NAGA PEACE PROCESS: EXPLAINED

Recently, the National Socialist Council of Nagalim (Isak-Muivah) marked the 25 years of ceasefire with the Government of India.

About ceasefire

• On August 1, 1997, the group and the Center had agreed to a cease-fire.
• After 25 years of signing a ceasefire deal with the Central government, the NSCN (I-M) has lamented the lack of advancement in the Naga peace process.
• The peace process apparently stalled because of disagreements between the two groups over the Yehzabo (Naga constitution), which the NSCN (I-M) claims were integrated into the Framework Agreement and the Naga flag.

Naga peace process

• The Naga region initially remained a part of Assam after India gained independence in 1947.
• The Naga Hills region of Assam and the Tuensang frontier division to the northeast were combined under a single unit directly governed by the Indian government in 1957 after an agreement was made between Naga leaders and the Indian government.
• Although Nagaland became a state in 1963, insurgent activities persisted.

Reason for armed insurgency

• Diverse tribal & ethnic groups: Ethno-communal disputes, native vs immigrant populations, and dominant tribal groupings (Nagas raising, NSCN (IM) & (K), ULFA, etc.) are some examples.
• Conflict causes rooted in history: There are many Tibeto-Burman/Mongoloid tribes with historical ties to one another (Ethnically, linguistically & culturally very distinct.)
• Physical limitations: Mountains make it challenging for security forces to monitor borders.
• Governance problems: Lack of a political-administrative structure, corruption, ties between political parties and armed opposition organizations, and No law and order.
• Armaments’ availability and porous borders: lead to illegal immigration and the trafficking of narcotics and arms (Golden Triangle).
• Developmental challenges: These include issues with poverty, unemployment, poor connection, feelings of neglect, and a lack of FDI.

Impact of insurgency

• Internal displacement of the population: Hindus and Muslims of Bengali ancestry who have been uprooted from and within Assam are examples of internal population displacement.

The eviction of Bodos and Adivasis (Tea Tribes) from and inside Western Assam, the eviction of Paints, Kukis, and Nagas from Manipur.

• Laws Used Arbitrarily: There are strong repercussions if common-law crimes are not distinguished from insurgency-related crimes.

Shortcuts exist in the criminal investigation and trial processes. Police use the National Security Act to hold people in custody or to kill them in fictitious confrontations.

• Child Education Disruption: There is a significant migration of school-age children from the area, which causes a significant outflow of money from the area.
• Sense of Insecurity: Frequent incidents of kidnapping, death, threat, and extortion; frequent abuses of human rights by both the rebels and the security forces; and fear of psychosis have all contributed to a persistent sense of unease.
• Politicians and rebels Nexus: When elected officials stop serving as the people's representatives, they are no longer held responsible and accountable by the electorate but rather by the rebels who orchestrated their victory.
• Diversion of Funds: Insurgents siphon off and steal significant amounts of money intended for development projects.

Suggestion

• Political, governmental, and cultural independence: The construction of a virtual state for the Nagas outside the borders of Nagaland state can be taken into consideration by the central government while protecting India's territorial integrity as a nation-state comes first.
• Learning from successful International Examples: Colombia offers indigenous groups a significant degree of political and administrative autonomy, and the majority-Swedish-speaking population in Finland is given cultural and political autonomy while in the land Islands.
• Repeal AFSPA: The Armed Forces (Special Powers) Act must be repealed by the Indian government as the first step toward real progress. It represents a significant barrier to any political agreement with the Naga insurgents. Building trust in the peace process will be greatly aided by making this concession to the Naga.
• Give people power and trust them to use it: When the time is right to negotiate a new deal, the people of the northeast need to decide the outcome of this struggle.
• This strategy necessitates communication between representatives of the Naga and the state governments in the northeast.

FINANCIAL INCLUSION INDEX

• The Composite Financial Inclusion Index (FI-Index) for the year ended March 31, 2022, has been made public by the Reserve Bank of India.
• It has improved to 56.4 in March 2022 vis-à-vis 53.9 in March 2021, with growth witnessed across all the sub-indices.
• The improvement has been seen across all its sub-indices Access, Usage, and Equality.
• The index is published annually in July.

About financial index

• The RBI created the composite financial inclusion index, which includes information on the banking, investments, insurance, postal, and pension sectors, to measure the level of financial inclusion across the nation.
• The index has three major parameters:

• Access: which is weighted at 35%,
• Utilization: which is weighted at 45%, and
• Quality: which is weighted at 20%.

• It includes information about the banking, investments, insurance, postal, and pension industries.

Features:

• The Index responds to accessibility, service availability and utilization, and service quality.
• The index records data on different facets of financial inclusion in a single number ranging from 0 to 100, where 0 denotes total financial exclusion and 100 denotes complete financial inclusion.
• This index has been constructed without any base year and reflects the cumulative efforts of all stakeholders over the years toward financial inclusion.

Significance of financial index

• Information on the level of financial inclusion is provided, and financial services are measured for use in internal policy making.
• It can be applied straight away as a composite measure in development indicators.

Fulfill the G20 Indicators:

• This makes it possible to meet the criteria for the G20 Financial Inclusion Indicators.
• The G20 indicators evaluate the status of digital financial services and financial inclusion on a national and international level.

Researcher Support:

• It also makes it easier for academics to look into the effects of financial inclusion and other macroeconomic factors.

Financial inclusion

• The process of ensuring vulnerable groups, such as weaker parts and low-income groups, have inexpensive access to financial services and timely and adequate financing when needed is known as financial inclusion.
• Financial inclusion is a crucial component of the development process in a multiethnic nation like India. Since the country's independence, the joint efforts of succeeding governments, oversight bodies, and civil society have contributed to widening the country's financial inclusion net.
• Since a transaction account enables people to keep money and send and receive payments, having access to one is the first step toward greater financial inclusion. An account for transactions acts as a doorway to additional financial services.

London Interbank Offered Rate (LIBOR)

(LIBOR) rose for the fourth straight session, rising roughly 2.5 basis points to 2.83229%, the highest since November 2008.

What Is London Interbank Offered Rate (LIBOR)?

• It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
• It acts as a well-recognized important benchmark interest rate that represents the cost of borrowing for banks.
• It is administered by the Intercontinental Exchange, which queries the biggest international banks about the short-term borrowing rates, which they would impose on other banks.

Rate calculation: The Waterfall Methodology, a standardized, transaction-based, data-driven, tiered approach, is used to calculate the rate.

Replacement: Due to manipulation, scandal, and methodological criticism, it is no longer regarded as a reliable benchmark rate.

On June 30, 2023, it will be replaced by the Secured Overnight Financing Rate (SOFR), with a phase-out of its use starting in 2021.

UDYAM PORTAL

According to the Union Minister of Micro, Small, and Medium Enterprises, over one crore Micro, Small, and Medium Enterprises (MSMEs) have registered on the Udyam portal in the past 25 months.

What is the Udyam portal??

• It was introduced on July 1st, 2020.
• The Union MSME ministry introduced an online mechanism for registering MSMEs.
• Additionally, it is connected to the databases of the Goods and Services Tax Network and the Central Board of Direct Taxes (CBDT).
• A channel of communication and engagement between taxpayers, the federal government, several state governments, and other stakeholders is established via the complex and one-of-a-kind IT enterprise known as GSTN.
• It is entirely online, doesn't call for any paperwork, and helps MSMEs operate more easily.

Feature

• The MSME registration process is entirely electronic, paperless, and self-declaratory. No documentation or paperwork must be uploaded in order to register an MSME.
• After registration, a Registration number will be provided.
• An Udyam Registration Certificate will be issued once the registration process is complete. This certificate will feature a dynamic QR Code that may be used to visit the web page on our portal and information about the company.
• PAN & GST connected information on an enterprise's investment and revenue will be automatically retrieved from the relevant government data repositories

Significance

• This procedure will be incredibly easy and seamless for business owners.
• It will serve as a model for ease of doing business both domestically and abroad.
• Transaction costs and time will be cut. Entrepreneurs and businesses can concentrate on doing their actual jobs while being globally competitive.
• Additionally, MSMEs support the nation's exports, GDP, and job creation.

New initiative

For the sharing of Udyam data, the MSME ministry inked MoUs with the Tourism Ministry and the National Small Industries Corporation.

Additionally, the Udyam registration Digi locker facility would be linked.

About MSME

• The Micro Small and Medium Enterprises (MSMEs) industry make a significant contribution to the nation's socioeconomic growth.
• Due to the sector's exports and contribution to India's Gross Domestic Product (GDP), the industry has grown significantly in prominence.
• Additionally, the sector has made significant contributions to the growth of entrepreneurship, particularly in India's semi-urban and rural regions.
• The Micro, Small & Medium Enterprises Development (MSMED) Act of 2006 specifies two categories into which Micro, Small & Medium Enterprises (MSME) are divided: Manufacturing Enterprises and Service Enterprises.