Q.

A. Rough framework Primary Answer

Intro The new NPT challenges the old NPTs myth of

entitlement by holding states that after 7 July
owned, possessed or controlled nuclear
weapons or other nuclear explosive devices
responsible for verifying the irreversible
elimination of its nuclear-weapon programme
if they become parties to the treaty. In doing
so, nuclear weapons have been devalued and
are reduced to a liability rather than being
treated as an asset.

Who voted?

Similarly, the fact that the majority of the 193

UN members voted for the treaty, including
nearly a third of the Group of Twenty, nearly
three-fourths of the Non-Aligned, and old NPT
members, reflects that

Most countries do not depend on nuclear

weapons for their security. In fact, the
entire southern hemisphere is free of
nuclear weapons.

Only around 40-odd countries look to

nuclear weapons for their security.

Difference between the old NPT (Non-

Proliferation Treaty) and the new NPT(Nuclear
prohibition Treaty):

1. The new NPT challenges the old NPTs

myth of entitlement by holding states
2. the new NPT corrects one of the
strangest anomalies in international
security: acquiescing the possession
and use of the deadliest weapons ever
invented by mankind. Until this treaty,
nuclear weapons (unlike chemical and
biological weapons) had never been
banned. The new NPT commits state
parties not to develop, test, produce,
manufacture, otherwise acquire,
possess or stockpile nuclear weapons
or other nuclear explosive devices.
Additionally, the treaty also bans the
transfer, stationing, installation or
deployment of nuclear weapons in
other countries as well as the use or
threat of use of nuclear weapons
3. the old NPT is weakest on
disarmament and considers it a near
impossibility without general and
complete disarmament, the new NPT
 delineates three pathways by which
states possessing or being protected
by nuclear weapons can disarm and
join the treaty in the future.
What are the pathways?

1. disarm and join route, where countries

first destroy their arsenals, dismantle their
nuclear weapon facilities and then join the
treaty as non-nuclear weapon states. This is
the approach that was adopted in the case of
South Africa, which first declared and
destroyed its nuclear bombs and facilities and
then joined the old NPT.
2. join and disarm pathway where the
country first joins the treaty, declares its
nuclear stockpile and enters into an
agreement with a competent international
authority to dismantle its arsenal and related
facilities as per the timetable agreed upon.
This approach is akin to the one followed by
the Chemical Weapons Convention, where
countries declared their stockpiles at the time
of joining and worked out a plan to dismantle
their arsenals in a fixed time frame.
3. Unlike the first two paths, which are aimed
at states that possess nuclear weapons, a
third approach is offered to states that have
nuclear weapons in its territory or in any
place under its jurisdiction or control that are
owned, possessed or controlled by another
state. These states should ensure the prompt
removal of these nuclear weapons as part of
their agreement to join the treaty and submit
a declaration that they have fulfilled their
obligations. This approach is designed to
accommodate countries such as the
Netherlands, Japan, Australia and others
that presently live under a nuclear
umbrella but might want to leave that
protection and join the treaty.

Main body

Conclusion the passing of the new NPT has already

challenged the very basis of nuclear
deterrence and the nuclear order based on the
old NPT.

Final Answer
Intro

Main body

Conclusion

Remarks Nuclear umbrella,

Q.

A. Rough framework Primary Answer

Intro The crisis can be traced to the premature

opening-up of capital accounts before
domestic financial systems and
regulations were ready.

Short-term borrowing was liberalized even

more than long-term foreign direct investment
in those countries.

Causes:

Encouraged by dollar-pegged exchange

rates, portfolio investment and bank
loans from advanced economies flooded
into Asia before the crisis, fueling
domestic asset and property price
bubbles. Large short-term US-denominated
debts financed long-term domestic
investments, creating currency and maturity
mismatches. Once it became clear they were
unsustainable, capital flows suddenly
reversed. This led to large devaluations of the
currencies and massive bank defaults.

Main body What happened then?

The international community quickly came to

the rescue. The International Monetary
Fund, World Bank, Asian Development
Bank (ADB) and the regions
governments provided foreign exchange
liquidity and budget support.

ADB offered $7.8 billion in loans over two

years, mainly through fast disbursing
policy-based lending for financial sector
reform and social protection to
Indonesia, the Republic of Korea, and
Thailand.

So, did they recover?

In the event, countries recovered faster

than expected.

After the initial stabilization measures,

authorities at crisis-affected countries

1. reinforced sound macroeconomic

policies supported by fiscal
prudence and more independent
central banks.
2. They adopted more flexible
exchange rates, strengthened
 financial sector regulation and
governance, and implemented
structural reforms.
3. Countries adopted more prudent
approaches to capital account
liberalization with better
sequencing, consistent with
domestic economic conditions.
4. The crisis also gave strong impetus
to regional cooperation initiatives.
Conclusion

Way forward:

First, countries must continue pursuing sound

macroeconomic policies. They need adequate
fiscal space and international reserve buffers
against future shocks. The region requires
greater revenue from tax reforms and better
collection to finance infrastructure and social
sector needs.

Second, countries need deeper and broader

financial systems. In addition to sound
banking sectors, they need strong capital
markets, especially in local currency bonds,
both sovereign and corporate. The Asean +3
Asian bond markets initiative (Asean:
Association of Southeast Asian Nations),
supported by ADB, has helped expand
outstanding local currency bonds from $1
trillion in 2002 to over $10 trillion in 2016.

Third, both macro- and micro-prudential

policies are critical to maintain financial
stability. Cross-border capital flows, domestic
credit growth, and asset price inflation should
be monitored closely. And wider financial
inclusion is needed, not just to support social
equity, but to enhance sustainable growth by
boosting access to financial services for small
and medium-sized enterprises and
households.

Fourth, the region must narrow its

infrastructure gaps, which ADB estimates will
require over $1.7 trillion a year through
2030. Over 400 million people still lack
electricity and about 300 million have no
access to safe drinking water.

Fifth, Asia must also address climate change

risks through both mitigation and adaptation
measures. By using smart urban planning,
Asian cities can be more resilient.

Sixth, human capital development is essential

for countries to advance and avoid the
middle-income trap. Education systems should
equip people with the necessary skills and
knowledge to adapt to a rapidly evolving
 technology and business environment.
Adequate health services are urgently needed.

Finally, regional cooperation can mitigate risks

from globalization. Financial crises are
becoming more frequent and costly in a world
of free capital flows and financial
liberalization.

Strengthening regional financial cooperation

for emergency financing, macroeconomic
surveillance, and collective efforts for financial
sector development through initiatives such as
the Chiang Mai Initiative Multilateralization will
contribute to macroeconomic and financial
stability.

Final Answer

Intro

Main body

Conclusion

Remarks Currency mismatch, maturity mismatch, sequencing capital account liberalisation,

flying geese model, production-sharing network model

maturity mismatch-In general, this means to match incorrectly or unsuitably. In

the banking world, it refers to a situation pertaining to asset and liability
management. A mismatch occurs when assets that earn interest do not balance
with liabilities upon which interest must be paid. For example, an asset that is
funded by a liability with a different maturity creates a mismatch.\

Sequencing: To maximize the benefits of capital account liberalization while

minimizing the risks, much thought must be given to pace and sequencing. The
conventional view of sequencing emphasizes the importance of achieving
macroeconomic stability and developing domestic financial institutions, markets,
and instruments before liberalizing the capital account. According to this view,
capital account liberalization should occur late in a country's economic reform
program. An alternative view stresses constraints on reforms and the limited
capacity of countries to reform themselves in the absence of external pressures for
reform; this view favors early capital account liberalization, which can serve as a
catalyst for broader economic reforms and overcome vested interests' opposition
to reforms. A middle view is that capital account liberalization should be part of a
concurrent, integrated, and comprehensive approach to macroeconomic and
structural reform; in this view, the coordination of reforms in the domestic and
external sectors is the key issue.

http://www.imf.org/external/pubs/ft/fandd/1998/12/johnston.htm

Flying geese model: in which certain industries shifted from the frontrunner
Japanto the four tigers and others as technology advanced. It is now based on
a production-sharing network model, in which different countries share parts of
production processes, not necessarily reflecting their development stages. This
enables developing countries to integrate into the regional and global value chains
more quickly, facilitating technical and skills transfers.
Q.

A. Rough framework Primary Answer

Intro According to the World Malaria Report 2016,

India contributed 89% of the incidence of
malaria in the South-East Asia region. As per
the provisional epidemiological report 2016,
there were over 1 lakh positive cases in
Indias 36 states and UTs, which caused 331
deaths. The Indian record stands in sharp
contrast to some of its neighbours the
Maldives was certified malaria-free in 2015,
and Sri Lanka followed last year.

Timelines

The Health Ministry has now released its

vision for ridding the country of malaria
by 2027, and of eliminating the disease by
2030.

To be declared malaria-free, a country has to

report zero incidence for at least three years.

The ambitious National Strategic Plan

(NSP) for Malaria Elimination (2017-22)
is a year-wise roadmap for malaria elimination
across the country, is based on last years
National Framework for Malaria Elimination,
which was, in turn, spurred by World Health
Organisations Global Technical Strategy for
Malaria, 2016-2030.

Whats the plan?

What is this plan to eradicate malaria?

The NSP divides the country into four

categories, from 0 to 3. Zero, the first
category, has 75 districts that have not
reported any case of malaria for the last three
years. Category 1 has 448 districts, in which
the annual parasite incidence (API, or the
number of positive slides for the parasite in a
year) is less than one per 1,000 population. In
Category 2, which has 48 districts, the API is
one and above, but less than two per 1,000
population. Category 3 has 107 districts,
reporting an API of two and above per 1,000
population.

The plan is to eliminate malaria (zero

indigenous cases) by 2022 in all Category
1 and 2 districts. The remaining districts are
 to be brought under a pre-elimination and
elimination programme. The NSP also aims to
maintain a malaria-free status for areas where
transmission has been interrupted. It seeks to
achieve universal case detection and
treatment services in endemic districts to
ensure 100% diagnosis of all suspected cases,
and full treatment of all confirmed cases.

The plan has four components, based on WHO

recommendations: diagnosis and case
management; surveillance and epidemic
response; prevention integrated vector
management; cross-cutting
interventions, which include advocacy,
communication, research and
development, and other initiatives.

Main body Which states have the highest incidence

of malaria?

In India, malaria is caused by the parasites

Plasmodium falciparum (Pf) and
Plasmodium Vivax (Pv). Pf is found more
in the forest areas, whereas Pv is more
common in the plains.

The disease is mainly concentrated in the

tribal and remote areas of the country. The
majority of reporting districts are in the
countryseastern and central parts the
largest number of cases are found in
Chhattisgarh, Jharkhand, Madhya Pradesh,
Odisha, and the Northeastern states of
Tripura, Mizoram and Meghalaya.

What kind of challenges is the NSP likely

to face?

One of the biggest challenges is the shortage

of manpower. According to the Health
Ministry, there are only about 40,000
multipurpose health workers (MPWs)
against the approximately 80,000
sanctioned posts in the 1,50,000 subcentres
in the country.

Other problems include access to conflict-

affected tribal areas, and to areas with a high
malaria endemicity and insecticide resistance.
High endemicity states include those in
the Northeast, which share borders with
neighbouring countries like Bangladesh, where
the prevalence of malaria is high.

Cost of NSP- 10,700 crore

Conclusion

Final Answer

Intro

Main body

Conclusion

Remarks
Q.

A. Rough framework Primary Answer

Intro Punjab is endowed with one of the best

possible infrastructures for agriculture in the
country

1. the highest irrigation cover

amongst all states 98.5 per cent
of its cropped area is irrigated.
2. Almost all villages in the state are
connected with pucca all-weather
roads.
3. The network of regulated mandis in
Punjab is one of the best in the
country.
4. A robust and fast-moving
procurement system has reduced the
market risks of wheat and paddy
growers in the state.
5. Almost 90 per cent of the market
arrivals is procured at the minimum
support price (MSP).

So, whats the problem?

6. Almost 80 per cent of irrigation is
from groundwater sources,
facilitated by highly subsidised
power. Power subsidy in the states
current budget has crossed Rs 7,000
crore. This is much higher than the
subsidy provided to any other
agricultural input. Much of the large
power subsidy goes into the
cultivation of rice, a water-intensive
crop it requires 25 rounds of
irrigation in a season. The power
subsidy, then, is leading to the
depletion of the states water
table. This is the biggest bane of
Punjab agriculture.
7. MSP system has also made Punjabs
farmers risk averse. This is today the
biggest bottleneck in farmers
diversifying from the wheat-rice cycle,
which occupies more than 83 per cent
of Punjabs cropped area.

Whats the solution?

1. Diversification from common rice

to hybrid maize is one option,
which can save power subsidy and
groundwater, and yet give
farmers almost the same income
as paddy. But farmers are reluctant
to switch to maize because there is no
 effective procurement system for this
crop. Our suggestion to the Punjab
government is to tap the savings in
power subsidy roughly Rs
10,000/ha which could accrue once
farmers switch from paddy to maize.
The state could use these savings
to cover the risk of maize farmers
by promoting feed mills for
poultry and silage units for milch
cattle and encouraging starch
industries that use maize.

2. The dairy and meat industries are

other sources of diversification for
Punjabs agriculturalists. The state has
the highest yield of milch animals in
the country and its per capita
consumption of milk is also the
highest in the country. But the state
processes just about 10 per cent of
the milk it produces Gujarat, in
contrast, processes about half of the
milk it produces. Punjab needs to
incentivise private and cooperative
dairies to invest in processing milk
and milk products. It should target a
20 per cent increase in processed milk
in the next five years. More than 67
per cent of milch animals in Punjab
are buffaloes. If the state can
eradicate the foot and mouth disease,
buffalo meat from Punjab can be sold
at premium rates in international
markets, ultimately benefiting the
states dairy farmers.

Main body

Conclusion

Final Answer

Intro
Main body

Conclusion

Remarks
Q.

A. Rough framework Primary Answer

Intro Indias labour markets are confusing and Id

like to make the case that, one, India has
more formal jobs than we think; two, our
primary policy challenge is not creating jobs
but wages; and three, creating more formal
jobs needs sustained reforms to labour laws
and education. Lets look at all three points in
more detail.

First, India doesnt have only 7 per cent

formal employment but somewhere between
15-25 per cent. Indias job information suffers
from the Kartar Bhooth problem.

The Kartar Bhooth of Indias labour market

information is the report of the National
Commission for Enterprises in the
Unorganised Sector chaired by the late Arjun
Sengupta. I never met Sengupta but am sure
he would regret the confusion his report
created between unorganised/organised
enterprises and formal/informal employment
that has perpetuated the myth of 93 per cent
informal employment.

econd, most people who want a job in India

have one (our unemployment rate of 4.9 per
cent is not a fudge) but they dont have the
wages they need because of two large low-
productivity clusters in our labour markets: 50
per cent of our labour force works on farms
and 50 per cent of our labour force is self-
employed. Both are a job but dont generate
the surplus to pull out of poverty. Farm loan
waivers are an emergency response but states
doing them should worry about what doctors
call iatrogenic risks, that is, the problems
created by the treatment they prescribe.

Sustainably reducing farmer poverty needs

what economist Ashok Gulati thoughtfully calls
the 4Is incentives, investments,
institutions, and innovation but the only
way to really help farmers is to have less of
them. The poverty of self-employment is
obvious; the poor cannot afford to be
unemployed, not everybody can be an
entrepreneur, and many of Indias 60 million
enterprises are only viable with self-
exploitation or regulatory arbitrage.
 Sustainably higher wages can only come from
the higher productivity of formalised non-farm
jobs in urban areas done by workers with
higher human capital.

Finally, massive formal job creation needs

sustained reforms in labour laws and
education.

In labour laws, we should stay away from

hire-and-fire for now but we should:

One, reform the poor value for money 45 per

cent salary confiscation of formal employment
by goofy monopolies like EPFO (that has four
times more dormant accounts than live ones)
and ESI (that only pays out 45 per cent of
contributions it receives);

two, repeal defunct central laws (nine) and

merge the balance (35) into one labour code;

three, set an 18-month deadline under all

central laws for 100 per cent paperless,
presenceless, and cashless compliance for all
touch points (registration, licensing, returns,
challans, registers, etc).

In education, we should: One, separate the

role of regulator, policymakers and service
provider and shift education regulation to the
global non-profit structure norm; two, make
the Right to Education Act the Right to
Learning Act and remove the regulatory
cholesterol that breeds corruption; and three,
remove the ban on online higher education
Indias formalisation agenda is making good
progress.

Main body

Conclusion

Final Answer
Intro

Main body

Conclusion

Remarks iatrogenic risks

Q.

A. Rough framework Primary Answer

Intro

Main body

Conclusion

Final Answer

Intro

Main body

Conclusion

Remarks