UPSC Key | SCO Meet, Insolvency and Bankruptcy Code, Mpox vaccination and more

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Front Page

Jaishankar: Going for multilateral event, not to discuss India-Pak ties

UPSC Syllabus:

Preliminary Examination:  Current events of national and international importance

Mains Examination: GS-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story- A day after the government announced that External Affairs Minister S Jaishankar will lead the Indian delegation to Pakistan for a meeting of the Shanghai Cooperation Organisation’s Council of Heads of Government on October 15-16, the Minister said he wasn’t going there to discuss India-Pakistan relations but for a “multilateral event”.

Prerequisites:

— What is the Shanghai Cooperation Organisation (SCO)?

— What is the history of bilateral relations between India and Pakistan?

— Read about the SAARC.

— Map work: Locate the SCO member countries.

Key takeaways: 

—- The External Affairs Minister highlighted that the SCO Summit is taking place in Islamabad this time, because, similar to India, Pakistan too, is a recent member of the bloc.

— “Normally the Prime Minister goes to the high-level meeting, the heads of state, that’s in line with the tradition. It so happens that the meeting is taking place in Pakistan, because, like us, they are a relatively recent member,” Jaishankar added.

— In August this year, Pakistan, which holds the rotating chairmanship of the SCO CHG, said it had extended invitations to all heads of government of the SCO member states, including Prime Minister Narendra Modi, for the meeting in Islamabad.

— Framing India’s approach, the External Affairs minister said that “India would certainly like to have (a) good relationship, but that cannot happen by overlooking cross-border terrorism and indulging in wishful thinking.”

— On China, he said bilateral ties are “at crossroads.” “The present situation does not serve the interests of either nation. There is a way forward, and that is by reinstating peace and tranquility in the border areas, respecting the LAC, and not seeking to change the status beyond that.”

— He underlined the three mutuals — mutual respect, mutual sensitive, mutual interest — and after all, “the rise of Asia can only happen when India and China have a positive dynamic”.

— On West Asia, he said that the situation in the “Middle East is a positive concern, deep worry,… the conflict is widening.”

— “Conflict anywhere actually creates problems everywhere…honestly today, whether it is the conflict in Ukraine or the conflict in the Middle East, West Asia, these are big factors of instability, big factors of concern. I think the entire world, including us, we are worried, and we are trying to see at least where we can make a difference and do what we can,” Jaishankar said.

(Thought Process: Lines such as –Conflict anywhere actually creates problems everywhere- can be used in essays or in answers.)

For Your Information:

— The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental international organisation. The main objectives of the SCO are to promote good relations among member countries, strengthen mutual confidence, make collective efforts to maintain peace, security, and stability in the region, and promote effective cooperation in various fields such as trade and economy, science and technology, culture, energy, transportation, tourism, environmental protection, etc. 

— The member countries are India, Iran, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan, Uzbekistan, and Belarus. Belarus joined SCO as the 10th member on 4th July 2024. Afghanistan and Mongolia hold Observer Status. 

Points to Ponder: 

— How has the Shanghai Cooperation Organisation evolved?

— What was the Astana Declaration?

— What is the significance of the SCO for India?

— What are the shortcomings of the SCO?

Post Read Question:

(1) Which among the following countries are not the members of SCO?

1. Kazakhstan

2. Kyrgyzstan

3. Mongolia

4. Turkmenistan

Select the correct answer using the codes given below:

(a) 1 and  3 only

(b) 2 and 4 only

(c) 3 and 4 only

(d) 1 and 2 only

Other Important Articles Covering the same topic:

UPSC Issue at a Glance | Shanghai Cooperation Organisation and India: 5 Key Questions You Must Know for Prelims and Mains

How Security forces led largest Maoist encounter in Chhattisgarh 

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-II, GS-III: Government policies and interventions, Linkages between development and spread of extremism, Challenges to internal security, Security challenges and their management

What’s the ongoing story- The pinpoint coordination went into the single largest Maoist encounter in Chhattisgarh’s 24-year history — the toll stood at 31 on Saturday — conducted without the security forces suffering a single casualty.

Prerequisites:

— What is naxalism?

— Read about the Origin of Naxalism in India.

— What is Left-wing Extremism?

— Know about the Maoist-affected areas in Chhattisgarh.

Key takeaways: 

— Importantly, it came deep inside Abujhmad, long considered a Maoist stronghold and a key focus area in the fight against Naxalism.

— In fact, of the 188 Maoists killed this year, at least 100 have been gunned down in Abujhmad, police say.

— Inspector General of Police for Bastar Range, Sundarraj P, told The Indian Express that close to 50 anti-Maoist operations were undertaken this year as part of “Maad Bachao Abhiyan (Save Maad campaign)” — including nine major operations since April.

— Security forces now claim to have covered about 50 percent of Abujhmad — a largely unsurveyed land that’s bigger than Goa.

For Your Information:

—  Chhatisgarh is the only state in which Maoists continue to have a significant presence, and retain the capability to mount big attacks. According to the Ministry of Home Affairs (MHA) website, there are 70 LWE-affected districts in the country. Of these, 15 are in Chhattisgarh alone. Of the 25 “Most LWE affected Districts”, seven are in Chhattisgarh, while eight are in Jharkhand

— Chhattisgarh, and to a lesser extent Jharkhand, is a part of the government’s “final push” against LWE. This has seen central forces such as CRPF setting up bases deeper inside Maoist strongholds such as the jungles of Abujhmad. In the past few years, more than two dozen bases have been set up in Abujhmad, with Kanker’s Rowghat jungles too seeing new camps

Points to Ponder: 

— What is a Red Corridor region?

— What are the determinants of left-wing extremism in the Eastern part of India?

— What initiatives have been taken by the government to counter Naxalism?

— What strategy should be adopted to counter the Naxalism in the affected areas?

Post Read Question:

Naxalism is a social, economic and developmental issue manifesting as a violent internal security threat. In this context, discuss the emerging issues gets a multilayered strategy to tackle the menace of Naxalism. (UPSC CSE 2022)

Other Important Articles Covering the same topic:

Ruthless strategy to deal final blow, will end Naxalism by March 2026: Shah

Anti-Maoist operations status report

 

Govt & Politics

SC dismisses plea seeking review of verdict scrapping electoral bonds

UPSC Syllabus:

Preliminary Examination: Current events of national importance and Polity

Mains Examination: GS-II:  Governance and Polity, Government policies and interventions.

What’s the ongoing story- The Supreme Court has dismissed a plea seeking review of its February 15, 2024 judgment holding the Electoral Bonds Scheme, 2018 unconstitutional.

Prerequisites:

— Read about the electoral bonds scheme. 

— Why did the Supreme Court Strike Down the Electoral Bonds Scheme?

— Know about the Articles 14, 19 and 21 of the Indian Constitution. 

Key takeaways: 

— A five-judge bench of CJI D Y Chandrachud and Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra said that “there is no error apparent on the face of the record” of its February ruling. 

— “Application for listing the review petitions in open court is dismissed. Delay condoned. Having perused the review petitions, there is no error apparent on the face of the record. No case for review under Order XLVII Rule 1 of the Supreme Court Rules 2013. The review petitions are, therefore, dismissed,” the bench said in its September 25 order.

For Your Information:

— Introduced by the Centre in 2018, the electoral bonds scheme allowed individuals and corporations to anonymously fund political parties by purchasing electoral bonds from the State Bank of India.

— Electoral bonds were interest-free “bearer instruments, ” meaning they were payable to the bearer on demand, similar to a promissory note. 

— In “Moving past bonds” S.Y Quraishi suggested some electoral finance reforms, such as:

1. A ceiling for political parties’ expenditure.

2. Creation of Independent National Election Fund where all tax-free donations could be made.

3. Enforce internal democracy and transparency in the working of political parties and bring them under RTI.

4. Legally empower ECI proposal to cancel elections where credible evidence of abuse of money is found.

5. Debar from contesting elections persons against whom cases of heinous offences are pending in courts.

6. Empower the ECI to de-register political parties that haven’t contested an election for 10 years, but have benefited from tax exemptions.

7. Make paid news an electoral offence with two years’ imprisonment, by declaring it a “corrupt practice” (Section 100 of the Representation of the People Act) and “undue influence” (Sec 123(2)).

Points to Ponder: 

— What concerns were raised about the Electoral  Bonds?

— What initiatives have been taken to make elections in India free and fair? 

— What is crony capitalism? 

Post Read Question:

Prelims

(2) Consider the following statements:

1. Electoral bonds were interest-free “bearer instruments.

2. Individuals and corporations were allowed to anonymously fund political parties by purchasing electoral bonds from the State Bank of India.

Which of the statements given above is/are not correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Mains

What are the challenges associated with funding political parties? What steps should be taken to make elections more democratic and fair?

Other Important Articles Covering the same topic:

What are Electoral Bonds?

Why did the Supreme Court strike down the Electoral Bonds Scheme?

 

Opinion

1967: India’s last ‘One Nation, One Election’

UPSC Syllabus:

Preliminary Examination: Indian polity and Governance- Constitution, Political System

Mains Examination: GS-II: Polity, Parliament and State legislatures, Constitutional Bodies. 

What’s the ongoing story- Shyamlal Yadav writes— “Last time India saw “One Nation, One Election” was in 1967. The country’s fourth general elections involved 520 Lok Sabha constituencies and 3,563 Assembly seats. Polling was largely held during 15-21 February. It was a single-phase election in most of the states, but UP had it in four phases.”

Prerequisites:

— What are the constitutional provisions related to the elections in India?

— What are Simultaneous Elections?

— Organisation to look for:  Election Commission of India.

Key takeaways: 

— “The country’s tryst with simultaneous Lok Sabha and Assembly polls started right from the first general elections in 1952, which used to be followed by the elections to the posts of the President and the Vice-President.”

— “Following the 1962 polls, India underwent wide-ranging social and political changes. There was demoralisation due to the India-China war. In May 1964, the country’s first and longest-serving Prime Minister Jawaharlal Nehru passed away. He was succeeded by Lal Bahadur Shashtri, who died in Tashkent on January 11, 1966 just after signing a declaration to resolve the 1965 India-Pakistan war.”

— “Amid these crises, Nehru’s daughter Indira Gandhi took charge as the PM on January 24, 1966 by defeating Morarji Desai in the Congress Parliamentary Party (CPP) leader’s election. This created a rift between Indira and the Congress veterans like Desai, which was reflected in the 1967 polls.”

— “Besides the Opposition parties’ campaign against the Congress, there was a rising political assertion by the farming communities in the wake of the Green Revolution. The Opposition parties tried to tap into their discontent, using slogans like Lohia’s “Pichhade Paavain Sau Mein Saath (OBCs must get 60%)” to galvanise these classes, which proved crucial in weakening the Congress in North India. And in states like Tamil Nadu, it was the coalition of the Swatantra Party and the DMK which ensured the Congress’s defeat.”

— “In 1967, the total number of electors in the country was 25.03 crore, while the population was 43.87 crore as per 1961 Census. The citizens above 21 years were eligible voters. The polls saw a turnout of 61.33%, which was highest since 1952. The Congress got a majority in the Lok Sabha by winning 283 seats out of 520, but this was the party’s lowest tally since 1952 even though its vote share was still 40.78%.”

— “Interestingly, in 1967, the Election Commission of India (ECI) was mulling a fixed schedule for the synchronised polls so that governments would not face problems over the commencement of the budget sessions…However, such proposals remained a distant dream as simultaneous elections have not been held in the country since.

For Your Information:

— Simultaneous elections, popularly referred to as “One Nation, One Election”, means holding elections to Lok Sabha, all state Legislative Assemblies, and urban and rural local bodies (municipalities and panchayats) at the same time. 

— Currently, all these elections are held independently of one another, following timelines dictated by the terms of every individual elected body.

— The Union Cabinet has cleared the proposal to hold simultaneous elections in India, as recommended by a high-level committee headed by former President Ram Nath Kovind. 

— The Kovind committee had recommended simultaneous elections, popularly referred to as “One Nation, One Election” for the Lok Sabha and state assemblies as the first step followed by synchronised local body polls within 100 days.

Points to Ponder: 

— What are the reasons for not having simultaneous elections in India since 1967?

— What are the potential benefits of simultaneous elections?

— What are the challenges of simultaneous elections?

— What electoral reforms have been introduced in India?

Post Read Question:

(3) Consider the following pairs:

1. Bharatiya Jan Sangh (BJS) : Pt Deendayal Upadhyay

2. Swatantra Party                    : C Rajagopalachari

3. Samyukta Socialist Party    : Ram Manohar Lohia

How many of the pairs given above is/are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Other Important Articles Covering the same topic:

Knowledge nugget of the day: ‘One Nation, One Election’

 

The World 

Congo finally begins mpox vaccinations

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance; General Science

Mains Examination: GS-II, GS-III: Government policies and interventions, Health, Science and Technology

What’s the ongoing story- Congolese authorities Saturday began vaccinations against mpox, nearly two months after the disease outbreak that spread from Congo to several African countries and beyond was declared a global emergency by the World Health Organization.

Prerequisites:

— What is Mpox and how is it transmitted?

— How is Mpox different from COVID-19?

— Organisation to look for: World Health Organisation

Key takeaways: 

— The 265,000 doses donated to Congo by the European Union and the U.S. were rolled out in the eastern city of Goma in North Kivu province, where hospitals and health workers have been overstretched, struggling to contain the new and possibly more infectious strain of mpox.

— Congo, with about 30,000 suspected mpox cases and 859 deaths, accounts for more than 80% of all the cases and 99% of all the deaths reported in Africa this year. All of the Central African nation’s 26 provinces have recorded mpox cases.

For Your Information:

— Mpox, previously known as monkeypox, is a self-limiting viral infection caused by mpox virus (MPXV). The most common symptoms of mpox include fever, headache, muscle aches, back pain, low energy, and swollen lymph nodes, along with pox-like rashes that last for two to three weeks. It is a self-limiting disease but can lead to death, especially among children and those with weak immune systems.

— According to WHO, there are two broad clades of the Mpox virus: clade I and II. Clade I leads to more severe disease and death than clade II in the populations where it is endemic. Clade II was behind the global mpox outbreak that began in 2022. At least 99,176 cases and 208 deaths due to monkeypox have been reported from 116 countries since 2022, according to WHO data.

— A new offshoot of clade I virus, called clade Ib, was first reported in the Democratic Republic of the Congo in 2023, and has been spreading through sex and other types of close contact.

Points to Ponder: 

— What is the difference between pandemic, epidemic, and endemic?

— What does the WHO’s declaration of a Public Health Emergency of International Concern (PHEIC) mean?

— Which diseases have been declared PHEICS by WHO?

— What measures should be taken to tackle the challenge of the spread of various viral diseases?

Post Read Question:

(4) With reference to the Mpox, consider the following statements:

1. It was first discovered in humans in Nigeria.

2. It is not transmitted from animals to humans.

3. The vaccines developed for smallpox are up to 80% effective against mpox.

4. The World Health Organization (WHO) classified mpox as a global public health emergency.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Other Important Articles Covering the same topic:

UPSC Issue at a Glance | Mpox outbreak and Public Health Emergency: 5 Key Questions You Must Know for Prelims and Mains

 

Economy

With long delays and steep haircuts, chorus for revamping IBC grows louder

UPSC Syllabus:

Preliminary Examination: Current events of national importance, Economic Development

Mains Examination:  GS-II, GS-III: Government policies and interventions, Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment.

What’s the ongoing story- India’s G20 Sherpa Amitabh Kant’s call for reforms in India’s insolvency resolution framework to cut delays and boost creditor recovery is latest in the growing chorus for making the Insolvency and Bankruptcy Code more effective. 

Prerequisites:

— What is the Insolvency and Bankruptcy Code (IBC)?

— Read about the Insolvency and Bankruptcy Board of India.

— What were the first generation of economic reforms?

Key takeaways: 

— Introduced in 2016, the code promised an overhaul of insolvency resolution with the aim to rescue and reorganise distressed companies through a time-bound process, prioritising their survival as going concern.

— Eight years on, while the IBC has had a few successes, it is marred by issues like high case backlog, lengthy delays in admission and resolution, and steep haircuts for creditors. In the recent past, various stakeholders, including RBI Governor Shaktikanta Das and the Parliament’s Standing Committee on Finance, also flagged concerns and the need to rethink the IBC’s design.

— While the IBC has fostered a culture of accountability and credit discipline among debtors, its efficiency is being undermined by procedural delays, shortage of personnel, deviations from key principles, and slow implementation of critical provisions.

—Procedural delays:  “We must acknowledge some concerns regarding the present functioning of the IBC, indicating a need for a second generation of reforms. Analysis of IBBI’s (Insolvency and Bankruptcy Board of India) own data shows that insolvency resolutions at the National Company Law Tribunal (NCLT) averaged 716 days in FY24, up from 654 days in FY23,” Kant said Monday. The prescribed resolution timeline is 330 days.

— In February 2024, the Standing Committee on Finance had flagged delays and their impact on the value of stressed assets and called for a review of the IBC’s design.

— Steep haircuts: There is an inverse relationship between resolution time and debt recovery. As of March 31, cases resolved within 330 days saw a recovery rate of 49.2 per cent of admitted claims. For those resolved between 330 and 600 days, the recovery rate was 36 per cent. For those exceeding 600 days, the recovery rate was just 26.1 per cent.

— Apart from value erosion for creditors, experts argue that delays are pushing outcomes towards liquidation, defeating the process’s raison d’etre.

— IBBI chairperson Ravi Mital recently said IBC cases take time as it is a creditor-led model, not debtor–led, and “the debtor tries his best to ensure that the case is not admitted”, which leads to late admissions and consequently higher value erosion and haircuts for lenders.

— Legal issues: While the NCLT should ideally decide on whether a case can be admitted under the IBC within 14 days of an insolvency application, it often takes months and sometimes even over a year to initiate insolvency proceedings. The reason, at least partly, is legal in nature.

— Human resource crunch: It is no secret that the system is choked and understaffed, with NCLT benches grappling with heavy case burden. While there has been an effort from the government to improve the staffing situation, it is still nowhere close to what is needed.

— Kant emphasised the need to “clarify ambiguity on key legal principles,” particularly regarding the supremacy of the Committee of Creditors’ (CoC) commercial judgement and the established priority of claims.

— The government is already considering amendments to the IBC after a comprehensive review was undertaken last year. According to Kant, India should also consider moves like outsourcing court management for insolvency proceedings to private players.

Points to Ponder: 

— Why was the Insolvency and Bankruptcy Code introduced?

— What steps should be taken to address the issues and challenges associated with the functioning of the IBC?

Post Read Question:

What is the role of the Insolvency and Bankruptcy Code (IBC) in the resolution of stressed assets? Discuss its achievements and limitations. 

Other Important Articles Covering the same topic:

Express View: Bankruptcy code’s loose ends

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