Prelims Primer Jul-Aug 2020 Part 1 theIAShub F

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INTENSIVE NEWS ANALYSIS (INA): TARGET 2022 Under the Guidance of M K YADAV

TABLE OF CONTENTS PRELIMS FACTSHEET

1 PRADHAN MANTRI SHRAM YOGI MAAN-DHAN YOJANA (PM-SYM) - Common Services Centre (CSC), Unorganized Workers, Atal Pension Yojana (APY)

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2 PRADHAN MANTRI LAGHU VYAPARI MAAN-DHAN YOJANA (PMLVM) 3 3 ATAL BIMIT VYAKTI KALYAN YOJANA - ESIC, Frictional unemployment, Rajiv Gandhi Shramik

Kalyan Yojana (RGSKY) 4

4 PRADHAN MANTRI KISAN MAANDHAN YOJANA (PM-KMY) 6 5 PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-KISAN) 7 6 MEMBER OF PARLIAMENT LOCAL AREA DEVELOPMENT (MPLAD) SCHEME 8

PRELIMS PRIMER 1 FINANCIAL ACTION TASK FORCE (FATF) – G-7, Asia/Pacific Group on Money Laundering (APG) 10

PRE-CUM MAINS PRIMER 1 INDIA AND EMERGING GEOPOLITICS OF THE INDIAN OCEAN REGION - IORA, INDIAN OCEAN

DIALOGUE (IOD), IONS, SAGAR, IFC-IOR, Tracks of Diplomacy 13

CURRENT AFFAIRS (PRE-CUM-MAINS, 2022)

Intensive News Analysis (INA)

BOOKLET # 1

JULY – AUGUST 2020 (PART I)


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The News:

• Over 45 lakh persons have enrolled under the Pradhan Mantri Shram Yogi Maandhan Scheme (PM-SYM), a mega pension scheme for the benefit of the unorganized workers.

About PM-SYM • A central sector scheme, launched in 2019. • Objective - A voluntary and contributory pension

scheme for old age protection and social security of Unorganised Workers (UW).

• Nodal Ministry - Ministry of Labour & Employment • Target Beneficiaries - Unorganised Workers (UW)

who are mostly engaged as rickshaw pullers, street vendors, mid-day meal workers, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, home-based workers, agricultural workers, construction workers, Beedi/handloom/leather workers, or in similar other occupations.

• Eligibility – - Should be an unorganised worker (UW). - Entry age between 18 and 40 years - Monthly Income ₹15000 or below. - Should possess Aadhar card and Savings Bank

Account / Jan Dhan account number with IFSC.

• Exclusion criteria - Should not be engaged in Organized sector (ie. should not be a member of Employees’ Provident

Fund (EPFO), Employees’ State Insurance Scheme (ESIC), and the National Pension Scheme (NPS)). - Should not be a tax payer.

• Contribution - The subscriber is required to pay the prescribed age-specific monthly contribution amount (ranging between Rs 55 to Rs 200 per month) and the Central Government provides the equal matching contribution.

• Benefits - Assured monthly pension of Rs. 3000/- to the beneficiaries after attaining the age of 60 years. - Family Pension - If the subscriber dies, the spouse of the beneficiary shall be entitled to receive

50% of the pension as family pension. Family pension is applicable only to spouse. - If a beneficiary has given regular contribution and died due to any cause (before age of 60 years),

his/her spouse will be entitled to join and continue the scheme subsequently. • Implementation agency – Life Insurance Corporation of India and CSC eGovernance Services India

Limited (CSC SPV). LIC will be the Pension Fund Manager and responsible for Pension pay out. • Enrolment agencies - all the Common Services Centres (CSCs)

1. PRADHAN MANTRI SHRAM YOGI MAAN-DHAN YOJANA (PM-SYM) READ MORE AT:

//ECONOMICTIMES.INDIATIMES.COM/ARTICLESHOW/61581900.CMS?UTM_SOURCE=CONTENTOFINTEREST&UTM_MEDIUM=TEXT&UTM_CAMPAIGN=CPPST

UNORGANIZED WORKERS • ‘Unorganized worker’ is defined under the

Unorganized Workers Social Security Act, 2008 which is now replaced by Code on Social Security, 2020.

• It includes - A home-based worker or a self-employed

worker or a wage worker in the unorganized sector (ie. enterprise with less than 10 workers)

- A worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes (ie. who is not covered by the Industrial Disputes Act, 1947 or Chapters III to VII of Social Security Code).

• They do not have the benefit of pension, provident fund, gratuity, maternity leave etc. and work mostly on daily / hourly wages.

• Unorganized workers comprise > 90% of workforce in India & contribute about 50% of the GDP.

• National Commission for Enterprises in the Unorganized Sector (NCEUS) was set up in 2004 as an advisory body and watchdog to bring about improvement in the productivity of the unorganized sector.

PRELIMS FACTSHEET


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• Exit and Withdrawal - Considering the hardships and erratic nature of employability of Unorganised Workers (UW), the exit provisions of scheme have been kept flexible.

CSC e-GOVERNANCE SERVICES INDIA LIMITED

• A Special Purpose Vehicle (CSC SPV) - Incorporated under the Companies Act, 1956 • Nodal Ministry - Ministry of Electronics and Information Technology (MeitY), • Mandate-

- To monitor the implementation of the Common Services Centres (CSCs) Scheme. - To provides a centralized collaborative framework for delivery of services to citizens through CSCs. - Ensuring systemic viability and sustainability of the scheme.

Comparison between Atal Pension Yojana and Pradhan Mantri Shram Yogi Maandhan (PM-SYM)

Atal Pension Yojana (APY) Pradhan Mantri Shram Yogi Maandhan (PM-SYM)

Launched in 2015 2019 Target Unorganised Sector Unorganised Sector Nature Co-contributory (50% Central Govt.) Co-contributory (50% Central Govt.)

Promised Minimum Pension

Between ₹1,000-5,000. As per the contribution selected by the person Capped at ₹3,000 per month.

Eligible Age group 18-40 years 18-40 years Eligibility income

Limit No limit Only open to those with monthly income of up to ₹15,000

Contribution Monthly, quarterly or half yearly (Beneficial for people with irregular income) Only allows monthly contributions.

Returns on Death Spouse will be entitled to get the exact same pension amount as the subscriber.

Spouse shall be entitled to receive 50% of the pension.

Management By the Pension Fund Regulatory and

Development Authority (PFRDA) under the National Pension System (NPS)

Ministry of Labour and Employment

Implemented by All banks LIC and CSC e-Governance Services India Limited (CSC SPV).

The News: • The Pradhan Mantri Laghu Vyapari MaanDhan Yojana (PMLVM), which offers pension coverage to

small traders & self-employed persons, has received a lukewarm response.

Common Services Centre (CSC) • CSC are ICT enabled front end service delivery points at the village level for delivery of government

and private services like health, education, payment of utility bills, banking & insurance, cost-effective video, voice and data content and services etc.

• They are strategic cornerstone of Digital India initiative, also called Digital Kendra or Social Kendra.

2. PRADHAN MANTRI LAGHU VYAPARI MAAN-DHAN YOJANA (PMLVM) READ MORE AT:



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Pradhan Mantri Laghu Vyapari MaanDhan Yojana (PMLVM) • The National Pension Scheme for Traders and Self-Employed Persons Scheme (Pradhan Mantri Laghu

Vyapari Maan-dhan Yojana) is a pension scheme for shopkeepers/ retail traders and self-employed persons.

• Launched in 2019, it is a voluntary and contribution based central sector scheme. • Nodal Ministry - Ministry of Labour and Employment • Need – Operations of small traders are generally characterised by family owned establishments, small

scale of operations, labour intensive, inadequate financial aid, seasonal in nature and extensive unpaid family labour ➔ inadequate social security net.

• Eligibility – - Laghu Vyapari who are self-employed and working as shop owners, retail traders, rice mill owners,

oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants etc.

- Entry Age between 18 to 40 years. - Annual turnover not exceeding Rs 1.5 crore. - Should not be covered under any other statutory social security schemes such as National Pension

Scheme (NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme etc. or an income-tax assessee.

• Contribution: - The applicants between the age group of 18 to 40 years will have to make monthly contributions

(ranging between Rs 55 to Rs 200 per month), in accordance with the age of the eligible subscriber, till they attain the age of 60.

- The Central Govt will also make an equal contribution in the pension fund. • Benefits

- Assured pension of Rs 3000/- per month, after attaining the age of 60 years. - If the beneficiary dies after retirement, their spouse shall be entitled to receive 50% of the pension

as family pension ie. Rs. 1500. - If the beneficiary dies before retirement, the spouse may continue in the scheme by paying the

remaining contributions till the remaining age of the deceased. - If the beneficiary dies before retirement, if the spouse does not wish to continue, the total

contribution made by the subscriber along with interest will be paid to the spouse. - If the beneficiary dies before retirement, if there is no spouse, then the corpus shall be credited back

to the fund. • Benefits on disablement - If an eligible subscriber become permanently disabled due to any cause

before attaining his/her age of 60 years, and is unable to continue to contribute, their spouse shall be entitled to continue with the Scheme.

• Pension Fund Manager - Life Insurance Corporation of India.

The News: • The Employee’s State Insurance Corporation (ESIC), under the ‘Atal Bimit Vyakti Kalyan Yojna’, has

decided to relax the existing conditions and the amount of relief for workers who have lost employment during the Covid-19 pandemic period.

3. ATAL BIMIT VYAKTI KALYAN YOJNA READ MORE AT:



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About Atal Bimit Vyakti Kalyan Yojna (ABVKY) • Under the scheme, unemployment benefit is paid to the formal

sector workers covered under the Employees' State Insurance (ESI) scheme.

• It is a social security scheme aimed to compensate for the condition of ‘Frictional Unemployment’.

• Need for the Scheme – Due to the change in employment pattern and the current scenario in India, which has transformed from a long term to fixed short term engagement in the form of contract.

• Key Objective – To provide a relief in form of cash compensation to formal sector workers, directly into their bank accounts, in case of unemployment and while they search for new engagement.

• Nodal Ministry - Ministry of Labour and Employment • Implementing Agency - The ESI Corporation • Eligibility Criteria –

- Workers who are Insured Persons (IP) under the Employees’ State Insurance Act, 1948, for a period of two years continuously, immediately before her/his unemployment.

- The contingency of the unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.

• Funding - Workers who are left unemployed for whatsoever reasons will be paid money from their own contribution towards the ESI scheme.

• The person can choose to receive the cash at one go or in instalments.

• This scheme is in addition to the Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) under which ESIC subscribers are provided unemployment allowance.

ABVKY: Previously ABVKY: After relaxation Eligibility The Insured Person should have contributed

not less than 78 days during each of the preceding 4 contribution periods. Note: In a financial year, there are 2 contribution periods, each of 6 months duration.

Should have contributed for not less than 78 days in the contribution period immediately preceding the unemployment, and minimum 78 days in 1 of the remaining 3 contribution periods.

Cash benefit in case of

unemployment

25% of average per day earning, upto 90 days of unemployment, withdrawable once in a lifetime.

50% of average per day earning, upto 90 days of unemployment, withdrawable once in a lifetime.

Can be claimed 90 days after date of unemployment 30 days after date of unemployment

Frictional unemployment • It occurs when workers are

searching for new employment or transitioning from their old jobs to new ones.

• Also referred to as natural unemployment as it is present even when the economy is considered at full employment.

• Causes – Job-Skill mismatch, dissatisfaction with working conditions, etc.

Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

• RGSKY provides an unemployment allowance for the ESIC subscribers who are rendered unemployed involuntarily, only on account of 3 reasons: closure of factory, retrenchment, or permanent invalidity.

• Eligibility - Persons who have become unemployed after being insured for at least 3 years.

• Unemployment allowance equal to 50% of wage, for a maximum period of 2 years, along with medical care for the worker and his/her family.


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EMPLOYEES’ STATE INSURANCE CORPORATION (ESIC) • It is an autonomous corporation, created under the Employees' State Insurance Act, 1948. • Apex organization for administering Employees' State Insurance Scheme. • Founded in – 1952, headquartered in New Delhi • Nodal Ministry - Ministry of Labour and Employment • Members - representatives include Employers, Employees, the Central Government, State Government,

Medical Profession and Members of Parliament.

EMPLOYEES' STATE INSURANCE SCHEME • The Employees' State Insurance Scheme is an integrated measure of Social Insurance embodied in the

Employees' State Insurance Act, 1948. • It is the first self-financing health insurance cum social security scheme launched for the organized sector

working class, with monthly income below Rs. 21, 000/-. • Source of Financing - 3.25% of a worker’s monthly salary goes towards ESI scheme as the employer’s

contribution, 0.75% of the income is the employee’s share. • Coverage - The scheme applies to all factories and establishments employing at least 10 workers. • Benefits include –

- Medical benefits for treatment during incidences of sickness, maternity, disability and death due to injury during work.

- Other benefits - Confinement expenses, funeral expenses, vocational rehabilitation, physical rehabilitation, unemployment allowance and skill up gradation & training.

- The benefits are available the insuree as well as the insuree's family.

The News: • The Parliamentary Standing Committee for Agriculture recently expressed concern over the poor

response to Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY). • Only 21 lakh farmers have so far subscribed to the scheme, against the target to cover 3 crore by 2021-

22.

About Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) • It is a Central Sector Scheme for provision of old age pension to all landholding Small and Marginal

Farmers (SMF), with a view to provide them a social security net. • Launched in 2019. • Need – These farmers have minimal or no savings and do not have any source of livelihood when they

reach old age. • It is a voluntary and contribution based pension scheme. • Eligibility –

- For Small and Marginal Farmers - Entry Age between 18 to 40 years - Cultivable land up to 2 hectares as per land records of the concerned State/UT.

• Should not be - SMFs covered under any other statutory social security schemes such as National Pension Scheme

(NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme etc. - Farmers who have opted for Pradhan Mantri Shram Yogi Maandhan Yojana and Pradhan Mantri

Vyapari Maandhan administered by the Ministry of Labour & Employment. - Beneficiaries belonging to higher economic status (as mentioned under PM Kisan).

4. PRADHAN MANTRI KISAN MAANDHAN YOJANA (PM-KMY) READ MORE AT:



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• Contribution: - The applicants between the age group of 18 to 40 years will have to make monthly contributions

ranging between Rs 55 to Rs 200 per month, till they attain the age of 60. - The Central Government will also make an equal contribution of the same amount in the pension

fund. - The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate

contributions to the Fund. • Benefits

- Assured pension of Rs 3000/- per month after attaining the age of 60 years. - If the farmer dies after retirement, the spouse of the farmer shall be entitled to receive 50% of the

pension as family pension ie. Rs. 1500. - If the farmer dies before retirement, the spouse may continue in the scheme by paying the

remaining contributions till the remaining age of the deceased farmer. - If the farmer dies before retirement, if the spouse does not wish to continue, the total contribution

made by the farmer along with interest will be paid to the spouse. - If the farmer dies before retirement, if there is no spouse, then total contribution along with interest

will be paid to the nominee. • Pension Fund Manager - Life Insurance Corporation of India • Synergy with PM-KISAN - If the farmer is a beneficiary of the PM-KISAN Scheme, he/she may allow the

contribution to be directly paid from the same bank account in which he/she receives PM-Kisan benefit.

The News: • The government has expanded the scope of the

Pradhan Mantri KIsan Samman Nidhi (PM-KISAN) scheme to cover all farmers in the country, irrespective of the size of their land holdings.

• The revised Scheme is expected to cover around 2 crore more farmers, increasing the coverage of PM-KISAN to around 14.5 crore beneficiaries.

About PM-KISAN • It is a Central Sector Scheme (100% funding from GoI),

announced in interim Budget 2019-20, launched in February, 2019, but retrospectively applicable from December, 2018.

• Objective – To provide assured supplemental income to most vulnerable farmer families, to meet their emergent needs ie. procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.

• Eligible beneficiaries – - Previously - Small and Marginal landholder farmers' (SMF) families with cultivable land holding upto

2 hectare (5 Acres). - This has now been expanded to all land holding eligible farmer families (subject to exclusion criteria).

5. PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-KISAN) READ MORE AT:


Similar Programmes by other states

• Mukhyamantri Krishi Ashirvaad Yojna by Jharkhand government under which state government will provide Rs 5,000 per acre to farmers who own less than 5 acres of land, every year.

• Rythu Bandhu scheme by Telangana government provides ₹4,000 per acre for every season to all the farmers of the state.

• Krushak Assistance for Livelihood and Income augmentation (KALIA) by Odisha Government. It commits to give Rs 5,000 per SMF, twice a year, that is Rs 10,000 a year.

• Bhavantar Bhugtan Yojana in Madhya Pradesh was sought to provide relief to farmers by providing the differential between Minimum Support Price (MSP) and market prices.


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• Definition of Families - The SMFs landholder farmer family is defined as “a family comprising of husband, wife and minor children”.

• Financial assistance – Rs. 6,000 p.a. released in three 4-monthly instalments of Rs. 2000/- each over the year via Direct Benefit Transfer into bank accounts.

• Identification – The responsibility of identifying the eligible beneficiary farmers and uploading their data on PM-KISAN portal lies entirely with the state governments, subject to the "existing exclusion factors".

• Exclusion - There will be exclusion of certain categories of beneficiaries of higher economic strata which will be

separately notified by the Government. - These include - institutional land holders, farmer families holding constitutional posts, serving or

retired officers and employees of state/central government, PSUs and government autonomous bodies, Professionals like doctors, engineers and lawyers, retired pensioners with a monthly pension of over Rs 10,000, income tax payers etc.

The News: • Several Members of Parliament (MP) have appealed to the government for the restoration of the

Member of Parliament Local Area Development (MPLAD) scheme, so that legislators can meet the healthcare needs in their respective constituencies, in the face of COVID-19 pandemic's second wave.

• The MPLAD scheme was suspended by the government for two years (2020-21 and 2021-22) to ensure that the amount saved can go to Consolidated Fund of India, to fight COVID-19.

Members of Parliament Local Area Development Scheme (MPLADS) • The MPLAD Scheme is a Central Sector Scheme, launched in 1993-94. • Objective: It enables the MPs to recommend works of developmental nature with emphasis on

- creation of durable community assets in their constituencies, - based on locally felt needs - in the area of national priorities ie drinking water, education, public health, sanitation, roads etc.

• MPLADS implementation – by Ministry of Statistics and Programme implementation (MOSPI). MOSPI is responsible for the policy formulation, preparing MPLAD guidelines, release of funds and prescribing monitoring mechanism for implementation of the Scheme.

• Funding - MPLAD Scheme is fully funded by Government of India. - The annual MPLADS fund entitlement per MP

constituency is Rs. 5 crore and is non-lapsable. - The funds are released in the form of grants in-aid

directly to the district authorities. • Role of MPs

- MPs can only recommend work to district collector (up to Rs.5 Cr. per annum) and inspect them. - Lok Sabha (LS) MP can recommend work in his/her constituency within the state. - Rajya Sabha (RS) MP can recommend work in any district of the state from where they are elected.

6. MEMBER OF PARLIAMENT LOCAL AREA DEVELOPMENT (MPLAD) SCHEME


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- Nominated members (LS/RS) can suggest works in one or more districts, anywhere within the country.

- The MPs shall recommend at least 15% of MPLADS fund for areas inhabited by Scheduled Caste population and 7.5% for areas inhabited by Scheduled Tribes.

- In case of natural calamity, Lok Sabha MPs from the non-affected areas of the State can also recommend permissible works up to a maximum of Rs.25 lakh per annum in the affected area(s) in that State (calamity of severe nature – Rs. 1 Cr.)

- If an elected Member of Parliament finds the need to contribute MPLADS funds to a place outside that State/UT, or outside the constituency within the State, or both, the MP can recommend eligible works under the Guidelines, up to a maximum of Rs. 25 lakh in a financial year.

- All recommended eligible works should be sanctioned within 75 days from the date of receipt of the recommendation, after completing all formalities.

• Project Execution – by district collector through district authorities, who may in turn get it executed through implementation agencies like line department, NGOs, Local Self Governments etc.

• Role of District Authority – The district authority is empowered to examine the eligibility of works, sanction funds, select the implementing agencies, prioritise works, supervise overall execution, and monitor the scheme at the ground level. It is mandated to inspect at least 10% of the works under implementation every year.

• Special provision for convergence of MPLADS with other schemes - eg. MGNREGA, Khelo India, Swachh Bharat Abhiyan, Accessible India Campaign (Sugamya Bharat Abhiyan), and Sansad Aadarsh Gram Yojana to create more durable assets.

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UPaAI App for MPs • UPaAI (unified planning and analysis

interface) or ‘solution’ in English is an App that will support MPs to better monitor the development work in their constituencies.

• It provides an integrated platform for data on infrastructure and social indices for each constituency, information on about 50 central schemes and MP local area development (MPLAD) fund.

• The App provides district-wise information to the MP on his/her constituency & help him/her take better decisions related to MPLAD funds.

• It is also aimed at improving between the MPs and district authorities.

• The app is being monitored by the Prime Minister’s Office (PMO) and developed by non-profit Swaniti Initiative and Ank Aha.


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1.1 NEWS IN FOCUS • The Financial Action Task Force (FATF), at its recently held virtual plenary session, voted to keep

Pakistan on the grey list for its failure to take appropriate action against UN Security Council-designated terrorists such as 26/11 accused LeT founder Hafiz Saeed, LeT “operational commander” Zakiur Rehman Lakhvi, JeM chief Masood Azhar, etc.

• The Asia-Pacific Group (APG), an associate member of FATF, has also retained Pakistan in the Enhanced Expedited Follow Up List for failing to comply with its commitments on terror financing and money laundering.

1.2 BACKGROUND • Pakistan has been under the FATF’s scanner since June 2018, when it was put on the grey list due to

“strategic deficiencies” in its anti-money laundering and terrorism financing (AML/CFT) regime. • The motion to put Pakistan on the grey list was jointly moved by US and 3 key powers of Europe – UK,

France and Germany. • In order to move out of the grey list, Pakistan gave a high-level political commitment to work with the

FATF to strengthen its AML/CFT regime. • Pakistan and FATF agreed on the monitoring of 27 indicators under a 10-point action plan, with specific

deadlines, and a physical (on -site) verification. • Pakistan has largely completed 26 out of 27 action points.

FINANCIAL ACTION TASK FORCE (FATF) • It is an inter-governmental organisation formed in 1989 by G-7 Summit in Paris. • Secretariat: Located within Organisation for Economic Co-operation and Development (OECD) headquarters

in Paris. • Members: 39 member jurisdictions (including India) and 2 regional organisations (Gulf Cooperation Council

and European Commission). • FATF Observers: Indonesia • FATF Associate Members – 9 associate members, including Asia-Pacific Group (APG). • Objective: 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.

• FATF is a “policy-making body” working to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

• It has established a series of "Forty plus Nine" Recommendations (40 on Money Laundering and 9 on Terrorism Financing).

• FATF monitors the progress of its members in implementing necessary measures. • Until April 2019, FATF had operated under a fixed life-span, requiring a specific decision by its Ministers to

continue. However, a revised Open-Ended Mandate has commenced since April 2019. • The FATF's decision making body, the FATF Plenary, meets 3 times per year.

PRELIMS PRIMER

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1.3 WHAT IS FATF’S GREY LIST & BLACK LIST? • The FATF’s International Cooperation Review Group (ICRG) identifies jurisdictions with weak measures

to combat money laundering and terrorist financing (AML/CFT). • Those countries that commit to an action plan to address these deficiencies are put in the Grey List or

the ‘Increased Monitoring List’, while the countries that don’t commit to an action plan or don’t take legal and regulatory action in conformity with their commitments are put in Black List (“Non-Cooperative Countries & Territories”).

• Some Countries in Grey list - Pakistan, Haiti, Malta, Philippines, South Sudan, Albania, the Bahamas, Barbados, Botswana, Cambodia, Ghana, Iceland, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Panama, Syria, Uganda, Yemen, Zimbabwe etc.

• Pakistan had been earlier put in FATF’s grey list between 2012-15 due to lack of action against UN designated terror groups like JeM, LeT and Haqqani network and terrorists like Hafiz Saeed and Masood Azhar.

• As of 2021, only 2 countries have been blacklisted: Iran and North Korea.

1.4 IMPLICATIONS OF FEATURING IN FATF’S LISTS • Putting a country in ‘grey list’ doesn’t involve direct legal action but involves greater scrutiny by FATF’s

International Cooperation Review Group and other watchdogs. • However, once the country is blacklisted, FATF calls on its member countries to consider the risks arising

from blacklisted countries and impose strict financial sanctions and counter measures to protect their respective financial sectors.

• Potential impact on Grey Listed/Blacklisted countries: - Enhanced checking of transactions by creditors to avoid risk of violations pertaining to money

laundering and financing of terrorism. - Risk of downgrade by multilateral lenders like IMF, World Bank, ADB, EU etc. - Downgrading of sovereign ratings by Moody’s, S&P, Fitch etc. - Banking channel could be adversely affected as it is inextricably linked with the international

financial system. - Adverse impact on sentiment of foreign investors, leading to economy wide impact affecting

imports, exports, remittances and access to international lending.

GRASPING KEY TERMS G-7 COUNTRIES • G7 is an intergovernmental grouping consisting of Canada, France, Germany, Italy, Japan, the United

Kingdom, and the United States. • These countries are the 7 major advanced economies as reported by the International Monetary Fund. • G7 countries represent more than 64% of the net global wealth and 30% of Global GDP (PPP basis). • Founded by 6 member countries, in 1975, with the exception of Canada. • The G7 was formed initially to discuss economic and political concerns prompted by the 1973 oil crisis. • Meetings & Presidency - The representatives of the G7 countries meet annually to discuss international

economic and monetary issues. The president of the G7 rotates among the member states every year. ✓ Current Presidency - United Kingdom (Summit held in June 2021).

• Status of Russia - In 1998 Russia was fully admitted making it G8. However, in 2014, Russia was suspended from the group after it annexed Crimea, from Ukraine.

• G7 is not a formal institution and therefore lacks a secretariat. • India is not a member. However, France (in 2019), and UK (in 2021) invited India to attend the G7 summits

hosted by them.


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ASIA/PACIFIC GROUP ON MONEY LAUNDERING (APG) • APG is an autonomous, inter-governmental, anti-money laundering “task force”, regionally focused within

the Asia-Pacific. • Established in 1997 by unanimous agreement among 13 original founding members. • Members - 41 members (including India), 11 members of the APG are also members of FATF. • Observers – 8 (those who are considering APG membership or are those that have a presence outside the

APG region but fully support it.) • Secretariat - Sydney, Australia • APG is not established by international convention or treaty, or any other such legal instrument. • Like FATF, APG members come together, based on mutual agreement, on an ad hoc basis and take action

collectively on a consensus basis. • Relation with FATF

- APG is one of the FATF-Style Regional Bodies (FSRBs) and became an Associate Member of the FATF in 2006.

- APG's Terms of Reference recognise that the FATF's 40 recommendations are the international standards on AML/CFT and include a commitment that APG members must implement these standards.

- APG works closely with the FATF and have reciprocal rights of attendance at each other’s meetings as well as reciprocal sharing of documents.

- The APG and FATF undertake joint mutual evaluations of common members of both organisations. - All FATF-style regional bodies admitted to the FATF as associate members are automatically observers in

the APG. - Point to Note - India is a voting member of both the FATF and the APG.

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1.1 NEWS IN FOCUS

• The United Arab Emirates (UAE), as the current Indian Ocean Rim Association (IORA) Chair, recently hosted the 20th IORA Council of Foreign Ministers’ (COM) Meeting, virtually.

• France recently became the 23rd member of the Indian Ocean Rim Association (IORA), on the basis of Réunion Island only.

• This is the first time that a country whose mainland is not on the Indian Ocean has been brought into the fold of the IORA.

1.2 BACKGROUNDER

About Indian Ocean Rim Association (IORA) • The IORA is an inter-governmental organisation, established in 1997. • The vision for IORA originated during a visit by late President Nelson Mandela (of South Africa) to India

in 1995. • Objective - aimed at strengthening regional cooperation and sustainable development within the

Indian Ocean region. • 23 member states: South Africa, Mozambique, Tanzania, Kenya, Madagascar, Comoros, Mauritius,

Seychelles, Iran, Oman, UAE, Yemen, India, Sri Lanka, Bangladesh, Malaysia, Indonesia, Singapore, Thailand, Australia, Somalia, Maldives, and recently included France (2020).

• Note: Pakistan, Saudi Arabia, Myanmar are not members. • Eligibility for IORA membership - All sovereign States of the Indian Ocean Rim are eligible for

membership of the Association. • 9 Dialogue Partners - Japan, Germany, Italy, China, USA, UK, Egypt, South Korea and Turkey. • Apex Body - Council of Foreign Ministers (which meets annually). • Decision making - All decisions are taken through consensus. • IORA Secretariat - located at Ebene, Mauritius. • Current Chairmanship - UAE has taken over the Chair from South Africa for a 2 year period, upto 2021. • IORA has been granted Observer status at the United Nations General Assembly (UNGA).

1.3 NEWS ANALYSIS

Significance of Indian Ocean Region – To be Discussed in the Class. India’s interests in Indian Ocean Region

• IOR as India’s strategic backyard – - India is geographically located at the Ocean’s centre, has over 7,500 kilometres of coastline and is

littorals’ most populous country. - India views itself as the net provider of security and force for stability in the region. - India views the Indian Ocean as not just a water body, but a global stage for continued economic,

social, and cultural dialogue, and projection of its global aspirations.

INDIA AND EMERGING GEOPOLITICS OF THE INDIAN OCEAN REGION 1

PRE-CUM-MAINS PRIMER


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• Peace & Security – With strategic and economic pivots shifting to make the Indo-Pacific and IOR the centre stage of virtually every major power, India’s responsibility to keep the Indian Ocean as a ‘Zone of Peace’, free from superpower rivalry and increasing cooperation among littoral countries in the region, has increased.

• Non-traditional threats – countering piracy, smuggling, humans & arms trafficking, and maritime terrorism.

• Economic development - 90% of India’s trade by volume and 90% of oil imports are carried on the seas. - Poly-metallic nodules (PMN) found in Indian Ocean hold immense significance for rare earth

element deprived India and its electronics industry. - India’s extended continental shelf and EEZ hold vast reserves of oil & gas, for eg. Around KG Basin,

Bombay high etc. - Fisheries and aquaculture industries are also a major source of livelihood and exports.

• China increasing Geo Strategic footprints – Rising concern around China’s ‘strategic encirclement’ of India through Belt & Road initiative; China-Pakistan Economic Corridor (CPEC) in Pakistan; China’s ‘far seas’ strategy; establishment of dual-use naval infrastructure in Gwadar, Djibouti, Sri Lanka, Myanmar, etc; sightings of Chinese submarines in Indian ocean; dispatch of Chinese troops to its base in Djibouti; tightening Chinese strategic embrace over disgruntled Indian neighbours like Nepal, Maldives (FTA & Island Leasing) etc.

• Projection of Soft power - The Ocean has long been a key determining factor of India’s cultural footprint, with people, religion, goods, and customs spreading from India to Africa, the Middle East, and Southeast Asia and vice-versa.

• Climate Change – Climate change has direct impact on intensifying vulnerabilities of already poor Indian Ocean states, including India, especially with respect to food security, livelihood security, ability to respond to disasters etc.

India’s initiatives to secure its strategic and economic interest • SAGAR – India’s overarching vision for the Indian Ocean Region is SAGAR – “Security and Growth for All

in the Region”. • Project Mausam, Cotton Route projects, Look West & Act East Policies - for countering India’s

encirclement by China’s through its Cheque-Book diplomacy (OBOR, Maritime Silk Route (MSR), Port & infrastructure development in IOR).

• Vaccine diplomacy - as the ‘net security provider’ of the region, under Vaccine Maitri initiative, India began providing COVID-19 vaccines to South Asian Neighbours (Bhutan, Nepal, Bangladesh, Myanmar, etc), IOR Partners (Mauritius, Seychelles), Africa, Latin America, etc.

• Blue Economy – India is engaging its neighbours in Blue Economy initiatives like marine bio-technology, exploration and sustainable exploitation of ocean mineral resources, sustainable fishing practices, harnessing of ocean energy, sea ports development, employment & skill development etc.

• ‘Oceans as highways’ - connectivity is one of the major themes of India’s ‘Neighbourhood First’ policy. India is working on projects to improve maritime logistics in Sri Lanka, Maldives, Mauritius and Seychelles. Other projects include Kaladan transport project leading to Sittwe port in Myanmar; the Trilateral Highway to Thailand; and, the Chabahar port project in Iran.

• ‘Shared growth’ in the region – India is offering its regional satellite navigation system NavIC to its neighbours, sharing capacity enhancement in digital space, linking centres of higher education and


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research across the SAARC countries and meeting growing demands for quality healthcare from surrounding regions.

• Security - Modernization & expansion of Navy – 12 to 15 destroyers, frigates, corvettes and large patrol

vessels on long-range deployments in the IOR at any given time, which are backed by naval satellite Rukmini (GSAT-7). Nuclear submarine, INS Arihant, completed India’s ambition of a Nuclear Triad.

- Naval/Military bases – Duqm Port in Oman, Agalega in Mauritius, listening post in Madagascar, recent agreement with Seychelles approving Naval base and air strip in assumption islands etc.

- Anti-piracy patrols - in the Gulf of Aden and off the Horn of Africa; and joint EEZ patrols off the waters of Maldives, Seychelles, and Mauritius.

- Safe evacuation - Indian ships were involved in the safe evacuation of over 2,000 Indian expatriates and over 1,300 foreign nationals from Yemen in April 2015, rescue missions in Libya, Lebanon, Somalia etc.

- “First responder” - to calls of assistance, providing relief supplies and medical assistance in case of cyclones, floods, water crises for eg. In Bangladesh, Sri Lanka, Maldives

- Coastal surveillance radar system – developed by India and joined by Maldives, Seychelles, Mauritius, and Sri Lanka for gathering intelligence.

- Information Fusion Centre – Indian Ocean Region (IFC-IOR) – A 24/7 regional information-sharing centre to ensure Maritime security.

• International Collaboration – including revival of Indo pacific QUAD and Indian Ocean Rim association; using platforms like SAARC, BIMSTEC, Mekong Ganga, ASEAN, FIPIC, etc.

• Ocean diplomacy – - "Naval Diplomacy Fund" to strengthen the bond between Indian & friendly navies. - Indian Naval ships on ‘goodwill visits’ to neighbouring countries. - Joint naval exercises (MILAN, Indian Ocean Naval Symposium (IONS), Malabar), training of foreign

military personnels etc. - Gifting helicopters, ships, radars etc. to Mauritius, Maldives, Seychelles and others.

Way forward – To be Discussed in the Class.

1.4 GRASPING KEY TERMS

A) SAGAR (Security and Growth For All In The Region) • It is a High level articulation of India’s Vision for Indian Ocean. • SAGAR’ is in consonance with India’s ‘Act East’ policy and the nation’s diplomatic, economic and military

outreach in the region. • SAGAR has distinct but interrelated elements that determine the engagement India wants in Indian Ocean:

(a) Enhancing Capacities to safeguard Land and Maritime territories & interests. (b) Deepening Economic and Security cooperation in Littorals (c) Promoting collective action to deal with natural disasters and maritime threats like piracy, terrorism

and emergent non-state actors (d) Working towards sustainable regional development through enhanced collaboration (e) Engaging with countries beyond our shores with the aim of building greater trust and promoting

respect for maritime rules, norms and peaceful resolution of disputes


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B) INDIAN OCEAN DIALOGUE (IOD) The News • 7th Indian Ocean Dialogue (IOD)

was recently held (virtually) by United Arab Emirates, in February 2021.

About Indian Ocean Dialogue (IOD) • IOD is a flagship initiative of the

IORA. • It is a Track 1.5 Dialogue that

brings together key stakeholders from governments and think tanks from all Member States and Dialogue Partners of IORA.

• 2021 Theme - ‘Fostering a New Era of Cooperation in the Indian Ocean’

• IOD originated in the 13th Council of Ministers meeting, in Perth, Australia (held in 2013).

• 1st IOD – Kerala, India (2014). • 6th IOD was organized in New

Delhi (Dec, 2019) with the assistance of the Indian Council for World Affairs (ICWA).

C) INDIAN OCEAN NAVAL SYMPOSIUM (IONS) • The IONS is a regional forum of Indian Ocean littoral states, launched by India in February 2008. • It is a voluntary initiative that seeks to increase maritime co-operation among navies of the littoral states

of the Indian Ocean Region (IOR). • Aim - To generate a flow of information between navies that would lead to common understanding and

possibly cooperative solutions on the future maritime problems and challenges • Under the IONS charter of business adopted in 2014, the forum has working groups on Humanitarian

Assistance and Disaster Relief (HADR), Information Security and Interoperability (IS&I) and Maritime security (anti-piracy).

• 24 Member States –geographically divided into 4 subregions: - South Asian Littorals: Bangladesh, India, Maldives, Pakistan, Seychelles, Sri Lanka, and the U.K. - West Asian Littorals: Iran, Oman, Saudi Arabia, and UAE - East African Littorals: France, Kenya, Mauritius, Mozambique, South Africa, and Tanzania - Southeast Asian and Australian Littorals: Australia, Indonesia, Malaysia, Myanmar, Singapore,

Thailand, and Timor Leste. • 8 Observer countries - China, Germany, Italy, Japan, Madagascar, the Netherlands, Russia, and Spain • Chairmanship - rotates every 2 years. Current Chairpersonship – France. • In 2018, IONS conducted its first ever operational exercise called ‘IMMSAREX’, under the IONS Charter.

TRACKS OF DIPLOMACY

Track 1: Official discussions typically involving high-level political and military leaders and focusing on cease-fires, peace talks, and treaties and other agreements. Track 2: Unofficial dialogue and problem-solving activities aimed at building relationships and encouraging new thinking that can inform the official process. Participants are NGOs, Civil society etc Track 1.5: denote a situation in which both official and non-official actors work together to resolve conflicts. Track 3: People-to-people diplomacy undertaken by individuals and private groups. Multi track: operating on several tracks simultaneously, including official and unofficial. INDIAN COUNCIL FOR WORLD AFFAIRS (ICWA) • Established in 1943 by a group of Indian intellectuals as a think tank. • An Act of Parliament in 2001, declared ICWA as an institution of

national importance. • The Vice President of India is the ex-officio President of ICWA. • ICWA is funded by the Ministry of External Affairs and enjoys full

autonomy.


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D) INFORMATION FUSION CENTRE – INDIAN OCEAN REGION (IFC-IOR) • It is a 24/7 regional information-sharing centre, launched by the Hon’ble Raksha Mantri in 2018, for

furthering maritime security and safety in the region. • Significance - The setting up of IFC-IOR underscores the governmental approach and effort in line with the

vision of Hon’ble Prime Minister towards Security and Growth of All in the Region (SAGAR). • IFC-IOR Vision - Strengthening maritime security in the region and beyond, by building a common coherent

maritime situation picture and acting as a maritime information hub for the region. • Established at – Gurugram, Haryana, co-located with

Information Management and Analysis Centre (IMAC) which is jointly administered by the Indian Navy and Indian Coast Guard.

• Through IFC-IOR, information on “white shipping”, or commercial shipping, will be exchanged with countries in the region to improve maritime domain awareness in the Indian Ocean.

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Information Management and Analysis Centre (IMAC), set up in the aftermath of 26/11 Mumbai attacks, is the single point centre interlinking all the coastal radar chains to generate a seamless real-time picture of the nearly 7,500-km long coastline. IMAC also gives information to IFC-IOR.

Prelims Primer Jul-Aug 2020 Part 1 theIAShub F

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