Synopsis and Review-Think and Learn [Day 17]

Archives-Think and Learn-Mains 2015

Synopsis and Review – Think and Learn [Day 17]

GS 1) To what extent did the Sykes-Picot Line of international boundaries shape the history of Middle East in the post WW-I era? Discuss.

If there is one single moment, in the history of the Middle-East crisis, that could be pin-pointed for the start of the crisis, then it is this – The Sykes-Picot Agreement. With just this one unfulfilled agreement, the Middle East boiled and the crisis hasnt stopped yet.

a) Arabs started distrusting the West forever, after this backstab.

b) Jews and Arab wars had their starting point here. Israel-Palestine conflict still continues to this day.

c) The division of the whole Arab land in straight lines, without understanding the tribes, Shia, Sunni, Kurdish ethnicities etc., divided in arbitrarily. This made the Kurds not have a nation for themselves, but were distributed in all the countries, making them minorities in every nation. This has caused for intense internal fighting, which still affects the Middle East.

If this one single agreement was not made, and if it was not contradictory, then the whole of Middle East would have been a much better place. That is why, this is extremely important to understand.

Today’s Top Answer is written by – Sepoy no. 1446

Ans) Skyes-Picot agreement took place in 1916 between Britain and France. It was a secret agreement to divide Arabia between these two countries with assent of Russia.The agreement was a deception to both Arabs and Jews belonging to this area.

The allied powers were getting reverses in War with the Ottoman Empire. They wanted Arabs and Jews support to win the war as well as establish their influence in the middle east. MacMohan-Husseein correspondence promised Arabs of an independent state,while Balfour declaration accepted Jews demand of a separate homeland.These contradictory assurances became more complicated when Russia made the secret deal public after her 1917 revolution.Thus Skyes-Picot agreement never formalized.

Nonetheless it was an important event in history of Middle east.It influenced subsequent history in following ways:

1.Paris peace conference divided middle east on more or less similar lines to Skyes-Picot agreement, and made some ethnic groups such as Kurds nationless.

2.Earlier Arabs were sympathetic to Jews cause which got a dent after these secret agreements.

3.As per treaty of Sevres Britain got Israel similar to what was allocated under Skyes-Picot agreement.This conflicted zone has become sore of middle east because of Israel-Palestine conflict.

The dynamics of middle east changed after Skyes-Picot agreement.This agreement helped in institutionalizing Arab-Israel mistrust and Anti-west feeling.This had led to a series of conflict in this zone since then.

GS 2) With respect to RTI Act 2005, discuss the composition, powers and functions of Information Commissions in India.

Straight forward question where just enumeration of the composition, powers and functions of the ICs is enough.

Today’s Top Answer is written by – Aditi

Ans) Central Information Commission was established under the Right To Information Act 2005, so it is a statutory, non constitutional and independent body.

Composition

A Chief information officer and not more than 10 information officer, appointed by President of India on recommendation from Prime minister, Leader of opposition and a union cabinet minister (nominated by PM).

They should be the person of eminence public life but shouldn’t be the member of parliament and state legislature of any state or union territory.

Functions

Its the duty of the commission to receive and inquire into complaints of any person :

– Who has not been able to request information due to the non appointment of Public Information officer (PIO) by the authorities.

– Who has not got the response within specified time period.

– Who has received incomplete, false or misleading information.

– Who has been refuse to provide information and any such matter of dissatisfaction.

Powers

-Commission has power of civil court while inquiring into complaint.

-It has access to all public records.

-It has power to secure compliance of its decision from the public authorities.

However only Official and unclassified information is available under RTI ( Information of government disposal can be categorized as Top secret, secret, confidential,official, unclassified).

GS 3) What do you understand by Debentures? Differentiate debentures from shares. And explain how they are regulated in the Indian Financial Sector.

Straight forward definition, differences and regulation measures.

Today’s Top Answer is written by – Aemmy

Ans) Debts/Debentures are the borrowings by a company used for raising capital with a liability to repay the loan along with regular interests while shares offer partnership in return for capital.

Differences between debentures and shares:

1. Ownership: Debenture holders (DHs) are creditors to the company while Shareholders (SHs) are owners of the company.

2. Company Management : SHs have right to participate in company’s management while DHs do not.

3. Income: DHs receive fixed interests as income while SHs receives variable company’s

profit.

4. Repayment: Share capital does not need to be returned while debentures are to be returned after maturity.

5. Risk and gain: Shares are more risky but more profitable, while debentures are safe but comparatively less profitable.

6. Liquidation: DHs are given priority during liquidation while SHs is paid only after all

liabilities have been paid off.

Because each type of financing has its own appeal, companies utilize both to their best advantages.

Regulation of Indian Financial Sector

1) SEBI- Through registration, rules, issuance of code of conduct and guidelines to intermediaries. It also conducts inquiry and audits.

2) RBI- By issuing guidelines to the banks .

3) Companies Act: Regulates incorporation or dissolution of company, establishes responsibilities of company and its director.

4) FSLRC: Its recommendation on Indian Financial code, unified financial agency for integrated supervision and FSAT for hearing appeals will allow better market supervision.