14 April 2023

DAILY CURRENT AFFAIRS ANALYSIS

 1 – ASEAN: GS II – International Relations:

Context:

• The Association of Southeast Asian Nations (ASEAN), which has drawn criticism for its silence over the deteriorating situation in Myanmar, angrily condemned the airstrikes on April 13 that resulted in the deaths of numerous civilians.
• With a five-point plan it agreed to with the Myanmar government two years ago, as well as other mediation attempts that have so far failed to stop the violence, Indonesia, the largest economy in Southeast Asia, will preside over the bloc in 2023.

About ASEAN:

• The Association of Southeast Asian Nations was established as a regional organization to promote political and social stability in response to rising tensions among the post-colonial states of the Asia-Pacific.
• The motto of ASEAN is “One Vision, One Identity, One Community”.
• On August 8, Asean Day is observed.
• Indonesia’s Jakarta is home to the ASEAN Secretariat.

What changes have occurred recently?

• The 24th Senior Officials’ Meeting (SOM) between ASEAN and India was held in Delhi.
• India and ASEAN celebrated the 30th anniversary of their dialogue partnership.
• During the second ASEAN Digital Ministers’ (ADGMIN) Meeting with India, the two nations finalized the India-ASEAN Digital Work Plan 2022.

What Country Is the Origin of ASEAN?

• The ASEAN Declaration, commonly referred to as the Bangkok Declaration, was signed in 1967, marking the beginning of ASEAN.
• The founding members of ASEAN are Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
• 1990s – The region’s circumstances altered and its population more than doubled after the end of the Cold War in 1991 and the Vietnam War in 1975.
• Cambodia was joined in 1999, Laos and Myanmar in 1997, Vietnam in 1995, Brunei in 1984, and Laos and Myanmar in 1984.
• In 1995, members decided to create a nuclear-free zone in Southeast Asia.
• In 1997, the ASEAN Vision 2020 was adopted.
• The ASEAN Community was established as a result of the 2003 signing of Bali Concord II.
• The 2007 Cebu Declaration intends to have the ASEAN Community established by 2015.
• The ASEAN Charter is a legal contract that is upholdable in court as of 2008.
• The ASEAN Community will be launched in 2015.

The ASEAN Community is supported by the following three pillars:

• ASEAN’s Political-Security Community.
• ASEAN Economic Community.
• ASEAN’s Socio-Cultural Community.

What objectives does ASEAN hope to accomplish?

• to hasten social growth, cultural development, and economic prosperity for Southeast Asian countries’ prosperous and peaceful societies.
• to maintain the principles of justice, the rule of law, and fairness set forth in the UN Charter in order to promote peace and stability within the region.
• to promote active collaboration and reciprocal assistance on topics of shared concern in the fields of administration, economy, society, culture, technology, and science.
• to collaborate more effectively in order to improve people’s quality of life through more trade, increased agricultural and industrial production, better transportation, and improved communications.
• to promote Southeast Asian research.
• to continue productively and closely collaborating with the current regional and international organizations.

Source The Hindu

2 – Mudra Scheme: GS II – Government Policies and Interventions:

Context:

• The government’s microfinance program, MUDRA, was allegedly mocked on April 13, 2023, according to Prime Minister Narendra Modi, who stated that those who called banks to facilitate loans for huge corporate entities were doing so.
• He asserted that economists overestimate and are unable to understand the relevance of microfinance.

Information about the Pradhan Mantri Mudra Yojana (PMMY)

Goal and Start:

• The government established it in 2015 to provide loans of up to Rs. 10 lakh to small and microbusinesses that are neither companies nor farms.

Financial Context:

• Government-created Micro Units Development & Refinance Agency Ltd., or MUDRA, is a financial institution.
• It finances the non-corporate small business sector through a range of last-mile financial institutions, including banks, non-banking financial firms (NBFCs), and micro financing institutions (MFIs).
• MUDRA does not provide direct loans to individuals or microbusiness owners.

Three things:

• The three products “Shishu,” “Kishore,” and “Tarun” have been produced by MUDRA in accordance with the level of development and financial needs of the beneficiary micro unit.
• Shishu: Offering protection for debts worth up to Rs.
• Kishore: Loans beyond 50,000 rupees and up to 5 lakh rupees are covered.
• Tarun: I will pay back loans totaling up to and including Rs. 10 lakh.
• There is no collateral used to secure these loans.

Achievements:

• Minority community borrowers, SC/ST/OBC borrowers, women company owners, and other disadvantaged groups have all obtained loans. The attention has also been on young businesspeople.
• A survey conducted by the Ministry of Labour and Employment found that between 2015 and 2018, PMMY helped create 1.12 crore net extra jobs.
• Of the 1.12 crore predicted increases in employment, 69 lakh (62%) were women.

Source The Hindu

3 – Dabba Trading: GS III – Indian Economy:

Context:

• Recently, the National Stock Exchange (NSE) published a number of notices naming businesses that participate in “dabba trading.” The stock exchange warned regular investors against subscribing to (or making investments in) any of these unlawful items that offer returns on stock market investments that are indicated, certain, or guaranteed. The exchange does not accept the entities as legitimate members, it was further noted.
• Unofficial trading that occurs away from stock exchanges is referred to as “dabba (box) trading.” Traders speculate on changes in stock prices without really making a transaction to obtain actual ownership of a particular stock, as is done on an exchange. To put it simply, it is betting based on fluctuations in stock values.

Dabba Trading Definition:

• The stock market has become more well-liked over time. It has historically surpassed all other investors in terms of returns, attracting more people to invest in shares in an effort to make money. But occasionally, stock investors opt for a different strategy. The Dabba system in India makes it feasible for investors to buy and sell stocks outside of stock exchanges. When we say that dabba trading is prohibited, we are referring to it as a parallel system.

What is dabba trading, exactly?

• A market for proxies exists in dab ba trading. Investors must open a Demat account with a broker in order to buy and sell stocks on the stock market. But in bucket trading, all translations happen outside of the market’s boundaries. It is risky but lucrative because there are no governing laws or restrictions. In the dabba system, every transaction is settled in cash. Operators of the system take orders directly and record the transactions outside of the stock exchange.
• Profit-related income tax is not present because it is illegal. Traders are also exempt from paying the CTT or STT on transactions involving commodities or securities. SEBI has made a lot of steps to stop the dabba trading system and urge more investors to use conventional channels for investing.

The dabba trading procedure:

• The dabba system is also referred to as box trading and bucket trading in markets in India and the US. The broker suggests investments for the clients to make outside of the stock market. Operators take orders, and cash is used to settle all transactions each week. The operator enters the trade into its records after getting the client’s order. The operator charges a fee to its clients in order to facilitate deals.
• Operating a business in the bucketing sector carries more risk. There are counterparty risks and actions taken by the proper authorities because it is an illegal transaction. The Dabba system is an imaginary market without a settlement guarantee, therefore you could lose all you invest in it.
• In India, the black market is a common place for the sale of copper, crude oil, gold, and silver.
• Dabba trading was declared illegal and prohibited by SEBI under regulations 3 and 4 of the SEBI Prohibition of Fraudulent and Unfair Trade Practices. Both the Indian Penal Code and the Information Technology Act of 2000 carry sanctions for it.

Source The Hindu

4 – NSCN IM: GS III – Internal Security of India:

Context:

• Using the Framework Agreement they signed, the Center and NSCN-IM have decided to try to find a solution to the protracted Naga Political Issue, according to a leader of the NSCN-IM.
• The Centre’s chief negotiator for the Naga peace talks, A.K. Mishra, and a senior NSCN(IM) delegation met in Dimapur behind closed doors.

When did the NSCN first appear on the scene?

• Since the Shillong Accord did not address the issue of Naga sovereignty and required them to adopt the Constitution, many NNC high officials and those working out of Burma did not agree to its signing.
• Three NNC leaders founded the National Socialist Council of Nagaland (NSCN) in 1981 to carry on the armed movement.
• The Ukhrul district of Manipur, Thuingaleng Muivah of the Sema tribe, and Isak Chishi Swu of the Tangkhul Naga tribe.
• S S Khaplang is a member of the Hemis tribe from Myanmar.
• According to the NSCN’s mission statement, Nagaland should be established as a People’s Republic, independent of Indian rule, with Christianity as its main religion and a socialist economic system.
• From its initial cadre of 150, the NSCN swiftly gained 3,000 additional recruits, the most of whom were from the Konyak and Tangkhul Naga tribes.
• Years of internal conflict, violent clashes along ethnic lines, and disputes on the movement’s main goal led to the NSCN splitting into two groups in 1988.
• The NSCN-IM is led by Isak Chishi Swu and Thuingaleng Muivah.
• The NSCN-K of S S Khaplang.
• After Mr. Phizo’s death in 1990 and the division of the NNC, the NSCN-IM gained notoriety as the most powerful insurgent group. It also helped to create smaller groups in other areas.
• It expanded its armed operations with other illegal activities like tax extortion and the smuggling of weapons.
• The NSCN-IM leaders Mr. Muivah and Mr. Swu were met by Prime Ministers P V Narasimha Rao, H D Deve Gowda, and Atal Bihari Vajpayee multiple times in Paris, Zurich, Geneva, and Bangkok. Three succeeding administrations at the Center encountered political obstacles as a result of the NSCN-IM and its actions.

What are the primary requirements of the NSCN-IM?

• The Northeast’s Naga-inhabited territories’ borders would change if all 1.2 million Nagas lived in Greater Nagalim (a sovereign state). Additionally, it includes parts of Myanmar, Assam, Manipur, and Arunachal Pradesh.
• Naga Yezabo (Naga Constitution).
• The Nagaland flag.

Source The Hindu