19 November 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – Terrorism: GS II – Topic Internal Security of India

Context:

• At a global summit on terrorism finance on Friday, Indian Prime Minister Narendra Modi claimed that “state backing” is one of the sources of money for terrorist organizations. He went on to argue that certain nations openly sponsor terrorism as a part of their foreign policy.

The meaning of terrorism:

• There has never been a comprehensive definition of terrorism that is recognized by all countries. In the 1970s and 1980s, the United Nations made an attempt to define the phrase, but it was largely unsuccessful due to disputes among its members over the use of violence in fights for national freedom and self-determination. These paradoxes prevent us from reaching a decision.
• The unlawful use of force or violence against people or property with the intention of intimidating or coercing a government, the general public, or any subset thereof is what the FBI classifies as terrorism.

 The Roots of Terrorism

 Terrorism has a number of root causes, including:

• The early ideas of terrorism were developed in the contexts of guerrilla warfare and insurgency, two forms of organized conflict. a political force or organization that operates outside of the government. They choose terrorism because they despise the current system of government. They want to alter the current social order because they don’t like it.
• In the 1990s, analysts originally asserted that a brand-new form of terrorism driven by zeal for a particular religion was on the increase. Al Qaeda, the Japanese cult Aum Shinrikyo, and pro-Christian identity campaigns were among them.

Terrorism-prevention measures:

• In order to prevent and combat terrorism and violent extremism, the UN Office of Counter-Terrorism directs and organizes the work of the whole UN system (UNOCT).
• The UN Counter-Terrorism Centre (UNCCT), a UNOCT subsidiary, promotes international collaboration in the fight against terrorism while assisting the Member States in implementing the Global Counter-Terrorism Strategy.
• The Terrorism Prevention Branch (TPB) of the United Nations Office on Drugs and Crime (UNODC) is a significant participant in international operations (UNODC).
• The Financial Action Task Force (FATF), a global organization that keeps an eye on money laundering and terrorist financing, establishes international standards to combat these illicit actions and the harm they do to society.

Source The Hindu

 2 – Old Pension Scheme: GS II – Topic Government Policies and Interventions

Context:

• The Old Pension Scheme (OPSimplementation) was approved by the Cabinet on Friday, just days before the state’s assembly elections’ first round on December 1, two months after Gujarat Chief Minister Bhagwant Mann announced it.

About Old Pension Scheme:

• In 1998, the Old Age Social and Income Security (OASIS) program was the subject of a report request from the Union Ministry of Social Justice and Empowerment.
• A total of 3.4 crore people, or less than 11% of the estimated 31.4 crores working population, had post-retirement income security.
• We advise investors to invest in one of the three fund categories—growth, balanced, or safe—each of which permits up to 10% equity involvement (up to 50 percent in equity).
• Therefore, the Project OASIS research was the one that initially suggested the New Pension System.
• On December 22, 2003, the Central Government Employees’ New Pension Scheme (NPS) was unveiled.
• As of January 1, 2004, it became a requirement for all new hires joining the federal government.
• The government matched the employee’s defined contribution, which was 10% of base pay, dearness allowance, and other compensation.
• The government’s share of the basic wage and dearness allowance increased to 14% in January 2019.

Issues related to the Old Pension Scheme:

• Pension Funding Obligations: There is no corpus created specifically for pensions that would accumulate wealth over time and serve as a pension fund.
• Problems with Intergenerational Equity Both the 10% state government contribution for those who entered the public sector after 2004 and the pension costs for those who enrolled before that year are covered by the current generation of taxpayers.
• Unsustainable: Pension obligations would rise as a result of annual increases in pension disbursements. But just like current workers, pensioners benefited from indexation, also known as “dearness relief.”
• Increased life expectancy, which would be brought on by greater medical facilities, would result in longer payouts.
• Cost of living burden Over the past three decades, the Center’s and States’ pension liabilities have risen.
• The total cost of state pension obligations has risen over the past 30 years, increasing from Rs 3,131 crore in 1990–1991 to Rs 3,86,001 crore in 2020–21.
• It cannot be deemed smart politics to use a percentage of taxpayer funds to sustain a small number of former government employees.
• States devote a quarter of the tax revenue they receive to pensions, leaving just a modest portion for capital expenditures necessary for the state’s growth and development.
• Pensions for rural areas with few residents: The public sector now employs only 2.2% of India’s 900 million people, yet the bulk of voters is still ineligible for government pensions.

 Source The Hindu

 3 – AIIB: GS II – Topic International Relations

Context:

• The finance minister, Nirmala Sitharaman, urged the Asian Infrastructure Investment Bank (AIIB) on Friday to enhance its investments in cutting-edge technology and renewable energy. She also asked that the international firm have a branch office in India. The finance minister was visited by AIIB President Jin Liqun, who held several significant conversations with him.

About AIIB:

• The Asian Infrastructure Investment Bank (AIIB), a global organization, strives to improve social and economic outcomes in Asia.
• The international agreement known as the AIIB Articles of Agreement, which became effective on December 25, 2015, served as its foundation. The Parties (57 original members) to the Agreement make up the Bank.
• It was released in January 2016 and has its main office in Beijing.
• By the end of 2020, the 103 approved Members of the AIIB represented close to 79% of the global population and 65% of its GDP.
• We can strengthen the links between people, services, and markets by investing in sustainable infrastructure and other productive businesses in Asia and elsewhere. This will ultimately improve the lives of billions of people and lay the groundwork for a better future.

 What are the AIIB’s objectives?

• By investing in infrastructure and other productive industries, Asia may experience improved wealth creation, sustainable economic growth, and infrastructure connectivity.
• To strengthen regional collaboration and partnership in addressing development issues, we collaborate with other international and bilateral development organizations.
• to promote the allocation of public and private funds for development investment, especially for the enhancement of infrastructure and other profitable areas.
• to make the best use of the resources at its disposal to finance such development in the region, particularly the projects and initiatives that will most significantly promote the region’s peaceful economic growth, and to encourage private investment in projects, businesses, and activities that contribute to economic development in the region when private financing is not readily available on agreeable terms and conditions.

Who can become a member of the AIIB?

• The AIIB, which has both regional and non-regional members, is open to all World Bank or Asian Development Bank members.
• The UN refers to people who reside in the Asia and Oceania regions as regional members.
• The AIIB accepts applications from non-sovereign entities in contrast to other MDBs as long as their home country is a member.
• Members of the member countries sovereign wealth funds or state-owned businesses, like the China Investment Corporation, may decide to join the Bank.
• What about the financial capabilities of AIIB?
• The AIIB’s initial capital of USD 100 billion is divided into 1 million shares at a cost of $100,000 each, with 20% paid-in capital and 80% callable capital.
• Paid-Up Share Capital: This sum of money shows how much has already been contributed by investors in exchange for equity shares.
• Shares may be issued to investors by some companies under the condition that the shares will be repurchased at a later time (called-up share capital).
• Because of the more flexible investment terms made possible by this, investors might decide to buy more shares than they otherwise might have.
• China is the Bank’s largest donor, contributing USD 50 billion, or half of the initial capital subscribed.
• India is the second-largest investor with USD 8.4 billion.

 Who is able to cast ballots in the AIIB?

• China is the bank’s largest shareholder, holding 26.61% of the voting shares. Its main rivals are Germany (4.2%), Russia (6.01%), and India (7.5%).
• 75% of the Bank’s total voting power is in the hands of its regional members.
• Although the AIIB’s governance structure is similar to that of other MDBs (multilateral development banks), there are two significant differences: first, the AIIB gives more decision-making authority to regional countries and its largest shareholder, China; second, the AIIB does not have a resident board of executive directors that regularly represents member nations’ interests.

Source The Hindu

 4 – Inter Continental Ballistic Missile: GS III – Topic Science and Technology

Context:

• According to Japanese Prime Minister Fumio Kishida, a suspected intercontinental ballistic missile fired by North Korea on Friday is thought to have landed in Japan’s exclusive economic zones.
• About Ballistic Missiles:
• Using a ballistic trajectory, a ballistic missile can carry one or more warheads to a designated target.
• Only a small portion of the time that these weapons are in flight is guided; the majority is driven by gravity.
• Intercontinental ballistic missiles (ICBMs) are launched on a suborbital trajectory while short-range ballistic missiles remain inside the Earth’s atmosphere.
• Both ships and stations on land may launch ballistic missiles. The ballistic missiles Prithvi I, Prithvi II, Agni I, Agni II, and Dhanush are currently in use by the Indian military.

About Intercontinental Ballistic Missiles (ICBMs):

• A nuclear-capable ICBM must have a minimum range of 5,500 kilometers (delivering one or more thermonuclear warheads).
• Conventional, chemical, and biological weapons can be delivered with varying levels of lethality, akin to nuclear bombs, despite never having been used on ICBMs.
• The only nations that have ICBMs are India, Russia, the United States, China, North Korea, Israel, the United Kingdom, and France.

Source The Hindu