CAO Daily Editorial analysis for UPSC IAS 11-November, 2017

Current Affairs Only Daily Editorial Analysis for Competitive Exams


11 November, 2017

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Slippery oil rally {Indian Economy}

(The Hindu)


In news

  • The price of oil has risen sharply in recent weeks leading to renewed forecasts of a sustained bull market in the price of the commodity.
  •  The price of Brent crude, which breached the $60 mark late last month, is currently trading at about $64 per barrel, a two-year high. In fact, in the last one month alone, oil has gained well over 12%.
  • The ongoing rally could portend even higher prices in the coming months.

Reason behind rise in price

  • The upsurge this week has been driven primarily by political uncertainty in Saudi Arabia, the world’s second largest producer of oil, and the tightening of supply by the Organisation of the Petroleum Exporting Countries
  •  In the past, North American producers of shale brought a multi-year bull market in oil to an abrupt end. Since then, OPEC has struggled to maintain control over oil prices except for brief spells. 

What can be done to improve the condition?

  • Shale producers have continued to pump more oil into the market as crude prices have crossed the $50 mark.
  •  According to the Energy Information Administration, a body under the U.S. Department of Energy, U.S. shale production is likely to increase by about 81,000 barrels per day in the current month.
  • In addition, in its World Oil Outlook report released this week, OPEC said it expects shale output to grow much faster than it had previously estimated.

India gained a lot from oil since 2014Related image

  • India has derived huge benefits from lower oil prices since 2014, with the government’s fiscal management and inflation-targeting being rendered a lot easier.
  • There is bound to be some economic unease now as the price of oil fluctuates in what looks likely to be a range-bound market.
  • A repeat of the huge damage caused by the last oil bull market, however, seems unlikely.

Hindutva and its naysayers  {Indian Politics}

(Indian Express)


Context

Rise of ‘left-liberals’, and their blind antipathy to the RSS, shines the light on the crisis in the communist and socialist parties

In news

There has been an interesting development in Indian politics since the 2014 general election. The Narendra Modi government and Hindutva have been increasingly opposed more by a non-party formulation, known as left-liberals, than Opposition parties.

Ground of opposition

On issues like cow vigilantism, demonetisation or even the Gujarat elections, one can see their eagerness to polarise people on an anti-RSS and anti-Modi agenda.

Left-libertarianism

  • Left-wing libertarianism) names several related but distinct approaches to political and social theory, which stresses both individual freedom and social equality.
  • Left-libertarians, while maintaining full respect for personal property, are skeptical of or fully against private property, arguing that neither claiming nor mixing one’s labor with natural resources is enough to generate full private property rights  and maintain that natural resources (land, oil, gold, vegetation) should be held in an egalitarian manner, either unowned or owned collectively.
  • Those left-libertarians who support private property do so under the condition that recompense is offered to the local community. Many left-libertarian schools of thought are communist, advocating the eventual replacement of money with labor vouchers or decentralized planning.

Three elements which are used to evaluate the political effectiveness 

  • sociological,
  •  ideological and
  • organizational

Sociologically, left-liberals are an alliance of intellectuals, academics and a section of the media who have never camouflaged their anti-RSS worldview. Therefore, they are natural allies of the communist parties and co-opt any individual or group that shows antipathy for Hindutva.

Ideologically, left-liberals are undefined, like modern art. Those who are extremely pro-public sector and statist European economic models cohabit with people welcoming privatisation.


 

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