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DAILY CURRENT AFFAIRS, 06 MARCH 2025

KUKI-ZOMI TRIBE

 
 
 
1. Context
 
 
The proposed “march to the hill districts” by an Imphal Valley-based civil society organisation on March 8 has been opposed by Kuki-Zo groups.
 
 
2. About Kuki and Zomi tribes
 

The Kuki-Zomi people are a diverse group of ethnicities inhabiting the mountainous regions of Northeast India, Myanmar, and Bangladesh. They share a common ancestry and cultural heritage, and their name reflects this shared identity: "Kuki" is a more general term encompassing various sub-tribes, while "Zomi" is a relatively recent term adopted by some Kuki communities to emphasize their distinct identity and cultural heritage.

  •  The exact origins of the Kuki-Zomi people remain unclear, but linguistic evidence suggests they migrated from Southeast Asia centuries ago. Today, they are found primarily in the Indian states of Manipur, Mizoram, Assam, Nagaland, and Tripura, as well as in Chin State, Myanmar, and the Chittagong Hill Tracts of Bangladesh.
  •  The Kuki-Zomi people comprise numerous sub-tribes, each with its own distinct dialect and cultural practices. Some of the major sub-tribes include the Hmar, Thadou, Paite, Gangte, Vaiphei, Zou, Aimol, and Anal. These sub-tribes speak various Kuki-Chin languages, which belong to the Tibeto-Burman language family.
  • The Kuki-Zomi people have a rich and vibrant culture characterized by strong communal bonds, traditional music and dance, and colorful handicrafts. Their traditional attire is often adorned with intricate beadwork and embroidery, reflecting their artistic skills and cultural pride.
  •  The Kuki-Zomi people have faced various challenges throughout their history, including displacement, conflict, and marginalization. However, they have demonstrated remarkable resilience and adaptability, preserving their unique culture and traditions despite these hardships.
  • In recent years, the Kuki-Zomi people have made significant strides in education, entrepreneurship, and political representation. They are increasingly active in advocating for their rights and cultural identity, and their contributions to the social and economic development of the regions they inhabit are becoming increasingly recognized.
 

3. Delisting Proposal in Manipur

  • The representation calling for the potential removal of specific Kuki and Zomi tribes from the Scheduled Tribes (ST) list in Manipur stems from the ongoing ethnic conflict that has persisted for eight months.
  • This conflict, initiated on May 3, 2023, arose following an order from the Manipur High Court directing the State government to recommend the inclusion of Meiteis in the ST list to the Centre.
  • As the Centre now requests the State government to examine the representation for the delisting of Kuki and Zomi tribes, there is a risk of exacerbating existing tensions between the valley-based Meitei people and the hills-based Kuki-Zo (ST) people in the State.
  • One significant factor driving the Meiteis' demand for ST status is their inability to own land in the forested hill districts, where only STs are permitted to own land.
  • Notably, this marks the first instance where members of the Meitei community are advocating for their inclusion in the ST list by contending that specific Kuki and Zomi tribes should not be part of it.
  • This development may also have broader implications for the criteria used to designate groups as Scheduled Tribes, a framework that has remained unchanged since its introduction by the Lokur Commission in 1965.

Key Arguments in the Kuki-Zomi Delisting Proposal

  • In Mr. Thounaojam’s representation, objections have been raised against the inclusion of three specific entries in the Scheduled Tribes (ST) list of Manipur namely, “Any Mizo(Lushai) Tribes,” “Zou,” and “Any Kuki Tribes.”
  • The primary argument put forth for the exclusion of these entries is that they are not considered "indigenous" to the land of Manipur.
  • According to the representation, there is no historical mention of these specific tribes residing in Manipur in pre-Independence Censuses.
  • Furthermore, the representation contends that the vagueness surrounding the terms "Any Mizo (Lushai) Tribes" and "Any Kuki Tribes" in the ST list has purportedly facilitated illegal immigrants from Myanmar and Bangladesh in wrongfully obtaining benefits intended for Scheduled Tribes in India.
 
4. About Lokur Commission

The Lokur Commission, officially known as the Advisory Committee on the Revision of Lists of Scheduled Castes and Scheduled Tribes, played a significant role in shaping the landscape of tribal communities in India. Established in 1965 by the Government of India. Chaired by Justice N.N. Lokur, a former Chief Justice of India. Tasked with revising the lists of Scheduled Castes (SCs) and Scheduled Tribes (STs) in a rational and scientific manner.

Criteria for Scheduled Tribes:

  • The Commission established five key criteria for identifying a community as an ST:
    • Primitive Traits and Distinctive Culture
    • Geographical Isolation
    • Shyness of Contact with the Community at Large
    • Backwardness
    • Pre-dominantly Tribal Population

Impact on Tribal Communities

  • The Lokur Commission's recommendations led to the addition of several new communities to the ST list, granting them access to educational and economic benefits reserved for STs.
  • However, the criteria employed, particularly the emphasis on "primitive traits," have been criticized for being outdated, stereotypical, and potentially hindering social progress for tribal communities.

Criticisms and Debates

  • The Commission's classification of certain communities as "primitive" has been challenged for being derogatory and inaccurate.
  • The criteria used have been accused of being subjective and open to misinterpretation, leading to inconsistencies and exclusion of deserving communities.
  • Debates continue regarding the need for revising or even abolishing the existing criteria altogether, with calls for a more nuanced approach based on social, economic, and cultural factors.

Legacy

  • Despite the criticisms, the Lokur Commission's work remains influential in the administration of tribal affairs in India.
  • Its report and recommendations form the basis for the current ST list and continue to be referenced in discussions about tribal inclusion and development.
  • The Commission's legacy highlights the importance of ongoing discussions about the definition of "tribal" identity and the need for criteria that are fair, inclusive, and responsive to the evolving realities of tribal communities in India.
 
 
5. The National Commission for Backward Classes
 

The National Commission for Backward Classes (NCBC) stands as a crucial advocate for the rights and welfare of Other Backward Classes (OBCs) in India. Established in 1993 and elevated to constitutional status in 2018, the NCBC plays a multi-faceted role in ensuring social justice and equality for OBC communities. 

Mandate and Responsibilities

  • The NCBC probes cases of discrimination and denial of rights due to OBC status. It monitors the implementation of various government policies and schemes aimed at OBC development.
  • The Commission regularly assesses the social, educational, and economic advancement of OBCs. It provides recommendations to the government on policies and programs to bridge existing gaps and address emerging challenges.
  • Individuals from OBC communities can approach the NCBC with complaints related to violations of their rights or benefits. The Commission takes necessary action to address these grievances and ensure justice.
  •  The NCBC conducts research on the diverse OBC communities, analyzing their specific needs and vulnerabilities. It promotes awareness about OBC issues and advocates for their inclusive participation in various spheres of Indian society.

Key Achievements

  • The NCBC played a significant role in implementing the Right to Education Act (2009) and ensuring reservation quotas for OBC students in educational institutions.
  •  The Commission has been instrumental in promoting entrepreneurship and skill development programs among OBC communities, leading to greater economic participation and self-reliance.
  •  The NCBC has consistently pushed for legislation and policy changes that benefit OBCs, such as reservations in government jobs and promotions, access to healthcare, and land rights.

Challenges and Future Directions

  • OBCs are a diverse group with varying needs and levels of marginalization. The NCBC faces the challenge of addressing these internal disparities and ensuring inclusivity within its advocacy efforts.
  • The Commission often operates with limited resources, hindering its ability to effectively reach out to remote OBC communities and conduct comprehensive research.
  • Ensuring proper implementation of the NCBC's recommendations on the ground remains a crucial challenge. Stronger collaboration with state governments and local authorities is essential.

6. Examining Claims of Non-Indigeneity and Misuse

 
  • The claim that these communities were not residing in the land of Manipur at the time the first Constitution (Scheduled Tribes) list was published in 1950 is not accurate.
  • The original order listed three tribes for Manipur  "Any Kuki Tribe," "Any Lushai Tribe," and "Any Naga Tribe," encompassing respective sub-tribes. The argument lacks validity, as there is historical evidence to show the presence of these tribes in Manipur at the time.
  • Regarding the assertion that the inclusion of these tribes in the ST list has facilitated organized illegal immigration into Manipur, there is currently no empirical evidence to support this claim beyond individual instances and rhetoric from the Meitei community.
  • However, the First Backward Classes Commission's 1955 report acknowledged that the broad classifications of tribes, including "Any Kuki Tribe," originated under British administration.
  • The Commission recommended adding individual tribe names for Assam and the hills of Manipur instead of umbrella tribes, suggesting a need for redrawing the lists due to outdated information.
  • In the 1956 revision of the ST list for Manipur, 29 entries included individual tribe names, except for "Any Mizo (Lushai) Tribe," which was retained.
  • The representation argues that neither "Zou" nor "Any Mizo (Lushai) Tribe" was specifically recommended by the First Backward Classes Commission.
  • In 1965, the Lokur Commission noted a "splintering tendency" among Kuki tribes, with sub-groups seeking distinct identities. Over the years, communities adopted independent tribe names, but the entry "Any Kuki Tribes" was added in 2002-2003 to address the identity of those who identified as Kukis.
  • The Bhuria Commission Report of 2002-2004 observed confusion arising from this addition and recommended mentioning tribe names in the ST list to address inter-tribe differences.
 
7. The Way Forward
 
The Kuki-Zomi delisting proposal in Manipur raises intricate questions about tribal identity, historical claims, and potential consequences for inter-community relations. Examining the arguments, historical context, and the role of institutions like the NCBC is essential for understanding the complexities of this issue and finding solutions that respect the rights and identities of all involved communities.
 
 
For Prelims: kuki-zomi tribes, manipur, National Commission for Backward classes, STs, Lokur Commission, Other Backward Classes
For Mains: 
1. Discuss the potential political and developmental implications of the proposed delisting. How might it affect land rights, access to resources, and inter-community relations in Manipur? (250 Words)
2. Assess the role of the National Commission for Backward Classes (NCBC) in addressing the complexities of tribal identity and ensuring social justice for marginalized communities. How can the NCBC be strengthened to better address issues like the Kuki-Zomi delisting proposal? (250 Words)
 
Previous Year Questions
 
1. Who was appointed as the head of the OBC Sub-categorisation Commission?
(Maharashtra Talathi 2019) 
A. Justice Geeta Mittal
B. Justice Manjula Chellur
C. Justice Tahilramani
D. Justice G. Rohini
 
 
2. Which of the following pairs of list and contents is/are correctly matched? (UPSC CAPF 2019) 
1. State list                     Public health and sanitation
2. Union list                  Citizenship, naturalisation and aliens
3. Concurrent list          Legal, medical and other
Select the correct answer using the code given below:
A. 1 only             B. 1, 2 and 3          C.  2 and 3 only            D.  3 only
 
Answers:1-D, 2- B
 
Source: The Hindu
 
 

LEADER OF OPPOSITION (LoP)

 
 
1. Context
Kerala’s Leader of the Opposition (LoP) in the Assembly V.D. Satheesan on Wednesday countered Chief Minister Pinarayi Vijayan’s claim that the Congress’s “disdain” for tactical alliances with secular and regional forces and its “go-it-alone approach” in national and local elections had given a leg-up to the “Sangh Parivar-led” BJP in the 2024 Lok Sabha election and the Assembly polls in Delhi and Haryana
 
2. Who is Leader of Opposition?
  • The Leader of the Opposition is the head of the largest party not in government in a parliamentary system. This person provides an alternative government and critiques government policies.
  • They play a crucial role in maintaining checks and balances by leading the opposition's efforts to hold the government accountable.
  • The position is recognized officially and often comes with certain privileges and responsibilities, such as attending important state functions and being involved in key parliamentary committees
  • The Leader of the Opposition role was defined by the 1977 Act on Salary and Allowances. This person leads the largest opposition party in either the Lok Sabha or Rajya Sabha, recognized by the respective House's chair.
  • They sit in the front row left of the Chair and partake in ceremonial duties, such as escorting the Speaker-elect.
  • They represent the opposition in key government appointment committees and hold a rank equivalent to Union Cabinet Ministers and other high-ranking officials. Their main function is to voice the opposition's stance in the House
 
3. What are the roles and responsibilities of the leader of the opposition?
 
  • The Leader of the Opposition occupies a front-row seat to the left of the Chair and holds certain ceremonial privileges, such as escorting the Speaker-elect and sitting in the front row during the President's address to Parliament.
  • Their primary role is to articulate the opposition's views in the House. A 2012 parliamentary booklet describes the Leader of the Opposition in the Lok Sabha as akin to a "shadow Prime Minister," with a "shadow Cabinet" prepared to govern if necessary.
  • This role is vital for the smooth functioning of parliamentary business, balancing governance and opposition
  • The Leader of the Opposition serves as the opposition's representative on key committees led by the Prime Minister, involved in appointments for positions like the Director of CBI, Central Vigilance Commissioner, Chief Information Commissioner, and members of the National Human Rights Commission and Lokpal.
  • From 2014 to 2019, as the Congress leader in the Lok Sabha, Kharge accused the government of attempting to exclude the opposition from the Lokpal selection process by arguing the absence of a designated Leader of the Opposition.
  • In order of precedence, the Leaders of Opposition in Lok Sabha and Rajya Sabha come at No. 7, along with Union Cabinet Ministers, the National Security Advisor, the Principal Secretary to the PM, the Vice-Chairperson of the NITI Aayog, former PMs, and Chief Ministers
4.What is the significance of strong opposition to strengthening parliamentary democracy?
 
A strong opposition is crucial for strengthening parliamentary democracy as it ensures accountability, transparency, and effective governance. It challenges the government's policies, providing alternative viewpoints and solutions, which fosters robust debate and prevents the concentration of power. An active opposition scrutinizes legislative proposals, ensuring thorough review and improvement of laws. It also represents diverse interests and voices, contributing to more inclusive and representative decision-making. Ultimately, a strong opposition maintains the balance of power, enhancing the overall health and functioning of democracy
 
 
 
For Prelims: Indian polity
For Mains: GS-II: Constitution and Polity
 
Source: Indianexpress
 

UKRAINE WAR AND WORLD ORDER

 
 
 
1. Context
 
The Ukraine conflict has witnessed dramatic developments in recent weeks. U.S. President Donald Trump has brought in a 180-degree shift in U.S’s policy towards the war. Disagreements between Kyiv and Washington on how to end the war have led to an unprecedented public spat between Ukraine’s President Volodymyr Zelenskyy and Mr. Trump in the Oval Office, following which the U.S. paused all military aid for the war-torn European nation. Within a day, Mr. Zelenskyy ‘regretted’ the spat, announced Kyiv’s readiness to declare a partial truce and work with Mr. Trump to achieve lasting peace
 
2. Where does the war stand now?
 
  • After eight months of Ukraine's counteroffensive, it is now apparent that the operation was unsuccessful.
  • This acknowledgment comes from Gen. Valerii Zaluzhnyi, the former commander of Ukrainian forces, who was dismissed by President Volodymyr Zelenskyy this month. Gen. Zaluzhnyi had advocated for a mass mobilization, indicating a critical shortage of frontline fighters for Ukraine.
  • The country lost a considerable number of weapons supplied by the West during the counteroffensive and is awaiting fresh supplies. However, assistance from the U.S. is currently stalled in Congress due to opposition from Republicans.
  • Meanwhile, the Russians are actively pursuing an offensive strategy. In December, Russia claimed its first victory since the fall of Bakhmut by capturing Maryinka in Donetsk. Recently, Ukraine was compelled to abandon Avdiivka, a strategically important town in Donetsk, after enduring months of intense fighting and significant losses.
  • Russian forces are now pushing westward in Donetsk, exerting pressure on Ukrainian forces in Krynky and Kherson in the south

3.What is the West’s strategy?

  • The Western strategy toward Ukraine encompassed a dual-sided strategy. Firstly, there was an effort to support Kyiv economically and militarily to sustain its resistance against Russia. Simultaneously, the second facet aimed to undermine Russia's economy and military capabilities through the implementation of sanctions.
  • However, with the setback in Ukraine's counteroffensive and a shifting political landscape in Washington, where the potential for a second Trump presidency looms, the viability of the first aspect of this policy is now uncertain, if not precarious.
  • On the other hand, the second element involving sanctions has inflicted significant damage on Russia.
  • According to Western officials, these sanctions are believed to have cost Russia more than $430 billion in revenue that it would have otherwise accrued since the commencement of the conflict
4.How have the sanctions affected Russia?
 
  • Russia has devised various strategies to navigate around sanctions and sustain its economy. In response to reduced energy sales from Europe, Russia offered discounted crude oil to rapidly growing economies like China, India, and Brazil.
  • To maintain oil shipments to these new markets independently of Western shipping companies and insurers, Russia assembled a concealed fleet of ships.
  • Additionally, it established shell companies and private corporations in neighboring regions, such as Armenia or Turkey, to facilitate the import of dual-use technologies, which were subsequently re-exported to Russia for use in defense production.
  • China, as the world's second-largest economy, escalated its financial and trade connections with Russia, even engaging in the export of dual-use technologies.
  • Russia diversified its currency usage, moving away from the dollar to primarily utilize the Chinese yuan in trade. It also increased domestic defense and public spending, with a notable nearly 70% rise in its defense budget.
  • Strengthening ties with countries like Iran and North Korea, both grappling with American sanctions, Russia imported various weapons, including drones, cruise missiles, and ammunition.
  • Despite the imposition of sanctions, two years into the conflict, both Russia's energy sector and military-industrial complex remain robust.
  • In January 2024, Russia generated $15.6 billion from oil exports alone, a notable increase from $11.8 billion in the previous summer, according to the International Energy Agency. The Russian Defence Ministry reported manufacturing 1,530 tanks and 2,518 armored vehicles in 2023
5.How is the war transforming Russia?
  • It doesn't imply that everything is progressing favorably for Mr. Putin and his associates. Since the commencement of the conflict, two neighboring countries, Sweden and Finland, have joined NATO, thereby extending the alliance's border with Russia.
  • Despite Mr. Putin's efforts to establish robust economic connections with Europe over the years, these ties are now in disarray.
  • Russia's influence in its immediate vicinity is diminishing, as evident in tensions with Armenia, leading to the latter's decision to suspend participation in the Moscow-led Collective Security Treaty Organization (CSTO).
  • Russia is also developing a reliance on China, although the Kremlin is cautious not to disturb its delicate relationship with New Delhi.
  • Internally, the Russian government is intensifying its control over society and suppressing any dissent regarding the war.
  • The Prigozhin rebellion last year revealed vulnerabilities in the state structure that Mr. Putin had constructed.
  • The recent death of Alexei Navalny, a prominent critic of President Putin in Russia, in a remote Arctic prison on February 16 2024 further supports criticisms of Russia's approach to handling dissent.
  • If post-Soviet Russia seemed to be a "managed democracy," post-war Russia is sliding toward a tightly controlled authoritarian state
6.Way Forward
 
The Western approach of bolstering Ukraine through assistance and undermining Russia via sanctions appears to have fallen short. The conflict has highlighted the constraints of Western influence in an evolving global landscape — for sanctions to be impactful, the trans-Atlantic alliance now requires backing from other major economies like China and India. While Russia has consistently found ways to navigate around sanctions, it has also incurred significant losses and will grapple with the enduring repercussions of these sanctions. Amidst this turmoil, if there is a major power relatively unaffected, it is China. As Beijing assesses the situation, it observes both the West and Russia entangled in Ukraine, compelling the latter to shift focus towards Asia and reshaping the global balance of power
 
 
Source: The Hindu
 

DELIMITATION OF STATES

 

1. Context

Home Minister Amit Shah assured southern states last week that they wouldn’t lose “even a single seat” after the fresh delimitation of constituencies. It was an attempt to address concerns, especially in Tamil Nadu and Kerala, about the potential loss of parliamentary representation if the exercise is based only on population data.

2. What is the Delimitation of States?

  • Delimitation refers to the process of redrawing the boundaries of parliamentary and assembly constituencies within each state of India.
  • It is undertaken periodically to ensure that the representation of constituencies is fair and equitable based on the principles of population distribution.
  • Under Article 82 of the Constitution, Parliament enacts a Delimitation Act after every Census which establishes a delimitation commission.
  • The delimitation of constituencies in India is governed by the Delimitation Commission, which is a high-level body appointed by the President of India.
  • The Delimitation Commission consists of a Chief Election Commissioner or Election Commissioner nominated by the President, as well as the respective State Election Commissioners, if any.
  • Delimitation commissions have been set up four times in the past under the ‘Delimitation Commission Acts’ of 1952, 1962, 1972, and 2002.

3. The primary objectives of delimitation in the Indian Constitution are as follows:

  • To ensure equal representation: Delimitation aims to provide equal representation to each voter by readjusting the boundaries of constituencies based on population changes. The population figures used for delimitation are usually derived from the latest census data.
  • To remove discrepancies: Delimitation helps in rectifying any discrepancies in the size and composition of constituencies, thereby ensuring a more balanced and democratic electoral process.
  • To account for reserved seats: Delimitation also takes into consideration the reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) as mandated by the Constitution. The commission determines the number and locations of reserved seats within each state.

4. Delimitation of Constituencies in India - A Crossroads in Electoral Democracy

  • In four years, India's electoral democracy faces a critical juncture as the delimitation of constituencies, based on the next decennial Census population figures, is scheduled for 2026.
  • With a significantly increased population, it is essential to ensure that the number of Members of Parliament (MPs) representing the Lok Sabha (currently 543) is adjusted accordingly.
  • A higher population per constituency diminishes the impact of each voter on parliamentary representation, which is an undesirable situation. The Indian Constitution recognizes this and provides for periodic Census-linked rearrangement of constituencies.
  • The principle is straightforward - more people should result in more MPs to maintain fair and tenable representation in Parliament.
  • However, in practice, a population-based delimitation of constituencies, as outlined in Article 82 of the Constitution, could give more MPs to states and union territories with population growth and fewer MPs to those that have controlled their population growth.
  • Realizing this potential anomaly, Prime Minister Indira Gandhi introduced a delimitation freeze through the 42nd Amendment of the Constitution in 1976. This freeze was later extended by Prime Minister Atal Bihari Vajpayee through the 84th Amendment.
  • The extension of the delimitation freeze is set to end in 2026, posing a crucial decision point for India's electoral democracy.
  • The upcoming delimitation exercise based on Census data aims to rectify the imbalances and ensure a more equitable distribution of MPs.
  • The delimitation process plays a vital role in upholding democratic principles and ensuring fair political representation for the growing population of India.

5. Issues with scheduled delimitation exercise in India

  • Political Implications: Delimitation has significant political implications as it can impact the distribution of power and representation among political parties. Changes in constituency boundaries can influence the electoral prospects of political candidates and parties, potentially leading to shifts in political dynamics.
  • Regional Disparities: Delimitation based on population figures may result in giving more Members of Parliament (MPs) to states and union territories that have experienced population growth while reducing the representation of those regions that have controlled their population growth. This could lead to imbalances and perceived unfairness in parliamentary representation.
  • Socio-political Factors: Delimitation exercises can be influenced by socio-political factors such as linguistic, cultural, or regional identities. These factors can sometimes lead to demands for the creation of new states or changes in constituency boundaries based on specific interests or aspirations, which can be contentious.
  • Data Accuracy and Manipulation: Accurate population data is crucial for a fair delimitation exercise. Challenges may arise if there are concerns about the accuracy of the population figures or if there are attempts to manipulate the data for political gain.
  • Implementation Challenges: The delimitation process itself can be complex and time-consuming. It requires extensive consultations, analysis, and decision-making to determine the new boundaries and ensure compliance with legal and constitutional requirements.

 6. The alternatives proposed for addressing the complexities of the delimitation process

  • One option is to implement another freeze, but this time, not for a specific period. The freeze would remain in effect until all states in India achieve population stabilization.
  • This would mean maintaining the current constituency boundaries until population growth becomes more balanced across all states.
  • The second alternative suggests seeking the expertise of demographic and statistical experts to develop a mathematical model similar to the "Cambridge Compromise" used for apportioning seats in the European Parliament.
  • This model would need to be customized to suit India's specific needs, taking into account the complexities of the Indian demographic situation.
For Prelims: Census, Article 82, Delimitation Commission, Chief Election Commissioner, Scheduled Castes (SCs), Scheduled Tribes (STs), Members of Parliament (MP), Lok sabha, and Rajya Sabha.
For Mains: 1. Analyze the major challenges and complexities associated with the delimitation of states in India. Discuss the potential political, social, and administrative implications of redrawing state boundaries. (250 words).
 
 
Previous year Questions
1. With reference to the Delimitation Commission, consider the following statements: (UPSC 2012)
1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.
2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot effect any modifications in the orders.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: C
 
2. According to the Delimitation Commission of India and subject to Article 333 of the Constitution of India, what is the maximum number of members that a State legislative Assembly may have? (UPSC CAPF 2020)
A. 450
B. 500
C. 550
D. 600
Answer: B
Source: The Hindu
 

TARIFFS

 
 
1. Context
 
Laying to rest speculation that US President Donald Trump’s tariff threat against Canada and Mexico was merely a negotiating tactic, Washington on Tuesday began imposing steep tariffs on nearly $1 trillion worth of goods coming from Mexico and Canada annually, despite having a long-standing trade agreement with the neighbouring countries

2. What is a Tariff?

  • Most countries are limited by their natural resources and ability to produce certain goods and services.
  • They trade with other countries to get what their population needs and demands. However, trade isn't always conducted in an amenable manner between trading partners.
  • Policies, geopolitics, competition, and many other factors can make trading partners unhappy. One of the ways governments deal with trading partners they disagree with is through tariffs.
  • A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.

3. Key Take Aways

  • Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
  • Tariffs often result in unwanted side effects, such as higher consumer prices.
  • Tariffs have a long and contentious history, and the debate over whether they represent good or bad policy still rages.

4. History of Tariffs

4.1 Pre Modern Europe

  • In pre-modern Europe, a nation's wealth was believed to consist of fixed, tangible assets,  such as gold, silver, land, and other physical resources.
  • Trade was seen as a Zero-sum game that resulted in either a clear net loss or a clear net gain of wealth.
  • If a country imported more than it exported, a resource, mainly gold, would flow abroad, thereby draining its wealth. Cross-border trade was viewed with suspicion, and countries preferred to acquire colonies with which they could establish exclusive trading relationships rather than trading with each other.
  • This system, known as mercantilism, relied heavily on tariffs and even outright bans on trade. The colonizing country, which saw itself as competing with other colonizers, would import raw materials from its colonies, which were generally barred from selling their raw materials elsewhere.
  • The colonizing country would convert the materials into manufactured wares, which it would sell back to the colonies. High tariffs and other barriers were implemented to ensure that colonies only purchased manufactured goods from their home countries. 

4.2 Late 19th and early 20th Centuries

  • Relatively free trade enjoyed a heyday in the late 19th and early 20th centuries when the idea took hold that international commerce had made large-scale wars between nations so expensive and counterproductive that they were obsolete.
  • World War I proved that idea wrong, and nationalist approaches to trade, including high tariffs, dominated until the end of World War II.
  • From that point on, free trade enjoyed a 50-year resurgence, culminating in the creation in 1995 of the World Trade Organisation  (WTO), which acts as an international forum for settling disputes and laying down ground rules.
  • Free trade agreements, such as the North American Free Trade Agreement (NAFTA) now known as the United States-Mexico-Canada Agreement (USMCA) and the European Union (EU), also proliferated.

4.3 In the 21st Century

  • Skepticism of this model sometimes labeled neoliberalism by critics who tie it to 19th-century liberal arguments in favor of free trade grew, however, and Britain in 2016 voted to leave the European Union.
  • That same year Donald Trump won the U.S. presidential election on a platform that included a call for tariffs on Chinese and Mexican imports, which he implemented when he took office.
  • Critics of tariff-free multilateral trade deals, who come from both ends of the political spectrum, argue that they erode national sovereignty and encourage a race to the bottom regarding wages, worker protections, and product quality and standards.
  • Meanwhile, the defenders of such deals counter that tariffs lead to trade wars, hurt consumers, and hamper innovation.

5. Understanding Tariffs

  • Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.
  • A key point to understand is that a tariff affects the exporting country because consumers in the country that imposed the tariff might shy away from imports due to the price increase. However, if the consumer still chooses the imported product, then the tariff has essentially raised the cost to the consumer in another country.

There are two types of tariffs:

  • A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car.
  • An ad-valorem tariff is levied based on the item's value, such as 5% of an import's value.

6. Why Government Imposes Tariffs?

Governments may impose tariffs for several reasons
6.1 Raise Revenues

Tariffs can be used to raise revenues for governments. This kind of tariff is called a revenue tariff and is not designed to restrict imports. For instance, in 2018 and 2019, President Donald Trump and his administration imposed tariffs on many items to rebalance the trade deficit. In the fiscal year 2019, customs duties received were $18 billion. In FY 2020, duties received were $21 billion.

6.2 Protect Domestic Industries

Governments can use tariffs to benefit particular industries, often doing so to protect companies and jobs. For example, in May 2022, President Joe Biden proposed a 25% ad valorem tariff on steel articles from all countries except Canada, Mexico, and the United Kingdom (the U.K. has a quota of an aggregate of 500,000 metric tons it can trade with the U.S.). This proclamation reopens the trade of specific items with the U.K. while taking measures to protect domestic U.S. steel manufacturing and production jobs.

6.3 Protect Domestic Consumers

By making foreign-produced goods more expensive, tariffs can make domestically-produced alternatives seem more attractive. Some products made in countries with fewer regulations can harm consumers, such as a product coated in lead-based paint. Tariffs can make these products so expensive that consumers won't buy them.

6.4 Protect National Interests

Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage. For example, when Russia invaded Ukraine, much of the world protested by boycotting Russian goods or imposing sanctions. In April 2022, President Joe Biden suspended normal trade with Russia. In June, he raised the tariff on Russian imports not prohibited by the April suspension to 35%.

7. Advantages of Tariffs

  • Produce revenues: As discussed, tariffs provide a government a chance to bring in more money. This can relieve some of the tax burdens felt by a county's citizens and help the government to reduce deficits.
  • Open negotiations: Tariffs can be used by countries to open negotiations for trade or other issues. Each side can use tariffs to help them create economic policies and talk with trade partners.
  • Support a nation's goals: One of the most popular uses for tariffs is to use them to ensure domestic products receive preference within a country to support businesses and the economy.
  • Make a market predictable: Tariffs can help stabilize a market and make prices predictable.

8. Disadvantages of Tariffs

  • Create issues between governments: Many nations use tariffs to punish or discourage actions they disapprove of. Unfortunately, doing this can create tensions between two countries and lead to more problems.
  • Initiate trade wars: A typical response for a country with tariffs imposed on it is to respond similarly, creating a trade war in which neither country benefits from the other.

For Prelims: Tariffs, Zero-sum game, Cross-border trade, World Trade Organisation  (WTO), North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA), and the European Union (EU).

For Mains: 1. What is a Tariff and explain why government imposes tariffs. Discuss the advantages and disadvantages associated with Tariffs. (250 Words).

Source: Investopedia

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