9 PM Daily Current Affairs Brief – July 19th, 2022

Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 1

• India to become most populous nation by 2023: Reading the figures

GS Paper 2

• Lessons on navigating the evolving geopolitics in the Middle East
• The win-win potential of India’s partnership with African nations – on African Continental Free Trade Area
• Preparing for the presidency – On Assuming G20 Presidency
• Sharing power with the next generations
• The case for a portable safety net for migrants
• Fresh urgency on pension reforms
• Unsayable in the House – On issue of unparliamentary words

GS Paper 3

• Four-day work week: The five-day work week might be fading away
• Climate change-induced disasters: India’s climate imperative
• Centre must welcome Chin refugees with open arms, Mizoram is already doing so
• Zombies of the West

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 1

India to become most populous nation by 2023: Reading the figures

News: The earlier UN reports in the middle of the Nineties projected that India’s population will be 1.53 billion in 2050 and maintained this till the first decade of the 21st century. But the latest United Nations report, “Population Prospects” forecasts that India will surpass China’s population by 2023.

What are some key insights into India’s population?

Population stabilisation: National Population Policy envisages that India’s population will stabilise in 2045. But, scholars and organisations have predicted that population stabilisation will take place below 1.6 billion by the mid-50s.

Distribution of the population by age: This plays a significant part in shaping future development dynamics. India’s large segments comprise the young and elderly, whose engagement in gainful economic activities is minimal. This shows India’s dependency ratios are high.

Dependency ratio: The World Bank data also shows that during 1960-2021, the dependency ratio declined from 75% to 55% globally. For India, the Bank has reported a figure of 48% in 2021. The latest PLFS survey has estimated the dependency ratio as much lower, at 44.3% only. The dependency tends to go up systematically till 2100.

What is the link between dependency ratio and economic development?

Lower dependency implies an economic advantage to a nation. For instance, an economically active population produces dividends leading to intergenerational income transfers.

But the dependency ratio based on age structure alone can be misleading when a substantial portion of the working-age population is not economically active or in subsistence employment.

In the age group 15 to 64, India has just 55% reporting any kind of employment in India. Hence, India needs to find decent work for the working-age population, particularly women and socially marginalised groups.

GS Paper 2

Lessons on navigating the evolving geopolitics in the Middle East

Context: Joe Biden’s recent trip to the Middle East highlights some new trends that are reshaping the region. India should consider these new trends and take lessons in its engagement with the region.

What are the new trends that are reshaping the geopolitics of the Middle East?

First, it was a common belief among the liberals now that US will now separate itself from the messy politics of the Middle East. This belief was strengthened by the events like US exit from Afghanistan and expansion of hydrocarbon production in the US or energy independence of US from the Middle East. However, US has clarified that it “will not walk away and leave a vacuum to be filled by China, Russia, or Iran”.

Second, US is changing its pattern of engagement with the region. It is changing its role from the sole provider of regional security to helping its regional partners develop capabilities to secure themselves. For example, efforts are being made to develop Middle East Air Defence (MEAD) coalition involving the US, Israel, and some of the Arab nations. I2U2 (India-Israel-UAE-USA) Grouping is another example.

Third, Biden has modified the popular belief that the major contradiction in the world is the “conflict between democracies and autocracies.” It was necessary as the Middle East, in particular, is a place where ideologies come to die due to existing monarchies and autocracies.

Fourth, Biden’s attitude proves that “interests” generally tend to triumph over “values” in the conduct of foreign policy. During his election campaign, Biden vowed to isolate Saudi Arabia (SA) from the rest of the world, due to the killing of Jamal Khashoggi by Saudi agents. However, amidst the pressing need to cool down the global oil market and ease domestic inflation, Biden had to repair the relations with SA.

Fifth, Middle East is learning to put national interest above other identities such as ethnicity and religion. For example;

Normalisation of relations with Israel to counter the threat from Iran.

The contradiction between Arabs and Iran has emerged as a major fault line in the region, despite their shared Islamic identity.

Many Gulf kingdoms, including Saudi Arabia and the UAE, are now consciously promoting a national identity among their peoples. It is being done by celebrating “national days” and creating greater popular awareness of national histories and heritage.

Sixth, Israel in the past aligned with non-Arab Muslim states like Iran and Turkey to act against Arabs. However, now it is aligning with Arabs against Iran. Turkey, despite shared religious identities, undermined many of the Arab regimes recently. Whereas, Qatar is closer to non-Arab Turkey and in opposition to its Gulf Arab neighbors.

Thus, India should consider the complexity of the changing dynamics in the Middle East in framing its foreign policies for the region.

The win-win potential of India’s partnership with African nations – on African Continental Free Trade Area

News: The African Continental Free Trade Area (AfCFTA) has the potential to create the largest free trade area in the world, by geography.

India and Africa share a long and rich relationship. Our freedom movement became an inspiration for African nationalists in their desire for independence from colonialism. Now African Continental Free Trade Area (AfCFTA) will strengthen trade and investment relations between India and Africa.

India’s present engagement in developmental activities of Africa

India has already been involved in several developmental projects in Africa via concessional loans, grants, and capacity-building programs. It has played a significant role in Africa’s socio-economic development.

India’s cumulative investments in Africa stand at $70 billion.

Lines of Credit (LoCs) worth $12.26 billion have been extended to African countries.

193 projects have been completed and 66 are under execution. These projects related to oil and gas, mining, banking, pharma, textiles, the automotive sector, and agriculture.

Skill development and capacity building play a vital role in the empowerment of the youth and women. India has been engaged on this front as well. In 2017, under Indian Council for Cultural Relations, almost 50,000 scholarships had been granted to African students over five years. Indian Technical and Economic Cooperation program is assisting Africa in giving people opportunities to learn new skills and acquire knowledge through training programs.

What is the significance of the African Continental Free Trade Area (AfCFTA)?

AfCFTA provides a wide scope to create the largest free trade area in the world, by geography, and an opportunity to lift 30 million people out of extreme poverty.

It will create a single market for goods and services, thereby enabling a single market for goods and services, easy movement of persons, and promoting industrial development.

India can leverage the new opportunities presented by the AfCFTA. India can facilitate a digital transformation of Africa through innovation and the transfer of technology.

The 17th Confederation of Indian Industry Exim Bank Conclave on the India Africa Growth Partnership has marked the following priority areas to focus on:

Indian industries could align their efforts with the priority areas set by a free trade agreement. It will promote India-Africa bilateral trade and investment under AfCFTA.

There are opportunities in services trade with Africa in the fields of Information Technology (IT), Mobile payment solutions, banking, and financial services.

India’s success in manufacturing vaccines and pharmaceuticals, and advances in telemedicine, can open up new opportunities in the pharmaceuticals and the healthcare sector.

India is the world’s third-largest startup ecosystem. Thus, it could count on its strengths to fortify the digital infrastructure of an entire continent, thereby contributing to the achievement of the continent’s Agenda 2063.

The AfCFTA seeks to facilitate international supply chains for food, pharmaceuticals, and various other essential products. India can help in building important infrastructure for cross-border supply chains. It will help Indian industries to operate efficiently in Africa.

Women consist of 90% of Africa’s labor force in the informal sector, engaged mainly in education, healthcare, and tertiary services. Under the AfCFTA these women-oriented developmental sectors will get a boost. India’s efforts on this part would enhance its brand image across the continent as its economy emerges.

Preparing for the presidency – On Assuming G20 Presidency

News: India is going to take over the presidency of the Group of 20 (G20) nations from Indonesia in a few months.

India’s Group of 20 (G20) presidency comes amidst many challenges. Some challenges are the Russian invasion of Ukraine, inflation induced by consequent Western sanctions, and the effect of the pandemic is still prevalent. Furthermore, G20 is more divided due to freezing relations between Russia and Western nations.

However, it is still the only effective grouping. Thus, India needs to fully utilize this opportunity.

What are the challenges facing India in setting its G-20 agenda?

Generally, at this point in time, a president’s nation should be well-developed. However, India is still working on this part. Following are some issues:

1. Indian government functions with multiple silos that coordinate only afterward.
2. Just a few months before the summit, the G20 Sherpa role has been assigned to the outgoing chief executive officer of the NITI Aayog, by the Union commerce minister.
3. The finance track of the G20 remains technically the business of the Union finance ministry. Sous-Sherpa has been appointed from within the foreign ministry.
4. The most effective G20 presidencies of the past ensured there was close coordination between the Sherpa and finance tracks.

There are concerns that considering the challenges and too many centers of power and responsibility, India might be over-prepared or under-prepared.

What should be done?

A coherent and interlinked strategy should be developed by coordination between different ministries, PMO, and new Sherpa.

India should be able to take major agendas to the institution, like reform of the multilateral development banks and principles for digital payment systems. The time is ripe for pushing such reforms. Because, with the next presidency to Brazil, past, present and future G20 presidents will for the first time be from developing nations.

Sharing power with the next generations

News: The recent Ukraine crisis highlighted that the institutions of global governance which were supposed to guarantee peace have failed.

A new concept of “inter-generational justice” is gaining traction as a better way of producing a more equitable global order and arresting mankind’s breakneck destruction of the planet.

Why does the standard model of hierarchical organisations fail?

After two world wars, a new breed of global institutions was created to prevent the proliferation of weapons of mass destruction, rebuild shattered economies, and maintain global peace.

These include the United Nations headquartered in New York and the Bretton Woods institutions — the World Bank and the International Monetary Fund (IMF) — in Washington.

However, power in these institutions was retained by the victors. This shows new ideas for global governance are required because, a) They follow standard “one size” solution, whereas this cannot fit all, b) There is also a trust breakdown between the leaders on top of large international organisations and people on the ground,

c) They are also ineffective and constantly struck between issues between nations. For instance, after the Bretton Woods institutions failed to prevent oil large “oil shocks”, the world created G7. This was later expanded to G8 and G20. But the G20 is facing issues as the G7 wants to throw Russia out.

What is the prevailing scientific theory and its drawbacks?

The modern approach to progress is disseminated widely through “STEM” (Science, Technology, Engineering, and Math) education. This is done by extracting resources from the planet to create new products for human benefit. And then to find new technological approaches to repair the damage caused to the planet by those technologies.

But, the climate is heating up. Inequalities are growing. People are losing their patience. New ways must be found to solve complex global problems.

A scientific theory cannot work in socio-ecological systems because, a) Unlike machines designed by engineers, social scientists and economists are situated within the systems, b) Unlike ‘scientific’ design thinkers who try to design systems ‘objectively’, natural systems thinkers learn to live with and within the systems that give them life. For instance, They do not feel the need for rockets to take them to other planets after they have spoiled this one.

How to achieve inter-generational justice and lasting peace?

To ensure peace and prosperity, the power must shift between generations to create a more equitable global order. In other words, globally, the power must shift from the older, so-called ‘advanced’ countries to younger ‘emerging’ economies.

1) All generations and countries must work together. All must listen to others’ aspirations and must understand others’ wisdom. 2) The world should move away from the so-called ‘white man’s burden’.  So, the G7 and the Security Council must invite the rest to find new solutions to global problems. 3) Native communities’ natural knowledge must be reaped. 4) Local systems solutions should be cooperatively implemented within their communities by old and young persons together.

These are the way to solve these global systemic problems.

The case for a portable safety net for migrants

News: The recently released Periodic Labour Force Survey (PLFS) 2020-21 shows that 20.8% of total male migration in the country was from urban to rural areas in 2020-21.

What is the certainty effect?

Humans are naturally risk-averse. It means they try to reduce uncertainties in their decisions due to the certainty effect.

The certainty effect suggests people are less likely to select the outcomes that are merely probable, in comparison to the outcomes that are certain.

During the first phase of the covid pandemic, there was a sudden reverse migration from urban to rural. It reflects the phenomenon of the certainty effect. The migrants were trying to avoid the risk, i.e. risk-aversion.

What were the reasons for reverse migration which indicated risk aversion?

The PLFS lists 16 reasons for migration. Few are

(1) Around 6.7% of male migrants have attributed their migration to the loss of a job, closure of unit or lack of employment opportunities.

(2) There were other reasons like health-related uncertainty, lockdowns, the temporary closure of shops and establishments, coupled with the absence of a safety net in some instances.

What are the issues in accessing the safety nets for the migrant labourers?

Although the government policies create safety nets for those who need them, when people migrate, they often miss out on the geographically-fixed safety net benefits.

Some states have safety net provisions, but there are problems with the dissemination of information.

Urban housing for migrants remains a big concern. For example, the slums have mushroomed in tier 1 and tier 2 cities.

The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979 mandates the registration of inter-state migrants. As per the act, the contractor has the duties and obligations to register the migrant labor. But the states have not enforced the act.

What should be done?

States should work with the Centre to reduce uncertainties for migrant workers.

(1) The Economic Survey of 2020-21 came up with a bare necessities index. The Ministry of Statistics could rely on this index to define a safety net in its computations. The Union government has initiated the process of making access to bare necessities portable. This has several benefits.

(2) The government has launched One Nation, One Ration Card and Ayushman Bharat schemes to ensure uniform access to food and healthcare across India. Further, the Union government has introduced affordable rental housing complexes, a sub-scheme under the urban Pradhan Mantri Awas Yojana.

(3) Before policy intervention for migrants, the government should identify who the migrants are. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979 should be implemented to register the inter-state migrants.

Fresh urgency on pension reforms

News: In recent periods, various state governments have proposed to shift away from the National pensions Scheme (NPS) to the old pension scheme. They are undoing the reform achieved in the past two decades. However, the Union government has been absolutely steadfast in its support for the NPS.

Evolution of the Pensions System in India

Phase-Before the launch of NPS: The Indian pension system covered three categories of people.

(1) Government employees who received them under the traditional pay-as-you-go defined benefit (DB) system. It was applicable to those recruited up until 2003. In this scheme, the Governments have to pay full pension to individuals.

(2) Destitute persons were eligible under the National Old Age Pension Scheme, and

(3) The organised sector workers were covered under the Employees’ Provident Fund Organisation’s pension scheme.

Criticism of the Defined Benefits (DB) Pension Scheme

The pension bill of the Union government increased from 0.24% of GDP in 1980-81 to 0.73% of GDP in 1999-2000.

The pension bill of the Government of India consumed 8% of the revenue receipts in the year 1999-2000 as against 2.9 percent in 1980-81.

In 1998, a committee was established under Surendra Dave to build a new pension system. This was called as the Old Age Social and Income Security (OASIS) Project.

Phase of New Pensions Scheme (NPS)

Project OASIS helped create and socialise new knowledge on the failure of DB systems worldwide. It proposed newer defined contribution (DC) systems that had been rolled out in many countries at that time.

Therefore, in February 2002, the union government announced the creation of a DC pension system. Subsequently, Himachal Pradesh became the first state to join NPS in 2003. Later on, other states also joined the scheme.

About the Direct Contribution (DC) Pensions Plan or NPS

It is a pension scheme for new recruits to the civil services and the uncovered segment of the population, who were recruited starting from 2004.

The Pension Fund Regulatory and Development Authority of India (PFRDA) was also created.

Arguments in favor of the NPS

The NPS has been able to drive fiscal down costs. It has become the cheapest fund management system in India.

In the NPS reform, the government evolves from double payment to only paying contributions for the employee. Further, the young are de-risked from fiscal concerns.

The importance of the NPS will be realized when the persons receiving the DB pension at present would fade away.

The NPS was formulated based on intellectual and evidence-based consensus, public debate and discussion, and good usage of external domain expertise.

At present, India is undergoing an accelerated demographic transition. As per recent data, the share of the youth (aged 15-29) in India has dropped to 26.7% in 2021 in the last decade. Further, it is projected to go down to 22.6% by 2036. Therefore, there is a stronger need for the NPS reform.

What are the causes of the state government’s proposal for the revival of the old pension scheme?

(1) It may be a populist consideration, as there is a demand from a section of employees.

(2) The decision may be partly to allay immediate fiscal pressures because, in NPS, the government has to contribute its share of NPS.

Unsayable in the House – On issue of unparliamentary words

News: Recently, there has been controversy surrounding the release of a Lok Sabha publication which contains a list of unparliamentary words.

About the Parliamentary rules for unparliamentary words in India

Parliamentary rules specify that presiding officers can delete words from the day’s proceedings that they consider defamatory, indecent, unparliamentary, or undignified in the parliament. Therefore, the presiding officers of Parliament have the final authority on what gets recorded in the day’s proceedings.

Members of Parliament (MPs) can also draw attention to any unparliamentary words and urge the chair to delete them.

Further, Parliament television also edits its video recording of the debate to reflect the deletion.

Any reporting of the parliamentary discussion that includes the deleted portion is a breach of parliamentary privilege and invites the ire of the House.

Deleted words are then added by the parliament secretariat to its compilation of unparliamentary expressions.

Origin of the exercise of deleting unparliamentary words

This exercise started in parliamentary functioning in England. The Speaker of the House of Commons started removing the offending words from the written proceedings of the house.

In 1873, the constitutional theorist Erskine May started recording words and expressions that the Speaker considered unparliamentary in an eponymous guide to parliamentary procedure.

Further, later editions of this book laid down the principle of parliamentary language. It states, “good temper and moderation are the characteristics of parliamentary language.”

In 1983, the Speaker of the House of Commons held that “whether a word should be regarded as unparliamentary depends on the context in which it is used. The context is critical and all-important. Here, “Context” means how the word is said, the circumstances in which it is said, and when it is said.

History of application of this rule

(1) In 1956, a Lok Sabha MP referred to Mahatma Gandhi’s assassin Nathuram Godse during the debate on a bill. The presiding officer deleted the name from the day’s written record, and the parliament secretariat added the word to its compilation of unparliamentary expressions.

(2) In 2014, Hemant Tukaram Godse was elected as the Lok Sabha Member of Parliament (MP). His surname was considered unparliamentary. Therefore, the presiding officer of Rajya Sabha deleted the word “Godse” from the House proceedings.

(3) In 2020, the Chairman of Rajya Sabha deleted the words used by the Prime Minister while replying to the debate on the Motion of Thanks to the President’s address, from the day’s proceedings.

What are the issues around deletion of unparliamentary words in a Lok Sabha publication?

First, Even if Parliament edits its record, the unparliamentary expression will be available online as a ready reference for using such words. In such a scenario, such a compilation of the words classified as unparliamentary will not deter a Member of Parliament from using them on the floor of the House.

Second, in a political discussion, a restriction of unparliamentary expression, without considering context, will unnecessarily stifle the voices of MPs.

GS Paper 3

Four-day work week: The five-day work week might be fading away

News: The idea of a four-day week against the usual 40-hour, five-day work week has been mooted for decades.

What are the findings of four-day work week studies?

Microsoft trial: The most recent and widespread adoption of a four-day work week was a trial run by Microsoft in Japan in 2019. The study witnessed a 40% increase in worker productivity, presumably due to increased job satisfaction and lower burnouts.

Apart from workers’ productivity, the company also witnessed higher efficiency in the form of lower office costs. It saw a massive 23% dip in electricity costs and a 60% fall in the number of pages printed in the office.

Other trials: Most trials of a four-day work week seem to increase or at least keep constant worker productivity. However, an increase in a worker’s productivity in a manufacturing firm with a decrease in work hours would not mean a similar increase in productivity for an employee in the service sectors such as education or health.

Note: In Iceland, around 86% of employees have the right to work on a four-day work week.

What are the benefits of a four-day work week?

1) Fewer working days will lead to lower commuting and hence have a positive impact on the environment, including a fall in electricity consumption in offices, 2) It can be an important tool to revive employment rates after the novel coronavirus pandemic, 3) It will increase work-life balance and a step toward gender equality and women’s career progression. This is because women often opt for smaller shifts and shorter work days for lower pay after they become mothers.

What are the challenges associated with the four-day work week?

A four-day work week is not one that fits all. For instance, a) The service sector has challenges implementing a four-day work week, especially for small firms, b) The sales and marketing departments of firms may also face issues as there would be less time to chase leads, build customer relations and solve issues, c) Further, employees in firms that would not decrease work hours in a four-day work week would have to work 10 hours on working days, which can lead to increased stress and decreased satisfaction, d) It will also affect employees’ holiday entitlements.

What is the situation of a four-day work week in India?

Study: A private study in India found that among 1,113 employers it surveyed, 60% preferred a four-day work week and believed that it would positively affect employee productivity and well-being.

Government response: Recognising this, the Central government is set to roll out the new labour codes, which include rules for a flexible four-day work week. The new codes stipulate the requirement of a minimum of 48 hours per week; hence the employee will have to work for 12 hours on each working day.

Expected Output: This is not likely to increase productivity as the increased per day hours of work would work against employee motivation to increase output.

Suggestions: The draft code should only reduce the number of workdays, keeping the number of hours fixed.

The draft code should not forget the Parkinson’s law that says work expands so as to fill the time available for its completion, and it should be a guiding principle in designing India’s new labour codes.

Climate change-induced disasters: India’s climate imperative

News: In the absence of COVID-19, climate change-induced disasters would have been India’s biggest red alert in recent years. The heatwave in Rajasthan, Uttar Pradesh, Gujarat, and New Delhi this year; torrential downpours in south India in 2021; and the super cyclone Amphan that battered West Bengal and Odisha in 2020 are symbols of man-made climate change.

What is the intensity of climate change-induced disasters in India?

Temperatures over the Indian Ocean have risen by over 1 °C since the 1950s, increasing extreme weather events. India is the fourth worst hit in climate migration.

Heat waves in India have claimed an estimated 17,000 lives since the 1970s. Labour losses from rising heat, by one estimate, could reach ₹1.6 lakh crore annually if global warming exceeds 2°C, with India among the hardest hit.

How to mitigate climate change-induced disasters?

Tackling heatwaves: a) The government has to promote agricultural practices which are not water-intensive and support afforestation that has a salutary effect on warming, b) Financial transfers can be targeted to help farmers plant trees and buy equipments, c) Insurance schemes such as weather-based crop insurances can transfer some of the risks of extreme heat faced by industrial, construction and agricultural workers to insurers, d) Climate-resilient agriculture calls for diversification such as, the cultivation of multiple crops on the same farm. There will need to be more localised food production.

Mitigating Floods and storms: a) The Southern States need stronger guidelines to avoid construction in locations with drainages, b) Mapping flood-risk zones to manage vulnerable regions, c) Environment Impact Assessments must be made mandatory for commercial projects, d) Construction of flood-resistant houses like built-in Kerala on pillars.

Preventing landslides and enhancing dam safety: Management of dams can exacerbate glacier lake outbursts and floods. So, India should enforce regulations to stop the building of dams on steep slopes and eco-fragile areas, as well as the dynamiting of hills, sand mining, and quarrying.

At the National and State level: a) India’s share in disaster management should be raised to 2.5% of GDP, b) States should tap into the Union government’s resources, financial and technological, from early warning meteorological systems to centrally sponsored climate schemes, c) MGNREGA funds can be used for climate adaptation in agriculture, waste management and livelihoods, d) States could make a compensatory payment to local self-government resources being used for climate adaptation.

Global steps required: 1) Leading emitters, including India, must move away from fossil fuels, 2) Regulation needs to be tightened and enforced to ensure forest protection while acquiring land.

Centre must welcome Chin refugees with open arms, Mizoram is already doing so

News; In recent years, Human Rights Watch (HRW) has accused Myanmar’s Tatmadaw, a junta regime of perpetrating “crimes against humanity”. The rule has led to displacement of half a million Myanmar’s people within the country and forcing more than 50,000 ethnic Chin and others to seek refuge outside.

What were the issues in front of the Indian government on account of the Chin people influx into India?

There has been an unprecedented divergence between the Indian government and the Mizoram state government. The Centre has adopted a security-centric approach and the Mizoram government has adopted a people-centred focus.

What is the Centre’s perspective on refugees?

The Chin refugees are not refugees who have simply run away to save their lives. They are rebels who have opted to go into self-exile and continue to extend support to the People’s Defence Forces (PDF) and other anti-Tatmadaw militias like the Chin Defence Force and the Chin National Army. Therefore, MHA advised the state government to stay alert and take appropriate action to prevent a possible influx into Indian territory.

The Centre directed the North-eastern states bordering Myanmar that they do not have powers to grant “refugee status to any foreigner”.

What is the state government’s perspective on refugees?

The Mizoram government has defied the Ministry of Home Affairs (MHA) orders to “detect and deport the refugees”. The Mizoram state has extended a warm welcome to everybody wanting to come and decided to take Chin refugees. Simultaneously, the state government has also strongly communicated to the Central government that it cannot be “indifferent” to its concerns.

What were the issues in the Centre’s decision of not to grant asylum?

The Central government has denied asylum to the Chin people on the ground of India’s non-ratification of the 1951 UN Convention on the Status of Refugees and also its 1967 Protocol.

However, not being a party to the Convention does not prevent any state from granting asylum to the asylum seeker.

Moreover, even non-signatories are bound under customary international law to follow the principle of non-refoulment that protects the rights of asylum seekers not to be deported or pushed back to the country they have fled to escape violence in the first place.

What are the reasons behind the Mizoram government’s move to allow refugee status?

Both Mizo and Chin communities share a common history. There are unique social-political realities between the two people at the India-Myanmar international border.

Both come from the same larger Zo tribe, therefore share a strong ethnic bond predating India’s Independence.

Both communities are bound together by a common religion, i.e., both are predominantly Christians.

There is a Free Movement Regime (FMR) 2018 between India and Myanmar that allows both communities on either side to go up to 16 km on the other side and stay up to 14 days. Therefore, border landers routinely cross over on either side for trade in essential commodities, work, cross-border marriages, and as a result to meet relatives.

There is a history of mutual empathy and solidarity between the Mizos and the Chins. The Chin people have extended support and sanctuary to the members of the Mizo National Front. Similarly, during the 1988 pro-democracy movement in Myanmar, the Mizos extended a helping hand to the Chins who were subjected to brutal repression at the hands of the junta regime

The Way Forward

The Centre should recalibrate its policy toward the refugees and their hosts. It should grant refugee status to the Chin people. Further, it should help the state government to sustain the relief work.

Zombies of the West

News: In late 2020, due to pandemic, people adopted digital technology at an accelerating pace. It was widely seen as an important milestone in terms of productivity, as it led to a surge in productivity across the economy.

Historical Trends of progress and innovation

In the earlier era of capitalism, the innovations generated advances such as electricity and gas engines, which lifted productivity across industries.

In the post-war period. The productivity increased. However, the post-war productivity boom ended in the 1970s.

Since 1970s, the computer age began, which contributed to the revival of productivity. In the 1990s, there was a productivity revival in retail stores. It was driven by checkout scanners and other digital inventions used in retail stores.

However, in terms of the overall trend, there has been a downward trend in productivity for more than 50 years.

Regional Variation in productivity

Advanced Countries: Productivity has declined mostly in all the advanced countries like the US Economy.

Emerging Countries: In emerging countries, productivity rose steadily from below zero in the 1970s to a peak above 5% in the late 2000s. Since 2010, nearly all developed countries have seen productivity drop. But the productivity in emerging countries grew by 3% in the 2010s.

What are the reasons for the downward trend in productivity in advanced economies?

First Perspective: The innovations like internet search fail to register in productivity measurements. Further, there are distractions like digital games and social media.

Second perspective – Big Government: The role of government has been expanding in advanced economies. The developed economies have increasingly socialized economic losses during the crisis period.

(1) Since, the 1970s, major capitalist countries began running budget deficits during the crisis period. Both monetary and fiscal stimulus has increased. For example, the stimulus was more than 7% of GDP in 2001, 12% in 2008, and 45% in 2020 during the respective crisis.

(2) The governments have allowed generous rescues to the companies. As a result, corporate defaults have fallen. For example, In Europe, the default rate fell from around 20% after the 2001 recession to 10% after 2008 and 5% in 2020.

(3) due to the first two, there has been a decline in entrepreneurial dynamism. The number of listed US companies fell by half in recent decades and, new business creation plummeted.

(5) More active government support has undermined creative destruction, which is the lifeblood of capitalism. Therefore, productivity growth fell, as bailouts and stimulus grew significantly.

(6) The US and European countries are facing the problem of a zombie economy. These zombies’ companies did not exist in 2000 but now account for 20% of listed companies in the US, and higher shares in Europe. These companies’ prey upon easy money. These firms suck resources from more dynamic companies and contribute to lower productivity across industries.

What are the explanations for the productivity paradox or high productivity in emerging economies?

(1) Productivity does not require scepticism of new technology.

(2) The role of the state has broadly declined in emerging economies since the 1970s. For example, countries like China and later India pivoted to more market-oriented economic systems.

What should be done?

Now Inflation is back. It may possibly end the era of easy money, which may in turn remove some of the zombie companies. This will induce a new productivity wave.

The governments need to think about their role in the economy and bring reforms like moving away from the culture of big government, a new governing culture of bailouts, market rescues, and constant stimulus.

Prelims Oriented Articles (Factly)

Only 50% farmers benefited from farm loan waivers, finds study

Source: The post is based on the article “Only 50% farmers benefited from farm loan waivers, finds study” published in The Hindu on 18th July 2022.

What is the News?

State Bank of India’s researchers have conducted a study on the Farm Loan Waivers Scheme announced by different states.

What are the key findings of the study?

Implementation of Farm Loan Waiver Scheme by States: Only about half of the intended beneficiaries of farm loan waivers announced by nine States since 2014 have actually received debt write-offs.

– The poorest implementation of farm loan waiver schemes in terms of proportion of eligible farmers who had received the announced benefits were in Telangana (5%), Madhya Pradesh (12%), Jharkhand(13%), Punjab(24%), Karnataka(38%) and Uttar Pradesh (52%).

– On the other hand, farm loan waivers implemented by Chhattisgarh in 2018 and Maharashtra in 2020 were received by 100% and 91% of the eligible farmers respectively.

Reasons for Poor Implementation of Farm Loan Waiver Scheme: The report identified rejection of farmers’ claims by State Governments, limited or low fiscal space to meet promises and change in Governments in subsequent years as the possible reasons for the low implementation rate of these loan waivers.

Concerns with Loan Waiver Scheme: According to the report, loan waivers destroy the credit culture which may harm the farmers’ interest in the medium to long term and also squeeze the fiscal space of governments to increase productive investment in agriculture infrastructure.

Govt formulates NAMASTE scheme for cleaning of sewers, septic tank:MoS for Housing and Urban Affairs in Rajya Sabha

Source: The post is based on the article “Govt formulates NAMASTE scheme for cleaning of sewers, septic tank:MoS for Housing and Urban Affairs in Rajya Sabha” published in AIR on 18th July 2022.

What is the News?

The Minister of State for Housing and Urban Affairs has said that the Government has formulated a NAMASTE scheme for cleaning of sewers and septic tanks.

What is the NAMASTE Scheme?

Full-Form: National Action Plan for Mechanized Sanitation Ecosystem- NAMASTE.

Nodal Ministries: Department of Drinking Water and Sanitation, Ministry of Social Justice and Empowerment and the Ministry of Housing and Urban Affairs.

Aim: To achieve outcomes like zero fatalities in sanitation work in India, no sanitation workers come in direct contact with human faecal matter and all Sewer and Septic tank sanitation workers have access to alternative livelihoods.

Erstwhile Scheme: This scheme replaces the Self Employment Scheme for Rehabilitation of Manual Scavengers.

Implementation: The scheme will be implemented from 2022 to 2026 across 500 cities and townships already notified under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) which aims to equip cities with basic quality of life services.

Three million children in India missed DPT dose in 2020 because of pandemic: Unicef

Source: The post is based on the article “Three million children in India missed DPT dose in 2020 because of pandemic: Unicef” published in Indian Express on 18th July 2022.

What is the News?

According to WHO and UNICEF report, the world recorded the largest sustained decline in childhood vaccinations in approximately 30 years.

What are the key findings of the report?

Global findings: Around 25 million children in 2021 alone missed one or more doses of a vaccine called DPT. This is up from 2 million who missed one or more doses in 2020 and 6 million from 2019.

– The percentage of children who received three doses of DPT dropped 5 points to 81% between 2019 and 2021. This represents the largest sustained decline in childhood vaccinations in 30 years.

– Multiple factors are behind the decline including larger numbers of children living in conflict areas, increased misinformation about vaccines and COVID-19-related problems such as reduced services and supply chain disruptions.

Findings related to India: The Covid pandemic impacted India’s immunization programme with an estimated three million children not having received the first dose of the DPT vaccine in 2020.

– Note: India launched Intensified Mission Indradhanush 4.0 in February 2022. It is globally the largest vaccination drive reaching out to missed children and pregnant women.

Explained: Is there a crisis in rice?

Source: The post is based on the article “Explained: Is there a crisis in rice?” published in Indian Express on 18th July 2022.

What is the News?

The overall crop coverage has risen since last year. But the rice coverage was 17.4% down from last year. However, adequate stocks and cultivation of rice over a wider area suggest there should be no cause for worry.

Statistics about Rice

Rice is India’s largest agricultural crop (accounting for over 40% of the total foodgrain output). India is the world’s biggest exporter (around 40% of the world’s export). ​​India is the second-largest producer of rice in the world, behind only China.

Process of Rice Cultivation: Farmers first sow paddy seeds in nurseries, where they are raised into young plants. These seedlings are then uprooted and replanted 25-35 days later in the main field which is usually 10 times the size of the nursery seed-bed. Nursery sowing generally happens before the monsoon rains. For the first three weeks or so after transplanting, the water depth has to be maintained at 4-5 cm, in order to control weed growth in the early stage of the crop.

Why has rice acreage fallen? 1) Areas such as Uttar Pradesh to West Bengal have had very little rain and 2) Most farmers with limited irrigation facilities have seen even their nurseries drying up.

Is there a crisis in rice ahead?

Not for now. This is because:

Firstly, the India Meteorological Department has forecasted that the current monsoon trough which is active and south of its normal position, is very likely to shift gradually northwards and provide much-needed relief to farmers in the Gangetic plains.

Secondly, rice cultivation takes place across a wider geography, unlike wheat which is grown only in a few states north of the Vindhyas. Also, rice is both a Kharif (monsoon) and rabi (winter-spring) season crop. So, the losses in one area or season can potentially be recouped from the other.

Yield inversion, soft-landing and reverse currency wars: A glossary for the troubled global economy

Source: The post is based on the article “Yield inversion, soft-landing and reverse currency wars: A glossary for the troubled global economy” published in Indian Express on 18th July 2022.

What is the News?

The US Central Bank has been increasing the interest rates. Moreover, the inflation rate in the US for June came in at 9.1%. This is the highest in 40 years in the US. 

Many observers have pointed to an inversion of the US yield curve to argue that the US central bank will not be able to achieve a soft-landing for the economy.  

Similarly, the policies of other central banks are being seen as a reverse currency war situation.

What is the Yield Curve?

The yield curve is the graphical representation of yields from bonds (with an equal credit rating) over different time horizons.

Different Types of Yield Curves

Under normal circumstances, any economy would have an upward sloping yield curve. That is to say, as one lends for a longer duration — or as one buys bonds of longer tenure — one gets higher yields. Moreover, a longer tenure also implies that there is a greater risk of failure.

Inverted Yield Curve: There are times when this bond yield curve becomes inverted. For instance, bonds with a tenure of 2 years end up paying out higher yields (returns/ interest rate) than bonds with a 10-year tenure. Such an inversion of the yield curve essentially suggests that investors expect future growth to be weak.

Why does the inversion of the Yield Curve happen?

When investors feel buoyant about the economy they pull the money out from long-term bonds and put it in short-term riskier assets such as stock markets. Due to this, the prices of long-term bonds fall, and their yield (effective interest rate) rises. This happens because bond prices and bond yields are inversely related.

However, when investors suspect that the economy is heading for trouble, they pull out money from short-term risky assets (such as stock markets) and put them in long-term bonds. This causes the prices of long-term bonds to rise and their yields to fall.

Significance of Inversion Yield Curve: Inversion of the bond yield curve has become a strong predictor of recessions if such an inversion lasts for several months.

What is Soft Landing and hard landing?

Currently, the US Fed is not just reducing the money supply but also increases the cost of money (that is, the interest rate). The Fed is doing this to contain soaring inflation. 

When a central bank is successful in slowing down the economy without bringing about a recession, it is called soft-landing — that is, no one gets hurt. But when the actions of the central bank bring about a recession, it is called hard-landing.

What is the Currency War?

US Fed is aggressively raising interest rates, thus more investors are rushing to invest money in the US. This, in turn, has made the dollar become stronger than all the other currencies.

On the face of it, this should make all other countries happier because a relative weakness of their local currency against the dollar makes their exports more competitive. In fact, in the past, the US has often accused other countries of manipulating their currency (and keeping it weaker against the dollar) just to enjoy a trade surplus against the US. This used to be called the Currency War.

What is the Reverse Currency War?

It is a situation in which countries are trying to make their currency stronger.

For instance, currently, every central bank is trying to figure out ways to counter the US Fed and raise interest rates themselves in order to ensure their currency doesn’t lose too much value against the dollar.

Note: Stronger currency means that imports are relatively cheaper.

However, raising the interest rate will decrease the chances of soft-landing for any other economy.

Panel on MSP, Natural Farming setup

Source: The post is based on the article “Panel on MSP, Natural Farming setup” published in The Hindu on 19th July 2022.

What is the News?

The Government of India has constituted a committee to look into the issues of minimum support price(MSP), Natural Farming and Crop diversification. 

About the Committee on MSP, Natural Farming and Crop diversification

Headed by: Former Agriculture Secretary Sanjay Agrawal.

Terms of Reference of the committee

On MSP: To suggest measures to a) make MSP available to farmers by making the systems more effective and transparent, b) give more autonomy to Commission for Agricultural Costs and Prices (CACP).

Note: The terms of reference do not mention the legal guarantee on MSP.

On Natural Farming: To make suggestions for programmes and schemes for value chain development, protocol validation and research for future needs and support for area expansion under the Indian Natural Farming System.

On Crop diversification: ​​To provide suggestions related to crop diversification including 1) mapping of existing cropping patterns of agro-ecological zones of producer and consumer states, 2) strategy for diversification policy to change the cropping pattern according to the changing needs of the country and 3) a system to ensure remunerative prices for the sale of new crops.

The Shanghai Cooperation Organization and its stature in the modern world

Source: The post is based on the article “The Shanghai Cooperation Organization and its stature in the modern world” published in The Hindu on 19th July 2022.

What is the News?

Iran and Belarus could soon become the newest members of the China and Russia-backed Shanghai Cooperation Organization(SCO).

What is Shanghai Cooperation Organization(SCO)?

Click Here to read about SCO

Focus Areas: It includes education, energy, transport, tourism and environmental protection.

India and SCO:

India acquired the observer status in the grouping in 2005 and was admitted as a full member in 2017. 

Through the years, the SCO hosts have encouraged members to use the platform to discuss differences with other members on the sidelines. 

– For instance, in 2015 Indian Prime Minister held a bilateral meeting with the Pakistani Prime Minister.

– In 2020, the Foreign Minister negotiated a five-point agreement with his Chinese counterpart on the sidelines of the Moscow conference in 2020. 

What is the reason behind the expansion of SCO?

Click Here to read

Why are Iran and Belarus joining SCO as members?

Iran: The Iranian leadership has often stressed that the country must “look to the East”. This is essential not only to resist its economic isolation (by addressing the banking and trade problems on account of U.S. sanctions) from the West but also to find strategic allies that would help it to reach a new agreement on the nuclear program. In other words, using its ties with China and Russia as leverage against the West. Additionally, it would help it strengthen its involvement in Asia. 

Belarus: The same premise applies to Belarus, which lent its support to Russia for its actions in Ukraine. An association with the SCO bodes well for its diplomacy and regional stature.

Explained: How Chief Ministers’ foreign trips are cleared, and by whom

Source: The post is based on the article “Explained: How Chief Ministers’ foreign trips are cleared, and by whom” published in Indian Express on 19th July 2022.

What is the News?

Delhi Chief Minister has questioned why the Centre has delayed the clearance of his trip to Singapore where he has been invited to attend a World Cities Summit. 

What clearance do Chief Ministers require to travel abroad?

The Cabinet Secretariat and the Ministry of External Affairs should be kept informed of the proposed foreign visit, either official or private of Chief Ministers and Ministers of State Governments/Union Territories. 

However, prior political clearance and FCRA (Foreign Contribution Regulation Act) clearance are mandatory.

In the case of Chief Ministers and Ministers of state governments, a copy of the application must also be sent to the Secretary, Department of Economic Affairs(DEA).

What is political clearance?

This comes from the Ministry of External Affairs (MEA). This is required not only for public servants but any government servant for a foreign trip. 

The decision is taken based on multiple factors such as the nature of the event, the level of participation from other countries, the kind of invitation that has been extended and also India’s relations with the host country.

Since 2016, applications can be made for e-political clearance on the portal epolclearance.gov.in.

Are there any other clearances required?

Chief Ministers, ministers of state governments and other state officials also need clearance from the Department of Economic Affairs.

For Union ministers, after getting political clearance from the MEA, additional clearance is needed from the Prime Minister, whether the trip is official or personal.

Lok Sabha MPs need clearance from the Speaker and Rajya Sabha members from the Chairperson (Vice President of India). However, for MPs, it is not obligatory to inform the Lok Sabha/Rajya Sabha secretariat if the trip is private.

For government employees, all foreign trips, official or personal, need approval.

Do judges need clearance for foreign trips?

For official foreign travel, the proposal by a Supreme Court or High Court judge is sent to the Department of Justice (DoJ) after taking clearance from the Chief Justice of India. 

The DoJ, after taking political clearance from the MEA and in some cases from the Home Ministry (when FCRA is involved) issues approval. 

Note: Judges do not need clearance for personal foreign trips.

Scientists solve the curious case of Himalayan glaciers resisting global warming

Source: The post is based on the article “Scientists solve the curious case of Himalayan glaciers resisting global warming” published in PIB on 18th July 2022.

What is the News?

Researchers have made great progress in finding out why a few areas of glaciers in the Karakoram Range are defying the global trend of glaciers losing mass and resisting glacial melt caused by climate change.

Background

Himalayan glaciers are of utmost importance, particularly for the millions of people who live downstream and depend on these perennial rivers for their daily water demands. 

However, under the effects of global warming, they are rapidly disappearing and in the ensuing decades, suffocating demand on the water supplies is unavoidable.

On the other hand, the glaciers in central Karakoram have surprisingly remained the same or even slightly risen during the past few decades. 

This behaviour seems to be confined to a very small region with only the Kunlun ranges being another example of showing similar trends in the whole Himalayas.

How have glaciers in the Karakoram range remained the same?

Researchers have claimed that the recent revival of western disturbance has been instrumental in triggering and sustaining ‘Karakoram Anomaly’.

The study has found that Western Disturbances are the primary feeder of snowfall for the Karakoram region during winters. 

For instance, WDs constitute about around 65% of the total seasonal snowfall volume and about 53% of the total seasonal precipitation, easily making them the most important source of moisture. 

Moreover, the precipitation intensity of WDs impacting Karakoram has increased by around 10% in the last two decades which only enhances their role in sustaining the regional anomaly.

What is the significance of this study?

Previous studies have highlighted the role of temperature in establishing and sustaining the anomaly over the years. This is for the first time that the impact of precipitation in feeding the anomaly has been highlighted.

Namsai Declaration: Assam, Arunachal sign pact to resolve border dispute

Source: The post is based on the article “Assam, Arunachal sign pact to resolve border dispute” published in Indian Express on 17th July 2022.

What is the News?

Assam and Arunachal Pradesh have signed the “Namsai Declaration” to resolve border disputes.

What is the Namsai Declaration?

Signed by: Assam and Arunachal Pradesh

Purpose: The declaration marks the resolution of the principle of disputes regarding 37 locations out of 123 disputed villages along the borders between the two states. 

– Now disputes regarding the remaining 86 border locations will be assessed by the regional committees of both states and a final resolution will be arrived at based on the reports of these committees.

Note: Out of the 37 villages, 34 villages fell within the border of Arunachal Pradesh, the rest three lay in Assam.

What is Assam-Arunachal Pradesh Border Dispute?

Click Here to read about it