CAO Daily Editorial analysis for UPSC IAS 18th-December, 2017

Current Affairs Only Daily Editorial Analysis for Competitive Exams


18th Dec, 2017

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Skills within schools {Education}

(The Hindu)


Context

India has among the youngest populations in the world, which means it can make a resourceful pool of manpower. A pre-requisite though is that it receives the right form of education, skills and employment. A step in this direction is the Skill Development Mission.

Issue

Jobless growth

Solution

The skilling programme has been built such that it provides short-term training to youth who have already dropped out from school. The idea is to provide them with a job by offering short-term technical/non-technical courses rather than actively enable them to seek out a career.

Major concern of the programme

  • Those who gained employment post-training were found to have dropped out in less than one year.
  • For those who completed a year in employment, the system did not offer a career because career advancement is not just related to skills, but also to educational qualifications.
  • The issue is that the same system that endeavours to provide jobs to youth restricts their career advancement, labelling them instead as dropouts.
  • The skill programme fails to understand how integral it is to incorporate such a huge initiative within the education system.

Governments initiatives

The Rashtriya Madhyamik Shiksha Abhiyan (RMSA)

It is a centrally sponsored scheme of ‘vocationalisation’ of secondary and higher secondary education.

It focusses on enhancing the employability of youth through demand-driven, competency-based, modular vocational courses, while reducing drop-out rates.

Drawbacks

Its modules are not customised to suit the requirements of children in different age groups. The same approach for skill training a 12- or 14-year-old cannot be followed for training an 18-year-old because skills need to be looked at more dynamically.


The crisis of globalization {International}

(The Hindu)


Context

Today’s so-called crisis of globalisation is nothing more than a new variable of the old battle between protectionism and free trade.

The global economic crisis that started in 2008 has engulfed the entire world and has laid waste to the process of globalization that was blamed by many as being the root cause of the crisis.

Population is divided in 2 parts

Tribalists & globalists

Tribalists is the state of being organized in or an advocate for a tribe or tribes. In terms of conformity, tribalism may also refer in popular cultural terms to a way of thinking or behaving in which people are loyal to their own tribe or social group.

Globalism is a group of ideologies that advocate the concept of globalization.

Cause of discontent

  • Technological innovations are what accelerate the rhythm of change. The medium is the message all over again.
  • It is the transformation of technology that affects society, not whatever that technology delivers (news, electricity, TV series).
  • Up until 20 to 30 years ago, you could reach your pension age before a new radical evolution in the job market, which created its winners and losers. Today, the challenge is that evolutionary shifts happen not just once before reaching pensionable age, but often.
  • This is what causes globalisation’s discontent.

Bank insecurities {Banking & Economy}

(Indian Express)


Context

Banking regulator should continue to handle bank failures, instead of the Resolution Corporation

 Financial Resolution and Deposit Insurance (FRDI) 

  • Introduced in the Lok Sabha on August 11, 2017, is under consideration of the Joint Committee of the Parliament.
  •  Presently, each depositor of banks can be only protected up to a limit of Rs. 1 lakh by the guarantee of the Deposit Insurance and Credit Guarantee Corporation (DICGC).
  • Remaining deposits (i.e. beyond Rs. 1 lakh of deposits in a bank) do not have any deposit protection guarantee and are treated, at par with claims of unsecured creditors as of now. Besides providing similar protection / guarantee of Rs. 1 lakh to depositors, as it exists today, the rights of uninsured depositors are being placed at an elevated status in the FRDI Bill compared to the existing legal arrangements over the unsecured creditors and even Government dues

 Highlights

The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks, including public sector banks. Government’s implicit guarantee for public sector banks remains unaffected.

Sparked concern is Clause 52 of the Bill 

Empowers the Resolution Corporation to, for instance, change some of the rights and obligations of shareholders and creditors to recapitalise a financial firm, including banks, to minimise the cost to the exchequer or the taxpayer in the event of its failure.

This is an approach which has been adopted in the West after the 2008 financial crisis when many governments had to bail out banks at huge fiscal cost.


 

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