Weekly Current Affairs (15th to 21st July 2023) Part - 1 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Electoral Bonds

Context: A recent report by the Association of Democratic Reforms (ADR) an Indian Non-governmental Organization (NGO) established in 1999 situated in New Delhi sheds light on the significant role played by Electoral Bonds as the primary source of donations for political parties in India.

• Between 2016-17 and 2021-22, the seven national parties and 24 regional parties received a total donation of ₹9,188.35 crore from Electoral Bonds.
• The report analyzed donations received from anonymous Electoral Bonds, direct corporate donations, contributions from MPs/MLAs, meetings, morchas, and collection by party units.

What are the Key Highlights of the ADR Report?

Analysis of Donations and Funding Sources:

• The highest donations from Electoral Bonds, totaling ₹3,438.8237 crore, were received in 2019-20, the year of the general elections.
• The year 2021-22, which witnessed 11 Assembly elections, saw donations worth ₹2,664.2725 crore through Electoral Bonds.
• Out of the total donations of ₹16,437.635 crore received by the 31 political parties analyzed, 55.90% came from Electoral Bonds, 28.07% from the corporate sector, and 16.03% from other sources.

National Parties:

• National parties experienced a significant surge in Electoral Bond donations, witnessing a 743% increase between FY 2017-18 and FY 2021-22.
• In contrast, corporate donations to national parties increased by only 48% during the same period.

Regional Parties and Electoral Bond Contributions:

• Regional parties also witnessed a substantial proportion of their donations coming from Electoral Bonds.

Power-Biased Donations of Electoral Bond:

• BJP, as the party in power, secures the highest donation among national political parties. More than 52% of the BJP's total donations were sourced from Electoral Bonds, amounting to ₹5,271.9751 crore.
• The Congress secured the second-highest Electoral Bond donations, with ₹952.2955 crore (61.54% of its total donations), followed by the Trinamool Congress with ₹767.8876 crore (93.27%).

What are Electoral Bonds?

About:

• The electoral bonds system was introduced in 2017 by way of a Finance bill and it was implemented in 2018.
• They serve as a means for individuals and entities to make donations to registered political parties while maintaining donor anonymity.

Features:

• State Bank of India (SBI) issues the bonds in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.
• Payable to the bearer on demand and interest-free.
• Purchased by Indian citizens or entities established in India.
• Can be bought individually or jointly with other individuals.
• Valid for 15 calendar days from the date of issue.

Authorized Issuer:

• State Bank of India (SBI) is the authorized issuer.
• Electoral Bonds are issued through designated SBI branches.

Eligibility of Political Parties:

• Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and have secured not less than 1% of the votes polled in the last general election to the House of the People or the Legislative Assembly, are eligible to receive electoral bonds.

Purchase and Encashment:

• Electoral Bonds can be purchased digitally or through cheques.
• Encashment only through an authorized bank account of the political party.

Transparency and Accountability:

• Parties must disclose their bank account with the Election Commission of India (ECI).
• Donations are made through banking channels, ensuring transparency.
• Political parties are obligated to explain the utilization of the funds received.

Benefits:

• Enhanced transparency in political party funding.
• Accountability in disclosing donation utilization.
• Discouragement of cash transactions.
• Preservation of donor anonymity.

Challenges:

• Electoral bonds are donations to political parties that hide the identity of the donors and recipients. They may compromise the right to know, which is part of the right to freedom of expression under Article 19 of the Constitution.
• Anonymity may be compromised by government access to donor data. This implies that the government in power can leverage this information and disrupt free and fair elections.
• Potential for unauthorized donations violating regulations.
• Risk of crony capitalism and infusion of black money.
• Crony Capitalism is an economic system characterized by close, mutually advantageous relationships between business leaders and government officials.
• Loopholes regarding transparency for corporate entities and donation limits.
• As per Companies Act 2013, a company can make a political contribution only if its net average profit of three preceding financial years is at 7.5%. The removal of this clause has raised concerns of black money in political funding through shell companies.

Way Forward

• Implement measures to enhance transparency in the Electoral Bond Scheme.
• Enforce stricter regulations for political parties to disclose and let the ECI examine the donation and make observation regarding both bonds and expenditure.
• Identify and rectify loopholes in the Electoral Bonds to prevent potential misuse, violation of donation limits, and risks such as crony capitalism and black money infusion.
• Continuously monitor the Electoral Bond Scheme through judicial scrutiny, periodic review, and public engagement to address emerging concerns, adapt to changing landscapes, and ensure a more inclusive decision-making process.

National Human Rights Commission and UN Human Rights Council

Context: Recently, the National Human Rights Commission (NHRC) has called for an action taken report from the Odisha government regarding the Balasore train accident.

• Simultaneously, India recently voted in favor of a draft resolution tabled in the United Nations Human Rights Council, condemning and strongly rejecting acts of desecration of the Holy Quran.
• The draft resolution, titled 'Countering religious hatred constituting incitement to discrimination, hostility or violence,' gained support from multiple nations, including Bangladesh, China, Cuba, Malaysia, Pakistan, Qatar, Ukraine, and the UAE. The resolution emphasizes the condemnation of acts of religious hatred and calls for accountability according to international human rights law.

What is the National Human Rights Commission (NHRC)?

About:

• Ensures protection of rights related to life, liberty, equality, and dignity of individuals.
• Rights guaranteed by the Indian Constitution and international covenants enforceable by Indian courts.

Establishment:

• Established on October 12, 1993, under the Protection of Human Rights Act (PHRA), 1993.
• Amended by the Protection of Human Rights (Amendment) Act, 2006, and Human Rights (Amendment) Act, 2019.
• Established in conformity with the Paris Principles, adopted for promoting and protecting human rights.

Composition:

• The Commission consists of a chairperson, five full-time Members and seven deemed Members.
• Chairman is a former Chief Justice of India or a Supreme Court judge.

Appointment and Tenure:

• Chairman and members appointed by the President on the recommendations of a six-member committee.
• Committee consists of the Prime Minister, Speaker of the Lok Sabha, Deputy Chairman of the Rajya Sabha, leaders of the Opposition in both Houses of Parliament, and the Union Home Minister.
• Chairman and members hold office for a term of three years or until they reach the age of 70.

Role and Function:

• Possesses powers of a civil court with judicial proceedings.
• Empowered to utilize services of central or state government officers or investigation agencies for investigating human rights violations.
• Can investigate matters within one year of their occurrence.
• Functions are primarily recommendatory in nature.

Limitations:

• The Commission cannot inquire into any matter after one year from the date of the alleged human rights violation.
• Limited jurisdiction in cases of human rights violations by armed forces.
• Lacks authority to act in cases of human rights violations by private parties

What is the United Nations Human Rights Council?

About:

• An inter-governmental body within the United Nations responsible for promoting and protecting human rights worldwide.
• Established in 2006 by the United Nations General Assembly, replacing the former United Nations Commission on Human Rights.
• The Office of the High Commissioner for Human Rights (OHCHR) serves as the Secretariat and is based in Geneva, Switzerland.

Membership:

• It consists of 47 United Nations Member States elected by the UN General Assembly.
• Membership based on equitable geographical distribution, with seats allocated to different regions.
• Members serve for three-year terms and are not eligible for immediate re-election after two consecutive terms.

Procedures and Mechanisms:

• Universal Periodic Review (UPR) assesses human rights situations in all UN Member States.
• The Advisory Committee provides expertise and advice on thematic human rights issues.
• Complaint Procedure allows individuals and organizations to bring human rights violations to the Council's attention.
• UN Special Procedures monitor and report on specific thematic issues or human rights situations in countries.

Issues:

• The composition of membership raises concerns, as some countries accused of human rights abuses have been included.
• Disproportionate focus on certain countries, such as Israel, has been criticized.
• India's involvement:
• In 2020, India’s National Human Rights Commission submitted its as a part of the third round of the Universal Periodic Review (UPR) process.
• India was elected to the Council for a period of three years beginning 1st January 2019.

Diabetes Mellitus and Tuberculosis

Context: For a very long time, India has been experiencing the burden of two severe Epidemics, Diabetes Mellitus (DM) and Tuberculosis (TB), however few know how deeply these diseases are interlinked.

• Currently, India has around 74.2 million people living with diabetes while TB affects 2.6 million Indians every year.

How Are DM and TB Interlinked?

Risk of Developing Respiratory Infections:

• The DM increases the risk of developing respiratory infections. DM is a major risk factor that increases the incidence and severity of TB.
• Among people with TB, the prevalence of DM was found to be 25.3% while 24.5% were pre-diabetic, in a 2012 study in tuberculosis units in Chennai.

DM Hampers the Recovery of TB:

• DM not only increases the risk of TB but also hampers the recovery process and prolongs the time for TB bacteria to be eliminated from the body.
• The impaired cell-mediated immunity in DM affects the body's ability to fight infections, including TB.

Alters the Defense Mechanism:

• Uncontrolled DM alters the defense mechanisms in the lungs, making individuals more susceptible to TB infection.
• Additionally, the altered functions of small blood vessels in the lungs and poor nutritional status, common in DM, create an environment that facilitates the invasion and establishment of TB bacteria.

Likelihood of Unfavorable TB Treatment Outcomes:

• DM increases the likelihood of unfavorable TB treatment outcomes, such as treatment failure, relapse/reinfection, and even death.
• The coexistence of TB and DM in patients may also modify TB symptoms, radiological findings, treatment, final outcomes, and prognosis.
• The dual burden of DM and TB not only impacts the health and survival of individuals but also places a significant burden on the healthcare system, families, and communities.

What can be done to Tackle Both DM and TB?

• Provide individualized care for TB and DM patients, integrating treatments and addressing comorbidities.
• Improve patient education, support, and nutrition to enhance TB treatment outcomes.
• Strengthen healthcare programs for TB and DM, build resilient and integrated health systems, and use research to inform evidence-based decision-making.

What is Diabetes Mellitus (DM)?

About:

• DM is a disorder in which the body does not produce enough or respond normally to insulin, causing blood sugar (glucose) levels to be abnormally high.
• The name Diabetes Mellitus is often used rather than diabetes alone, to distinguish this disorder from Diabetes Insipidus.
• Diabetes insipidus is a relatively rare disorder that does not affect blood glucose levels but, just like diabetes mellitus, causes increased urination.
• While 70–110 mg/dL fasting blood glucose is considered normal, blood glucose levels between 100 and 125 mg/dL is considered prediabetes, and 126 mg/dL or higher is defined as diabetes.

Types:

Type 1 Diabetes:

• The body's immune system attacks the insulin-producing cells of the pancreas, and more than 90% of them are permanently destroyed.
• The pancreas, therefore, produces little or no insulin.
• Only about 5 to 10% of all people with diabetes have type 1 disease. Most people who have type 1 diabetes develop the disease before age 30, although it can develop later in life.

Type 2 Diabetes:

• The pancreas often continues to produce insulin, sometimes even at higher-than-normal levels, especially early in the disease.
• However, the body develops resistance to the effects of insulin, so there is not enough insulin to meet the body’s needs. As type 2 diabetes progresses, the insulin-producing ability of the pancreas decreases.
• Type 2 diabetes was once rare in children and adolescents but has become more common. However, it usually begins in people older than 30 and becomes progressively more common with age.
• About 26% of people older than 65 have type 2 diabetes.

What is Tuberculosis (TB)?

• Tuberculosis is an infectious disease that can cause infection in your lungs or other tissues.
• It commonly affects lungs, but it can also affect other organs like your spine, brain or kidneys.
• TB is caused by a bacterium called Mycobacterium tuberculosis. The bacteria usually attack the lungs, but TB bacteria can attack any part of the body such as the kidney, spine, and brain.

The three stages of TB are:

• Primary infection.
• Latent TB infection.
• Active TB disease.

Promoting Coal Gasification in India

Context: The Ministry of Coal is considering a Comprehensive Scheme to promote Coal Gasification, aiming to achieve 100 Million Tonne (MT) coal Gasification by FY 2030.

• The Ministry is also considering an incentive to reimburse the Goods and Services Tax (GST) compensation cess on coal utilized in gasification projects for a period of 10 years after the commercial operational date (COD), provided that the GST compensation cess is extended beyond FY27. This incentive aims to offset the inability of entities to claim Input Tax Credit for the same.

What are the Key Points of the Scheme?

About:

• The initiative incorporates a comprehensive set of measures that capitalize on natural resources and demonstrate financial and technical feasibility of Coal Gasification.
• It aims to attract Government PSUs and the Private Sector, fostering innovation, investment, and sustainable development in the coal gasification sector.

Process:

• The selection of entities for the coal/lignite gasification scheme will be carried out through a competitive and transparent bidding process.
• The government will provide budgetary support to eligible Government PSUs, and Private sector enabling them to undertake coal gasification projects.

Significance:

• This initiative holds the potential to alleviate the environmental burden by reducing carbon emissions and fostering sustainable practices, contributing to our global commitments towards a greener future.

What is Coal Gasification?

About:

• Coal gasification is a process in which coal is partially oxidized with air, oxygen, steam or carbon dioxide to form a fuel gas.
• This gas is then used instead of piped Natural Gas, methane and others for deriving energy.
• In-situ gasification of coal – or Underground Coal Gasification (UCG) – is the technique of converting coal into gas while it is still in the seam and then extracting it through wells.

Production of Syngas:

• It produces Syngas which is a mixture consisting primarily of methane (CH4), carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2) and water vapour (H2O).
• Syngas can be used to produce a wide range of Fertilizers, Fuels, solvents and synthetic materials.

Significance:

• Steel companies can reduce costs by replacing expensive imported coking coal with syngas from coal gasification plants in their manufacturing process.
• It is primarily used for electricity generation, for the production of chemical feedstocks.
• The hydrogen obtained from coal gasification can be used for various purposes such as making ammonia and powering a hydrogen economy.

Concerns:

• The syngas process converts a relatively high-quality energy source (coal) to a lower quality state (gas) and consumes a lot of energy in doing so. Thus, the efficiency of conversion is also low.

What is the Need for Promoting Coal Gasification Projects in India?

• The adoption of gasification technology in India can revolutionize the coal sector, reducing reliance on imports of Natural Gas, Methanol, Ammonia and other essential products.
• Currently, India imports approximately 50% of its Natural Gas, over 90% of its total Methanol consumption and around 13-15% of its total ammonia consumption to cater to the domestic demand.
• It can contribute to India's vision of becoming Aatmanirbhar and create a surge in employment opportunities.
• The implementation of coal gasification is expected to make significant contributions to the nation's development by reducing imports by 2030.

Way Forward

• The government should conduct a comprehensive evaluation of the environmental, economic, and social implications of coal gasification projects.
• Continued investment in research and development can drive advancements in coal gasification technology, making it more efficient and environmentally friendly.
• Emphasize the development of a diversified energy mix that includes renewable energy sources, energy efficiency measures, and sustainable alternatives to coal-based energy production.
• Learn from global experiences and best practices in coal gasification and hydrogen economy implementation to ensure sustainable development.

Export Preparedness Index 2022

Context: Recently, NITI Aayog has released the 3rd edition of Export Preparedness Index (EPI) for States/UTs of India for the year 2022.

• The report discusses India’s export performance amid the prevailing global trade context in FY22, followed by an overview of the country’s sector-specific export performance.

What is the Export Preparedness Index?

About:

• EPI is a comprehensive tool which measures the export preparedness of the States and UTs in India.
• Exports are vital for simulating economic growth and development in a country, which necessitates understanding the factors which influence export performance.
• The index undertakes a comprehensive analysis of States and UTs across export-related parameters in order to identify their strengths and weaknesses.

Pillars:

• Policy: A comprehensive trade policy providing a strategic direction for exports and imports.
• Business Ecosystem: An efficient business ecosystem helping states attract investments and create an enabling infrastructure for individuals to initiate start-ups.
• Export Ecosystem: Assess the business environment, which is specific to exports.
• Export Performance: This is the only output-based parameter and examines the reach of export footprints of States and UTs.

Sub Pillars:

• The index also took into consideration 10 sub-pillars: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.
• Features: The EPI is a data-driven effort to identify the core areas crucial for export promotion at the sub-national level (states and union territories).
• It explores and highlights India’s export potential by examining the different contributions made by each state and union territories.

What are the Key Highlights of the EPI 2022?

Performance of States:

Top Performers:

• Tamil Nadu has topped in EPI 2022, followed by Maharashtra and Karnataka.
• Gujarat, which held the top position in EPI 2021 (released in 2022) has been pushed to the fourth slot in EPI 2022.
• Tamil Nadu's performance in terms of export performance indicators, including the value of exports, export concentration, and global market footprint, contributed to its top ranking.
• It has been a consistent leader in sectors such as automotive, leather, textiles, and electronic goods.

Hilly/Himalayan States:

• Uttarakhand secured the top position among hilly/Himalayan states in the EPI 2022. It is followed by Himachal Pradesh, Manipur, Tripura, Sikkim, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram.

Landlocked Regions:

• Haryana topped the chart among the landlocked regions, indicating its preparedness for exports.
• It was followed by Telangana, Uttar Pradesh, Punjab, Madhya Pradesh, and Rajasthan.

Union Territories/Small States:

• Among union territories and small states, Goa ranked first in the EPI 2022.
• Jammu and Kashmir, Delhi, Andaman and Nicobar Islands, and Ladakh secured the second, third, fourth, and fifth positions, respectively.

Global Economy:

• Global trade in 2021 showed signs of recovery from the Covid-19. Factors like increased demand for goods, fiscal policies, vaccine distribution, and easing of restrictions contributed to a 27% increase in merchandise trade and a 16% increase in services trade compared to the previous year.
• The Russo-Ukrainian war in February 2022 slowed down the recovery, impacting sectors like grain, oil, and natural gas.
• Trade in goods saw significant growth, and services trade recovered to pre-pandemic levels by Q4 2021.

India’s Export Trends:

• Despite global slowdown, India’s exports in 2021-22 crossed an unprecedented USD 675 Billion, with trade in goods accounting for USD 420 billion.
• The value of merchandise exports crossed USD 400 billion in FY2022, an ambitious goal set by the government, reaching up to USD 422 billion by March 2022.
• The cause of this performance was manifold. Globally, the increase in prices of commodities and rise in demand from developed countries helped increase India’s merchandise exports.

What are the Key Learnings of the Exports Preparedness Index (EPI)?

• Coastal states have fared the best across all indicators with six out of the top states in the index coming from the coastal region of the country.
• States like Tamil Nadu, Maharashtra, Karnataka, and Gujarat (all of them performing the best in at least one pillar).
• In terms of strengths, the policy ecosystem is a positive story with multiple states adopting the necessary policy measures to drive exports in their states.
• At the district-level, 73 % of districts in the country have an export action plan and over 99 % are covered under the ‘One District One Product’ scheme.
• States have lagged in terms of transport connectivity. The absence of air connectivity hampers the movement of goods across regions, especially in states which are landlocked or geographically disadvantaged.
• The lower performance of the country in terms of Research and Development (R&D) indicates the lack of attention given to the role of innovation in exports.
• The state government has to both continue and extend its support to the industries which are struggling.
• 26 states in the country have registered a decrease in the gross value addition of their manufacturing sector.
• 10 states have registered a decrease in the inflow of Foreign Direct Investment (FDI).
• The lack of capacity-building workshops for exporters hampers their ability to penetrate the global markets as 25 of 36 states have organized less than 10 workshops across a year.
• For the effectiveness of existing government schemes to support states, timely approval of projects is a must.

What are the Recommendations of the EPI?

• Adoption of Good Practices: States should be encouraged to adopt good practices from their peers if they suit their needs. Learning from successful states can help lagging states improve their export performance.
• Investment in Research and Development (R&D): States should invest in R&D to drive product innovation, market-specific product creation, improvement in product quality, cost reduction, and efficiency improvement.
• Establishing dedicated research institutes with regular funding can help states improve their exports.
• Leveraging Geographical Indication (GI) Products: States should capitalize on their unique GI products to establish a presence in the global market. Promoting and improving the manufacturing and quality of GI products can boost exports.
• For example, Kancheepuram Silk products can only be exported by Tamil Nadu and have no competition across the country.
• Diversification of Export Markets: Identifying and promoting high-growth sectors, such as information technology, pharmaceuticals, automotive, textiles, and renewable energy, can enhance India's export potential.