Issue of Caste in America and Elsewhere

GS-PAPER-2 Governance – Caste (Mains and I.V)

What is the issue?

A lawsuit has been filed in California against Cisco Systems for allowing caste discrimination against a Dalit Indian-origin employee. In this context, here is an overview of the issue of caste in America and elsewhere, outside the Indian subcontinent.

Earlier references to 'caste' in America?

• In 1913, A K Mozumdar, an immigrant from Bengal to Washington, applied to become an American citizen. US citizenship at the time was determined by race, and given only to whites. Mozumdar argued that as a “high-caste Hindu” of “Aryan descent”, he shared racial origins with Caucasians. His application was accepted and he became the first South Asian American to become a US citizen.
• In 1923, a similar argument that claimed caste was a way to whiteness was put forward by Bhagat Singh Thind. Thind was a Sikh writer who had served in the US Army during World War I. In his petition, he argued that he was technically “white”, given his “pure Aryan blood”. He argued that the high-caste Hindoo “regards the aboriginal Indian Mongoloid in the same manner as the American regards the "Negro", speaking from a matrimonial standpoint”. [Hindoo was a blanket term used then for all Indian immigrants.] Thind’s arguments were rejected in the US Supreme Court. It decided that he was not white, and hence not eligible for citizenship. A few months later, Mozumdar became the first Indian to lose his citizenship as a consequence of that judgment.

What happened after 1965?

The 1965 Immigration and Nationality Act came into place as a result of the civil rights campaign in the US. The Act overturned restrictions of race and colour. It thus allowed a whole generation of Indian skilled labour (mostly upper-caste) to be a part of the American dream. But importantly, soon, many “lower-caste” Indians also followed.

This was significantly because they accessed educational opportunities in technical institutions via reservations at home. With this, Dalit discrimination started in the US.

One such example is of the REC Warangal-educated Sujatha Gidla. Gidla's 2017 book ‘Ants Among Elephants: An Untouchable Family and the Making of Modern India’, was published in the US to great acclaim. In New York, she recalls facing discrimination from many Indians. Gidla recounts, a Brahmin bank cashier “wouldn’t accept money from my hands. She would demand that I place it on the counter.”

2015 California textbook debate?

In 2015, the California board of education asked scholars to help it come up with a framework for history and social science textbooks. It was part of a regular evaluation.

Following that, there was a bitter contest over several aspects of Indian history. This included caste and the critique of caste embedded in religions such as Buddhism and Sikhism as well.

The suggestions of the South Asian Histories for All Coalition (SAHFAC), a collective of scholars and historians, were met with opposition. The Hindu American Foundation and other Hindu groups mainly objected. They opposed narratives that portrayed “Hindu civilisation” negatively, and warned they might lead to the bullying of Hindu children.

However, the SAHFAC objected to -

1. 1. altering contentious portions of Indian history relating to caste atrocities
   2. the attempt to erase the word “Dalit” from history textbooks as demanded
   3. the attempt, allegedly, to portray Muslims as oppressors

How prevalent is caste discrimination in the U.S.?

• While the stories of Dalit families are compelling, there is no data about caste in the U.S, and this is a drawback. So, in 2018, Equality Labs (an advocacy group for the “caste-oppressed” in California) carried out a survey to fill this gap. It surveyed South Asian-Americans on their experience of caste.
• It showed that 67% of Dalits faced caste discrimination at the workplace, 40% in schools, and 40% at temples. [That report was cited in the present lawsuit filed against Cisco Systems.]

Is anti-caste movement possible in the U.S.?

An anti-caste movement taking root in the US is practically hard. Notably, of Indian immigrants, 90% are Brahmins and 1.5% is Dalits. Indians in America are a minority, and Dalits among them are a minority. Issues of such a tiny community making a big enough impact to be called a movement is less likely.

However, a Dalit consciousness has been present in the US from the 1970s or 1980s, away from the bright lights of media activism. People have resisted in private and in public in their own ways. Even hiding one’s caste is a way of fighting caste as Yengde (who works with community-based Ambedkarite organisations in the US) says.

What was the Dalits' demand for the 2001 UN Conference against Racism?

The UN Conference Against Racism, Racial Discrimination, Xenophobia and Related Intolerance was held in Durban, South Africa, in 2001. In the lead-up to the conference, Dalit groups had demanded that the conference also take a stand against the “hidden apartheid” in India.

Since the 1990s, these groups had had some success in lobbying international organisations on caste. The universal language and promise of human rights was used to broaden the framework to see the discrimination.

Specifically, the definition of racial discrimination as “exclusion based on race, colour and descent” was used to acknowledge caste. Notably, in 1999, a report by Human Rights Watch, ‘Broken People: Caste Violence against India’s Untouchables’, focussed international attention on the issue.

India's stance?

Omar Abdullah, then India’s Minister of State for External Affairs said at the conference, the following:

1. 1. We are firmly of the view that the issue of caste is not an appropriate subject for discussion at this conference.
   2. We are here to ensure that states do not condone or encourage regressive social attitudes.
   3. We are not here to engage in social engineering within member states.

What are the conflicting views in this regard?

• Indian government’s position has consistently been that caste should not be equated with race. It opines that caste should not be raised in committees that deal with race.
• Caste is an issue that India has been trying to address through constitutional measures. So, it does not deny caste, but believes that the issue of race should not get diluted by confusing it with other discriminations.
• On the other hand, Dalits argue that tackling caste needed much more than framing constitutional provisions and legislation. The attempt at the conference was to raise a global consensus, to legitimise anti-caste ideologies.
• The Indian government took a position that it needed no interference from the UN. But Dalits view it not as an interference.
• They assert that the UN was only pushing to collectively uphold the value that all humans, irrespective of caste, are equal, and some measures are to be taken for that. Strongly opposing the move by Dalit activists and groups, Indian government insisted that caste and race are two dissimilar and anomalous entities.

• But given the anti-apartheid position and programme of affirmative action, these conflicting views and the events at Durban were an embarrassment for India. These are just glimpses of the close to two decades' efforts at various levels to get institutions overseas to recognise the 'peculiar challenge of caste'.
• This system of inequality and oppression that is unique to the Indian subcontinent evidently finds reflections in varied forms elsewhere too. It has a long way to go before its presence is acknowledged and protections offered to the oppressed.

Caste Discrimination - California Lawsuit against Cisco Systems

A lawsuit has been filed in California against Cisco Systems, a tech multinational company, for allowing caste discrimination against a Dalit Indian-origin employee.

What is the case about?

• The California Department of Fair Employment and Housing filed a lawsuit against Cisco Systems. It was filed against Cisco and two “upper-caste” Indian managers. It accused Cisco Systems of allowing caste discrimination against a Dalit Indian-origin employee at its San Jose headquarters.
• The department's director said that it was unacceptable for workplace conditions and opportunities to be determined by a hereditary social status determined by birth. It was also said that the employers must be prepared to prevent, remedy, and deter unlawful conduct against workers because of caste.

What is the American law in this regard?

• The American law does not recognise caste.

• The lawsuit was filed under the federal Civil Rights Law 1964.
• The Law bars discrimination only on the basis of race, colour, religion, sex and national origin.
• However, in choosing to litigate, the California government is attempting to expand the ambit of discrimination to include caste.
• It is the first civil rights case in the US where a governmental entity is suing an American company for failing to protect caste-oppressed employees.

What is the significance?

• For close to two decades now, attempts have been ongoing at various levels.
• There were efforts to get institutions overseas to recognise the peculiar challenge of caste.
• The caste system of inequality and oppression is unique to the Indian subcontinent.
• It is naturally recognised by the Constitution of India.
• But in California, the Cisco case is a potential game-changer.
• The lack of having caste as an explicit category has made the prosecutors to keep the issue of caste within protections of religion, race, and ancestry.
• So the present case is expected to set a precedent.
• It will open the door for more such civil rights litigation.
• Silicon Valley, California has a global footprint.
• So, whatever is legislated there will have an impact on company workplaces in India and elsewhere too.
• The now widespread #BlackLivesMatter movement is spotlighting all kinds of discrimination.
• Amidst this, the case against Cisco becomes extremely significant.

India’s Trade Surplus

GS-Paper- 3 Economy TRADE

The Reserve Bank of India (RBI) has released India’s balance of payments data for the January-March quarter of 2019-20.

During this quarter, India has managed a current account surplus, which is around 0.1% of the GDP. This surplus is largely driven by a lower trade deficit.

Data from the Commerce Ministry show that between April and May 2020, India’s trade balance has improved. This surplus is due to the Invisibles, emanating mainly out of services exports and remittances. Due to this surplus, India’s substantial trade deficit turns into a moderate current account deficit.

Why does India mostly have a trade deficit?

• Inability to export more and import less can be held responsible. Lack of export dynamism in comparison with its East Asian neighbours.
• Large imports of oil, gold, and electronics have chronically inflated our import bills. Thus, any news of a reduction in trade deficit is greeted with an expectation that it may represent the dynamism of the Indian economy.

Current trends:

The World Trade Organisation’s (WTO) trade data show that the Covid crisis has had a severe impact on international trade. As the world went into lockdown, it severely affected economic activities everywhere.

Estimates by the WTO suggest that for the second quarter of 2020, global trade is likely to suffer a year?on?year drop of around 18.5%. [Second quarter of 2020 - A period when the lockdown was in place]

This is one of the steepest falls in international trade on record. Along with the lockdown, the WTO attributes this decline to the growing geopolitical and trade tensions.

What are the current trends in Indian trade?

• India’s trade also suffered. India’s merchandise trade has gone down in April 2020, before recovering in May. [Merchandise trade = Exports + Imports]
• Compared to May 2019, India’s total merchandise trade declined around 45% in May 2020. Merchandise exports declined by around 36.3%. Merchandise imports suffered a decline of more than 51%.

• An improvement in trade performance is seen in May 2020, compared to April 2020. However, it is possible that some of the increases in May are due to the release of held-up consignments at the ports.

What is the impact on trade in services?

• The impact on trade in services is much less severe. After all, services trade in India is dominated by IT/ITES exports, which are less susceptible to disruptions in logistics.
• When compared with January and February 2020, the average trade in services declined in April and May. As the Covid-19 crisis has led to a complete shutdown of some major service sectors like airlines, this moderate decline in services trade is a relief.

Overall, India’s trade balance in April and May 2020 has turned positive. However, this improvement in trade balance has been driven mainly by a sharper decline in imports. This is a warning sign for the economy, as the decline in imports points towards a contraction of demand in the real economy.

A decline in imports (May 2020) was led by a sharp decline in imports of gold, petroleum goods, coal, electronics and machineries. Declining petroleum prices and rising gold prices have affected the import patterns. The sharp decline in imports of fuel and machinery indicates a severe demand slowdown in the economy. Covid-19 is going to have a heavy toll on the economy.

Lithium

Lithium, a light element commonly used today in communication device technology. It was first produced in the Big Bang, around 13.7 billion years ago when the universe came into being, along with other elements. The present abundance of lithium in the universe is only four times the original (Big Bang) value.

It is actually destroyed in the stars. The Sun, for instance, has about a factor of 100 lower amount of lithium than the Earth.

Helium Flash in Stars

A forty-year-old puzzle regarding the production of lithium in stars has been solved by Indian researchers-BHARAT KUMAR. Stars, as per known mechanisms of evolution, actually destroy lithium as they evolve into red giants.

Planets were known to have more lithium than their stars as is the case with the Earth-Sun pair. However, leading to a contradiction, some stars were found that were lithium-rich.

When stars grow beyond their Red Giant stage into what is known as the Red Clump stage, they produce lithium in what is known as a Helium Flash and this is what enriches them with lithium.

Investing in Gold Bonds

GS-PAPER-3 Economics-Investment (PT-MAINS)

The fourth tranche of sovereign gold bonds 2020-21 is open for subscription.

Gold bonds:

The government introduced the gold bonds scheme in 2015. The scheme was introduced to wean away investors from the physical gold market. These bonds have a maturity period of eight years. But, the investors have the option to exit after the fifth year. Funds raised through such issuances form part of the government’s overall borrowings in a year.

What are the benefits of buying gold bonds?

• Gold bonds offer investors twin benefits of price appreciation along with a fixed 2.5% coupon per year. Interest earned on these gold bonds is added to the holders’ income. Interest earned on these bonds is taxed according to their slab rate.
• Any capital gains on these bonds at maturity are tax-free.
• This makes them far more attractive than owning physical gold. To offer greater liquidity, the bonds are listed on stock exchanges within a fortnight of issuance and can be traded. Gold bonds appear attractive when gold prices spike. This leads to greater investor interest in this asset class.

Why price rise??

Much before Covid-19’s impact led to a crash in global stock markets, gold prices had started their upward glide. The global spread of Covid-19 has raised concerns about global growth over the last three or four months.

Negative growth rates and fears of a global recession have pushed central banks and big investors to take shelter in gold. There is nearly 40% crash in benchmark equity indices in the US between February and March 2020. This has forced the US Federal Reserve to announce a record liquidity injection and bond-buying programme of more than $3 trillion.

In India why it has been rising!!!

• Since India mostly imports gold, the depreciation of the rupee with regard to the dollar makes gold costlier in India.
• Domestic factors such as concerns over the country’s fiscal health and a higher demand for gold also push up prices.
• In India, the RBI has cut policy rates by 115 basis points over the last three months and brought down the repo rate to 4%. [Repo rate - The rate at which the RBI lends to commercial banks]
• The RBI has also announced a liquidity injection in the economy. Any expansion in the paper currency tends to push up gold prices.

Will gold prices continue to rise???

Gold is an efficient tool to hedge against inflation and economic uncertainties. It is also more liquid when compared with real estate and many debt instruments. Generally, after any major economic crash and recession, gold prices continue their upward run. Market analysts feel that gold could overtake its previous peak of around $1,900 per ounce in the global market.

Can one invest now?

In India, there is a sharp decline in interest rates over the last year alongside high volatility in the equity markets. This has brought investors’ focus toward gold.

A cut in interest rates by the RBI has led to a decline in interest rates on small savings and term deposit rates of banks. SBI is currently offering an interest of 2.7% on savings bank deposits, and 5.4% on 5-10 year term deposits. Experts say that it makes good sense for investors to invest in gold.

Can the price of the gold crash?

• Given the economic uncertainty, gold would touch a new all-time high.
• In India, prices will be supported by any further weakness in the rupee.
• Key events that could stall the rise of gold are,
  1. Sudden sale of gold holdings by central banks to tide over the economic crisis,
  2. Crisis in other risk assets prompting investors to compensate for their losses through the sale of gold ETFs (Exchange Traded funds).

Gold Monetisation Scheme

In a move to revive the flagging Gold Monetisation Scheme, the Reserve Bank of India (RBI) has made it easier for depositors to hand over their holdings of Gold.

• RBI has liberalised the GMS, 2015, allowing depositors to directly deposit their bullion with either banks, refiners or Collection and Purity Testing Centres (CPTCs). Earlier, the Banks, CPTCs and Refineries had to sign a tripartite agreement for this.

Temples, High Networth Individuals (HNIs) and entities like fund houses, trusts and even government entities would now find it easier to deal directly with banks instead of CPTCs.

Gold Monetisation Scheme

• The scheme was launched in November 2015 along with sovereign gold bonds and India gold coins.
• It facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in the metal account, it starts earning interest on the same.
• Under the scheme, a depositor gets 2.25% interest annually for a short-term deposit of one year to three years. Medium- and long-term deposits get 2.5% interest rate.
• Objective: To mobilize the gold held by households and institutions in the country to put this gold into productive use and in the long run to reduce the current account deficit by reducing the country’s reliance on imports of gold to meet the domestic demand.
• Along with GMS, a Sovereign Gold Bond Scheme (an alternative to purchasing metal gold) and the development of Indian Gold Coin, were also announced.

• Banks may accept the deposit of gold at designated branches, especially from larger depositors.
• The RBI also further relaxed norms under the scheme by which banks, at their discretion, can allow the depositors to deposit their gold directly with the refiners.
  • This suits the temples also, as it is estimated that they may be holding around 4,000 tonnes of gold and are capable of depositing gold in tonnes under the scheme.
• Several depositors had earlier complained that banks are not taking an interest in accepting deposits under the GMS in many cities even from large depositors. Banks had hardly publicised that they run the GMS.
  • The RBI has stated that banks have to identify branches in all states and union territories where they can accept deposits.
  • All designated banks have now been mandated by the RBI to give adequate publicity to the scheme through their branches, websites and other channels.

Background

• The GMS scheme had been able to garner only 16 tonnes of gold as deposits in the last four years. This was large because of banks’ apathy towards it and also due to the practical difficulties of banks in dealing with collection-hallmarking centres.
• The current scheme mandates that customers have to first approach the CPTCs which are approved by the Bureau of Indian Standards.
• These centres had issued depositors purity certificates on gold deposited, and based on the centres’ certificates, a bank was supposed to open a deposit account and credit gold.
• CPTCs sent the gold to a refinery which gave the final purity certificate and converted the yellow metal into bars.

Zardoszi

Zardozi work is a type of embroidery predominant in India, Pakistan and Bangladesh. It is a type of heavy and elaborate metal embroidery on silk, satin, or velvet fabric base.

It was patronized by the Mughals that involves weaving metallic threads. Designs are often created using gold and silver threads and can incorporate pearls, beads, and precious stones. However, in recent times craftsmen make use of a combination of copper wire, with a golden or silver polish, and silk thread.

It is used as decoration for a wide range of applications, including clothes, household textiles, and animal trappings. Historically, it was used to adorn the walls of royal tents, scabbards, wall hangings and the paraphernalia of regal elephants and horses.

CAATSA

Countering America’s Adversaries through Sanctions Act (CAATSA), aims at taking punitive measures against Russia, Iran, and North Korea.

It was passed in the backdrop of Russia’s military intervention in Ukraine and its alleged meddling in the 2016 US presidential elections. It primarily deals with sanctions on the Russian oil and gas industry, defence and security sector, and financial institutions.

It empowers the US President to impose at least 5 of 12 listed sanctions enumerated in Section 235 on persons engaged in a “significant transaction” with the Russian defence and intelligence sectors. If implemented stringently, it would impact Indian defence procurement from Russia.

It would also affect purchase of spares, components, raw materials and other assistance. The bulk of India’s military equipment is of Soviet/Russian origin including the nuclear submarine

1. INS Chakra,
2. The kilo-class conventional submarine,
3. Supersonic Brahmos cruise missile,
4. MiG and Sukhoi fighters,
5. Mi helicopters,
6. Vikramaditya aircraft carrier.

USA’s Withdrawal from WHO

USA administration has formally notified the United Nations of its withdrawal from the World Health Organization. Although the pullout won’t take effect until next year, meaning it could be rescinded under a new administration if circumstances change.

The measure has been taken after USA’s disappointment with WHO’s response to the coronavirus pandemic and accused of bowing to Chinese influence. Under the terms of the withdrawal, the U.S. must meet its financial obligations to the WHO before it can be finalized.

The U.S., which is the agency’s largest donor and provides it with more than $400 million per year, currently owes the WHO some $200 million in current and past dues.

WHO

It is a UN agency responsible for global public health. It was founded in 1948 and is based in Geneva, Switzerland.

It aims to "promote health, keep the world safe and serve the vulnerable" It involves in vaccination campaigns, health emergencies and supporting countries in primary care. Funded by a combination of members' fees based on wealth and population and voluntary contributions.

CogX Awards

CogX is a prestigious Global Leadership Summit and Festival of AI and Emerging Technology held annually in London. The awards are given out to the best-of-the-best in AI and emerging technologies across the world.

MyGov is the world’s largest citizen engagement platform. It facilitates two-way communication between the Government and citizens and facilitates participatory governance in India.

MyGov, JioHaptik Technologies Limited and WhatsApp team collaborated to develop an AI-enabled MyGov Corona Helpdesk. AI-enabled MyGov Corona Helpdesk bagged two awards under the categories of Best Innovation for Covid-19 - Society and People’s Choice Covid-19 Overall Winner.

MSME Emergency Response Programme

World Bank and the Government of India signed an agreement for the MSME Emergency Response Programme. It involves $750 million loan from the International Bank for Reconstruction and Development (IBRD).

The loan has a maturity of 19 years including a 5-year grace period. The programme aims to support the increased flow of finance into the hands of MSMEs severely impacted by the COVID-19 crisis.

It will support the government in providing targeted guarantees to incentivize NBFCs and banks to continue lending to viable MSMEs to help sustain them through the crisis. It will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact and protect millions of jobs.

Sakteng Wildlife Sanctuary

Sakteng is based in Eastern Bhutan, or Trashigang Dzongkhag (district) which borders Arunachal Pradesh. It protects several endemic species including the eastern blue pine and the black-rumped magpie.

Bhutan’s foreign ministry has issued a demarche to the Chinese embassy for china’s claim over the Sakteng Wildlife sanctuary. The recent claim was made at the 58th meeting of the Global Environment Facility (GEF) Council, by trying to “oppose” funding to a project for sanctuary saying that it was “disputed” territory.

Bhutan’s western and middle sectors have been in dispute with China, they are

1. Jakarlung,
2. Pasamlung
3. Chumbi Valley.

However, the eastern sector has not been part of the boundary talks and China had not claimed rights over the Sakteng wildlife sanctuary earlier.

Global Environment Facility (GEF)

It is an international partnership of countries, international institutions, and civil society organizations that addresses global environmental issues. It was established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems.

GEF funds are available to develop countries and countries with economies in transition to meet the objectives of the international environmental conventions and agreements. The World Bank serves as the GEF Trustee, administering the GEF Trust Fund.

SDG Index

• SDG Index is prepared by teams of independent experts at the Sustainable Development Solutions Network (SDSN).
• The SDG index frames the implementation of 17 SDG goals among UN member states in terms of six broad transformations:

1. Education and skills,
2. Health and wellbeing,
3. Clean energy and industry,
4. Sustainable land use,
5. Sustainable cities,
6. Digital technologies.

• According to recent report, Sweden is placed at the top of the index with an overall score of 84.7.
• Among 193 countries for which the SDG index was prepared, India stands at the 117th position with an overall score of 61.92.
• In south Asia, Maldives is ranked at 91, Sri Lanka at 94, Nepal at 96 Bangladesh at 109 and Pakistan at 134.
• Bangladesh moves 7 places up in latest SDG index for year 2020, with a score of 63.5.
• Bangladesh has remained on track in achieving goals relating to poverty alleviation, quality education, decent work and economic growth and climate action.

Eulophia obtusa

After 100 years a rare orchid species Eulophia obtuse also known as the ground orchid has been rediscovered from Dudhwa Tiger Reserve. In India the species is listed as “critically endangered” in the IUCN Red List of endangered species.

The species was originally described from Uttarakhand in the 19th century, it was last recorded in Pilibhit in 1902. Later in 2008, the plant species was sighted in Bangladesh for the first time. It was under serious threat due to habitat loss and reduction in the number of mature individuals in Bangladesh.

Dudhwa Tiger Reserve

• It is a protected area in Uttar Pradesh.
• It shares the north-eastern boundary with Nepal, which is defined to a large extent by the Mohana River.
• The area is a vast alluvial floodplain traversed by numerous rivers and streams flowing in a south-easterly direction.
• In 1987, the Dudhwa National Park was brought under the purview of the ‘Project Tiger’ as Dudhwa Tiger Reserve.

Unlawful Activities Prevention Act (UAPA)

Unlawful Activities (Prevention) Act, 1967, extends to the whole of India. Any person, who commits an offence beyond India, which is punishable under this Act, shall be dealt with according to the provisions of this Act in the same manner as if such act had been committed in India.

• The provisions of this Act apply also to

1. Citizens of India outside India;
2. Persons in the service of the Government, wherever they may be; and
3. Persons on ships and aircrafts, registered in India, wherever they I may be.

In August 2019, the Central government had amended the Unlawful Activities (Prevention) Act, 1967 to include the provision of designating an individual as a terrorist. Prior to this amendment, only organizations could be designated as terrorist organizations.

Ministry of Home Affairs (MHA) recently designated nine individuals associated with Khalistani extremist organisations as terrorists under the provisions of the UAPA.