been the disadvantaged sections of society.

Directive word

Critically analyzeWhen asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.

Structure of the answer:

Introduction

In a few introductory lines define capitalism.

Body

Discuss the following aspects in the answer:

  • What is capitalism ? what are its effects on the society ?
  • Discuss the reasons for presence of class conflict in society.
  • Capture the Indian context.
  • Demerits of Capitalism – unprecedented concentration of wealth in the hands of a few and a marked shift in the actual centers of power. Crony capitalism among the policy makers.
  • What are the dimensions/sectors hit by capitalism? – education, health, policy making, employment and jobs etc.
  • Discuss what needs to be done ? re assert the significance of Marxian philosophy.

Conclusion

Conclude with way forward.

Introduction:

Capitalism is an economic system believed to have been born in the aftermath of the industrial revolution in the eighteenth century Europe. It is based on private enterprise and private ownership of means of production like land, labour, capital etc. as compared to the economic system of Socialism, on the other end of the spectrum, which encourages public or state ownership of means of production. The production and distribution of commodities take place through the mechanism of free markets. Hence it is also called as market economy or free trade economy.

Body:

Capitalism in India has had the following impacts on the society:

  • Increase in corporate power: The benefits in terms of increased growth seem fairly difficult to establish when looking at a broad group of countries.
  • Crony capitalism was soon making fast inroads into the policymaking coteries of India, and this new-found confidence of the private sector bore fruits.
  • The costs in terms of increased inequality are prominent. Such costs epitomize the trade-off between the growth and equity effects of some aspects of the neoliberal Promotes exploitation and social injustice.
  • Increased inequality in turn hurts the level and sustainability of growth. Even if growth is the sole or main purpose of the liberal agenda, advocates of that agenda still need to pay attention to the distributional effects. Capitalist policies result in an expanding carceral state and the criminalization of poverty.
  • According to Credit Suisse Research Institute’s Global Wealth Report, 1% of the Indian population owns 51.5% of the wealth in the country, and the top 10% own about three-fourths of the wealth. On the other hand, the bottom 60%, the majority of the population, own 4.7% of the total wealth.
  • Social sectors: Public education and health are the worst hit by capitalism. Education spending by the Centre has been showing a downward trend — from 6.15% in the 2014-15 Budget to 3.71% in the 2017-18 Budget.
  • Labour-Market at mercy of Corporates: Deregulation of the labour market produces flexibilization and casualization of labour, greater informal employment, and a considerable increase in industrial accidents and occupational diseases.
  • Anti-Democratic: Globalization can subvert nations’ ability for self-determination. Some scholars contend that Capitalism undermines the basic elements of democracy.
  • The replacement of a government-owned monopoly with private companies, each supposedly trying to provide the consumer with better value service than all of its private competitors, removes the efficiency that can be gained from the economy of scale.
  • Environmental Impacts: Trade-led, unregulated economic activity and lax state regulation of pollution lead to environmental impacts or degradation. “The era of neo-liberalization also happens to be the era of the fastest mass extinction of species in the Earth’s recent history.”
  • Consumers instead of Citizens: Instead of communities, it produces shopping malls. The net result is an atomized society of disengaged individuals who feel demoralized and socially powerless. Capitalism holds that market forces should organize every facet of society, including economic and social life, and promotes asocial Darwinist ethic which elevates self-interest over social needs.

However, there are merits of a Capitalist Economy too,

  • The producers are more incentivized to produce their best goods and services due to the feature of the profit motive and the ability to hold private property.
  • The economic growth of an economy is also faster and higher in a capitalist economy. This is because the investors will also invest in projects that are profitable for them. There is no pressure to produce any goods or services if they do not wish to do so for the sake of the public.
  • Since all resources and factors of production are under private ownership they are used in the most productive manner. This results in optimum utilization of resources,
  • Consumers also benefit in a capitalist economy. Firstly they have the freedom to choose whichever products or services they wish to buy. Also, the competition is high and the producers are motivated to make their best products in large quantities at reasonable prices.
  • Capitalism also promotes fundamental rights of freedom and choice for both the consumer and the producers
  • In a capitalist economy, there is an incentive for technological and R&D development.
  • We can expect a higher degree of efficiency and innovation in a capitalist economy than any other economy.

Way Forward:

  • Positive intervention by Government for equitable and sustainable economic development and not complete separation of state and market.
  • A system of taxation that promotes economic equality, encouraging entrepreneurship and setting up venture capital funds to support entrepreneurs from the lower socio-economic strata; running social welfare programs that ensure substantive equality of opportunity by providing affordable quality education and health services.
    • Example: Government of India recognizes this responsibility and hence to encourage entrepreneurship among marginalized sections of society and enhance socio-economic equality, it has started ‘Start-Up India’.
  • The market needs the state, more than the other way around. The market needs internal regulation, in order to function: the state, in the form of the legal system, ensures contracts are enforced.
    • Example: In the form of the police, it prevents theft and fraud. It establishes uniform systems of weights and measures, and a uniform currency.
  • While the system of capitalism has its flaws, regulated by a government that works on social welfare model, capitalism can lead to improved efficiency in enterprise, enhance private investments and can boost economic production while at the same time raising the capital necessary for a government to run its social schemes for the betterment of the poor and the marginalized.
    • Example: the Scandinavian countries have followed the capitalist mode with a strong regulatory regime and social welfare which led to praiseworthy results. Inequality adjusted HDI regularly rank Scandinavian Countries like Norway, Denmark, Sweden and Finland among the top ten countries.
  • Adopting a system that is flexible to change with the need of the time and enable the government to pitch in whenever necessary will help.

Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2) Discuss the Key objectives Pre-conception and Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act. Analyse how effective has the act proven to be till date? Discuss in the light of recent Supreme court judgement.(250 words)

The hindu

Why this question:

In a significant judgement, the supreme court upheld the provision of PC-PNDT Act, 1994 which ‘criminalizes’ non-maintenance of medical records by obstetricians and gynecologists and suspend their medical license. indefinitely.

Key demand of the question:

The answer must appreciate the salient features of the PCPNDT Act 1994 and comment on the performance and effectiveness of the Act. One must also suggest what needs to be done to further the actual agenda of the Act.

Directive:

DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Brief upon the background of the context – highlight the recent SC verdict.

Body:

Body of the answer to discuss the following aspects :  

  • Salient features of Pre-conception and Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act of 1994 –
  • It provides for the prohibition of sex selection, before or after conception. 
  • It regulates the use of pre-natal diagnostic techniques only to detect genetic abnormalities, metabolic disorders, chromosomal abnormalities, certain congenital malformations, haemoglobinopathies and sex linked disorders. 
  • The Central Supervisory Board (CSB) was constituted by the government under Section 7 to review and monitor implementation of the Act and rules made there under 
  • It ‘criminalises’ non-maintenance of medical records by obstetricians and gynaecologists and suspend their medical licence indefinitely. 
  • It mandates compulsory registration of all diagnostic laboratories, all genetic counselling centres, genetic laboratories, genetic clinics and ultrasound clinics. 
  • Any person who puts an advertisement for pre-natal and pre-conception sex determination facilities through any media in electronic or print can be imprisoned and fined.
  • Discuss its performance and related issues – corrupt medical practitioners, illegal medical practice, demand of male child etc.
  • Suggest what should be done ? what steps should be taken to improvise the performance of the Act.

Conclusion:

Conclude with its significance.

Introduction:

The Pre-conception & Pre-natal Diagnostics Techniques (PC & PNDT) Act, 1994 was enacted in response to the decline in Sex ratio in India, which deteriorated from 972 in 1901 to 927 in 1991. The  PNDT Act provides for regulation of  genetic  counselling  centres, genetic  laboratories and genetic clinics  and  also  regulates  pre-natal  diagnostic  procedures. The  medical  professional  running  the  genetic  centre has to be registered under the PNDT Act.

Body:

Key objectives:

The main purpose of enacting the act is to ban the use of sex selection techniques before or after conception and prevent the misuse of a prenatal diagnostic technique for sex-selective abortion.

It also aims to regulate pre-natal diagnostic technique for the useful purpose for which it has been intended, such as:

  • where the age of the pregnant women is above 35 years (advance maternal age)
  • where the pregnant woman has undergone two or more spontaneous abortions or foetal loss.
  • where the  pregnant  woman  had  been  exposed  to  potentially  teratogenic  agents  such  as  drugs, radiation, infection or chemicals.
  • where the  pregnant  woman  has  a  family  history  of  mental  retardation  or physical  deformities  such  as spasticity or other genetic disease
  • The Central Supervisory Board may specify any other conditions as required

In a significant judgment, the Supreme Court has upheld provisions in the anti-pre-natal sex determination law which ‘criminalises’ non-maintenance of medical records by obstetricians and gynaecologists and suspend their medical licence indefinitely. The court held that these provisions in the Pre-conception and Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act of 1994 were necessary to prevent female foeticide in the country.

Effectiveness of the Act:

Positives:

  • Registrations of pre-natal diagnostic clinics saw have considerably risen
  • There has been a definite check on advertisements for sex selection from print media, television and from walls around the country.
  • The SC ruling in 2015 extended this check even to online advertisements hosted by Google, Yahoo etc
  • Efforts of public litigants have lead to effective implementation, e.g.: Maharashtra has seen a significant improvement in the sex-ratio over the years.
  • The 2003 amendment brought ultrasound in its ambit. This had led to a drastic reduction in its indiscriminate and unethical use.

Challenges remain:

  • The Act has the relevant provisions to end sex determination but the problem is that it is not implemented effectively.
  • This is evident from the poor rate of conviction of the offenders.
  • There are only 586 convictions out of 4202 cases registered even after 24 years of existence. It reflects the challenges being faced in implementing this social legislation, the Supreme Court observed.
  • Had the law been enforced effectively the child sex ratio should have improved, but on contrary it has reached its lowest level as per the census 2011 data.
  • This clearly shows the gap in the implementation of the PC&PNDT act.
  • Registration has not been followed by actions, in most states, to prevent sex determination.
  • Medical associations have been making continuous efforts to undermine the law, for continuation of their profiteering practices
  • The non-maintenance of medical records by obstetricians and gynaecologists

Conclusion:

Need of the hour is to promote medical prudence and accountability in private health sector, to cover for the hindrances to PCPNDT Act’s implementation. Moreover, relevant landmark schemes like Beti Bachao Beti Padhao, SSY and their functioning can be interlinked with the Act’s provisions for greater enforcement of both.


Topic:  Effect of policies and politics of developed and developing countries on India’s interests. Disaster and disaster management.

3) Do you think Disaster alleviation efforts in  needs its own ‘Ayushman Bharat’? Critically analyse in the light of recent onset of cyclone Fani that hit eastern coast of India.(250 words)

Livemint

Why this question:

The article discusses in detail the present conditions of preparedness India has with respect to onset of Disasters, the author presses on the need for a comprehensive method to deal, mitigate and stay prepared for disasters like Fani.

Key demand of the question:

The question expects us to elaborate on the need for a comprehensive approach to handle disasters , one has to focus on the aspects of preparedness in terms of provisions of Insurance to the disaster struck with respect to disaster management in the country.

Directive word:

Critically analyzeWhen asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.

Structure of the answer:

Introduction:

Begin with brief background of the situation facing eastern coastal India.

Body:

Discussion should include the following aspects –

  • What aspects of Disaster management are missing in the Indian scenario?
  • Explain why it is time to broaden the idea to cover asset losses of the disaster-struck?
  • Role of National Disaster and Management Authority (NDMA) visavis lack of insurance aspects.
  • Assert that it’s time to move to the next level and work out ways to minimize the loss of property and assets due to disasters. While there are always calls for the government to make ex-gratia payments, the burden is best borne by insurance, a much- neglected tool that spreads the risk of exposure to calamities across large populations.
  • Relate disaster management to the Ayushman Bharat of Health

Conclusion:

Conclude with way ahead.

Introduction:

The eastern coast of India has had to bear the brunt of nature’s fury yet again. Cyclone Fani hit Odisha recently, and though its menace as a storm was downgraded from “extremely severe” to “very severe” a few hours after it made landfall, it has left a trail of destruction that should make us revisit what we mean by “preparedness”.

Body:

Current institutional measures to tackle such incidences:

  • The National Cyclone Risk Mitigation Project (NCRMP), to be implemented with financial assistance from the World Bank, is envisaged to have four major components:
    • Component A: Improvement of early warning dissemination system by strengthening the Last Mile Connectivity (LMC) of cyclone warnings and advisories.
    • Component B: Cyclone risk mitigation investments.
    • Component C: Technical assistance for hazard risk management and capacity-building.
    • Component D: Project management and institutional support.
  • These components are highly interdependent and have to be implemented in a coherent manner.
  • In 2016, National Disaster Management Plan was unveiled to tackle disaster. It provides a framework to deal with prevention, mitigation, response and recovery during a disaster.
  • The NDMA had come up with its National Guidelines of Management of Cyclones in 2008. The basic premise of these guidelines is that the mitigation has to be multi-sectoral.
  • Developing Integrated Coastal Zone Management (ICZM) frameworks for addressing the sustainability and optimal utilisation of coastal resources as also cyclone impact minimisation plans.
  • Ensuring cyclone resistant design standards are incorporated in the rural/ urban housing schemes in coastal areas
  • Implementing coastal flood zoning, flood plain development and flood inundation management and regulatory plans.
  • Coastal bio-shields spread, preservation and restoration/ regeneration plans.
  • There is a need for private sector participation in designing and implementing policies, plans, and standards.
  • Need of Disaster Management program to be inclusive including women, civil society, and academia.

However, these measures are not sufficient as the trails of disaster left by these natural events are expensive. Countries the world over, even prosperous ones such as the US, are struggling to design effective insurance programmes for the disaster struck. Costs need to be kept low for the country’s government as well as citizens, both of which must share the premium fees that would form a pool of funds needed to provide relief.

Measures needed:

  • The government should try to devise its own national disaster insurance policy.
  • Inputs could be taken from the NDMA, insurance companies and the sector’s regulator.
  • The principle of progressive rates would need to apply, since the capacity of a fisherman in Gopalpur to pay a premium may not be the same as that of a merchant in Bhuj.
  • Insurance coverage will give insurers an incentive to push for better information systems, risk analysis and precautionary mechanisms.
  • We need to employ technology, strict following of command structure and most importantly the participation and cooperation of local communities in the affected area.

Conclusion:

Implementing such an insurance scheme for the most vulnerable, particularly the poor, will be of a great help as they will not be pulled into vicious cycle of poverty every now and then the disaster strikes. It provides a modern way to alleviate the misery of the poor and enable a quicker return to normalcy on all fronts.


Topic:  Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

4) What do you understand by currency swap? Discuss the pros and cons of currency swap and explain how it acts as a tool for quantitative easing of the Indian economy ?(250 words)

Livemint

Why this question:

The question is in the light of recent move of RBI of the currency swap. The article discusses in detail as to how the central bank is using swaps as an indirect tool to loosen monetary policy, and in what ways it could result in an inflationary spurt later.

Key demand of the question:

The answer must provide for a detailed narration of the concept of currency swap, pros and cons and how it functions as a tool of quantitative easing with reference to the recent step taken by Reserve bank of India.

Directive word:

DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer

Introduction:

Shortly narrate the context of the question.

Body:

Answers must discuss the following aspects :

  • In brief define what you understand by currency swap – A currency swap between two countries is an agreement or contract to exchange currencies (of the two countries or any hard currency) with predetermined terms and conditions. Often the popular form of currency swap is between two central banks
  • How does currency swap between countries work? – A currency swap is similar to an interest rate swap, except that in a currency swap, there is often an exchange of principal, while in an interest rate swap, the principal does not change hands. In currency swap, on the trade date, the counter parties exchange notional amounts in the two currencies.
  • What is the advantage of currency swap? – help mitigate the risk of unwanted interest rate fluctuations. For example, It may be more expensive to borrow in the United States than it is in Japan, or vice versa. In either circumstance, the domestic company has a competitive advantage in taking out loans from its home country. Its cost of capital is lower.
  • Context of India’s currency swap – Under the current swap auction, RBI will buy US dollars from banks totaling to $5 billion. Minimum bid size would be $25 million and in multiples of $1 million thereafter.
  • Discuss and list down the benefits and issues associated, take cues from the article.

Conclusion –

Conclude with way forward and state how the RBI’s latest move is in line with its easy monetary policy stance.

Introduction:

A bilateral currency swap is an open-ended credit line from one country to another at a fixed exchange rate. The country which avails itself of this loan pays interest to the country which provides it, at a benchmark interest rate such as the Libor (London Inter-bank rate).

India has such arrangements with many Asian nations, but the arrangement with Japan is among the largest of such deals, valued at $75 billion. The government hopes that this deal will act as a buffer to shore up the rupee, which has depreciated by 14 per cent against the dollar recently.

Body:

Pros of Currency Swap:

  • The currency swap makes it easier to improve liquidity conditions.
  • Currency swap agreements help in saving for a rainy day when the economy is not looking in good shape.
  • The swap agreements also contribute towards stabilising the country’s balance of payments (BoP) position.
  • The agreement aids in improving confidence in the Indian market.
  • The agreement will aid in bringing greater stability to foreign exchange and capital markets in India
  • This facility will enable the agreed amount of foreign capital being available to India for use as and when need arises.
  • Currency swaps can be done in multiple ways. If the amount that is being exchanged is fully exchanged when the transaction is initiated, at the maturity date the exchange is being reversed. The idea behind this is that in the meantime, until the maturity date, the market may reverse, thus the brokerage house managed the risk.

Cons of Currency Swap:

  • There is one main disadvantage to currency swaps, and this is related to their original purpose.
  • At first, they were agreements to get around exchange controls, but then after these barriers were eliminated, they are being used mainly to hedge investments.
  • The risk when using a currency swap is that at the time the maturity is being reached, the floating interest rate would represent a bigger cost than the whole purpose of the swap. To mitigate this downside, longer term periods are favoured.

Currency Swap as a tool for quantitative easing:

  • Quantitative Easing consists of large-scale asset purchases by central banks, usually of long-maturity government debt but also of private assets, such as corporate debt or asset-backed securities. Typically, QE occurs in unconventional circumstances, when short-term nominal interest rates are very low, zero or even negative.
  • In recent times, the rupee has been falling against the dollar because of its widening current account deficit (the difference between imports and exports of goods and services).
  • This leads to importers upping their demand for dollars far beyond what exporters bring into the country.
  • While the RBI had amassed foreign currency reserves of over $426 billion by April 2018, it has had to use up some of this in recent weeks to prop up the rupee.
  • Though present forex reserves at over $390 billion are still comfortable, having a $75-billion loan-on-demand from Japan gives the RBI an additional buffer to fall back on, should it need extra dollars.
  • The rupee has depreciated the most among Asian currencies amid emerging market volatility triggered by rising US interest rates, pricier crude, geopolitical concerns and intensifying protectionism and trade wars.
  • It has fallen over 13% since start of 2018, having recovered from 74.48 to the dollar earlier this month to close at 73.41.
  • The arrangement will be used only when required, and will help meet short-term liquidity mismatches.
  • India has taken several steps to contain its current account deficit, which could swell to an estimated 2.8% of GDP, and is seen as the root cause of rupee volatility.

Conclusion:

All in all, currency swaps present more advantages than disadvantages and forex brokers are using them as a valuable risk management tool. Used together with other risk management tools like hedging, they help forex brokers navigate through difficult financial periods.


Topic :  Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

5) Despite issues concerning convergence, the WTO needs to be sustained as an international platform to formulate trade rules and bring convergence on divergent matters. Comment.(250 words)

The hindu

Why this question:

India is to host the second mini-ministerial meet of the World Trade Organization (WTO), on May 13-14, 2019. The article is in the backdrop of  interests of developing and least developed countries in global trade.

Key demand of the question:

One is expected to analyse in  detail the issues of convergence at the WTO between the developed and the developing countries. And what needs to be done to overcome it.

Directive word:

Commenthere we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

In a few introductory lines explain the background of the context of the question.

Body:

In brief discuss –

  • Discuss the issues concerning WTO ? – investment facilitation, rules for e-commerce, gender equality and subsidy on fisheries etc.
  • Explain why is there a deadlock between group of countries at the WTO?
  • Discuss the need for negotiating these issues in a convergent manner.
  • Take hints from the article and form a balanced opinion on the issue.

Conclusion:

Conclude that the WTO needs to be sustained as countries need an international platform to formulate trade rules and bring convergence on divergent matters.

Introduction:

India will host the second mini-ministerial meet of the World Trade Organisation (WTO), on May 13-14, 2019. To discuss the interests of developing and least developed countries in global trade, this informal meet will also focus on the accusation by the U.S. that these economies benefit from exemptions meant for the poorer nations.

Body:

The issues concerning WTO:

  • WTO is facing existential crisis during a time when developed economies have adopted protectionist attitude.
  • Inability of WTO to bring together the developed and developing countries to build consensus on Doha Agenda.
  • Growing tension between developing countries who want to address “legacy issues” and inequalities, and developed countries move to new issues like e-commerce and investment facilitation
  • Agreement on Agriculture:
    • The disagreements between developed countries (the European Union and the U.S.) and developing countries (Malaysia, Brazil and India) to discipline the farm regime in their favour continue, thereby threatening the WTO’s comprehensive development agenda.
    • At the 11th Ministerial Conference of WTO, the US blocked a permanent solution on government stockholding for food security purposes, India and developing countries toughened its stand on new issues including e-commerce and investment facilitation for digital trade.
  • Politicisation of the Appellate Body appointment and reappointment process:
    • The quasi-attribution of permanent Appellate Body seats to the U.S. and the European Union (EU).
  • The “Overreaching” or judicial activism of United States:
    • USA has systematically blocked the filling of vacancies for ‘judges’ to the seven-member AB, it has acutely affected the functioning of the body, even as disputes continue to pile up.
    • The US stand will adversely affect the development interest of the developing world.
    • At the Buenos Aires, the developed countries led by the US and the European Union formed groups on e-commerce, investment facilitation and MSMEs within the WTO with more than 70 members in each group.
  • Non-tariff Barriers:
    • Developed countries design and implement stringent non-tariff measures (NTMs) which exacerbate the problems faced by poor countries that are willing to export. NTMs significantly add to the cost of trading.
    • However, the costs of acquiescence with many NTMs are asymmetrical across exporters because compliance depends on production facilities, technical know-how and infrastructure — factors that are usually inadequate in developing economies.
    • These countries are, therefore, unable to compete in international markets and hardly gain from sectors with comparative advantage such as agriculture, textiles and apparels.
  • Trade:
    • There is a trade war between US and China despite both being a member of WTO. This negates the core non-discriminatory principle of WTO.
    • US and China have imposed counter-productive duties, accusing each other of harming their domestic interests. WTO has not been able to prevent the trade wars despite best efforts and has been labelled as a talk shop.

The need for negotiating these issues in a convergent manner:

  • Multilateral agreements within the WTO framework have far-reaching implications on global trade unlike bilateral deals.
  • The economies of the developing and less developed world (with little bargaining power) were unable to gain market access in most of the developed economies (which were influential in negotiations), especially when it came to agricultural commodities.
  • Outside the WTO system, weaker countries will be disadvantaged.
  • Regionalism cannot be an alternative. Regional trade groups have succeeded in some places and they have not elsewhere.
  • India’s own experience with bilateral trade agreements has not always been good.
  • The world therefore benefits from a multilateral trade body –though a fairer one than the WTO of the 1990’s.
  • A weakened EU and Britain need a robust multilateral system

Way forward:

  • WTO needs to reinvent itself, focusing on issues where consensus can be built.
  • WTO needs to strengthen the dispute settlement mechanism as there are issues in appointment of judges in new appellate body.
  • WTO needs to enhance discussion mechanism by introducing wider consultations. It has been a long-standing complaint by the smaller participants that the consultations or decision making is limited to the green room of DG of WTO.
  • There is a need of free trade is required more by developing countries like India than developed countries.
  • There is need for the structural reform in the WTO functioning as multilateral trading system. Despite WTO being a democratic organization, there is a need to make it more effective in protecting the interests of small nations against stronger countries.
  • Transforming the global trading system WTO so that it could promote shared prosperity among all the countries.
  • The much wanted need around the world is structural transformation which is a jobs-and-development-focused digital industrialisation strategy
  • Development and inclusiveness must remain at the heart of WTO’s work.

Conclusion:

The Delhi meeting can be a breakthrough if members negotiate these issues in a convergent manner. The time is opportune for developing countries to voice their concerns and push for a stable and transparent environment for multilateral trade. India must do its homework to focus on the unresolved issues and address the newer ones which are of interest to developed nations, mainly investment facilitation. The WTO needs to be sustained as countries need an international platform to formulate trade rules and bring convergence on divergent matters.


Topic:Awareness in the fields of Space.

6) “Space start-ups are the new sunrise industry”. Comment(250 words)

The hindu

Why this question:

The question is in the backdrop of the coming of NewSpace India Ltd. (NSIL) as a commercial entity of Department of space along with the existing Antrix – the commercial arm of Indian department of space.

Demand of the question:

This question seeks to examine the coming of space start ups as the new sunrise sector. In the last few years India has witnessed a boom and more than a dozen space focused startups have emerged. In such a scenario the coming of commercial arms makes a difference. One has to suggest and highlight the importance of such entiites.

Directive word:

Commenthere we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction

Start with brief introduction of the space industry in India.

Body

Discuss the following points in detail:

  • Background – In February 2019, the Union Cabinet had cleared a new business arm for Department of Space (DoS). On March 6, 2019, the DoS registered NewSpace India Ltd. (NSIL) as its commercial entity.
  • NSIL is the second commercial entity of the Department of Space (DoS) after Antrix Corporation Limited, which was set up in 1992 to market the products and services of the Indian Space Research Organization (ISRO).
  • What is the mandate of NSIL ? how will it effect space industry ?
  • Significance of Space startups in Indian scenario.

Conclusion

Conclude with way ahead.

Introduction:

The Indian space program was established with a very different goal in mind. Unlike its western counterparts where the space industry began and evolved due to military expenditure during the Cold War, the Indian space program mainly focused on achieving self-reliance that would help solve the problems of the nation.

The Indian space program dates back to 1969, when the Indian Space Research Organization (ISRO) was established. Since then, the Indian space program has come a long way. In 2018, the 100th satellite launched helping India establish itself as one of the fast-rising space nations around the world. Still, India’s share of the global $400 billion space market is less than 0.01%. The private space sector has recently started to take shape in India with some of these companies influencing the global space industry.

Body:

The Department of Space (DoS) in India has registered its second commercial entity, NewSpace India Ltd. (NSIL), in Bengaluru. DoS already has a commercial venture, Antrix Corporation Limited, which was set up in September 1992 to market the products and services of the Indian Space Research Organisation (ISRO).

Mandate of NSIL:

  • Newspace India will market space-based products in the country and abroad.
  • It aims to commercially exploit the research and development work of the space agency.
  • This includes the small satellite programme, the small satellite launch vehicle (SSLV) programme and the polar satellite launch vehicle (PSLV) and lithium-ion cells etc.
  • The entity will be a link between ISRO and the industry and help transfer its technologies to private firms for a fee.
  • Newspace India will play a different role since Antrix is solely involved in commercial launches of foreign satellites

Significance of Space startups in Indian scenario:

  • There are over a thousand space startups all around the world. India’s share of these startups remains less than 1%.
  • Indian Space Research Organization (ISRO) is increasingly looking for collaboration with the private sector to increase the number of satellites, explore more research-related opportunity areas and to overcome manpower and budgetary constraints.
  • ISRO plans to double the number of satellites launched in the next two years and this would necessitate active involvement and participation of the private sector.
  • The current manpower of ISRO is less to meet the increasing demands of satellite launches and the heightened expectations that will arise, and hence the involvement of the emerging private sector becomes crucial.
  • In the past two decades, through a combination of technology, policy, and will, governments of more than a dozen countries have successfully transferred many space operations to the private sector and it has yielded good results.
  • Collaboration with private players is vital for capacity building, cost reduction and getting an extra mile cutting-edge advantage.
  • Since ISRO is making a lot of satellites, and a large chunk of its manpower is involved in manufacturing and launch vehicles, so active involvement of the private sector would also mean that ISRO can devote more time to core research.
  • With the introduction of the new Space Activities Bill, the Indian government has also opened up opportunities for the private sector and made it much easier for them to sustain and thrive.
  • The principal propellant of growth in the private space sector would be the medium and small industries because the big industries focus mainly on system integration.
  • With initiatives such as Make in India, Digital India, and Startup India, the government has been able to push the startup sector. What is now needed is to frame a program exclusively for space startups that will benefit the space entrepreneurs and help them make an impact in the space industry.

Potential advantages of rising Space industry:

  • Adding an edge to India’s foreign policy as our space capabilities can be a part of our initiatives to foster new relationships,
  • Avoiding the outflow of tax-payer’s money to foreign hands from where we procure turnkey products and services,
  • Creating more opportunities for foreign direct investments (FDI), as well as new jobs for highly-skilled labour market,
  • Empowering India’s defence system by equipping it with space technology, and allowing armed forces to procure defence products and services indigenously, and
  • Reversing the brain-drain from India.

Conclusion:

To thrive in this throttling competition and be head-and-shoulders above others in the same segment, innovative research has to be fostered and dynamic players have to be brought onboard. This is not possible without engagement, collaboration, partnership and devolving some of the roles to the private industry

Extra Information: Indian space SME industry is valued at just $48 million but is expected to expand at a quick pace. Some of the space-related Indian startups that are already making a mark in the market are:

  • A small satellite developer Dhruva Space joined hands with a German company called the Berlin Space Technologies last year to establish India’s first factory to manufacture satellites for non-telecom commercial applications such as disaster management, vehicle and flight tracking, predictive analytics and imaging. It aims to manufacture 10 to 12 satellites every year.
  • Team Indus, an aerospace startup, won $1 million prize in the Google Lunar XPrize competition in the ‘Landing Milestone’ category. It was the only Indian team to compete in the competition where different teams had to land a robot on the moon by December 2016.
  • Antara Space signed a satellite procurement agreement with the UK’s Dauria Aerospace in July 2014 to develop two small geostationary communication satellites for broadcasters.
  • Earth2Orbit is India’s first private space startup that offers earth observation products and launch facilitation services to different companies.
  • With the launch of ExseedSAT 1, Exseed Space has become the first Indian privately-funded startup to successfully send a satellite into space.

 


Topic: Ethics and Human Interface: Essence, determinants and consequences of Ethics in human actions; dimensions of ethics; ethics in private and public relationships.

7) The relationships between ethics  and trust is mutually reinforcing. Comment. (250 words)

Ethics by Lexicon

Why this question:

The question is intended to evaluate  the interrelationship shared by the qualities of – ethics and trust and in what way they are mutually reinforcing.

Key demand of the question:

The answer must discuss simply how ethics and trust are related.

Directive word:

Commenthere we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

In a few introductory lines appreciate  what you understand by ethics and trust. define the terms.

Body:

  • Explain – What is the Relationship Between Ethics and Trust?
  • Proactive ethics is part of what it takes to build trust.
  • Building trust is part of what is required to maintain good ethics.
  • Ethical behavior and choices help build trust.
  • High trust environments encourage better ethics.
  • When trust is lost, people are less likely to uphold the organization’s ethics.
  • When ethics is absent, trust is elusive.
  • Discuss how If we lead in ways that are trustworthy, we are fulfilling an important part of our responsibility as ethical leaders. When it comes to leading ethically, trust is not a nice-to-have,  it’s a “must have.” If we lead ethically, that lets people know they can count on us, and being able to count on us builds trust with individuals and within the group.
  • Suggest Ethics and trust are inseparable. They travel together.
  • What needs to be done to keep the two to work in tandem.

Conclusion:

Conclude that Keeping  ethics and trust in good shape and relations requires constant attention and daily practice.

Introduction:

Ethics and trust are inextricably linked. Ethics is knowing the difference between what you have a right to do and what is right to do. Trust refers to reliance on the integrity, ability, or character of a person.

Body:

Trust relationships exist at many levels: between two people, among members of a team, between teams, within an organization, between workers and management and even within an entire system, like the financial system or the air traffic control system.

Relationship between Ethics and Trust:

  • Proactive ethics is part of what it takes to build trust.
  • Building trust is part of what is required to maintain good ethics.
  • Ethical behavior and choices help build trust.
  • High trust environments encourage better ethics.
  • When trust is lost, people are less likely to uphold the organization’s ethics.
  • When ethics is absent, trust is elusive.

Ethics and trust are reciprocal and mutually reinforcing. Improving one improves the other. Damaging one damages the other. If we lead in ways that are trustworthy, we are fulfilling an important part of our responsibility as ethical leaders. When it comes to leading ethically, trust is not a nice-to-have,  it’s a “must have.” If we lead ethically, that lets people know they can count on us, and being able to count on us builds trust with individuals and within the group.

Trust and ethics travel together, as if tethered with a bungee cord. One will not travel far without pulling the other with it. For example, if I intentionally improve my ethics, that will also begin to improve trust. If I work on improving trust, that will also increase the chances that my team is watching out for ethics and would alert me if something happened that would put us as risk.

Ethics and trust act in tandem. Think of them as the respiratory system and heart of the organization. If one fails, the other follows. Keeping them in good shape requires constant attention and daily practice. The good news is that just as the human respiratory system and the heart are improved through exercise, organizational ethics and trust can be strengthened through intentional daily practice.

Conclusion:

Trust is essential for social cohesion and well-being as it affects governments’ ability to govern and enables them to act without having to resort to coercion. Consequently, it is an efficient means of lowering transaction costs in any social, economic and political relationship.