CURRENT AFFAIRS 18 OCTOBER 2019

CURRENT AFFAIRS

18 OCTOBER 2019

1. Brexit deal with EU(gs-2,3)

Context: Britain clinches Brexit deal, Johnson now faces parliament challenge
Britain clinched a last-minute Brexit deal with the European Union on Thursday, but still faced a challenge in getting it approved by parliament.
“Where there is a will there is a deal - we have one. It's a fair and balanced agreement for the EU and the UK and it is a testament to our commitment to find solutions,” European Commission President Jean-Claude Juncker said in a tweet a few hours before an EU summit in Brussels.

He said he would recommend that leaders of the other 27 member states approve the deal.
“I believe it is high time to complete the divorce process and move on, as swiftly as possible, to the negotiation on the European Union's future partnership with the UK,” Juncker said in an attached letter.
Separately, British Prime Minister Boris Johnson said “we have a great new Brexit deal”.
Johnson is hoping to get approval for the agreement in a vote at an extraordinary session of the British parliament on Saturday, to pave the way for an orderly departure on October 31.
Johnson, who was the face of the campaign to leave the EU in Britain's 2016 referendum, has repeatedly said he will not ask for a delay - even though parliament has passed a law to oblige him to do just that if it has not agreed and ratified a deal by Saturday

Britain clinches Brexit deal, Johnson now faces parliament challenge

What is brexit deal?

It is the abbreviation of “British Exit” from the European Union (EU).
Brexit mirrors the term Grexit — a term which was coined and used by two Citigroup’s economists in February 2012 to refer to the possible exit of Greece from the EU.
Britain has had a troubled relationship with the EU since the beginning and has made various attempts in the past to break away from it.
Brexit: How does it affect India and the World?
Brexit: Right Wing Conservatism We have tried to include everything you need to know about the Brexit here after much research.
We hope our readers would get clear answers to many questions like ‘What is Brexit?’, ‘What is the European Union?’, Why the ‘Leave EU’ campaign?’, ‘Brexit referendum and the result’, ‘positive and negative impact of Brexit referendum to India and the world’ etc.

What is Brexit?

It is the abbreviation of “British Exit” from the European Union (EU).
Brexit mirrors the term Grexit — a term which was coined and used by two Citigroup’s economists in February 2012 to refer to the possible exit of Greece from the EU.
Britain has had a troubled relationship with the EU since the beginning and has made various attempts in the past to break away from it.

What is the European Union?

The EU is a political, trade and economic union founded in 1957. It evolved over decades and reached its present model in 1992.
There are 51 countries in Europe, out of which 28 countries have signed a treaty to become a part of the European Union. So, clearly, there are countries in Europe which are not part of the European Union.
The EU treaty provided for a European Parliament and European Council which consisted of representatives of the member states.
EU members account for 16 per cent of world imports and exports.
It is the largest trading bloc in the world surpassing the US.
In 2012, the EU was awarded the Nobel Peace Prize for advancing the causes of peace, reconciliation, democracy and human rights in Europe.

About the referendum and the result

A referendum denotes voting in which everyone (or nearly everyone) of voting age can take part, normally giving a ‘Yes’ or ‘No’ answer to a question. The side which gets more than half of all votes cast is declared a winner.
Prime Minister David Cameron (Conservative Party) had promised to hold a referendum for Brexit if he won the 2015 general election. But, he led the campaign for ‘stay’ vote.
There were growing calls from many MPs of the Conservative Party and the UK Independence Party (UKIP), for a new referendum. (In 1975, Britain had voted to stay in the EU in a referendum).
A referendum was held on June 23, 2016, to decide whether Britain should exit or remain in the European Union.
Eligible voters: All British, Irish and Commonwealth citizens over 18 who are resident in the UK, along with UK nationals living abroad who have been on the electoral register in the UK in the past 15 years.
51.9% of voters favoured exit of Britain from the EU. It is the first time since the EU was founded in 1957 that a member country is leaving.

India, the UK, and the European Union

India is one of the top investors in the UK.
There are about 800 Indian-owned companies in the country employing roughly 110,000 people. (Eg: Jaguar Land Rover is owned by the Tata group)
Many of these firms made investments with the wider European market in mind.
Together, the UK and Europe account for over-a-quarter of the country’s IT exports, worth around $30bn.
The UK is the third largest source of foreign direct investment in India and India’s largest G20 investor.
India is the third largest source of FDI to the UK in terms of numbers of projects. India invests more in the UK than in the rest of Europe combined, emerging as the UK’s third largest FDI investor.
The key sectors attracting Indian investment include healthcare, agritech, food, and drink.
In November 2015, Prime Minister Modi has said, ”As far as India is concerned, if there is an entry point for us to the EU, that is the UK.”
But, the UK is only India’s 12th largest trade partner, well behind other European countries such as Germany and Switzerland.
Interestingly, the UK is also among just seven in 25 top countries with which India enjoys a trade surplus.

Negative Impacts of the Brexit referendum on India

India will have to adjust to changing world order.
There may be foreign fund outflow and dollar rise.
Rupee may depreciate because of the double effect of foreign fund outflow and dollar rise.
This may increase petrol and diesel prices to an extent.
The government then may want to reduce additional excise duty imposed on fuel when it was on a downward trajectory. This may increase fiscal deficit unless revenue increased.
Prices of gold, electronic goods, among others may also increase.
Sensex and Nifty may tumble in the short-run.
The falling value of the pound could render several existing contracts loss-making.
The vote is also bad news for Indian outsourcers.
Foreign funds are likely to move out if the world outside thinks that investment in India is risky.
India’s Forex (currently a record 363 billion dollars) may diminish, particular if the currency is stored in Euros or Pound (this comes around 20% of total forex).
Brexit will have a negative impact on the $108 billion Indian IT sector in the short term.
Many Indian companies are listed on the London Stock Exchange and many have European headquarters in London. Brexit will take away this advantage.
Due to fall in the value of Pound sterling, Indian exports to the UK will suffer. Cheaper rupee will make Indian exports, including IT and ITeS, competitive. Indian import companies operating in the UK may also report a loss. Also, note that India is exporting more than what it is importing from Britain.
Positive Impacts of the Brexit referendum on India
There are many who think a weakening British currency might be good news.
India being more of an importing country than an exporting nation, the overall effect may turn out positive for India (if the dollar doesn’t appreciate much against rupee).
With lower pound value, Indian companies may be able to acquire many hi-tech assets.
As investors look around the world for safe havens in these turbulent times, India stands out both in terms of stability and of growth.
Brexit might give a boost to trade ties between India and the UK.
Britain will now be free to discuss a bilateral trade pact with India.
Due to the fall in the value of Pound sterling, those who import from the UK will gain. Indian export companies operating in the UK may also gain.
More Indian tourists can afford to visit Britain in the coming days as the currency value has fallen.
More Indian students can afford to study in Britain (for higher education) as the fees may seem cheaper.
Britain will need a steady inflow of talented labour, and India fits the bill perfectly due to its English-speaking population.
The fall in the prices of commodities like crude, which will help India save a lot on its import bill (every $1 drop in crude prices leads to roughly $1 billion savings in India’s oil import bill), reducing its trade and current account deficits (CAD).
Brexit would weaken global growth and lead to a meaningful decline in commodity prices. This is only going to enhance both the relative and absolute appeal of India.
Lower commodity prices will help the macro fundamentals: be it fiscal deficit, current account deficit or inflation, which will give the government more levers to pump up the investment cycle.
Brexit: What does it mean to Britain?
As per International Monetary Fund (IMF), a vote to exit the European Union in the referendum could leave Britain’s economy more than 5 per cent smaller by 2019 than if it stays in the 28-nation club.
Brexit could cause the country’s economy to be between 3.8 and 7.5 per cent smaller by 2030.
The pound expected to fall by around 20 per cent. This would mean that exports to the UK will suffer and imports from the UK will gain. Export companies operating in the UK will gain, while import companies will lose.
More foreign tourists will visit Britain in the coming days as the currency value has fallen.
More foreign students may prefer Britain for higher education as the fees may seem cheaper.
EU citizens in Britain and Brits living in other EU nations would have to update their immigration statuses.
Companies operating in both the UK and the EU would have to verify that they’re compliant with two sets of laws.
US President Obama has warned that it could take 10 years for Britain to negotiate a new trade deal with the US.
The referendum results (52:48) is very close. This means a major division of opinion in Britain which has social implications too. While the less educated and the old seems to favour the ‘leave EU’ campaign, the young and the employed are more in favour of Britain staying in the EU.
Brexit could encourage England, Wales, Scotland, or Northern Ireland to appeal for quitting the United Kingdom.

Brexit: What does it mean to the World?

Remittance from the UK to countries outside in terms of Pound will fetch lesser returns compared to the past.
Export dominated countries may be affected, whether exporting to the UK or not. If the UK is the major trading partner, the effect will be more.
The United States will bear the major brunt of a Brexit being the UK’s biggest trading partner.
A direct impact on Asian economies from Brexit is unlikely in the long term because as a percentage of GDP, exports to the UK is less than 2% for most economies.
But businesses in some major Asian economies – like India and Japan- will be hit.
Companies which have set up operations in the UK to gain access to EU markets will be affected.
BREXIT would likely allow any US Dollar strength to play out. This may cause other currencies to decline in value.

2.LEGISLATIVE COUNCIL(gs-2)

Context: Legislative Council abolished in J&K
Once dominating the news for setting debates and settling sticky discourses for 70 years, the Jammu & Kashmir Legislative Council, the upper house of the Assembly, was abolished on Thursday as per Section 57 of the J&K Reorganisation Bill, 2019, which reduced the State to the Union Territories of J&K and Ladakh.
A spokesman of the General Administration Department (GAD) said all the staff members of the Council shall report to the GAD by October 22. There are 116 employees working with the Council since the first Constituent Assembly came into being in 1957.
“The Council has discussed and passed sticky Bills like the land to tiller law, resettlement Bill and autonomy resolution. It became a vibrant platform to discuss the Delhi agreement of 1952 and the Delhi-Srinagar accord of 1975,” a senior employee of the Council said, speaking on condition of anonymity.
The Council, which had a strength of 36 members, also used to be a part of the electoral college for the Rajya Sabha elections.
The Secretary of the Council has been directed to transfer all records pertaining to the Council Secretariat, including related legislative business, to the Department of Law, Justice and Parliamentary Affairs.

What are the Legislative Councils, and why are they important?

India has a bicameral system i.e., two Houses of Parliament. At the state level, the equivalent of the Lok Sabha is the Vidhan Sabha or Legislative Assembly; that of the Rajya Sabha is the Vidhan Parishad or Legislative Council.
A second House of legislature is considered important for two reasons: one, to act as a check on hasty actions by the popularly elected House and, two, to ensure that individuals who might not be cut out for the rough-and-tumble of direct elections too are able to contribute to the legislative process.

Why do we need a second house?

They can be used to park leaders who have not been able to win an election.
They can be used to delay progressive legislation.
They would strain state finances.
Having a second chamber would allow for more debate and sharing of work between the Houses.

3.Global tuberculosis report 2019(gs-2,3)

Context:TB cases see decrease in India Number of patients fell by almost 50,000 over the past year, says WHO report
The tuberculosis incidence rate in India has decreased by almost 50,000 patients over the past one year, according to the World Health Organization (WHO)-2019 edition of the Global Tuberculosis (TB) Report released on Thursday.
The report notes that in 2017, India had 27.4 lakh TB patients which came down to 26.9 lakh in 2018. Incidence per 1,00,000 population has decreased from 204 in 2017 to 199 in 2018. The number of patients being tested for rifampicin resistance has increased from 32% in 2017 to 46% in 2018. And the treatment success rate has increased to 81% for new and relapse cases (drug sensitive) in 2017, which was 69% in 2016.
The report provides a comprehensive and up-to-date assessment of the TB epidemic and progress in the response at global, regional and country levels for India.

Global Tuberculosis Report 2019:by WHO

New data on tuberculosis trends in 202 countries

TB remains one of the top 10 causes of death worldwide. Millions of people continue to fall sick from TB each year. The Global TB Report 2019 provides a comprehensive and up-to-date assessment of the TB epidemic, and progress in the response, at global, regional and country levels. It features data on disease trends and the response to the epidemic in 202 countries and territories.
The Global Report includes trends in TB incidence and mortality, data on case detection and treatment results for TB, multidrug-resistant TB (MDR-TB), TB/HIV, TB prevention, universal health coverage as well as financing. It presents progress towards targets set at the first-ever United Nations General Assembly high-level meeting on TB in 2018, that brought together heads of state, as well as the targets of the WHO End TB Strategy and the Sustainable Development Goals.
The report also includes an overview of pipelines for new TB diagnostics, drugs and vaccines. Additionally, it outlines a monitoring framework that features data on SDG indicators that can be used to identify key influences on the TB epidemic at national level and inform the multi-sectoral actions required to end the TB epidemic.

4.FATF(GS-2,3)

CONTEXT:FATF may keep Pak. on grey list
But the country is likely to be issued strong warnings and put under pressure
Pakistan could escape being blacklisted by the Financial Action Task Force (FATF) on Friday, but the international watchdog on terror finance is likely to issue strong warnings to it and keeping the country on the grey list, sources said. On Tuesday, the FATF’s International Cooperation Review Group (ICRG) discussed Pakistan’s actions for countering terror financing and antimoney laundering (CFT/AML). Diplomatic sources stressed that no decision on Pakistan’s listing had been taken as yet, and the 39 member body would only decide whether to continue keeping Pakistan on the grey list or downgrade it to the blacklist. Given that China, Turkey and Malaysia were ranged against blacklisting Pakistan, officials have been saying that it was unlikely these countries would allow it this time. The latest mutual evaluation report by the Asia Pacific Group (APG) on CFT and AML released on October 14 assigned a national riskrating of ‘medium’ to Pakistan. The report said that since February 2018, Pakistan had taken positive actions against these organisations “but UNSCR 1267 is not being fully implemented”

FATF:

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7. It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas. The FATF Secretariat is housed at the OECD headquarters in Paris.
Objectives: The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Functions: The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures and promotes the adoption and implementation of appropriate measures globally. In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

What is blacklist and grey list?

FATF maintains two different lists of countries: those that have deficiencies in their AML/CTF regimes, but they commit to an action plan to address these loopholes, and those that do not end up doing enough. The former is commonly known as grey list and latter as blacklist.
Once a country is blacklisted, FATF calls on other countries to apply enhanced due diligence and counter measures, increasing the cost of doing business with the country and in some cases severing it altogether. As of now there are only two countries in the blacklist — Iran and North Korea — and seven on the grey list, including Pakistan, Sri Lanka, Syria and Yemen.

5.NITI Aayog India Innovation Index 2019 (GS-2)-SOURCE:PIB

Karnataka tops the Innovation Index followed by Tamil Nadu, Maharashtra, and Delhi
NITI Aayog with Institute for Competitiveness as the knowledge partner released the India Innovation Index (III) 2019. Karnataka is the most innovative major state in India. Tamil Nadu, Maharashtra, Telangana, Haryana, Kerala, Uttar Pradesh, West Bengal, Gujarat, and Andhra Pradesh form the remaining top ten major states respectively. The top ten major states are majorly concentrated in southern and western India. Sikkim and Delhi take the top spots among the north- eastern & hill states, and union territories/city states/small states respectively. Delhi, Karnataka, Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh are the most efficient states in translating inputs into outpuT
The index was released in the presence of Dr. Rajiv Kumar, Vice Chairman, NITI Aayog; Amitabh Kant, CEO, NITI Aayog; Ashutosh Sharma, Secretary, Department of Science; Renu Swarup, Secretary, Department of Biotechnology and Vaidya Rajesh Kotecha, Secretary, AYUSH.
Dr. Rajiv Kumar expressed hope that “the India Innovation Index would create synergies between different stakeholders in the innovation ecosystem and India would shift to competitive good governance.” Shri Amitabh Kant added that “India has a unique opportunity among its myriad challenges to become the innovation leader in the world.” Renu Swarup said, “cluster-based innovation should be leveraged upon as the focal point of competitiveness.” Shri Ashutosh Sharma said, “The index is a great beginning to improve the environment of innovation in the country as it focuses on both the input and output components of the idea.” Shri Vaidya Kotecha said, “The index is a good effort to benchmark the performance of the state with each other and promote competitive federalism.”
The study examines the innovation ecosystem of Indian states and union territories. The aim is to create a holistic tool which can be used by policymakers across the country to identify the challenges to be addressed and strengths to build on when designing the economic growth policies for their regions. The states have been bifurcated into three categories: major states, north-east, and hill states, and union territories/city states/small states.

Background:

Recognizing the role of innovation as a key driver of growth and prosperity for India, NITI Aayog with Institute for Competitiveness as the knowledge partner has released the India Innovation Index 2019. The study is an outcome of extensive research and analysis, which looks holistically at the innovation landscape of India by examining the innovation capabilities and performance of Indian states and union territories. The aim is to create a holistic tool which can be used by policymakers across the country to identify the challenges to be addressed and strengths to build on when designing the economic growth policies for their regions.

The index attempts to create an extensive framework for the continual evaluation of the innovation environment of 29 states and seven union territories in India and intends to perform the following three functions- 1) ranking of states and UTs based on their index scores, 2) recognizing opportunities and challenges, and 3) assisting in tailoring governmental policies to foster innovation.
The India Innovation Index 2019 is calculated as the average of the scores of its two dimensions - Enablers and Performance. The Enablers are the factors that underpin innovative capacities, grouped in five pillars: (1) Human Capital, (2) Investment, (3) Knowledge Workers, (4) Business Environment, and (5) Safety and Legal Environment. The Performance dimension captures benefits that a nation derives from the inputs, divided in two pillars: (6) Knowledge Output and (7) Knowledge Diffusion.
The index presents the latest findings and highlights the regional catalysts and caveats for promoting innovation readiness. The Report offers a comprehensive snapshot of the innovation ecosystem of 29 states and seven union territories. It also includes a section on state profiles covering 33 indicators looking at the different facets of innovation in India.
The index shows that the innovation ecosystem of the country is strong in south and western parts of India. In fact, three of the top five major states are from southern India. Delhi and Haryana seem to be an exception to this rule and seem to be doing well on the Index. Thus, there seems to be a west-south and north-east divide across the country.
The states have been bifurcated into three categories: major states, north-east and hill states, and union territories / city states / small states. Karnataka is the leader in the overall rankings in the category of major states. Karnataka’s number one position in the overall ranking is partly attributed to its top rank in the Performance dimension. It is also among the top performers in Infrastructure, Knowledge Workers, Knowledge Output and Business Environment.

Among the category of major states, Maharashtra performs the best in the dimension of Enablers. This implies that it has the best enabling environment for innovation, even though the state comes in at the third position in the overall innovation index.
The broad level learnings and some policy imperatives at the national level include increasing the spending on research and development, improving the capability of top rung educational institutions in the country to produce greater innovation outputs. There is also a need for greater coordination and collaboration between the industry and educational institutions for enhancing innovation capability. A collaborative platform consisting of all the stakeholders of innovation - innovators, researchers, and investors from the industry should be developed. This will help in strengthening the industry-academia linkages and will ease the process of technology transfer by providing a platform for innovators to showcase their inventions.
At the state level, broad level key learning includes forming policies at the state level that seek to improve the innovation and entrepreneurial ecosystem. Cluster development programs are also an area in need of greater coordination and can benefit from a more open collaborative approach. Also, the industrial policies at the state level should focus more on innovation. At present only a few policies exist for innovation even in the most innovative states and union territories.

6.Saharan silver ants (GS-3)

CONTEXT:the Saharan silver ant is the fastest of the world’s 12,000 known ant species, clocking a blistering 855 millimetres — nearly a metre — per second, researchers said on Thursday.
Measured another way, the sixlegged sprinter covers 108 times its own body length per second, a feat topped only by two other creatures, the Australian tiger beetle and the California coastal mite. To run 100 times his body length as quickly, the fastest man in the world, Usain Bolt, would need to sprint the 200metre dash in less than a second.
Making the exploit even more remarkable, the Saharan silver hits top speed racing at midday across desert sands that reach 60°C , the researchers reported in the Journal of Experimental Biology.
At top speed, the Saharan silver easily outpaces its nearest ant competitor Cataglyphis fortis — despite having significantly shorter legs. It does this by swinging its tiny 5mm long appendages at speeds of up to 1,300 mm per second