AMIGOS IAS Current Affairs (19^th August 2024)

Policy of Lateral entry into bureaucracy

GS 2: Polity and Governance: Lateral Entry

Why is it in the news?

• The Union Public Service Commission (UPSC) advertised for lateral recruitment to 45 senior bureaucratic positions, including Joint Secretary, Director, and Deputy Secretary, across 24 ministries.
• This initiative aims to bring in talent from various sectors, including state governments and private industry, with all positions open to candidates with benchmark disabilities.

More about the news

About Lateral Entry in Administration:

• Lateral entry, recommended by NITI Aayog in its three-year Action Agenda and the Sectoral Group of Secretaries in 2017, allows for the recruitment of specialists on contracts basis.
• Initially, only Joint Secretary positions were advertised in 2018, but now Director and Deputy Secretary roles are also included. Since 2018, this policy has resulted in 63 appointments, with 57 lateral entrants currently in place.
• Purpose: The policy is intended to inject specialized skills, expertise, and experience in specific domains to join the bureaucracy, traditionally composed of career bureaucrats.
• Process of Lateral Entry Recruitment: At the request of the Department of Personnel and Training, UPSC invites applications from Indian nationals for senior and mid-level government positions on a three-year contract, extendable up to five years, with appointments based on performance.
• However, the policy has faced criticism for lacking reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
• Opposition leaders argue that this omission excludes these groups from opportunities and contravenes constitutional reservations.
• However, the Department of Personnel and Training (DoPT’s) stance is that reservations do not apply to lateral appointments, which are considered similar to deputations.
• Consequently, these positions are treated as single-post vacancies, bypassing the reservation policies that apply to multiple-post recruitments. This exclusion has sparked debate over equitable representation in senior bureaucratic roles.

Additional Information:

Need for Lateral Entry:

• Addressing Bureaucratic Shortages: Lateral entry can bridge the talent gap in the bureacracy by bringing in private sector experts.
• According to the 2023-24 Demands for Grants report, the Department of Personnel and Training (DoPT) highlights a shortfall, with only 442 IAS officers at the Centre compared to the required 1,469.
• Enhancing Domain Expertise: Lateral entry into civil services enables the recruitment of professionals with specialized skills in fields such as technology, management, and finance, addressing gaps in expertise that the traditional generalist-focused recruitment process may overlook.
• Notable examples include the appointments of economists like Manmohan Singh, Vijay Kelkar, and Bimal Jalan, whose lateral entry brought valuable domain knowledge to policymaking and governance.
• Merit-Based Recruitment: Lateral entry prioritizes merit, skills, and experience over traditional seniority, fostering a performance-driven culture within the civil services.
• Fostering Innovation: Individuals from diverse backgrounds bring new ideas, innovative approaches, and fresh perspectives, potentially improving efficiency and effectiveness in public administration.
• For example, under Nandan Nilekani’s innovative approach, Aadhaar became the world’s largest biometric ID system.
• Bridging Public-Private Sector Gaps: The concept of ‘lateral exits’ facilitates temporary migration of civil servants to the private sector, bridging gaps between the two fields.
• For instance, Railway Minister Ashwini Vaishnaw, who transitioned from civil service to senior management roles in multinational corporations like General Electric (GE) and Siemens, exemplifies this movement.

Arguments Against Lateral Entry:

• Risk of Diluting Merit-Based Recruitment: The implementation of lateral entry could undermine the merit-based recruitment system central to civil services if not managed transparently, potentially fostering perceptions of favouritism or nepotism in the selection process.
• Potential for Bias: The selection process for lateral entry could be perceived as biased or politically influenced, raising concerns about transparency, fairness, and potential conflicts of interest.
• Short Tenure Challenges: The Central government mandates a three-year tenure for joint secretaries, which may be inadequate for newcomers to fully adapt to complex governance systems and make substantial contributions.
• Outsider Syndrome: Traditional bureaucrats may resist lateral entrants due to concerns about hierarchy and disruptions in administrative structure, leading to perceptions of hostility and being treated as outsiders.
• Senior Role Experience Criteria: In the traditional system, IAS officers are promoted to joint secretary after 17 years of service, typically around age 45, and serve for about ten years. If lateral entry positions demand similar experience, top private-sector professionals might be deterred, as they often reach the peak of their careers by that age.

Way Forward for Effective Lateral Entry Integration:

• Adopt Best Practices: Learn from global examples such as the UK’s Civil Service Fast Stream program, which recruits based on specialized skills and expertise at various levels.
• Phased Integration: Introduce lateral entrants gradually into the bureaucracy, pairing them with experienced civil servants as mentors to facilitate smooth adaptation and effective contributions.
• Define Roles and Expectations: Clearly articulate roles, responsibilities, and performance indicators for lateral entrants to ensure their contributions align with organizational goals and meet established objectives.
• Integrate Lateral Entry with Lateral Exit: Promote lateral exits for civil servants to gain diverse sector experience, enhancing their skills and productivity, and balance this with lateral entry for a well-rounded public sector.
• Ensure Transparent Selection: Maintain a transparent and merit-based selection process for lateral entrants, focusing on relevant expertise and skills while avoiding perceptions of favouritism or bias.
• Prevent Misuse: Ensure lateral entry appointments are merit-based and not politically influenced by delegating the recruitment process to a constitutional body like UPSC, which can set clear job requirements and uphold integrity.

SEBI’s Credibility is under a Cloud

GS 3: Economy: SEBI

Why is it in the news?

• The Securities and Exchange Board of India (SEBI) is currently under scrutiny due to allegations from Hindenburg Research.
• The U.S.-based firm, known for its critical reports, claims that SEBI is hesitant to investigate allegations related to offshore funds linked to the Adani Group.
• According to Hindenburg, this reluctance is due to a potential conflict of interest involving SEBI’s Chairperson, Madhabi Puri Buch, who had previously invested in the same fund as her spouse.

More about the news

• In response to these allegations, SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, clarified that their investment in the fund identified by Hindenburg was made before she joined SEBI in 2017, while they were private citizens living in Singapore.
• They emphasized that this investment was redeemed in 2018, and that the fund did not invest in Adani Group securities. They also addressed concerns about Buch’s consulting firms, stating that these firms became dormant upon her SEBI appointment, and that all relevant disclosures were made to SEBI and tax authorities.
• SEBI has stated that it has completed 23 out of 24 investigations into the Adani Group, with the final one nearing completion. SEBI also mentioned that Buch has recused herself from matters with potential conflicts of interest and adhered to disclosure requirements regarding her holdings.
• Despite these clarifications, Hindenburg Research has raised new questions. They argue that the Buchs’ investment in a fund managed by someone with ties to Adani could imply a significant conflict of interest.
• They also pointed out that Buch only transferred her stake in the Singapore-based consulting firm to her husband shortly after her SEBI appointment and continued to hold a stake in the Indian consulting firm that reported significant revenue during her tenure.
• Hindenburg has called for a thorough, transparent investigation into these issues. SEBI and the Buchs have yet to respond to these new concerns.
• According to the SEBI Code on Conflict of Interest for Members of the Board, a SEBI member must avoid conflicts of interest and disclose any potential conflicts.
• Additionally, members are prohibited from holding other positions that could lead to a conflict of interest. Recent revelations about Buch’s continued involvement with her consulting firms might violate these guidelines.
• A recent report from The Morning Context highlighted a potential conflict in a case involving Essel Propack, where Buch allegedly did not recuse herself from decisions related to a Blackstone subsidiary, despite its relevance to her husband’s consultancy clients.
• The Supreme Court had previously expressed confidence in SEBI’s investigation into the Adani Group, noting that transferring the investigation to another agency would require significant evidence of bias or failure.
• Buch’s tenure as SEBI Chairperson is set to end next March, with the possibility of a renewal. To address the current concerns, SEBI could expedite the pending investigation into the Adani Group and provide detailed findings from the 24 completed investigations, ensuring transparency and restoring public confidence in its oversight.

Additional Information:

About Hindenburg Research:

• Founded in 2017 by Nathan Anderson, Hindenburg Research is a US-based investment research firm named after the 1937 Hindenburg disaster, a man-made explosion of a German airship.
• The company specializes in forensic financial analysis, investigating accounting irregularities, unethical practices, and undisclosed financial issues, often revealing corporate fraud and stock manipulation with significant market impacts.

Securities and Exchange Board of India (SEBI):

• About: Established in 1992 under the Securities and Exchange Board of India Act, SEBI is a statutory body under the Finance Ministry responsible for regulating the securities market.
• Composition: It includes a chairman, two members from the Union Finance Ministry, one member from the Reserve Bank of India, and five additional members nominated by the Union Government, with at least three being whole-time members.
• Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
• Powers: SEBI functions as a quasi-legislative and quasi-judicial body, capable of drafting regulations, conducting inquiries, issuing rulings, and imposing penalties.
• Functions: SEBI serves three main purposes:
• Issuers: Provides a marketplace for raising capital.
• Investors: Ensures safety and the availability of accurate information.
• Intermediaries: Facilitates a competitive and professional market for intermediaries.

What are offshore funds?

• Offshore funds are mutual fund schemes that invest in equities of a foreign country or fixed income securities of foreign countries often used as tax havens. They are also referred to as foreign funds or international funds.
• Offshore mutual funds, like other mutual funds, are regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), and must comply with their guidelines.

UPSC Civil Services Mains PYQ:

Q. The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify. (2013)

Lessons from Wayanad and Himachal

GS 1&3: Geography and Disaster Management 

Why is it in the news?

• Two major natural disasters within 48 hours— a massive landslide in Kerala’s Wayanad and a cloud burst over Himachal Pradesh—highlight serious gaps in India’s disaster preparedness.
• The landslide in Wayanad, triggered by 572 mm of rain in just 48 hours, and the cloud burst in Himachal, which saw 150-212 mm of rain, have resulted in over 350 deaths and numerous missing persons.

More about the news

• Cloud bursts are intense, localized downpours exceeding 100 mm/hour in a small area, typically lasting only minutes. Recent events in Himachal Pradesh, with heavy rainfall from cumulonimbus clouds, echo past tragedies like the Kedarnath flash flood of 2013.
• In contrast, landslides, such as those in Wayanad, result from intense rainfall or earthquakes, affecting areas with vulnerable topography.
• India’s disaster preparedness is insufficient despite improved early warning systems and management authorities. The vulnerability to natural disasters is exacerbated by socio-economic factors like poverty and inequality.
• However, the recent disasters underscore the failure to act on early warnings and implement effective risk reduction strategies.

Recommendations for improved preparedness

• Regulation and Planning: Adhere strictly to environmental impact assessments and regulations in ecologically sensitive areas to mitigate disaster risks.
• Sustainable Alternatives: Promote ecotourism cautiously and explore alternative livelihoods to reduce pressure on fragile ecosystems.
• Enhanced Monitoring: Install automated weather stations at the gram panchayat and urban local body levels to enable timely evacuations and responses.
• Focus on Climate Change: Prioritize climate adaptation and mitigation strategies. Despite the rising threat, the Union Budget’s allocation for climate change remains minimal, highlighting a need for increased focus on climate resilience.
• Hence, addressing these issues can help reduce the impact of future disasters and enhance India’s readiness to handle extreme weather events.

How an Iranian group used ChatGPT to influence U.S. presidential election

GS 3: Cyber Security Threats

About the news

• OpenAI announced on August 16, 2024, that it had banned several ChatGPT accounts involved in an Iranian influence operation aimed at the U.S. presidential election.
• The operation, dubbed Storm-2035, utilized ChatGPT to generate and disseminate politically charged content through fake news websites and social media, targeting both liberal and conservative voters.
• The Storm-2035 network operated through websites such as EvenPolitics and Nio Thinker, which exploited divisive topics like LGBTQ rights and the Israel-Hamas conflict.
• ChatGPT was used to create articles and social media posts, mimicking American language patterns and rehashing propaganda to influence U.S. voters. Despite the scale of the operation, OpenAI downplayed its impact, noting that the content garnered little engagement on social media.
• The discovery underscores the urgent need for robust safeguards against AI misuse. OpenAI has previously faced similar issues, including operations from Russia and China using its tools for influence.
• The company is enhancing its security measures and collaborating with U.S. federal agencies to address these vulnerabilities.

Additional Information:

Concerns and Risks of AI Development and Deployment:

• Superhuman AI: The development of highly intelligent AI systems that surpass human capabilities raises fears about their control and potential unintended consequences, including risks to humanity.
• Malicious Use of AI: AI technologies can be misused for creating fake news, deepfakes, and cyberattacks, which can amplify misinformation, manipulate public opinion, and threaten cybersecurity.
• Biases and Discrimination: AI systems, if trained on biased data, can perpetuate and amplify societal biases, leading to discrimination in areas such as hiring, criminal justice, and access to services.
• Rising Costs: Compliance with regulations can increase costs for businesses, which disproportionately impacts smaller companies and startups, limiting their competitive edge in the AI market.
• Lack of Explainability and Transparency: Deep learning models often lack interpretability, making it challenging to understand AI decisions and raising concerns about accountability and potential biases in critical applications like healthcare and finance.
• Job Displacement and Economic Impact: AI-driven automation may displace jobs, especially in repetitive tasks, leading to unemployment and societal disruptions, and necessitating new job opportunities and a smooth transition.
• Ex: Self-checkout systems in retail reducing the need for cashiers.
• Security and Privacy: AI’s access to vast amounts of personal data raises concerns about privacy breaches, unauthorized use, and the potential for exploitation in surveillance and security bypassing.
• Ex: Deepfakes for spreading misinformation and propaganda.
• Ethical Considerations: Advanced AI systems pose ethical questions about decision-making responsibility, human rights, and alignment with societal values.
• Ex: Facial recognition systems exhibiting bias toward certain ethnic groups.

Regulation of AI:

• India’s Initiatives:
• Digital India Framework: India is creating a comprehensive framework to regulate AI, focusing on protecting digital citizens and ensuring safe AI use.
• INDIAai: The National AI Portal of India, functions as a knowledge hub, research organization, and ecosystem-building initiative to promote the responsible and effective use of AI.
• National Strategy for Artificial Intelligence outlines a vision to develop a research-focused and adoption-driven ecosystem, leveraging AI for economic growth and social development.
• National Data Governance Framework Policy: Governs data collection, storage, and use in AI systems, ensuring ethical data handling.
• Draft Digital India Act: MeitY is drafting a new act to replace the IT Act, including specific regulations for emerging technologies like AI.
• Global Efforts:
• Bletchley Declaration: A global agreement from the 2023 AI Safety Summit, involving major powers such as China, the EU, India, and the US, to address ethical and security challenges of AI, especially generative AI.
• Global Partnership on Artificial Intelligence (GPAI): In 2020, India and 15 other countries formed the GPAI to create frameworks for the responsible use of emerging technologies and facilitate key discussions on AI’s evolving challenges.

UPSC Civil Services PYQ’s:

Prelims

Q. With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)

1. Bring down electricity consumption in industrial units

2. Create meaningful short stories and songs

3. Disease diagnosis

4. Text-to-Speech Conversion

5. Wireless transmission of electrical energy

Select the correct answer using the code given below:

(a) 1, 2, 3 and 5 only

(b) 1, 3 and 4 only

(c) 2, 4 and 5 only

(d) 1, 2, 3, 4 and 5

Answer: B

Mains

Q. “The emergence of the Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of government”. Discuss. (2020)

Q. Introduce the concept of Artificial Intelligence (AI). How does AI help clinical diagnosis? Do you perceive any threat to the privacy of the individual in the use of AI in healthcare? (2023)

Contribution of Indian Americans to US society and economy

GS 2: International Relations: Indian Diaspora

Why is it in the news?

• The latest report by Indiaspora, titled “Small Community, Big Contributions, Boundless Horizons: The Indian Diaspora in the United States,” highlights the significant economic and social impact of Indian Americans.

Key takeaways of the report

• According to the report, Indian Americans contribute $300 billion in tax revenues annually and own 60% of all US hotels, which generate around $700 billion in revenue and create over 4 million jobs each year.
• They also own 35%-50% of all convenience stores in the US, generating between $350 billion and $490 billion in annual revenues.
• The report, which draws data from the Migration Policy Institute, notes that the Indian diaspora in the US, comprising 5.1 million individuals, represents just 1.5% of the population.
• Among these, 45% migrated after 2010, while about 30% moved before 2000. The majority are concentrated in New York State and California.
• Indian Americans lead 72 out of 648 unicorn startups in the US, with a combined value exceeding $195 billion and employing approximately 55,000 people.
• In academia, 13% of 2023 journal publications were co-authored by Indian-origin scientists, up from 11% in 2015. Additionally, 35 of the top 50 US colleges have an Indian American in leadership positions.
• Since 2000, 28 of the 34 Scripps Spelling Bee winners have been of Indian origin. Further, Indian Americans have donated $3 billion to US universities since 2008 and contribute $1.5 to $2 billion annually to charity.

Additional Information:

India’s Diaspora: Largest Global Emigrant Population

• Definition: Diaspora refers to person(s) belonging to a particular country with a common origin or culture, but   settled in different parts of the world for various reasons.
• It constitutes NRIs (Non-resident Indians) and OCIs (Overseas Citizenship of India).
• India boasts the largest emigrant population globally, with approximately 32 million people living abroad, making it the leading origin country.

• Factors Driving Diaspora Growth:
• Push Factors: Economic hardships, social discrimination, conflict and persecution, environmental challenges, etc.
• Pull Factors: Economic opportunities, political freedom, religious tolerance, social amenities and services, family reunification, etc.
• Other Factors: Historical, Trade and globalization, technological advancements, cultural connections, etc.
• Significance of Indian diaspora:
• Socio-Cultural: Preserves and enriches traditions, fosters cross-cultural linkages. Indian food, music, dance, and clothing have all become popular in various parts of the world due to the influence of the Indian Diaspora. Ex: Indian restaurants in America.
• Economic: Contributes remittances, facilitates trade and commerce, stimulates investment.

Ex: India is ranked as top recipient of global remittances by World Bank.

• Political: Acts as informal ambassadors, influences policy, advocates for India’s interests.
• Significance for Host Countries: Complements local labour force, boosts entrepreneurship and businesses.
• Enhancing India’s Soft Power: One of the wealthiest minorities in many developed nations, the diaspora serves as a bridge through “diaspora diplomacy” and represents a potent political vote bank.

Government Initiatives for Empowering the Indian Diaspora:

• Institutional Measures:
• Merger of the Ministry of Overseas Indian Affairs with the Ministry of External Affairs
• Pravasi Bharatiya Kendra and other related institutions
• Engagement Initiatives:
• Overseas Citizenship of India (OCI) scheme
• Pravasi Bharatiya Divas
• Know India Program
• Indian Community Welfare Fund (ICWF)
• Digital Outreach:
• e-Migrate system
• Students Registration Portal
• Pravasi Rishta Portal
• Online Services for overseas voters
• Economic Measures:
• Liberalization of Foreign Direct Investment (FDI) norms
• Entrepreneurial initiatives, including partnerships like the US-India Business Council
• Bilateral and Multilateral Arrangements:
• Migration and Mobility Partnership Agreements
• Labour Manpower Agreements
• The Innovation for Defence Excellence (iDEX)

UPSC Civil Services Mains PYQ’s:

Q. ‘Indian Diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (2020)

Q. The Indian Diaspora has an important role to play in South East Asian countries economy and society. Appraise the role of Indian Diaspora in South-East Asia in this context. (2017)

India shines at the 17th International Earth Sciences Olympiad

GS 3: Science and Technology: Earth Sciences

About the news

• India’s team excelled at the 17th International Earth Sciences Olympiad (IESO) held in Beijing, China from August 8-16, 2024.
• Representing Gujarat, Kerala, Chhattisgarh, and Rajasthan, the four-member team earned three gold, two silver, and one bronze medal across Theory and Practical, Earth System Project, and International Team Field Investigation categories.
• This strong showing underscores India’s rising prominence in global earth sciences education.
• Dr. Jitendra Singh, Minister of State (Independent Charge) for the Ministry of Earth Sciences, praised the team for their achievements.
• Dr. M Ravichandran, Secretary of the Ministry of Earth Sciences, lauded the students’ success under the REACHOUT scheme, which supports research, education, training, and outreach in earth sciences.
• Dr. Jagvir Singh from MoES highlighted the Olympiad’s role in engaging young minds on climate change, environmental challenges, and natural disasters.

About International Earth Sciences Olympiad (IESO):

• Established in 2003, at the International Geoscience Education Organization Council Meeting in Calgary, Canada.
• It is an annual competition aimed at promoting earth sciences among secondary school students worldwide.
• This year’s event featured teams from 35 countries, with 32 advancing to the finals.
• It aims to raise awareness of earth sciences through teamwork, collaboration, idea exchange, and competition, with the overarching vision of sparking interest in earth system sciences and fostering solution-oriented discussions on environmental challenges.

India’s Engagement and Initiatives in Earth Science Education:

• India has participated in the IESO since 2007 and hosted its 10th edition in Mysore.
• The Indian National Earth Science Olympiad (INESO), supported by MoES and facilitated by the Geological Society of India, selects top students (of grades 9 to 12) for the IESO.
• The assessment topics for students include geology, meteorology, oceanography, and environmental sciences.
• The REACHOUT scheme under the PRITHVI (PRITHvi Vigyan) program, approved in January 2024, supports both INESO and IESO to enhance understanding of Earth system sciences through research and development.