Daily Prelims Notes 7 December 2020
- December 7, 2020
- Posted by: OptimizeIAS Team
- Category: DPN
Table Of Contents
- FINANCIAL SECRECY
- BAN ON E-CIGARETTE
- UNGA CULTURE OF PEACE
- RBI REPO RATE
- HAMPI STONE CHARIOT
- JASDAN
- AYUSH EXPORTS
- GEOGRAPHICAL INDICATION (GIs)
- RBI TIGHTENS OVERSIGHT OF NBFCs, UCBs
- RAT HOLE MINING
- SYNTHETIC DRUGS
Subject: Economy
Context: Global tax rules must be rewritten to bring in more transparency and make tax revenues available for development.
Concept:
- A report was jointly launched by Tax Justice Network, Public Services International and the Global Alliance for Tax Justice.
- Called “State of Tax Justice 2020” that tells us how much each country in the world loses to corporate and private tax abuses. It also indicates the extent of the impact these losses have on each country’s health spending.
- Countries around the world are on average losing the equivalent of 9.2 per cent of their health budgets to tax havens every year. While this tax shortfall represents 8.4 per cent of health budgets for higher-income countries, the proportion jumps to 52.4 per cent in lower-income countries.
Losing to Tax Havens:
- Of the $427 billion, nearly $245 billion is lost to multinational corporations shifting profit into tax havens.
- This works on a very simple principle: multinationals only pay taxes in the subsidiaries where they declare their profits (profit shifting).
- To do that, they only have to show low profits or deficits where taxes are relatively high (even if it is in those countries that they undertake the bulk of their activities) while reporting high profits in jurisdictions where taxes are very low, or even zero — even if they have only parked trademarks and rented mailboxes there.
- Different tax rates and bilateral tax treaties mean that multinationals do a lot of profit shifting to advanced countries like Ireland, the Netherlands, the Channel Islands in the UK and some US states, to reduce and sometimes even eliminate their tax burdens, even when their total profits are increasing.
- Multinational companies must be made to report country-by-country data on sales, costs and profits and to publish these.
- The continuing failure to do so means that the public is blocked from seeing the information that corporations, accountants and governments already have where multinational corporations are shifting their profits to.
Subject: Economy
Context: One year has passed since, the Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage and Advertisement) Act, 2019 was notified.
Concept:
- The Act categorizes production, manufacture, import, export, transport, sale, distribution, storage, and advertisement of e-cigarettes and similar devices as cognizable offences.
- The Act stipulates that persons found in violation of the law for the first time will face a jail term of up to one year or a fine of up to one lakh rupees, or both. For subsequent offences, a jail term of up to three years and fine upto Rs 5 lakh.
- It further punishes storage of e-cigarettes with imprisonment up to six months or a fine of up to Rs 50,000, or both. Once the Bill comes into force, the owners of existing stocks of e-cigarettes will have to declare and deposit these stocks at the nearest office of an authorized officer.
Electronic-cigarettes
- Battery-operated devices that produce aerosol by heating a solution containing nicotine, which is the addictive substance in combustible cigarettes.
- These include all forms of Electronic Nicotine Delivery Systems, Heat Not Burn Products, e-Hookah and the like devices.
Concerns
- Their use has increased exponentially and has acquired epidemic proportions in developed countries, especially among youth and children.
- Apart from nicotine, e-cigarettes may also be used for delivery of other psychoactive substances.
- Widespread use and unchecked proliferation of e-cigarettes and the like devices would seriously undermine and derail Government’s efforts to reduce the prevalence of tobacco use.
Significance of the decision:
- The decision to prohibit e-cigarettes will help protect population, especially the youth and children, from the risk of addiction through E-cigarettes.
- Enforcement of the Ordinance will complement government’s efforts for tobacco control and will help in reduction of tobacco use and reduction in associated economic and disease burden.
- The WHO has also urged member countries to take appropriate steps including prohibiting these products.
Subject: International Affairs
Context: At a United Nations General Assembly session on ‘Culture of Peace’, India pointed out that UN resolutions on important issues speak only of Islam, Judaism, and Christianity.
Concept:
- Key UN General Assembly resolutions over the years have categorically condemned and voiced concern over the increase in anti-Semitism, Christianophobia and Islamophobia in various parts of the world.
- However, violence against other religious minorities get little more than a slap on the wrist, a sentiment shared by several other countries also, sources said.
- India also co-sponsored a resolution presented by Bangladesh titled, ‘Follow-up to the Declaration and Programme of Action on a Culture of Peace’.
- The resolution reiterates that the objective of the effective implementation of the Programme of Action is to strengthen further the global movement for a culture of peace.
- It invites member states to continue to place greater emphasis on and expand their activities promoting a culture of peace at the national, regional and international levels and to ensure that peace and non-violence are fostered at all levels.
Subject: Economics
Context: The Reserve Bank of India (RBI), in its bi-monthly monetary, has decided to keep the repo rate unchanged.
Concept :
- This is the third time in a row the central bank has kept the key rates unchanged. The status quo on monetary policy was as expected by most economists, amid high levels of inflation.
- RBI policy have prioritised growth over inflation. This is an acknowledgment that inflation drivers seem to be more supply side led.
- An accommodative liquidity stance will ensure access to liquidity will not be a challenge and the ongoing recovery continues to gather steam. This will help push through govt borrowings in a year where the revenues are under pressure.
Subject: Culture
Context: Tourists can no longer get too close to the iconic stone chariot in front of the VijayaVittala Temple at Hampi, a UNESCO World Heritage site.
Concept:
- The architectural marvel, one of the most photographed monuments, has been cordoned off by a chain barricade by the Archaeological Survey of India (ASI).
- The ASI put up the barricade to prevent people from touching or climbing the monument and causing damage to it in any way.
Hampi Chariot
- The chariot inside the temple complex is a shrine dedicated to Garuda, but the sculpture of Garuda is now missing.
- The Hampi chariot is one among the three famous stone chariots in India, the other two being in Konark, Odisha, and Mahabalipuram, Tamil Nadu.
- The delicately carved chariot at Hampi reflects skill of temple architecture under the patronage of Vijayanagararulers who reigned from 14th to 17th century CE.
6. JASDAN
Subject: Environment
Context: Leaving their known habitat in Dhari in Gir (east) wildlife division in Amreli district, three Asiatic lions have walked around 100 km to reach Jasdan taluka of Rajkot district, Gujarat and have been camping in a grassland and revenue areas of Jasdan for a week now.
Concept:
- Lions keep moving from surrounding areas to Gir National Park and Wildlife Sanctuary (NGPWLS), creating what is called lion corridors.
- But their Jasdan visit differs for the fact that it is second year in a row, that too around same time of the year. Also, Jasdan is not connected to Amreli by any contiguous riverine patch associated with corridors like Krakach.
- Lions are considered top predators of grassland and shrubland ecosystems. Jasdan, Vinchhiya and Chotila talukas have grasslands, both private as well as in protected forest areas.
Subject: Economy
Context: Ministry of Commerce and Industry and Ministry of AYUSH have decided to set up an AYUSH Export Promotion Council to boost AYUSH exports.
Concept:
- Ministry of AYUSH and Ministry of Commerce and Industry will work together for establishing an AYUSH Export Promotion Council (AEPC). The proposed AEPC can be housed at Ministry of AYUSH.
- Standardisation of HS code for AYUSH will be expedited.
- Ministry of AYUSH will work in collaboration with Bureau of Indian standards to develop international standards for AYUSH products as well as services.
- AYUSH industry will work on ensuring quality and standards of AYUSH products as well as to become price-competitive.
- AYUSH will figure in the Brand India activities.
8. GEOGRAPHICAL INDICATION (GIs)
Subject: Economy
Context: The Himachal Pradesh government is trying to obtain GIs (Geographical Indication) for five products from the state – KarsogKulth, Thangi of Pangi, Chamba Metal Crafts, ChambaChukh, and Rajmah of Bharmour.
Concept:
- KarsogKulth: Kulthi or Kulth (horse gram) is a legume grown as a kharif crop in Himachal Pradesh. Kulth grown in the Karsog area of Mandi district is believed to be particularly rich in amino acids.
- PangikiThangi: It is a type of hazelnut which grows in Pangi valley located in the north-western edge of Himachal. It is known for its unique flavour and sweetness.
- Chamba metal crafts: These include items such as metal idols and brass utensils which, historically, were made by skilled artisans in the courts of kings of Chamba. There are efforts to revive the trade, and a plate made from a brass-like alloy and having carvings of gods and goddesses is still popular.
- ChambaChukh: It’s a chutney made from green and red chillies grown in Chamba, and prepared in traditional and unique ways. The practice has largely declined in rural households of Chamba, but survives to some extent at the small-scale industrial level.
- BharmouriRajmah: It’s more specifically called the KugtaluRajmah, since it grows in the area around Kugti Pass in the Bharmour region of Chamba district. It is rich in proteins and has a unique flavour.
9. RBI TIGHTENS OVERSIGHT OF NBFCs, UCBs
Subject: Economics
Context: The Reserve Bank of India (RBI) announced the introduction of risk-based internal audit norms for large urban cooperative banks (UCBs) and non-banking financial companies (NBFCs), as part of measures aimed at improving governance and assurance functions at supervised entities.
Concept:
- The RBI also moved to harmonise the guidelines on appointment of statutory auditors for commercial banks, UCBs and NBFCs in order to improve the quality of financial reporting.
- The growing significance of NBFCs and their interlinkages with different parts of the financial system had made it imperative to enhance the sector’s resilience. Thus it had been decided to put in place transparent criteria for the declaration of dividends by different categories of NBFCs.
- With a view to deepening financial markets, regional rural banks would be allowed to access the liquidity adjustment facility (LAF) and marginal standing facility (MSF) of the RBI, as also the call/notice money market.
- To significantly improve the ecosystem of digital payment channels with robust security and convenience for users, the RBI has proposed to issue Digital Payment Security Controls directions for the regulated entities.
10. RAT HOLE MINING
Subject: Environment
Context: Rat-hole coal mining had sucked the life out of Moolamylliang(village) less than a decade ago. The village in the East Jaintia Hills district of Meghalaya has now risen like the proverbial phoenix to become a clean, green dot in a vast black blot.
Concept:
- The Jaintia Coal Miners and Dealers’ Association claims there are some 60,000 coal mines across 360 villages in East Jaintia Hills district. Moolamylliang used to be one such village until the National Green Tribunal banned rat-hole mining in April 2014.
- Though the NGT ban did not stop illegal mining in the district, it helped Moolamylliang reform — in part because unregulated mining had contaminated its farmlands and turned the streams acidic, and also because the village dorbar, or traditional governing body, had a change of guard.
Rat Hole Mining
- Rat hole mining involves digging of very small tunnels, usually only 3-4 feet high, which workers (often children) enter and extract coal.
- The National Green Tribunal (NGT) banned it in 2014, on grounds of it being unscientific and unsafe for workers. The state (Meghalayan) government has challenged the NGT ban in the Supreme Court.
- According to available government data, Meghalaya has a total coal reserve of 640 million tonnes, most of which is mined unscientifically by individuals and communities.
- Since the coal seam is extremely thin in Meghalaya, no other method would be economically viable.
Impacts
- The water sources of many rivers, especially in Jaintia Hills district, have turned acidic.
- The water also has high concentration of sulphates, iron and toxic heavy metals, low dissolved oxygen (DO) and high BOD, showing its degraded quality.
- The roadside dumping of coal is a major source of air, water and soil pollution.
- Off road movement of trucks and other vehicles in the area for coal transportation also adds to the ecological and environmental damage of the area.
- The practice has been declared as unsafe for workers by the NGT.
- The mines branch into networks of horizontal channels, which are at constant risk of caving in or flooding.
11. SYNTHETIC DRUGS
Subject: Science & tech
Context: Uttar Pradesh, Maharashtra, Telangana and Tamil Nadu accounted for the majority of drug seizures during 2019-20.
Concept:
- The Directorate of Revenue Intelligence annual report said that 72 seizures are covered under Narcotic drugs & Psychotropic substance act.
Synthetic Drugs:
- Synthetic drugs are chemical compounds produced in a laboratory. They can be produced commercially by drug manufacturers for valid medical purposes and are diverted from legal channels or produced illegally in clandestine laboratories for illicit markets worldwide.
- When produced clandestinely, synthetic drugs aim to mimic or even enhance the effects of natural illicit drugs, such as marijuana.
- Synthetic drugs could be addictive and pose a serious threat on the health of everyday individuals. Nevertheless, it is difficult for regulatory agencies to control or monitor synthetic drugs.
- Manufacturers often slightly modify the molecular structures of illegal or controlled substances to circumvent existing drug laws or labeled “not for human consumption” to mask their intended purpose and avoid regulatory oversight of the manufacturing process.
- Easy access, low prices and a misconception that synthetic drugs are “natural”, and harmless have likely contributed to synthetic drug abuse. Another contributing factor is the ability for synthetic drugs to circumvent standard drug tests that cannot easily detect many of the chemicals in the drug.
Types of Synthetic Drug:
- Based on their chemical composition, synthetic drugs are commonly divided into two categories:
- Cannabinoids such as K2 and Spice. Synthetic Cannabinoids are chemicals that mimic the effect of THC, the primary psychoactive active ingredient in marijuana.
- Stimulants such as Bath Salts. Most synthetic stimulants contain chemical compounds that mimic the effects of cocaine, LSD and methamphetamine. (Similar drugs include MDMA sometimes referred to as “ecstasy”, “molly”)