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  • SWADES (Skilled Workers Arrival Database for Employment Support) Initiative

    The Union Govt. has launched a new initiative SWADES (Skilled Workers Arrival Database for Employment Support) to conduct a skill mapping exercise of the returning citizens under the Vande Bharat Mission.

    In the first go, one may get reminded of the SWADESH Darshan Scheme… Please beware! This SWADES initiative has nothing to do with the tourism sector!

    SWADES Initiative

    • SWADES is a joint initiative of the Ministry of Skill Development & Entrepreneurship (MSDE), the Ministry of Civil Aviation and the Ministry of External Affairs.
    • MSDE’s implementation arm National Skill Development Corporation (NSDC) is supporting the implementation of the project.
    • It aims to create a database of qualified citizens based on their skillsets and experience to tap into and fulfil the demand of Indian and foreign companies.
    • The collected information will be shared with the companies for suitable placement opportunities in the country.
    • The returning citizens are required to fill up an online SWADES Skills Card.
    • The card will facilitate a strategic framework to provide the returning citizens with suitable employment opportunities through discussions with key stakeholders including.

    Data on the returnees

    • Amongst the data gathered so far, the top countries from where the citizens are returning are UAE, Oman, Qatar, Kuwait and Saudi Arabia.
    • As per the skill mapping, these citizens had been primarily employed in sectors such as oil & gas, construction, tourism & hospitality, Automotive and Aviation.
    • The data also suggests that the States which have shown highest returning labour are Kerala, Tamil Nadu, Maharashtra, Karnataka and Telangana.

  • Global Economic Prospects (GEP) 2020 report by World Bank

    The World Bank has released its Global Economic Prospects (GEP) 2020 report.

    Try this PYQ from CSP 2019

    Q.) The Global Competitiveness Report is published by the-

    (a) International Monetary Fund

    (b) United Nations Conference on Trade and Development

    (c) World Economic Forum

    (d) World Bank

    Global Economic Prospects (GEP)

    • GEP is a World Bank Group flagship report that examines global economic developments and prospects, with a special focus on emerging market and developing economies.
    • It is issued twice a year, in January and June.
    • The January edition includes in-depth analyses of topical policy challenges while the June edition contains shorter analytical pieces.

    Summary of the report

    In a nutshell, the outlook for the global economy for 2020 has darkened, amid slowing activity and heightened downside risks.

    1) On poverty

    • The scope and speed with which the COVID-19 pandemic and economic shutdowns have devastated the poor around the world are unprecedented in modern times.
    • Current estimates show that 60 million people could be pushed into extreme poverty in 2020.

    2) Policy choices

    • Policy choices made today — include greater debt transparency to invite new investment, foster advances in digital connectivity, and a major expansion of cash safety nets for the poor.
    • The financing and building of productive infrastructure are among the hardest-to-solve development challenges in the post-pandemic recovery.

    3) Emerging Market and Developing Economies (EMDEs)

    • EMDEs face health crises, restrictions and external shocks like falling trade, tourism and commodity prices, as well as capital outflows.
    • These countries are expected to have a 3-8% output loss in the short term, based on studies of previous pandemics, as per the analysis.
    • Growth is likely to slow more in commodity-exporting EMDEs than in commodity-importing ones.

  • The Sixth Mass Extinction

    Click here for high resolution of the image: National Geographic

    The ongoing sixth mass extinction may be one of the most serious environmental threats to the persistence of civilization, according to new research published in an American journal.

    Try this question from CSP 2018:

    The term “sixth mass extinction/sixth extinction” is often mentioned in the news in the context of the discussion of

    (a) Widespread monoculture Practices agriculture and large-scale commercial farming with indiscriminate use of chemicals in many parts of the world that may result in the loss of good native ecosystems.

    (b) Fears of a possible collision of a meteorite with the Earth in the near future in the manner it happened 65million years ago that caused the mass extinction of many species including those of dinosaurs.

    (c) Large scale cultivation of genetically modified crops in many parts of the world and promoting their cultivationin other Parts of the world which may cause the disappearance of good native crop plants and the loss offood biodiversity.

    (d) Mankind’s over-exploitation/misuse of natural resources, fragmentation/loss, natural habitats, destructionof ecosystems, pollution and global climate change.

    Highlights of the research

    • The study analysed 29,400 species of terrestrial vertebrates and determined which of these are on the brink of extinction because they have fewer than 1,000 individuals.
    • The disappearance of their component populations has been occurring since the 1800s.
    • Most of these 515 species are from South America (30 per cent), followed by Oceania (21 per cent), Asia (21 per cent) and Africa (16 per cent) among others.

    The Anthropocene Extinction

    • Mass extinction refers to a substantial increase in the degree of extinction or when the Earth loses more than three-quarters of its species in a geologically short period of time.
    • So far, during the entire history of the Earth, there have been five mass extinctions.
    • The sixth, which is ongoing, is referred to as the Anthropocene extinction.
    • The five mass extinctions that took place in the last 450 million years have led to the destruction of 70-95 per cent of the species of plants, animals and microorganisms that existed earlier.
    • These extinctions were caused by “catastrophic alterations” to the environment, such as massive volcanic eruptions, depletion of oceanic oxygen or collision with an asteroid.
    • After each of these extinctions, it took millions of years to regain species comparable to those that existed before the event.

    So what is the sixth mass extinction then?

    • Researchers have described it as the “most serious environmental problem” since the loss of species will be permanent.
    • Even though only an estimated 2% of all of the species that ever lived are alive today, the absolute number of species is greater now than ever before.
    • The research claims that this extinction is human-caused and is more immediate than climate destruction.

    Major drivers of mass extinction

    • Significantly, the study calls for a complete ban on wildlife trade as many of the species currently endangered or on the brink of extinction are being decimated by legal and illegal wildlife trade.
    • The current COVID-19 pandemic, while not fully understood, is also linked to the wildlife trade.
    • There is no doubt that there will be more pandemics if man continues destroying habitats and trading wildlife for own consumption as food and traditional medicines.

    What happens when species go extinct?

    • When species go extinct, the impact can be tangible such as in the form of a loss in crop pollination and water purification.
    • Further, if a species has a specific function in an ecosystem, the loss can lead to consequences for other species by impacting the food chain.
    • The effects of extinction will worsen in the coming decades as the resulting genetic and cultural variability will change entire ecosystems.
    • If the number of individuals in a population or species drops, their contributions to ecosystem services become unimportant.
    • Their genetic variability and resilience is reduced, and its contribution to human welfare may be lost.” the study says.

  • Tribes in news: Changpa Tribe

    The Chinese Army’s intrusion in Chumur and Demchok has left Ladakh’s nomadic herding Changpa community cut off from large parts of summer pastures.

    Pashmina shawl is a landmark product of the Kashmir Valley. But make a note here. It carries only a BIS certification and not a Geographical Indicator.

    Also try this PYQ from CSP 2014:

    Q. With reference to ‘Changpa’ community of India, consider the following statement:

    1. They live mainly in the State of Uttarakhand.
    2. They rear the Pashmina goats that yield fine wool.
    3. They are kept in the category of Scheduled Tribes.
    Which of the statements given above is/are correct?

    a) 1 only
    b) 2 and 3 only
    c) 3 only
    d) 1, 2 and 3

    Changpa Tribes

    • The Changpa of Ladakh is high altitude pastoralists, raising mainly yaks and goats.
    • Among the Ladakh Changpa, those who are still nomadic are known as Phalpa, and they take their herds from in the Hanley Valley to the village of Lato.
    • Hanley is home to six isolated settlements, where the sedentary Changpa, the Fangpa reside.
    • Despite their different lifestyles, both these groups intermarry.
    • The Changpa speak Changskhat, a dialect of Tibetan, and practice Tibetan Buddhism.

    What is the issue?

    • The Chinese Army has taken over 16 kanals (two acres) of cultivable land in Chumur and advanced around 15 km inside Demchok, taking over traditional grazing pastures and cultivable lowlands.
    • In a cascading effect, this has resulted in a sharp rise in deaths of young Pashmina goats this year in the Korzok-Chumur belt of Changthang plateau in Ladakh.
    • This incursion has destabilized the annual seasonal migration of livestocks, including yaks and Pashmina goats.

    Back2Basics: Pashmina

    • The Changthangi or Ladakh Pashmina is a breed of Cashmere goat native to the high plateau of Ladakh.
    • The much-valued wool from the Ladakh herds is essential for the prized Pashmina shawls woven in Kashmir and famous for their intricate handwork.
    • They survive on the grass in Ladakh, where temperatures plunge to as low as −20 °C.
    • These goats provide the wool for Kashmir’s famous pashmina shawls. Shawls made from Pashmina wool are considered very fine and are exported worldwide.
    • Bureau of Indian Standards (BIS) has recently published an Indian Standard for identification, marking and labelling of Pashmina products to certify its purity.

  • What are Social Stock Exchanges?

    A working group constituted by the Securities and Exchange Board of India (SEBI) on Social Stock Exchanges (SSEs) has recommended allowing non-profit organisations to directly list on such platforms.

    Practice questions for mains:

    Q. What are Social Stock Exchanges? Discuss how it will help finance social enterprises in India.

    What are Social Stock Exchanges (SSEs)?

    • An SSE is a platform which allows investors to buy shares in social enterprises vetted by an official exchange.
    • The Union Budget 2019 proposed setting up of first of its kind SSE in India.
    • The SSE will function as a common platform where social enterprises can raise funds from the public.
    • It will function on the lines of major stock exchanges like BSE and NSE. However, the purpose of the Social Stock Exchange will be different – not profit, but social welfare.
    • Under the regulatory ambit of SEBI, a listing of social enterprises and voluntary organizations will be undertaken so that they can raise capital as equity, debt or as units like a mutual fund.

    Why SSEs?

    • India needs massive investments in the coming years to be able to meet the human development goals identified by global bodies like the UN.
    • This can’t be done through government expenditure alone. Private enterprises working in the social sector also need to step up their activities.
    • Currently, social enterprises are very active in India. However, they face challenges in raising funds.
    • One of the biggest hurdles they face is, apparently, the lack of trust from common investors.

    Benefits

    • There is a great opportunity to unlock funds from donors, philanthropic foundations and CSR spenders, in the form of zero-coupon zero principal bonds. These bonds will be listed on the SSE.
    • At first, the SSE could become a repository of social enterprises and impact investors.
    • The registration could be done through a standard process.
    • The SEs could be categorized into different stages such as- Idea, growth stage and likewise, investors can also be grouped based on the type of investment.

  • PM Swanidhi Scheme for street vendors

    The Ministry of Housing and Urban Affairs has launched a micro-credit facility for street vendors under the Swanidhi Scheme.

    Try this question from CSP 2016:

    Q.Rashtriya Garima Abhiyaan’ is a national campaign to

    (a) rehabilitate the homeless and destitute persons and provide then with suitable sources of livelihood

    (b) release the sex workers from the practice and provide them with alternative sources of livelihood

    (c) eradicate the practice of manual scavenging and rehabilitate the manual scavenger

    (d) release the bonded labourers free their bondage and rehabilitate them

    PM Swanidhi Scheme

    • The Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi Scheme is aimed at benefiting over 50 lakh vendors who had their businesses operational on or before March 24.
    • The scheme was announced by Finance Minister as a part of the economic package for those affected by the COVID-19 pandemic and lockdown.
    • The loans are meant to help kick-start activity for vendors who have been left without any income since the lockdown was implemented on March 25.
    • The scheme is valid until March 2022.

    Expected beneficiaries

    • This loan will be given to those who run shops on the roadside, handcart or streetcar.
    • Fruit-vegetable, laundry, saloon and paan shops are also included in this category.

    Facilities provided under the scheme

    • The vendors will be able to apply for a working capital loan of up to ₹10,000, which is repayable in monthly instalments within a year.
    • On timely/early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through direct benefit transfer on a six-monthly basis.
    • The loans would be without collateral. There will be no penalty on early repayment of the loan.

  • PM-CARES is not a public authority under RTI Act

    The PMO has refused to disclose details on the creation and operation of the PM-CARES Fund, telling a Right to Information applicant that the fund is “not a public authority” under the ambit of the RTI Act, 2005.

    Practice question for mains:

    Q. The PM-CARES fund is an old wine in a new bottle. Discuss its feasibility and how it is different in context to the PMNRF.

    About PM-CARES Fund

    • The fund will be a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’.
    • The PM is Chairman of this trust and members include the Defence Minister, Home Minister and Finance Minister.
    • Contributions to the fund will qualify as corporate social responsibility (CSR) spending that companies are mandated to make.
    • The Fund accepts micro-donations as well.

    Not a public authority

    • The PMO cited a Supreme Court observation that indiscriminate and impractical demands under RTI Act for disclosure of all and sundry information would be counterproductive.
    • PM-CARES Fund is not a Public Authority under the ambit of Section 2(h) of the RTI Act, 2005.
    • However, relevant information in respect of PM-CARES Fund may be seen on its website.

    Then, what makes an authority, Public?

    The relevant section of the RTI Act defines a “public authority” as “any authority or body or institution of self-government established or constituted —

    • by or under the Constitution;
    • by any other law made by Parliament;
    • by any other law made by State Legislature;
    • by the notification issued or order made by the appropriate Government — and includes any (i) body owned, controlled or substantially financed; (ii) NGO substantially financed, directly or indirectly by funds provided by the appropriate govt.

    Arguments against PM-CARES

    • The fund carries a public name, the composition of the trust, control, usage of an emblem, government domain name etc. that signifies it as a public authority.
    • PM is the ex-officio chairman of the Trust, while three cabinet ministers are ex-officio trustees.
    • The composition of the trust is enough to show that Government exercises substantive control over the trust, making it a public authority.

  • Kisan Credit Cards (KCC) for 1.5 crore dairy farmers

    The Union Govt. is set to provide Kisan Credit Card (KCC) to 1.5 crore dairy farmers belonging to Milk Unions and Milk producing Companies within the next two months under a special drive.

    We can expect multiple statements based prelim question here. Note the following features of the KCC from the newscard:

    1. Year of its introduction (in rarest case)

    2. Types of banks issuing KCC

    3. Credit types extended under KCC

    4. Sectors covered under KCC

    What is Kisan Credit Card (KCC)?

    • KCC is a credit scheme introduced in August 1998 by banks to extend credit facilities to farmers.
    • This model scheme was prepared by the NABARD on the recommendations of R.V. GUPTA committee to provide term loans for agricultural needs
    • Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks. The scheme has short term credit limits for crops and term loans.
    • KCC offering credit to the farmers is of two types: 1. Cash Credit 2. Term Credit (for allied activities such as pump sets, land development, plantation, drip irrigations).

    Facilities under KCC

    • Credit card and passbook or credit card cum passbook provided to eligible farmers facilitate revolving cash credit facility.
    • Any number of withdrawals and repayments within a limit, which is fixed on the basis of operational land holding, cropping pattern and scale of finance can be made.
    • Each withdrawal has to be repaid within a maximum period of 12 months and the Card is valid for 3 to 5 years subject to annual review.
    • Conversion/reschedulement of loans is permissible in case of damage to crops due to natural calamities.
    • Crop loans disbursed under KCC Scheme for notified crops are covered under Rashtriya Krishi Bima Yojana, to protect farmers against loss of crop yield caused by natural calamities, pest attacks etc.

    What’s’ in the bucket for Dairy Farmers?

    • Under the dairy cooperative movement, approximately 1.7 crore farmers are associated with 230 Milk Unions in the country.
    • In the first phase of this campaign, the target is to cover all farmers who are members of dairy cooperative societies and associated with different Milk Unions and who do not have KCC.
    • Although the general limit for KCC credit without collateral is Rs. 1.6 lakh, but for dairy farmers, it can be upto Rs.3 lakh.
    • This will ensure more credit availability for dairy farmers associated with Milk Unions as well as assuring repayment of loans to banks.

  • What is Antifa Movement?

    As massive protests following the death of a person in racial discrimination continued to rock the US, President Donald Trump has announced that the alleged far-left group Antifa would be designated as a terrorist organisation by his government.

    One can expect a similar prelims question:

    Q. The Antifa movement recently seen in news is an: Free trade movement/Anti-terror movement etc.

    Why the US seeks to ban Antifa?

    • Trump has blamed for the protests that have convulsed cities across the US,
    • Antifa is considered the loosely affiliated group of far-left anti-fascist activists.

    Antifa: The group

    • Antifa is an acronym for ‘Anti-Fascist’. It is not an organisation with a leader nor does it have a defined structure or membership roles.
    • Antifa has been around for several decades, though accounts vary on its exact beginnings.
    • The term dates the term as far back as Nazi Germany, describing the etymology of ‘Antifa’ as “borrowed from German Antifa, short for antifaschistische ‘anti-fascist’.
    • Rather, Antifa is more of a movement of activists whose followers share a philosophy and tactics.
    • They have made their presence known at protests, including the “Unite the Right” rally in Charlottesville, Virginia, in 2017.

    Its members

    • It is impossible to know how many people count themselves as members.
    • Its followers acknowledge that the movement is secretive, has no official leaders and is organised into autonomous local cells.
    • It is also only one in a constellation of activist movements that have come together in the past few years to oppose the far right.
    • Antifa members campaign against actions they view as authoritarian, homophobic, racist or xenophobic.

    Activism over years

    • Antifa members typically dress in black and often wear a mask at their demonstrations, and follow far-left ideologies such as anti-capitalism.
    • The movement has been known to have a presence in the US in the 1980s.
    • It shot into prominence following the election of President Trump in 2016, with violence marking some of its protests and demonstrations.
    • Criticizing mainstream liberal politicians for not doing enough, Antifa members have often physically confronted their conservative opponents on the streets.
    • The group also participates in non-violent protests. Apart from public counter-protests, Antifa members run websites that track white extremist and ultra-right groups.

    Criticisms

    • The movement has been widely criticised among the mainstream left and right.
    • Conservative publications and politicians routinely rail against supporters of Antifa, who they say are seeking to shut down peaceful expression of conservative views.

  • Using COVID crisis to reorient India towards reforms

    Following the announcement of relief and stimulus package, the debate began over its various aspects. This article assesses the various aspects of the package and draws comparison with the package announced by the other countries. So, how does India fare compared with other countries?

    Fiscal component of  stimulus package

    • According to the IMF-PT (policy tracker), the fiscal component of the Indian package is estimated to be at least 3.5 per cent of GDP as expenditure for poor households, migrant workers and agriculture.
    • There is an additional 0.5 per cent of GDP for states to spend unconditionally, bringing the fiscal package excluding loans to businesses to at least 4 per cent of GDP.
    • The support for businesses (MSMEs) is estimated to be 2.7 per cent of GDP.
    • Of this, at least 2 per cent of GDP is in the form of 100 per cent credit guarantees and equity infusion.

    Comparison with major emerging economies

    • Among major developing economies, only Brazil -8 per cent of GDP– and Peru -7 per cent of GDP– have a fiscal stimulus higher than the 5 per cent level for India.
    • The Brazil estimate includes about 3 per cent of GDP as working capital loans to businesses and households.
    • The fiscal support level for some important emerging economies is — China 2.5 per cent of GDP and Indonesia 3.5 per cent.

    Why it is difficult to segregate the stimulus package?

    • While comparing the fiscal stimulus packages across countries, it is important to understand that such packages are in the nature of additional spending and tax reliefs.
    • Which can work directly through aggregate demand or indirectly by mitigating risk and enhancing access to fund.
    • Access to fund is ensured in the nature of credit guarantees to financial institutions and non-financial enterprises
    • A large number of fiscal stimulus packages announced by different countries contain credit guarantees to financial institutions, SMEs, and agriculture.
    • Hence, it is difficult to segregate fiscal stimulus into its pure and impure components.
    • Most economists, and international organisations, recognise that fiscal stimulus consists of both the pure and impure.
    • And includes three broad items — a direct “above-the-line” component, a “below-the-line” component and guarantees of various forms primarily credit.
    • The choice of using only one component of the fiscal stimulus is selective and highly inappropriate.

    India as a positive fiscal stimulus outlier

    • To put the packages into perspective, the average of all fiscal measures in the G24 developing economies is equal to 3.6 per cent.
    • No matter how the calculation is done, India is a positive fiscal stimulus outlier; by IMF-PT calculations.
    • The stimulus is close to the largest among major emerging market economies.

    So, how much rich countries are spending?

    • The rich nations are spending more — they can afford to. Japan announced what may be the upper limit to the expansion — 21.1 per cent of GDP.
    • However, this does include large elements of loans and credit guarantees.
    • Through a combination of several fiscal measures (tax deferrals, credit guarantees, etc.) the US has pledged close to 13 per cent of GDP.
    • The European Union, on average, has pledged 4 per cent of GDP.
    • The average for advanced countries is around 6 per cent of GDP.

    Significance of monetary policy change made by RBI

    • The monetary policy change in India is quite significant.
    • The change paves the way for internationally competitive monetary policy.
    •  That is, real interest rates comparable to those prevalent in competitor economies.
    • The repo rate now stands at 4 per cent, with inflation well contained.
    • This is substantially a much different, and much-improved RBI response than that what occurred in 2008-09.
    • At that time, as a monetary counter to the financial crisis, the RBI reduced the repo rate by 425 basis points to 4.75 per cent.
    • This was done over seven months and the prevailing CPI inflation rate was 10 per cent.

    Economic reforms as a part of stimulus package

    • India has announced several economic reforms as a part of the stimulus package.
    • These are long-awaited — freeing up of the labour market, allowing farmers to sell their produce and land to who they choose, removal of archaic laws like the Essential Commodities Act, with the promise of more to come.
    • This is not an empty promise — the Centre will advance another 1.5 per cent of GDP to states to expand spending.
    • This advance will be conditional on them for undertaking long-pending reforms.
    • The Indian fiscal package is reformist, well-disciplined and provides focused support; and if needed, there is still room for additional measures.

    Conclusion

    The Indian fiscal package is reformist, well-disciplined and provides focused support; and if needed, there is still room for additional measures. We should use the crisis to re-orient India towards its long-awaited destiny.