Editorial Simplified : 20th April

//Editorial Simplified : 20th April

Editorial Simplified : 20th April

Editorial Simplified : 20th day of April 2016

This Series of posts covers the essential Editorial from prominent newspapers. The Editorial from the newspapers are compiled by the Subject Teachers form the Academy and provided in notes format so that the aspirants does not waste their precious time in sifting through the newspapers. 

The aspirants are advised to bookmark this page for future reference 

Click on the tab below to read the Editorial Simplified for each newspaper

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[accordion_content accordion_label=”Business Standard”]

Editorial : Universal wage error

Context

Recently an executive order by Labour Ministry proposes making it compulsory to pay contract workers at least Rs 10,000 a month. Labour Ministry has also asked all contractors to register with the labour ministry.

How will this be accomplished

By changing Central Rule 25 of the Contract Labour (Regulation and Abolition) Act, 1970.

Is it justified

  • Supreme Court mandated that inflation should lead to a revision of the minimum wage.
  • But it must take into account local costs and characteristics.
  • A universal wage threshold that is higher than the prevailing wage in many areas cannot be justified.

What could be its effect

  • It will lead to evasion by employers
  • It will cause a shrinkage of employment
  • It could lead to increased harassment of employers

What could be done

Cooperative federalism – Decision on minimum wages must be left to state governments considering specific local needs and conditions.


Editorial : Impeachment in Brazil

Context

Brazilian Parliament (Senate) has voted to impeach President Dilma Rousseff for fraud in government accounting.

What is the case

Accusation that Ms Rousseff used loans from public banks to the Treasury (Brazil’s Finance Ministry) to meet budget surplus targets.

Can you please give me example using Indian System

Indian prime minister ordering, say, the State Bank of India to transfer a part of its earnings to the government to fulfil fiscal deficit targets under the Fiscal Responsibility and Budget Management (FRBM) Act.

What did it lead to

  • It created an impression that the Brazilian economy was in better shape than it actually was.
  • It also provided the scope for her to make even more populist commitments that played a role in her re-election in 2014.

What is Ms Rousseff’s defence argument

She only did what previous regimes had done before her without being punished.

 How the issue came to light

Brazilian economy contracted as a result of the global commodity price crash. Bringing forth the bad practices.

What will happen now

  • Senate will take the next step and vote on whether to launch an impeachment trial.
  • It requires a resolution with a simple majority to pass.

Are there other allegations as well

  • Yes
  • Involving a massive case of fraud in state-owned petroleum major Petrobras.

Can we generalize the problem to a broader global level

  • Yes
  • The problem is of a key dilemma in which
    • The state exercises overweening powers over the country’s largest banks and corporations and
    • State is committed at the same time to vast social spending.
  • That is, a type of socialism, which leverages booms in commodity prices to finance welfare spending.

What is the way out of such a dilemma

  • Setting new standards of fiscal accountability.
  • Scrutinising “off balance-sheet” techniques, that exploit the cash accounting system which helps mask real expenditure.
  • Framing rules that can prevent governments from indulging in such practices.

Has anything been done in India about this

  • An officials committee has the task of recommending a range of fiscal deficit to the government.
  • Committee’s role could be expanded to prohibiting Centre from using questionable practices. That hide the real expenditure of the government.

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[accordion_content accordion_label=”Indian Express”]

Editorial : Unmade in China

Context :

At a speech in Moscow at a summit that includes Russia and China, Ms Sushma Swaraj (Foreign Minister of India) warned that fighting terrorism through joint action at the UN is imperative. “If we continue to adopt double standards in dealing with terrorism, it will have serious consequences not just for our own countries, but the international community as a whole,” she said. She has objected to Beijing blocking a United Nations ban on Masood Azhar, the chief of terror group Jaish-e-Mohammed, which is based in Pakistan.

Chinese Dialemma

  • China faces terrorism from the terrorists originated volatile western province of Xinjiang; same province also provides ISIS with new recruits
  • Chinese decision of not banning Masood Azhar, might have been to get in good books of Pakistan Intelligence, whose support China needs badly.

Not the right way

  • Banking on global anti terrorism regime for countering terrorists threat is wrong
  • Rather than criticizing global community for not doing much, India is better served by increasing counter terrorism capacities and forming strategic alliances with countries facing similar problems.

Editorial : Holds no water

Context :

Maharashtra Govt has banned setting up of new sugar mills in Marathwada for five years considering the water guzzling nature of sugarcane crop and drought in the region

Sugarcane : The Reason?

  • One sugarcane crop needs on average 2000 mm of water which is much more than average rainfall received by Marathwada
  • Any monsoon failure can exacerbate the situation

Banning | A perfect solution?

  • Sugar mills, apart from being employment provider, also produce their own clean electricity (Bagasse); it does not require water either
  • Sugarcane crop gives green fodder to farmer

Best Solution

  • To stop overdrawing of canal water and electricity for pumpsets by rationalizing the subsidy regime
  • If subsidies are rationalized farmers will always make best cropping decisions

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[accordion_content accordion_label=”The Hindu”]

Editorial : Of populism and prohibition

Context :

Recently there had been a trend of promising ban on alcohol for electoral gains. The editorial examines the situation.

Important Points :

  • Kerala and now Tamil Nadu both have vowed to make the states dry. 
  • In the past Haryana and Andhra Pradesh too adopted a prohibitory regime on alcohol but abandoned it later. While Gujarat is one state which continues to remain dry.
  • States by enforcing the ban are trying to enforce self discipline.
  • However, there are practical reasons against the ban. Banning the sale and consumption in the past has led to disastrous consequences like liquor mafia, spurious liquor etc.
  • Also the ban deprives the state of huge share of revenue it gets from from sale of alcohol. The tax collected is obviously used for public welfare programmes like noon meal scheme.
    Conclusion- The editor suggests that an alternative source of revenue should be found to make the ban on alcohol more successful in transforming the society.

Editorial : Deepening crisis in Brazil

Context :

Impeachment proceedings have been initiated against Brazilian President Dilma Rousseff, the editorial takes a look into the political turmoil.

Important points

  • The left wing party of Ms. Dilma Rousseff has had to face a crisis since last year.
  • The two major reasons cite are deepening economic crisis and corruption charges against Ms. Rousseff. 
  • Ms Rousseff tried to respond to economic crisis by slashing public spending but that further dented her repute by alienating her core support of working population. 
  • A global economic slow down and the president’s inability to deal with the crisis made her an easy target for the opposition. 
  • The opposition claims that removal of Ms. Rousseff is necessary as she is corrupt. But the President so far has not been convicted in any corruption case. It has been just alleged that she indulged in corrupt practices in 2014 campaign.
  • Ironically her rivals are facing grave corruption charges. 

Conclusion

  • The editor believes that Ms. Rousseff could have managed the economic crisis better by at least taking all allies along , however , it appears Machiavellian game plan of the opposition to remove the President on unproven charges.  
  • The editor comments if the President is finally removed , it will set up an unhealthy precedent for a country with a history of coups.

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By | 2016-04-20T21:22:58+00:00 April 20th, 2016|Categories: Editorial Simplified|Tags: , , |0 Comments

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