9 PM Daily Brief – 19 December 2015

A brief of newspaper articles for the day bearing
relevance
to Civil Services preparation


Science & Technology 


[1]. Genome of the Asian elephant sequenced for the first time in India

What has happened?

The genome of the Asian elephant has been sequenced perhaps for the first time in India.

They have also for the first time mapped the ‘transcriptome’ — that is, a section of genes active in a particular cell — for the blood cells of the species.

Who has done?

A team of scientists from the city-based Centre for Ecological Science at the Indian Institute of Science (IISc) and the Indian Institute of Science Education and Research (IISER), Pune.

Outcome of the research:-

There are over 4,000 olfactory receptors in the Asian elephant, double that of a dog which is considered to have the sharpest sense of smell.

Over 95 per cent of the genes were found to be similar to the African elephant; but there are 1,500 bases that are unique to the Asian elephant including those responsible for the heightened sense of smell.

Like the African elephant, the Asian elephant, too, has a particular gene — known to inhibit cancer

The genome sequence eventually builds a foundation (or, as the researchers say, “guidebook”) for further investigation into the genetic make-up of an elephant, its evolutionary path, as well as the possible conservation measures.

What is a transcriptome?

The human genome is made up of DNA (deoxyribonucleic acid), a long, winding molecule that contains the instructions needed to build and maintain cells.

These instructions are spelled out in the form of “base pairs” of four different chemicals, organized into 20,000 to 25,000 genes.

For the instructions to be carried out, DNA must be “read” and transcribed – in other words, copied – into RNA (ribonucleic acid).

These gene readouts are called transcripts, and a transcriptome is a collection of all the gene readouts present in a cell.

What is a Genome?

A genome is an organism’s complete set of genetic instructions. Each genome contains all of the information needed to build that organism and allow it to grow and develop.

In humans, a copy of the entire genome—more than 3 billion DNA base pairs—is contained in all cells that have a nucleus.


International Relations


[1]. ‘Neighbourhood first’ on track: Sushma

Context:-

External affairs minister Sushma Swaraj has said that the governement’s  Neighbourhood policy is on track.

She also added that Foreign policy begins on our borders.

Ties with Pakistan have predictably been the most challenging to take forward. However, the recent NSA-level dialogue on security and terrorism and the establishment of a Comprehensive Bilateral Dialogue following my visit to Islamabad now offers a pathway.

Counter views:-

The below reasons are being mentioned by critics to counter the minister’s statement.

  • Nepal is yet to emerge out of the setback of a blockade and bitterness persists in bilateral ties
  • Prime Minister Narendra Modi had to drop the Maldives from a planned Indian Ocean trip
  • Dialogue with Pakistan is yet to begin formally.

While India’s voice was often heard on international platforms, its focus should primarily be in the South Asian region due to its importance to India’s domestic affairs.

What is Neighbourhood First?

Indian government foreign policy will actively focus on improving ties with India’s immediate neighbours, a policy that has since been termed the neighbourhood first policy by the media. The policy emphasises on importance of SAARC and was initiated with invitation to all SAARC nation heads for swearing in ceremony of NDA government in May 2014.


Economic Digest


[1]. Govt. lowers growth outlook, stresses supply-side reforms/Cut Loose on Fiscal Goals, But First Grow

What has happened?

India lowered its GDP growth projection for the current year to between 7-7.5 per cent against the earlier forecast of 8.1-8.5 per cent.

Nominal GDP growth is also slowing down

Unless supply side reforms provide an impetus to growth, real GDP growth next year … is not likely to be significantly greater than this year.

Reasons:-

Sharp decline in exports due to weak global demand

Deficient monsoons affecting farm output

Challenges:-

Fiscal deficit:-

Meeting the fiscal deficit target of 3.9% of GDP will be difficult as low growth will itself raise the deficit target by 0.2 per cent of GDP.

Also high outgo because of Seventh pay and OROP it will be difficult to contain the fiscal deficit.

Tax revenue collection:-

Low growth will also stress tax revenue collection.

Debt to GDP ratio:-

The ratio had been declining over the past 10-12 years, benefiting from the nominal GDP growth exceeding the government’s cost of borrowing.

India’s debt-to-GDP ratio too will cease to decline which in turn will affect India’s macroeconomic stability and vulnerability to external risks.

Measures:-

a) Enhancing public investment

b) Kick-starting stalled projects

c) Revival of investment and growth depends on policy action to ease infrastructure companies of their debt burden and creditors of their bad loans.

d) Creating a favourable tax environment through the implementation of the goods and services tax (GST) and enactment of the bankruptcy code

e) The government needs to worry about the fiscal deficit, but after growth revives. For the real economy to grow, reforms are a must.

What is Debt to GDP ratio?

By comparing what a country owes to what it produces, the debt-to-GDP ratio indicates the country’s ability to pay back its debt.

Often expressed as a percentage, the ratio can be interpreted as the number of years needed to pay back debt if GDP is dedicated entirely to debt repayment.
The higher the debt-to-GDP ratio, the less likely the country will pay its debt back, and the higher its risk of default.

What is Nominal GDP?

A gross domestic product (GDP) figure that has not been adjusted for inflation.

It can be misleading when inflation is not accounted for in the GDP figure because the GDP will appear higher than it actually is.

If the nominal GDP figure has shot up 8% but inflation has been 4%, the real GDP has only increased 4%.

[2]. Sahara, Sharda…Pearl…

Context:-

Citing the examples of various scams of residuary non-banking finance companies (RNBFCs) ,the author points out the loopholes in the regulatory model of the government.

Reasons for such scams:-

a) Investor ignorance and greed and more greed are behind all such schemes.

b) Regulatory powers in India are still fluid and too fragmented

c) High Level Coordination Committee on Financial Markets which was to ensure nothing slipped between the cracks has simply not worked

d) The court process has led to decades of delay during which valuable time has been lost and firms have been allowed to carry on raising money

e) SEBI has just 600 employees, no powers to tap phones and a fraction of the surveillance capacity.

[3]. India’s quest for oil and gas: More questions than answers

What has happened?

Petroleum ministry has decided to offer 69 small oilfields for development through an international bidding process and has floated a consultation paper on the future contours of oil and gas exploration policy.

Consultation paper highlights:-

Uniform licensing policy:-

It proposes common policy for all forms of hydrocarbon resources, ranging from conventional oil and natural gas to unconventional sources like shale oil/gas, coal bed methane, gas hydrates, etc.

Open Acreage Licensing Policy (OALP)

a) It was one of the recommendations of the Kelkar Committee.

b) It will enable upstream companies to bid for any oil and gas block throughout the year without government having to hold an auction.

Sticking points:-

OALP:-

It requires a much firmer stand of the petroleum ministry and the Directorate General of Hydrocarbons (DGH) vis-a-vis the national oil companies (NOCs) ONGC and OIL, in matters relating to acreage on offer and availability of data.

Private companies feel that NOC’s are not willing to give up the acreage allotted to them earlier.

It is felt that those fields allotted under New Exploration Licensing Policy (NELP)  which have not seen any activity should be offered under OALP.

This removes discriminatory treatment favouring NOCs.

The DGH should also develop a strong data repository (another recommendation of the Kelkar Committee) and ensure that all geological data, including from those areas currently or formerly held by the NOCs and other companies, is freely available for inspection and analysis.

Revenue sharing system:-

Despite the Kelkar Committee for continuing with a petroleum profit-sharing arrangement, the petroleum ministry has stuck to revenue-sharing system.

a) It transfers the entire risk burden to the investor.

b) With royalty and a share of gross revenue (net of royalty) having to be paid upfront to the government, private companies will find the risk-weighted returns skewed against them, especially in an era of low oil prices.

c) This could also go against revenue interests of government as windfall gains can be reaped by private company if they find huge resources in an area which is not geographically prospective in the first place.eg:- hydrocarbon discoveries in Bombay High and Rajasthan

Pricing control:-

There will need to be clear policy moves, on the lines suggested by the Kelkar Committee, removing government control over pricing and marketing decisions on gas, so that private producers face no unpleasant surprises from subsequent governments.

Penalty:-

Penalising companies for failure to reach committed production levels goes against the very grain of best petroleum industry practice, given the uncertain behaviour of petroleum reservoirs.

Against International standards:- 

Treating revenues earned from assignment of participating interest as liable for sharing with the government is against the international oil industry principles.

It will inhibit participation of small companies which hope to develop the reservoir and then sell their participating interest to larger companies which are better placed to exploit the reserves.

Conclusion:-

When oil prices are on a downward path, marginal discoveries are unlikely to attract any significant private investment, if the contractual terms offered are less than appetising.

Viewing company motives with suspicion is not the best advertisement for encouraging private investment in a high-risk sector.

Global examples:-

Mexico’s recent experience in failing to enthuse private investors to bid for its shallow-water exploration blocks is a timely reminder of the consequences of low government credibility in the eyes of investors.

Venezuela and Brazil are also paying the price for their past reluctance to engage with private oil companies.

Way forward:-

Petrodollars will not pour into India unless

a) Geologically attractive areas are offered

b) Contractual terms meet investor expectations

c) The operating environment is efficient and hassle-free


 

National


[1]. No legal provision to detain juvenile further

What happened: centre sought a stay on the release of the juvenile perpetrator in Nirbhaya case stating that the boy had been radicalised by another youth (accused in Delhi HC blast) during his stay at the observation home.

Reply by Supreme Court: SC sought an IB report about youth’s radicalisation. Also asked centre’s response on the issue of reformation of juveniles. Pointing to JJ Rules, court refused to detain juvenile further while seeking individual care plan for restoration of juvenile into family and quarterly follow up report which is to be submitted to JJ Board for two years.

[2]. Opposition agrees to clear 6 bills as GST is out of the way

What has happened: Instead of wasting any more time trying to pass the GST Bill, the govt has decided to pass the following bills which have consensus in both the houses by Dec 23.

  1. SC/ST Amendment bill
  2. Appropriation bill
  3. Anti-hijacking bill
  4. Atomic energy amendment bill
  5. Commercial courts ordinances bill
  6. Arbitration and Conciliation Amendment Bill

The govt also conceded a substantive motion to be heard against the role of Governors.

[3]. It was framework pact with NSCN(IM)

Context: Framework Peace accord between Government of India (GoI) and NSCN (IM).

Current Update:

Deal between GoI and NSCN(IM) the Naga insurgents was termed as peace accord by our PM in August. But now the Home minister is terming it as Framework Agreement.

The main interlocutor between GoI and NSCN (IM) and who signed the pact on behalf of the govt, Joint Intelligence Officer Chief R.N.Ravi reiterated that it was not a peace accord but a framework agreement that is still being worked out.


Opinions & Editorials


[1]. After Paris, the Balancing

Context: In the light of the Paris pact, author states the direction in which the policy of Indian government should move in order to implement the key elements of the agreement.

Author states that,

  1. India will be a guiding light to many developing countries and its policy manoeuvres will lead the way for other countries to shape their efforts in balancing economic growth vis-a-vis environmental impact

Author states that India is home to two different realities,

  1. Reality of Aspiration – There is a rising middle class in India that aspires to be rich and believes that being rich will help them mitigate the harmful impacts of environmental change.
  2. Reality of need – On the other hand, India is home to millions of poor people. Poverty is prevalent in large sections of society. The reality of such poverty ridden section is that of need.

The difference here is of need and want. An aspiring middle class wants the luxuries of modern life while poverty affected class needs the basic amenities to make their life work on a daily basis. Their reality originates from need.

Author gives example of government policy wherein,

Reality of Aspiration is dealt with

Recent order of Delhi government mentioning the odd-even number rule is an example of a policy which only takes care of reality of aspiration and ignores the reality of need. Government sees upper middle class aspires to have vehicles but the reality of need has not been ascertained. They have vehicles because public transportation lacks end to end connectivity and the safety issues plaguing women in Delhi.

Reality of need and Aspiration both dealt with

The LED lighting programme is an example wherein both the realities have been dealt with. LED has been branded as an elite product so that an aspiring middle class feels no shame in using it while a modern lighting source is provided to under this programme to address the reality of need. Such efficient lighting sources deal with the reality of need in an effective way. We need such sources to reduce the environmental impact by saving energy.

Conclusion

In the same vein, author concludes that government will have to take decisions that incorporate both the realities. It might mean taking tough decisions but to ensure a sustainable future this needs to be done.


Environment


[1]. Averting Catastrophic Climate Change

Brief 19

By: ForumIAS Editorial Team

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