Daily Current Affairs : 3rd August 2022

Daily Current Affairs for UPSC CSE

Topics Covered

1. China – Taiwan Relationship
2. Rupee Exchange Rate
3. New Start Treaty
4. CITES & Wildlife amendment bill –
5. Facts for Prelims

1 . China – Taiwan Relationship 

Context: U.S. House Speaker has arrived in Taiwan despite Chinese warning against it, marking the most high-level political visit from the U.S. to Taiwan in 25 years. 

About the issue

• Beijing considers Taiwan a part of China, threatens it frequently, and has not ruled out taking the island by military force at any time. 
• For China, the presence of a senior American figure in Taiwan would indicate some kind of US support for Taiwan’s independence.  

Where does Taiwan stand in relation to China and the world? 

• Taiwan was earlier known as Formosa, a tiny island on the east coast of China. 
• Chinese republicans of the Kuomintang government retreated from here after the 1949 victory of the communists, and it has since continued as the Republic of China.  

Historical Background

•  Taiwan observes October 10 — “double 10” — as its national day. 
  • In 1911 sections of Manchu army rose in rebellion, leading to the overthrow of the Qing dynasty and the end of 4,000 years of the monarchy.  
• The Republic of China was declared on December 29, 1911, and was firmly established in 1920s under the leadership of Dr Sun Yat-sen, founder of the Kuomintang (KMT) Party. 
• Sun was succeeded by General Chiang Kai-shek, whose actions against the Chinese communists who were part of an alliance with the KMT, triggered the civil war that ended in victory for the communists and retreat of Chiang and the KMT to Taiwan. 
• Since its founding in 1949, Peoples Republic of China has believed that Taiwan must be reunified with the mainland, while the Republic of China has held out as an “independent” country.  
• The RoC became the non-communist frontier against China during the Cold War. 

How the world views Taiwan 

• The United Nations does not recognise Taiwan as a separate country. 
• Only 13 countries around the world — mainly in South America, the Caribbean, Oceania, and the Vatican — do. 
• In 1971, US inaugurated ties with the PRC through the secret diplomacy of Henry Kissinger, national security adviser to President Richard Nixon. 
• The US has a policy of “strategic ambiguity” towards Taiwan.  
  • It maintains ties with Taipei, and sells weapons to it, but officially subscribes to the PRC’s “One China Policy” in which Taiwan does not exist as a separate entity.  
  • It is this delicate diplomatic balance that Biden’s pronouncement has jolted. 

China-Taiwan – US tensions 

• In 1954-55, and in 1958, the PRC bombed the Jinmen, Mazu, and Dachen islands under Taiwan’s control, drawing in the US.  
• Congress passed the Formosa Resolution authorising President Eisenhower to defend RoC territory. 
• In 1955, Chinese Premier declared at the Bandung Conference that he wanted negotiations with the US.   But as civil war broke out in Lebanon in 1958, China resumed the bombing, provoking the US to supply Taiwanese outposts on the islands.  
• The PRC and ROC then arrived at an arrangement to bomb each other’s garrisons on alternate days – this continued until 1971. 
• The US has maintained a ‘One China’ policy since the 1970s, under which it recognises Taiwan as a part of China. But it has unofficial ties with Taiwan as well — a strategy that is known as strategic or deliberate ambiguity.  
• The most serious encounter was in 1995-96 
  • China began testing missiles in the seas around Taiwan, triggering the biggest US mobilisation in the region since the Vietnam War.  
  • It led to the re-election in 1996 of President Lee Teng-hui, seen by the Chinese as a pro-independence leader. 

Independence politics 

• In 1975, Chiang Kai-shek died, martial law was lifted, and Taiwan got its first democratic reforms.  
• Starting from the 1990s, and despite the missile crisis, relations between the PRC and RoC improved, and trade ties were established.  
• As the British prepared to exit Hong Kong in 1999, the “One China, Two Systems” solution was offered to Taiwan as well, but it was rejected by the Taiwanese. 
• In 2000, Taiwan got its first non-KMT government, when the Taiwanese nationalist Democratic Progressive Party (DPP) won the presidency.  
• In 2004, China started drafting an anti-secession law aimed at Taiwan; trade and connectivity, however, continued to improve. 
• Taiwan has massive economic interests, including investments in China. 
• Pro-independence sections worry that this might come in the way of their goals.  
• Inversely, the pro-reunification sections, as well as China, hope that economic dependence and increasing people-to-people contacts will wear out the pro-independence lobbies. 

India – Taiwan Relationship 

• India does not have formal diplomatic ties with Taiwan yet, as it follows the One-China policy. However, during then Chinese premier Wen Jiabao’s visit to India in December 2010, India did not mention support for the One-China policy in the joint communique. 
• While following the One-China policy, India has an office in Taipei for diplomatic functions — India-Taipei Association (ITA) is headed by a senior diplomat. Taiwan has the Taipei Economic and Cultural Center (TECC) in New Delhi. Both were established in 1995. 
• Ties focus on commerce, culture and education. Now in their third decade, these have been deliberately kept low-profile, owing to China’s sensitivities. For example, parliamentary delegation visits and legislature-level dialogues have stopped since 2017, around the time the India-China border standoff happened in Doklam. 

Conclusion 

• Beijing has never recognised the existence of Taiwan as an independent political entity, arguing that it was always a Chinese province.  
• Taiwan says that the modern Chinese state was only formed after the revolution of 1911, and it was not a part of that state or of the People’s Republic of China that was established after the communist revolution. 
• The fact that neither side US and China wants, nor can afford, a military confrontation may yet see the current tensions defused with each side walking away and claiming a show of strength for their domestic audiences. The latest crisis has, however, made clear the perilous state of relations between the world’s two biggest powers. It is unlikely to be the last.

2 . Rupee Exchange Rate 

Context: The rupee rallied 53 paise, its best single-day gain in more than 11 months — to close at 78.53 against the U.S. dollar 

What determines the rupee’s value? 

• The value of any currency is determined by demand for the currency as well as its supply.
  • When the supply of a currency increases, its value drops.  
  • On the other hand, when the demand for a currency increases, its value rises.  
• In the wider economy, central banks determine the supply of currencies, while the demand for currencies depends on the amount of goods and services produced in the economy. 
• In the forex market, the supply of rupees is determined by the demand for imports and various foreign assets.  
  • If there is high demand to import oil, it can lead to an increase in the supply of rupees in the forex market and cause the rupee’s value to drop.  
  • The demand for rupees in the forex market, depends on foreign demand for Indian exports and other domestic assets.  
• For example, when there is great enthusiasm among foreign investors to invest in India, it can lead to an increase in the supply of dollars in the forex market which in turn causes the rupee’s value to rise against the dollar. 
• This explains the current rise in value of the rupee. 

Reason for the current rise in the value of Rupee 

• Persistent foreign fund inflows into capital markets 
• Softening crude oil prices  
• Weak U.S. dollar in the global markets  
• Slow pace of tightening by the U.S. Federal Reserve  

Appreciation and Depreciation of Money

• Both the terms appreciation and depreciation are generally used in the exchange rate. In India, RBI plays a major role in depreciating or appreciating the Rupee value and maintaining the exchange rate. Most of the time RBI will not involve in exchange rate maintenance but sometimes RBI involves and manages the exchange rate of the rupee because when the Rupee value depreciates gradually rupee becomes weaker, and we have to pay more Indian rupees to purchase dollars.  
• Appreciation of Money: 
  • Appreciation of currency means an increase in the value of the currency.  
  • The currency value is increased because when it is compared to the demand and supply of the other international currencies in the international market, by that the appreciation of the currency would be estimated. 
• Depreciation: 
  • Depreciation means a decrease in the value of any financial asset.  
  • Depreciation of currency means a decrease in the value of the currency.  
  • It is also based on the demand and supply of the currency when compared to international currencies in the international market. 

Impact of appreciation of Rupee 

• Positive impact on Importers as the import becomes cheaper
• Negative impact on exports as the markets will be flooded by cheap exports. 
  • With the appreciation of the Rupee, exports become more expensive and less profitable for the domestic exporter since they end up earning less Rupees when exchanging the dollar. The actual cost may remain the same for the buyer, but Indian accounts would reflect a lower cash balance due to the currency difference. 
• Sectors affected the most: IT  
  • When the Rupee is trending higher against the dollar, IT firms are severely hit since most of their revenue is accounted for by exports. 
  • It may have a domino effect on the overall stock market since the IT sector accounts for a significant chunk of the leading market indices.  

3 . New START Treaty 

Context: Russia and USA are open to talks on a new arms control deal to replace the New START treaty after it expires in 2026. Both extended the New START treaty when it was due to expire in February 2021. 

About the New START treaty 

• New START (Strategic Arms Reduction Treaty) is a nuclear arms reduction treaty between the United States and the Russian Federation with the formal name of Measures for the Further Reduction and Limitation of Strategic Offensive Arms. It was signed on 8 April 2010 in Prague and, after ratification entered into force on 5 February 2011. It is expected to last at least until 2021.
• New START replaced the Strategic Offensive Reductions Treaty (SORT), which was due to expire in December 2012. Its name is a follow-up to the START I treaty, which expired in December 2009, the proposed START II treaty, which never entered into force, and the START III treaty, for which negotiations were never concluded.

Key provisions 

• Missile, bomber and launcher limits
  • Deployed intercontinental ballistic missiles (ICBMs), submarine-launched ballistic missiles (SLBMs), and heavy bombers assigned to nuclear missions are limited to 700.  
  • SORT did not cover launchers 
  • It does not limit the number of non-deployed ICBMs and SLBMs, but it does monitor them and provides continuous information on their locations and on-site inspections to confirm that they are not added to the deployed force.  
• Force structure
  • It limits each country to no more than 1,550 deployed nuclear warheads and 700 deployed missiles and bombers. 
  • It envisages sweeping on-site inspections to verify compliance. 
• Warheads
  • Limits each country to no more than 1,550 deployed nuclear warheads 
•  Delivery vehicles and launchers:  
  • Each deployed ICBM, SLBM, and nuclear-capable bomber is counted as one delivery vehicle against the 700 limits.  
  • Each deployed and non-deployed missile launcher or bomber is counted as one launcher against the 800 limits.  
  • Non-deployed missiles are monitored but not limited in number. 

Conclusion 

• If the New START treaty expires without being replaced with a solid deal, it will negatively impact global security and stability, primarily in the area of arms control. 

4 . Wildlife amendment bill 

Context: The Lok Sabha passed the Wildlife (Protection) Amendment Bill, with no significant modifications to the version of the Bill presented in the House for discussion. 

Background of Wildlife Protection Act

• The wild Birds Protection act was passed by the British India Government in 1887
• A second law was enacted in 1912 called the wild birds and animals protection act. This act was amended in 1935
• After Independence in 1960 rising issue of protection of certain species from becoming extinct came into the limelight. Hence in 1972 forests part from state subject was shifted to concurrent list by passing the wildlife protection act 1972.

About Wildlife Protection Act 1972

• Wildlife Act 1972 preserves the country’s wild animals, birds and plants in order to ensure ecological and environmental security.
• This act has laid down restrictions on hunting various kinds of animal species.
• It also includes provisions related to harvesting and various other ancillary matters connected thereto.
• It has six schedules which includes the list of endangered species, list of wild animals that are threatening to human lives, list of animals declared as vermin and list of specified trade, plants, possession etc which extend all over the India.
• Various kinds of penalties have been laid down for the violation of the laws contained therein.

Schedules under WPA

• It has six schedules which give varying degrees of protection. 
• Schedule I and part II of Schedule II provide absolute protection – offences under these are prescribed the highest penalties.
• Species listed in Schedule III and Schedule IV are also protected, but the penalties are much lower.
• Animals under Schedule V, e.g. common crows, fruit bats, rats and mice, are legally considered vermin and may be hunted freely.
• The specified endemic plants in Schedule VI are prohibited from cultivation and planting.
• The hunting to the Enforcement authorities have the power to compound offences under this Schedule (i.e. they impose fines on the offenders). 

Key Objectives of Wildlife protection act

• Prohibition of hunting
• Protection and management of wildlife habitat
• Establishment of protected aread
• Regulation and control of trade in parts and products derived from wildlife
• Management of zoos

The recent amendment  

• The key objective of the Bill is to make Indian law compatible with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).  
• There were 50 amendments to the Act proposed in the Bill.  

Need of the amendment

• India has been blacklisted by CITES once before, and if a second blacklisting were to happen — then India will no longer be able to trade in important plant specimens. This would affect the livelihood of a large section of Indian society that relies heavily on this trade.
• The rationalisation needed to be done because there were many discrepancies in the schedules and they were also ambiguous.
• Some species were listed under English names, others under scientific names, some under families while others under orders.
• Such a categorisation was very confusing for wildlife and forest officials on the ground to implement.

Key Highlights of the Bill 

• Rationalising schedules:  
  • Currently, the Act has six schedules for specially protected plants (one), specially protected animals (four), and vermin species (one).   
  • Bill reduces it to four by:  
    • Reducing the number of schedules for specially protected animals to two (one for greater protection level) 
    • Removes the schedule for vermin species 
    • Inserts a new schedule for specimens listed in the Appendices under CITES (scheduled specimens). 
• Obligations under CITES:  The Bill authorises central government to designate  
  • Management Authority: which grants export or import permits for trade of specimens, and  
  • Scientific Authority: which gives advice on aspects related to the impact on the survival of the specimens being traded.   
  • Every person engaging in trade of a scheduled specimen must report the details of the transaction to the Management Authority.   
  • It prohibits any person from modifying or removing the identification mark of the specimen.   
  • Every person possessing live specimens of scheduled animals must obtain a registration certificate from the Management Authority. 
• Invasive alien species:  It empowers the central government to regulate or prohibit the import, trade, possession or proliferation of invasive alien species.   
• Control of sanctuaries:  The Present Act entrusts the Chief Wildlife Warden to control, manage and maintain all sanctuaries in a state.  The Chief Wildlife Warden has been appointed by the state government. The Bill specifies that the actions of the Chief Warden must be in accordance with the management plans for the sanctuary.  These plans will be prepared as per guidelines of the central government, and as approved by the Chief Warden. 
• Conservation reserves:   Under the Act, state governments may declare areas adjacent to national parks and sanctuaries as a conservation reserve, for protecting flora and fauna, and their habitat.   The Bill empowers the central government to also notify a conservation reserve. 
• Surrender of captive animals:  The Bill provides for any person to voluntarily surrender any captive animals or animal products to the Chief Wildlife Warden. No compensation will be paid to the person for surrendering such items. The surrendered items become property of the state government.   
• Penalties: Bill has increased the fines for violating the provisions of the Act.   

5 . Facts for Prelims 

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) 

• It is an international agreement between governments to ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species.   
• CITES was drafted as a result of a resolution adopted in 1963 at a meeting of members of IUCN (The World Conservation Union). The text of the Convention was finally agreed at a meeting of representatives of 80 countries in Washington, D.C., United States of America, on 3 March 1973, and on 1 July 1975 CITES entered in force. 
• It was later amended in 1979 to trade plant and animal specimens with other governments, without threatening the survival of the species. 
• Under CITES, plant and animal specimens are classified into three categories (Appendices) based on the threat to their extinction.   
• The Convention requires countries to regulate the trade of all listed specimens through permits.   
• It also seeks to regulate the possession of live animal specimens.   
•  Although CITES is legally binding on the Parties – in other words they have to implement the Convention – it does not take the place of national laws. Rather it provides a framework to be respected by each Party, which has to adopt its own domestic legislation to ensure that CITES is implemented at the national level.
• There are three appendices: Appendix I, II, and III. Each denotes a different level of protection from trade.
  • Appendix I It includes species that are in danger of extinction because of international trade.
    • Permits are required for import and export, and trade for commercial purposes is prohibited.
    • The Asiatic lion and tigers are two species listed as Appendix I.
  • Appendix II It includes species that aren’t facing imminent extinction but need monitoring to ensure that trade doesn’t become a threat.
    • Export is allowed if the plant, animal, or related product was obtained legally and if harvesting it won’t hurt the species’ chance of survival.
    •  American alligators are listed on Appendix II, for example.
  • Appendix III
    • It includes species that are protected in at least one country, when that country asks others for help in regulating the trade. Regulations for these species vary, but typically the country that requested the listing can issue export permits, and export from other countries requires a certificate of origin.

Facts about National Flag

• The national flag of India is a horizontal rectangular flag of with saffron, white and green colours with the Ashoka Chakra, a 24-spoke wheel, in navy blue at its centre.
• The first Indian flag was hoisted on August 7, 1906 at Parsi Bagan Square in Calcutta. It showed religious symbols and had flowers with Vande Matram inscribed on it. It had three stripes of green (top), yellow (middle) and red (bottom) colors.
• The second version of the Indian flag with partial modifications was hoisted by Madam Bhikaji Cama at the second Socialist International summit in Stuttgart, Germany. Notably, Madam Cama is the first person to unfurl Indian National Flag on foreign soil.
• Another version of the flag was hoisted in 1917 by Bal Gangadhar Tilak. It had two stripes, of red and green and the Union Jack – flag of the United Kingdom – on top left and a crescent on top right. It also had seven terms to represent the Saptrishi constellation.
• In 1921, a 4th kind of flag was used. The new flag had white, green and red stripes, with white representing representing religious minorities, green representing Muslims and Red representing Hindus. There was a Spinning Wheel in the middle. This flag was as per the vision of Mahatma Gandhi.
• A fifth version of the flag was developed in 1921 which was adopted by the Congress committee. This flag had saffron color at the top, white in the middle, and green color at the bottom with a Spinning Wheel in the middle.
• The Indian National Flag which is in use now was designed by Pingali Venkayya, an educationist and freedom fighter from Andhra Pradesh. On August 15, 1947, the first Prime Minister of India, Jawaharlal Nehru, hoisted the national flag at Lahori Gate of Red Fort in Delhi.
• The present national flag has three colours – saffron representing courage and sacrifice, white representing peace and green representing prosperity. The Ashok Chakra in the middle represents the cycle of life. The length to width ratio of the flag has to be 3:2.
• Flag code: Indian national flag must be hoisted in the day time only and there should be no flag or any other symbolic representation above it. The flag must be hoisted in horizontal direction with the saffron colour always on the top.

Har Ghar Tiranga Campaign 

• Har Ghar Tiranga campaign aims to have citizens hoist the National Flag in their homes between August 13 and 15. 
• It is a campaign under the aegis of Azadi Ka Amrit Mahotsav to encourage people to bring the Tiranga home and to hoist it to mark the 75th year of India’s independence.  
• Various events involving people from all walks of life will be organised at various locations connected with the freedom struggle.  
• As this is a ground-up initiative, the role of the government has been that of a facilitator.  
• The Flag Code was changed to make the flag more accessible and thus give every Indian the unique opportunity to hoist the flag at their homes. 
• Subsequently, the government has taken various steps to ensure the supply of flags across the country.  
• Flags are now available in all post offices in the country.  
• State governments have tied up with various stakeholders for the supply of flags. 
• The flag will be available on the government’s e-market marketplace (GEM) portal, on e-commerce portals, and with various self-help groups (SHGs). 
• Significance: 
  • Bringing the flag home collectively as a nation in the 75th year of independence is symbolic not only as an act of personal connection to the Tiranga but also as an embodiment of our commitment to nation-building. 
  • The idea is to invoke the feeling of patriotism in the hearts of the people and to promote awareness about the Indian National Flag. 

Waqf Board 

• Waqf is the property given in the name of God for religious and charitable purposes.  
• In legal terms, permanent dedication by a person professing Islam, of any movable or immovable property for any purpose recognised by the Muslim law as pious, religious or charitable.  
• A waqf can be formed through a deed or instrument, or a property can be deemed waqf if it has been used for religious or charitable purposes for a long period of time.  
• The proceeds are typically used to finance educational institutions, graveyards, mosques and shelter homes. 
• A person creating the waqf cannot take back the property and the waqf would be a continuing entity.  
• A non-Muslim can also create a waqf, but the individual must profess Islam and the objective of creating the waqf must be Islamic. 
• Waqfs in India are governed by the Waqf Act, 1995.  The most well-known Waqf board is India’s Central Waqf Council (CWC), set up in 1964, which advises and oversees the functioning of state-level Waqf boards across the country. 
• Central Waqf Council, India is an Indian statutory body established in 1964 by the Government of India under the Waqf Act, 1954 for the purpose of advising it on matters pertaining to the working of the State Waqf Boards and proper administration of the Waqfs in the country.
• The waqf is managed by a mutawali, who acts as a supervisor.  
• It is similar to a trust established under the Indian Trusts Act, 1882, but trusts can be set up for a broader purpose than religious and charitable uses.  
• A trust established can also be dissolved by the board unlike a waqf. 

Hell Fire Missile

• Hellfire is actually an acronym for Heliborne, Laser, Fire and Forget Missile and it was developed in the US initially to target tanks from the Apache AH-64 attack helicopters. Later, the usage of these missiles spread to several other variants of helicopters and also ground and sea-based systems and drones.
• Developed by Lockheed Martin and Northrop Grumman, the Hellfire missile has other variants such as ‘Longbow’ and ‘Romeo’ apart from the ‘Ninja’.
• Better known in military circles as the AGM-114 R9X, the Hellfire R9X is a US-origin missile known to cause minimum collateral damage while engaging individual targets.
• Also known as the ‘Ninja Missile’, this weapon does not carry a warhead and instead deploys razor-sharp blades at the terminal stage of its attack trajectory. This helps it to break through even thick steel sheets and cut down the target using the kinetic energy of its propulsion without causing any damage to the persons in the general vicinity or to the structure of the building.
• The blades pop out of the missile and cut down the intended target without causing the massive damage to the surroundings which would be the case with a missile carrying an explosive warhead.