CURRENT GENERAL STUDIES- AUGUST-PART-I

1) India – Pacific Island Cooperation

·         India hosted leaders from 14 pacific Island countries 9 months after India- Pacific island cooperation in Fiji

·         Pacific countries belong to three distinct sub regions- Micronesia, Melanesia and Polynesia

·         Micronesia spanning Norht Pacific consists of Palua, Federate state of Micronesia , Marshall Islands, Kribati, Nauru

·         After world war II , Palau, FSM and Marshall Islands became part of USA territories and US exerts lot of influence on their economy every today

·         Polynesia includes independent countries – Samoa, Tonga, Tuvalu, and New Zeland associates Niue and Cook Islands

·         Melanesia cover Fiji, Papua, New Guinea , Solomon Islands and Vanuatu

·         Pacific island cooperation established in 1971 to promote regional cooperation has sprawling bureaucracy

Importance of Relation with Pacific for India :

·         Natural resources

·         Strategic location

·         To Counter China’s growing influence

Suggestion for India:

·         To develop strong relation with other countries other than Fiji

·         Establish diplomatic presence in each country

·         To have close engagement and announcement of several scholarships for countries a positive step

2) India- China- & World

Steps taken by China:

·         Devaluation of Yuan to make it more market determined and facilitate its inclusion in IMF’s Special drawing rights

·         One belt one road initiative

·         New financial institution  NDB, AIIB and setting up of Contingent Reserve arrangement

·         Recapitalised its three banks- China development bank, the China Exim bank and Agricultural Development bank

Steps taken by World to counter China

·         ASEAN countries in South China Sea wary of China’s actions

·         US creating TPP

·         Japan increased its aid programmes and pursing Japan- EU free trade deal

·         Russia wary of China Move in Central Asia

Steps taken by India

·         Not signed OBOR initiative as wary of China- Pakistan economic corridor

·         Mausam project by India to counter China in Indian Ocean

·         India’s trade imbalance with China very high, Chinese investment in India very small

·         India has joined NDB and AIIB ( Positive aspect)

3) Environment Disasters

·         After Bhopal disaster now comes the Kodaikanal Mercury Pollution case

·         In Kodaikanal there was Hindustan unilever’s thermometer manufacturing factory which was shut down in March 2001

·         Unilever has offered on lower clean up standard ( 20mg/kg) but in U.K Unilever home country site would have to be cleaned up to 1mg/kg

Govt Role :

·         Not done anything to put in place policy for environmental issue

·         Worked out many policies to promote industrialization but none to address unregulated industrial activity

·         Ignored direction of supremem court

·         Despite requests from public and directions by Supreme court Monitoring committee the TNPCB has not taken single soil sample in last 14 years

·         Relies on Unilever report

List of Toxic Hotspots in Country:

·         Cancer corridor between Vapi and Bhaurch in Gujarat

·         Jeedimetla in Andhra Pradehs

·         Udyogamandal near Kochi

·         Industrial estates in Mettur

·         Thoothkudi or cuddalore in Tamil Nadu

·         Singrauli and Bhopal inMadhya Pradesh

Concerns Raised

·         Authenticity of Report

·         Proposal of Unilever to clear upto 10 mg/kg not up to the mark and can lead to future degradations

·         Instead of govt. Unilever directly teamed up with National environment engineering institute to set the standards

·         Kodaikanal site will remain a significant reservoir of mercury even after clean up , leaking deadly neuro and nephrotoxin into kodaikanal’s lake and Pambhar Shola watershed forests

4) Special Category Status of States

·         The centre claims that following increase in tax devolution to states form 32 % to 42 % of divisible pool of central taxes there is no further need to give special category status to any state

·         States in special category status are- J&k, Himachal Pradesh, Uttarakhand, Sikkim, Assam, Arunachal Pradesh, Nagaland, Manipur, Tripura, Meghalaya, Mizoram

·         Under the D.R. Gadgil formula for central plan assistance the rrequriements of Assam, jammu and Kashmir, and Nagaland wwere to be met first and balance of central assistance to be distirubted to remaining states

·         At time of fifth plan , Himachal Pradesh, Other North eastern states and Sikkim were included in special cagerogry states  . Later on Uttarakhand was added

Criteria for selection

·         Hilly terrain

·         Low density

·         Location along Borders

·         Economic backwardness

·         Non viable nature of state finances

Benefits given earlier to Special category states

·         Provided 30 % of total central assistance ( 90 percent as grants)

·         Speical plan assistance for Projects ( 90 percent as grants)

·         Untied special central assistance ( 100 percent as grant)

·         Assistance for externally aided projects ( 90 percent grant)

·         Accelerated  Irrigation benefit Programme ( AIBO) ( 90 percent grant)

·         Central incentives for promiton of industry on account of economic backwardness

Dilution after Union Budget 2015-16

·         Discontinued central assistance special central assistance and special plan assistance

·         Very few externally aided projects

·         Allocations under AIBP reduced