QUIZ – 2017: Insights Current Affairs Quiz, 28 June 2017

Solution: a.

Statement 3 is included in the Joint Statement, but it is nothing ‘unique’ or ‘different’ from the joint statements of the past.

• On Pakistan and terror: Titled “Shoulder-to-Shoulder Against Terrorism”, this paragraph makes an explicit reference to “cross-border terrorism” in a joint statement for the first time. “The leaders called on Pakistan to ensure that its territory is not used to launch terrorist attacks on other countries. They further called on Pakistan to expeditiously bring to justice the perpetrators of the 26/11 Mumbai, Pathankot, and other cross-border terrorist attacks perpetrated by Pakistan-based groups,” it says.
• China and Asia Pacific: In 2014, the two sides, for the first (and only) time, named South China Sea in the joint statement. This time, the statement uses the term “Indo-Pacific” for the first time, which is a more contemporary term than “Asia-Pacific”. It uses terms like “democratic stalwarts” and “responsible stewards” which are aimed at China, takes a common position against the China-Pakistan Economic Corridor and expresses reservations about the Belt and Road Initiative.

MEA: Joint Statement – Prosperity Through Partnership;

IE: What makes Modi-Trump’s joint statement different;

TH: Warm in Washington;

Solution: a

• Improvisation and In the news: A retired Lt. General who had commanded a corps in the area said, “Sikkim is a settled boundary barring the finger area in the plateau which came up during 2007.”
• From 2008 – Tip of Sikkim latest flashpoint: Referred to as the “Finger Area” by Indian armed forces, this territory falls north of Gyangyong in Sikkim and overlooks a strategically important valley known as the “Sora Funnel”. It contains several stone cairns, which are essentially heaps of stones that can be used for shelter. The area is in the northernmost tip of Sikkim, north of a place called Gyangyong, and appears like a protruding finger on the map — hence the name Finger Area.

Solution: c.

• Indian banks need to accept significant haircuts to resolve the NPA cases as several of them are in sectors where market conditions are in a slump, such as steel, power and textiles. The government will require immense political will to allow bankers to take the necessary haircuts (which will impact profitability negatively), without bankers fearing that their decisions will be questioned or investigated in the future. The tight resolution timelines envisaged under the IBC cannot be achieved if bankers do not have the commercial flexibility and the autonomy to sell distressed assets.
• Another issue not addressed by the recent regulatory changes is what role promoters play in delaying NPA resolution. The majority of businesses in India remain under the control of their founding promoters. Unlike more developed markets, in India, bankers cannot make significant management changes in distressed companies as promoters closely control key aspects of a business such as relationships with suppliers, customers and regulators. It becomes critical that promoters should agree to and be involved in any resolution process. However, the RBI does not regulate promoters and other shareholders, and hence cannot force resolutions on to them. Promoters understand this conundrum and have used it to their advantage in the past.
• Then there is the question of whether the institutional framework within which the NPAs will have to be resolved is ready to handle this complex task. The severe capacity constraints of the NCLT in handling the present and past backlog of cases is well recognised.

TH: Pieces of a complex solution;

Solution: b.

• The Java Sea to the south separates Borneo from the island of Java. The Makassar Strait separates Borneo from the island of Celebes (Sulawesi) to the east and southeast, and a series of shallow seas and straits lie between Borneo and the island of Sumatra to the west.
• Indonesia constitutes the largest political component of the island (in Indonesian, this area is known as ‘Kalimantan’). Along the northwest coast and northern tip lie two constituent states of Malaysia that are often collectively called East Malaysia, and between them is the Islamic sultanate of Brunei.

Improvisation: TH: The Marawi Siege (Second Paragraph);

Solution: c.

They assessed that this position is only expected to grow in the coming years as a result of developments in both India and Europe. In this context, India and the Netherlands have the intention to strengthen their cooperation in the field of mobility and migration.

TH: Netherlands backs India’s UNSC and NSG bids;

MEA: India-Netherlands Joint Communique;

Solution: b