Following are the Suggested Answers for Mains Marathon, April 25:
- What are heat waves? Why do you think that about 90 per cent of the people that died in India due to severe heat wave over the last four years, were from Andhra Pradesh and Telangana?(GS 1)
गर्मी की लहरें क्या हैं? आप क्यों सोचते हैं कि पिछले चार सालों में गंभीर गर्मी की लहर के कारण भारत में मरने वाले लगभग 9 0 प्रतिशत लोग आंध्र प्रदेश और तेलंगाना के थे?
- Over 4,620 people died in India due to severe heat wave over the last four years, of which only Andhra Pradesh and Telangana accounted for about 92 per cent, according to the government data.
- A heat wave is declared when the temperature crosses 45 degrees Celsius.
- If the temperature rises 4 to 5 degrees above normal, then the condition is termed as a ‘heat wave.’
- With global temperatures on the rise, the instances of heat wave are increasing.
- A heat wave is a prolonged period of unusually and excessively hot weather, which may also be accompanied by high humidity.
- Direct reasons like heat stroke and dehydration are seldom accounted for.
- Both states mostly lie in the rain shadow region of the western ghats resulting in lack of rainfall increasing temperatures.
- The forests in these areas are mostly dry deciduous which does not help when it comes to heat waves.
- Red and black soils which are predominant in these areas are not permeable and heat retentive thus making heat waves severe .
- Lack of governments initiatives to make people aware about the consequences of heat wave especially regarding the renal and respiratory failure.
- Increasing urbanization and ‘heat islands’
- Proximity to ocean and high humidity leads to soaring temperatures.
- Less water flow in rivers like Godavari and Krishna during Summers which does not help in having a moderating effect.
- Presence of vulnerable sections like old aged people are in higher proportions.
With increasing awareness regarding the precautions to be taken about the heat waves especially by the labourers and construction workers,by increasing the afforestation efforts and trying to increase the forest area in these states the counter influence of global warming in the form of heat waves can be tackled to an extent.
- Do you think that the Joint Study Group meeting of the Bangladesh, China, India and Myanmar (BCIM) has generated interest? What is the purpose of the meet?(GS 2)
क्या आपको लगता है कि बांग्लादेश, चीन, भारत और म्यांमार (संयुक्त राज्य अमेरिका) की संयुक्त अध्ययन समूह की बैठक ने रुचि पैदा की है? इस मिलन का उद्देश्य क्या है?
Purpose of the meet:-
- The Joint Study Group, a sub-regional group of the BCIM, met to review economic integration of the region focussing on trade and energy cooperation while facilitating the construction of an economic corridor from Kumning in south-west China to Kolkata.
Joint study group meeting on BCIM generated interest:-
- Visit of 30-member Chinese delegation shows enthusiasm from China amid Arunachal row
- A step in right direction towards implementation of economic corridor which was proposed in 2013
- Active participation and lead by India and participation from Bangladesh and Myanmar.
- This initiative will boost the trade and investment in the region.
- It also connects the North-East region and makes the poor developed region into well-developed region.
- Emphasises on the act east policy encouraging the integration of East Asian countries.
No it did not :-
- Interest generated about the economic corridor in 2013 is missing.
- Change of guard at the centre: Changed government has redefined its priorities in the region. It has not shown much interest yet in this project.
- China’s much touted OBOR initiative has diverted much of the attention of the region towards itself thereby relegating BCIM corridor project to the background to an extent.
- Continuing and heightened tension between India and China in Arunachal Pradesh recently.
- Land and environmental clearances are a problem.
If the government shows keen interest in regularly having joint studies about the corridor it would substantiatlly help the Indian trade and investment in the region.
- Discuss some measures to bring about structural reforms in the world economy. Also, briefly explain the difference between financial cycle and business cycle.(GS 3)
विश्व अर्थव्यवस्था में संरचनात्मक सुधार लाने के लिए कुछ उपायों पर चर्चा करें। साथ ही, वित्तीय चक्र और व्यापारिक चक्र के बीच के अंतर को संक्षेप में बताएं।
Measures to bring structural reforms in the world economy:-
- Most of the policy response after 2009 has focused on demand stimulus. Not enough attention has been paid to balance-sheet repair. Most standard economic models focus on an output gap but pay too little attention to the way capital is misallocated. China is an excellent example of this.This needs rectification.
- The equilibrium rate of interest that is so crucial to much of modern monetary thinking is, in the current global situation, not negative but actually positive. What this means in practical terms is that monetary policy in many countries is too loose.This needs to be corrected.
- Policymakers have to be sensitive to financial conditions being out of line with the underlying economic conditions.
- Loose monetary policy in the years leading to the financial crisis led to both excess leverage as well as the misallocation of capital. Monetary policy cannot be oblivious to financial stability issues.
- Strengthen the functioning of product and labour market by lowering the barriers for entry of private firms,improving quality or quantity of factors of production .
Differences between financial and business cycle:-
- The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. A business cycle is basically defined in terms of periods of expansion or recession.
- In the financial cycle
- financial disruptions tend to be long whereas booms are relatively short
- Equity and house prices cycles are typically longer and more pronounced than credit cycles.
- The features of financial cycles have changed over time; in particular, equity price cycles have becomeshorter.
- Financial cycle that often does not move in sync with the business cycle. The financial cycle tends to be much longer than the business cycle 15-20 years rather than 8-10 years.
- The scope of financial cycle is wider than the business cycle and has deep impact on the global economy.