 Good evening friends. Welcome to the Hindu News Analysis by Shankarayesh Academy. Displayed here are the list of news articles we will be going through today. Before getting into the discussion, I have an important announcement to make. The batch 4 of pre-storming test series by Shankarayesh Academy is about to start on 16th December. Register to this program and boost your prelim score. Now let's start the discussion. Look at this news article. Yesterday, a 7-judge constitution bench of the Supreme Court pronounced a judgment on arbitration agreements. Here note that arbitration is a way of resolving a dispute without going to court. The arbitration process involves the arbitrator who facilitates the dispute resolution between two disputing parties. With the help of arbitrators, the dispute is settled between the two parties without going to court. Upon dispute resolution, an agreement is signed by two parties in order to comply with the decision arrived upon arbitration. This agreement is called an arbitration agreement. Generally, any agreements have to be stamped. This is because only the stamped agreement is admissible as evidence in a court of law. The Stamp Act of India also says that unstamped or insufficiently stamped agreement is inadmissible as an evidence. Now coming to the Supreme Court judgment. Last April, in a case, the Supreme Court held that an arbitration agreement is void and not enforceable in law if the agreement is unstamped or insufficiently stamped. This decision was appealed in the Supreme Court. So yesterday, a seven-judge bench pronounced a judgment. The Supreme Court declared that agreements that are not stamped or insufficiently stamped are not void. The court added that it is a curable defect in the law. So the court said that non-stamping or improper stamping does not result in invalidation of the arbitration agreement. This is about the news article given here. In this context in our discussion today, let us understand some points about Alternate Dispute Resolution Mechanism. We will also see some forms of Alternative Dispute Resolution Mechanism. First, let us start with the basics. What is an Alternative Dispute Resolution Mechanism? Alternative Dispute Resolution or ADR refers to the method of resolving a dispute without a court trail. The ADR is seen as an alternative for litigation in the courts. To put it in simple words, the ADR is a means of settling a dispute without going to court. The process involved in ADR are generally confidential, less formal and less stressful than traditional court proceedings. So the ADR results in creative solution, long-lasting outcomes and greater satisfaction and improved relationship between the disputing parties. Apart from this, the ADR saves the money for court trail and speeds up the settlement process. This is all about the ADR mechanism or the Alternative Dispute Resolution Mechanism. Moving forward, let us see the different forms of ADR. See, there are actually different forms of ADR such as arbitration, conciliation, mediation, low-codalate and negotiation. So, first in our discussion, let us take up arbitration. Under this mechanism, the dispute is submitted to an arbitral court or an arbitral tribunal. A neutral person in the tribunal called an arbitrator hears the agreement and evidence from each side. After that, the outcomes would be decided. Although it resembles a courtroom settlement, it involves less procedure than in the court. Here note that the decision made in the arbitral tribunal is mostly binding on the parties and there is no right to appeal. But in some rare cases, the court may allow for an appeal. This is all about arbitration. Moving on, let us take up conciliation. See, in this type, the disputed parties will study the issue with the help of a conciliator or a neutral third person. After analyzing the issue, they will arrive at a mutual settlement. In this method, mostly the conciliators investigate the issue and he will draft a report. Based on this report, the settlement would be arrived at. However, this report made by the conciliator is not binding on the parties. Moving on, let us see about mediation. Under this mechanism, a dispute is taken to a neutral mediator. The mediator helps to settle the dispute between the parties. Here note that the mediator will not decide the case, but instead he will just help the parties in reaching an agreement. So, in the mediation process, the final decision is made by the parties and not the mediator. Moving forward, let us see the negotiation process. In this type, the disputed parties will settle the disputes among themselves with or without the aid of the third person or a negotiator. Even if a negotiator is involved, his role is often limited in the negotiation process. Bargaining is a common feature of the negotiation process. Negotiation is much less formal than other type of alternate dispute resolution and allows for a lot of flexibility. Finally, let us take up Lok Adalat. Lok Adalat, which is otherwise called People's Court, is a unique system which is developed in India. The Lok Adalat serves as a forum to arrive at a settlement on disputes or cases pending in a court or cases at the pre-litigation stage. In India, the Lok Adalats are provided with statutory recognition under the Legal Services Authorities Act of 1987. As per this Act, the award or the decision made by the Lok Adalat is deemed to be an order of the civil court. Also note that the decision of the Lok Adalat is final and binding on the parties. However, in some cases, if the parties are not satisfied with the decision, they are free to initiate a litigation by approaching the court. Also note that the order given by the Lok Adalat is final and there is no right to appeal on the order given by the Lok Adalat in the Lok Adalat. These are some points about different forms of alternative dispute resolution mechanism. And that's all regarding this discussion. In this discussion, we saw the basics about ADR mechanism and different forms of ADR mechanism. Now let us conclude this discussion and take up the next news article. Look at this editorial article. In this article, the author tries to trace the evolution of India's foreign policy in relation to Israel and Palestine. He gives us various examples of India's strategic stand and how it aligned with the broad goal of international peace and stability. Moreover, the author criticizes the change made to India's foreign policy by the present-day government. This is about the article given here. In our discussion today, we will try and write a main sanser related to India's foreign policy with the help of the points given in the article. Now let's start. First look at this question. Let me read out the question. What does the concept of strategic autonomy entail? Why did India adopt strategic autonomy as a cornerstone of its foreign policy? Offer examples showcasing instances where India's foreign policy has emphasized strategic autonomy. This question falls into GS paper too. Now how should we approach the question? See, this is a well-structured question. Firstly, it asks us to explain about the concept of strategic autonomy. In the second part, it asks us to analyze why despite various hiccups, India follows this policy. Moreover, we should also give examples of this policy. This should be the skeleton of your answer. Now let's start answering. Let's start with the introduction. In the introduction part, we shall briefly explain about the concept of strategic autonomy. First of all, strategic autonomy is the ability of a state or a country to pursue its own national interest independently. It also means preferring a foreign policy without being constrained by other countries. To put it in simple words, strategic autonomy relates to formulating our own strategic path rather than pressurized by the collective interest of other countries. The advantage of this policy is that it would enable a country to resist any external pressures to change its stand or policies. India is actively pursuing this policy in the international relations. This can be your introduction. Now coming to the body of the answer. In the body part, we should give justification for India's continued perseverance with the policy. Firstly, the historical reasons. See, after 200 years of a colonial rule, the newly independent India opted not to surrender its freedom to make decision. So, India did not align with either of the major powers during the Cold War era. It is due to this reason, the strategic autonomy principle began to shape India's foreign policy. This eventually led to the birth of the non-aligned movement. That is, having a equidistant from both the superpowers which is US and the USSR. Secondly, India as a developing power cannot afford to lose cooperation with either of the superpowers. This is why India is always stressing on a multipolar cooperation. Thirdly, this policy has provided an independent voice for India in the global arena. For example, when the United Nations voted in 1947 to partition the former British Mandate territory of Palestine into two states, that is, Israel and Palestine, India voted against it. At the same time, India became the first non-arrab country to recognize the Palestine Liberation Organization in 1974 and recognize the Palestine State in 1988. More recently, India followed strategic autonomy by abstaining from the United Nations General Assembly resolution which calls for an immediate lose in Gaza. Why India did this means the resolution failed to condemn the terror attacks in Israel. On the other hand, India voiced for the humanitarian pass in the valley and sent it to Gaza. This shows that India is balancing the humanitarian issues and the fight against terrorism. It also shows that through the policy of strategic autonomy, India is having a unique independent voice in the global arena. The fourth reason why India continued to pursue this policy is the raising aspirations of our country. See, India is following this policy as it is aligned with India's economic growth and security. Let us see some example in this record. See, even though India is a strong advocate of ending war between Russia and Ukraine, India also defended its own economic and energy security interest by purchasing cheaper Russian oil. India's imports from Russia rose by 64% during the last fiscal year. This shows the economic gain with this policy. Similarly, India got waiver under the Russia of USA to import S-400 Triumph missile defence system from Russia which is vital for India's security interest. This is the fourth reason. Fifthly, India is not following the strategic autonomy policy as a monolith. India is constantly following the strategic flexibility of the policy. For example, India refused to join the RCEP trade agreement. But when aligning with the policy, India is advocating for a more free trade and bilateral agreement to maximise the benefits. For example, India recently signed FTA with UAE and Australia. See, recently the policy of strategic autonomy got updated by India to incorporate the current geopolitical trends. Firstly, India is not following multi-alignment approach combined with the rising multi-polar world with a diversified supply chain of growth. For example, India chaired both the SEO and the G20 in 2023. This showed how India is a partner for both the camps of the world. Secondly, India reversed its historical stand of hypernation of ties with Israel and Palestine. Now, India is following a dehyphenation approach of separately engaging with both Israel and Palestine. Thirdly, India is following an issue-based cooperation to the country's irrespective of whether they are our allies or not. See, all these points could be in your body of the answer. Now, having completed the main body of the answer, let us take up the conclusion part. The conclusion part can be like this. See, even though many challenges to the policy of strategic autonomy, India is actively pursuing this policy and balancing the national interest with the global peace and humanity. Moving forward, India needs to balance the ideals of our nation and real politics to become a superpower in the near future. This can be in your conclusion part. And that's all regarding this discussion. Through this discussion, we understood what is strategic autonomy. We also saw why India adopted strategic autonomy. Then we saw recent examples that highlights India's strategic autonomy policy. Finally, we saw what India can do in the future to become a superpower. That is all regarding this discussion. Now, let us conclude this discussion and take up the next news article. Look at this news article. This news article talks about the International Monetary Fund. IMF has recently transferred nearly $337 million to Sri Lanka under its extended fund facility. EFF is given to countries facing medium-term BOP problems to address their structural weaknesses. This is about the news article given here. So in our discussion, let us understand in detail about the IMF. See, the International Monetary Fund or IMF was established in 1944. It was established to oversee the stability of the world's monetary system. It works to achieve sustainable growth and prosperity to all of its 190 member countries. It promotes financial stability and monetary cooperation among its member countries. Currently, IMF is governed and accountable to those 190 member countries. See, the IMF has three critical missions. First is furthering international monetary cooperation. Second is encouraging the expansion of trade and economic growth. And the third one is discouraging policies that would harm the global prosperity. To fulfill these missions, IMF member countries work with each other and with other international bodies. Apart from this, IMF provides policy advisors and provides for capacity development through technical assistance and training. IMF also provides financial assistance to its member countries. There is a non-concessional account maintained by the IMF called the General Resource Account. All IMF member countries are eligible to borrow from the General Resources Account at a market-based interest rate. There is another account called the Poverty Reduction and Growth Trust. The low-income countries can borrow at concessional rate from this account. Okay, unlike development banks like the World Bank, IMF does not lend for a specific project. Instead, IMF provides financial support to countries hit by economic crisis. This is all about IMF. There are two terms in relation to IMF from which prelims questions can be asked. The terms being reserve transportation and the special drawing rates. First, let us take up reserve transportation. Every IMF member has a quota allotted to them. Here, quota is somewhat analogous to membership fee. The quota of each country depends on the country's economic might. Let us assume India wants to become a member of IMF. Let us assume the IMF quota for India is 100 million US dollars. Of the 100 million US dollars, India must provide 25%, which is 25 million US dollars in hard currency, preferably US dollars. The remaining 75% which comes to 75 million US dollars in our example can be paid in an equivalent local currency, which is Indian rupee. The 75 million US dollars is roughly equivalent to 600 crore rupees. So, to become a member of IMF, India must pay IMF 25 million US dollars and 600 crore rupees. This 25 million US dollars that India pays to the IMF is called the reserve tranche. The remaining 75% of the quota that India pays as 600 crores is called the credit tranche. India can access the 25 million reserve tranche at any time from the IMF for any reason without paying any interest. But to access the credit tranche, India must pay interest and must adhere to the conditions proposed by the IMF. So, basically, IMF members can access the reserve tranche at any time without agreeing to any condition or paying a service fee. In other words, a portion of the member country's quota can be withdrawn free of charge at their own discretion. However, if the credit tranche is not being sought by the member nation, exceeds its reserve tranche position, then it becomes the credit tranche. Credit tranche, like a loan, should be repaid in 3 years with the interest. In addition to this, to access the credit tranche, IMFs will impose some condition. This is all about the reserve tranche position. Now, moving on to special drawing rights. See, this is an international reserve asset created by the IMF to supplement the official reserves of its member countries. It is an interest-peering international reserve asset created in 1969. The IMF denominates its member's quotas in terms of SDRs. The value of SDR is determined by a basket of major world currencies. This basket helps make SDR a global and widely accepted form of international money. As of March 2022, the basket of currencies for SDR include US dollars, Euro, Chinese rennambi, Japanese yen and British pound. Member countries can use the SDR to supplement their official reserve, settle international transaction, or even exchange them for other currencies if needed. So, it provides a way for the countries to have a reserve that is not tied to the currency of a single nation. Remember, the value of the SDR is set daily by the IMF. The valuation basket is reviewed and adjusted every five years. This is all about SDR and that is all regarding this discussion. In this discussion, we covered the basics about IMF, reserve tranche position, and the special drawing rights. Now, let us conclude this discussion and take up the next news article. Look at this news article. Recently, the United States and the European Union imposed countervailing duties on four Indian products. The US imposed countervailing duties on three products such as paper file, aluminium sheets and forged steel blocks. Whereas, the EU imposed countervailing duties on certain graphite electrode system. The US and the EU are alleging that India is providing more subsidies for export of these four products. The US and the EU says that this practice is affecting their domestic industries. This is why they imposed a countervailing duty. This is about the news article given here. In this discussion, let us understand some points about countervailing duty and we will also see how it is different from anti-dumping duty. Let us start with countervailing duty. The countervailing duty is a tariff levied on imported goods. It is levied to neutralize the negative effects of export subsidies given to the producers in the originating country of goods. The countervailing duty is imposed to protect the domestic producers. For example, let us take India and China. Let us say both the countries are producing aluminium sheets. Let us assume that one ten of aluminium sheet produced in India will come to around Rs.10,000. Let us assume China also produces aluminium sheets. In normal condition, if one plans to import Chinese made aluminium sheets to India, the cost will come around Rs.11,000 per ton. But China is providing more export subsidies to its aluminium producers. Due to this, the price of the aluminium sheets produced in China when imported to India has come down to Rs.9000. Now what happens in this situation? The industries in India would prefer the imported Chinese aluminium sheets because of their lower price rather than preferring domestically produced aluminium sheets. So, the domestic producers of aluminium sheets in India will suffer a huge loss. This may result in factory closures and may cause huge job losses. So, to protect the domestic industries, Indian government levies an additional import tariff on the subsidised Chinese aluminium sheets in the name of counter wheeling duty. As a result, the price of the imported Chinese aluminium sheets will increase and the Indian industries will start to prefer the domestically produced aluminium sheets. This safeguards the domestic industries from the negative effects of export subsidies. To put it in simple words, the counter wheeling duty is imposed in order to counter the negative effects of export subsidies provided by another nation. I hope you have a clear understanding about counter wheeling duties now. See, the World Trade Organization considers export subsidies as an unfair trade practice. So, the WTO has enacted an agreement called the Agreement on Subsidies and Counter wheeling measures. This agreement contains detailed procedures. The procedures mentioned about the circumstances under which counter wheeling duties can be imposed by an importing nation. This is all about counter wheeling duty. Now, let us see how the counter wheeling duty is different from the anti-dumping duty. As we saw just now, the counter wheeling duty is imposed in order to counter the negative impacts of the export subsidy. If you take anti-dumping duty, anti-dumping duty is imposed to imported products that are priced below the fair market value. The anti-dumping duties are levied to protect the domestic industries from the damage caused by the dumping of low-priced goods in the market. Both counter wheeling duty and anti-dumping duty serves the similar purpose, but the main difference lies with its objective. The counter wheeling duty is levied on imported goods to neutralize the negative effects of export subsidies given to the producers by the originating country where the anti-dumping duty is imposed on imported products that are priced below the fair market value. Both these measures are aimed at safeguarding the domestic industries. So, the aim is same, but the objective is different. Now, I hope you understand the difference between counter wheeling duty and anti-dumping duty. And that's all in this discussion. With this, we have come to the end of the news article discussion session. Now, let us take up the practice prelims questions. We have three practice prelims questions today. Let us see the moon by one. Let us take up the first question. Let me read the question. With reference to Lok Adalits, which of the following statements are correct? Look at the first statement. Lok Adalits have the jurisdiction to settle matters at pre-litigative stage and not those matters pending before any court. This statement is incorrect because Lok Adalits have the jurisdiction to settle both the matters at the pre-litigative stage and matters pending before any court. So, statement one is incorrect. Moving on to the second statement, Lok Adalits can deal with matters which are civil and not criminal in nature. This statement is also incorrect. All cases of civil and criminal nature can be compromised and settled in Lok Adalits. Moving on to the third statement, every Lok Adalit consists of either serving or retired judicial officers and not any other person. This statement is incorrect because the Lok Adalit consists of a judicial officer as the chairman, a lawyer and a social worker as members. So, all the three statements given here are incorrect. So, the correct answer is option D. None of the statements given above is correct. Moving on to the second question. The balance of payments of a country is a systemic record of. See, the correct answer here is option A. The balance of payment of a country is a systemic record of all important export transactions of a country during a given period of time, preferably a year. So, answer is option A. Moving on to the last question. Here, three statements are given, we have to find how many of the statements given here are correct. Here, three statements about the monetary fund is given. We have to find how many of the statements given here are correct. Look at the first statement. It was established to ensure exchange rate stability and eliminate exchange restriction. This statement is correct. These two are some of the main aim of IMF. Moving on to the second statement. It provides financial support at zero interest rates through the poverty reduction and growth trust. This statement is correct because in our discussion we saw that IMF provides non-concessional loans through the general resource account to normal countries. It also provides concession loan through the poverty reduction and growth trust to developing and least developed countries. So, statement two is correct. Moving on to the third statement. Unlike development banks, the IMF does not lend for specific projects. This also we saw in the discussion. The third statement given here is also correct. IMF does not lend for specific products. So, since all the statements given here are correct, the correct answer here is option C, all three. And with this, we have come to the end of the discussion. If you like today's video, like, comment and share it with your friends. For more updates regarding UPSC preparation, subscribe to Shankarayesh Academy's YouTube channel. Thank you for listening.