20 August 2022

DAILY CURRENT AFFAIRS ANALYSIS

1 – UNCLOS: GS II – International Relations

About:

• 1982 – adoption and signature.
• 1994 marked the year when it went into effect.
• It replaced the four Geneva Conventions of April 1958, which dealt with the high seas, the continental shelf, fishing, and the preservation of living resources on the high seas, respectively.
• The Convention now serves as the governing body for all maritime and marine-related activities.
• Its five primary zones are Internal Waters, Territorial Sea, Contiguous Zone, Exclusive Economic Zone (EEZ), and High Seas. This law is also referred to as the Law of the Sea.
• The only international treaty that establishes a foundation for state sovereignty over maritime areas is UNCLOS. It gives certain maritime zones various legal statuses.

Three new international institutions have been established as a result of the Convention:

• The International Court of Justice for the Law of the Sea.
• The Global Seabed Authority.
• The Commission on the Continental Shelf’s boundaries.

India’s efforts in the Indian Ocean Region (IOR) efforts to protect marine interests and bolster security:

• India advocated unrestricted trade based on the norms of international law, as exemplified particularly in the UNCLOS 1982, as well as freedom of navigation and overflight.
• India promoted the utmost regard for the UNCLOS, which established the global legal framework governing the seas and oceans, as a State party to the UNCLOS.
• India expanded its maritime cooperation with neighbours in line with the government’s goal of promoting regional security and economic progress for all (SAGAR).
• In order to improve marine domain awareness, advance maritime security, and prepare for potential contingencies, measures have been taken, including “Mission based Deployments” of naval ships and aircraft.

Source The Indian Express

2 – Monetary Policy Committee: GS III – Indian Economy

About:

• The Monetary Policy Committee (MPC), a government-appointed body that oversees the RBI, is entrusted with formulating monetary policy utilizing instruments such as the repo rate, reverse repo rate, bank rate, and cash reserve ratio (CRR).
• In accordance with the 1934 amendments to the RBI Act, Section 45ZB, the Central Government of India established it.

Functions:

• The task of choosing the various policy rates, including MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility, falls under the purview of the MPC.

MPC’s composition:

• There will be six people on the committee. Three of the six members will be proposed by the government. No representative of the government will be appointed to the MPC.
• The governor would serve as the ex-officio chairperson, and the other three members would be from the RBI. The deputy governor of the RBI in charge of monetary policy as well as an executive director of the central bank will both be members.

Members’ selection and terms:

• Selection: A Search-cum-Selection Committee headed by the Cabinet Secretary would choose the government nominations to the MPC together with the RBI Governor, the Economic Affairs Secretary, and three specialists in the fields of economics, banking, finance, and monetary policy.
• Members of the MPC are appointed for a four-year term and are not eligible for re-appointment.

How are decisions reached?

• Each member has one vote, and decisions are made by majority vote.
• The committee’s chair will be the governor of the Reserve Bank of India. The governor will have a casting vote in the event of a tie but will not have a veto ability to override the other panel members.

What does RBI monetary policy entail?

• The Reserve Bank of India’s (RBI) policy regarding the use of monetary resources under its control with the aim of increasing GDP and reducing inflation is referred to as its “monetary policy.”
• The RBI is given authority to set monetary policy by the Reserve Bank of India Act of 1934.

What goals does the monetary policy have?

• According to the Chakravarty Committee’s recommendations, India’s monetary policy must take into consideration factors including fostering the expansion of new financial institutions, economic growth, equity, and social justice.
• The RBI continues to work to reduce inflation within a manageable range even as the Indian government strives to speed up the country’s GDP growth rate.
• The Monetary Policy Committee chooses the best policy interest rate to help the nation reach its inflation target in order to accomplish its key goals.

How are monetary policy instruments managed?

• There are two categories of monetary policy instruments: qualitative instruments and quantitative instruments.
• Open Market Operations, Bank Rate, Repo Rate, Reverse Repo Rate, Cash Reserve Ratio, Statutory Liquidity Ratio, Marginal Standing Facility, and Liquidity Adjustment Facility are among the quantitative instruments on the list (LAF).
• Direct action, adjustments to the profit margin, and moral persuasion are all examples of qualitative instruments.

Source The Hindu

3 – Bharat Ratna: GS II – Constitutional Provisions

About:

• India’s highest civilian honour, the Bharat Ratna, was created in 1954.
• Regardless of ethnicity, career, rank, or sex, it is bestowed in recognition of exceptional service in any area of human endeavour.
• The President of India may confer no more than three Bharat Ratna awards each year, on the Prime Minister’s recommendation.
• A medallion and a Sanad (certificate) signed by the president are given to the award recipient. The award is not financial in nature.
• According to Article 18(1) of the Indian Constitution, winners are not permitted to add Bharat Ratna as a prefix or suffix to their names.
• There is no official requirement that only Indian citizens may receive the Bharat Ratna.
• Agnes Gonxha Bojaxhiu, also known as Mother Teresa, a naturalised Indian citizen, received this distinguished award in 1980. Nelson Mandela and Khan Abdul Ghaffar Khan, both non-Indians, also received it in 1987. (1990).

Other Important Details:

• The inaugural recognition came in the form of a circular gold medal with a sun on the reverse (35 mm in diameter).
• The words “Bharat Ratna” were carved in a wreath above the flower in Devanagari script.
• The national motto of India, “Satyameva Jayate,” is engraved in Devanagari script on the reverse of the platinum national emblem.
• The Bharat Ratna medals, as well as other prestigious awards like the Padma Vibushan, Padma Bhushan, Padma Shri, and Param Veer Chakra, are produced by the Kolkata-based Alipore Mint.

Conclusion:

• Regardless of ethnicity, occupation, rank, or sex, the Bharat Ratna is given “in honour of excellent service/performance of the highest degree.” The medal could only be awarded in the fields of the arts, literature, science, and public service, per the 1954 regulations. In December 2011, the rules were updated to cover “any sphere of human endeavour.” The January 1955 act altered the 1954 law, which prohibited posthumous honours. As a result, Lal Bahadur Shastri became the first winner to receive a posthumous award in 1966.

Source à The Indian Express

4 – Free Trade Agreements: Prelims Specific Topic

About:

• It is an agreement between two or more countries to lower import and export restrictions.
• Under a free trade policy, there are little to no government tariffs, quotas, subsidies, or prohibitions that prevent the exchange of products and services across international borders.
• The idea of free trade is the antithesis of economic or trade protectionism.

FTAs and India:

• FTAs were put on hold for India after it decided to leave the Regional Comprehensive Economic Partnership (RCEP), a 15-member FTA organisation that also includes China, Japan, and Australia.
• However, it was announced in May 2021 that negotiations between India and the European Union, which had ceased in 2013, will resume.
• Internal planning is currently underway on both sides to move these numerous work strands ahead.
• India is negotiating bilateral free trade agreements with the United Arab Emirates, the United Kingdom, Australia, and Canada.
• While the FTA with Australia was at a “highly advanced level,” the agreement with the UAE was “near to finalisation.”

Other Details:

• India and Mauritius have a Comprehensive Economic Cooperation and Partnership Agreement (CECPA).
• The South Asia Preferential Trading Agreement (SAPTA), which was established in 1995 to encourage trade among its member nations, is now in effect.
• The South Asian Free Trade Area (SAFTA) is a limited free trade agreement that only covers products and excludes all services, including information technology. A contract was reached stating that all traded commodities would have zero customs fees by 2016.

APTA: Asia-Pacific Trade Agreement:

• It was formerly known as the Bangkok Agreement and was a preferential tariff system designed to encourage intra-regional trade through the exchange of mutually acceptable concessions between member nations.

India’s Foreign Trade Policy Issues:

• Poor Manufacturing Sector: Manufacturing accounts for 14% of India’s Gross Domestic Product in recent years (GDP).
• Comparable figures are 19%, 11%, 25%, and 21% for advanced and developed countries like Germany, the US, South Korea, and Japan, respectively.
• The equivalent percentages for emerging and developing nations like China, Turkey, Indonesia, Russia, and Brazil are 27%, 19%, 20%, 13%, and 9%, respectively, while the share for low-income nations is 8%.
• Unfavorable FTAs: Over the previous ten years, India has signed FTAs with Malaysia, the Republic of Korea, Japan, and the Association of Southeast Asian Nations (ASEAN).
• The general consensus is that these agreements have benefited India’s trading partners more than it has.
• The Atmanirbhar Bharat campaign has worsened the perception that India is turning into a more protectionist closed market economy.

Source The Hindu