20 January 2025 : The Hindu Editorial Analysis

1. A surge in radical governments, the hope of democracy

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – International Relations

Context

The article discusses global patterns of legitimizing radical Islamic groups after they seize power – highlighting implications for Afghanistan, Syria, and Bangladesh.

Afghanistan in 2021: The Taliban’s Takeover

• The Taliban captured power in Afghanistan on August 15, 2021. A suicide attack by the Islamic State killed 13 U.S. troops, and $7.1 billion worth of U.S. weaponry was left behind.
• Despite the Taliban’s controversial history, countries like the U.S., China, and Russia engaged with them, justifying it as a way to promote women’s rights and discourage terrorism.
• India, as the United Nations Security Council (UNSC) president in August 2021, influenced UNSC Resolution 2593 to ensure Afghan soil was not used for terrorism, particularly against India.
• The resolution also highlighted terrorist organizations like Lashkar-e-Taiba and Jaish-e-Mohammed.

Evolving World Engagement with the Taliban

• In December 2021, the UNSC allowed direct donor funding to the Taliban without demanding accountability.
• The Taliban later restricted women’s rights and denied inclusive governance, but global powers largely overlooked these developments.

Syria in 2024: A New Crisis

• In 2024, Abu Muhammad al-Jolani, leader of the Hay’at Tahrir Al-Sham (HTS), seized power in Syria, toppling President Bashar al-Assad.
• Despite his past as an al Qaeda leader and HTS being listed as a terrorist organization, the U.S. and the West began supporting him.
• The U.S. removed a $10 million bounty on al-Jolani, showcasing a pattern of legitimizing groups after they seize power.

Growing Extremism in Bangladesh

• In Bangladesh, an interim military-led government under Muhammad Yunus has taken charge, reportedly tolerating Islamic radical groups.
• Groups like Ansarullah Bangla Team (ABT), Jamaat-e-Islami, and Hefazat-e-Islam are gaining influence, threatening minorities and fostering anti-India rhetoric.
• The military coup has provided a platform for extremist ideologies, reversing progress made under Sheikh Hasina’s government since 2008.

India’s Role and Concerns

• India supported Bangladesh during key moments, including the 2009 Bangladesh Rifles revolt, and has worked to strengthen bilateral ties over two decades.
• The rise of extremism in Bangladesh is a significant security concern for India, which must avoid falling into the trap of viewing the issue solely through a religious lens.
• India’s focus remains on protecting its bilateral relationship and ensuring stability in the region.

The Need for Caution

• Global trends indicate that capturing power legitimizes radical groups, as seen in Afghanistan, Syria, and potentially Bangladesh.
• For Bangladesh, reverting to an Islamic extremist regime would undo its democratic progress since 2008.
• The global community, especially India, must monitor and address the resurgence of extremism to safeguard regional security.

Conclusion

• The global trend of legitimizing radical groups post-power capture undermines democracy and stability.
• India must proactively address emerging threats, especially in neighboring Bangladesh, to safeguard regional security and its strategic interests.

Practice Question:  Examine the challenges posed by the legitimization of radical groups in global politics, with a focus on its implications for India’s security and foreign policy. (150 Words /10 marks)

2. Recasting insolvency resolution

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – Governance

Context

This article explains issues with India’s insolvency system, highlighting delays, lack of expertise, and reforms needed to improve efficiency.

Introduction to the IBC and Its Significance

• The Insolvency and Bankruptcy Code (IBC), 2016, is a major reform aimed at resolving insolvencies in a structured, time-bound manner.
• Initially, it enhanced India’s global business reputation by addressing the issues of bad loans and defaulters.
• However, as the law matured, challenges related to institutional capacity and procedural inefficiencies surfaced, particularly highlighted by the Supreme Court in the Jet Airways case.

Challenges in Institutional Framework

1. Burden on Tribunals:
   1. The National Company Law Tribunal (NCLT) and its appellate body, NCLAT, handle both insolvency cases under IBC and matters under the Companies Act.
   1. This dual role creates a significant backlog, slowing down resolutions.
2. Outdated Structure of NCLT:
   1. The NCLT’s structure, designed in 1999 and operationalised in 2016, is not suited for current economic demands.
   1. With only 63 sanctioned members, many working across multiple benches, the tribunal is ill-equipped to handle modern caseloads.
3. Inefficient Operations:
   1. Some NCLT benches do not function full working days or are engaged in handling cases from other benches.
   1. As a result, the average time for insolvency resolution rose to 716 days in FY2023-24, compared to 654 days in FY2022-23.

Deficiencies in Domain Expertise and Integrity

1. Lack of Domain Knowledge:
   1. Tribunal members often lack the expertise required for handling complex insolvency cases.
   1. The Supreme Court emphasized this in the Jet Airways case, highlighting the need for specialized knowledge.
2. Bureaucratic Challenges:
   1. There is no effective system for urgent listings, and registry staff have excessive discretion in managing cases.
   1. The Supreme Court noted instances of NCLT/NCLAT members defying its orders, threatening judicial integrity.

Procedural Inefficiencies

1. Mandatory Hearings:
   1. Requiring hearings for all applications, including progress reports, causes unnecessary delays.
2. Limited Use of Alternative Dispute Resolution:
   1. The system underutilizes alternative methods, adding strain to an already overburdened framework.

Proposed Solutions for Reform

1. Mandatory Mediation:
   1. Introducing mandatory mediation before insolvency applications could ease the burden on tribunals.
2. Specialized Benches:
   1. Creating specialized benches for different types of cases can improve efficiency and expertise.
3. Infrastructure and Staffing:
   1. Adequate courtrooms and qualified, permanent staff are essential for sustaining tribunal operations.
4. Hybrid Model:
   1. A hybrid approach combining judicial experience with domain expertise is needed for complex insolvency matters.

Conclusion

• India’s insolvency regime must move beyond debt resolution and serve as a driver of economic growth.
• Bold reforms in institutional capacity, procedural efficiency, and infrastructure are necessary to attract foreign investment and boost economic performance.

Practice Question:  Discuss the challenges faced by India’s Insolvency and Bankruptcy Code (IBC) in ensuring timely resolutions. Suggest measures for improving its institutional capacity and procedural efficiency.(250 Words /15 marks)

For more such UPSC-related The Hindu editorial analysis: –18 January 2025 : The Hindu Editorial Analysis