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Daily Current affairs 23 NOVEMBER 2018

UPSC - Daily Current Affair

[op-ed snap] Using Religion and Culture to Fight Terrorism – Lessons From the Philippine Military



Mains Paper 3: Internal Security | Security challenges & their management in border areas

From the UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Various strategies to combat terrorism across the world


The Phillipines sets a new example of counter-terrorism

  1. The Philippine government is recruiting Muslims into the military in an attempt to counter terrorism through a mixture of religious and security approaches
  2. The Philippines faces increasing security pressure since the rise of the Maute, a terrorist group affiliated with IS (Islamic State), in Marawi city
  3. Aside from the threat of IS-affiliated terrorist groups, the Philippines is also still dealing with the local pirate group Abu Sayyaf
  4. The group hijacks and abducts the crews of foreign ships for exorbitant ransoms, which could be used to fund their other terrorist activities

Religion and Culture as Tools to Resist

  1. The effort to eradicate terrorism is a global agenda
  2. Governments generally use a military approach. In reality, this is not enough
  3. Governments must employ alternative approaches, such as using religion and culture, to confront violent extremism
  4. Indonesia has implemented deradicalisation programs to tame terrorists
  5. This method involves the communities and families of former terrorist convicts who have been reformed
  6. To reach out to millennials, the Indonesian government has also recruited young internet users with huge social media followings to spread the message of peace

Positive and negative impacts of special Muslim units

  • Positives
  1. It could create more room for dialogue when compared with conventional military manoeuvres
  2. With Muslim members, this special unit can be more sensitive to religious and cultural needs
  3. It could garner support from local communities
  4. Having a Muslim unit operate in a Muslim majority area will hopefully reduce suspicion in local communities towards the Philippines’ military deployments
  5. At the same time, this can be a counter-narrative to the local view that military deployment by the government is a form of invasion
  • Negatives
  1. It could create factions or disparities within the military between the Muslim unit and other units
  2. There have been plenty of cases in various countries such as Turkey and Myanmar that show how the military can be fragmented when different factions are hostile to each other
  3. If a spirit of nationalism isn’t properly planted, the special Muslim unit could actually pose a new problem for the Philippines
  4. Instead of making the process for peace easier, it could actually act as new fuel for a conflict that has long been there
  5. Such an approach might actually create a stigma that Muslim terrorists must be fought against by equally hardline Muslims soldiers
  6. These days, Islam is often regarded as a religion or faith that is steeped in a violence
  7. If this newly established special Muslim unit is not managed properly, the stigma could actually worsen

Lessons for other countries

  1. With limited military strength, the government is able to devise an alternative strategy to ruin the foundation of extremism
  2. At the same time, the government is reducing the potential conflict with local communities and building the Philippines’ military image within Southeast Asia
  3. Other countries can learn plenty of lessons from how the Philippines combats extremism, from operational strategies and fieldwork technicalities, to how to comprehensively handle perpetrators and the psychological impact of terrorism on society

Curated from the article: Using religion and culture to fight terrorism: lessons from the Philippine military

Internal Security Trends and Incidents

[op-ed snap] Rethinking the CRA regulatory framework



Mains Paper 3: Economy | Mobilization of resources

From the UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Need for better regulation of CRAs to maintain investor confidence in Indian markets


New CRA framework by SEBI

  1. The Securities and Exchange Board of India (SEBI), in its continued effort to improve the functioning of credit rating agencies (CRAs), has come up with a fresh set of guidelines for enhanced disclosures on rating rationales
  2. SEBI has been actively trying to enhance regulations pertaining to CRAs, particularly post-2012
  3. The alleged slippage of India CRAs is a more recent phenomenon despite them having been around since 1990

Issuer pays model is the global norm

  1. The general criticism of ‘issuer pays’ model as the crux of CRA performance may be missing the complexity of the matter
  2. Globally, this model goes back to the 1970s
  3. As such, the evaluated-pays-the-evaluator model is not unique to CRAs
  4. Auditors and universities follow the same model

Need of principle-based approach by SEBI

  1. Sebi’s regulatory approach to CRAs has been more inclined to a rule-based approach as opposed to a principle-based approach
  2. Under a principle-based approach, the regulator states the desired outcome, leaving it to the regulated firms to figure out the steps they need to take to achieve the regulator-mandated end-state
  3. In a rule-based approach, the regulator specifies the action to be taken by the firms to be considered compliant

Firms prefer the rule-based approach

  1. Rule-based regulations, despite their appearance of regulatory micro-management, tend to be preferred by firms relative to principle-based regulations
  2. Firms prefer less ambiguity associated with the rule-based approach
  3. Additionally, they are relieved of the burden of proof of being compliant, as may be required in a principle-based approach

Risks from the rule-based approach

  1. Rule-based regulations assume a high degree of technical sophistication on the part of the regulator
  2. Besides, the regulator needs to have a well-articulated end objective
  3. This is different from having rules in response to a specific crisis since there is always a risk that the end objective becomes unclear if not non-existent
  4. It leaves the system exposed to more risks

Some steps that SEBI can take

  • Quantitative disclosure
  1. Rules should be such that they do not commoditize the CRAs’ offerings since the divergence of views/approaches across CRAs is critical for any well-functioning system
  2. The CRA may be required to publish the median values of the critical ratio of their choice, for a specific industry, across various rating levels and for the last five years
  3. This will allow an investor to compare whether the current rating is more or less stringent, and whether, over the period, the CRA’s standards have been consistent
  4. The objectivity and transparency of this numerical disclosure will go a long way towards building confidence in a rating
  • Enhanced transition matrix
  1. The transition matrix should track default rates over multiple years. Investors need to know the default rate of AAA/AA/A ratings over three to five years from issuance, and not just one year
  2. Withdrawn ratings should also be a category, and defaults occurring within one year of the rating being withdrawn should be included in the default study
  3. SEBI may consider independently calculating the default transition matrix by accessing data from a commercial credit bureau or Reserve Bank of India’s central repository of information on large credits database and not depend on the CRAs at all
  • Cursory disclosure of all ratings
  1. CRAs may be required to also summarily refer in the press release to the outstanding ratings of other CRAs for the same borrower and the previously withdrawn rating of the same borrower from other CRAs and the reason for the rating withdrawal
  2. The palpable reputation risk that errant CRAs will face may go a long way towards preventing rating shopping
  • Legal protection for CRAs
  1. Instances of Indian CRAs being sued by the company it rates, in a bid to prevent the rating downgrade, are not unknown
  2. The regulator should consider framing laws that allow CRAs to express their rating opinion without fear of being sued

Way forward

  1. If SEBI adopts a higher dose of principle-based regulations, it may set specific end-objectives
  2. For CRAs, it may be best to act and function in a way that the market’s faith in the quality of ratings is maintained
  3. This faith, in turn, will facilitate the development of the Indian bond market
  4. While SEBI may not suddenly turn to the principle-based approach, it may still achieve the end objective by fine-tuning its latest, well-intentioned guidelines

Capital Markets: Challenges and Developments

[op-ed snap] Making commodity options work for farmers



Mains Paper 3: Agriculture | Issues related to direct & indirect farm subsidies & minimum support prices

From the UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: The flaws in options trading instruments introduced in India and the need for American styled market development


Options trading for commodities introduced in India

  1. Recently introduced options trading instruments on commodity trading platforms are expected to be low-risk hedging tools for traders and farmers while helping improve overall growth in trading volumes in the derivatives market
  2. However, the type of options contracts introduced are European in style, which allows “right to exercise” only on the day of expiry
  3. This is strikingly at variance compared with options contracts traded on global commodity exchanges, which are American in nature, allowing an option holder to exercise his right to buy or sell the underlying commodity instrument anytime during the option’s life term

Flaws and their effects

  1. The distant month contracts are not well integrated with spot market prices, leaving farmers with price forecasts for only one month
  2. But crops sown in India are of longer duration
  3. For instance, in Punjab and Haryana, wheat sowing starts in October and harvest commences in April, meaning farmers need at least five to six month of active futures month contracts with fairly high volumes in September/October itself so that they can have reliable price forecasts
  4. For processors, too, having advance price forecasts helps in the better planning of procurement and sales operations, while reducing uncertainty in income

How does price volatility work?

  1. The volatility of the underlying asset price, which helps in measuring the speed of achieving a certain targeted price, is a key factor in deciding premium values for options contracts
  2. When volatility is high, options premiums are relatively expensive as there is a high chance of underlying asset prices going through the exercise price; and when volatility is low, options premiums are relatively cheap

Impact on futures contracts

  1. Commodity prices that are determined by the pure interaction of supply-demand dynamics can exhibit different levels of volatility in different years due to differences in supply-demand balances
  2. Inter-annual volatility may also differ due to seasonal differences in supplies and demand, which might cause different commodity futures contracts even within a calendar year to have different volatility levels
  3. Once an investor decides to buy or write an option on a futures contract, he may need to have an appropriate, volume-driven volatility value to arrive at a premium price for the option, which can be calculated if we have enough high-volume traded data for that particular futures contract
  4. However, due to the short life of existing futures contracts, appropriate premiums values may not be calculated

Way forward for India

  1. Introduction of long-maturity futures contracts, with a life anywhere between 24 and 36 months, and eliminating all contracts that face expiry during the respective crop growing season while reducing total contracts to less than four per commodity per calendar year may help
  2. It is American options that provide greater flexibility to farmers, processors and other hedgers who need to take long-term risk decisions, by allowing the early exercise of option contracts
  3. American options are also found to better reflect market conditions like high volatility in underlying asset prices, the requirement of a longer duration for the maturity of the contracts, compared with


India, Pakistan commit to Kartarpur corridor



Mains Paper 2: IR | India & its neighborhood- relations

From the UPSC perspective, the following things are important:

Prelims level: Kartarpur Sahib (Location, importance)

Mains level: India-Pakistan Cultural Relations


Kartarpur Sahib Corridor

  1. India and Pakistan exchanged letters committing to build the required infrastructure for visa-free direct travel by Indian Sikh pilgrims to Pakistan’s Kartarpur Sahib Gurdwara.
  2. This has been done to allow them to mark the 550th Birth Anniversary of Guru Nanak Dev in November 2019.
  3. In a rare sign of concord between the two countries, the letters were exchanged on the same day.

Inception of the Proposed Corridor

  1. The Kartarpur Sahib corridor was first proposed in 1999 when former PM Vajpayee took a bus ride to Lahore.
  2. He raised a long-standing demand from the Sikh community for easy access to the revered shrine across the border where Guru Nanak spent the last 18 years of his life.

Work to begin soon

  1. India proposed building a passage for the pilgrims accessible “365 days and 24 hours.
  2. Officials from India and Pakistan will meet soon to discuss the logistics of the corridor and point of border crossing.
  3. The pilgrims will traverse on the Indian side from Dera Guru Nanak Dev in Gurdaspur district directly to the border and from the Pakistani side of the border directly to Kartarpur Darbar Sahib Gurdwara.

Foreign Policy Watch: India-Pakistan

Manipur Sangai Festival



Mains Paper 3: Environment | Conservation, environmental pollution and degradation, environmental impact assessment

From UPSC perspectives, the following things are important

Prelims Level: Sangai Deer and its habitat

Mains Level: Promoting eco-tourism in North East India


Manipur Sangai Festival 2018

  1. The ‘Manipur Sangai Festival’, the biggest tourism festival of the state was recently inaugurated in Imphal.
  2. This year’s festival is going to create history as it is being organised at three venues of both hill and valley districts including Imphal, Mao and Keibul Lamjao for the first time.
  3. Altogether, 99 stalls from 10 foreign countries and 112 for India will be opened during the festival.
  4. Many foreign dignitaries, including 100 delegates from Myanmar will also be attending the 10 days long grand event.

About the Festival

  1. Sangai festival is an annual cultural festival organised by Manipur Tourism Department every year from November 21 to 30.
  2. The Tourism Festival, since 2010 has been renamed as the Sangai Festival as Sangai is the state animal of Manipur.
  3. Homage is paid to this shy and gentle Brow-Antlered Deer which is found only in the state’s floating Keibul Lamjao National Park in Loktak Lake.
  4. The festival showcases tourism potential of Manipur in field of arts & culture, handloom, handicrafts, indigenous sports, cuisine, music and adventure sports of the state etc.
  5. The tourism festival promotes Manipur as a world class destination.
  6. Noted sites associated with the festival:
  • Mao
  • Ukhrul
  • Lamboikhongnangkhong, Uripok
  • Keibul Lamjao
  • Khuman Lampak
  • Hapta Kangjeibung.

Sangai Deer

  1. The sangai is an endemic and endangered subspecies of brow-antlered deer found only in Manipur, India.
  2. IUCN status: Endangered
  3. The brow-antlered deer or the dancing deer is found in its natural habitat only at Keibul Lamjao National Park over the floating biomass locally called “phumdi” in the south eastern part of Loktak Lake.
  4. Phumdis are the floating mass of entangled vegetation formed by the accumulation of organic debris and biomass with soil. Its thickness varies from few centimeters to two meters.
  5. The humus of phumdi is black in color and very spongy with large number of pores. It floats with 4/5 part under water.

Tourism Sector

[pib] India gets UN Environment award for combating transboundary environmental crime



Mains Paper 3: Environment | Conservation, environmental pollution and degradation, environmental impact assessment

From UPSC perspective, the following things are important:

Prelims level: Elephant corridors in India

Mains level: Legal protection of Elephant Corridors and their habitats


  • UN Environment has awarded Wildlife Crime Control Bureau (WCCB), Ministry of Environment with Asia Environment Enforcement Awards, 2018 for excellent work done in combating transboundary environmental crime.

About the Award

  1. The Asia Environment Enforcement Awards publicly recognize and celebrate excellence in enforcement by government officials and institutions/teams combating transboundary environmental crime in Asia.
  2. The awards are given to outstanding individuals and/or government organizations/teams that demonstrate excellence and leadership in enforcement of national laws to combat transboundary environmental crime.
  3. The award was decided upon by a selection panel set up by the UN Environment and this is the second time in a row the awards are being given by UN Environment to India.

Wildlife Crime Database Management System

  1. WCCB has adopted innovative enforcement techniques that have dramatically increased enforcement of transboundary environmental crimes in India.
  2. It has developed an online Wildlife Crime Database Management System to get real time data in order to help analyze trends in crime and devise effective measures to prevent and detect wildlife crimes across India.
  3. This system has been successfully used to analyse trends, helping put in preventive measures as well as for successfully carrying out operations such as Operation SAVE KURMA, THUNDERBIRD, WILDNET, LESKNOW, BIRBIL, THUNDERSTORM, LESKNOW-II.
  4. It has also helped enforcement agencies in the arrest of 350 wildlife criminals and huge seizures of animal body parts and skins.
  5. In order to involve the public in the fight against wildlife crime, WCCB has also developed a scheme to enroll willing persons as WCCB Volunteers.


Wildlife Crime Control Bureau

  1. Wildlife Crime Control Bureau is a statutory multi-disciplinary body established by the Government of India under the MoEFCC, to combat organized wildlife crime in the country.
  2. The Bureau has its headquarter in New Delhi and five regional offices at Delhi, Kolkata, Mumbai, Chennai and Jabalpur; three sub-regional offices at Guwahati, Amritsar and Cochin; and five border units at Ramanathapuram, Gorakhpur, Motihari, Nathula and Moreh.
  3. Under Section 38 (Z) of the Wild Life (Protection) Act, 1972, it is mandated:
  • to collect and collate intelligence related to organized wildlife crime activities and
  • to disseminate the same to State and other enforcement agencies for immediate action so as to apprehend the criminals;
  • to establish a centralized wildlife crime data bank;
  • co-ordinate actions by various agencies in connection with the enforcement of the provisions of the Act;
  • assist foreign authorities and international organization concerned to facilitate co-ordination and universal action for wildlife crime control;
  • capacity building of the wildlife crime enforcement agencies for scientific and professional investigation into wildlife crimes and assist State Governments to ensure success in prosecutions related to wildlife crimes; and
  • advise the Government of India on issues relating to wildlife crimes having national and international ramifications, relevant policy and laws.
  1. It also assists and advises the Customs authorities in inspection of the consignments of flora & fauna as per the provisions of Wild Life Protection Act, CITES and EXIM Policy governing such an item.


Wildlife Conservation Efforts

[pib] ACROSS Scheme



Mains Paper 3: Environment | Conservation, environmental pollution and degradation, environmental impact assessment

From UPSC perspective, the following things are important:

Prelims level: ACROSS Scheme

Mains level: Impact of the ACROSS Scheme


  • The Cabinet Committee has approved continuation of the nine sub-schemes of the umbrella scheme “Atmosphere & Climate Research-Modelling Observing Systems & Services (ACROSS)” during 2017-2020.


  1. The Ministry of Earth Sciences has a mandate to carry out research and development activities to develop and improve capability to forecast weather, climate and natural hazard related phenomena.
  2. Towards this direction, MoES has taken several initiatives to formulate specific schemes like weather and climate modelling, monsoon-research, climate change science & climate services etc.
  3. These schemes involve multi-institutes wherein each unit has a designated role for accomplishing the aforesaid tasks.
  4. As a result, all these schemes with specific objectives and budget are implemented in an integrated manner and are put together under the umbrella scheme “ACROSS”.

 ACROSS Scheme

  1. ACROSS scheme pertains to the atmospheric science programs of the Ministry of Earth Sciences (MoES).
  2. It addresses different aspects of weather and climate services, which includes warnings for cyclone, storm surges, heat waves, thunderstorms etc.
  3. Each of these aspects is incorporated as nine sub-schemes under the umbrella scheme “ACROSS” and is implemented in an integrated.
  4. The ACROSS scheme consists of nine sub-programmes which are multi disciplinary and multi institutional in nature and will be implemented in an integrated manner.
  5. As the objective of the ACROSS scheme is to provide a reliable weather and climate forecast for betterment of society, the scheme will aim at improving skill of weather and climate forecast through sustained observations, intensive R & D.

Benefits of the Scheme

  1. The scheme will   provide  improved  weather,   climate  and   ocean   forecast  and services, thereby ensuring transfer of commensurate benefits to the various services.
  2. A sizable number of scientific and technical staff along with requisite administrative support, thereby generating employment.
  3. To ensure last-mile connectivity of the weather based services to the end -user, a large number of agencies like the Krishi Vigyana Kendras of ICAR, Universities and local municipalities are roped in thus generating employment opportunities to many people.

[pib] Cabinet approves the Allied and Healthcare Professions Bill, 2018



Mains Paper 2: Governance | Issues relating to development & management of Social Sector/Services relating to Health, Education, Human Resources

From UPSC perspective, the following things are important:

Prelims level: Allied and Healthcare Professions Bill, 2018

Mains level: Importance of Healthcare Professionals in India


  • The Union Cabinet has approved the Allied and Healthcare Professions Bill, 2018 for regulation and standardization of education and services by allied and healthcare professionals.


  1. Our health system is highly focused on efforts towards strengthening limited categories of professionals such as doctors, nurses and frontline workers (like ASHAs, Auxiliary Nurse Midwife or ANMs).
  2. In the current state of healthcare system, there exist many allied and healthcare professionals, who remain unidentified, unregulated and underutilized.
  3. However, numerous others have been identified over the years, whose potential can be utilised to improve and increase the access to quality driven services in the rural and hard to reach areas.
  4. Allied and Healthcare Professionals (A&HPs) can reduce the cost of care and dramatically improve the accessibility to quality driven healthcare services.

Why such a Bill?

  1. Most of Indian institutions offering AHPs courses lack standardization compared to global standards.
  2. Majority of the countries worldwide, have a statutory licensing or regulatory body that is authorised to license and certify the qualifications and competence of such professionals.
  3. Though such professionals have existed in India healthcare system for many decades there is a lack of acomprehensive regulatory framework and absence of standards for education and training of AHPs.
  4. The Bill thus seeks to establish a robust regulatory framework which will play the role of a standard-setter and regulator for Allied and Healthcare professions.

Allied and Healthcare Professions Bill, 2018

  1. The Bill provides for setting up of an Allied and Healthcare Council of India and corresponding State Allied and Healthcare Councils.
  2. These councils will play the role of a standard-setter and facilitator for professions of Allied and Healthcare.

Provisions of the Bill

  1. The Bill provides for Structure, Constitution, Composition and Functions of the Central Council and State Councils,   e.g.   Framing  policies  and standards, Regulation of professional conduct, Creation and maintenance of live Registers etc.
  2. The Bill will also have an overriding effect on any other existing law for any of the covered professions.
  3. The State Council will undertake recognition of allied and healthcare institutions.
  4. Offences and Penalties clause have been included in the Bill to check mal­practices.
  5. The Bill also empowers the Central and State Governments to make rules.
  6. Central Govt. also has the power to issue directions to the Council, tomake regulations and to add or amend the schedule.

 Composition of the Councils

  1. The Central Council will comprise 47 members, of which 14 members shall be ex-officio representing diverse and related roles and functions and remaining 33 shall be non-ex-officio members who mainly represent the 15 professional categories.
  2. The State Councils are also envisioned to mirror the Central Council, comprising 7 ex-officio and 21 non-ex officio members and Chairperson to be elected from amongst the non-ex officio members.
  3. Professional Advisory Bodies under Central and State Councils will examine issues independently and provide recommendations relating to specific recognised categories.

Major Impact

The Bill aims:

  1. To bring all existing allied and healthcare professionals on board during the first few of years from the date of establishment of the Council.
  2. To provide opportunity to create qualified, highly skilled and competent jobs in healthcare by enabling professionalism of the allied and healthcare workforce.
  3. To bring in high quality, multi-disciplinary care in line with the vision of Ayushman Bharat, moving away from a ‘doctor led’ model to a ‘care accessible and team based’ model.
  4. Opportunity to cater to the global demand (shortage) of healthcare workforce which is projected to be about 15 million by the year 2030, asper the WHO Global Workforce, 2030 report.

Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

[op-ed snap] Barriers to Indian firms achieving high growth



Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy & their effects on industrial growth

From the UPSC perspective, the following things are important:

Prelims level: World Bank, OECD, Economic survey statistics

Mains level: The potential of HGFs in India and reforms required for their growth


World Bank report on Indian industries

  1. India’s business landscape poses myriad growth and productivity questions
  2. The dominance of the informal sector and micro and small enterprises mean that much of the economy is off the books
  3. Sectoral and job creation policies must consequently deal with many variables that are difficult to pin down
  4. And then there is the dwarf enterprise syndrome—small companies that do not grow in time but remain stunted
  5. A new World Bank report, High-Growth Firms: Fact, Fiction and Policy Options for Emerging Economies, sheds light on many of these issues

High growth firms in India

  1.  The Organization for Economic Co-operation and Development defines high-growth firms (HGFs) as those that employ more than 10 workers, with employment growing at an average annual rate of 20% or more over at least three consecutive years
  2. This is a fairly high bar in the Indian economic landscape
  3. The sixth economic census, released in 2016, showed that 131.29 million people were employed in 58.5 million enterprises
  4. That means the pool of HGFs is small indeed
  5. The report finds that for the emerging economies it examines, HGFs account for 8-22% of the total number of firms; India falls somewhere near the middle with 14.3%
  6. The interesting—and troubling—aspect is just how heavily disproportionate HGFs’ contribution to output growth is
  7. Across the economies in question, this can range from 49% to a massive 83%
  8. India fares relatively well, coming in at the lower bound of that bracket

Challenges to HGFs

  • First, while HGFs don’t appear to have much horizontal s pillover, they do have vertical spillovers
  1. This means they affect upstream and downstream enterprises positively
  2. When small, informal enterprises and large, formal enterprises are able to integrate effectively in supply chains, the barriers that the former face in achieving high productivity growth are lowered
  3.  Given their smaller balance sheets and less scope for accessing credit, micro, small and medium enterprises (MSMEs) depend to a large extent on timely cash payments from the large companies they supply to in order to function effectively
  4. It often doesn’t work out this way
  5. Given their poorer bargaining power and the costs of using the legislation for tackling delayed payments—the MSME Development Act, 2006—micro and small enterprises frequently face inordinate delays in receiving payments
  6. And goods and services tax kinks related to input tax credit are further complicating the picture
  • HGF is something of a misnomer in that firms rarely exhibit such growth across their lifetimes but, rather, exhibit episodes of such growth
  1. Older, more established firms with resources to burn are not more likely to experience such episodes
  2. Quite the reverse; in both manufacturing and services, age has a negative association with firm growth
  3. Thus, a market that enables churn is important
  4. Unfortunately, among other considerations, factor market distortions—specifically, land misallocation, which is the most distortionary—make such churn difficult
  5. Such misallocation has a dual effect. It enables crony capitalism and political subsidies, allowing inefficient firms to rise to the top of the pile
  6. And it contributes to the credit squeeze small enterprises face since land is the primary form of collateral used in business loans
  • The report shows that “the relationship between various measures of innovation and the probability of experiencing a high-growth event is generally positive”
  1. High-growth events in manufacturing and services are driven by persistent rather than occasional R&D (research and