Context:

FATF is looking to revise its current recommendations aimed at safeguarding non-profit organizations (NPO) from being abused for terrorist financing.

More on News:

• At its October 2023 plenary, the FATF will take up proposals to revise the FATF Standards’ Recommendation 8 on non-profits, and its interpretive note, and also adopt an updated best practices paper on this issue.                                      
  • FATF Recommendation 8: It  requires that the laws and regulations that govern non-profit organisations be reviewed so that these organisations cannot be abused for the financing of terrorism. 

About Financial Action Task Force (FATF):

•  FATF is an inter-governmental body  established in 1989 during the G7 Summit in Paris to develop policies against money laundering.Participation:  Its meetings include 206 global network countries and observer organisations like the World Bank, United Nations offices, and regional development banks.
• Secretariat: Paris, France.
• Members:
  • The FATF currently has 39 members, including two regional organisations: the European Commission, and the Gulf Cooperation Council.
  • India became an Observer at FATF in 2006. On June 25, 2010 India was taken in as the 34th country member of FATF.
  • India is also a member of its regional partners, the Asia Pacific Group (APG) and the Eurasian Group (EAG).
  • Key Observers:
    • Indonesia 
    • Asian Development Bank (ADB)
    • International Monetary Fund (IMF)
    • Interpol
    • World Bank
    • World Customs Organisation (WCO)
• Governance:
  • Presidency: The FATF President, chosen by the Plenary from its members, leads meetings, including those of the Plenary and Steering Group, while supervising the Secretariat.
  • Decision Making: The FATF Plenary is the decision making body of the FATF. It meets three times per year.
    • Decisions are taken by consensus in the 39-member group, where any three members can exercise a “veto” on an action.

Function of FATF:

• Targeting Illicit Activities: FATF has developed the FATF Recommendations, or FATF Standards, which ensure a coordinated global response to prevent organised crime, corruption and terrorism.
• Effective Money Pursuit:  FATF helps authorities go after the money of criminals dealing with illegal drugs, human trafficking, and other crimes. 
• Evaluating Frameworks: FATF assesses the strength of a country’s anti-money laundering and anti-terror financing frameworks. It does not go by individual cases.
• Evaluating Frameworks: FATF conducts regular peer-reviewed evaluations called Mutual Evaluations (ME) of countries to check their performance on standards prescribed by it. 
• Revised Mandate: 
  • 2001: After the 9/11 attacks, FATF expanded its mandate to incorporate efforts to combat terrorist financing.
  • 2012:  FATF added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).

Classification of Countries by FATF:

• FATF has 2 types of lists for classifying countries:  
  • Blacklist Countries: The Countries in this list known as Non-Cooperative Countries or Territories (NCCTs).
    • It means countries designated as ‘high-risk jurisdictions subject to call for action’. 
    • In this case, the countries have considerable deficiencies in their AML/CFT (anti-money laundering and counter terrorist financing) regimens and the body calls on members and non-members to apply enhanced due diligence. 
    • Currently, North Korea and Iran are on the black list.
  • Grey List: In essence, countries on the Grey list are under global watch by FATF for not adequately preventing money laundering and terrorist financing.
    • This inclusion serves as a warning to the country that it may enter the blacklist. For Example: Currently, Barbados and Albania are on the grey  list.

Consequences of being in the FATF’s list:

• Economic sanctions from IMF, World Bank, ADB 
• Problem in getting loans from IMF, World Bank, ADB and other countries
•  Reduction in international trade
• International boycott
• It may also affect capital inflows, foreign direct investments, and portfolio flows.

Challenges Associated with FATF:

• Voluntary Implementation: FATF isn’t an enforcement agency but relies on voluntary implementation of its reports by its members who also fund and determine its mandate
• Lack of Transparency: Meetings of the FATF are carried out behind closed doors, and deliberations are not publicised.
• Tackling Emerging Challenges: The FATF’s response to modern challenges in global counter-terror and anti-money laundering efforts, like bitcoins, cyber currencies, wildlife trafficking for funding, AI in terror, and biowarfare during the pandemic, is yet to be observed.
• Balancing Regulation and Innovation: Striking a balance between implementing stringent regulations to combat financial crime while also fostering innovation and financial inclusion is a complex challenge.
• Global Coordination: Ensuring consistent implementation of FATF standards across diverse jurisdictions with varying legal, regulatory, and cultural contexts can be challenging.
• Innovation in Criminal Tactics: Criminals constantly adapt to new regulations and exploit vulnerabilities, requiring FATF to continually evolve its strategies to stay ahead of emerging risks.
• Political Considerations: Balancing international cooperation with the political and economic interests of member countries can complicate decision-making and enforcement efforts.
  • For Example: China has reiterated its support for Pakistan and warned member countries of the Financial Action Task Force (FATF) to refrain from politicizing the forum.
• Failure in controlling money laundering: Criminals exploit complexities in global financial systems, making it difficult for FATF to fully prevent money laundering across borders.

FATF and India’s Legal and Institutional Frameworks:       

• Unlawful Activities (Prevention) Act, 1967 (UAPA): It provides special procedures to deal with terrorist financing.
• The Foreign Contribution (Regulation) Act, 1976: It dealt with regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life.
• The Narcotic Drugs and Psychotropic Substances Act, 1985: It made stringent provisions for the control and regulations of operations relating to narcotic drugs and psychotropic substances.
• The Prevention of Money Laundering Act, 2002 (PMLA): It was introduced to counter the trend of money laundering.
• The Financial Intelligence Unit-India (FIU-IND): It was  established under the Ministry of Finance in 2004 and deals with  suspected money laundering and terrorist financing to Intelligence / Enforcement Agencies and Regulatory Authorities.

Way Forward:

• Regular Reviews and Updates: Conduct periodic assessments of FATF’s standards and recommendations to ensure they remain relevant and adaptable to evolving financial crime trends.
• Capacity Building: Provide technical assistance and capacity-building support to developing countries to help them implement and enforce FATF standards effectively.
• Incorporate Technology Expertise: Include experts in emerging technologies, such as cryptocurrencies and artificial intelligence, to ensure that FATF’s recommendations address evolving risks.
• Enhanced Collaboration: Foster greater collaboration between FATF and other international organizations, such as Interpol and the United Nations, to coordinate efforts against financial crime more comprehensively.
• Transparent Assessments: Maintain transparency in FATF’s evaluation process, providing member countries with clear insights into assessment criteria, methodologies, and potential areas for improvement.

News Source : The Hindu

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Context: 

Recently, the World Trade Organization (WTO) unveiled its annual flagship publication, the World Trade Statistical Review (WTSR) for 2023.

Highlights From World Trade Statistical Review (WTSR)

• Global Exporters and Importers:
  • India ranked 18th in merchandise exports and 7th in services exports.
    • India was the 9th largest goods importer and 9th in services imports.
  • China remained the top merchandise exporter in 2022 but with a reduced world export share of 14%.
  • The United States and Germany ranked second and third in merchandise exports.
• Trade Value and Growth:
  • Global trade in goods and services amounted to $31 trillion in 2022, showing a 13% year-on-year rise (Y-o-Y).
  • Goods trade exceeded pre-pandemic levels in 2021, while services trade caught up in 2022.

About World Trade Statistical Review (WTSR) 2023:

• It provides a detailed analysis of the latest developments in world trade. 
• It is the WTO’s flagship statistical publication and is produced on an annual basis.
• It provides data on merchandise and services trade, categorized by geographical origin, product groups, and sectors.

News Source: Business Standard

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Context: 

The Zoological Survey of India (ZSI) recently published a report titled “75 Endemic Birds of India,” to commemorate the 108th anniversary of the foundation of the ZSI.

Key Findings of the Report:

• India’s Rich Bird Diversity: India is home to 1,353 bird species, which represents approximately 12.40% of global bird diversity. 
  • Of these 1,353 bird species, 78 (5%) are endemic to the country.
• Endemic Bird Species Threat Assessment in India: Out of the 78 endemic bird species in India, 
  • 25 are categorized as ‘Threatened’ by the IUCN.
  • 3 as ‘Critically Endangered’.
  • 5 as ‘Endangered’.
  • 17 as ‘Vulnerable’.
  • 11 as ‘Near Threatened’ .
• Distribution Patterns:
  • Western Ghats: 28 Endemic bird species.
  • Andaman and Nicobar Islands: 25 Endemic bird species.
• Not Seen in Decades: Three species have not been recorded in the last few decades:
  • Manipur Bush Quail (Perdicula manipurensis), listed as ‘Endangered’, last recorded sighting in 1907.
  • The Himalayan Quail (Ophrysia superciliosa), listed as ‘Critically Endangered’ with its last recorded sighting in 1876.
  • Jerdon’s Courser (Rhinoptilus bitorquatus), listed as ‘Critically Endangered’ with its last confirmed sighting in 2009.

News Source: The Hindu

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Context:

Recently, the Union Cabinet approved Rs 1.39 lakh crore for modernising the BharatNet project.

• This initiative involves changing its execution strategy and providing fiber connections to the last mile through Village Level Entrepreneurs.

Tweaks in BharatNet Project Execution Strategy:

• Village Level Entrepreneurs (Udyamis) Involvement: Partnering with Village Level Entrepreneurs (Udyamis), who will play a pivotal role in providing fiber connections to the last mile.
• Speeding Up Connectivity Process: Government aims to expedite the process of connecting all 640,000 villages across India within the next 2.5 years. 
  • This acceleration aligns with the goal of enhancing digital connectivity and bridging the urban-rural digital divide.
• 50:50 Revenue-Sharing Model: Taking a cue from private telecom operators like Airtel and Jio, the government will involve village level entrepreneurs or Udyamis to take the fiber connections to the homes on a 50:50 revenue-sharing basis.
• Infrastructure Costs Borne by Government: The government will cover the expenses related to bringing the necessary infrastructure to the households, such as laying down the fiber connections and related hardware.

Role and Contribution of Village Level Entrepreneurs (Udyamis):

• Maintenance and Operations Responsibilities: Village level entrepreneurs (Udyamis) will be responsible for the ongoing maintenance and operations of the home connections. 
  • This includes addressing technical issues, conducting repairs, and ensuring uninterrupted service.
• Addressing Consumer Complaints Udyamis: They will take charge of handling consumer complaints, particularly those related to fiber cuts or disruptions in connectivity. 

• Successful Pilot in 60,000 Villages: By involving local partners in the villages, the government managed to connect households effectively using this new approach.
• Expected Employment Opportunities: The inclusion of Udyamis in the project is anticipated to create employment opportunities for approximately 250,000 individuals. 

About Bharatnet Project:

• It is the world’s largest rural broadband connectivity programme using Optical fibre.
• National Optical Fibre Network (NOFN) which was launched in 2011 was renamed as Bharat Net Project in 2015.
  • NOFN was envisaged as an information superhighway through the creation of a robust middle-mile infrastructure for reaching broadband connectivity to Gram Panchayats.
• Fund: The entire project is being funded by Universal service Obligation Fund (USOF), which was set up for improving telecom services in rural and remote areas of the country.
• Implementing Agency: Bharat Broadband Network (BBNL).
  • BBNL is a Special Purpose Vehicle (SPV) set up by the Government of India under the Companies Act, 1956.
• Merger into BSNL: Bharat Broadband Network (BBNL) was merged into BSNL in July last year.

News Source: The Indian Express

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Context:

• Recent events, such as Russia hinting at the use of nuclear weapons against Ukraine and media like ‘Oppenheimer,’ have sparked global discussions about the history and consequences of nuclear weapons. 

What are Nuclear weapons?

• Nuclear weapons are highly destructive devices that derive their power from the process of nuclear fission or fusion. 
• To create a nuclear weapon, enriched uranium or plutonium are used which undergo controlled chain reactions to produce a devastating explosion. 

Difference between an atomic bomb and hydrogen bomb:

• The  atomic bomb gets its explosive energy from the splitting of atoms in materials like uranium or plutonium,  which takes place automatically. 
• On the other hand,  hydrogen bombs which are also known as thermonuclear bombs depend upon the fusing together of atoms as is taking place in the sun, to release much vaster quantities of energy than atomic bombs.

Development and proliferation of Nuclear bombs:

• The United States established the Manhattan Project during World War II with the aim of developing the world’s first nuclear weapon.
• One bomb, using plutonium, was successfully tested on July 16, 1945, at a site 193 km south of Albuquerque, New Mexico.
• The first atomic bomb to be used in warfare used uranium. It was dropped by the United States on Hiroshima, Japan, on August 6, 1945. 
• The next atomic bomb was dropped on Nagasaki on August 9, 1945, producing a blast equal to 21,000 tons of TNT. 
• After the war, the United States conducted test explosions of atomic bombs in the Pacific Proving Grounds in the Marshall Islands and in Nevada. 
• In subsequent years, the Soviet Union (1949), Great Britain (1952), France (1960), China (1964), India (1974), Pakistan (1998), and North Korea (2006) tested fission weapons of their own. 

Fig. Timeline of nuclear weapons tests
Image Source:ucsusa.org

Nuclear Program of India:

• India conducted its first nuclear test in May 1974 with the name of “Smiling Buddha”.
• After this, the Pokhran-II test was a part of the series of five nuclear tests conducted between 11 and 13 May 1998 in the Pokhran test range.
• India became the first nuclear-powered country without signing the Non-Proliferation Treaty (NPT).

India’s three-stage nuclear power programme:

• India’s three-stage nuclear power programme was formulated by Homi Bhabha, in the 1950s to secure the country’s long term energy independence, through the use of uranium and thorium reserves found in the monazite sands of coastal regions of South India. The three stages are:
• Natural uranium fuelled Pressurized Heavy Water Reactors (PWHR): It uses natural uranium to fuel PWHR to produce electricity and produces plutonium-239 as a byproduct. While PWHR used unenriched uranium, Light Water Reactors required enriched uranium. 
• Fast Breeder Reactors (FBRs) utilizing plutonium based fuel:Plutonium 293 undergoes fission to produce energy, metal oxide is reacted with enriched uranium and reacts with mixed-oxide fuel to produce more plutonium-239. Once a sufficient amount of plutonium-239 is built up, thorium will be used in the reactor, to produce Uranium-233. 
• Advanced nuclear power systems for utilization of thorium: The main purpose of stage-3 is to achieve a sustainable nuclear fuel cycle. The advanced nuclear system would use a combination of Uranium-233 and Thorium. 

Nuclear Doctrine of India: 

• India had made its Nuclear Doctrine in 2003. Its characteristics are:
• No First Use: According to this policy, nuclear weapons will only be used in retaliation against a nuclear attack on the Indian Territory or on Indian forces anywhere.
• Credible Minimum Deterrence: India needs to build and maintain a Credible Minimum Deterrence. It includes:
  • Sufficient and survivable nuclear forces to inflict unacceptable damage to the enemy. Nuclear Forces must be operationally prepared at all times.
  • Communication of Deterrence Capability to the enemy.
  • If a country invades India by a nuclear missile, its retaliation will be so massive and terrible that the enemy experiences unacceptable damage and would not be able to recover easily.
  • The right to take nuclear action against the enemy will only be taken by the political leadership of the country. In other words; the bureaucracy of India is not authorised to take the decision of the nuclear attack on the enemy.
  • Nuclear weapons will not be used against non-nuclear states.
  • If there is any chemical or biological attack against India or Indian security forces, then India will keep the option of nuclear attack open in its response.
  • A continuance of strict controls on the export of nuclear and missile-related materials and technologies, participation in the fissile material Cutoff Treaty negotiations, and continued observance of the moratorium on nuclear tests.
  • India will continue to support the global initiative to create a nuclear-free world and will push forward the idea of discrimination-free nuclear disarmament.

The Nuclear non-proliferation regime:

• Treaty on the Non-Proliferation of Nuclear Weapons (NPT),1968 is generally considered to be the corner-stone of nuclear stability. 
• The NPT distinguishes its parties between nuclear-weapon States (NWS) (States which conducted a nuclear test before 1967) and all the other States that, in order to be a member of the NPT, are classified as non-nuclear-weapon States (NNWS). 

Pillars of the treaty:

• The Principle of Non-Proliferation: The non-nuclear-weapon States refrain from acquiring nuclear weapons or from seeking the control of nuclear weapons, while the nuclear-weapon States agree not to transfer nuclear weapons or parts of them to others. 
  • Moreover, all Parties to the Treaty should refrain from transferring (un-safeguarded) fissile material to non-nuclear-weapon States.
• The Principle of Disarmament: Parties to the Treaty, and particularly the nuclear-weapon States, commit themselves to negotiations in good faith aimed at achieving an early stage nuclear disarmament and the cessation of the nuclear arms race.
• The Principle of Access to Peaceful Nuclear Technology: All Parties to the NPT have the right to develop and be assisted in the development of nuclear energy for civilian purposes.

Emerging Challenges to Nuclear Deterrence:

• Russian invasion of Ukraine: It has not only led to a global geopolitical transformation but has also revived discussions on potential nuclear confrontation and the importance of nuclear security and stability.
• North Korea’s nuclear tests, development of a small arsenal, and successful acquisition of ICBM capability has further raised concerns. The removal of US tactical nuclear weapons from South Korea adds complexity to the situation.
• China’s strategic differences with Japan and South Korea, both under the US nuclear umbrella, further intensified the debate on extended nuclear deterrence during the Taiwan crisis amid the context of the Ukraine War.
• China’s growing assertiveness, aspirations for superpower status have led to aggressive actions, such as establishing hegemonic influence in the Indo-Pacific, including encroachment on neighboring countries.
• The vulnerability of nuclear weapon command-and-control networks to human error and cyberattacks.
• The dangers of access to nuclear weapons and related materials by non-state actors.

Way Forward:

• Reducing nuclear arsenals: Nuclear-weapon States should reduce their nuclear arsenals to the “minimum” possible level and de-emphasize the role of nuclear weapons in military planning. 
• Nuclear weapons should be taken off alert: No nuclear weapon should be launched within minutes of notification of a missile attack.
• Ballistic Missile Defense: The development of the Ballistic Missile Defense should be carefully considered. 
• Destruction of eliminated weapons: Eliminated weapons should be destroyed or dismantled. They should not be put in deposits and left ready to be used should there be a need to again increase those nuclear arsenals.
• Creation of nuclear-weapon-free zones (NWFZ): The creation of new nuclear-weapon-free zones (NWFZ) and the expansion of the old ones is an important instrument to prevent the introduction of nuclear weapons in specific areas. 
  • The Middle East nuclear-weapon-free zone should be constantly pursued, despite the obvious difficulties.
• Nuclear treaties: The Intermediate-Range Nuclear Forces (INF) Treaty between the US and Russia has been suspended. Similar agreements like this could be reached. 
  • The UN Treaty on the Prohibition of Nuclear Weapons, which became effective in 2021, is a recent development in this direction.
• Smaller nuclear stockpiles: Reducing the stockpiles is important as it reduces the risk of accidents and the chance that a possible nuclear war would end civilization.
• Better monitoring, better control: The risk can be further reduced by efforts to better control nuclear weapons so that close calls occur less frequently. Similarly better monitoring systems would reduce the chance of false alarms. 

News Source: Indian Express 

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