9 PM Daily Current Affairs Brief – March 23rd, 2023
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Mains Oriented Articles
GS PAPER - 1
Notes on urban prosperity
Source: The post is based on thearticle “Notes on urban prosperity” published in Business Standardon 23rdMarch 2023.
Syllabus: GS 1 –Urbanization
Relevance: problems with Urbanization
News:The article discusses the problems with urbanization and measures that can be adopted to make urban cities prosper.
What are the problems with urbanisation?
Cities have become an important point of change, growth and provide creative solutions to national agendas as well as regional and global development.
However, long-term sustainable urban prosperity has been reduced by insufficient planning, absence of effective governance and legal frameworks, unstable institutions, and the absence of a credible monitoring system.
Hence, the economic benefits of a city such as rise in the price of land and assets cannot be utilized well until the gains of urbanisation and value generated are not redistributed among citizens equitably.
According to the UN-Habitat’s World Cities Report (Envisaging the Future of Cities), a vision of fair “urban futures” cannot be realized unless we adopt inclusive and decisive efforts toward sustainable solutions to urban difficulties.
Must Read: India@100: What’s ahead for urbanisation?
What measures can be adopted to bring urban prosperity?
Cities’developments are mostly looked at in terms of GDP. However, its measure must be directed towards making urban environments more resilient so that urban prosperity comes in line with sustainable goals.
Some of the efforts taken in this direction are – the Sendai Framework for Disaster Risk Reduction, the Addis Ababa Action Agenda, and the Paris Agreement on Climate Change.
Further, creating urban resilience is a multi-faceted, multi-stakeholder process that requires more intensive actions.
Therefore, to realize the positive vision of urban futures, ambition must be shifted from gradual urban transitions to large urban changes along with bridging the gap between ambitious city visions and action plans to achieve the goals.
However, it is also necessary to recognize, measure, and operationalize urban resilience gaps and policies for proper administration. These need to be addressed by the various local government units.
For measuring such parameters, the City Resilience Index (CRI) might be useful. It was created with the intention that all member cities will adopt and use it as a tool to track changes in overall resilience over time.
Further, in order to create a climate-resilient world, urban economic activity should be made in such a way that it promotes renewable energy, circular economic activity, and green employment.
The various forms of capital (natural, sociocultural, human, economic, and physical) should be handled through systemic thinking that promotes fairness, justice, co-production, governance, and regeneration.
What can be the way ahead?
Rapid urbanization has resulted in the growth of outer urban areas in the shape of megacities, hyper cities, that are inefficient in terms of energy usage, environmental sustainability, and economic performance.
Therefore, there is a need for a more comprehensive approachwhich addresses – a)the pillars of sustainable development by emphasizing the economic role of cities in national growth and recognizing the economic possibilities they provide and b)global environmental challenges like climate change, unsustainable energy consumption, and water scarcity to ensure ease of living for its people.
GS PAPER - 2
R&D: India’s missing giants
Contents
Source- The post is based on the article “R&D: India’s missing giants” published in the “Business Standard” on 23rd March 2023.
Syllabus: GS2- Government policies and interventions for development
Relevance– Innovation for growth of economy
News– The article explains the lack of R&D expenditure in India. It explains the need for global brands in India and creating a world-competitive industry to build these brands.
What are issues with R&D expenditure in India?
India lags the world in R&D. It is the fifth largest economy, but ranks 16th in investment on R&D.
Large firms worldwide dominate investment in technology. The top 20 investors in industrial R&D account for over 20% of the total industrial R&D done by millions of firms worldwide. But, the 26th largest investor in industrial R&D worldwide invests more in R&D than all of Indian industry combined.
Top five firms in the non-financial sector have low R&D investment in India. While the top five firms in the US spend 152 billion dollars on R&D, in China 31 billion dollars, but in India they spend only 0.9 billion dollars.
R&D investment as a percent of profit is much more interesting. It is 37% in the US, 29% in China, 43% in Japan, and 55% in Germany. In India, it is 2%.
What are the benefits of developing global brands by India firms?
It is argued that large groups in India have failed in building a single global brand. It is blamed on a mentality of outsourcing. The international firms like Apple, Microsoft, Sony, BMW are globally associated with great products in particular industries.
The brands they have built provide global reach and a premium positioning that delivers great profitability.
How the firms in East Asian economies became global brands?
Firms like Samsung, Hyundai, LG, TSMC and Acer did not start as global brands. They began with outsourcing, as original equipment manufacturers or OEMs. They build manufacturing operations of global scale.
They used their demanding buyers as a source of technology that made them world-competitive. They invested in R&D, as process innovation, to make manufacturing more efficient. They then offered their buyers products with new and improved designs.
With world-competitive manufacturing and product design in place, they made the shift to their own brand manufacturing. They launched their own brands.
This is the story of Samsung in microwaves and semiconductors, LG in TV sets, Hyundai in cars and excavators, TSMC in microprocessors, and Acer in laptops.
As firms like Hyundai, Samsung moved up the OEM to OBM chain, their investment in R&D multiplied. Samsung has consistently ranked among the world’s five largest investors in R&D. It invests $18 billion a year, more than all of India
What is the way forward to build global brands in India?
It requires a long-term entrepreneurial outlook with investment in technology. There is a need for building a world-competitive industry.
Outsourcing should not be discouraged. The current protection though PLI subsidies must continue. At the same time, there is a need to invest strongly in design.
A few giant investors in R&D must emerge in India. The most profitable firms in software, in consumer goods and industrial products are suitable for it. If they are not willing, new entrants to build world-leading firmsbased on investments in technology must be prompted.
The happiest countries also rank among the highest in antidepressant consumption
Source- The post is based on the article “The happiest countries also rank among the highest in antidepressant consumption” published in “The Indian Express” on 23rd March 2023.
Syllabus: GS2- Issues related to development and management of human resources.
Relevance– Important reports and indices
News– World Happiness Report 2023 published by the UN Sustainable Development Solutions released recently.
What are some facts about the World Happiness Report 2023?
Denmark is at number two and Iceland in the third spot. Sweden and Norway, are at six and seven, respectively.
The ranking uses six key factors to measure happiness — social support, income, health, freedom, generosity, and absence of corruption.
What are issues related to the happiness report?
As per the data released by the OECD, the use of antidepressants increased nearly two and half times across Europe between 2000 and 2020. Iceland is at the top spot, followed immediately by Sweden and Norway. Finland and Denmark come in at number eight and nine.
The measures used to map happiness often don’taccount for things such as loneliness in highly developed societies. Material well-being does not preclude conditions like clinical depression.
These reports rank each nation for the efforts taken by their government for happiness among its citizens. Happiness itself is too ineffable, individual and elusive. It cannot be properly assessed by rankings and measurements.
The road to ending tuberculosis
Source- The post is based on the article “The road to ending tuberculosis” published in “The Hindu” on 23rd March 2023.
Syllabus: GS2- Issue related to development and management of health
Relevance– Communicable diseases, their treatment and management
News– The article deals with important areas of action to end TB by 2030. It also explains the global response to stop TB incidence.
What are global efforts taken to reduce the incidence of TB?
In 1993, the World Health Organization declared TB a global health emergency.
The Global Fund to Fight AIDS, TB, and Malaria began disbursing money directed toward the global TB epidemic in 2003. But conditions are imposed on it by its donor constituents. There are conflicts among stakeholders regarding the amount of money allocated for three diseases.
TheStopTB Partnershipmobilises a disparate set of actors towards the goal of ending TB.
How has the global TB response been adapting to changes?
There is engagement of people affected by the disease.
There is use of molecular diagnostic tools developed for diagnosing TB.
Social safety programmes to address the poverty drivers of the TB epidemic have been introduced.
Mobile and computational data revolution is being leveraged to improve treatment outcomes
What are the three areas that are important to achieve the goal of ending TB by 2030?
The First area is vaccine development.
There is a need for the development and wide use of an adult TB vaccine. The current vaccine delivered at birth is 100 years old.
The experience with the COVID19 vaccine development process can be used. The issue of equitable distribution seen with the COVID19 vaccines should be avoided.
The second area is that of getting newer therapeutic agents for TB.
After a development drought of nearly five decades, a few new anti-TB drugs are today available for widespread use.
Moving to an injection free and shorter all oral pills regimen for TB will improve compliance and reduce patient fatigue.
The effort to come up with newer drugs needs to accelerate so that drug resistance to the most recently introduced drugs can be tackled.
The third area of action is diagnostics.
Use of AI-assisted handheld radiology with 90 second reporting and 95% plus accuracy for diagnosing TB is important development. It should be rolled out universallyimmediately.
Sentinel, passive surveillance and interpretation of cough sounds for TB is another breakthrough area. This allows for homelevel screening and monitoring. It should be used widely.
Confirmatory diagnosis using nucleic acid amplification can be explored. InDx diagnostics coalition and other biotech startups should be incentivised to break the complexity of molecular testing and price barriers with affordable high quality innovations.
Why Univ Rankings Are In Trouble From India To US
Source: This post is created based on the article “Why Univ Rankings Are in Trouble from India To US”, published in Times of India on 23rdMarch 2023.
Syllabus Topic: GS Paper 2 – Issues relating to development and management of Social Sector/Services relating to Education
News: Many foreign universities recently rejected the US News & World Report annual rankings. Many top universities were included among them, for example the top ranked Harvard Medical School, law schools of UC Berkeley and Yale.
Their justification was that these rankings were harmful to attracting prospective students.
Similarly, in 1995, Reed College refused to participate in the US News & World Report annual survey. The reason was a WSJ report of1994 about institutions manipulating data to move up in the rankings in various popular college guides.
However, the executive chair of US News & World Report, said that the mentioned elite schools don’t want to be held accountable by an independent third party.
Recently India’s National Assessment and Accreditation Council’s processes have come in for a lot of criticism and several articles have red-flagged its credibility.
What are the issues with the measurement of performance of Universities?
There are issues with both qualitative and quantitative measurements of universities. A qualitative approach is time-consuming and cannot be verified. Moreover, it islabor-intensive, and not statistically representative. Whereas the qualitative measurement relies on numbers and can be manipulated by institutes.
Another issue is whether a university should be programme accredited or institution accredited. programme accreditation can be enormously time-consuming for our large education system, whereas university accreditation can hide the inconsistencies within departments.
How do the ranking agencies operate presently?
There are many ranking agencies operating presently, for example, THE World University Rankings (THE-WUR), QS Asian University Rankings, Quacquarelli Symonds World University Rankings, etc.
THE-WUR measures the university performance based on 13 indicators, across teaching (30%), research (30%), research citation (30%) international outlook (7. 5%) and knowledge transfer/industry income (2. 5%).
QS measures based on academic reputation (40%), employer reputation (10%), faculty student ratio (20%), citation per faculty (20%) and international faculty and student ratio (5% each).
NAAC measure is based on 15% for curricular aspects, 20% for teaching learning and evaluation, 25% for research, innovation and extension and 10% each for 4 other aspects.
NIRF ranking is based on six parameters such as research and professional practice, graduation outcomes, outreach and inclusivity.
Why is there so much difference in methods of ranking universities?
Education is multi-faceted. There is a large diversity in the Indian education system.
Different type of institutions like pvt or public, tech or social science, language basedetc, operate under very different conditions. They cannot be grouped under the same parameters for a quality check.
Therefore, ranking and accreditation processes must be scraped and quality assurance must be adopted as the default. Individual Universities must be held accountable for the performance.
As Covid and H3N2 flu cases rise, here’s how India can help build global resilience
Contents
- 1 About health risks at present
- 2 What is the need for the pandemic treaty?
- 3 About the debate for a pandemic treaty
- 4 What is the pandemic treaty?
- 5 How India can help in developing global health resilience?
- 6 What should be done to ensure an equitable pandemic treaty?
- 7 What India should do to ensure health resilience?
Source: The post is based on the article “As Covid and H3N2 flu cases rise, here’s how India can help build global resilience” published in the Indian Express on 23rd March 2023.
Syllabus: GS – 2: Issues relating to the development and management of Social Sector/Services relating to Health.
Relevance: About pandemic treaty.
News: The recent rise in Covid-19 cases and ongoing influenza outbreaks have highlighted the need for a pandemic treaty.
About health risks at present
About the current landscape of Covid-19: XBB.1.5 has been reported from 38 countries and declared a variant of interest (VOI) by the WHO.
The Covid XBB 1.16 variant is fuelling the surge. India witnessed nearly a three-fold rise in cases over the last fortnight. So far, it has not caused any mortality in India. XXBB 1.16 is nearly one-and-a-half times of XBB.1.5. Thus making it an aggressive variant with immune escape properties.
The surge of H3N2 Influenza A cases:
Read here: H3N2: What is this virus and how can it be prevented from spreading |
What is the need for the pandemic treaty?
Limitations of the International Health Regulations (IHR) 2005: Limitations like countries not reporting cases in time and international agencies not responding adequately was exposed during the Covid-19 pandemic.
Emergence and re-emergence of diseases: Emergence and re-emergence of diseases of animal origin highlighted the need for local, national and global governance to combat diseases.
Read more: Need for a Global Pandemic Treaty – Explained, pointwise |
About the debate for a pandemic treaty
World Health Assembly set off a global process in 2021. An intergovernmental negotiating body (INB) that includes WHO’s 194 countries is steering this process.
At the same time, more than 300 amendments to the IHR is also being discussed. The World Health Assembly in 2024 is expected to ratify these and set a “comprehensive, complementary and synergistic set of global health agreements”.
What is the pandemic treaty?
Read here: WHO publishes zero-draft of pandemic treaty: Equity, IPR take centre stage |
How India can help in developing global health resilience?
Being the president of the G20 group of countries India has a significant role in developing global health resilience. India is working on One Health Mission. The G20 is already engaged with One Health (OH) issues.
What should be done to ensure an equitable pandemic treaty?
Appropriate use, recognition, and protection of indigenous knowledge: This will traditionally recognise the interconnectedness of human, non-human and ecosystem health.
Work on the inclusion of women and minority groups: The world should stress on substantive and equitable inclusion of women and minority groups, including racial, ethnic and sexual minorities. This is because of the traditionally under-represented groups in treaty design and implementation.
Use of health equity impact and gender-based analysis: This is to identify and develop mitigation plans for the potentially inequitable impact of epidemics.
What India should do to ensure health resilience?
Promote the establishment of OH infrastructure: This will need an integrated OH surveillance system, building and nurturing partnerships to connect and share data on infectious pathogens and related risk factors.
Work on pandemic preparedness: This includes integrating monitoring and assessment into the state and district governance architecture. As this will ensure an inter-/ transdisciplinary OH evaluation framework and methodology, including metrics for measuring success.
The UN High Seas Treaty: challenges and significance – Explained, pointwise
Contents
- 1 Introduction
- 2 What is the UN High Seas Treaty?
- 3 What is the need for the High Seas Treaty?
- 4 What are the significant provisions of the High Seas Treaty?
- 5 What are the advantages of the High Seas Treaty?
- 6 What are the challenges in implementing the High Seas Treaty?
- 7 What are the implications of the High Seas treaty for India?
- 8 What should be done?
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Introduction
The UN High Seas Treaty was agreed upon after more than ten years of negotiations during the Intergovernmental Conference on Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) held in New York. The treaty, once formally adopted and ratified, will be legally binding and will ensure the sustainable use of the world’s oceans outside national boundaries.
What is the UN High Seas Treaty?
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The High Seas Treaty is a new global treaty for the conservation and sustainable use of biological resources on the high seas. The high seas are open ocean areas that are outside the jurisdiction of any country. The treaty is also known as the agreement on “biodiversity beyond national jurisdictions” or BBNJ.
The treaty has four main objectives. Such as a) demarcation of marine protected areas (MPAs), b) sustainable use of marine genetic resources and equitable sharing of benefits arising from them, c) initiation of the practice of environmental impact assessments for all major activities in the oceans, and d) capacity building and technology transfer.
The High Seas Treaty will work as an implementation agreement under the UNCLOS, much like the Paris Agreement works under the UN Framework Convention on Climate Change (UNFCCC).
What is the need for the High Seas Treaty?
Read here: The UN High Seas Treaty – Explained, pointwise |
What are the significant provisions of the High Seas Treaty?
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Regulation of Human Activities: The treaty seeks to regulate all human activities in the high seas to ensure that ocean resources, including biodiversity, are utilized in a sustainable manner and their benefits are shared equitably among countries.
Protection of Biodiversity: The treaty seeks to protect the biodiversity of the high seas, which is home to about 2.2 million marine species and up to a trillion different kinds of microorganisms. The creation of marine protected areas (MPAs) will ensure that ocean systems, including biodiversity, are under stress, either due to human activities or climate change.
Achieving global targets: The UN High Seas Treaty is very important for reaching the goals and targets of the 2030 Agenda for Sustainable Development and the Kunming Montreal Global Biodiversity Framework that have to do with the ocean. The treaty will make it possible to carry out the major decision made at the 15th Conference of Parties to the Biodiversity Convention in 2022. At that meeting, it was decided that marine protected zones should cover 30% (currently only 1.4%) of the ocean space on Earth by 2030.
Sustainable Use of Marine Genetic Resources: Oceans host diverse life forms, many of which can be useful for human beings in areas like drug development. The treaty seeks to ensure that any benefits arising out of the use of marine genetic resources, including monetary gains, are equitably shared amongst all.
Environmental Impact Assessments: The treaty requires commercial or other activities that can have significant impacts on the marine ecosystem or can cause large-scale pollution in the oceans to undergo an environmental impact assessment to be done, and the results of this exercise have to be shared with the international community.
Capacity Building and Technology Transfer: The treaty lays emphasis on capacity building and technology transfer, especially for small island states and landlocked nations, to meaningfully participate in the conservation efforts, or to take benefits from the useful exploitation of marine resources.
Access- and benefit-sharing committee: It will be formed to frame guidelines for developing countries’ access to benefits from the commercialisation of resources extracted from the ocean.
Rights of Indigenous people and local communities: marine resources in areas beyond national jurisdiction can only be accessed with their free, prior and informed consent or approval and involvement.
What are the advantages of the High Seas Treaty?
Promotes cooperation: The High Seas Treaty promotes cooperation among nations in the use and management of the oceans and seas. It provides a legal framework that allows nations to work together to address common challenges and ensure the sustainable use of marine resources.
Protects the marine environment: The treaty includes provisions that require nations to protect the marine environment from pollution and other harmful activities. This helps to ensure that the ocean remains a healthy and productive ecosystem.
Provides legal certainty: The High Seas Treaty provides a clear and comprehensive legal framework for the use and management of the oceans and seas. It clarifies the rights and obligations of coastal states, flag states, and other actors in the marine environment, promoting legal certainty and reducing the likelihood of conflicts.
Promotes economic development: The High Seas Treaty promotes economic development by establishing rules and principles for the sustainable use of marine resources. It provides a legal framework for the exploration and exploitation of mineral resources in the international seabed area and the conservation and management of living resources such as fish stocks.
Resolves disputes: The treaty provides a mechanism for resolving disputes between nations over the use of the ocean and its resources. This helps to prevent conflicts between nations and promotes peaceful cooperation in the management of the ocean.
Facilitates scientific research: The treaty recognizes the importance of scientific research in the management of the ocean and facilitates international cooperation in this area. It allows for the free exchange of scientific information and promotes the development of marine science and technology.
What are the challenges in implementing the High Seas Treaty?
Fishing and industrial expansion: The treaty does not adequately address threats to ocean biodiversity posed by fishing and deep-sea mining.
Social inclusivity: The treaty focuses on the fair and equitable sharing of genetic resources, but does not address the sharing of other resources.
Enforcement: There is no identified international enforcement agency to monitor and enforce the treaty’s regulations, and no financial commitment has been negotiated.
Negotiations: The treaty is the result of 20 years of negotiations, and the details of major provisions, including environmental impact assessments and mobilization of conservation funds, are still to be worked out.
Unaddressed issues: The mechanisms for policing protected areas, the fate of heavily polluting projects, and dispute resolution remain unaddressed.
Ratification: The process of ratifying the treaty is expected to be difficult and time-consuming, as seen with UNCLOS and the Kyoto Protocol.
Conflicting interests: Conflicting interests among coastal states, flag states, and other actors can impede the effective implementation of the treaty’s provisions.
What are the implications of the High Seas treaty for India?
Territorial waters: The treaty establishes a framework for the delineation of maritime boundaries and the extent of territorial waters. This has an effect on India’s territorial waters, especially when it comes to maritime disputes with Pakistan, Bangladesh, and Sri Lanka.
Political stability: By implementing vessel-monitoring systems throughout international fishing operations, the High Seas treaty could help secure fisheries and promote political stability.
Marine resources: The treaty sets rules for the conservation and management of marine resources, such as fisheries and minerals. This has implications for India’s coastal and offshore fisheries and its exploration and exploitation of mineral resources in the international seabed area.
Sustainable “Blue Economy”: By regulating national and international fishing efforts within and outside Exclusive Economic Zones (EEZ), the High Seas Treaty could help secure sustainable fisheries and a “Blue Economy”.
Pollution in the ocean: The treaty has rules to stop, reduce, and control pollution in the ocean. This has an effect on India’s efforts to clean up pollution in the ocean, such as oil spills and dumping trash in the Indian Ocean.
Security at sea: The treaty has rules about security at sea, including ways to stop piracy and other illegal activities at sea. This could affect India’s efforts to keep the seas in the Indian Ocean safe, like when it takes part in international naval operations.
Scientific research: The treaty encourages scientific research in the marine environment and makes it legal for scientists to share information freely. This affects India’s marine science research and its ability to take part in international research projects.
What should be done?
The treaty needs to be officially adopted and become effective once it is legally passed in at least 60 countries.
To protect ocean life and ourselves, everyone across all sectors must work together to celebrate, implement and monitor the effectiveness of the new High Seas Treaty.
Developed countries will be required to give yearly contributions to the special and voluntary funds created to assist developing countries in implementing the treaty.
Although the agreement is a positive step forward, states and existing organizations need to take additional actions to ensure its success.
Sources: Indian Express (Article 1 and Article 2), The Hindu, Tribune, DTE and NPR
Syllabus: GS 2: International Relations – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Abolition is the way: On the higher judiciary’s move on the death penalty
Contents
Source: The post is based on the article “Abolition is the way: On the higher judiciary’s move on the death penalty” published in The Hindu on 23rd March 2023.
Syllabus: GS – 2: mechanisms, laws, institutions and Bodies constituted for the protection and betterment of vulnerable sections.
Relevance: About death sentences.
News: The Supreme Court has asked the Centre to provide data which may point to less painful, more dignified and socially acceptable methods to carry out death sentences other than death by hanging.
What was the case about and What is the Centre’s stand on death by hanging?
Read here: SC Bench seeks data on alternatives to hanging |
What are the observations of the SC on death sentences?
Bachan Singh vs State of Punjab (1980) case: The court upheld the death penalty, but limited it to the ‘rarest of rare cases’,
Deena Dayal vs Union of India And Others (1983) case: The court upheld the executing method by ruling that hanging is “as painless as possible” and “causes no greater pain than any other known method”.
Evolved clemency jurisprudence: This makes decisions on mercy petitions justiciable and penalises undue delay in disposing of mercy pleas by commuting death sentences to life.
What are the recommendations of the Law Commission on death sentences?
The 35th Report of the Law Commission (1967) noted electrocution, use of a gas chamber and lethal injection can be considered as less painful. However, the commission was not in a position to come to a conclusion. So, it refrained from recommending any change.
What should be done on the question of death sentences?
Humanise the approach further: Instead of debating the manner of execution, a wider debate on abolishing the death penalty should be carried out. This is because any form of execution is a fall from humaneness, offends human dignity and perpetrates cruelty.
If eliminating cruelty and indignity is the aim, abolition of death sentences is the answer.
GS PAPER - 3
Privatized Air India’s takeoff can lead other PSUs to thrive as well
Contents
Source: The post is based on the article “Privatized Air India’s takeoff can lead other PSUs to thrive as well”published in Mint on 23rdMarch 2023.
Syllabus: GS 3 –Economy – Mobilisation of Resources
Relevance: Privatization of the PSUs
News: Air India was completely privatized in January 2022. The airline has recently placed the biggest order of aircraft in India’s aviation history. The article discusses how privatization can benefit and improve the functioning of PSUs.
About the Privatization of Air India
What are the benefits of privatizing Air India?
Air India after its privatization had ordered 470 new aircraft. This would create around 70,000 direct jobs and thousands of indirect jobs.
It will also benefit air travellers to get newer routes, have cheaper fares and better overall service.
Looking at the orders of Air India, other competitor airline might also order more than 1,000 aircraftsoon. This will ultimately benefit the economy.
This shows that privatization has benefited the airlines in all aspects and hence, other PSUs should also be privatized on the same lines.
What steps can be taken by the government to privatize other PSUs?
Privatization has not been an easy or popular decision. Governments try to play safe due to public sentiment. Therefore, an alternative route can be taken.
The government should shift from privatization towards corporatization, i.e., there should be a shift from a 100% sale of government assets towards strategic disinvestments.
This corporatization can be done by listing the shares of the PSUs in the stock market.
This would providea good price for shares, protect the government against short-term price swings as well as increase the time period of volatility in the equity market.
The shares of PSUs should be distributed to the general public, with no individualor entity able to possess more than a 10% ownership. This approach of corporatization may be more transparent and practical to execute.
As soon as the government’s share in a PSU falls below 50%, it becomes a private corporation with an independent board and professional management and free of the 4Cs—CAG, CVC, CBI, and Courts.
The government can then continue to sell the remaining of its ownership at a premium until it has totally vacated the firm once it has been privatized.
For employees of those PSUs, a stock option offers with a promise from the management of not being laid off can be made.
This method of corporatization would benefit both the government as well as employees of the PSUs. Some of the examples of companies that were privatized in this way are British Airways, ICICI Bank, etc.
What can be the way ahead?
The government can start considering the corporatizing of those PSUs first in which it has low shares such as Concor (54.8%), Bharat Petroleum Corp Ltd (53%), Indian Oil Corp Ltd (51.5%), and BEML (54%).
The government should consider corporatizing its PSUs since there is strong investor demand for Indian assets, both international and local, institutional and retail.
This would help the government to earn good revenues, which it can invest in infrastructure and the social sector.
The old pension scheme as a burden on the poor
Source- The post is based on the article “The old pension scheme as a burden on the poor” published in “The Hindu” on 23rd March 2023.
Syllabus: GS3- Economy
Relevance– Issues related to public finances
News– The employees of some state governments are demanding the return to OPS. Some states like Rajasthan and Himachal have introduced OPS.
What are the challenges related to the introduction of OPS?
Economic status of government employees– The Sixth Pay Commission had substantially increasedthe basic salary of government employees to cover pension contributions. The basic monthly salary of a Class 4 employee as per seventh pay norm is ₹25,000.
The World Inequality Report 2022 estimated the average monthly income of the bottom 50% of the population to be ₹4,468, whereas it is ₹14,669.7 for the middle 40%. The salary of a government employee is higher than the income of more than 90% of the population.
Thus, the OPS acts as a regressive redistribution mechanism that favours better off classes.
Rising pension liabilities– The pension liabilities of the government increased due to a substantial hike under the Sixth pay matrix to pay for OPS for existing employees. As a result, pension liabilities substantially increased to 9% of total States expenditure. They are expected to increase in the future.
The pension liabilities of States account for 1.2% of GDP as on 2021-22. From 2004 to 2019, the pension expenditure of States registered an average annual growth of 16%.The aggregate receipts of State governments had an average growth of a mere 13.41%.
Assuming this rate constant, the share of pension expenditure will account for 14.7% of total State expenditures by 2040, and 19.4% by 2050.
Burden on the poor– Many State governments have yet to implement the Seventh pay norms, whereas some States have reportedly not paid arrears of the Sixth pay. Governments at the State level do not have fiscal autonomy.
Currently, the bottom 50% of the population bears the burden of indirect taxation six times more than their income. Due to the OPS, the bottom of the pyramid population has to bear the burden of OPS expenditure. It will push them into destitution and abject poverty.
OPS will create expenditure challenges for providing public goods. It will deprive a large population of basic necessities.
What is the way forward for resolving the pension issues of government employees?
Opposition to the OPS should not be a weapon for downsizing the government. It should be used to argue for a more equitable distribution of resources and universal provisions of public goods.
A participatory pension for government employees will provide a more egalitarian outcome. To protect employees from the vagaries of the market, the government can tweak the NPS to provide a guaranteed monthly return.
Administrative reforms are required to address unequal pay among various ranks of employees.
Government employees as a group have a voice and easy access to decision making. They can demandrationalisation of political executives’ pensions and profligacy.
They can also exert influence to introduce progressive taxation for the top 10% to address poverty and growing inequality.
Tremors From Himalayas – Chardham Project work in high-risk seismic zones can put tremendous pressure on a super-sensitive ecological area
Contents
Source: The post is based on the article “Tremors From Himalayas – Chardham Project work in high-risk seismic zones can put tremendous pressure on a super-sensitive ecological area” published in The Times of India on 23rd March 2023.
Syllabus: GS – 3: Disaster Management.
Relevance: About widening roads in Char dham.
News: Recently, the National Capital Region felt long-lasting tremors. This is a cause of worry as much of the North is categorised under various risk-prone seismic zones.
Why North India is more vulnerable to earthquakes?
North India lies in a major geological faultline, the Main Central Thrust Line. This is formed when the Indian (tectonic) plate is pushed under the Eurasian plate. This is categorised under the highest seismic zones 4 and 5.
About the Chardham Project work in high-risk seismic zone
Bhagirathi ecosensitive zone is a 100-km stretch of valley and sheer cliff through which Ganga flows from Gaumukh glacier. The government is starting work on widening the road to 12m width as part of its Chardham Pariyojana (CDP).
The SC bench led by Justice Nariman formed a high-powered committee (HPC) to ensure the project conformed to the Himalayan terrain. The committee recommended a narrower “intermediate width”.
Accordingly, the ministry of road transport and highways (MoRTH) had amended the width reducing it to “intermediate width”. But later, the CDP was changed into a defence project. Thus nullifying the committee recommendations. This wider road requires a ‘right of way’ double that of an intermediate width.
Read more: SC approves widening of three Char Dham highways |
What are the concerns in widening roads in Char dham?
Neglected HPC recommendations: HPC members were unanimous that “road widening activities should only be undertaken after… environment impact assessment and mitigation measures” are done. Further, it recommended, the “felling of deodar trees should be avoided”.
But 8,000 deodars have been demarcated for felling in Bhagirathi zone alone.
Increased landslide: An unprecedented number of 200+ landslides have been reported on the CDP route since hill-cutting began.
Not followed other protocols: The environment ministry’s latest guidelines for highways in border areas mandate slope assessment, which has not been done. Even if it is done, the report is not in the public domain yet.
Read more: Explained: What’s in Uttarakhand’s Char Dham Act, and why it is being withdrawn |
What should be done?
Follow checks and balances: Violation of checks and balances has resulted in the flooding of Kedarnath, Asi Ganga flooding of 2012, the Rishiganga floods of 2021, the Joshimath subsidence and other disasters. So, the government should strictly follow the conditions.
Follow farsighted approach: Building infrastructure in the Himalayas needs a carefully considered, farsighted, cautious and gentle approach.
What is the IPCC synthesis report and what does it say?
Source: The post is based on the article “What is the IPCC synthesis report and what does it say?” and “Final solution – Concerted effort alone can save earth from worst of climate change effects” published in The Hindu on 23rd March 2023.
Syllabus: GS – 3: Environment and Bio-diversity Conservation.
Relevance: About IPCC Synthesis Report for the Sixth Assessment Cycle.
News: Recently, the Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report for the Sixth Assessment Cycle.
What is a Synthesis Report?
The Synthesis Report is a compilation of the main findings of the IPCC’s Sixth Assessment Report, based on results from three Working Groups (WGs). WG I evaluated the physical science basis of climate change; WG II evaluated the impacts, adaptation, and vulnerability, and WG III evaluated the mitigation.
Must read: Synthesis Report: IPCC meet in Switzerland: The significance, likely impact |
About the key findings and suggestions of the IPCC Synthesis Report for the Sixth Assessment Cycle
-Climate justice is crucial because those who have contributed least to climate change are being disproportionately affected.
-The planet’s best chance to keep temperatures below 1.5°C is to ensure greenhouse gas emissions are reduced to 48% of 2019 levels by 2030 and 99% by 2050.
-Paris Agreement targets cannot be met without negative emissions, or carbon dioxide removal and would entail untested technologies that now appear to be impractically expensive
Must read: IPCC Synthesis Report of the Sixth Assessment Cycle (AR6) – Explained, pointwise |
What suggestions are given by the IPCC Synthesis Report for the Sixth Assessment Cycle?
Focus on climate resilient development: This not only mitigate the effects of climate change but also provide wider benefits.
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