UPSC Daily Current Affairs- 12th November 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-II

Fifth India-US 2+2 Ministerial Dialogue

Subject: International Relations

Why in News?

The Indian Defence Minister and External Affairs Minister met their counterparts from the US government, for the fifth 2+2 Ministerial Dialogue.

About

• The 2+2 meetings have been held annually with the US leaders since 2018. 
• The discussions in the ‘2+2’ dialogue encompassed various topics, including counter-terrorism, and explored avenues for advancing cooperation in cutting-edge technologies like semiconductors and critical minerals.

What are 2+2 meetings?

• The 2+2 meetings signify the participation of two high-level representatives, Ministers holding Foreign and Defence portfolios, from each of the two countries who aim to enhance the scope of dialogue between them.
• Having such a mechanism enables the partners to better understand and appreciate each other’s strategic concerns and sensitivities taking into account political factors on both sides, in order to build a stronger, more integrated strategic relationship.
• India has held 2+2 meetings with ministers from Australia, Japan, the United Kingdom and Russia.

Overview of India and US Bilateral Relations

• Since India’s independence, ties with the United States have weathered the Cold War–era distrust and estrangement over India’s nuclear program. 
  • Relations have warmed in recent years and cooperation has strengthened across a range of economic and political areas.
• Bilateral Trade: The bilateral trade between the two countries has risen by 72 percent between 2017-18 and 2022-23.
  • The US accounted for 18 percent of the gross FDI inflows into India during 2021-22, ranking second behind Singapore.
• Defense and Security: India and the US have signed a troika of “foundational pacts” for deep military cooperation, beginning with the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security Agreement (COMCASA) after the first 2+2 dialogue in 2018, and then the Basic Exchange and Cooperation Agreement (BECA) in 2020.
  • In 2016, the United States elevated India to a major defense partner, a status no other country holds.
• Space: Artemis Accords signed by India established a common vision for the future of space exploration for the benefit of all humankind.
  • The United States and India cooperate through the bilateral Civil Space Joint Working Group. 
• Multilateral Cooperation: India and the United States cooperate closely in multilateral organizations and fora, including the United Nations, G20, Association of Southeast Asian Nations (ASEAN)-related fora, International Monetary Fund, World Bank, and World Trade Organization.
  • Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic network, to promote a free and open Indo-Pacific.
• Nuclear Cooperation: Civil Nuclear Deal was signed in 2005, under the agreement, India agrees to separate its civil and military nuclear facilities and place all its civil resources under International Atomic Energy Agency (IAEA) safeguards. In exchange, the United States agrees to work toward full civil nuclear cooperation with India. 

Challenges

• India’s preference to its strategic autonomy: While its embrace with the U.S. is getting stronger, deeper and more comprehensive, India is also cognisant of the need to maintain its strategic autonomy.
• Conflicting positions: India’s muted criticism of the Russian invasion of Ukraine in 2022 expectedly led to some frustration in the West, raising questions over India’s credibility as a security partner.
• Defence Relations with Russia: The United States has expressed particular concern regarding new streams of arms like the S-400 air defense system, because they fuel Russian power, diminish prospects for interoperability of and secure communications between U.S. and Indian forces, and preclude sharing of existing sensitive weapons technologies.

Conclusion

• The evolving relationship between India and the United States holds significant importance in shaping the global order of the 21st century. 
• To fully unlock the potential of this partnership, both governments must focus on reducing bilateral and multilateral bottlenecks and charting a course for a comprehensive and strategic global alliance. 
• The strengthening of the mechanisms of cooperation between the two militaries is of significance in the context of an increasingly aggressive China.

Source: The Hindu

The U.S.’s Signal of a Huge Digital Shift

Subject: International Relations

Why in News?

The US has decided to withdraw its proposal on digital trade at the WTO to retain the policy space for regulating big-tech firms.

More about the news

• The US proposal to withdraw at the WTO’s Joint Statement Initiative (JSI) on e-commerce meeting, was made in 2019.
• Reasons: The stated motive is the realisation that the U.S. needs domestic policy space to regulate Big Tech and AI, for which data and source code could be important leverage points.
  • The US is said to be reviewing its approach to trade rules in sensitive areas such as data and source code to balance the right to regulate in the public interest and the need to address anti competitive behaviour in the digital economy.

About WTO’s Joint Initiative on E-commerce

• A group of 71 WTO members agreed at the 11th Ministerial Conference in December 2017 to initiate exploratory work towards future WTO negotiations on trade-related aspects of e-commerce. 
• In January 2019, 76 WTO members confirmed in a joint statement their intention to commence these negotiations. 
• They agreed to “seek to achieve a high standard outcome that builds on existing WTO agreements and frameworks with the participation of as many WTO members as possible”.

Outcomes of US’s withdrawal

• Suggesting the future trend:
  • The declaration of withdrawal from WTO’s Joint Initiative on E-commerce represents a watershed moment about how the global digital economy and society will evolve going forward. 
• Reshaping the future of digital trade agreements:
  • Given the US dominant role in the global digital landscape, the decision to withdraw the digital trade proposal is poised to spark a worldwide reassessment of national e-commerce policies, potentially reshaping the future of digital trade agreements. 
  • The key issues will be ensuring ample policy space and revisiting national digital trade strategies.
• May hamper existing members:
  • The US’ change in position on the matter is likely to be a dampener for on-going efforts of the JSI members that includes many developed nations such as the EU, Switzerland, Australia, New Zealand, Japan, Korea, and Canada, to highlight the need for global rules on e-commerce at the WTO 13th Ministerial Conference (MC13) in February 2024. 
• Possibility of US led initiative:
  • U.S. may still push for data flow, source code, and facilities location, related provisions in regional digital trade deals, in some form or the other. 
  • Such deals will be led by the U.S., and, significantly, be limited to its allies. 
  • The Indo-Pacific Economic Framework for Prosperity (IPEF) and the Americas Partnership for Economic Prosperity (APEP) are two such initiatives by the U.S. It is pursuing similar interests through bilateral trade and technology councils

India’s position

• India had refused to be part of the JSI on e-commerce, which is a plurilateral grouping of a limited number of WTO members, over concerns that such rules may strengthen the dominance of large e-commerce companies and go against smaller local companies.
• With China and India being major data generators and China already safeguarding its data, India believes in maintaining flexibility in data-sharing with domestic companies rather than international tech giants
• According to experts, the US’s withdrawal is an opportune moment for India to rethink its strategy of negotiating provisions on digital trade in its FTAs.

Suggestions & Way ahead

• Opportunity for developing countries:
  • Developing countries such as India, should make the most of the new global consensus on the need for strong digital regulations to rein in Big Tech and manage AI, including through policies related to data, source code, and location of computing facilities.
    • The U.S.’s withdrawal along with the EU already employing data and source code related laws in its domestic regulation which are beginning to look quite contrary to its positions at global digital trade forums. 
  • Developing countries should grasp this opportunity with both hands to urgently shape new paradigms for national digital regulation.
• Not to fall into digital Cold War:
  • Developing countries must stoutly resist a new trap of a digital Cold War, whereby they get bound into digital dependencies either with the U.S. or China. 
• Need for strong digital policies:
  • A new digital regulation paradigm should combine with strong digital industrial policies to bolster domestic digital industry. 
  • Countries should aim at creating globally open standards, open protocols, and open digital public infrastructures. 

Way ahead

• All these suggestions together could mean complete and genuine global-scale interoperability. 
• This would enable open global digital value chains, allowing easy switching across global digital trade partners — suppliers or consumers — whether from the U.S., China, or elsewhere.

Source: The Hindu

National Education Day 2023

Subject: Polity and Governance

Why in News?

National Education Day is celebrated every year on November 11 across India to mark the birth anniversary of Maulana Abul Kalam.

About National Education Day:

• It is celebrated on November 11 every year (Since 2008) to mark the birth anniversary of Maulana Abul Kalam Azad, India’s first education minister. 
• Significance:
• The purpose of celebrating National Education Day is to enlighten individuals about the importance of education and its positive impact on the nation’s development and well-being.
• National Education Day 2023 Theme: Embracing Innovation
• Key Facts about Maulana Abul Kalam Azad:
• Maulana Abul Kalam Azad, born on November 11, 1888, was a scholar, educationist, freedom fighter, and senior leader of the Indian National Congress (INC).
• He became the youngest person to serve as President of INC in 1923, at the age of 35.
• He was one of the leading supporters of the non-violent civil disobedience movement that was led by Mahatma Gandhi.
• He was the first Education Minister of independent India. He served in the position from 1947 to 1958. 
• He was instrumental in the establishment of premier educational institutions, including the Indian Institutes of Technology (IITs) and the University Grants Commission (UGC).
• He was posthumously awarded India’s highest civilian honour, Bharat Ratna, in 1992.

Source: The Hindu

Regulating Political Funding: Rules around the world, India’s challenges

Subject: Polity

Why in News?

Campaign financing plays a pivotal role in democratic societies, yet the approach to regulating it must be tailored to the nuances of each country’s political system.

• As exemplified by the United States and India, where political dynamics vary significantly, it is imperative to adopt a framework that aligns with the prevailing political landscape.

Understanding Political Systems:

• US Individual-Centric Elections: In the United States, elections revolve around individual candidates and their campaign machinery, even at the national presidential level.
• India’s Party-Centric Politics: Conversely, India, akin to most parliamentary systems, places political parties at the core of electoral politics. Therefore, India’s campaign finance framework should primarily focus on parties rather than individual candidates.

Key Aspects of an Effective Framework:

A comprehensive campaign finance framework necessitates attention to four critical facets: regulating donations, imposing expenditure limits, public financing, and disclosure requirements.

(A) Donations:

• Regulation and Limitation: To prevent undue influence, some individuals or organizations, such as foreign entities, may be prohibited from making contributions.
• Donation Limits: Donation limits are crucial to thwart the dominance of a few major donors, be they individuals, corporations, or civil society organizations. For instance, the US employs varying contribution limits based on donor types, while the UK relies on expenditure limits.

(B) Expenditure Limits:

• Balancing Political Competitiveness: Expenditure limits serve as a bulwark against a financial arms race among political parties, allowing them to focus on winning votes rather than fundraising.
• Examples: In the UK, political parties are restricted from spending more than £30,000 per contested seat. However, the US’s expansive interpretation of the First Amendment has hindered efforts to impose expenditure limits.

(C) Public Financing:

• Two Approaches: Public funding can be allocated based on predetermined criteria, like Germany’s system that considers past votes, membership fees, and private donations. Alternatively, democracy vouchers, as seen in Seattle, USA, allow voters to allocate public funds to candidates of their choice.
• Challenge: Public funding may complement private donations but does not fully address the task of regulating private money.

(D) Disclosure Requirements:

• Balancing Transparency and Anonymity: Disclosure nudges voters away from electing politicians involved in quid pro quo arrangements. However, mandatory disclosure isn’t always desirable, as it may deter donations by exposing donors to retaliation.
• Anonymity’s Role: Anonymity can protect donors from retribution or extortion. Striking a balance between transparency and anonymity is a challenge faced by many jurisdictions.

Chilean Experiment: Complete Anonymity?

• Chile’s “Reserved Contributions”: Chile’s system aimed at “complete anonymity” allowed donors to contribute to political parties via the Electoral Service, which forwarded the sum without revealing the donor’s identity.
• Coordination Challenges: Despite the intent for complete anonymity, coordination between donors and parties compromised the system’s efficacy.

Balancing Transparency and Anonymity in Political Finance

• An Effective Approach: Many jurisdictions strike a balance by allowing anonymity for small donors while mandating disclosure for large donations.
• Examples: In the UK, political parties must report donations exceeding £7,500 in a year, while the US and Germany set limits at $200 and €10,000, respectively.
• Rationale: Small donors typically have less influence and are more vulnerable to partisan victimization, while large donors may engage in quid pro quo arrangements.

Challenges in India’s Framework

• Lack of Donation Limits: India has no limits on individual or corporate contributions, and the 2017 Finance Act removed official contribution limits.
• Expenditure Limits: Parties can spend freely, albeit not on individual candidates.
• Disclosure Requirements: Parties are only obligated to disclose donations exceeding ₹20,000, creating a loophole as they split large donations into smaller amounts.
• Electoral Bonds: Since 2017, electoral bonds have allowed large donors to hide their contributions.

Changing Dynamics in Indian Politics

• Involvement of Third Parties: India has witnessed a surge in the engagement of political consultancies, campaign groups, and civil society organizations in political campaigns, mirroring trends seen in the US.
• Need for Rethinking: The evolving political landscape necessitates a reevaluation of India’s 20th-century political funding framework.

Conclusion

• Crafting a campaign finance framework requires an astute understanding of a nation’s political system and its nuances.
• By adapting strategies that regulate donations, impose expenditure limits, facilitate public financing, and balance transparency with anonymity, countries like India can ensure that their campaign finance frameworks evolve to meet the challenges of the modern political landscape.

Source: Indian Express

GS-III

Vampire Viruses

Subject: Science and Technology

Why in News?

Several ‘Vampire Viruses’ have been recently discovered on US soil for the first time.

About Vampire Viruses:

• They are pathogens that latch onto other viruses in order to replicate themselves.
• They emerge when a bacteriophage attaches to a soil-based virus, utilising its "life" for independent survival.
• This viral relationship between two pathogens is called a satellite and a helper. The satellite is the infectious strand that relies on the helper for support through its life cycle.
• Satellites depend on both their host organism and helper virus to complete its life cycle.
• The satellite virus depends on the helper virus to build the protective shell that covers its genetic material, called a capsid or to help it replicate its DNA.
• Most satellite viruses contain a gene that allows them to integrate into the host cell’s genetic material after they enter the cell. 
• This enables the satellite to reproduce whenever a helper enters the cell from then on.
• The host cell also copies the satellite’s DNA and its own when it divides. 

What is a Bacteriophage?

• Bacteriophages (BPs) are viruses that can infect and kill bacteria without any negative effect on human or animal cells. They are comprised of a protein capsule around an RNA or DNA genome.
• For this reason, it is supposed that they can be used, alone or in combination with antibiotics, to treat bacterial infections.

Source: Times Now

Deendayal Antyodaya Yojana

Subject: Indian Economy

Why in News?

Deendayal Antyodaya Yojana – National Rural Livelihood Mission and SIDBI signed an MOU that marks a significant milestone in the journey of women-led enterprises.

• The MoU is signed for two years.
• The primary focus of this collaboration is to demonstrate on-the-ground activities that establish a reliable and sensitive support structure for the capacity enhancement of women entrepreneurs (WEs). 
• Furthermore, it aims to institutionalize standard protocols, systems, and procedures for streamlined access to formal finance, as well as the development of a comprehensive framework for new financial products and schemes.

• Enhanced capacity and ability of State Rural Livelihood Missions (SRLM) teams to promote the graduation of seasoned SHG members into micro-entrepreneurs.
• The establishment of a reliable and sensitive support architecture for women-led enterprises.
• The design and implementation of new financial schemes, such as credit guarantees and interest subventions.
• The creation of clear, scalable models for promoting women-led enterprises which can be replicated nationwide.

• It was launched by the Ministry of Rural Development (MoRD) in 2011.
• It aims to reduce poverty by enabling the poor household to access gainful self-employment and skilled wage employment opportunities resulting in sustainable and diversified livelihood options for the poor. 
• The Mission seeks to achieve its objective through investing in four core components:
  • social mobilization and promotion and strengthening of self-managed and financially sustainable community institutions of the rural poor women;
  • financial inclusion;
  • sustainable livelihoods; and
• social inclusion, social development and access to entitlements through convergence.
• The Mission seeks to reach out to around 10 Crore rural poor households in a phased manner by 2022-23 and impact their livelihoods significantly.

• It is the Principal Financial Institution set up under an Act of Parliament for promotion, financing, and development of the Micro, Small and Medium Enterprises (MSMEs) sector in India.
• Mission: To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME ecosystem.
• Vision: To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive.
• Functioning: In order to achieve the same, SIDBI proactively partners with Banks, SFBs, NBFCs, MFIs, and New Age FinTechs for Indirect lending, focusing on multiplier effect / larger reach in financing the MSME sector. 

Source: PIB