9 PM UPSC Current Affairs Articles 15th June, 2024

Mains Oriented Articles

GS PAPER - 2

Issue with Meloni’s Privatization Plan

Source: The post issue with Meloni’s Privatization Plan has been created, based on the article “Economic shortsightedness is jeopardising Italy’s G7 ambitions” published in “Business standard” on 15th June 2024

UPSC Syllabus Topic: GS Paper 2-international relation-Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

Context: The article discusses Italy’s hosting of the G7 summit, Prime Minister Giorgia Meloni’s Africa-centered development plan, and the contradiction in her government’s privatization strategy. It criticizes the short-term approach, lack of innovation, and failure to honour Mattei’s legacy.

For detailed information on Significance of G7 summit read this article here

What is the Mattei Plan?

1. The Mattei Plan is an ambitious development initiative unveiled by Italian Prime Minister Giorgia Meloni, focusing on partnerships with African nations.
2. Named after Enrico Mattei, the founder of Italian oil giant Eni, the plan draws inspiration from Mattei’s 1950s policies, which disrupted the oil industry by offering more equitable profit-sharing agreements to developing countries.
3. Key Objectives: The plan targets international development with a focus on energy, growth, and immigration.
4. Historical Context: In the past, Mattei enabled developing economies to retain 75% of oil profits, contrasting with the less favorable terms from other oil companies.
5. Recent Unveiling: This initiative was introduced at the Italy-Africa Summit earlier this year, reflecting a continuation of Italy’s engagement with Africa.

What is the Issue with Meloni’s Privatization Plan?

1. Focus on Short-Term Debt Reduction: Giorgia Meloni’s privatization plan aims to reduce Italy’s public debt by selling shares of state-owned enterprises, like Eni, valued at €20 billion ($21 billion). This strategy emphasizes immediate debt relief over sustainable economic growth.
2. Reduction in Research and Development: Historical data shows that privatization leads to decreased investment in innovation. For example, after privatizing, Telecom Italia reduced its R&D spending from 2% of its revenues to just 0.4%.
3. Economic Short-Termism: The plan reflects a broader trend of prioritizing short-term financial outcomes at the expense of long-term industrial strategy and economic health.

What are the Broader Implications of these Policies?

1. Impact on Industrial Strategy: The lack of a coherent, mission-oriented industrial strategy hinders the development of sustainable industries and technological capabilities, as seen in the decline of strategic sectors post-privatization in the 1990s.
2. Global Trend of Austerity: The adherence to outdated fiscal rules that prioritize asset sales over industrial innovation aligns with a broader global trend criticized by the IMF for not effectively reducing debt-to-GDP ratios and stifling economic growth.
3. Undermining Private Capital Influx: The criticism of Meloni’s plan suggests it misses the opportunity to use public investment as a tool to attract private capital, a mechanism known to stimulate economic growth when public investments are increased.
   Question for practice:

Examine how Giorgia Meloni’s privatization plan in Italy contrasts with the goals and principles of the Mattei Plan for African development and its historical context.

Critics of the National Education Policy (NEP)

Source: The post critics of the National Education Policy (NEP) has been created, based on the article “Why NEP implementation has been a failure” published in “Indian Express” on 15th June 2024

UPSC Syllabus Topic: GS Paper 2– Governance – Issues relating to development and management of Social Sector/Services relating to Education

Context: The article criticizes the NEP’s structure, arguing it dilutes core subjects by introducing many peripheral courses. It claims this creates bureaucratic burdens and reduces the depth of learning, ultimately failing to foster true academic and critical thinking skills.

For detailed information on National Education Policy (NEP) read this article here

What are the major concerns related to the National Education Policy (NEP)?

1. Standardized Credit System: NEP introduces a credit-based, eight-semester system intended for easier credit transfer. This approach is criticized for prioritizing standardization over educational depth.
2. Reduction in Syllabus Content: Under NEP, syllabi have been truncated. For example, Walt Whitman’s poem “Passage to India” is now taught with only 68 lines instead of the full 255 lines, limiting comprehensive understanding.
3. Dilution of Core Subjects: At St Xavier’s University, Kolkata, only one major core subject is taught per semester in Economics Honours, alongside several non-core subjects. This dilution may lead to insufficient knowledge in the core field.
4. Administrative Overload: NEP requires numerous exams and continuous assessments per semester, adding significant bureaucratic and administrative burdens for both students and educators.

Way forward

The way forward involves reevaluating NEP’s credit-based system to focus more on comprehensive core subject education. Reducing the number of non-core courses can improve students’ depth of knowledge and academic standards. Stakeholders’ feedback should guide meaningful revisions for effective higher education.

Question for practice:

Examine how the National Education Policy (NEP) impacts the depth of learning and academic standards, focusing on the criticism regarding the dilution of core subjects and introduction of peripheral courses.

Challenges faced by Indian companies, due to amendment in the foreign investment rules

Source: The post challenges faced by Indian companies, due to amendment in the foreign investment rules has been created, based on the article “India growth story has a ‘beneficial ownership’ hurdle” published in “The Hindu” on 15th June 2024

UPSC Syllabus Topic: GS Paper 2 – Governance- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: The article discusses challenges faced by Indian companies, especially startups, due to a 2019 amendment in the foreign investment rules which require (PN3 Requirement) government approval for investments from countries bordering India.

For details information on What is PN3 guidelines read this article here

What are the Challenges with the Current Foreign Investment Rules?

1.Unclear Definition: The term ‘beneficial owner’ is not defined, leading to confusion. This has led to conservative interpretations by the Reserve Bank of India (RBI).

2.Impact on FOCCs: FOCCs face restrictions similar to those imposed on non-residents. This has caused issues with downstream investments, as seen in 2023 when many FOCCs received notices from the RBI regarding their compliance.

3.Approval Delays: The government approval process is slow and has a high rejection rate. For example, proposals worth ₹50,000 crore are pending, withdrawn, or rejected, with 201 applications rejected in the past three years.

4.High Penalties: Fines for non-compliance can be up to three times the investment, risking insolvency for startups. These companies often receive investments beyond their revenue, making fines particularly damaging.

What should be done?

1. Indemnity Challenge: Indian companies should require foreign investors to provide representations backed by indemnities about their compliance with the PN3 Requirement. This could reduce the risk for Indian companies but may discourage foreign investment due to potential liabilities.
2. Beneficial Owners: Clearly define ‘beneficial owners’ to include specific ownership thresholds, ranging from 10% to 25%. Include control tests that consider rights overboard meetings, veto powers, and operational matters. For example, Foreign Owned or Controlled Companies (FOCCs) faced RBI notices about investments due to ambiguous definitions.
3. Consultation Mechanism: Introduce a time-bound consultation process with regulatory authorities to clarify control-conferring clauses in investment agreements. This mechanism would help resolve ambiguities like Indian competition law. For Example, Industry practices and legal advice on beneficial ownership have become conservative due to the RBI’s strict interpretations.

Question for practice:

Discuss the potential solutions to mitigate challenges faced by Indian companies under the 2020 foreign investment rules.

GS PAPER - 3

High food price despite slight decrease in inflation

Source: The post high food price despite slight decrease in inflation has been created, based on the article “Food factor: Policymakers must keep in mind that inflation hits the poor the hardest” published in “The Hindu” on 15th June 2024

UPSC Syllabus Topic: GS Paper 3 – Indian Economy- Growth and Development

Context: The article discusses how food prices in India, especially for vegetables and pulses, remained high last month despite a slight overall decrease in inflation. Prices for items like tomatoes, onions, and potatoes increased significantly both at retail and wholesale levels.

For detailed information on Inflation in India- Reasons and Solutions read this article here

What Is the Current Status of Retail Inflation?

Retail inflation eased to a 12-month low of 4.75% in May.

Food price inflation remains high at 8.69%, driven by vegetables and pulses.

Vegetable inflation stayed above 27% for six months, reaching 27.3% in May.

Prices for tomatoes, onions, and potatoes increased by 1.5%, 0.5%, and 15.1% respectively.

Cereal prices rose, with rice up 13%, wheat 5.7%, and wheat flour 4.7% year-on-year.

Pulse prices, including gram dal, tur, urad, and moong, increased by 17%, 27%, 13%, and 8.5% respectively.

What are the concerns related to inflation in India?

1. Urban Areas Hit Harder: Urban consumers are experiencing higher food inflation, with a recent high of 8.83% in cities and towns.
2. Impact of Weather on Prices: The India Meteorological Department noted a rainfall deficit of 12% since the start of June, which could influence future food prices, despite predictions of an ‘above normal’ monsoon.

Question for practice:

Discuss the impact of recent inflation trends on vegetable and pulse prices in India.

Prelims Oriented Articles (Factly)

Divya Drishti

Source– This post on Divya Drishti is based on the article “DRDO Unveils the Power of AI” published in “PIB” on 14th June 2024.

Why in the News?

The Ingenious Research Solutions Pvt Ltd., a start-up developed an AI tool named ‘Divya Drishti.’ The development of ‘Divya Drishti’ was supported by the Centre for Artificial Intelligence & Robotics (CAIR), a DRDO laboratory based in Bangalore.

About ‘Divya Drishti’

1. ‘Divya Drishti’ is an AI tool which integrates facial recognition with immutable physiological parameters, such as gait and skeleton, to create a robust biometric authentication system.

2. This innovation follows Dr. Verma’s victory in the Dare to Dream Innovation Contest 2.0, organized by the Defence Research and Development Organisation (DRDO).

3. The tool’s dual approach of combining facial recognition with gait analysis minimizes the risk of false positives and identity fraud, ensuring a higher level of precision in identification.

4. The AI tool is applicable across various sectors, including Defence, Law Enforcement, Corporate, and Public Infrastructure.

5. The development under the Technology Development Fund (TDF) exemplifies DRDO’s commitment to promoting start-ups in the defence and aerospace industries, aligning with the vision of ‘Aatmanirbhar Bharat.’

About Centre for Artificial Intelligence & Robotics (CAIR)

1. CAIR is a premier DRDO laboratory dedicated to research and development in Artificial Intelligence, Robotics, Command and Control, and Information and Communication Security.

2. CAIR develops mission-critical products for secure battlefield communication and information management systems, enhancing the effectiveness and robustness of battlespace information systems.

3. The laboratory proactively addresses emerging cybersecurity challenges, ensuring robust defenses against evolving threats.

4. CAIR leverages advancements in cognitive and artificial intelligence systems to increase the autonomy of unmanned systems, pushing technological boundaries in complex scenarios.

5. CAIR plays a crucial role in driving national debates on technology policy, emphasizing the importance of preserving national security and achieving self-sufficiency.

UPSC Syllabus: Science and technology

National Institute of Indian Medical Heritage (NIIMH)

Source– This post on National Institute of Indian Medical Heritage (NIIMH) is based on the article “NIIMH is the first WHO Collaborating Centre for “Fundamental and Literary Research in Traditional Medicine” published in “PIB” on 14th June 2024.

Why in the News?

Recently, The World Health Organization (WHO) has designated the National Institute of Indian Medical Heritage (NIIMH), Hyderabad, as a WHO Collaborating Centre (CC) for “Fundamental and Literary Research in Traditional Medicine” (CC IND-177).

About NIIMH as Collaborating Centre for Traditional Medicine Research

1.  The World Health Organization (WHO) has designated the National Institute of Indian Medical Heritage (NIIMH), Hyderabad as a WHO Collaborating Centre (CC) for “Fundamental and Literary Research in Traditional Medicine” (CC IND-177).

2. Duration: This recognition is granted for four years, starting from June 3, 2024.

3. India hosts approximately 58 WHO Collaborating Centres across various disciplines of biomedicine and allied sciences.

4. CCRAS-NIIMH, Hyderabad, is the third WHO Collaborating Centre in the domain of Traditional Medicine in India, alongside the Institute for Teaching & Research in Ayurveda, Jamnagar, and the Morarji Desai National Institute of Yoga (MDNIY), New Delhi.

5.  As the first WHO Collaborating Centre for “Fundamental and Literary Research in Traditional Medicine,” NIIMH will assist WHO in standardizing terminologies for Ayurveda, Unani, Siddha, and Sowa-Rigpa, and updating the Traditional Medicine Module-II for the Eleventh edition of the International Classification of Diseases (ICD-11).

6. The WHO Collaborating Centre will support Member States in developing research methodologies for Traditional Medicine.

About National Institute of Indian Medical Heritage (NIIMH)

1. NIIMH was founded in 1956.

2. It is located in Gaddiannaram, Dilsuknagar, Hyderabad. It was previously known as the National Center of Indian Medical Heritage (NCIMH).

3. It operates under the administrative control of the Central Council for Research in Ayurvedic Sciences (CCRAS), Ministry of AYUSH, Government of India.

4. It is dedicated to documenting and showcasing medico-historical research in Ayurveda, Yoga Naturopathy, Unani, Siddha, Sowa-Rigpa, Homoeopathy, Biomedicine, and related healthcare disciplines in India.

5. It is known for its extensive collection of research materials on the History of Medicine, making it accessible globally.

6. It supplies resource materials for historians, scientists, and researchers interested in the historical aspects of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, Homoeopathy, and Sowa Rigpa) along with Modern Medicine.

7. It is the only institution of its kind in Southeast Asia, dedicated to the medico-historical research of traditional and modern medicine.

8. NIIMH houses more than 500 physical manuscripts, alongside the Medical Heritage Museum and Library, featuring rare books and manuscripts dating back to the 15th century AD.

UPSC Syllabus: Polity and nation

Iskander-M missile system

Source– This post on Iskander-M is based on the article “ On Cam: Putin’s Iskander Missile Strikes Ukrainian Airbase; Su-27 Jet & S-300 System Hit” published in “Hindustan Times” on 14th June 2024.

Why in the News?

Recently, Russia claimed that it used the nuclear-capable Iskander-M missile system to target the Ukrainian military airbase in Mirgorod.

About Iskander-M

1.  The Iskander (Western reporting name: SS-26 Stone) is a road-mobile short-range ballistic missile system developed by Russia.

2.  It entered Russian service in 2006. It is designed for tactical strikes on small, high-value land targets.

3. Features

i) The missile is 7.3 meters long, 0.92 meters in diameter, and has a launch weight of 3,750 kilograms.

ii)  It has a range of 400-500 km and uses both inertial and optical guidance systems.

iii) It can carry conventional and nuclear warheads up to 700 kg.

iv) Missiles can travel at up to seven times the speed of sound (Mach 7) and can reach an altitude of more than 30 miles.

v) It employs a maneuverable re-entry vehicle (MaRV) and decoys to defeat theater missile defense systems.

vi) It is equipped with various systems for in-flight correction and self-targeting, allowing the missile to overcome missile defense systems.

vii) It has various variants such as Iskander-E and Iskander-K.

Olympus Mons

Source– This post on Olympus Mons is based on the article “Olympus Mons: The largest volcano in the solar system” published in “PIB” on 14th June 2024.

Why in the News?

Recently, Scientists have discovered frost on Mars’ tallest volcano, Olympus Mons, revealing an active water cycle on the Red Planet.

About Olympus Mons

1. Olympus Mons is a shield volcano situated in Mars’ western hemisphere.

2.  It is the highest point on Mars and the largest known volcano in the solar system, standing at 16 miles (24 kilometers) high, which is about three times taller than Mt. Everest.

3. Olympus Mons is 340 miles (550 kilometers) wide, covering an area larger than the entire chain of Hawaiian Islands.

4. Olympus Mons is approximately 3.5 billion years old, indicating it formed early in Mars’ history. It has a very flat structure with slopes ranging from only 2 to 5 degrees.

6.  The summit has a large depression called a caldera, spanning 50 miles (80 kilometers) wide. The summit caldera consists of several overlapping pits created by different eruptive phases. It has multiple pits.

About Shield Volcanoes

1. Shield volcanoes are the largest volcanoes on Earth.

2. They have broad, gentle slopes rather than soaring, conical peaks like composite volcanoes.

3. They are almost exclusively composed of basalt which is a type of lava that is very fluid when erupted.

4. Shield volcanoes are built by repeated eruptions over vast periods of time.

5. Eruptions are usually low-explosivity, characterized by lava fountaining that forms cinder cones and spatter cones at the vent. Eruptions can become explosive if water gets into the vent.

6. Examples: The Hawaiian shield volcanoes are the most well-known examples of this type of volcano.

UPSC Syllabus: World Geography

CSIR-ASPIRE Scheme

Source– This post on CSIR-ASPIRE Scheme is based on the article “300 women Scientists to get research grants for 3 years under CSIR- ASPIRE scheme” says Union Minister Dr. Jitendra Singh”  published in “PIB” on 14th June 2024.

Why in the News?

300 women scientists to receive research grants for three years under the CSIR-ASPIRE scheme.

About CSIR-ASPIRE Scheme

1. About: The ASPIRE scheme is an initiative by the Council of Scientific and Industrial Research (CSIR) to provide research grants to women scientists and technologists.

2. Aim: The scheme aims to support women in conducting research in various fields of science and technology. The scheme also aims to promote and encourage women to participate in scientific research and technology development in India.

3. Criteria: The CSIR ASPIRE Women Research Grant is open to women scientists and technologists who are Indian citizens and have a PhD degree in any area of science or technology.

4. The scheme is also open to women:

i) who have completed their PhD and have at least three years of research experience.

ii) scientists and technologists who have taken a career break due to family responsibilities and want to resume their research careers.

Benefits of the ASPIRE Scheme

1. Financial Support: The ASPIRE scheme provides research grants to women scientists and technologists for conducting research in various fields of science and technology.

2. International Exposure: The scheme also offers funding for international travel, enabling women scientists to attend conferences and workshops abroad, facilitating global exposure and collaboration.

3. Participation in Research: The CSIR ASPIRE Women Research Grant aims to promote and encourage women to participate in scientific research and technology development in India.

4. Support for Underrepresented Areas: The scheme focuses on supporting women in conducting research in areas where they are traditionally underrepresented, helping to bridge the gender gap in these fields.

About One Week One Lab initiative

1. The ‘One Week One Lab’ initiative is a countrywide campaign of the Council of Scientific and Industrial Research (CSIR) in India.

2. The campaign aims to showcase the technological breakthroughs and scientific innovations of CSIR labs across the country.

3. There are 37 CSIR labs dedicated to different areas of work, which will have an opportunity to present their achievements and inform stakeholders about their work.

UPSC Syllabus: Schemes and programme

Global Gender Gap Report 2024

Source– This post on Global Gender Gap Report 2024 is based on the article “Gender Gap Report 2024: India fares worse than Bangladesh, Nepal, Sri Lanka, Bhutan; scores low in political parity indices”  published in “Down to Earth” on 14th June 2024.

Why in the News?

The World Economic Forum (WEF) has released the Global Gender Gap Report 2024, highlighting persistent gender inequality across various sectors worldwide.

About Global Gender Gap Report 2024

1. The Global Gender Gap Report 2024 is published by the World Economic Forum.

2. It assesses gender parity across four key dimensions: Economic Participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment.

3. It is the longest-standing index tracking the progress of numerous countries’ efforts towards closing these gaps over time since its inception in 2006.

Key findings of the report

1. The global gender gap score for all 146 countries included in this edition stands at 68.5%.

2. Among the 101 countries continuously covered since 2006, the gap has also improved by +0.1 points to reach 68.6%.

3. Despite progress, no country has achieved full gender parity. However, 97% of economies included in this edition have closed more than 60% of their gender gap (compared to 85% in 2006).

5. Top-Ranking Countries:

i) Iceland maintained its position as the most gender-equal country for the 14th consecutive year, with a gender gap score of 91.2%.

ii) Norway, Finland, and Sweden also rank high, consistently placing in the top five.

About India’s Performance

1.  India is ranked 129 in this year’s index. The ranking reflects a slight regression compared to the previous edition.

2. The decline is primarily due to small decreases in ‘Educational Attainment’ and ‘Political Empowerment.’ Despite the overall decline, there was a slight improvement in ‘Economic Participation and Opportunity.’

3. India ranks the third-lowest among South Asian economies. India fares worse than Bangladesh, Nepal, Sri Lanka, and Bhutan.

UPSC Syllabus: Reports