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CURRENT AFFAIRS ANALYST WEEK- 4 (OCTOBER, 2020) CONTENTS Section - A: MAINS CURRENT AFFAIRS Area of GS Topics in News Page No. Bangladesh’s economic rise & its implications on India 02 ECONOMY Is transparent taxation the panacea for tax terrorism? 04 Potholes on the digital payment superhighway 06 ETHICS Ethos of Justice and Its Adversaries 08 INTERNATIONAL India-US Defence Deals 10 RELATIONS Section - B: PRELIMS CURRENT AFFAIRS Area of GS Topics in News Page No. BIODIVERSITY Zoological Survey of India lists 62 species of skinks 14 Global Hunger Index 2020 15 ECONOMY IFSCA releases framework for regulatory sandbox 16 India’s fi rst seaplane service to begin 31 October 17 Aldabra’s coral reefs recovered faster from bleaching, 18 ENVIRONMENT fi nds new research Conservation of the world’s seagrasses 20 GEOGRAPHY Hyderabad rainiest place in India 22 China Passes Export Law To Protect National Security, 23 Technology INTERNATIONAL RELATIONS Israel and Bahrain establish formal diplomatic relations 25 Pakistan, China re-elected to UNHRC 25 ********** SECTION: A (MAINS) CURRENT AFFAIRS CURRENT AFFAIRS WEEK - 4 (OCTOBER, 2020) WEEKLY BANGLADESH’S ECONOMIC RISE & ITS IMPLICATIONS ON INDIA CONTEXT (C-DAC), Mohali at Guru AngadDev Veterinary University (GADVASU), Ludhiana. CONTEXT foreign aid, trade, interregional trade had severe adverse effects on Bangladesh. The International Monetary Fund’s latest World Economic Outlook has triggered much outrage in India. ANALYSIS The provocation was the IMF’s prediction that What made Bangladesh’s economy ‘grow’? Bangladesh’s per capita GDP will overtake that of India this year. Women empowerment: Bangladesh has made signifi cant strides towards educating girls and The projected difference is rather small — $1,888 giving women a greater voice, both in the to $1,877 — and unlikely to last beyond this year. household and the public sphere. But it offered enough ammunition for a political ! These efforts have translated into improvements attack on the government’s economic record. in children’s health and education, such that In this context, let’s analyse the strategic consequences Bangladeshis’ average life expectancy is now of Bangladesh’s economic rise. 72 years, compared to 68 for Indians and 66 for Pakistanis. BACKGROUND Support to grass-roots initiatives: The Bangladesh government has supported grass- To understand the emergence of Bangladesh as an roots initiatives in economic inclusion. economic power, one needs to look at the past. Digitisation: Among Bangladeshi adults with The decades long oppression, suppression, bank accounts, 34.1% made digital transactions in injustice and severe discrimination against East 2017, compared to an average rate of 27.8% for Pakistan by West Pakistan made the people of the South Asia. Moreover, only 10.4% of Bangladeshi East Pakistan poor and illiterate. bank accounts are “dormant”, compared to 48% of Indian bank accounts. For instance, in a typical year of between 1960 and 1970, per capita annual income was Bangladeshi Successful manufacturing industry: Another partial explanation for Bangladesh’s progress is Taka 450 (US$ 5.30, based on 2020 value), nearly the success of its garment manufacturing industry. half of the population had a defi ciency in calories That is itself driven by a number of factors. intake, and the literacy rate was 17 percent only. ! One notable point is that the main garment Between 1949-50 and 1969-70, the per capita fi rms in Bangladesh are large—especially income of Bangladesh could increase at an annual compared to those in India, owing largely to rate of hardly 0.7 per cent. different labour laws. In fact, during the fi fties, the per capita income of Other reasons include- Bangladesh declined at an annual rate of 0.3 per cent. Per capita consumption of milk, fats, oil, fi sh ! inward remittances and other protein items were extremely low in ! sustained growth in agriculture Bangladesh. ! growth in microfi nance In March 1972, P. C. Verma wrote in the Economic ! public investment in big infrastructure projects and Political Weekly that ‘During the last 24 years, while Bangladesh was a part of Pakistan, its economy stagnated. The economic policy Thus, having been born without the law, Bangladesh pursued by the central government of Pakistan offered a better environment for manufacturing kept it economically backward’. fi rms to achieve economies of scale and create a large number of jobs. And though Bangladesh still Development expenditure in Bangladesh was needs much stronger regulation to protect workers extremely low. from occupational hazards, the absence of a law that It is also argued that the policies taken by the explicitly curtails labour-market fl exibility has been a central government of Pakistan in the context of boon for job creation and manufacturing success. 2 www.iasscore.in CURRENT AFFAIRS WEEKLY WEEK - 4 (OCTOBER, 2020) Has this ever happened earlier? ! In 1991, when India was undergoing a severe Pakistan’s opposition to economic cooperation with India crisis and grew by just above 1%, Bangladesh’s per capita GDP surged ahead of India’s. ! Pakistan’s support for cross-border terror, the main regional forum for Since then, India again took the lead. the subcontinent, the South Asian Association for Regional Cooperation Is India expected to regain the lead again? (Saarc), is in a coma. The IMF’s projections show that India is likely to Instead of merely praying for the revival of grow faster next year and in all likelihood again Saarc, Delhi could usefully focus on promo ng surge ahead. regionalism among Bangladesh, Bhutan, India But, given Bangladesh’s lower population growth and Nepal (BBIN). and faster economic growth, India and Bangladesh The BBIN sub-regional forum, ac vated in the are likely to be neck and neck for the foreseeable middle of last decade — has not advanced fast future in terms of per capita income. enough. It is me for Delhi and Dhaka to take a fresh What are the regional implications of look at the forum and fi nd ways to widen the Bangladesh’s economic success? scope and pace of BBIN ac vity. Altering the world’s mental maps: Rapid and Meanwhile, there is growing interest in sustained economic growth in Bangladesh has Bhutan and Nepal for economic integra on begun to alter the world’s mental maps of the with Bangladesh. subcontinent. Over the last fi ve decades and more, South Asia, for most purposes, has meant India and Pakistan. New geo-politics of the Indo-Pacifi c: The ! The other countries were generally described economic success of Bangladesh is drawing as the “smaller” states of the region. attention from a range of countries in East Bangladesh was never really small; its Asia, including China, Japan, South Korea, and population today stands at about 160 million. Singapore. The US, which traditionally focused It is demographically the eighth-largest nation on India and Pakistan, has woken up to the in the world. possibilities in Bangladesh. The great power wooing of Dhaka is bound to intensify in the new ! The economic rise of Bangladesh is changing geopolitics of the Indo-Pacifi c. some of that. Bangladesh provides a positive narrative about the subcontinent’s prospects. A boost to India’s plans: The economic rise of Bangladesh could boost India’s national plans to Changing economic weights: This year, accelerate the development of its eastern and Bangladesh’s GDP is expected to reach about northeastern states. $320 billion. It’s growing economic muscle will ! help Dhaka steadily accumulate geopolitical Bangladesh’s economy is now one-and-a-half salience in the years ahead. times as large as that of West Bengal; better integration between the two would provide ! A decade ago, Pakistan’s economy was a huge boost for eastern India. So would $60 billion larger than Bangladesh. Today, connectivity between India’s landlocked Bangladesh’s weight is bigger than Pakistan Northeast and Bangladesh. by the same margin. Economic integration: Third, Bangladesh’s CONCLUDING THOUGHTS economic growth can accelerate regional integration in the eastern subcontinent. The economic boom has given the country the confi dence to surge ahead. Bangladesh, seen as a Collective economic advance bridge between the South and south-east Asia, may not be making a big splash with its development The region’s prospects for a collective story, but is certainly proving to be the proverbial economic advance are rather dim due to “tortoise” that may eventually overtake many “hares” with its perseverance. ********** www.iasscore.in 3 CURRENT AFFAIRS WEEK - 4 (OCTOBER, 2020) WEEKLY IS TRANSPARENT TAXATION THE PANACEA FOR TAX TERRORISM? CONTEXT In a recent report “The Human Cost of Disasters 2000-2019”, the United Nations pointed out that climate change is largely to blame for a near doubling of natural disasters in the past 20 years. CONTEXT The Income-tax Act, 1961 (the Act) was amended in 2019 to introduce the concept of faceless assessment Types of taxes and in 2020 to provide for statutory recognition of a tax-payers’ charter and an enabling provision Taxes are classifi ed under two categories for faceless appeals. The “Transparent Taxation- namely direct and indirect taxes: Honouring the Honest” platform was launched on 13 Direct taxes: Direct taxes are levied on August 2020, covering the aforesaid aspects. individuals and corporate entities and cannot be transferred to others. What is Transparent Taxation? ! Example: These include income tax, A transparent taxation regime is a pre-requisite wealth tax, and gift tax.