12-December-2023-Daily-Current-Affairs

SC UPHOLDS REPEAL OF J&K’S SPECIAL STATUS

GS 2 (POLITY AND GOVERNANCE): SOURCE – THE HINDU

The Supreme Court’s recent verdict on the abrogation of Jammu and Kashmir’s special status under Article 370 has stirred considerable debate on its implications for federalism, democratic norms, and constitutional procedures. The unanimous decision of the Constitution Bench led by Chief Justice of India D.Y. Chandrachud has upheld the President’s power to revoke special privileges and reorganize the region into two Union Territories.

Upholding Presidential Power:

• The Supreme Court confirmed the President’s authority to issue a notification ending the existence of Article 370.
• Emphasis on the President’s ability to act unilaterally in special circumstances, without judicial interference in evaluating the cessation of conditions leading to Article 370.

Historical and Collaborative Process:

• Acknowledgment of a gradual and collaborative exercise over 70 years between the Centre and the State to integrate Jammu and Kashmir with the Union.
• The court stressed that the decision in 2019 was not abrupt but a culmination of historical efforts.

Critique of the Verdict:

• The Supreme Court’s decision has faced criticism for perceived deviations from established positions on federalism, democratic norms, and legal processes.
• Concerns raised about the subversion of federal principles and the potential impact on the rights of States.

Reorganization and Constitutional Implications:

• The complex process adopted by the government in 2019, involving the division of Jammu and Kashmir into two Union Territories, faced scrutiny.
• The Court deemed parts of the August 5 order unconstitutional but validated the consequential notification on August 6.

Erosion of Federal Principles:

• The verdict’s interpretation that Parliament, during President’s Rule, can undertake irreversible actions on behalf of the State legislature is seen as eroding federal principles.
• The Court’s decision on non-legislative powers of State Assemblies is viewed as a potential threat to devolved State powers.

Conclusion:

The Supreme Court’s verdict, while affirming Indian sovereignty over Jammu and Kashmir, has triggered concerns about its impact on federalism and democratic processes. Critics argue that the decision weakens institutional limitations on power and may have far-reaching implications for the rights of States. The Court’s avoidance of key questions and the potential risks associated with unilateral actions during President’s Rule raise critical concerns about the balance of power in India’s federal structure.

RYTHU BANDHU AID TO BE CREDITED FROM NEXT WEEK IN TELANGANA

GS 2 (POLITY AND GOVERNANCE): SOURCE – THE HINDU

Telangana Chief Minister A. Revanth Reddy has instructed officials to initiate the disbursement of funds under the Rythu Bandhu scheme, aimed at supporting farmers’ investments. The decision follows a review meeting with Agriculture and Finance Department officials to discuss the implementation of the scheme.

Rythu Bandhu Scheme Activation:

• Chief Minister Revanth Reddy directed Finance and Agriculture Departments to begin crediting assured amounts to farmers’ accounts under the Rythu Bandhu scheme.
• The scheme focuses on providing investment support to farmers, contributing to agricultural development.

Political Context and Financial Considerations:

• Despite the Congress party’s initial promise of extending support to farmers, the decision to maintain the assistance at ₹10,000 per acre, rather than raising it to ₹15,000, was made to alleviate potential financial strain.
• The move aligns with the need to manage a challenging economic scenario, avoiding an additional burden of over ₹7,000 crore on the State exchequer.

Conclusion:

Telangana’s commitment to continuing the Rythu Bandhu scheme underscores the state’s dedication to supporting farmers. The decision balances the political commitment to farmers with the pragmatic recognition of financial constraints, ensuring sustained assistance without overwhelming the state’s resources.

DECRYPTING TODAY’S PSEPHOLOGY AND ANTI-INCUMBENCY

GS 2 (POLITY AND GOVERNANCE): SOURCE – THE HINDU

In the era dominated by algorithms, the electoral landscape is equally shaped by the potent force of ‘anti-incumbency.’ While psephologists embrace this term, its impact on steering discussions away from substantive issues is concerning. The complexity of electoral dynamics often succumbs to the simplistic narrative of averages, overshadowing critical matters.

Dissecting Anti-Incumbency:

• Anti-incumbency emerges as a recurrent theme in electoral analyses, diverting attention from vital issues that influence voters.
• The reduction of elections to a statistical exercise neglects the underlying concerns of the electorate and the reasons for persistent discontent.

Normalizing Discontent:

• The language of anti-incumbency normalizes discontent by attributing electoral outcomes to historical trends rather than scrutinizing the root causes.
• Instead of addressing the longstanding grievances of the people, the focus shifts to statistical patterns, diminishing the significance of social development.

The Technocratic Approach:

• Psephologists adopt a technocratic language, aligning with neoliberal tendencies, turning the electoral process into a quantifiable algorithmic equation.
• Policy nuances and party differences take a back seat, emphasizing quantification as the primary method for deciphering distinctions.

BJP’s Electoral Machinery:

• The Bharatiya Janata Party (BJP) thrives as an electoral machine, leveraging efficiency, speed, and last-minute strategies.
• The emphasis on organizational prowess overshadows the analysis of social power dynamics and the BJP’s impact on social fragmentation.

Conclusion:

The prevalence of anti-incumbency rhetoric and technocratic psephology contributes to the electoral process losing its essence. Instead of deliberative discussions on crucial issues, the spectacle of last-minute maneuvers and statistical predictions takes center stage. The disappearance of substantive concerns from public discourse and the rise of hyper-nationalism underscore the need for a paradigm shift in electoral analysis, focusing on the core issues that shape the nation’s future.

HARVEST THE ODISHA STORY TO ENSURE FOOD SECURITY

GS 3 (ECONOMY): SOURCE – THE HINDU

As the global community converges for COP28, the 2023 United Nations Climate Change Conference, the urgency of addressing the climate crisis becomes more pronounced. Amid projections of increasing disasters, hunger, and declining food productivity, Odisha’s success story emerges as a beacon of hope, offering a transformative model for achieving food security sustainably.

Agricultural Transformation in Odisha:

• Over the last two decades, Odisha has evolved from being a net importer of rice to achieving its highest food grain production of 13.606 million tonnes in 2022.
• Noteworthy is the tripling of the average rice yield within this period, reaching 27.30 quintals per hectare in 2020-21.
• Kalahandi district, once labeled the “land of hunger,” is now Odisha’s rice bowl, showcasing the state’s commitment to the ‘Zero Hunger’ goal of SDG 2.

Focus on Small and Marginal Farmers:

• Odisha’s success hinges on prioritizing small and marginal farmers, enhancing their income, and fortifying their food security.
• Flagship schemes like Krushak Assistance for Livelihood and Income Augmentation (KALIA) and initiatives like the Odisha Millet Mission contribute to crop diversification and climate resilience.
• The emphasis on non-paddy crops and the dissemination of scientific crop management practices bolster sustainable agriculture.

Resilience and Sustainability Initiatives:

• Recognizing its vulnerability to climate change, Odisha proactively formulated a comprehensive Climate Change Action Plan spanning various sectors.
• A bottom-up approach involves district-level crop planning, climate-resilient cultivation practices, and measures to combat adverse weather conditions.
• Farmers are trained in integrated nutrient and pest management, water-saving techniques, and mechanization, fostering climate-resilient food production.

Social Protection and Collaboration:

• Odisha’s agricultural strides have positioned it as a surplus state for paddy production, contributing significantly to the Food Corporation of India’s rice pool.
• Collaborations with organizations like the United Nations World Food Programme have led to innovative pilots, including biometric technology in the Targeted Public Distribution System and rice fortification.
• Odisha’s top-ranking in the National Food Security Act’s State Ranking Index for 2022 underscores its commitment to food security, livelihoods, and climate resilience.

Conclusion:

Odisha’s journey from food scarcity to surplus production, coupled with robust climate-proofing measures and a focus on smallholders, presents a distinctive development model. As the world grapples with the climate crisis, Odisha’s success becomes a source of inspiration and practical insights for other states striving to navigate the challenges of global climate change.

WHAT ARE FSB’S CONCERNS ABOUT CRYPTO ASSET INTERMEDIARIES?

GS 3 (ECONOMY): SOURCE – INDIAN EXPRESS

The Financial Stability Board (FSB) recently expressed concerns over multi-function crypto-asset intermediaries (MCIs) in its latest report, emphasizing the need for enhanced cross-border cooperation and information sharing among regulators. The report specifically addresses risks associated with MCIs, exemplifying the FTX collapse in November 2022.

Definition of MCIs:

• MCIs are individual firms or affiliated groups such as Binance, Bitfinex, and Coinbase.
• They offer diverse crypto-based services, combining activities within a single platform, unlike traditional finance entities.

Revenue Sources and Aspirations:

• MCIs primarily generate revenue from transaction fees related to trading activities.
• Aspiring to be “one-stop shops,” they expand into services like prepaid debit cards and lending.
• The report notes uncertainty about the magnitude of revenue sources due to limited publicly disclosed information.

Transparency Challenges:

• Most MCIs lack transparency about their corporate structure, often being privately held.
• Limited disclosure, mostly jurisdiction-specific, occurs through press coverage and regulatory actions.
• The absence of meaningful separation between conflicting business lines and unclear accounting practices raises concerns.

Risk Management Concerns:

• Poor risk management, according to the report, facilitates potential misconduct by insiders, magnifying MCI vulnerabilities.
• Lack of transparency may hide governance issues and business model profitability risks until negative shocks materialize.
• Recent regulatory actions, like the U.S. SEC’s allegations against Binance, underscore these risk management challenges.

Spillover Effects:

• Presently, the report suggests the threat to global financial stability from MCI failure is limited.
• However, experiences with crypto-friendly banks indicate concentrated deposit exposures and potential risks to the real economy.
• The report references Silvergate Bank’s closure in March 2023 following the FTX collapse, signaling the interconnectedness of crypto assets and traditional financial institutions.

Conclusion:

The FSB’s report underscores the evolving challenges posed by MCIs in the crypto space, emphasizing the imperative for transparency, effective risk management, and international collaboration to ensure the stability of global financial systems.

ODISHA INVOKES ESMA TO CURB HEALTH DEPARTMENT STRIKES

GS 3 (SOCIETY): SOURCE – TIMES OF INDIA

Odisha has invoked the Essential Services Maintenance Act (ESMA) to prohibit strikes by Health Department staff.

• ESMA empowers the government to designate services as ‘essential,’ preventing disruptions impacting normal life.
• Essential services fall under the Concurrent list of the Constitution’s Schedule VII.
• States have the authority to choose services for ESMA enforcement.
• The act allows a maximum 6-month imposition, extendable if needed.
• Violators face arrest without a warrant, reinforcing strict measures for maintaining critical services and public welfare.

RBI’S PROPOSAL FOR FINANCIAL SECTOR DATA CLOUD FACILITY

GS 3 (ECONOOMY): SOURCE – INDIAN EXPRESS

RBI proposes establishing a cloud facility for financial sector data in India.

• Aims to boost security, integrity, and privacy of financial data, particularly due to the large volumes maintained by banks and financial entities.
• Initially, the facility will be operated by RBI’s subsidiary, Indian Financial Technology & Allied Services (IFTAS).
• Future plans involve transferring control to a separate entity owned by financial sector participants.
• Recognizes the significance of cloud technology in centralizing security measures, enhancing privacy, and safeguarding against cybercrimes in the banking and financial landscape.