Editorials & Articles : 23 May 2024
Ireland, Spain, Norway to formally recognise Palestine
- Ireland, Spain, Norway to Recognize Palestine
- Norway, Ireland, and Spain have announced their intention to formally recognize the state of Palestine on May 28.
- This recognition is expected to encourage other EU countries to do the same, potentially leading to increased action at the United Nations and further isolating Israel.
- Israel-Palestine Conflict: Synopsis
- Early Phase
- In the 19th century, Palestine had a multicultural population living in peace.
- In the late 1800s, Zionists aimed to create a Jewish homeland in Palestine.
- Increased Jewish immigration to Palestine occurred during Hitler’s rise to power, intensifying the conflict.
- UN Partition Plan (1947)
- The UN recommended allocating 55% of Palestine to a Jewish state.
- Fighting erupted soon after the UN resolution in November 1947.
- 1947-1949 War
- On May 14, 1948, Israel declared independence, sparking the 1948 Arab-Israeli War.
- By the end of the war, Israel controlled 78% of Palestine.
- Oslo Peace Process (1993)
- A breakthrough agreement for a two-state solution was negotiated between Israeli and Palestinian leaders.
- Early Phase
- Issue of Statehood for Palestine
- The 1948 UN decision intended a neighboring Palestinian state.
- Control of Palestinian territories remains divided, and bids for UN membership have been denied.
- The Palestinian Authority has observer status at the UN.
- Current Status
- 144 out of 193 UN member-states recognize Palestine as a state.
- Few EU members have recognized Palestine; recently, Britain, Australia, and Malta have indicated they might follow suit.
- Increasing Support for Palestine
- In May 2024, 143 out of 193 countries in the UN General Assembly voted for full UN membership for Palestine.
- The ICC prosecutor has sought arrest warrants for Israeli PM Benjamin Netanyahu and Defense Minister Yoav Gallant.
- Stand of Western Countries
- The US, Britain, and other Western countries support an independent Palestinian state alongside Israel through a negotiated settlement.
- No substantive negotiations have occurred since 2009.
- Palestinian Statehood and India’s Stand
- India recognized the PLO in 1974 and the Palestinian State in 1988.
- India advocates for direct negotiations towards a sovereign, independent Palestinian state coexisting with Israel.
- Significance of Recognition by Ireland, Spain, Norway
- Symbolizes a boost for the Palestinians’ global image and increases pressure on Israel to start peace talks.
- Marks a significant accomplishment for Palestinians, conferring international legitimacy on their struggle.
- Israel’s Response
- Israel has recalled its ambassadors to Ireland, Norway, and Spain.
- The Israeli government views Palestinian independence talk as rewarding Hamas for the October 7 attack and rejects moves to legitimize the Palestinians internationally.
BIMSTEC charter comes into force
- Why in News?
- The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) can now accept new members and observers.
- This development follows the enforcement of the first charter of BIMSTEC on May 20.
- About BIMSTEC
- Formation
- An economic bloc established in June 1997 through the Bangkok Declaration.
- Initially formed with Bangladesh, India, Sri Lanka, and Thailand on June 6, 1997.
- Nepal became an observer in 1998 and a full member along with Bhutan in February 2004.
- Current members: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan.
- Permanent Secretariat is in Dhaka, Bangladesh.
- Aim
- To counter the effects of globalization by accelerating regional growth through mutual cooperation using regional resources and geographical advantages.
- Areas of Cooperation
- Initially included six sectors: Trade, Technology, Energy, Transport, Tourism, and Fisheries.
- Expanded to 14 priority areas, with climate change added as the 14th priority in 2008.
- Member countries lead in different priority areas: India leads in Transport & Communication, Tourism, Environment & Disaster Management, Counter-Terrorism & Transnational Crime.
- Importance
- Represents 22% of the world’s population with a combined GDP of nearly $2.7 trillion.
- The region has seen sustained growth rates between 3.4% and 7.5% from 2012 to 2016.
- A significant trade route, with a fourth of the world’s traded goods crossing the Bay of Bengal annually.
- Growth as a Regional Forum
- Gained prominence after India’s renewed push in October 2016 following the Uri terrorist attack.
- India hosted an outreach summit with BIMSTEC leaders alongside the BRICS summit in Goa.
- Significance for Member Countries
- Bangladesh: Platform to enhance its regional status.
- Sri Lanka: Connect with Southeast Asia and the Indo-Pacific region.
- Nepal and Bhutan: Access to the Bay of Bengal region to mitigate their landlocked status.
- Myanmar and Thailand: Deepen connections with India to access a rising consumer market and balance China’s influence.
- India: Fulfill foreign policy priorities of Neighbourhood First and Act East.
- Challenges
- Growing discord between Bangladesh and Myanmar due to the Rohingya refugee crisis.
- Refugees from Myanmar also affecting Thailand post the February 2021 coup.
- BIMSTEC as a new battleground for India-China dominance, with China financing infrastructure in almost all BIMSTEC countries except Bhutan and India through the Belt and Road Initiative.
- Formation
- BIMSTEC Charter Comes into Force
- Background
- Leaders of BIMSTEC met virtually on March 30, 2022, under Sri Lanka’s chairship and adopted the charter during its 5th Summit.
- Thailand took over as the chair after the summit.
- In April 2024, Nepal’s parliament ratified the BIMSTEC charter, paving the way for its enforcement.
- Charter Enforcement
- The charter came into force on May 20, 2024, granting BIMSTEC a ‘legal personality’.
- This allows BIMSTEC to engage in structured diplomatic dialogue with other groupings and countries.
- Provides a legal and institutional framework for meaningful cooperation and deeper integration in the Bay of Bengal region.
- Background
Economic Capital Framework (ECF)
- Why in News?
- The Central Board of the Reserve Bank of India (RBI) approved a highest-ever surplus transfer of Rs 2.11 lakh crore to the Central government for the accounting year 2023-24.
- The surplus was determined based on the Economic Capital Framework (ECF).
- What’s in Today’s Article?
- Explanation of the Economic Capital Framework (ECF)
- Details of the Surplus Distribution Policy under the Revised ECF
- Information on the Surplus Transfer by the RBI to the Central Government
- Factors Leading to the Higher Dividend Transfers to the Government
- What is the Economic Capital Framework (ECF)?
- Meaning:
- The ECF provides a methodology for determining the appropriate level of risk provisions and profit distribution under Section 47 of the RBI Act 1934.
- The RBI must pay the balance of its profits to the central government after provisioning for bad debts, asset depreciation, and staff contributions.
- Old ECF:
- Developed in 2014-15 and operationalized in 2015-16.
- An Expert Committee chaired by Dr. Bimal Jalan reviewed the framework in 2018 to propose a suitable surplus distribution policy.
- Revised ECF:
- Adopted on August 26, 2019, based on the recommendations of the Bimal Jalan Committee.
- The framework may be reviewed every five years.
- Meaning:
- What is the Surplus Distribution Policy of the Revised ECF?
- Previous Policy:
- Targeted only the total economic capital, which includes capital, reserves, risk provisions, and revaluation balances.
- Expert Committee Recommendations:
- Include realised equity in the target, comprising the RBI’s capital, reserve fund, and risk provisions.
- Maintain total economic capital between 20.8% to 25.4% of the RBI’s balance sheet.
- Maintain risk provisioning under the Contingent Risk Buffer (CRB) within 5.5-6.5% of the RBI’s balance sheet.
- Risk Provisioning:
- Made to cover monetary, fiscal stability, credit, and operation risks.
- If realised equity is above required levels, the entire net income of RBI will be transferred to the government.
- If lower, risk provisioning will be made, and only the residual net income will be transferred.
- Previous Policy:
- Surplus Transfer by the RBI to the Central Government:
- Approved transfer of Rs 2,10,874 crore as surplus for 2023-24.
- More than double the Rs 87,416 crore transferred in FY23.
- CRB increased to 6.50% for 2023-24 from 6% the previous year.
- The transfer will aid in reducing the fiscal deficit target for FY25 to 5.1% of GDP from 5.8% in FY24.
- The large dividend payout is expected to help ease the fiscal deficit by around 0.2% of GDP.
- What Led to the Higher Dividend Transfers to the Government?
- Increase in revenue from variable repo rate (VRR) auctions conducted by the RBI for bank funding support amid tight liquidity conditions.
- Revaluation gains on forex reserves and higher interest rates on domestic and foreign securities.
- Significantly higher gross sales of foreign exchange.
- Earnings from investments, valuation changes on dollar holdings, and currency printing fees.
- The rupee’s depreciation against the dollar also contributed to the surplus transfer.
Concerns Regarding ECI’s Voter Turnout Data
- Why in News?
- The Supreme Court of India (SC) is set to hear a petition filed by the NGO Association for Democratic Reforms (ADR) questioning the authenticity of the Election Commission of India’s (ECI) voter turnout data.
- Petitions Alleging Discrepancies in the Voter Turnout Data:
- ADR flagged a significant difference (over 5%) between the initial turnout figures released by the ECI immediately after polling and the final voter percentages published later.
- The Opposition has raised concerns over these discrepancies and potential manipulation during the counting stage.
- An independent candidate from Rampur LS constituency alleged that the concerned RO did not provide copies of the Form 17C record of votes polled.
- What is Form 17C and its Significance?
- Conduct of Election Rules 1961:
- The ECI must maintain Forms 17A and 17C, containing data on the number of electors and votes polled.
- Form 17A records details of each voter who casts a vote.
- Form 17C accounts for all recorded votes.
- Form 17C Details:
- Part I includes:
- EVM identification numbers.
- Total number of electors assigned to the polling station.
- Total voters as recorded in Form 17A.
- Number of voters who did not vote after signing the register.
- Number of voters not allowed to vote.
- Total test votes and votes recorded per EVM.
- Part II contains the counting results on the stipulated day.
- Part I includes:
- Verification and Discrepancies:
- Candidates use Form 17C to verify results by matching it with the EVM count.
- Anomalies can lead to election petitions filed with the relevant High Court.
- Conduct of Election Rules 1961:
- What the ADR Petition is Seeking from the SC?
- Direction for the ECI to upload polling station-wise voter turnout data on its website within 48 hours after polling concludes for each Lok Sabha election phase.
- ADR claims polling agents are often unavailable to obtain Form 17C data, necessitating online publication for transparency.
- What is the ECI’s Response to the Claims of Disparities in the Voter Turnout Data?
- SC queried why the ECI could not upload voter turnout details.
- ECI responded there is no legal mandate to provide Form 17C to anyone other than the candidate or their agent.
- ECI’s voter turnout disclosure via app, website, and press releases is a voluntary, non-statutory initiative for national-level transparency.
- The ECI highlighted that figures on the “non-statutory Voter Turnout App” are provisional and secondary data.
- ECI accused the petitions of being part of a campaign to cast doubt on the ECI with misleading allegations.
- What do Experts Say on the Claims of Disparities in the Voter Turnout Data?
- Typically, the ECI discloses absolute voter turnout numbers, but this time only percentages were disclosed.
- Voter turnouts are usually released within 24 hours of polling conclusion; however, this time, the increase in final turnout figures is unusually high.
- For enhanced transparency, experts suggest the ECI should upload scanned copies of Form 17C as soon as they are submitted by Presiding Officers.
- Smaller political parties often cannot afford polling agents at all booths or constituencies due to financial constraints, making online transparency crucial.