Daily Prelims Notes 25 May 2024

Daily Prelims Notes

25 May 2024

1. India’s Opposition to Plurilateral Pact on Investment at WTO

Sub: Economy

Sec: External Sector

Tags: Investment Facilitation for Development (IFD) pact WTO

India continues to resist the inclusion of the proposed China-led Investment Facilitation for Development (IFD) pact into the formal framework of the World Trade Organization (WTO) as a plurilateral agreement.

This stance was reiterated during the recent meeting of the WTO’s General Council.

Key Points:

• Pressure on India:
• India faces significant pressure from other WTO members to support the inclusion of the IFD pact in the WTO framework.
• The IFD pact, championed by China, aims to facilitate investment for development and has been endorsed by several WTO members.
• India’s Stance:
• India maintains that investment issues should not be discussed within the WTO framework.
• This position was clearly stated at the WTO’s 13th Ministerial Conference (MC13) in Abu Dhabi.
• Joint Ministerial Declaration:
• At MC13, a joint declaration was issued by Trade Ministers from 123 WTO member countries, including the EU, finalizing the IFD pact.
• The proponents of the pact aim to formally integrate it into the WTO as a plurilateral agreement, which would be binding only on signatories.
• Opposition from India and South Africa:
• Both India and South Africa played crucial roles in blocking the move to incorporate the IFD pact as a plurilateral agreement.
• They argued that there was no exclusive consensus among WTO members to include the IFD in the WTO framework.
• Concerns About Policy Space:
• India’s opposition is partly based on concerns that certain provisions of the IFD would require the government to consult investors on policy matters.
• This could potentially infringe on India’s policy-making autonomy and encroach upon its policy space.
• Current Developments:
• During the recent General Council meeting, India reiterated its opposition to the inclusion of investment facilitation and other plurilateral in the WTO framework.
• The issue of the IFD pact remains a contentious topic among WTO members, with no immediate resolution in sight.

Implications:

• For India:
• India’s resistance to the IFD pact aligns with its broader strategy to safeguard national policy-making autonomy and avoid external pressures on domestic policy issues.
• For WTO:
• The lack of consensus on the IFD pact illustrates the challenges in achieving agreement on new issues within the multilateral trading system.
• It highlights the divide between developing countries like India and South Africa and other WTO members who support the pact.

In conclusion, India’s steadfast opposition to the IFD pact at the WTO underscores its commitment to maintaining control over its investment policies and its broader stance on plurilateral agreements within the organization. This ongoing debate reflects broader tensions within the WTO regarding the scope and nature of trade agreements and their implications for member countries.

Agreement on Investment Facilitation for Development (IFA)

Overview:

The Agreement on Investment Facilitation for Development (IFA) is a WTO-negotiated agreement focused on creating a more investor-friendly environment by streamlining investment procedures and enhancing transparency and predictability for foreign direct investment (FDI).

It primarily aims to benefit developing and least-developed countries by making it easier for them to attract and retain investments.

Key Objectives:

• Simplification of Investment Procedures: The IFA aims to reduce the bureaucratic hurdles that investors face, making the process of establishing and expanding businesses more efficient.
• Promotion of Transparency: By ensuring that investment-related regulations are clear and accessible, the IFA helps investors make informed decisions.
• Predictability: Providing a stable regulatory environment that investors can rely on, reducing uncertainty and risk.

What the IFA Covers:

• Regulatory Transparency: Ensuring that all investment-related measures are published and easily accessible.
• Streamlining Administrative Procedures: Simplifying and speeding up processes like obtaining permits and licenses.
• Enhancing International Cooperation: Providing technical assistance and capacity-building to help developing countries implement the agreement effectively.

What the IFA Does Not Cover:

• Market Access: The IFA does not address the conditions under which foreign investors can enter a market.
• Investment Protection: It does not provide protections against expropriation or unfair treatment.
• Government Procurement: Rules about how governments purchase goods and services are not included.
• Specific Subsidies: It does not regulate the subsidies provided to businesses.
• Investor-State Dispute Settlement (ISDS): The agreement does not include mechanisms for investors to sue states.

Investment Facilitation vs. Investment Promotion

Investment Facilitation:

• Focus: Simplifies the process for foreign investors to establish or expand their businesses.
• Activities: Reduces bureaucratic barriers, improves regulatory transparency, and enhances procedural efficiency.

Investment Promotion:

• Focus: Markets a location as an attractive destination for investment.
• Activities: Highlights the benefits and opportunities of investing in a particular area, often through incentives and marketing efforts.

Reasons for India’s Non-Participation in IFA Talks

• WTO’s Mandate:
• Description: India argues that investment matters are outside the WTO’s scope and prefers to handle these issues through bilateral negotiations.
• Concern About Developed Nations’ Strategy:
• Description: India perceives the IFA as a step by developed countries to first introduce facilitation and later push for investment protection rules, which could be more contentious.
• Opposition to Plurilateral Agreements:
• Description: India is against plurilateral agreements within the WTO because they do not adhere to the consensus decision-making process that multilateral agreements follow.
• Concerns About ‘Most Favoured Nation’ (MFN) Provisions:
• Description: India is cautious about MFN provisions due to negative past experiences, such as those faced with the MFN clause in its bilateral investment treaty with Australia.
• Legally Binding Dispute Settlement:
• Description: There is apprehension that foreign investors might use a future IFA to bring claims under existing bilateral investment treaties, potentially leading to disputes.

Current Context:

• India has terminated many of its older bilateral investment treaties and is negotiating new ones based on its 2016 Model BIT text, which likely influences its stance on multilateral investment agreements like the IFA.

Conclusion

The IFA represents a significant effort to create a more conducive environment for global investment, focusing on facilitation rather than liberalization.

While supported by a majority of WTO members, India’s non-participation underscores its preference for bilateral negotiations and caution about potential implications for its policy autonomy and regulatory sovereignty.

2. India’s 400-Million Casual Labour Market Needs a Structural Shift: ISF

Sub: Economy

Sec: Inflation and Unemployment

Tags: Casual labour 

Overview: India’s informal labour market, comprising approximately 400 million workers, plays a crucial role in the country’s economy.

The Indian Staffing Federation (ISF), representing the contract staffing industry, has emphasized the need for a structural shift towards formal employment to ensure equitable opportunities and sustainable livelihoods.

Current Scenario:

• Informal Labour Force: Almost 85% of India’s workforce is employed in the informal sector.
• Economic Contribution: This segment generates more than half of the country’s GDP.
• Challenges: The informal sector faces significant issues such as income inequality, lack of job security, and rising poverty levels.

ISF’s Perspective:

• Need for Formalization: ISF Executive Director Suchita Dutta highlights the critical need for formalizing the informal labour market. Formal employment can provide better job security, income stability, and access to social benefits.
• Income Inequality: The disparity in income and the associated poverty levels are stark reminders of the systemic challenges faced by the informal workforce.
• Blueprint for Change: ISF has unveiled a blueprint aimed at formalizing the informal workforce and implementing labour codes to protect workers’ rights and improve working conditions.

Key Recommendations:

• Formal Employment Opportunities:
• Transitioning workers from informal to formal employment sectors.
• Providing structured employment opportunities to lower-income and semi-skilled workers.
• Implementation of Labour Codes:
• Ensuring the effective implementation of new labour codes to protect workers’ rights.
• Facilitating better working conditions, social security, and fair wages.
• Inclusive Growth:
• Creating an inclusive labour market that invites participation from all sections of society.
• Ensuring equitable opportunities and sustainable livelihoods.
• Economic and Social Security:
• Enhancing the economic security of workers through stable employment.
• Providing social security benefits like health insurance, pensions, and unemployment benefits.

Benefits of Formalization:

• Economic Stability: Formal employment can lead to more predictable and stable income for workers, contributing to overall economic stability.
• Social Security: Access to social security benefits can significantly improve the quality of life for workers and their families.
• Skill Development: Formal employment often comes with opportunities for skill development and career advancement.
• Government Revenue: Formal employment increases tax revenues for the government, enabling better public services and infrastructure development.

Challenges to Formalization:

• Regulatory Hurdles: Implementing new labour codes and ensuring compliance can be challenging.
• Employer Resistance: Some employers may resist formalizing their workforce due to perceived higher costs.
• Awareness and Education: Workers need to be made aware of the benefits of formal employment and trained to meet the requirements of formal jobs.

Conclusion: The ISF’s call for a structural shift towards formal employment is a significant step towards addressing the challenges faced by India’s informal labour market. By implementing comprehensive labour codes and creating formal employment opportunities, India can ensure equitable opportunities and sustainable livelihoods for all workers. This shift is essential for reducing income inequality, alleviating poverty, and fostering inclusive economic growth.

3. Supreme Court denies interim order on booth-wise voter data

Sub: Polity

Sec: Elections

Tag: Form 17C

Context:

• The Supreme Court on May 24 refused an NGO’s plea to issue the Election Commission of India to upload authenticated, scanned and legible copies of Form 17C showing the account of votes recorded booth wise after each phase of polling in Lok Sabha elections.

Key Highlights of the case:

• A Vacation Bench of Justices Dipankar Datta and Satish Chandra Sharma said the nation is on the evening of the sixth phase of General Elections.
• The court said it did not want to divert the attention of the Election Commission (EC) in the middle of the elections.
• The NGO had argued the data published by the EC in its April 30 press release had shown a sharp increase (by about 5-6%) from the initial percentages announced by it on the polling day.
• In an  interim relief sought by NGO Association for Democratic Reforms (ADR) in its application for publication of voter turnout data in Form 17C was already part of relief sought in a petition pending since 2019.

What is Form 17C?

• The Conduct of Election Rules, 1961 require the EC to maintain two forms- Forms 17A and 17C.
• Form 17A records the details of every voter who enters a polling booth and casts their vote. 
• Form 17C contains the total number of votes cast.
• Under rule 49S(2), the presiding officer has to provide a copy of the data entered in Form 17C to the polling agents of candidates at the time of the close of polling.
  • The data recorded in Part I of Form 17C includes
  • the unique ID number of the EVM used at a particular polling booth,
  • the total number of voters enlisted at that booth,
  • the total number of voters who entered the polling booth and whose details were validated on Form 17A,
  • the number of voters who did not vote despite signing on the register,
  • the number of voters who were not allowed to vote,
  • the number of test votes, and the number of total votes recorded in the EVM.
• Part II of Form 17C is used to record the results of the election.

What makes Form 17C data important?

• The data in Form 17C is used by candidates to verify the details provided during counting, such as the ID number of the EVM and the number of votes polled per polling station.
• The candidates can challenge a result if there is a discrepancy between the data in Form 17C and the data emanating from the counting center. 
• They can also file petitions in the high court challenging the election result on the basis of the mismatch between the counting data and the figures in Form 17C.

The Election Commission’s response:

• The Commission maintained there is no legal mandate for it to make public the total number of votes cast in each polling station.
• It says copies of Form 17C are shared with the polling agents present immediately upon the close of polling.
• It says candidates are aware and in possession of the exact voter turnout data in absolute numbers even before it is known to the Commission.
• On the issue of significant difference between the initial voter turnout percentage and the final figures, the Commission said voters continue to vote even after 6pm due to long queues at polling stations.

4. Prejudiced past and forsaken future: the DNTs’ battle for dignity

Sub: Schemes

Sec: Vulnerable sector

Tags: Denotified Tribes

Context:

• Denotified and Nomadic Tribes, a group of marginalized communities across Andhra Pradesh, have been silently suffering neglect and caste-based discrimination for centuries.

About the recent plight?

• Getting access to quality education, jobs or even basic amenities such as water and electricity is a constant struggle, with the primary focus often being on securing enough food for survival.
• This is the reality for the Yanadis and 58 other Denotified and Nomadic Tribes (DNTs) of the State.
• Until 1952, when these communities were denotified, they were branded criminals under the Criminal Tribes Act, 1871. 
• They were later designated as Scheduled Castes, Scheduled Tribes, Backward Classes (BCs), and Minorities groups, with reservations and other measures to ensure equity.
• It is estimated that 20 crore people across the country belong to DNT communities, with around 60 lakh people in this category in the state of Andhra Pradesh.
• Of DNT communities, Lambadas (STs) are the most vocal and visible, followed by Vadderas (BCs) in government sector and political spheres.
• The other communities, including Yanadis, Yerukulas, Nakkalas, Pamulollu and those falling in the SC group, rarely get their voices heard.

Who are Denotified Tribes?

• The term ‘De-notified Tribes’ stands for all those communities which were once notified under the Criminal Tribes Acts, enforced by the British Raj between l87l and I947.
• These Acts were repealed by the Independent lndian Government in l952, and these communities were “De-Notified”.
• A few of these communities which were listed as de-notified were also nomadic.
• Terms such as nomads and semi-nomads are applied to social groups who undertook a fairly frequent, usually seasonal physical movement as part of their livelihood strategy in the recent past.
• The term semi-nomad is mostly used to describe those sections of nomads whose duration, distance and frequency of movement is comparatively less than others.
• The distinction between nomadic and semi-nomads does not involve distinguishable ethnic categories or social groups, it rather describes the degree of mobility practiced by them.
• It has been estimated that South Asia has the world’s largest nomadic population. 
• In India, roughly 10 percent of the population is Denotified and Nomadic.
• While the number of Denotified Tribes is about 150, the population of Nomadic Tribes consists of about 500 different communities.
• While the Denotified Tribes have almost settled in various States of the country, the Nomadic Communities continue to be largely nomadic in pursuit of their traditional professions.
• The Renke Commission (2008) was earlier commissioned to identify and list the DNT communities.
• Idate commission  was established in 2014 under the leadership of Bhiku Ramji Idate, to compile a statewide catalog of Denotified, Nomadic, and Semi-Nomadic Tribes (DNTs).
• According to a report published by the National Commission for Denotified, Nomadic and Semi-Nomadic Tribes in 2008, there are 59 Denotified communities and 60 nomadic tribes in Andhra Pradesh.

About Yanadis tribe:

• The Yenadis also spelled Yanadi are one of the Scheduled tribes of India.
• They live in Andhra Pradesh in Nellore, Chittoor and Prakasam districts. 
• The Yenadis are a tribe in Andhra Pradesh living in extreme conditions of poverty and social exclusion.
• The tribe is divided among three subgroups: the Manchi Yanadi, Adavi Yanadi, and Challa Yanadi. Yenadis are the largest tribal group in Andhra Pradesh.

About Lambadas:

• Lambada are the most colorful of all the tribal groups of Andhra Pradesh, widely dispersed in almost all the districts.
• According to the Scheduled Caste Scheduled Tribe Lists Modification Order of 1956, Lambadas are declared as Scheduled Tribe in Andhra area and as a Denotified Tribe in Telangana area of Andhra Pradesh.

5. EU’s Borrell urges Israel ‘not to intimidate’, ‘threaten’ ICC judges

Sub: IR

Sec: Int Organisation

Tags: International Criminal Court (ICC)

Context:

• EU foreign affairs chief Josep Borrell on Friday urged Israel “not to intimidate” or “threaten” the judges of the International Criminal Court.

More on news:

• ICC prosecutor Karim Khan has requested arrest warrants for Israel’s Prime Minister Benjamin Netanyahu and Defence Minister Yoav Gallant, as well as top Hamas leaders Yahya Sinwar, Ismail Haniyeh and Mohamed Deif, on suspicions of war crimes and crimes against humanity.
• He said that Palestinian militant chiefs could be culpable of extermination,rape and other acts of sexual violence and taking hostages as a war crime, he accused the Israelis of starvation,wilful killing, and extermination and/or murder.

What is the International Criminal Court (ICC)?

• The court is located in The Hague, is the court of last resort for prosecution of genocide, war crimes, and crimes against humanity.
• It is the first permanent, treaty based, international criminal court established to help end impunity for the perpetrators of the most serious crimes of concern to the international community.
• Its founding treaty, the Rome Statute, entered into force on July 1, 2002.
• Although the Court’s expenses are funded primarily by States Parties, it also receives voluntary contributions from governments, international organizations, individuals, corporations and other entities.

Composition and voting power of ICC:

• The Court’s management oversight and legislative body, the Assembly of States Parties, consists of one representative from each state party.
• Each state party has one vote and “every effort” has to be made to reach decisions by consensus. If consensus cannot be reached, decisions are made by vote.

Process of Appointment of ICC judges:

• Judges are elected to the ICC by the Assembly of States Parties, the court’s governing body. 
• They serve nine-year terms and are not generally eligible for re-election.
• The procedures for the nomination and election of ICC judges are outlined in articles 36 and 37 of the Rome Statute.
• By the time of their election, all judges must be nationals of states parties to the Rome Statute, and no two judges may be nationals of the same state.
• The International Criminal Court (ICC) is composed of 18 judges, who are elected for terms of office of nine years by the Assembly of States Parties (ASP) to the Rome Statute, the founding instrument of the Court.
• They are not eligible for re- election.

Nomination of candidates by ICC states parties:

• Judicial candidates are nominated by ICC state parties and must be nationals of a state party. 
• Each state party can put forward one candidate in each election.
• In order to nominate a candidate, states parties can follow
  • (i) the procedure for the nomination of candidates for appointment to the highest national judicial offices in the state in question, or 
  • (ii) the procedure for the nomination of candidates judge to the International Court of Justice
• Election by the ICC Assembly of States Parties
• ICC judges are elected by the Assembly of States Parties during its annual session.
• Each state party can vote, unless it has lost voting rights.
• Voting takes place by secret ballot. 

The necessary qualifications:

• Article 36 of the Rome Statute establishes the qualifications required for ICC judges.
• Judges shall be chosen from among persons of high moral character, impartiality, and integrity who possess the qualifications required in their respective States for appointment to the highest judicial offices.
• Every candidate shall have:
  • (i) established competence in criminal law and procedure, and the necessary relevant experience, whether as judge, prosecutor, advocate or in other similar capacity, in criminal proceedings, known as “List A”, or
  • (ii) established competence in relevant areas of international law such as international humanitarian law and the law of human rights, and extensive experience in a professional legal capacity which is of relevance to the judicial work of the Court, known as “List B”.
• Every candidate shall have an excellent knowledge of and be fluent in at least one of the working languages of the Court: English and French.
• To be elected, candidates must receive a two-thirds majority of the States Parties present and voting.
• ICC judges are elected for non-renewable 9-year terms.
• When selecting judges, ICC states parties shall also take into account the need for the representation of the principal legal systems of the world, equitable geographical representation, and a fair representation of female and male judges.
• ICC states parties shall also consider the need to elect judges with legal expertise on specific issues, including, but not limited to, violence against women or children.

6. Cyclone Remal may make landfall along West Bengal coast on May 26: IMD

Sub: Geography

Sec: Climatology

Tags: Cyclone Remal

Context:

• Cyclonic storm “Remal” is expected to escalate into a severe cyclonic storm by May 25.

Details:

• The India Meteorological Department (IMD) forecasts it will cross the coast between Sagar Island (West Bengal) and Khepupara (Bangladesh) on May 26 with wind speeds of 110-120 kmph, gusts at 135 kmph.

Some facts about Indian tropical storms:

• Climatologically, the North Indian Ocean basin, encompassing the Bay of Bengal and the Arabian Sea, experiences the development of approximately five cyclones each year. Of these, an average of four cyclones develop over the Bay of Bengal, while one typically forms over the Arabian Sea.
• Cyclones occurring in the Arabian Sea often achieve higher intensities, posing an increased risk of causing widespread damage.
• The North Indian Ocean basin is most susceptible to cyclone development during the pre-monsoon months (April-June) and post-monsoon months (October-December). 
• Cyclones formed in May and November tend to reach higher intensities compared to storms originating at other times due to favourable ocean conditions.

How are Cyclones Classified

• Cyclones are classified based on wind speed by the Indian Meteorological Department
  • Depression: Wind speeds of between 31–49 km/h
  • Deep Depression: Between 50-61 km/h
  • Cyclonic Storm: Between 62–88 km/h
  • Severe Cyclonic Storm: Between 89-117 Km/h
  • Very Severe Cyclonic Storm: Between 118-166 Km/h
  • Extremely Severe Cyclonic Storm: Between 167-221 Km/h
  • Super Cyclonic Storm: Above 222 Km/h

How Storm intensification happens:

• Tropical cyclones are fueled by ocean heat in addition to other factors.
• Ocean temperatures of 26 degrees Celsius or more, prevailing at depths between 50 metres and 100 metres, are conducive to cyclogenesis, which refers to the processes that lead to the development and strengthening of a cyclone.
• Warm oceans contribute to a cyclone’s rapid intensification while at sea.
• An oceanographic parameter called the Tropical Cyclone Heat Potential (TCHP) is considered an important factor in cyclone genesis, intensification, and propagation.
• The intensification process of tropical cyclones is a complex phenomenon influenced by various favorable atmospheric conditions.
• These include boundary layers (the fluid layer adjacent to a bounding surface), wind shear (changes in wind direction and/or speed over a vertical or horizontal distance), convection (the transfer of heat within a fluid), Rossby waves (which occur in rotating fluids), upper ocean circulation, and air-sea interaction.
• The interaction of these factors contributes to the development and strengthening of tropical cyclones.

What is the landfall of a cyclone?

• Landfall occurs when a tropical cyclone moves from a position over water to coming onto land. 
• According to the IMD, a tropical cyclone is considered to have made landfall when its centre, or eye, crosses the coast.
• The “eye” of a cyclone is a zone of relatively calm weather situated at the center of the storm, characterized by light winds, clear or partly cloudy skies, and reduced precipitation. 
• Within the eye, winds are gentle and variable, often accompanied by clear or partially cloudy skies.
• The size of the eye can vary widely, ranging from a few kilometers to over 50 kilometers in diameter in larger cyclones.
• During landfall, the outer bands of the storm may have already reached the coast, bringing strong winds, heavy rain, and storm surge.
• Landfall signifies the official moment when the cyclone reaches the land.
• It’s important to note that landfall is distinct from a ‘direct hit,’ which occurs when the core of high winds (or eyewall) comes onshore while the center of the storm may remain offshore.
• Cyclones lose their intensity once they move over land because of sharp reduction of moisture supply and an increase in surface friction.

Council on Energy, Environment and Water (CEEW):

• CEEW is a Not-for-profit Think Tank and policy institution based in New Delhi, India.
• CEEW was formed to provide independent research-based insights to policymakers for building a sustainable India.
• The Council also has an office in Lucknow, Uttar Pradesh. It has multiple research projects running across 22 Indian states and other parts of the world.
• CEEW’s research areas include energy and resource efficiency and security; power sector reforms, industrial decarbonisation, sustainable mobility and cooling, sustainable food systems, climate risks and adaptation, air quality, water resources management, sustainability finance, energy-trade-climate linkages and climate geoengineering governance.
• The think-tank advises the Indian government.

The study by CEEW:

• A study by the Council on Energy, Environment, and Water (CEEW) notes West Bengal’s high adaptive capacity against cyclones due to Early Warning Systems (EWS) under the National Cyclone Risk Mitigation Project (NCRMP) Phase II.
• The high teledensity ratio in West Bengal allows people to receive early warnings via telephone or mobile.
• CEEW’s study found eastern coastal districts of India are highly exposed to cyclones and highlighted the importance of strengthening adaptive capacity to reduce losses.

Source: TH

7. Myanmar junta revives plans for China-backed mega-dam

Sub: Geography

Sec: Mapping

Tags: Myitsone dam, Myanmar junta revives plans for China-backed mega-dam

Context:

• Myanmar’s junta has revived plans for a $3.6 billion Chinese-backed dam in the north of the country that was suspended more than 10 years ago following huge public opposition.

Details:

• Myanmar is a vital piece of China’s Belt and Road Initiative, Xi’s flagship $1 trillion project that includes maritime, rail and road projects in Asia, Africa and Europe.
• Last year an alliance of ethnic minority armed groups seized swathes of territory in Shan state along the border with China’s Yunnan province.

Myitsone dam:

• The project to build the 6,000-megawatt Myitsone dam in northern Kachin state was ended in 2011 under a previous junta.
• The dam will be built on the Ayeyarwady River.
• It would have exported around 90% of the power it generated to China.
• A World Wide Fund for Nature (WWF) report in 2018 estimated that some 34 million people in Myanmar live in the Ayeyarwady basin, roughly two-thirds of the country’s population.
• Animals potentially impacted due to dam construction include the endangered Irrawaddy dolphin and the critically endangered Ganges shark.

Ayeyarwady River:

• The geographical source: Ridong Qu headwaters, southeast Tibet, China.
• The Irrawaddy River (official Romanisation: Ayeyarwady) is the largest river in Myanmar. 
• Originating from the confluence of the N’mai and Mali rivers, it flows from north to south before emptying through the Irrawaddy Delta in the Ayeyarwady Region into the Andaman Sea. 
• Tributaries:
  • Left: Chindwin River, Mu River
  • Right: Myitnge