1. Myanmar joins North Korea and Iran in the Financial Action Task Force black listed countries
Tags: Economy/Finance International News
The international Money laundering and terrorist financing watchdog Financial Action Task Force (FATF) has put Myanmar on the "black list" and has called on members to apply enhanced due diligence to business relations and transactions in Myanmar. Myanmar joins the ranks of Iran and North Korea who are already in the Black list of the FATF.
Money laundering is a process where the money generated through criminal activities like smuggling ,organised crime etc is integrated with the legal financial system so as to hide the origin of these money.
FATF‘s Grey or Black list
Countries which has weak anti -laundering and anti-terrorist regulatory frameworks are put into Grey list. It basically warns the country to improve its anti-money laundering system.
Black List
Countries which refuse to act and refuse to take concrete steps to combat money laundering are put in High-Risk Jurisdictions subject to a Call for Action or black list. Currently Iran, North Korea and Myanmar are in the list.
Implications for Myanmar
It will become extremely difficult for Myanmar to secure loans from international financial institutions like International Monetary Fund, World Bank, Asian Development Banks.
Foreign investors and financial institutions will avoid dealing with Myanmar and its financial institutions like banks.
The cost of doing business with international customers will increase for Myanmar which will adversely affect its trade and investment.
Credit rating agencies will downgrade Myanmar’s rating which will raise the cost of borrowing for Myanmar's companies and banks in the international market. It means they will have to pay very high interest rates to borrow money.
FATF
The Financial Action Task Force was set up in 1989 on the recommendation of the Group of 7 Countries.
Function of FATF
- The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
- The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
- The FATF reviews money laundering and terrorist financing techniques and continuously strengthens its standards to address new risks, such as the regulation of virtual assets.
- India’s anti Money laundering law Prevention of Money Laundering Act (PMLA) 2002 is modelled on the standards of FATF.
- Total member countries of FATF is at present 39.
- India became a member in 2010.
Headquarters: Paris, France
President: T Raja Kumar (Singapore national)
2. PM Modi launches Rozgar Mela to provide 10 lakh jobs by the Central government and its department
Tags: Economy/Finance National News
Prime Minister Narendra Modi launched Rozgar Mela on 22 October 2022 virtually, to provide 10 lakhs jobs in the coming months. The Prime Minister said that keeping in mind the 75 years of independence, the central government is giving appointment letters to 75,000 youngsters under a programme.
During the ceremony, appointment letters were handed over to 75,000 newly inducted appointees. These new recruits will join 38 ministries/departments of the central governments.
The appointees will join the government at various levels viz. Group – A, Group – B (Gazetted), Group – B (Non-Gazetted) and Group – C. The posts on which appointments are being made include Central Armed Force Personnel, Sub Inspector, Constable, LDC, Steno, PA, Income Tax Inspectors, and MTS among others.
The Prime Minister said that keeping in mind the 75 years of independence, the central government is giving appointment letters to 75,000 youngsters under a programme.
3. PM launches Mission DefSpace for Armed Forces
Tags: Defence National News
Realising the economic and strategic potential of global space, Prime Minister Narendra Modi on 19 October launched “Mission DefSpace” for developing innovative solutions for the Armed Forces.
Important facts
The mission is launched for developing innovative solutions for the Armed Forces.
The Prime Minister also released the fourth Defence Indigenization List, which prohibits the import of 101 items after a certain time limit.
Under Mission DefSpace, 75 challenges in the space sector have been identified for private firms to work on.
Space technology is shaping new definitions of India's liberal space diplomacy and giving rise to new possibilities.
There are more than 60 developing countries with whom India is sharing its space science. The South Asia satellite is an effective example of this.
Fourth defence indigenisation list
As part of efforts to boost the domestic defence industry and defence exports, the Ministry of Defence has released a positive indigenization list.
It pays special attention to the equipment/systems which are being developed and which are likely to be converted into solid orders in the next five to ten years.
The Ministry of Defence had earlier released the first, second and third positive indigenization list, which consisted of 310 items.
What is a positive indigenization list?
A positive indigenization list means that the armed forces will procure the listed items only from domestic manufacturers.
Manufacturers can be private sector players or Defence Public Sector Undertakings (DPSUs).
Govt Initiatives for indigenisation in defence sector
The Foreign Direct Investment (FDI) limit under the automatic route in the defence sector has been increased from 49% to 74%.
In October 2021, the government dissolved the four-decade-old Ordnance Factory Board (OFB) and merged 41 factories of seven new state-owned companies to manufacture defence hardware ranging from munitions to heavy weapons and vehicles.
India has inaugurated two defence industrial corridors, one in Tamil Nadu and the other in Uttar Pradesh, to promote the flagship "Make in India" programme.
According to an estimate, the Indian Armed Forces are projected to spend around USD 130 billion in capital procurement over the next five years.
4. Pakistan out of FATF's grey list after 4 years
Tags: International News
Financial Action Task Force (FATF) on 21 October excluded Pakistan from the 'grey list' of the global watchdog on terror financing and money laundering after four years.
Important facts
A meeting of the Financial Action Task Force, a Paris-based organization that monitors terrorist funding and money laundering cases, was held in Paris, in which the final decision was taken whether to keep Pakistan in the gray list or not.
After the meeting, Pakistan was announced to be out of the grey list. India has expressed strong opposition to this decision and termed it as an unfortunate decision.
Pakistan needed 12 votes out of 39 to exit the grey list and move to white list.
To avoid the blacklist, it needed the support of three countries, China, Turkey and Malaysia, which are its supporters.
Pakistan was put on the 'Grey List' in 2018 for its failure to investigate the risk of money laundering, leading to corruption and terror financing.
With Pakistan remaining on the grey list, it became difficult for Islamabad to get financial aid from the IMF, the World Bank, the Asian Development Bank (ADB) and the European Union, thus adding to the problems for the cash-starved country.
Financial Action Task Force (FATF)
It was formed in the year 1989 at the meeting of G-7 countries held in Paris.
It works to generate the necessary political will to bring about legislative and regulatory reforms in the world on issues like money laundering, terror funding.
Headquarters - Located in the headquarters of the Organisation for the Development of Economic Co-operation (OECD) in Paris.
Member Countries - 39 member countries including India and 2 regional organisations (European Commission and Gulf Cooperation Council).
India became a member of FATF in the year 2010.
Its sessions are held three times a year.
- Financial Action Task Force (FATF) President - Raja Kumar
List of FATF
Gray List – Countries that are considered safe havens for supporting terror funding and money laundering are placed on the FATF gray list.
Black List - Countries identified as non-cooperative countries or regions are included in the black list. These countries support terrorist funding and money laundering activities.
Iran and the Democratic People's Republic of Korea (DPRK) are currently on the Black List.
5. World Bank to launch ‘Business climate sturdy’ which will replace the discontinued Ease of Doing Business report
Tags: Economy/Finance International News
The World Bank has said that it will launch a new system for assessing the business and investment climate in economies worldwide following the discontinuation of the Ease of Doing Business report. The report titled Business Enabling Environment” (BEE) is expected to be launched in April 2024.
The Ease of Doing Business report which was first published by the World Bank in 2003 titled “Doing Business” report. The report ranked the country on their business friendly environment by about 12 indicators.
The report which was annually published by the World Bank was discontinued in September 2021 after a data rigging scandal came to light.
An internal audit of the World Bank revealed data irregularities in reports on China, Saudi Arabia, the United Arab Emirates and Azerbaijan in the 2018 and 2020 editions.
Subsequently, the Bank decided to come out with a new system that would be far more robust and credible than the earlier one. Hence it will come out with “Business Enabling Environment’.
India has performed very well on the Ease of Doing Business Index. It improved by 79 ranks to record 63rd positions in 2019 , according to the last Bank’s Doing Business report 2020.
Other Important World Bank reports
- World Development Report
- Global Economic Prospect
President of World Bank: David Malpass
6. Global Leaders Commit US$ 2.6 Billion At World Health Summit To End Polio
Tags: Summits National News
Global leaders announced USD 2.6 billion funding for the 'Global Polio Eradication Initiative' (GPEI) 2022-2026 strategy to eradicate polio at the World Health Summit in Berlin.
World Health Summit (WHS)
It is an international health conference.
It aims to strengthen exchanges, promote innovative solutions to health challenges, establish global health as a major political issue, and promote dialogue on global health in the spirit of the United Nations Sustainable Development Goals.
What is Polio?
Polio is a potentially fatal viral infectious disease that affects the nervous system.
There are three types of polio virus-
Wild Polio Virus 1 (WPV1)
Wild Polio Virus 2 (WPV2)
Wild Polio Virus 3 (WPV3)
All three types are similar depending on the symptoms and can cause paralysis and death.
The virus spreads from person to person mainly through the 'faecal-oral route' or through contaminated water or food.
7. Chad's President Mahamat Idriss Deby declares state of emergency
Tags: International News
The President of the Central African country, Chad, Mahamat Idriss Deby, declared a state of emergency on October 19, 2022 as the country struggles to deal with extraordinary floods that have affected millions of people.
Important facts
Heavy floods in the Central African country are affecting 636 localities in 18 of its 23 regions.
Thousands of people are migrating due to floods and thousands of hectares of cultivable land are getting destroyed.
The government has put in place a response plan to provide shelter, food and sanitation.
Chad's two main rivers, the Chari and the Logon, which flow through its southern provinces, are at their peak.
About Chad
President - Mahamat Idriss Déby
Prime Minister - Albert Pahimi Padacké
Capital - N’Djamena
According to the United Nations Human Development Index, Chad is the third poorest country on the planet.
The United Nations has said that some 5.5 million people in the country are in need of emergency humanitarian aid.
According to the World Bank, 42 percent of Chad's 16 million population live in poverty.
8. NSIC Signs MoU with Phillips Machine Tools India Pvt Ltd
Tags: Economy/Finance National News
A MoU signed between the National Small Industries Corporation Ltd (NSIC) and Phillips Machine Tools India Pvt Ltd for Skill Development Training in Additive Technologies on October 18, 2022 in New Delhi.
Important facts
B B Swain, Secretary (MSME), Gaurang Dixit, CMD, NSIC and Mercy Epao, Joint Secretary (SME) were also present on the occasion.
The MoU was signed by Navin Chopra, CGM-SG (Tech), NSIC.
This MoU will be a significant step for preparing skilled manpower in additive technologies which is the future of manufacturing.
National Small Industries Corporation
It is an ISO certified Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME).
NSIC is working to promote, assist and promote the development of Micro, Small and Medium Enterprises in the country.
NSIC works through a countrywide network of offices and technical centres in the country.
9. Liz Truss becomes the shortest serving Britain’s Prime Minister as she announces resignation
Tags: Person in news International News
Elizabeth Truss popularly known as Liz Truss announced on 20 October 2022 that she would resign as British Prime Minister, just six weeks after being sworn in as the Prime Minister on 6 September 2022. She became the shortest-serving Prime Minister (44 days) in the British history.
She lost the support of her party and the people over her economic plans that led to the sharp fall in the value of the British pound, crashed the bond market, pushed up cost of living for voters and angered her own party members.
Speaking outside the door of her Number 10 Downing Street office, Truss accepted that she had lost the faith of her party and said she would step down next week. Number 10 Downing Street is the official residence of the British prime Minister.
The ruling Conservative Party which has a comfortable majority in the Parliament will elect a new leader by 28 October 2022.
The former finance minister Rishi Sunak is likely to contest the election. But many people are supporting former Prime Minister Boris Johnson, who was ousted in July when his ministers resigned en masse to force him out of power.
10. Inauguration of Waste to Energy Plant at Tughlakabad, Delhi
Tags: National National News
Home Minister Amit Shah on 20 October, 2022 inaugurated MCD's Tehkhand Waste to Energy Plant at Tughlakabad in New Delhi.
Important facts
This plant will treat 2000 metric tonnes of waste in the national capital per day.
Along with this 5 megawatts of green energy will also be produced by this plant.
It is a multifunctional, multi-purpose plant that will clean the capital Delhi and fulfil Prime Minister Narendra Modi's vision of Swachh Bharat Mission.
This plant has been built in collaboration with Municipal Corporation of Delhi and Jindal Group.
Electricity will be generated from the waste in the plant, along with the work of making manure from the waste will also be done.
What is Waste to Energy?
It is the process of generating energy in the form of electricity or heat from the primary treatment of waste into a fuel source.
These plants convert municipal and industrial solid waste into electricity and heat for industrial processing.
The plant works by burning waste at high temperatures and using the heat to make steam.
